PSUs get greater autonomy

Cabinet clears slew of measures, 18 oil blocks awarded under NELP-V.

The government went on an overdrive, clearing a slew of pending proposals, including autonomy to PSUs on mergers and acquisitions and higher investments. It also approved the award of 18 oil blocks under NELP V, with eight going to ONGC and five to Reliance.

The Cabinet committee on economic affairs also cleared road testing facilities, viability gap funding for infrastructure projects and integrated textiles parks which are expected to generate 500,000 jobs.

The Cabinet committee on WTO affairs, which also met today, cleared India's revised offers for services negotiations.

The downlinking guidelines for television channels and the electricity tariff policy were, however, referred to separate groups of ministers. Information and Broadcasting Minister S Jaipal Reddy told reporters that the guidelines had proposed that all channels downlinking in India set up registered companies and channels in India. Besides, mandatory sharing of feed of sports events of national importance with Doordarshan had also been proposed.

A group of ministers headed by Defence Minister Pranab Mukherjee, which is looking at the uplinking policy, will also study the I&B ministry's proposals on downlinking guidelines. The tariff policy was referred to a GoM as it was felt that the issues were complicated and that more discussion was required.

The CCEA cleared the Rs 1,718 crore National Automotive Testing and Research & Development Project which involves the creation of five automotive testing and homologation centres in the country.

The government intends to set up 25 integrated textiles parks to house around 1,250 units for which Rs 625 crore is to be allocated during the current fiscal and 2006-07. The move is expected to facilitate investments of Rs 18,500 crore in the sector. The proposal cleared by the CCEA involved the merger of the Scheme for Apparel Parks for Exports and the Textile Centre Infrastructure Development.

The Union Cabinet also cleared the signing and ratification of a Bilateral Investment Promotion and Protection Agreement with Senegal. India has BIPAs with 57 countries and agreements with eight other countries have been finalised.

It also approved a new headquarters for the ministry of external affairs at an estimated cost of Rs 172.75 crore.

Visa agreements with South Korea and Venezuela were also approved by the Cabinet along with an audio-visual co-production pact with Italy.