 "Cabinet nod to cut govt stake in PSBs to 52%")
This would enable these banks to partly meet Basel III requirements by March 31, 2019. The Cabinet Committee on Economic Affairs approved putting in place a new ethanol blending policy under which the price of ethanol would be fixed according to the distance of sugar factory from the depots of oil marketing companies. Under the ethanol blending programme, 5 per cent ethanol is doped with petrol.
The much-awaited amendments to the Electricity Act were cleared, opening the gates for reforms in power transmission and distribution.
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The amendments are likely to come up in the ongoing session of Parliament. If the PSBs are permitted to bring down government holding to 52 per cent in a phased manner, they can raise up to Rs 1,60,825 crore from the market, said an official statement, issued after the Cabinet meeting.
This means that the government would require to give almost Rs 79,000 crore (for common tier-I equity) during 2015-19, which will maintain its holding at 52 per cent.
However, as the government is likely to receive an amount of Rs 34,500 crore from PSBs as dividend, the net outgo will only be Rs 44,395 crore.
On ethanol blending, CCEA approved a proposal to fix the delivered price of Ethanol would be fixed in the range of Rs 48.50 per litre to Rs 49.50 per litre, depending upon the distance of sugar mill from the depot/installation of the OMCs.
Till 100 km distance ethanol would be priced at Rs 48.50. Between 101 and 300 km, it would be Rs 49 and for over 300 km, Rs 49.50.
The rates proposed would be delivered price at depot location and inclusive of all central and state taxes, transportation costs, etc which would be borne by the ethanol suppliers.
Debt recovery tribunals: Debt recovery tribunals to be set up in Chandigarh, Bengaluru, Ernakulam, Dehradun, Siliguri and Hyderabad to expedite cases pertaining to bad loans
Lokpal and Lokayuktas Act: Cabinet approves amending the Lokpal and Lokayuktas Act, 2013; the Act will be amended to state 'Leader of Opposition' will also mean 'Leader of the Largest Party in Opposition of the Government' in the Lok Sabha
Solar plants in defence sector: Geen signal given to install solar power plants in defence and paramilitary establishments
Solar parks: 25 solar parks of 500 Mw capacity each to be set up; financial support of Rs 4,050 crore needed; Cabinet Committee on Economic Affairs also approves scheme for setting up 1,000-Mw grid connected solar power projects by PSUs and central government organisations