NCR to get single transport body

Nod for ITDC and STC divestment

 

The Cabinet Committee on Economic Affairs (CCEA) on Thursday decided to set up the National Capital Region Transport Corporation Ltd (NCRTC) with initial seed capital of Rs 100 crore to execute and run a regional rapid transit system (RRTS) in the national capital region (NCR).

The CCEA also approved five per cent stake sale in India Tourism Development Corporation (ITDC) and 1.02 per cent in State Trading Corporation (STC) through the offer for sale (OFS) route, an official statement said.

The transport corporation will be set up within two months, according to an official statement.

NCRTC is expected to provide fast transit to NCR towns and meet the high growth in transport demand. This company may form subsidiary companies to implement each corridor.

Initially, NCRTC will take up three corridors — Delhi-Sonipat-Panipat, Delhi-Gurgaon-Alwar and Delhi-Ghaziabad-Meerut. The three corridors are expected to carry 1.63 million people daily by 2016 and 3.63 million by 2041.

The seed capital will be contributed by the railways, urban development ministry, and the governments of Delhi, Haryana and Rajasthan.

The disinvestment is expected to fetch around Rs 30 crore to the exchequer. The government expects its five per cent stake (428.8 million shares) in ITDC will fetch Rs 23.58 crore. The expectation from the disinvestment of 1.02 per cent (61.3 million shares) in STC to bring in Rs 10 crore.

This move would also make the two enterprises compliant with the Securities and Exchange Board of India’s (Sebi) minimum public holding norm of 10 per cent.

The government currently holds 92.11 per cent stake in ITDC and 91.02 per cent stake in STC. The government is required to bring down its stake in these two companies to 90 per cent by August 8.

The ITDC runs hotels and restaurants at various places for tourists, besides providing transport facilities.

The STC was set up with the primary objective to trade with East European countries.

The government has set a target of collecting Rs 40,000 crore from disinvestment during 2013-14.

Infrastructure upgradation for industrial clusters
A Modified Industrial Infrastructure Upgradation scheme would be launched to provide infrastructure facilities under public-private-partnership (PPP) in industrial clusters. The CCEA approved the scheme with outlay of Rs 1,030 crore for the 12th five-year plan (2012-13 to 2016-17).

It was launched in 2003 as a central sector scheme to enhance competitiveness of industry by providing quality infrastructure through PPP in selected functional clusters with central assistance up to 75 per cent of the project cost subject to a ceiling of Rs 5 crore.

The scheme was recast in February 2009, based on the recommendation of an independent evaluation. Central assistance was retained up to 75 per cent and assistance up to 90 per cent of the project cost was introduced for the north-east region and hill states.
OTHER APPROVALS

• INFRA UPGRADE: Rs 1,030 crore set aside for a scheme to provide infrastructure facilities under public-private-partnership in industrial clusters
   
• EDUCATION: Country’s first university only for women to come up at Raebarelli; focus on research and higher studies
   
• RENT: Stage set for Bill to link rents in Delhi to inflation; 1995 rent control legislation to be repealed
   
• STAKE SALE: 5% in India Tourism Development Corporation and 1.02% in State Trading Corporation; could fetch govt around Rs 30 crore