Enhancement of Investment by Bharat Petroleum Corporation Limited in Bharat Oman Refineries Limited



Enhancement of Investment by Bharat Petroleum Corporation Limited in Bharat Oman Refineries Limited
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to enhance investment by Bharat Petroleum Corporation Limited (BPCL) in Bharat Oman Refineries Limited (BORL). The investment amount could be enhanced upto a maximum of Rs.3000 crore by way of subscription of convertible warrants / other instruments giving right to convert it into equity shares to be issued by BORL, beyond DPE guidelines dated 05.08.2005.

The infusion of funds by the BPCLs will enable BORL to overcome the implications on account of the erosion of the net worth. Besides it will enhance the availability of petroleum products in the Northern and Central parts of the country, industrial development of Madhya Pradesh and substantial increase in employment and tax earnings in the State.

Background:

Bharat Petroleum Corporation Limited (BPCL) is a public sector undertaking under the Ministry of Petroleum and Natural Gas. It has promoted a joint venture company with Oman Oil Company Limited (OOCL) named Bharat Oman Refineries Limited (BORL). The BORL has commissioned the 6 MMTPA (120 Thousand Barrels Per Day) Refinery at Bina in Madhya Pradesh, in June, 2011 at a project cost of about Rs. 12,754 crore. Currently the refinery is operating at 100% of its installed capacity.

The company now proposes to undertake a debottlenecking project at the refinery to further increase the refining capacity from 6 MMTPA to 7.8 MMTPA. The estimated project cost is Rs.3,072 crore, with an overall implementation schedule of 36 months from date of receipt of environmental clearances (Zero Date). The highlights of the proposal for debottlenecking project include certain modifications to produce products in accordance to the new Auto Fuel Policy.

Hence, there is a need for immediate infusion of funds in BORL by the shareholders. OOCL while expressing their support for the project, had indicated that they are not prepared to commit further funds for the project at this stage. Therefore, BPCL Board has decided to infuse funds to the tune of Rs 3,000 Crore for funding the debottlenecking project and for meeting the extraordinary losses suffered on account of the sharp fall in the prices of crude oil and finished products.

Government has, accordingly, decided to grant approval to the proposal of BPCL to enhance its investment in BORL by an additional amount of up to Rs. 3,000 crore for completion of the de-bottlenecking project. 

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ESIC coverage in States
The Employees' State Insurance Corporation (ESIC) under its 2nd Generation Reforms ESIC-2.0 has decided to open health scheme for selected group of unorganized workers like rickshaw-puller/auto-rickshaw drivers in selected urban/metropolitan areas by 30th November, 2015.

The Central Government has approved inclusion of the self-employed workers like Auto Rickshaw Drivers etc. in the “Other Beneficiaries and members of their families medical Scheme, 2010” framed under Section 73-B of the ESI Act, 1948. The order has been issued for registration process in Delhi.

This information given by Shri Bandaru Dattatreya, Minister of State (IC) for Labour and Employment, in reply to a question in Rajya Sabha today. 

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Changes in NPS
The Government has proposed the following in the Finance Bill, 2016 with regard to the National Pension System (NPS):

i. Allowing 40 per cent of the NPS corpus tax exempt on lump sum withdrawal.

ii. Waiving service tax on the NPS corpus utilized for purchase of annuity.

iii. The amount receivable by the nominee in case of death of the subscriber covered under NPS has been made tax exempt.

iv. One-time portability without any tax implication has been allowed to the subscriber for shifting from recognized provident fund to NPS.

v. One-time portability without any tax implication has been allowed to the subscriber for shifting from superannuation fund to NPS.

As per the provisions of the Finance Bill, 2016, 40 per cent of the pension corpus under NPS is proposed to be tax exempt on lump sum withdrawal. Also, the proposal in the Union Budget, 2016-17 for taxation of 60 per cent of provident fund corpus under the Income Tax Act, 1961 has been withdrawn by the Government. Employees' Provident Fund (EPF) remains an Exempt Scheme.

However, EPF and NPS are different schemes available to separate categories of subscribers and they are not comparable on one-to-one basis.

