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Cabinet Approvals :- May 23, 2018

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On May 23,2018, The Union Cabinet gave the following approvals:

Union cabinet

Cabinet approves USOF scheme for provision of mobile services in Meghalaya under CTDP for North Eastern Region

On May 23,2018, The Union Cabinet chaired by chaired by Prime Minister Shri Narendra Modi has approved Implementation of a Comprehensive Telecom Development Plan (CTDP) for the North Eastern Region(NER) in Meghalaya.

A total estimated project cost of Rs. 3911 crore to be funded by the Universal Service Obligation Fund (USOF) and approval of the enhanced cost of CTDP Project for NER for an amount of Rs. 8120.81 crore (Rs. 5336.18 crore already approved by the Cabinet on 10.09.2014).

Salient Features of the approval:

  • Provision of2G+4G mobile coverage in identified uncovered areas of the State of Meghalaya.
  • Provision of 2G+4G seamless mobile coverage along the National Highways iMeghalaya.
  • Strengthening of telecom network will result in increase mobile connectivity in Meghalaya resulting in affordable and equitable access of communication, information and governance to people.
  • Providing access to public mobile network to  unreached people of Meghalaya will empower citizens with benefits of ICTs for furthering socio-economic developments.

Cabinet approves provision of mobile connectivity in Left Wing Extremism Areas

On May 23,2018, The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the “Universal Service Obligation Fund [USOF]” supported scheme.

i. This provide mobile services at 4072 tower locations identified by MHAin inhabited uncovered areas affected by Left Wing Extremism [LWE] of 96 districts in 10 States for Phase-ll project.

ii. The total project cost would be Rs.7,330 Crore.

The Distribution is as follows:

Name of State Districts covered No. of tower locations
Andhra Pradesh 8 429
Bihar 8 412
Chhattisgarh 16 1028
Jharkhand 21 1054
Madhya Pradesh 1 26
Maharashtra 2 136
Odisha 18 483
Telengana 14 118
Uttar Pradesh 3 179
West Bengal 5 207

Cabinet approves waiver of Penal Interest on Government Loans advanced to Visakhapatnam Port Trust

On May 23,2018, The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for waiving of Penal Interest on Government Loans to Visakhapatnam Port Trust (VPT).

Salient Features of the Waiver

  • Waiver of Penal Interest amounting to Rs. 250.89 crorein respect of VPT as on 31.03.2017 and further accruals thereon till date of approval of waiver.
  • VPT to pay penalty @0.25%of Penal Interest as on date of approval of waiver of Penal Interest;
  • VPT to pay the outstanding Principal of Rs. 44.69 croreand outstanding Interest as on the date of approval of waiver, in one single instalment in the Financial Year 2018-19.

Background of the Loan:

Visakhapatnam Port Trust (VPT) had availed Rs. 110.41 crore of loan at different points of time beginning from 1970-71 to 1984-85 to finance its Outer Harbour Project to accommodate deep draft vessels of 100,000 DWT for Iron Ore exports.

Cabinet approves waiver of Penal Interest on Government Loans advanced to Paradip Port Trust

On May 23,2018, The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for waiving of Penal Interest on Government Loans to Paradip Port Trust (PPT).

Salient Features of the waiver :

  • Waiver of penal interest amounting to Rs.1076.59 crore in respect of PPT as on 31.03.2017 and further accruals thereon till date of approval of waiver.
  • PPT to pay penalty @ 0.25% of Penal Interest as on the date of approval of waiver of penal Interest.
  • PPT to start the re-payment of outstanding principal of Rs. 387.74 crore and outstanding interest as on date of approval of the waiver and the re-payment to be completed in two instalments in 2018-19 and 2019-20.

Background of the loan:

Paradip Port Trust (PPT) had availed Rs.642.69 crore of loan under different heads at different points of time beginning from 1967 to 2002 to finance its various infrastructure projects.  It was to be repaid in 20 yearly installments with a five year moratorium period.

Cabinet approves restructuring of balance sheet of Scooters India Limited, Lucknow

On May 23,2018, The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for restructuring of balance sheet of Scooters India Limited, Lucknow (SIL) .

With this approval, the balance sheets of Scooters India Limited from 2012-13 onwards will be regularised and further restructuring will be done. This is also expected toease out the process of disinvestment of the company.

Salient Features of the approval:

  • Reduction of equity of Rs. 85.21 crorein the share capital of SIL held by Government of India against accumulated losses. The reduction would be deemed to have taken effect as on 31.03.2013.
  • Freezing the interest on the Non-Plan loan of Rs. 1.89 crorereleased to SIL during 2012-13 from the date of its release to the company and conversion into equity of the outstanding principal amount of Rs. 1.89 crore.