Cabinet clears IA's 43 aircraft purchase plan

SCI's Rs 1,136-cr plan to buy 2 crude carriers also gets nod.

The Cabinet Committee on Economic Affairs (CCEA) today cleared Indian Airlines' plans to acquire 43 aircraft from Airbus Industries. It also approved the Shipping Corporation of India's proposal to purchase two very large crude carriers for Rs 1,136 crore.

The nod to the aircraft purchase deal removed the final hurdle in the way of Indian Airlines to enter into an agreement with the European aircraft maker. The fleet acquisition will cost Rs 9,890 crore. After hectic negotiations between the government and Airbus Industrie, the amount of the deal was reduced by 3.4 per cent.

Regarding the vessel acquisition, the committee allowed the SCI to raise 80 per cent of the contract price of each vessel through external financing.

While the loan can be sourced from domestic or international market, the remaining 20 per cent will have to come from SCI's internal resources. The acquisition will be completed in the next three-four years.

In matters of oil and gas exploration, the committee approved the awarding of two blocks under the fifth round of the New Exploration Licensing Policy.

A block in Assam, AA-ONN-2003/1 is proposed to be awarded to a consortium of Jubilant Oil and Gas Pvt Ltd, Jubilant Securities Pvt Ltd, Gujarat State Petroleum Corporation Ltd, and GAIL India Ltd. Another block in Arunachal Pradesh "" AA-ONN-2003/2 "" is proposed to go to a consortium led by National Thermal Power Corporation Ltd.

The Cabinet also approved enhancing the monthly wage limit to qualify for the Textile Rehabilitation Fund Scheme to Rs 3,500 from Rs 2,500 with effect from April 1993.

The new minimum support prices (MSP) for the rabi crops for 2005-06 was also okayed.

Regarding pension norms, the panel approved the changes in the Central Civil Service Pension Rules to give officers an option between receiving pension from the government on a pro-rata basis, or from the company they are absorbed in.

Accession to protocol of the amended Kyoto Convention adopted by World Customs Organisation and the protocol on Privileges and Immunities of the International Seabed Authority, 1998, too, got the Cabinet nod.

The Cabinet gave its nod to some of the other issues like the revised cost of the 1,020 MW Tala hydroelectric project in Bhutan at Rs 4,124 crore, and exchange of prisoners between India and Canada and India and Mauritius, the Armed Forces Tribunal Bill, 2005, and the extenstion of the Short Service Commission Scheme to Indian Airforce.