Cabinet Approvals on 8th November 2018

On 8th November 2018, the Union Cabinet chaired by Prime Minister Narendra Modi approved the following:

Cabinet Approvals on 8th November 2018Cabinet approves leasing out 6 airports – Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru through PPP:
On 8th November 2018, the Union Cabinet chaired by Prime Minister Narendra Modi approved the following:

  • In-principle approval for leasing out 6 airports of AAI (Airports Authority of India): Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru for operation, management and development under Public Private Partnership (PPP) through Public Private Partnership Appraisal Committee (PPPAC).
  • Constitution of an Empowered Group of Secretaries headed by CEO, NITI Aayog with Secretary, Ministry of Civil Aviation, Secretary, Department of Economic Affairs and Secretary, Department of Expenditure to decide on any issue falling beyond the scope of PPPAC.

Advantages:

  • Efficiency in service delivery, expertise, enterprise and professionalism and utilizing investments in the public sector.
  • World class infrastructure at airports, delivery of efficient and timely services to the airport passengers, enhancing revenue to AAI without making any investment, etc. for development of Greenfield Airports at Hyderabad and Bengaluru
  • PPP airports in India have been ranked among the top 5 in their respective categories by the Airports Council International (ACI) in terms of Airport Service Quality (ASQ)
  • Focusing on developing airports and Air Navigation infrastructure in other parts of India

Cabinet apprised of India joining as Member of Advanced Motor Fuels Technology Collaboration Programme under International Energy Agency:
On 8th November 2018, Union Cabinet chaired by the Prime Minister Narendra Modi was apprised of India joining as Member of Advanced Motor Fuels Technology Collaboration Programme (AMF TCP) under International Energy Agency (IEA) on 9th May 2018.

  • AMF TCP works under the framework of International Energy Agency (IEA). India has “Association” status with IEA since 30 March 2017.
  • The primary goal of joining AMF TCP by Ministry of Petroleum & Natural Gas (MoP&NG) is to enable market introduction of Advanced motor fuels/ Alternate fuels.
  • This is aimed to reduce emissions and attain higher fuel efficiency in transport sector.
  • AMF TCP offers opportunity for fuel analysis, identifying new/ alternate fuels for deployment in transport sector and allied R&D activities for reduction in emissions in fuel intensive sectors.
  • Benefits of joining AMF TCP are shared costs and pooled technical resources.  After becoming member, India will initiate R&D in other areas of its interest in advanced biofuels and other motor fuels to substitute fossil fuel imports.

Cabinet approves Laying down procedure and mechanism for sale of enemy shares:
On 8th November 2018, Union Cabinet chaired by Prime Minister Narendra Modi approved the mechanism and procedure forsale of the enemy shares.

  • In principle approval has been given for sale of enemy shares under the Custody of Ministry of Home Affairs/ Custodian of Enemy Property of India (CEPI), as per sub-section 1 of section 8A of the Enemy Property Act, 1968.
  • Department of Investment and Public Asset Management has been authorized under the provisions of sub-section 7 of section 8A of the Enemy Property Act, 1968, to sell the same.
  • Sale proceeds are to be deposited as disinvestment proceeds in the Government Account maintained by Ministry of Finance.
  • A total number of 6,50,75,877 shares in 996 companies of 20,323 shareholders are under the custody of CEPI. The process for selling these shares should be approved by the Alternative Mechanism (AM) under the Chairmanship of Finance Minister and comprising Minister of Road Transport and Highway and Home Minister.
  • Before initiation of sale of any Enemy Shares, the CEPI should certify that the sale of the Enemy Shares is not in contravention of any judgment, decree or order of any court, tribunal or other authority or any law.
  • The advisors/ intermediaries like Merchant Bankers, Legal Adviser, Selling Brokers etc. will be appointed by DIPAM (Department of Investment and Public Asset Management) through an open tender/limited tender process. An Inter-Ministerial Group (IMG) will guide the process of sale.

