The Cabinet cleared the recommendation of the group of ministers on payment of outstanding statutory dues and salaries of public sector employees. The PSUs will be required to clear the dues within one year.
Thirty-three loss making PSUs, unable to generate operating surplus and with no surplus assets, would be given a one-time budgetary support to clear their dues, Health Minister, Sushma Swaraj told newspersons after the Cabinet meeting.
Government sources said the Cabinet was expected ratify the GoM recommendation on an increase in natural gas prices. However, it was withdrawn from the agenda later in view of the forthcoming elections.
The PSU units would be required to approach their respective ministries with packages for revival, closure or divestment and give estimates of the resources they could generate to pay their dues totalling Rs 974 crore (Rs 9.74 billion), the minister added.
These companies have a total assets of Rs 122 crore (Rs 1.22 billion).
With regards to five profit making and six loss making PSUs, which are able to generate operating surplus, it was decided that they would clear their outstanding dues, totalling around Rs 539 crore (Rs 5.39 billion), within two months.
Fifteen units, unable to generate even operating surplus, but with surplus assets, would be required to sell their assets to raise money to pay dues amounting to Rs 372 crore (Rs 3.72 billion).
If there was possibility of delay in sale of assets, the administrative ministry would be allowed to raise resources from the market with a government guarantee and a 50 per cent interest subsidy, Swaraj said.
A draft agreement for avoidance of double taxation between India and Sudan was also approved in the meeting.
The Cabinet Committee on Economic Affairs, which also met on Wednesday, cleared among others, the proposals on the Ku band pilot project of the information and broadcasting ministry.
The Ku band will have the capacity to carry 20 Doordarshan channels and 10 private broadcast channels in the free to air mode.
The project will cost Rs 53.80 crore (Rs 538 million). A total of Rs 500 crore (Rs 5 billion) has been provided for Ku band during the tenth plan period. Distribution of signals is expected to start from early next years.
The CCEA also approved a National Vector Borne Disease Control Programme, which will cover mosquito brone diseases. Other than malaria, filaria and kala azar, the programme would also include dengue and Japanese encephalitis. The government aimed to eliminate filaria within 5 years, said Swaraj.
Modalities for utilisation of the Rs 250 crore (Rs 2.50 billion) fund being created for development, modernisation and rehabilitation of the tea plantation sector out of the revenue earnings of an additional excise duty of Rs 1 per kg from the tea industry during the Tenth plan period were also cleared.
The Basundhara (west) Opencast project of Mahanadi Coalfields and setting up of Teesta Low Dam Stage III in West Bengal were also approved.
