Russian Rupee Fund Investment Under Discussion

The Russian proposal on investment in projects in India through rupee debt funds is under discussion between the two governments, the Rajya Sabha was told yesterday.

Minister of state for finance M P Veerendra Kumar said in a written reply in the upper house that Russian deputy prime minister Davydov, during his visit last year had expressed interest in early finalisation of the policy on investment in project in India through rupee debt funds.

IOC refinery: Indian Oil Corporation (IOC) has been given an in principle approval to set up a six mmtpa (million metric tonnes per annum) joint venture refinery in the east coast, the RajyaSsabha was informed. Replying to a written question, minister of state for petroleum and natural gas, T R Baalu said the IOC has submitted a detailed feasibility report which includes the subject of site selection.

Oman pullot: Oman Oil Company (OOC) has decided to pull out of the joint venture with HPCL in the west coast refinery project in Maharashtra. Replying to a written question in the Rajya Sabha, minister of state for petroleum and natural gas T R Baalu said OOC has decided to review their interest in Hindustan Oman refinery project in Ratnagiri district in view of their various commitments.

Power projects: The power ministry is monitoring 95 private projects costing more than Rs 100 crore for which memorandum of understanding and letter of intent have been signed, power minister S Venugopalachari told the Rajya Sabha. Out of the 95 projects, three projects have commenced partial generation, Venugopalachari said in a written reply to a question in the House.

Currency import: For the first time, India has resorted to importing currency notes to overcome the acute shortage facing the country, finance minister P Chidambaram informed the Rajya Sabha. The RBI has been authorised to import currency notes of Rs 100 (2,000 million pieces) and Rs 500 (1,600 million pieces) denominations, Chidambaram said.

LOK SABHA

IA-AI merger: The government is exploring all possibilities for a merger of Air India and Indian Airlines, civil aviation minister C M Ibrahim informed the Lok Sabha yesterday. The minister said as a step in this direction a common board of directors had been appointed with specialists. Ibrahim said he had also proposed modification of the constitution of the board to enable inclusion of three NRIs as special invitees. The minister said the government is marching towards that direction (merger).

Ibrahim assured members that both Air India and Indian Airlines would wipe out their losses and register profits next year.

The estimated loss of Air India during 1996-97 was Rs 280 crore while Indian Airlines is estimated to have incurred losses worth Rs 34 crore during this period.