Cabinet approves filling of Padur Strategic Petroleum Reserves at Padur, Karnataka by overseas National Oil Companies:
On 8th November 2018, Union Cabinet chaired by Prime Minister Narendra Modi approved the filling of Padur Strategic Petroleum Reserves (SPR) at Padur, Karnataka by overseas National Oil Companies (NOCs).

  • SPR facility at Padur is an underground rock cavern with total capacity of 2.5 million metric tonnes (MMT). It has 4 compartments of 0.625 MMT each.
  • Filling of SPR under PPP model is undertaken to reduce budgetary support of Government of India.
  • In June 2018, government had given in principle approval for establishing additional 6.5 MMT SPR facilities at Chandikhol in Odisha and Padur in Karnataka.
  • This would enhance India’s energy security by 11.5 days as per the consumption data for FY 2017-18.

Cabinet approves Amendment to the Central Universities Act, 2009 for setting up of Central Tribal University in Andhra Pradesh:
On 8th November 2018, Union Cabinet chaired by Prime Minister Narendra Modi approved setting up of a Central Tribal University in Andhra Pradesh.

  • Central Tribal University of Andhra Pradesh will be set up in Relli village of Vizianagaram District as mentioned in the 13th Schedule to the Andhra Pradesh Reorganisation Act, 2014 (No. 6 of 2014).
  • Cabinet has also approved provision of Rs. 420 crore for first phase expenditure in setting up the Central Tribal University.

Cabinet approves strategic disinvestment of 100% Govt. of India’s equity in the Dredging Corporation of India Ltd. (DCIL):
On 8th November 2018, the Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi gave in principle approval for strategic disinvestment of 100% Government of India’s shares in Dredging Corporation of India Ltd. (DCIL) to consortium of 4 ports: Vishakhapatnam Port Trust, Paradeep Port Trust, Jawahar Lal Nehru Port Trust and Kandla Port Trust.

  • At present, the Government holds 73.44% shares in DCIL. The approval will enable linkage of dredging activities with the ports, as DCIL is involved in expansion of dredging activity in India, and there is potential scope for diversification of ports into third party dredging.
  • The co-sharing of facilities between DCIL and ports will enable savings for ports.  This would lead to larger investment in DCIL since integration with ports will help ineffective vertical linkage in value chain.
  • Strategic disinvestment of DCIL will be undertaken after performing diligence exercise by both the entities with the help of Advisors, appointed for the transaction.

About Dredging Corporation of India Ltd. (DCIL):
♦ Chairman & Managing Director – Rajesh Tripathi
♦ Headquarters – Visakhapatnam

Cabinet approves Procurement Quota to M/s ITI Ltd. in procurements made by BSNL, MTNL and BBNL:
On 8th November 2018, Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi approved Procurement Quota to M/s ITI Ltd. in procurements made by BSNL, MTNL and BBNL.
i. CCEA approved the following proposal of Department of Telecommunications regarding continuation of Procurement Quota for M/s ITI Limited:
To continue the Reservation Quota policy for M/s ITI Ltd. by reserving:

  • 30% of procurement orders placed by BSNL, MTNL and BBNL for M/s ITI Ltd. for the products manufactured by it and for those outsourced items in which there is a minimum 12% value addition by M/s ITI during 2018-19 and 16% value addition in 2019-20 and 20% value addition in 2020-21
  • 20% of the orders for the turnkey projects (like GSM network roll-out, Wi-Fi etc. of BSNL & MTNL and BharatNet project network roll-out, etc. of BBNL).
  • ITI would accept orders under reservation quota only after the price is known and if the same is commercially viable.
  • ITI shall exercise its option under Reservation Quota within 15 days of bid opening.

ii. The above mentioned policy measures will remain in act for 3 years with effect from the date of approval of CCEA. The policy will be reviewed considering the financial health of ITI after expiry of this period.
About BSNL (Bharat Sanchar Nigam Limited):
♦ CMD – Shri Anupam Shrivastava
♦ Headquarters – New Delhi

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