The Cabinet Committee on Economic Affairs on Friday cleared award of four Coal Bed Methane (CBM) blocks to an Anil Dhirubhai Ambani Group-led consortium and three blocks to a consortium led by Australia's Arrow Energy.
Post-sale, the government stake would be 75 per cent, which will help NTPC to comply with the minimum public shareholding norms.
The department of investment and public asset management (Dipam) can also seek in-principle approval from the Cabinet Committee on Economic Affairs (CCEA) for strategic divestment of PSUs on a case-to-case basis considering investor appetite and sectoral trends.
The Indira Gandhi Matritva Sahyog Yojana was approved by the Cabinet Committee on Economic Affairs on a pilot basis in 52 select districts for the remaining period of the XIth five year plan.
Finance Minister announced the approval of the scholarship scheme for students of minority communities. The scheme will be effective during 11th Five Year Plan.
In a major decision to liberalise the broadcast sector, the government on Friday decided to raise FDI cap to 74 per cent in various services of the sector, except the TV news channels and FM radio where the cap of 26 per cent will apply.
Prime Minister Manmohan Singh has asked the Cabinet Committee on Economic Affairs to decide on a Planning Commission proposal to allocate a portion of power generated from Centrally-owned utilities for open access to large consumers.
The government holds 85.82 per cent stake in SAIL.
The new rules for foreign investment issued by the Cabinet committee on economic affairs have two specific problems. Both lie in the new provision that any company which has an Indian majority shareholding and Indian control will be treated as an Indian company.
The government on Thursday decided to substantially hike the post-matric scholarship amount and other benefits given to students from scheduled tribes and those disabled.
President-elect Donald Trump announced a slate of key Cabinet nominations, including tapping former Democratic presidential candidate Robert F. Kennedy Jr. as his Secretary of Health and Human Services and former Congressman Doug Collins of Georgia as Secretary for Veterans Affairs. Trump also named Jay Clayton as US Attorney for the Southern District of New York, Todd Blanche as Deputy Attorney General, and Dean John Sauer as Solicitor General of the United States.
The government on Friday said it has started implementing liberal FDI rules under which proposals up to Rs 1,200 crore (Rs 12 billion) foreign equity would be cleared by the Finance Minister without seeking approval of the Cabinet Committee on Economic Affairs.
India-born billionaire Lakshmi N Mittal's proposed Rs 3,365 crore investment in Hindustan Petroleum Corp Ltd's Bhatinda refinery in Punjab will have to wait for government approval as the Cabinet did not take up the issue on May 24.
A planned stake sale in Coal India in the last financial year had to be deferred after stiff opposition from the trade unions.
The government on Thursday further liberalised the foreing investment regime by allowing Foreign Investment Promotion Board to clear proposals from overseas entities worth up to Rs 1,200 crore (Rs 12 billion), against the existing limit of Rs 600 crore (Rs 6 billion).
Private companies coming up with mega projects may have to bring in minimum 51 per cent equity in order to avail the proposed 'viability gap funding' scheme for which government has earmarked Rs 1,500 crore (Rs 15 billion) this fiscal.
The relaxation will apply to those sectors that have composite caps (foreign direct investment or FDI plus FII). "The move will not impact sectors like banking and insurance which are governed by Acts of Parliament. However, sectors with composite caps which see administrative control like telecommunication services, broadcast services like direct-to-home and FM radio will benefit," a Delhi based FDI policy expert told Business Standard.
Another roadblock to be removed from FDI path; Load on insurance chest.
The Cabinet Committee on Economic Affairs did not take up the issue of hike in petroleum prices on Thursday, Commerce Minister Kamal Nath said.
Norway-based telecom company Telenor has raised its stake in its Indian joint venture with Unitech Wireless to 60.1 percent from 49 percent at an investment of Rs 1,493 crore.
As a result of the downturn in commodity prices across the world, and the easing of supply constraints on most commodities because of good domestic production, there is hardly any incentive for over-stocking by trade or bulk consumers of agri-commodities. Also, it is amply clear that the imposition of storage limits on farm goods has had little impact on their prices or the overall rate of inflation. Even the ban on futures trading has proved ineffectual.
The approval to bring in the FDI is subject to compliance with RBI and SEBI guidelines, besides subjected to approval of the relevant high courts for the demerger of distribution business of Volvo India. The finance ministry had already approved the FDI proposal of Volvo to invest $30 million (Rs 123 crore) for induction of foreign equity up to 8.1 per cent by way of acquisition of shares in EML.
In a bid to encourage the fertiliser industry to increase its production volumes, the government has extended the system of actual freight reimbursement to all types of fertilisers. Currently, only urea enjoys this concession.
The government's disinvestment programme made a muted re-start with the Cabinet Committee on Economic Affairs approving the part-sale of its stake in two power companies -- NTPC and Satluj Jal Vidyut Nigam -- but postponing a decision on the overall disinvestment policy.
The government's decision to divest its stake in power PSU NTPC would be delayed as the Cabinet Committee on Economic Affairs could not meet on Thursday due to pre-occupation of key ministers.
Call to hike the limit for investment approval from CCEA to Rs 1,500 crore.
To stay on the right side of the Trinamool Congress, the Centre has opened its coffers for West Bengal.
The Cabinet Committee on Economic Affairs last evening gave OVL, the overseas arm of the state-run explorer, approval to invest its share of $204 million in the oilfield. Over and above these, the two have committed a minimum exploration investment of $165 million and an additional optional exploration expenditure of $235 million.
With shrinking employment opportunities in the state sector, the government on Thursday approved a Rs 1,800 crore (Rs 18 billion) scheme for incentivising private sector to employ 1,00,000 disabled people a year.
The Cabinet Committee of Economic Affairs is all set to announce the guidelines for FDI in commodity exchanges. Following this, the Forward Markets Commission is expected to submit the proposal for ownership structure of exchanges before the Union ministry of consumer affairs.
The 15 proposals were cleared following recommendations by Foreign Investment Promotion Board.
With general elections on the horizon, the government's privatisation bandwagon has almost but stalled as a government wary of being accused of selling family silver opts for minority stake sales on stock exchanges over outright privatisation. The result -- the divestment target for current fiscal year is again likely to be missed. Big ticket privatisation plans such as that of Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India (SCI) and CONCOR are already on the backburner and analysts feel meaningful privatisation can happen only after April/May general elections.
Cabinet Committee on Economic Affairs had on July 22 cleared the sale of stake by RIL to BP in 21 blocks.
Giving relief to the employees of loss-making public sector units, the government on Wednesday decided to continue supporting distressed public sector units in meeting their wage bills and other statutory payments.
Although the Oil Ministry has the authority to decide on Reliance selling 30 per cent interest to BP in 23 exploration blocks, including the prize eastern offshore KG-D6 gas fields, the ministry on Tuesday decided to refer the deal to the CCEA, sources privy to the development said.
Following the two-tranche disinvestment, the government and the company would get Rs 8,000 crore (Rs 80 billion) each, Home Minister P Chidambaram told reporters after a meeting of the Cabinet Committee on Economic Affairs.
The government is planning an extensive exercise to map a "hazard line" along the country's 7,500 km coastline, from Gujarat to West Bengal. This marks the first time environmentally sensitive coastal areas will be clearly demarcated. The Rs 1,156-crore project, known as the Integrated Coastal Zone Management (ICZM) project, was approved by the Cabinet Committee on Economic Affairs (CCEA) on Thursday.
Government has approved follow-on public offer of Power Finance Corporation worth Rs. 5,732 crore.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances