| The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved a package of concessions for Ratnagiri Gas and Power Private Ltd, previously Dabhol Power Company. |
| It also cleared time-bound appraisals of power and coal projects. The Cabinet, which also met today, cleared the National Rural Employment Guarantee Scheme, which will be introduced in Parliament on Tuesday. |
| The CCEA approved granting Ratnagiri Gas Power Private Ltd the mega-power status, contingent upon the company selling outside Maharashtra 5 per cent of power generated at the Dabhol plant. |
| Apart from this, tax concessions under Section 80 IA of the Income Tax Act, exemption from capital gains tax and a 5 per cent Customs duty waiver for LNG imports were cleared. The negotiated tariff of Rs 2.30 per unit of electricity for five years was also approved. |
| The appraisal and approval procedure time-frame for power and coal projects were shortened to 24 weeks and "in-principle" approval by the Planning Commission was done away with. But environment and forest clearance will be mandatory before CCEA approves projects. |
| If cost escalation due to these clearances is beyond 10 per cent of the overall cost, proposals will be referred back to the public investment board. |
| A special dispensation, envisaging appraisal of 45 hydro and 29 transmission projects by a committee chaired by the power secretary was also cleared. |
| Besides, the CCEA cleared additional investments of $100 million by ONGC Videsh Ltd (OVL) in the Thar Jath field of Block 5A in Sudan. OVL's exploration expenditure during 2005 will be $47 million after the investment. |
| Since this exceeded the delegated power of the OVL board of directors, it required the approval of the CCEA, said Information and Broadcasting Minister S Jaipal Reddy. |
| The CCEA also approved the statutory minimum price (SMP) of sugarcane at Rs 79.50 per quintal against last year's Rs 74.50. The SMP will be linked to a basic recovery of 9 per cent subject to a premium of 88 paise for every 0.1 percentage point increase in the recoveries for the sugar season of 2005-06. |
| The Cabinet approved the Central Silk Board (Amendment) Bill 2005, which amends the Central Silk Board Act of 1948. It also cleared a resolution, to be moved by the railways ministry in Parliament, for adoption of the recommendations of the second report of the Railway Convention Committee on the rate of dividend for 2005-06 and other ancillary matters. |
| A one-time increase of 5 per cent of time related continuity allowance for Grameen Dak Sevaks, with effect from April 2004, was also cleared. The Cabinet also approved a proposal to increase pension being paid to freedom fighters and their widows. |
| The day's decisions |
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