The Cabinet approved a proposal to amend rules for foreign investment in non-banking finance companies (NBFCs).
“The amendment in the existing Foreign Exchange Management regulations on non- banking finance companies (NBFCs) will enable inflow of foreign investment in ‘other financial services’ on automatic route provided such services are regulated by any financial sector regulators (RBI, SEBI, PFRDA etc.)/government agencies,” according to an official statement on Wednesday.Foreign investment in ‘other financial services’ that are not regulated by any regulators or by a government agency can be made via the approval route, according to the statement.“Further, minimum capitalisation norms as mandated under FDI policy have been eliminated as most of the regulators have already fixed minimum capitalisation norms,” it said. “The present regulations on NBFCs stipulates that FDI would be allowed on automatic route for only 18 specified NBFC activities after fulfilling prescribed minimum capitalisation norms mentioned therein,” it said.
R & D projectThe Cabinet Committee on Economic Affairs approved a one-time grant of Rs.900 crores spread over three years for an R&D project for the development of Advanced Ultra Super Critical (AUSC) technology for thermal power plants. The estimated cost of the project is Rs.1,554 crore, according to the government.
The Rs.900 crore, commencing from 2017-18, is to be provided as plan gross budgetary support to Bharat Heavy Electricals (BHEL) for the implementation of the R&D project.
The project was proposed by a consortium of three government entities—BHEL, Indira Gandhi Centre of Atomic Research (IGCAR) and National Thermal Power Corporation (NTPC).
Factories ActThe Cabinet gave its ex-post facto approval for the amendment of Section 64 and section 65 and the consequential amendment in Section 115 of the Factories Act, 1948 by the introduction of the Factories (Amendment) Bill, 2016 in Parliament.
“These amendments relate to increase in overtime hours from the existing 50 hours per quarter to 100 hours (Section 64) and existing 75 hours per quarter to 125 hours (Section 65),” the government said.
India, CroatiaThe other decisions taken by the Cabinet include approval for the signing and ratification of an agreement between India and Croatia on economic cooperation.
India and Croatia had earlier signed an agreement on trade and economic cooperation in September 1994 with an aim to promote and develop bilateral trade and economic relations. “Signing of the new agreement between India and Croatia would be a step in continuity as the existing agreement expired in November 2009,” the government said.
The average bilateral trade growth was 17.44 per cent during the last three years and stood at $205.04 million in 2014-15.
The Cabinet also approved the introduction of pension and post-retirement medical services benefit to the employees of the Food Corporation of India.
“The annual financial implication for both schemes combined would be around Rs.134.4 crore at present level of salaries of the employees,” the government said.
