Cabinet holds unscheduled meetings

In unscheduled meetings, the Union Cabinet and the Cabinet Committee on Economic Affairs (CCEA) today approved record 50-55 proposals over three hours — one approval in about every three minutes. Cabinet meetings are usually held every Thursday.

Although officials said this was probably the last time the Cabinet would meet before the general elections are announced, Home Minister P Chidambaram, who briefed the media, said the Cabinet will meet again in the coming days.

Once the Election Commission announces the election dates, the model code of conduct will prevent the government from making any populist announcements.

The CCEA approved three Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) at Haldia in West Bengal, Dahej in Gujarat and Visakhapatnam in Andhra Pradesh, under the public-private model. “This will be subject to the existing viability gap funding rules,” Chidambaram said.

The Cabinet allowed the Indian Railways to build a rail coach factory at Rae Bareli, an electric locomotive unit at Madhepura as well as a diesel locomotive unit at Marhora in Bihar without joint venture partners. The entire cost of the units will be borne by the Railways, and will cost Rs 21,737 crore. “Joint venture partners for the projects could not be found,” Chidambaram said.

A fortnight ago, the Cabinet approved the two projects in Bihar. At that time, it was stated that five foreign companies including Alstom, France and Siemens, Germany were shortlisted as joint venture partners.

The CCEA also imposed stock limits on sugar for four months to check rise in prices of the sweetener. It also permitted Japan’s NTT DoCoMo to acquire 20.25 stake in Tata Teleservices (Maharashtra) Ltd for Rs 949.07 crore.

Exporters’ package to be announced Friday:
Meanwhile, Commerce Minister Kamal Nath is expected to announce a series of measures focussing on simplifying procedures for exporters. “This will be in the form of an interim foreign trade policy,” an official said. Measures could include easier norms for service tax reimbursements and extend the period for exporters to fulfil obligations applicable to some export promotion schemes.