Govt okays FDI plan of India Infra Development Fund

The government today cleared a proposal by India Infrastructure Development Fund (IIDF), Mauritius, for international investment in its India fund, which is likely to bring in foreign direct investment (FDI) of Rs 750 crore in the country.

“The Cabinet Committee on Economic Affairs today gave its approval as recommended by the Foreign Investment Promotion Board, to the proposal of IIDFL Mauritius to seek contributions from international investors and invest the same in IIDF by subscribing to the units of the fund under the FDI route,” an official statement said.

Gratuity for private sector employees raised
The government today approved raising the ceiling for payment of gratuity to private sector employees from Rs 3.5 lakh to Rs 10 lakh.

The decision was taken at a Cabinet meeting chaired by Prime Minister Manmohan Singh. This will bring parity between government and private sector employees in enjoying equal gratuity benefits. The Sixth Pay Commission recommendation had raised the limit for central government employees.

New administrative body for Andaman ports
The Cabinet has also decided to replace the existing administrative structure of ports in the Andaman and Nicobar Islands with a new corporate body to increase commercial activities, including attracting foreign direct investment, into the islands.

MSP for coconut at 2009 levels
In another decision, the government retained the minimum support price (MSP) for milling and ball copra (coconut) for the 2010 season at the last year’s level of Rs 4,450 and Rs 4,700 crore per quintal, respectively.

Indo-Malaysian road pact
A proposal for an agreement between India and Malaysia on highway projects received a setback today with many Cabinet members opposing it over exit clause that allows developers to leave the project. This has forced the government to refer the matter to a group of ministers.