The Cabinet Committee on Economic Affairs has approved allowing 74 per cent foreign equity into Agrani Satellite Services Ltd. The approval by CCEA today will allow ASSL to obtain foreign equity of Rs 354.31 crore from Agrani Satcomm (Mauritius) and other foreign partners for a satellite system that Agrani is procuring from Alcatel Space industries.
The total cost of the project is Rs 1197 crore, for which the debt equity ratio works out to 1.5:1. ASSL has been founded and promoted by ASC Enterprises Ltd and is expected to own and operate satellite communication infrastructure by marketing and leaseing satellite transponder capacities over India and neighbouring countries. The cabinet note says the infrastructure would initially have a C& KU band communication service.
The CCEA has also approved today an on account payment of Rs 168 crore for National Agricultural Marketing Federation (NAFED) to support its oilseed procurement operation. The sum will help NAFED to procure oilseeds from farmers at a remunerative price during the current Kharif season.
The financial support for Nafed had become necessary to meet its possible losses as per the existing practice of the central government to underwrite any such loss in price support operations by procurement agencies. The level of price for major agricultural commodities is announced every year by the government on recommendations of the Commission for Agricultural Cost and Prices.
The two other decisions of the CCEA are the implementation of a Polio Eradication Programme for a cost of Rs 398 crore and extension of World Bank assisted ICDS programme . The polio programme will also be funded by the World Bank to ensure a zero incidence of polio by 2002. As part of the programme two national immunisation programme will be taken up in December and January.
