Tag: Union Cabinet

Cabinet to consider Rs 4,500 crore package for sugar industry on Wednesday

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Union Cabinet is likely to consider Wednesday a Rs 4,500 crore plan to more than double the production assistance paid to sugarcane farmers and transport subsidy to mills exporting the sweetener, sources said.

The proposal to raise production assistance to Rs 13.88 per quintal to farmers and transport subsidy to mills for exports of five million tonnes of surplus sweetener is part of government plan to clear more than Rs 13,500 crore arrears sugar mills have towards farmers.

In June, the government had announced Rs 8,500 crore package for the cash-starved industry, which is facing a glut-like situation because of record 32 million tonnes of sugar production in the current 2017-18 marketing year ending this month.

Sugar output is set to increase further to 35 million tonnes in the next marketing year as against the domestic demand of 26 million tonnes. The opening stock of sugar is estimated at 10 million tonnes on October 1, next month.

According to sources, the Cabinet Committee on Economic Affairs (CCEA) will take up the food ministry’s proposal Wednesday under which production subsidy to farmers has been increased to 13.88 per quintal for 2018-19 from Rs 5.5 in the current marketing year.

Moreover, the ministry has proposed a mandatory export of 5 million tonnes of sugar and offered a subsidy of up to Rs 3,000 per quintal for transport and handling as global prices are unviable for shipments. This subsidy will be based on the distance of mills from ports.

Sources said the government will have to bear about Rs 4,500 crore on account of these measures to help sugar mills and cane farmers. These steps will enable mills to export sugar and clear cane arrears, which currently stand at Rs 13,567 crore. Mills in Uttar Pradesh owes the maximum at Rs 9,817 crore to cane farmers, they added.

The government has taken a slew of measures to bail out cash-starved sugar mills as well as cane farmers in the last one year.

First, it doubled the import duty on sugar to 100 per cent and then scrapped the export duty on it. It also made it compulsory for millers to export two million tonnes of sugar even as the global prices were low.

With mounting cane arrears, the government in June announced Rs 8,500 crore package for the industry and creation of buffer stock. The package included soft loans of Rs 4,440 crore to mills for creating ethanol capacity. It will bear an interest subvention of Rs 1,332 crore for this.

The Centre had also announced an assistance of Rs 5.50 per quintal of cane crushed, amounting to Rs 1,540 crore, to mills. Around Rs 1,200 crore was allocated for the creation of 3 million tonnes buffer stock of sugar.

The minimum selling price of the sweetener has been fixed at Rs 29 per kg.
Last week, the government approved an over 25 per cent hike in the price of ethanol produced directly from sugarcane juice for blending in petrol in a bid to cut surplus sugar production and reduce oil imports.

The CCEA raised the procurement price of ethanol derived from 100 per cent sugarcane juice to Rs 59.13 per litre from the current rate of Rs 47.13.
The price for ethanol produced from B-heavy molasses (also called as intermediary molasses) was hiked to Rs 52.43 a litre from the current Rs 47.13 but that for ethanol produced from C-heavy molasses was reduced marginally to Rs 43.46 from Rs 43.70.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cabinet raises DA by 2% for central government employees

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Union cabinet on Wednesday approved the release of an additional two per cent dearness allowance (DA) for 48 lakh central government employees and 62 lakh pensioners with retrospective effect from July.

The hike of two percent raises the existing DA of seven per cent to nine per cent. The Cabinet had raised the DA from five to seven percent last March. The increments have been as per the recommendations of the seventh Central Pay Commission.

“The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 6,112.20 crore per annum and Rs 4,074.80 crore in the financial year 2018-19,” the Finance Ministry said in a statement.

The period under consideration for financial year 2018-19 is the eight months from July 2018 to February 2019.

“This will benefit about 48.41 lakh Central government employees and 62.03 lakh pensioners,” the statement said.

Dearness allowance, paid to government employees and pensioners, is a cost of living adjustment allowance to mitigate the impact of inflation on people.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cabinet approves agreement with Singapore on urban planning

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday gave its ex post-facto approval to the agreement between India and Singapore on cooperation in the field of urban planning and development.

The MoU, signed on May 31, would facilitate government agencies to readily tap into the expertise of Singapore agencies in the areas of urban development and management, an official statement said.

“Under this MOU, capacity building programme in the field of planning, focusing on areas of urban planning, water and waste water management, solid waste management, intelligent transport system and public financing (Public Private Partnerships) would be undertaken,” it said.

It would lead to dissemination of knowledge of best practices, build capacities and provide hand holding support to various government agencies at the state and central levels, the the statement added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cabinet approves plan to bring 11 agricultural schemes into one

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Cabinet Committee on Economic Affairs on Wednesday approved a Green Revolution Krishonnati Scheme to bring coordination among 11 different agriculture schemes besides their effective monitoring.

“In order to fulfil the promise of doubling farmers’ income, our government has taken the decision to bring 11 schemes into one umbrella scheme. It is Harit Kranti Krishonnati Yojana. It is a historic decision,” Union Minister Ravi Shankar Prasad said while briefing the media about the Cabinet decisions.

He said the Central share in implementing the new scheme will be Rs 33,279 crore.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cabinet approves Fugitive Economic Offenders Ordinance 2018

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Union Cabinet today approved a proposal to promulgate Fugitive Economic Offenders Ordinance 2018 that provides for confiscating properties and assets of economic offenders like loan defaulters who flee the country, sources said.

The Fugitive Economic Offenders Bill was introduced in Lok Sabha on March 12 but could not be passed due to logjam in Parliament over various issues.

It seeks to confiscate properties of economic offenders – like Nirav Modi- who have left the country to avoid facing criminal prosecution.

The ordinance was approved at a Cabinet meeting chaired by Prime Minister Narendra Modi, the sources said.

It will come into effect after the assent of the President.

The provisions of the ordinance will apply for economic offenders who refuse to return, persons against whom an arrest warrant has been issued for a scheduled offence as well as wilful bank loan defaulters with outstanding of over Rs 100 crore.

It provides for confiscating assets even without conviction and paying off lenders by selling off the fugitive’s properties.

Such economic offenders will be tried under Prevention of Money Laundering Act (PMLA).

The ordinance defines a fugitive economic offender as a person against whom an arrest warrant has been issued for committing offence like counterfeiting government stamps or currency, cheque dishonour for insufficiency of funds, money laundering, and transactions defrauding creditors.

A fugitive economic offender is one who has left the country to avoid facing prosecution, or refuses to return to face prosecution.

According to the ordinance, a director or deputy director (appointed under the PMLA, 2002) may file an application before a special court (designated under the 2002 Act) to declare a person as a fugitive economic offender.

The application will contain the reasons to believe that an individual is a fugitive economic offender.

Besides, the application will have information about his whereabouts, a list of properties believed to be proceeds of a crime for which confiscation is sought, a list of benami properties or foreign properties for which confiscation is sought, and a list of persons having an interest in these properties.

Upon receiving the application, the special court will issue a notice to the individual, requiring him to appear at a specified place within six weeks. If the person appears at the specified place, the special court will terminate its proceedings under the provisions of the Bill.

Any property belonging to the fugitive economic offender may provisionally be attached without the prior permission of the special court, provided that an application is filed before the court within 30 days.

Appeals against the orders of the special court will lie before the High Court.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow