The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on October 23 approved a number of measures including the hiking of MSP for wheat and the opening up of fuel retailing to non-oil companies. Here are the important takeaways from the day:
BSNL, MTNL to be merged
The government decided to merge loss-making telecom firms MTNL and BSNL as part of a revival package that includes raising sovereign bonds, monetising assets and voluntary retirement scheme (VRS) for employees.
Telecom Minister Ravi Shankar Prasad said the government will put in ₹29,937 crore for revival of the two State-owned telecom companies.
The revival package includes raising of ₹15,000 crore sovereign bonds and monetising ₹38,000 crore of assets in next four years.
Also, voluntary retirement will be offered to employees to cut cost, he said.
He said BSNL and MTNL will be merged. Pending this, MTNL will act as a subsidiary of BSNL.
Hikes MSP for wheat by ₹85, pulses by ₹325 per quintal
In a move to increase farmers’ incomes, the Union Cabinet has decided to hike the Minimum Support Price (MSP) for Rabi crops for the marketing season 2020-21, the government announced on Wednesday.
“The increase in MSP for Rabi Crops for 2020-21 is in line with the principle of fixing the MSPs at a level of at least 1.5 times of the all India weighted average cost of production [CoP], which was announced in the Union Budget 2018-19,” the government said in a release.
“This MSP policy, whereby the farmers are assured of a minimum of 50% as margin of profit, is one of the important and progressive steps towards doubling farmers' income by 2022 and improving their welfare substantively,” it said.
The highest increase has been recommended for lentils (increase of ₹325 to ₹4,800 a quintal) followed by safflower (increase of ₹270 to ₹5215 a quintal) and gram (an increase of ₹255 to ₹4875).
The MSP of rapeseed & mustard has been increased by ₹225 to ₹4,425. For both wheat and barley, it has been increased by ₹85 to ₹1925 and ₹1525 per quintal, respectively.
“In the case of cereals, the Food Corporation of India and other designated State agencies would continue to provide price support to the farmers,” the government said. “State governments will undertake procurement of coarse grains with the prior approval of the Government and would distribute the entire procured quantity under National Food Security Act (NFSA). The subsidy will be provided only for the quantity issued under NFSA.” — Special Correspondent
Opens up fuel retailing to non-oil companies
The government opened up fuel retailing norms, allowing non-oil companies to set up petrol pumps to increase competition.
Information and Broadcasting Minister Prakash Javadekar said the opening up the fuel retailing will increase investment and competition.
At present, to obtain a fuel retailing licence in India, a company needs to invest ₹2,000 crore in either hydrocarbon exploration and production, refining, pipelines or liquefied natural gas (LNG) terminals.
“The Cabinet Committee on Economic Affairs (CCEA) has approved review of guidelines for giving authorisation for marketing of transportation fuel,” he said.
Companies with ₹250 crore turnover can enter fuel retailing, subject to condition that 5% of the outlets will be in rural areas.
State-owned oil marketing companies — Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd. (HPCL) — currently own most of 65,000 petrol pumps in the country.
Reliance Industries, Nayara Energy (formerly Essar Oil) and Royal Dutch Shell are the private players in the market but with limited presence. Reliance, which operates the world’s largest oil refining complex, has less than 1,400 outlets.
Approves proposal to grant ownership rights to people in unauthorised colonies in Delhi
In a move that will benefit 40 lakh people, the Union Cabinet approved a proposal to grant ownership rights to people living in unauthorised colonies in Delhi, Union Minister Prakash Javadekar said.
The proposal is based on the recommendations of a committee, he said.
Housing and Urban Affairs Minister Hardeep Singh Puri said the Centre would also bring a Bill in the Winter Session of Parliament to give relief to residents of unauthorised colonies in the national capital.
The move comes ahead of the Assembly polls in the national capital, scheduled for early next year.
The decision “is applicable to 1,797 identified unauthorised colonies” spread over 175 sq. km and inhabited by people from lower income groups, he said.
It does not apply to 69 affluent colonies identified by the Delhi Development Authority (DDA) including Sainik Farms, Mahendru Enclave and Anantram Dairy, Mr. Puri added.
In July, the Delhi government proposed a set of parameters to regularise the 1,797 colonies, which included charging 1% cost of the circle rate of land for up to 200 sq. metre plot from occupants, besides a nominal penalty.
Approves agreements with other countries in various fields
The Cabinet gave approval to agreements signed with other countries in various fields including traditional medicine, and science and technology.
These include administrative arrangements for cooperation in the field of railways between the Ministry of Railways and the Directorate General for Mobility and Transport of the European Commission.
According to an official statement, a proposal for cooperation in science and technology between India and the U.S. was also approved.
The agreement would provide an opportunity to promote “high quality” and “high impact” research and innovation partnerships, as well as broaden relationships between the extensive scientific and technological communities, it said.
It will “open a new chapter” in bilateral relations with the U.S., as both sides will leverage complementary strengths spurred by a significant convergence of mutual interests, the statement said.
The Cabinet also approved a Memorandum of Understanding to provide a framework of cooperation between India and St. Vincent and the Grenadines for the promotion of traditional systems of medicine. This will mutually benefit the two countries in the said field, the statement read.
“It will lead to promotion and propagation of traditional systems of medicine in St. Vincent & the Grenadines. Activities mentioned in the MoU will boost the importance of AYUSH in St. Vincent and the Grenadines,” the statement said.
(With inputs from PTI)
