Green signal to RINL expansion

The Cabinet Committee on Economic Affairs today approved the Rashtriya Ispat Nigam Ltd's (RINL) long-pending proposal to double its liquid steel capacity to 6.3 million tonnes by 2007-08 at an estimated cost of Rs 8,692 crore.

Due to delays in clearing the project, the expansion cost has increased from Rs 2,277 crore to Rs 8,692 crore, Finance Minister P Chidambaram said.

The project, is to be executed in two stages over 48 months. The first stage will see commissioning of all major process equipment like blast furnace, sinter plant, raw material handling system, steel melting shop and seamless tube plant. The second stage will see commissioning of special bar mill and light structural mills.

The project is likely to be funded with a debt-equity ratio of 1:1. Currently, the debt-equity ratio of the company is 0.5:1.

At present, RINL's products are 100 per cent long bars - re-bars, wire rods and structurals that are used in the construction industry. After the expansion, the company will enlarge product mix to include flat products like hot-rolled coils and cold rolled coils.

Also, special steel production will be increased from 30 per cent to 50 per cent of the total saleable steel

The Cabinet, which also met today, approved the repeal of Agriculture Cess Act 1940 and Produce Cess Act 1966 to remove the cess on farm produce. Commerce and Industry Minister Kamal Nath said the move would help to make farm products more competitive. Laws governing the cess on other products like tobacco, spices and coffee are in the process of being repealed.

The CCEA also approved setting up of a public-private partnership appraisal committee on the lines of the Public Investment Board for clearing projects exceeding Rs 100 crore. The new committee will be headed by the economic affairs secretary and will have secretaries from departments of expenditure, legal affairs and Planning Commission as its members.

The Cabinet also cleared transfer of all markets in Delhi, except those in Connaught Place and INA Market from the purview of the urban development ministry, to local bodies. The move will help the urban development ministry to look at other issues and simplify administration.

"Further studies will be made in the case of Connaught Place and INA Market before a decision is taken," Information and Broadcasting Minister S Jaipal Reddy said after the Cabinet meeting.

The Cabinet also approved setting up of Indian Institutes of Science Education and Research at Pune and Kolkata at a cost of Rs 500 crore each, spread over a seven-year period. The institutes will become functional in 2006.

The government also proposes to amend the Centeral Vigilance Commission Act and the Delhi Special Establishment Act to smoothen the appointment of high-ranking officials like the director of the Central Bureau of Investigation and the Central Vigilance Commissioner.

The Cabinet also decided to include Sanskrit in the list of classical languages.