On March 22, 2022, the Union Cabinet chaired by Prime Minister (PM) Narendra Modi approved the following proposals:
- Extension of New Investment Policy-2012 for three units of HURL
- Increase in the MSP of raw jute by Rs 250 to Rs 4,750 per quintal for the 2022-23 season
- Bill to merge three Delhi municipal corporations into unified Municipal Corporation of Delhi
CCEA approves extension of New Investment Policy-2012 for three units of HURL
The Cabinet Committee on Economic Affairs (CCEA) chaired by PM Narendra Modi approved the extension of applicability of the New Investment Policy (NIP)-2012 for three upcoming units of Hindustan Urvarak & Rasayan Limited (HURL) at Gorakhpur, Sindri and Barauni. This approval has been made on the proposal of the Department of Fertilizers for the same.
About NIP-2012:
The government had announced NIP-2012 in January, 2013 and its amendment in October, 2014 to make India self-sufficient in the urea sector by facilitating fresh investments. The policy lays down guidelines to fix gas prices and also other roadmaps to attract investments in this sector.
About HURL:
Initiated in 2016, it is a Joint Venture (JV) by Coal India Limited (CIL), NTPC Limited (NTPC) and Indian Oil Corporation Limited(IOCL). It is reviving the erstwhile Gorakhpur and Sindri Units of FCIL (Fertilizer Corporation Of India Ltd.) and Barauni Unit of GFCL by setting up new gas based Urea Plants with the installed capacity of 12.7 Lakh Metric Ton Per Annum each (ILMTPA).
- The cost of these three HURL urea projects is Rs 25,120 crore, while GAIL (Gas Authority of India Limited) will supply natural gas to these three units.
- The commissioning of these units will add 38.1 LMTPA indigenous urea production in India and will meet the demand for urea in 7 states viz. Uttar Pradesh, Bihar, Jharkhand, Chhattisgarh, Madhya Pradesh, West Bengal and Odisha.
It should be noted that HURL-Gorakhpur unit has India’s first Air Operated Bulled Proof Rubber Dam of 65 mtrs length and 2 mtrs height.
CCEA approves MSP of Raw Jute for 2022-23
The CCEA also approved an increase in the Minimum Support Price (MSP) of raw jute by Rs 250 to Rs 4,750 per quintal for the 2022-23 season to ensure a return of 60.53% over all India weighted average cost of production.
Key Points:
i.The approval is based on recommendations of the Commission for Agricultural Costs and Prices, and also on the lines of fixing the MSP at a level of at least 1.5 times all India weighted average cost of production as announced by the Government in the Budget 2018-19. This assures a minimum of 50% as margin of profit.
ii.Jute Corporation of India (JCI) will continue as central government nodal agency to undertake price support operations. The losses in such operations will be fully reimbursed by the Central Government.
Union Cabinet gives nod to bill to merge three Delhi municipal corporations
The Union Cabinet gave its nod to the Bill for ‘Delhi Municipal Corporation Amendment Act 2022’ which seeks the merger of three municipal corporations in Delhi into a single unified Municipal Corporation of Delhi (MCD).
- The Bill for the same will be introduced in the ongoing Budget Session of Parliament.
- Some more amendments have also been cleared in the principal Act of 1957 to ensure a more robust delivery architecture for greater transparency, improved governance and efficient delivery of civic services for the people of Delhi.
Point to be noted:
In 2011, the erstwhile Municipal Corporation of Delhi (MCD) was trifurcated into three municipal corporations – South Delhi Municipal Corporation (SDMC), North Delhi Municipal Corporation (NDMC), and East Delhi Municipal Corporation (EDMC) through the Delhi Municipal Corporation Amendment Act, 1911.
Benefit behind Unification of Municipal Corporations of Delhi:
It will be a well-equipped entity for optimum utilization of financial resources. It will reduce mounting liabilities, expenditure on the functioning of the three municipal corporations and improve the civic services in Delhi.
Recent Related News:
i.In January 2022, CCEA approved the scheme on Green Energy Corridor (GEC) Phase-II for Intra-State Transmission System (InSTS). This approval will add approximately 10,750 circuit kilometres (ckm) of transmission lines and approx. 27,500 MegaVolt-Amperes (MVA) transformation capacity of substations.
ii.The Cabinet has extended the tenure of the National Commission for Safai Karamcharis (NSCK) by three years up to March 31, 2025 w.e.f. April 1, 2022.
About Jute Corporation of India (JCI):
Parent Ministry– Ministry of Textiles
Managing Director– Cmde. Ajay Kumar Jolly
Headquarters– Kolkata, West Bengal
