Cabinet approvals on June 6 2018

Cabinet approvals:

Cabinet approves Continuation Programme for Geosynchronous Satellite Launch Vehicle Mark-III

On June 6, 2018, the Union Cabinet chaired by the Prime Minister NarendraModi approved continuation Programme for Geosynchronous Satellite Launch Vehicle Mark –III.

Key points:

• Total estimated cost for the project is : Rs. 4338.20 crore.
• Thisincludes the cost of ten GSLV Mk-III vehicles, essential facility augmentation, Programme Management and Launch Campaign.
• will make the country self-reliant in the launching capability of 4 tonne class of communication satellites and sustain & strengthen the space infrastructure and reduce the dependence on procured launches from foreign countries.
• Phase-1 will work for rural broadband connectivity, increase and sustain the availability of transponders for DTH, VSAT and Television broadcasters.
• The GSLV Mark –III will launch during 2019-2024.

About GSLV Mark –III :

It has completed one experimental flight (LVM3-X) in 2014 and one developmental flight (GSLV MkIII-D1) in 2017. The second developmental flight will be completed by Q2 of 2018-19 this year. The Continuation Programme – Phase 1 will enable independent access to space for 4 tonne class of communication satellites, and establish GSLV Mk-III as a cost-effective workhorse vehicle to launch 4 tonne class of communication satellites in order to meet the national requirements and to boost its commercial potential in the international market for launch services.

Cabinet approves Revision in the wage structure and allowances of GraminDakSevaks (GDS) of the Department of Posts

On June 6, 2018, The Union Cabinet chaired by Prime Minister ShriNarendraModi has approved the revision in the wage structure and allowances of GraminDakSevaks (GDS) of the Department of Posts.

Key points:

• This would cost an estimated amount of Rs. 1257.75croreconsistin of Non-recurring expenditure – Rs 860.95 crore and Recurring expenditure of Rs.396.80 crore during 2018-19.
• 3.07 lakh GraminDakSevaks will be benefitted by this.
• Minimum Time Related Continuity Allowance (TRCA)s as per the two categories of Branch Post Masters (BPM) and Assistant Branch Post Masters (ABPM)

• Dearness Allowance will continue to be paid as a separate component.
• It is decided to continue the calculation of the ex-gratia bonus by applying the calculation ceiling of Rs.7000 as basic TRCA + DA till such time a new scheme is devised.
• Annual increase at the rate of 3% and the same may be given on 1st January or 1st July of every year as the case may be based on the one time written request of GDSs.
• New Risk and hardship Allowance has been introduced. Other allowances Viz. Office maintenance allowance, Combined duty allowance, Cash conveyance charges, Cycle maintenance allowance, Boat allowance and Fixed Stationery Charges .

Cabinet approves Revised guidelines on time bound closure of sick/ loss making Central Public Sector Enterprises and disposal of movable and immovable assets

On June 6, 2018, The Union Cabinet chaired by Prime Minister ShriNarendraModi approved the revised guidelines of the Department of Public Enterprises (DPE) on time bound closure of sick/ loss making Central Public Sector Enterprises (CPSEs) and disposal of movable and immovable assets.

Key points:

• It would reduce delays in implementation of closure plans of sick/loss making CPSEs.
• The guidelines give first priority for utilization of land of CPSEs under closure for Affordable Housing as per the relevant guidelines of Ministry of Housing and Urban Affairs (MoHUA).
• This would provide land parcels for Government’s programme of Affordable Housing.
• To reduce hardships of workers  a uniform policy to give VRS at 2007 notional pay scale irrespective of the pay scale in which they are working is to be done.
• Guideline shall apply to CPSEs where approval for closure has been obtained by administrative Ministry/ Department from the CCEA/ Cabinet or the process for obtaining the approval of the competent authority is underway after the administrative Ministry/ Department has decided for the closure of the CPSE.