This information given by Shri Bandaru Dattatreya, Minister of State (IC) for Labour and Employment, in reply to a question in Rajya Sabha today. 

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Monthly wages for contract workers
The Central Government has proposed to amend Rule 25(2) (iv) of the Contract Labour (Regulation & Abolition) Central Rules, 1971 to ensure minimum monthly wage of Rs. 10,000 to contract workers of the country. The proposed draft rules have been published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) vide Notification Number G.S.R. 368 (E), dated the 30th March, 2016.

The Contract Labour (Regulation & Abolition) Act, 1970 covers only those establishments and contractors that employ twenty or more workmen on any day of the preceding twelve months. The number of contract workers engaged in the Central sphere is 1903170 up to 31.03.2015. The figure in respect of contract workers working in the State sphere is not centrally maintained.

There is no proposal to bring into the ambit of the Contract Labour (Regulation & Abolition) Act, 1970 those establishments and contractors that employ less than twenty workmen.

This information given by Shri Bandaru Dattatreya, Minister of State (IC) for Labour and Employment, in reply to a question in Rajya Sabha today. 

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ESIC Coverage in States
The Employees' State Insurance Corporation (ESIC) under its 2nd Generation Reforms ESIC-2.0 has decided to open health scheme for selected group of unorganized workers like rickshaw-puller/auto-rickshaw drivers in selected urban/metropolitan areas by 30th November, 2015.

The Central Government has approved inclusion of the self-employed workers like Auto Rickshaw Drivers etc. in the “Other Beneficiaries and members of their families medical Scheme, 2010” framed under Section 73-B of the ESI Act, 1948. The order has been issued for registration process in Delhi.

This information given by Shri Bandaru Dattatreya, Minister of State (IC) for Labour and Employment, in reply to a question in Rajya Sabha today. 

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Expenditure by Welfare Boards

The State-wise details of cumulative expenditure incurred by the State Building and Other Construction Workers Welfare Boards as on 31.03.2016 is enlisted
Sl. No.
Name of the States/UTs.
Amount spent      (Rs. in Crore)
As on 31.03.2016 (Provisional)
1
Andhra Pradesh
205.46
2
Arunachal Pradesh
4.56
3
Assam
9.28
4
Bihar
71.46
5
Chhattisgarh
355.19
6
Goa
0
7
Gujarat
21.24
8
Haryana
115.87
9
Himachal Pradesh
25.4
10
J&K
154.83
11
Jharkhand
98.5
12
Karnataka
205
13
Kerala
1195.88
14
Madhya Pradesh
552.04
15
Maharashtra
213.9
16
Manipur
10.99
17
Meghalaya
0.93
18
Mizoram
20.8
19
Nagaland
3.34
20
Odisha
120.06
21
Punjab
285.75
22
Rajasthan
242.11
23
Sikkim
10.77
24
Tamil Nadu
506.78
25
Telangana
39.31
26
Tripura
8.72
27
Uttar Pradesh
346.81
28
Uttarakhand
14.09
29
West  Bengal
557.68
30
Delhi
174.71
31
A & N Island
1.17
32
Chandigarh
3.1
33
Dadra & Nagar Haveli
0
34
Daman and Diu
0.54
35
Lakshadweep
0
36
Puducherry
45.86
Total
5622.13

As regards Transport Welfare Board it is stated that the Motor Transport Workers Act, 1961 is enforced by State Governments and therefore, this Ministry does not have any information in this regard.

In respect of Beedi Workers Welfare Board it is stated that no such Board is constituted at the Central level under the Beedi Workers Welfare Fund Act, 1976.The information regarding expenditure incurred under Beedi Workers Welfare Fund constituted under the Beedi Workers’ Welfare Fund Act,1976  is furnished as under:
                              Beedi Workers Welfare Fund                                         
Year
Expenditure (Rs. In crores
2011-12
209.67
2012-13
204.26
2013-14
173.44
2014-15
181.77
  
This information given by Shri Bandaru Dattatreya, Minister of State (IC) for Labour and Employment, in reply to a question in Rajya Sabha today.

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