Any company where the Centre, state government, or both, doesn't hold at least 51 per cent of equity would be treated as a private-sector company for financial support under public-private-partnership (PPP). This decision was taken by the Cabinet Committee on Economic Affairs (CCEA) and pertained to a particular kind of financial support - viability gap funding (VGF). A subsidiary of a government company would also be treated as a government firm.
These changes have been done to remove any ambiguity in interpretation of the term 'private sector company' and to align it with the definition of 'government company' under the Companies Act, 2013, the statement added.
The CCEA also gave its approval for finance minister Arun Jaitley to approve any amendment to the viability gap funding scheme without making any material alteration to the scheme.
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This will enable the Department of Economic Affairs to make quick changes to meet the economic challenges thrown up by the developing economic situation.
Nod for Inter-governmental agreement on dry ports
The Cabinet cleared the signing and ratifying of the Inter-Governmental Agreement on Dry Ports of International Importance at the United Nations.
This is a follow up of the Resolution of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) regarding development of dry ports within member countries of UNESCAP, including India.
The agreement will help in connectivity and integration of the Asian highway network, the trans-Asian railways network and other modes by working towards development of dry ports, an official statement said.