Cabinet approves Continuation of Off-grid and Decentralised Solar PV Applications Programme – Phase III

On June 6,2018, The Cabinet Committee on Economic Affairs, chaired by the Prime Minister ShriNarendraModi has given its approval for implementation of Phase-Ill of Off-grid and Decentralised Solar PV (Photo Voltaic) Application Programme to achieve additional 118 MWp(Mega Watt peak) off-grid solar PV capacity by 2020.

Key points :

The phase III consists of :

• Solar Street lights :3,00,000 street lights would be installed in North Eastern States and Left Wing Extremism affected districts .
• Stand-Alone Solar Power Plants:  Solar power plants upto25 KWH in areas where grid power has not reached. providing electricity to schools, hostels, panchayats, police stations and other public service institutions. The aggregated capacity of solar power plants would be 100 MWp.
• Solar Study Lamps: 25,00,000 numbers of solar study lamps will be provided in North Eastern States and LWE affected districts.
• The total project of the three components included under the phase-Ill is Rs. 1895 crore of which Rs. 637 crore will be given by the Centre .

Benefits:
i. For solar street lights and solar power plants, financial support up to 30% of the benchmark cost of the system will be provided
ii. For NE States, Hill States and Island UTs where up to 90% of the benchmark cost will be provided.
iii. For Study Lamps, 15% of the lamp cost to be borne by the student and balance will be provided as financial support to school going children in backward and remote areas.
iv. Dependance on Solar power would increase self-employment, the implementation of Phase-Ill is likely to generate employment opportunity equivalent to 8.67 lakh man-days for skilled and unskilled workers.

Cabinet approves construction of a new 6 – Lane bridge with its approaches across River Ganga at Phaphamau, Allahabad in Uttar Pradesh

On June 6, 2018, The Cabinet Committee on Economic Affairs, chaired by the Prime Minister ShriNarendraModi, approved the project for construction of 9.9 km long new 6 – lane bridge across river Ganga on NH – 96 at Phaphamau in Allahabad .

Key points:

• This would cost a total of Rs.1948.25 crore.
• The construction would take 3 years to be completed by December 2021.
• It would resolve the traffic congestion on existing old 2 – lane Phaphamau bridge on NH-96 at Allahabad.
• It will also facilitate to the large congregation of people at Holy City Allahabad during Kumbh, Ardh-Kumbh and other yearly ritual baths at SANGAM in Prayag hence increasing tourism.
• This new 6 – lane bridge will also be beneficial for the Lucknow / Faizabad bound traffic coming from Madhya Pradesh via National Highway – 27 and National Highway – 76 through Naini Bridge.
• Phaphamau bridge would be therefore 29th Bridge on river Ganges between Allahabad and Farakka.

Cabinet approves measures to deal with the current crisis in the sugar sector worth Rs 7000 crore

On June 6, 2018, The Prime Minister approved interventions to deal with the crisis in the sugar sector. The following measures have been approved with a total cost of Rs. 7000 crore.

Key points:

• Creation of buffer stock of 30 LMT of sugar for one year  incurring expenditure of Rs.1175 crore and reviewed by Department of Food and Public Distribution (DFPD) any time. The reimbursement on a quarterly basis to be done directly to the farmer’s account on behalf of sugar mills.
• Fixation of minimum selling price of white sugar based on Fair Remunerative Price (FRP) of cane and minimum conversion cost of white/refined sugar as per Sugar Price (Control) Order, 2018 under Essential Commodities Act, 1955. The minimum selling price of white/refined sugar shall be initially fixed at Rs.29/kg reviewed by DFPD .
• Installation of incineration boilers and setting up new distilleries in sugar mills; government will bear interest subvention of maximum Rs.1332 crore for five years including moratorium period of one year on estimated bank loan amounting to Rs.4440 crore given by the banks over a period of three years . This would help diversion of sugar during surplus phase to reduce excess inventories.

About the Sugar Crisis :

Excess production during the current Sugar Season and indication of higher production in the ensuing Sugar Season has depressed the market price of sugar. Due to which crash in sugar prices happened and the liquidity position of the sugar mills has been adversely affected leading to accumulation of cane price dues amounting to more than Rs.22000 crore.