Wednesday, 23 May 2018

Cabinet approves waiver of Penal Interest on Government Loans advanced to Paradip Port Trust



The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for waiving of Penal Interest on Government Loans to Paradip Port Trust (PPT) as per following:
Waiver of penal interest amounting to Rs.1076.59 crore in respect of PPT as on 31.03.2017 and further accruals thereon till date of approval of waiver.
PPT to pay penalty @ 0.25% of Penal Interest as on the date of approval of waiver of penal Interest.
PPT to start the re-payment of outstanding principal of Rs. 387.74 crore and outstanding interest as on date of approval of the waiver and the re-payment to be completed in two instalments in 2018-19 and 2019-20.

Background:

Paradip Port Trust (PPT) had availed Rs.642.69 crore of loan under different heads at different points of time beginning from 1967 to 2002 to finance its various infrastructure projects. Each loan was to be repaid in 20 yearly installments with a five year moratorium period. PPT was incurring losses upto the year 1987-88 and there was huge deficit in revenue account due to insufficient cargo. As a result of which PPT could not start its repayment as per schedule. As on 31.03.2017, PPT has a total loan liability of Rs. 1743.69 crore (Rs.387.74 crore towards defaulted principal, Rs.279.36 crore towards interest and Rs. 1076.59 crore towards penal interest).

Further, the Port has a future fund requirement of around Rs.6,695 crore for different upcoming developmental projects and employees’ pension liabilities upto 2018-19. Therefore, the Port is not in a position to repay the total loan liability of Rs.1,743.69 crore.
Courtesy: pib.nic.in

Cabinet approves restructuring of balance sheet of Scooters India Limited, Lucknow


The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for restructuring of balance sheet of Scooters India Limited, Lucknow (SIL) by way of:

reduction of equity of Rs. 85.21 crore in the share capital of SIL held by Government of India against accumulated losses. The reduction would be deemed to have taken effect as on 31.03.2013 and
freezing the interest on the Non-Plan loan of Rs. 1.89 crore released to SIL during 2012-13 from the date of its release to the company and conversion into equity of the outstanding principal amount of Rs. 1.89 crore.

With this approval, the balance sheets of Scooters India Limited from 2012-13 onwards will be regularised and further restructuring will be effected accordingly. This is also expected to clear a hurdle in the process of disinvestment of the company.
Courtesy: pib.nic.in

Cabinet approves waiver of Penal Interest on Government Loans advanced to Visakhapatnam Port Trust

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for waiving of Penal Interest on Government Loans to Visakhapatnam Port Trust (VPT) as per following:
Waiver of Penal Interest amounting to Rs. 250.89 crore in respect of VPT as on 31.03.2017 and further accruals thereon till date of approval of waiver;
VPT to pay penalty @0.25%of Penal Interest as on date of approval of waiver of Penal Interest;
VPT to pay the outstanding Principal of Rs. 44.69 crore and outstanding Interest as on the date of approval of waiver, in one single instalment in the Financial Year 2018-19.

Background:

Visakhapatnam Port Trust (VPT) had availed Rs. 110.41 crore of loan at different points of time beginning from 1970-71 to 1984-85 to finance its Outer Harbour Project to accommodate deep draft vessels of 100,000 DWT for Iron Ore exports. Each loan had a moratorium period of 5 years from the date of sanction. VPT made payments towards interest for the period of moratorium on various loans till 1978-79. However, it could not be continued with the repayment during the period from 1979-80 to 1989-90 due to revenue losses to the Port. It started repayment of loan amount (both principal and interest) with effect from 1990-91 onwards. As on 31.03.2017, VPT has a total loan liability of Rs. 354.23 crore (Rs. 44.69 crore towards defaulted Principal, Rs. 58.65 crore towards defaulted Interest and Rs. 250.89 crore towards Penal Interest).

Further, the Port has a future fund requirement of around Rs. 2671.79 crore for different upcoming developmental projects and employees’ pension liabilities upto 2018-19. Therefore, the Port is not in a position to repay the total loan liability of Rs. Rs.354.23 crore.
Courtesy: pib.nic.in

Cabinet approves USOF scheme for provision of mobile services in Meghalaya under CTDP for North Eastern Region



The Union Cabinet chaired by chaired by Prime Minister Shri Narendra Modi has approved Implementation of a Comprehensive Telecom Development Plan (CTDP) for the North Eastern Region(NER) in Meghalaya at a total estimated project cost of Rs. 3911 crore to be funded by the Universal Service Obligation Fund (USOF) and approval of the enhanced cost of CTDP Project for NER for an amount of Rs. 8120.81 crore (Rs. 5336.18 crore already approved by the Cabinet on 10.09.2014).

Salient Features:
The Scheme entails:

Provision of 2G+4G mobile coverage in identified uncovered areas of the State of Meghalaya; and

Provision of 2G+4G seamless mobile coverage along the National Highways in Meghalaya.

