Cabinet defers decision on OVL's Nigeria venture

The Cabinet today deferred a decision on allowing ONGC Videsh Ltd to accept Nigeria's offer for picking up 90 per cent stake in the two oil blocks it lost last year to Korean National Oil Company despite being the highest bidder.

The Cabinet also approved the Khadi and Village Industries Commission (Amendment) Bill, 2005 for reconstituting the commission.

The amendments are aimed at modernising the khadi and village industries and generating sustainable employment in the rural areas.

It also approved modifications to the Accelerated Rural Water Supply Programme (ARSWP) in the Tenth Plan, where 20 per cent of the ARWSP funds for the sub-mission for water quality will be retained by the Centre.

In exceptional cases, the ceiling could be exceeded, Priyaranjan Dasmunshi told reporters. In addition, gram panchayats will be involved for all new projects sanctioned under the sub-mission for water quality.

The Cabinet Committee of Economic Affairs, which also met today, approved additional Kasturba Gandhi Balika Vidyalayas for girls belonging to SC, ST, OBC and minorities at a cost of Rs 489 crore.

The Cabinet also gave a go-ahead to a defence cooperation agreement with Philippines during President APJ Abdul Kalam's three-day visit to the south-east Asian nations from February 3.

The agreement between the two countries will be on developing cooperation in tourism. The agreement, which would remain in force for five years, would be automatically renewed for the same period, he said.