The Cabinet has approved the promulgation of the National Bank for Agriculture and Rural Development (amendment) Ordinance 2000 to allow the bank to issue and sell bonds or other instruments in order to meet its financial needs.

The move would also enable Nabard to enter the capital market before September 30 so that persons who have received capital gains since April can invest in these bonds.

The ordinance proposes to amend section 19 of the Nabard Act, 1981, which prohibits the bank from raising capital from the market.

The government also announced a three per cent hike in the Dearness Allowance for its employees and an increase in dearness relief for pensioners with retrospective effect from July 1, involving a total additional financial outgo of Rs 1,194.96 crore a year.

Government employees would get DA at the rate of 41 per cent, instead of the existing 38 per cent.

For the current year, the hike would involve an additional burden of Rs 592.62 crore.

The Cabinet also approved the investment of 21.9 million dollars by Telecommunications Kenya Ltd as 30 per cent equity.

A joint venture company would be formed for operating basic telecom services in Kenya.

The government of Kenya had released a global tender in February, 2000, for regional telecom operators licences in eight regions. TCIL had bid for all the eight regions and its consortium was adjudged the best in five regions.

The government also decided to wind up Electronics Trade and Technology Development Corporation Limited (ET T), a Government of India enterprise.

The Cabinet has approved the formation of a joint venture between the ministry of railways and Gujarat Pipavav Pvt Ltd along with their associates, for execution of broad gauge connection from Surendranagar to Rajula and construction of a new line of 14 km from Rajula city to Pipavav at an estimated capital cost of Rs 294 crore.

This will be the first joint venture of its kind whereby a railway broad gauge conversion project will be executed through a joint venture.

The Union Cabinet has approved a proposal to reduce the retirement age of board level and below board level employees of the National Textile Corporation and its subsidiary companies to 58 years from 60 years.

It also approved the exchange of letters with Bangladesh supporting a cross border cement project in that country including construction and maintenance of 17 km conveyor belt and facilitation of the border crossing of technical personnel.

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