The Cabinet Committee on Economic Affairs on Thursday approved a package of concessions for Ratnagiri Gas and Power Private Ltd, previously Dabhol Power Company.
It also cleared time-bound appraisals of power and coal projects. The Cabinet, which also met on Thursday, cleared the National Rural Employment Guarantee Scheme, which will be introduced in Parliament on Tuesday.
The CCEA approved granting Ratnagiri Gas Power Private Ltd the mega-power status, contingent upon the company selling outside Maharashtra 5 per cent of power generated at the Dabhol plant.
Apart from this, tax concessions under Section 80 IA of the Income Tax Act, exemption from capital gains tax and a 5 per cent Customs duty waiver for LNG imports were cleared. The negotiated tariff of Rs 2.30 per unit of electricity for five years was also approved.
The appraisal and approval procedure time-frame for power and coal projects were shortened to 24 weeks and "in-principle" approval by the Planning Commission was done away with. But environment and forest clearance will be mandatory before CCEA approves projects.
If cost escalation due to these clearances is beyond 10 per cent of the overall cost, proposals will be referred back to the public investment board.
A special dispensation, envisaging appraisal of 45 hydro and 29 transmission projects by a committee chaired by the power secretary was also cleared.
Besides, the CCEA cleared additional investments of $100 million by ONGC Videsh Ltd in the Thar Jath field of Block 5A in Sudan. OVL's exploration expenditure during 2005 will be $47 million after the investment.
Since this exceeded the delegated power of the OVL board of directors, it required the approval of the CCEA, said Information and Broadcasting Minister S Jaipal Reddy.
The CCEA also approved the statutory minimum price of sugarcane at Rs 79.50 per quintal against last year's Rs 74.50. The SMP will be linked to a basic recovery of 9 per cent subject to a premium of 88 paise for every 0.1 percentage point increase in the recoveries for the sugar season of 2005-06.
The Cabinet approved the Central Silk Board (Amendment) Bill 2005, which amends the Central Silk Board Act of 1948. It also cleared a resolution, to be moved by the railways ministry in Parliament, for adoption of the recommendations of the second report of the Railway Convention Committee on the rate of dividend for 2005-06 and other ancillary matters.
A one-time increase of 5 per cent of time related continuity allowance for Grameen Dak Sevaks, with effect from April 2004, was also cleared. The Cabinet also approved a proposal to increase pension being paid to freedom fighters and their widows.
The day's decisions
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Fiscal concessions for Dabhol approved
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Deadline of 24 weeks set for approval of coal and power projects
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National Rural Employment Guarantee Scheme cleared
- OVL allowed to invest $100 million in Sudan
