Header Ads

Converting Rajasthan Electronics & Instruments Limited, Jaipur into an independent Central Public Sector Enterprise



Converting Rajasthan Electronics & Instruments Limited, Jaipur into an independent Central Public Sector Enterprise 
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for delinking Rajasthan Electronics & Instruments Limited (REIL), Jaipur, from its parent company Instrumentation Limited (IL) and turn it into an independent Central Public Sector Enterprise (CPSE) under Department of Heavy Industry. 


Government of India will buy IL shareholding of 51% (62,47,500 shares of face value of Rs.10 each) at book value of Rs.77.09 per share, a fair valuation which comes to Rs.48.16 crore, as on 31.03.2015.

This will result in conversion of REIL in to an independent CPSE with greater autonomy to capitalize on the available business opportunities and freedom to approach capital markets for its expansion. It will help REIL to attain a level of growth commensurate with its potential.

Background:

REIL was incorporated in 1981, with an initial authorized and paid up capital of Rs.40 lakh, as a Joint Venture company of IL and Rajasthan State Industrial Development and Investment Corporation, Jaipur (RIICO). 
*****
MSP for Copra for 2016 season 
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the Minimum Support Prices (MSPs) for Copra for 2016 season. The decision is based on recommendations of Commission for Agricultural Costs and Prices (CACP). CACP, which is an expert body, takes into account the cost of production, overall demand-supply, domestic and international prices, cost of conversion of copra into coconut oil, the likely effect of the Price Policy on the rest of economy, besides ensuring rational utilization of production resources like land and water, while recommending MSPs.

The Minimum Support Price (MSP) for Fair Average Quality (FAQ) of “Milling Copra” has been increased to Rs.5950/- per quintal for 2016 season from Rs. 5550/- per quintal in 2015. Also, the MSP for FAQ of “Ball Copra” has been increased to Rs.6240/- per quintal for 2016 season from Rs. 5830/- per quintal in 2015. The MSP of Copra is expected to ensure appropriate minimum prices to the farmers and step up investment in Coconut cultivation and thereby production and productivity in the country.

The National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and National Cooperative Consumer Federation of India Limited (NCCF) would continue to act as Central Nodal Agencies to undertake price support operations at the Minimum Support Prices in the Coconut growing states.

Besides increase in Minimum Support Prices (MSP) for Copra, Government has taken several other farmer friendly initiatives over the last one year. These, inter-alia, include the following:

A new crop Insurance scheme for farmers’ welfare, namely, the ‘Pradhan Mantri Fasal Bima Yojana’ has been introduced under the scheme, there will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.There is no upper limit on Government subsidy.

Government has also created portal on crops insurance in order to keep farmers better informed.

A Scheme to issue Soil Health Card to every farmer has been introduced. Soil health management in the country is being promoted through setting up of soil & fertilizer testing laboratories and implementation of organic f Government has also framed guidelines under Paramparagat Krishi Vikas Yojna (PKVY) to promote organic farming and develop potential market for organic products.

The Pradhan Mantri Krishi Sinchai Yojana, has been launched with the objective of creating sources of assured irrigation.

A dedicated Kisan Channel has been started by the Doordarshan to address various issues concerning farmers.

An initiative is being taken to set up a National Agriculture Market (NAM). This would enable farmers to overcome the impediments in marketing of agricultural produce and get better price discovery. A common e-market platform is being created and would be provided free of cost to the States/UTs that undertake to introduce a single license for trading in the whole state, a single point levy of market fee and permit e-trading Government is also encouraging formation of Farmer Producer Organisations. 
***
Auction of linkages of Non-Regulated Sector 
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval that all allocations of linkages/Letter of Assurance (LoAs) for non-regulated sector viz. Cement, Steel/Sponge Iron, Aluminium, and Others [excluding Fertilizer (urea) sector], including their CPPs, shall henceforth be auction based.   The tenure of Fuel Supply Agreement (FSA) will be as decided by Ministry of Coal from to time.
The framework attempts to make the coal available in a fair manner to the end-users. The proposed auction methodology leads to the price through a market mechanism; it does not seek to maximize revenue.
It ensures that all market participants of non-regulated sector have a fair chance to secure coal linkage, irrespective of their size.
The details are as follows:
                          i.            There may not be premature termination of FSAs of non-regulated sector as of now. There will be no renewal of existing FSAs of non-regulated sectors [except FSAs of CPSEs and Fertiliser (Urea)] which are maturing in 2015-16 onwards, after completion of their current agreement tenure.
                        ii.            The existing FSAs with Central Public Sector Enterprises (CPSEs) may continue to be renewed on expiry; for additional linkages, CPSEs may participate in auction.
                      iii.            To start with, in the first tranche, the quantities corresponding to FSAs of non-regulated sector [except CPSEs and Fertilizer (Urea)] maturing in 2015-16 onwards and 25% of incremental Coal India Limited (CIL) / Singareni Collieries Company Limited (SCCL) production during 2015-16 over 2014-15 will be put up for auction.
                      iv.            For auction of linkages, separate quantities shall be earmarked for sub-sectors of Non-Regulated sector. The sub-sectors could be Cement, Sponge Iron/Steel, Aluminium, and Others [excluding Fertilizer (urea) sector], including their Captive Power Plants (CPPs) etc. Auctions shall be conducted by CIL/SCCL.
Policy directions will be issued by the Ministry of Coal and will be implemented by CIL/SCCL
The auction of coal linkages is transparent, and creates a level playing field. It ensures that all market participants have a fair chance to secure the coal linkage, irrespective of their size. It attempts to ensure an optimal allocation of coal across user industries and geographies.
Background:
Hon'ble Supreme Court of India vide its judgements in August and September, 2014, had declared 204 coal mines/blocks allocated since 1993 as illegal on the grounds that the procedure followed was arbitrary, Pursuant to this judgment, e-auction of Schedule II and Schedule III Coal Mines was conducted. The same philosophy of non-discretionary allocation could be extended for the coal linkages as well. This would require CIL to allocate linkages through a market-based mechanism.
An Inter-Ministerial Committee (IMC) was constituted in the Ministry of Coal in January, 2015 to consider and examine various structures and implementation models for implementing the competitive bidding for .auction of coal linkages/LoAs and to  recommend the optimal structure that would meet the requirement of all the stakeholders. The IMC met 7 times since its constitution. It was decided in the 5th meeting of IMC that auction of linkages for non-regulated sector should be taken up first. An Approach Paper regarding proposed methodology was discussed in the 5m meeting of the IMC and was uploaded on the website of Ministry of Coal (MoC) for inviting comments of the general public and stakeholders.
The responses received from various. stakeholders and individuals, besides comments from Ministry of Railways, Ministry of Steel and Department of Fertilizers were placed before IMC for consideration. Further, stakeholder industry associations presented their views and comments before the 6tn meeting of IMC on 21s August, 2015. The issue was also deliberated by the Committee of Secretaries (CoS) in its meeting held on 09.10.2015.
Coal linkages to various sectors are governed by New Coal Distribution Policy (NCDP) issued by the Ministry of Coal on 18.10.2007. Under the NCDP, a new system of issuance of LoA)was introduced for Power, Cement and Sponge Iron sectors. Under this system, requests for Linkage/LoA are forwarded to the Administrative Ministries for their recommendation. Recommendations are placed before Standing Linkage Committee (SLC/LT) which authorizes issue of LoA, However, no new linkages or LoAs have been allocated to non-regulated sector since 2007.

No comments

Powered by Blogger.