Benefits:

Strengthening of telecom network will result in increase the penetration of mobile connectivity in Meghalaya resulting in affordable and equitable access of communication, information and governance to people.

Providing access to public mobile network to hitherto unreached people of Meghalaya will empower citizens with benefits of ICTs for furthering socio-economic developments.

The innovative skill of uncovered areas will increase through broadband and internet access.

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Courtesy: pib.nic.in

Cabinet approves MoU between India and Singapore on Cooperation in the field of Personnel Management and Public Administration


The Union Cabinet chaired by chaired by Prime Minister Shri Narendra Modi has approved signing of the Memorandum of Understanding (MoU) between India and Singapore on Cooperation in the field of Personnel Management and Public Administration.

Salient Features:

The MoU aims at improving the current system of governance, particularly in the areas of Workforce, Workplace and Jobs, Public Service Delivery, Human Resource Management, Public Sector Reform, Leadership/ Talent Development and E-Governance/Digital Government.

Benefits:

The MoU will provide a framework for cooperation between India and Singapore in the field of Public Administration and Governance Reforms.

It aims at achieving excellence in public administration, good governance and public service reform, which in turn, would ensure and promote greater public accountability.

It also aims to bring about innovative best practices, so as to achieve excellence in public administration in the context of improving online public service delivery.

Courtesy: pib.nic.in

Cabinet approves MoU between India and Turkey on trade in poppy seeds to ensure quick and transparent processing for import of poppy seeds from Turkey


The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the signing of a Memorandum of Understanding (MoU) between India and Turkey on trade in poppy seeds to ensure quick and transparent processing for import of poppy seeds from Turkey.
Details:

The MoU provides that –

Turkish Grain Board (TMO) shall maintain an online system to enable regulation of export of poppy seeds from Turkey to India. Exporting companies shall submit application through the Agean Exporters Association (EIB) (responsibility given by law) to TMO for obtaining membership of the online System.
Each year, the quantity of poppy seeds which shall be imported by India from Turkey shall be decided by Government of India in consultation with Government of Turkey taking into account the production of poppy seeds in Turkey in a crop year, balance from previous crop years and domestic or other export requirement of Republic of Turkey.
The exporting companies shall get registered with the TMO. Each sales contract entered into by the exporting company with Indian importer shall be registered with TMO through the online system referred. It shall be the responsibility of TMO not to register sales contract in excess of the quantity referred to in Para 2 above.
Taking into account the quantity as referred to in Para 2 above, every year both parties may consider to set a quantity to be imported by any Indian importer in a crop year.
The Central Bureau of Narcotics (CBN) will register the sales contract registered by TMO as per details accessed on the online system maintained by TMO in accordance with guidelines for registration laid down by Ministry of Finance, Government of India. The CBN shall upload the details of sales contract so registered by it on the online system. TMO shall allow the export in respect of only those contracts so registered by CBN.
The TMO shall provide a legal production certificate for the poppy seeds to exporters following the submission of sales contract and the completion of other necessary procedures.

The MoU will promote quick and transparent processing of quota allocation and prior authorization for poppy seeds import from Turkey. In this way genuiness of import contract can be easily ensured as well as many litigation matter resulting in delay in the import can be avoided.


The MoU will ensure continuous availability of poppy seeds in domestic market of India and ultimately Indian consumers of poppy seeds will be benefited.

Background:

Import of poppy seeds from Turkey got withheld due to litigation resulting in great hike of price of poppy seeds in domestic market of India and hoarding of the same by some importers. Various stays given by the Court and repeated adjournment of hearing graves the situation and resulted in less availability of poppy seeds in the country leading to a great problems to the consumers. To avoid such legal complication, price rise and hoarding, an alternative mechanism needs to be evolved by way of an MoU between Government of India and Government of Turkey in which real time data can be exchanged to ensure the quantity of poppy seeds imported from Turkey is genuine and legally produced in Turkey.
Courtesy: pib.nic.in

Cabinet approves between India and Morocco on India-Morocco cooperation in Renewable Energy

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its ex-post facto approval for the Memorandum of Understanding (MoU) between India and Morocco on India-Morocco Cooperation in Renewable Energy. The MoU was signed on 10th April, 2018 in New Delhi.

Both sides aim to establish the basis for a cooperative institutional relationship to encourage and promote technical bilateral cooperation on new and renewable energy issues on the basis of mutual benefit, equality and reciprocity. The MoU envisages establishing a Joint Working Committee to review, monitor and discuss matters relation to areas of cooperation. The MoU aims for exchange of expertise and networking of information.

The MoU will help in strengthening bilateral cooperation between the two countries. .
Courtesy: pib.nic.in

Cabinet approves waiver of Penal Interest on Government Loans advanced to Paradip Port Trust

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for waiving of Penal Int...