The Cabinet Committee on Economic Affairs today approved Neyvilli Lignite Corporation's Rs 1,100 crore (Rs 11 billion) thermal power project and the related Rs 250 crore (Rs 2.5 billion) mine project.
Both the projects will be based in Barsinagar in Rajasthan. The proposed lignite mine, with the capacity of 2.1 million tonnes per annum, will meet the requirements of the 2x250 megawatt thermal power project. The power plant will cater to the demands of Rajasthan and the northern region.
The Cabinet, which met today, also okayed the proposal for the merger of Konark Met Coke with Neelachal Ispat Nigam. The merger will enable the two joint venture projects promoted by MMTC, a public sector undertaking under the department of commerce, to reap the benefits of the corporate debt restructuring package approved by financial institutions.
The restructuring package will convert the combined debt of NINL and KMCL at Rs 61 crore (Rs 610 million) into equity capital, hence reducing the debt liability. The merged entity will save Rs 91 crore (Rs 910 million) annually by replacing high interest loans with low interest borrowings. Liquidated damages and penal interest will also be waived.
The entity will also be able to utilise around Rs 35 crore (Rs 350 million) lying in KMCL's cenvat account.
The Cabinet also approved the International Convention on Mutual Administrative Assistance in Custom to get quick and cost-effective information for detection and investigation of violations.
The Cabinet also cleared the establishment of an e-committee for monitoring the use of information technology and administrative reforms in the judiciary for a year.
The total expenditure on establishment and functioning of the committee will be Rs 1.35 crore (Rs 13.5 million). While the chairman will be a chief justice or a high court judge, the members and rest of the staff will be appointed by the Supreme Court.
