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Govt approves Rs 40,000-cr power equipment order

BS Reporter  |  New Delhi 

The government today approved a bulk order for power equipment, envisaging an investment of Rs 40,000 crore, for the upcoming thermal power plants of NTPC and Damodar Valley Corporation, a move that will help overcome power shortage in the country.

“The Cabinet Committee on Infrastructure approved the proposals for induction of supercritical technology through bulk ordering for 11 units of 660 Mw each by NTPC and DVC,” Urban Development Minister S Jaipal Reddy told reporters.

Following the government’s approval, power producer NTPC would float tenders for procuring the equipment for these 11 units, envisaging an investment of about Rs 40,000 crore, within 45 days.

“The most important condition of this approval is the development of phased indigenous manufacturing of supercritical equipment in the country,” Reddy said.

There is a necessary pre-condition of domestic manufacturing base in order to bid for the bulk order.

Of these 11 units, 3 are for NTPC’s joint venture with the Bihar State Electricity Board for a super-thermal power plant at Nabi Nagar in Bihar.

Nod for 7 new IIMs
The Cabinet today approved setting up of seven new Indian Institutes of Management (IIMs) in Tamil Nadu, Jharkhand, Chhattisgarh, Haryana, Jammu & Kashmir, Uttarakhand and Rajasthan besides allocating Rs 1,057 crore for their establishment. Currently, there are seven IIMs in the country at Ahmedabad, Bangalore, Kolkata, Lucknow, Indore, Kozhikode and Shillong. The Cabinet approved an outlay of Rs 451 crore in the Eleventh and Twelfth Five-Year Plans for each IIM. The projected outlay for the Eleventh Five-Year Plan for each of the four IIMs to be established at Tiruchirappalli (Tamil Nadu), Ranchi (Jharkhand), Raipur (Chhattisgarh) and Rohtak (Haryana) during 2009-10 is Rs 166 crore. These are to be set up in 2009-10 and become functional from the academic session 2010-11.

For the remaining three IIMs to be set up during 2010-11 or the second phase, the requirement for the Eleventh Five-Year Plan would be Rs 131 crore each. Though their locations have not been decided as yet, the three IIMs would be set up in Jammu and Kashmir, Uttarakhand and Rajasthan in 2010-11.

The total requirement of funds for establishment of seven new IIMs during the current Plan works out to Rs 1,057 crore.

There would be intake of 140 students in the Post Graduate Programme (PGP) course in Phase-I and by the end of Phase-II, it would reach 560 students per year. Admission shall be through the Common Admission Test (CAT).

The Eleventh Five-Year Plan endorsed by the National Development Council (NDC) in December 2007 envisaged the establishment of seven new IIMs in the country, out of which one IIM, namely Rajiv Gandhi Indian Institute of Management (RGIIM), Shillong, has already been established in Shillong (Meghalaya), commencing its first academic session from 2008-09.

Full stake sale of TCIL in Bharti Hexacom
The CCEA today accorded an in-principle approval to the proposal of sale of 30 per cent equity holding of Telecommunications Consultants India (TCIL) in Bharti Hexacom (BHL), a joint venture of TCIL and Bharti, on condition that it should be done at the right time to obtain the best price. TCL was established in 1978 under the DoT. In 1995, TCIL incorporated a joint venture company Hexacom India Ltd. BHL operates in Rajasthan and North-East circles. Bharti Airtel owns 70 per cent stake in BHL.

For disinvestment from BHL, TCIL will initiate process for appointment of advisors, legal advisors and valuers shortly. TCIL will float a global expression of interest inviting sale of stake through a two-stage bidding process — technical and financial bidding.

CoS to look into CIL proposals

The CCEA also approved a proposal for the formation of an empowered committee of secretaries with the mandate to consider Coal India Ltd’s (CIL’s) proposal to invest and acquire assets abroad.

“This move will help CIL get speedy clearance of its investment proposals abroad,” an official statement said.

50% quota for women in panchayats
The Cabinet today approved a proposal to increase reservation for women in panchayats to 50 per cent. This move is aimed at empowering women at the grassroots level. A meeting of the Union Cabinet, chaired by Prime Minister Manmohan Singh, decided to bring a Bill to amend Article 243(D) of the Constitution to enhance reservation for women in panchayats at all tiers, from the current one-third to at least 50 per cent.

“This is a path-breaking decision,” said Information and Broadcasting Minister Ambika Soni after the Cabinet meeting. She added that the Panchayati Raj ministry was likely to move a Bill to amend the Constitution in the next session of Parliament to give effect to the increased quota.

The enhanced reservation would be applicable to the total number of seats to be filled by direct elections, the offices of chairpersons, and the seats and offices of chairpersons reserved for scheduled castes and tribes.

First Published: Fri, August 28 2009. 00:26 IST