Cabinet nod for panel on sick PSUs

Decision on oil prices in 48 hours.

The government today approved the constitution of a Board for Reconstruction of Public Sector Enterprises (BRPSE) to suggest ways to revive sick companies.

It, however, deferred a decision on raising the prices of petrol, diesel, cooking gas and kerosene after Petroleum Minister Mani Shankar Aiyar made a detailed presentation to the Cabinet Committee on Economic Affairs (CCEA).

Finance Minister P Chidambaram told reporters after the meeting that the CCEA would meet in the next 24-48 hours to decide on the matter.

A final decision on the matter could not be taken due to the absence of Agriculture Minister Sharad Pawar, Defence Minister Pranab Mukherjee and Railway Minister Lalu Prasad.

Petrol and diesel prices have not been raised for over three months now, while LPG prices were last raised on June 15.

Chidambaram said the BRPSE would be a seven-member body with a non-official member as the chairman. Besides, the board would have three non-official members and three secretaries of the government, he said.

The board's recommendation would be advisory, he said, adding the board would advise the government on the proposals referred to it and the ones that it took up suo motu.

The CCEA also cleared a National Mission on Bamboo Applications to help the bamboo industry achieve Rs 800 crore value addition annually. The government would provide a budgetary support of Rs 100 crore during the Tenth Plan while another Rs 64 crore was expected from participating agencies and partners.

The Cabinet ratified a mutual legal assistance treaty in criminal matters with the United States. The treaty has certain conditions to avoid unilateral use.

According to the treaty, assistance provided by India shall not be transferred to or otherwise used to assist any international court or tribunal, unless New Delhi accepted their jurisdiction.

Assistance would be denied if according to information available with India, any official of the requesting state having access to the information is engaged in felony, including the facilitation of the production or distribution of illegal drugs.

As per the third condition, no action under the treaty could be taken in contravention of the Indian Constitution, an official spokesperson said. Conditions would be applied on reciprocal basis, avoiding unilateral use.

The Cabinet also approved an agreement to establish a Joint Commission of Cooperation between India and Norway.

The agreement, signed on July 6 this year between External Affairs Minister K Natwar Singh and Norway's Foreign Minister Jan Peterson during the Norwegian leader's visit to India, would continue to be in force unless either country terminated it by giving six months notice.

The spokesperson said accord would lead to closer cooperation between India and Norway in political, economic, commercial, energy, environmental, scientific, technological, educational and cultural fields.