Govt nod for Rs 1,000 cr proposals

The government on Monday approved proposals worth Rs 1,000 crore, including the proposal of Gabriel Trade and Investment Co Ltd for investing Rs 900 crore to set up a Methanol manufacturing unit.

"The foreign investment promotion board (FIPB) had recommended the Gabriel Trade and Investment Ltd's proposal for setting up a wholly-owned subsidiary with a foreign equity of 100 per cent, amounting to Rs 900 crore, to undertake the manufacturing of methanol. The cabinet committee on economic affairs (CCEA) has approved the proposal," Finance Minister P Chidambaram told reporters after the meeting.

Gabriel Trade and Investment Ltd's may choose permissible location from locational restrictions and obtain industrial entrepreneur memorandum (IEM) from the department of industrial policy and promotion. The project will help in the manufacture of methanol used as building blocks for chemical products in the country.

Later, an official spokesperson said the proposal was approved subject to the company registering under the Companies Act. The Union Cabinet, which also met today, approved a Rs 177.85 crore astronomy satellite (Astrosat) project to study stellar objects covering a range of high-energy radiation.

The project, with a foreign exchange component of Rs 106.59 crore, was an approved programme under the Tenth Plan, an official spokes person told reporters after the meeting chaired by Prime Minister Manmohan Singh.

To be developed and launched by the Indian Satellite Research Organisation by 2007, the project envisages design, development, fabrication and launch of a multi-wavelength astronomical observatory satellite for studies of cosmic sources.

The Cabinet also gave its post-facto approval to the signing of the India-Nepal rail services agreement for the introduction of freight train services between the two countries to and from Birgunj in Nepal via Raxaul in India.

At present, freight traffic between India and Nepal is moving by road. The agreement was executed on May 21 this year between the two countries.

In addition, some bilateral traffic also originating from loading stations at on Indian Railways would be destined to Birgunj, the spokesperson said.

This will reduce transit time and provide better customer services and also prevent diversion of Nepal-bound transit traffic to the Indian market thereby curbing smuggling.