CCEA clears UK firm's move to hike stake in UB

The Cabinet Committee on Economic Affairs (CCEA) today approved Scottish & Newcastle Plc UKs proposal to increase its holding in United Breweries from 26 per cent to 37.5 per cent for a consideration of up to Rs 780 crore.

The Cabinet, which also met this evening, increased the enforcement directorate's powers to investigate and initiate measures to attach property and proceeds of crime relating to scheduled offences under the Prevention of Money Laundering Act (PMLA) 2002.

It also cleared the establishment of an adjudicating authority and an Appellate Tribunal under the Act. The measures will be enforced through amendments to the PMLA, for which a Bill is to be introduced in the Budget session of Parliament.

The Cabinet approved the signing of five annexes of the preferential trade agreement with Mercosur (Brazil, Uruguay, Paraguay, Argentina, Chile and Bolivia). The agreement is to be signed on Saturday.

An agreement on Mutual Administrative Assistance in Customs matters in Saarc countries was also cleared to help obtain quick and cost-effective information on a multilateral basis.

The CCEA also cleared the scheme for upgrading 100 industrial training institutes (ITI) into centres of excellence at an estimated cost of Rs 160 crore to be shared between the Centre and states. The Centre will foot 75 per cent of the bill for the project which is to be completed by March 2009. The scheme had been announced in the last Budget, in July 2004.

The centrally sponsored scheme for north-eastern states, Sikkim and Jammu & Kashmir, was also extended to the end of 2006-07 at a cost of Rs 137 crore.

The entire cost of the scheme during the Tenth Plan is to be borne by the Centre and the states concerned will bear the operational cost during the Eleventh Plan period.

It also approved the Benefits & Completion Schedule of the scheme in the north-eastern states and Sikkim, and aimed at developing infrastructure for the training of youth in identified skill areas.

The CCEA also cleared the proposal to complete 31 irrigation projects of pre-Fifth and Fifth Plan period by including them under the accelerated irrigation benefit programme during the current five year plan.

The scope was also expanded to include renovation and modernisation of major or medium projects. The CCEA further decided to include new minor irrigation schemes with potential of over 100 hectare in the general category states.

It also fixed the minimum support price (MSP) for TD 5 grade of jute at Rs 910 per quintal (ex-Assam) for the 2005-06 season. For other grades, the MSP will be fixed keeping in view the price differentials related to grading undertaken on the basis of scores obtained in addition to the normal market price differential.

The CCEA approved a transmission system for the Kaiga atomic power project at an estimated cost of Rs 588.25 crore. It would facilitate the evacuation of power the project and disbursal to southern states.

A modified Intensive Dairy Development Programme, to be implemented during the tenth plan was also cleared.

The cabinet also approved the introduction of the Navy (Amendment) Bill in the Rajya Sabha and extended the tenure of the Nanavati Commission probing the 1984 Delhi riots upto February 9, 2005.

Other decisions

The Cabinet approved the signing of five annexes of the preferential trade agreement with Mercosur

The Centrally Sponsored Scheme for north-eastern states, Sikkim and Jammu & Kashmir was also extended to the end of 2006-07

An agreement on Mutual Administrative Assistance in customs matters in Saarc countries was also cleared

The CCEA also cleared the scheme for upgrading 100 industrial training institutes into centres of excellence