Cabinet approves revival of defunct Fertilizer Units in Gorakhpur, Sindri and Barauni

Cabinet approves revival of defunct Fertilizer Units in Gorakhpur, Sindri and Barauni
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the revival of defunct Fertilizer Units in Gorakhpur, Sindri and Barauni. These cinlude two closed urea units of Fertilizer Corporation India Limited (FCIL) at Sindri (Jharkhand) and Gorakhpur (Uttar Pradesh) and Barauni (Bihar) unit of Hindustan Fertilizers Corporation Limited (HFCL). 

These three fertilizers units would be revived by means of Special Purpose Vehicle (SPV) of Public Sector Units (PSUs) namely, National Thermal Power Corporation (NTPC), Coal India Limited (CIL), Indian Oil Corporation Limited (IOCL) and FCIL/HFCL, through ‘nomination route’.

The setting up of new units at Sindri, Gorakhpur and Barauni will meet the growing demand of urea of Bihar, West Bengal and Jharkhand. It will also ease the pressure on railway and road infrastructure due to long distance transportation of urea from Western and Central Regions and thereby saving in Govt. subsidy on freight. It will also accelerate the economic development of the region. Apart from growth of regional economy, this unit will create opportunities for 1200 direct and 4500 indirect employments.

M/s GAIL (India) Limited has planned to lay a gas pipeline from Jagdishpur to Haldia. These units will serve as anchor customer for this pipeline and ensure its viability. Commissioning Jagdishpur-Haldia gas pipeline (JHPL) is important for development of critical infrastructure in Eastern India and will have multiplier effect on economic growth of the region.

The CCEA earlier had approved gas pooling for urea sector which will enable these units to get gas at pooled price on its revival which will make the urea units globally competitive.


These units were lying defunct since their closure during 1990-2002. Therefore, the units and other associated facilities were lying unutilized. It is important to mention here that there is no functional urea unit in the Eastern part of the country except two small units at Namrup (Assam). Earlier in 2015, Government had approved revival of these three units through ‘bidding route’. However, the bidding process could not be carried forward due to receipt of only one application each against ‘Request for Qualifications’ (RFQs) for revival of Gorakhpur and Sindri units of FCIL.

The annual consumption of urea in the country is approx. 320 LMT, out of which 245 LMT is produced indigenously and rest is imported. To enhance the production of urea indigenously, Govt. had earlier also approved the revival of Talcher (Odisha) & Ramagundam (Telangana) units of FCIL by PSUs through ‘nomination route’. 


Cabinet approves Official amendment to the Bill for change of name from “Rajendra Central Agricultural University” to “Dr. Rajendra Prasad Central Agricultural University”
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its ex-post facto approval for the Official amendment to the Rajendra Central Agricultural University Bill, 2015 for change of name from “Rajendra Central Agricultural University” to “Dr. Rajendra Prasad Central Agricultural University”.

Dr. Rajendra Prasad Central Agricultural University, Pusa is to fulfill the desired goal and achieve excellence in teaching and produce the much-needed manpower educated in agriculture and allied sciences. This would help in getting over the shortage of technical manpower and infrastructural facilities and would contribute to the development of agriculture, including animal husbandry, horticulture and fisheries in the region. The existing colleges will help familiarise the farmers with new techniques, thereby contributing to the production and productivity of agriculture in the region. 


Cabinet approves the facilities being extended to persons residing in India on Long Term Visa
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the following facilities being extended to persons from Minority communities of Afghanistan, Bangladesh and Pakistan, namely Hindus, Sikhs, Buddhists, Jains, Parsis and Christians staying on Long Term Visa  (LTV) in India.  The move is aimed at easing out the difficulties being faced by them and includes the following:-

·        Opening of bank account.
·        Permission for purchase of property for self occupation and suitable accommodation for carrying out self – employment.
·        Permission to take self employment.
·        Issue of driving licence, PAN card and Aadhar number.
·        Allowing free movement within the State /UT where they are staying.
·        Transfer of LTV papers from one State to other.
·        Waiver of penalty on non-extension of short term Visa /LTV on time.
·        Permission to apply for LTV from the place of present residence when the applicants have moved to the place without permission.

In order to facilitate such persons in acquisition of citizenship by amending Citizenship Rules 2009, the provisions will help in the following ways:-

·        The Collector / DM would be empowered to authorize an officer not below the rank of Sub Divisional Magistrate for administering the oath of allegiance to the applicant.

·        The powers would be delegated to the Collectors of the following 16 Districts in 7 States for a period of two years for registration as citizens of India. 
S. No.

Ahmedabad, Gandhinagar and Kutch
Madhya Pradesh
Bhopal and Indore
Nagpur, Mumbai, Pune and Thane
West Delhi and South Delhi
Jodhpur, Jaisalmer and Jaipur
Uttar Pradesh


The registration fees for the citizenship of India would be reduced to Rs 100 from the existing range of Rs 3000 - Rs 15000.


            Government has taken a number of steps during the last 2 years to facilitate the stay of persons belonging to minority communities of these countries.  However, persons belonging to minority communities in Afghanistan, Bangladesh and Pakistan, namely Hindus, Sikhs, Buddhists, Jains, Parsis and Christians staying in India on Long Term Visa  (LTV) continue to face difficulties with regard to several aspects of living.  The Cabinet approval will help ease out the difficulties faced by them.


Cabinet approves the Revised Cost Estimate of Punatsangchhu-II Hydroelectric Project in Bhutan
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for Revised Cost Estimate (RCE) of Rs. 7290.62 crore for the ongoing 1020 MW Punatsangchhu-II Hydroelectric Project (HEP) in Bhutan. The total cost escalation for the project, at this stage, is Rs.3512.82 crore.

The Project will provide surplus power to India and thus augment power availability in the country and would enable project works to proceed smoothly without interruption.


The bilateral agreement to execute the Punatsangchhu-II HEP was signed between India and Bhutan in April, 2010 at the approved cost of Rs. 3777.8 crore (March 2009 price level) with funding by Government of India as 30% grant and 70% loan at 10% annual interest to be paid back in thirty equated semi-annual instalments.

The factors behind cost escalation are due to inflation from March 2009 to March 2015, change in surface power house to underground power house, increase in capacity from 990 MW to 1020 MW, additional requirements due to Bhutan’s National Transmission Grid Master Plan and adverse geological condition encountered during the project. 


Cabinet approves Pradhan Mantri Kaushal Vikas Yojana 60 lakh youth to be trained afresh
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) with an outlay of Rs.12000 crore to impart skilling to one crore people over the next four years (2016-2020). PMKVY will impart fresh training to 60 lakh youths and certify skills of 40 lakh persons acquired non-formally under the Recognition of Prior Learning (RPL). The target allocation between fresh trainings and RPL will be flexible and interchangeable depending on functional and operational requirements.

The Scheme, completely aligned to the Common Norms as notified earlier, would move to a grant based model where the training and assessment cost would be directly reimbursed to training providers and assessment bodies in accordance with the Common Norms.

Financial support to trainees will be given in the form of travel allowance, boarding and lodging costs. Post placement support would be given directly to the beneficiaries through Direct Benefit Transfer (DBT). Disbursement of training cost to training partners will be linked to Aadhaar and biometrics for better transparency and targeting. Skill training would be done based on industry led standards aligned to the National Skill Qualification Framework (NSQF).

In view of the recommendations of the sub group of Chief Ministers on Skill Development regarding the need to address the unique skill requirements of different States, State Governments would be involved through a project based approach under the PMKVY 2016-20 with 25% of the total training targets, both financial and physical, being allocated under this stream of the Scheme. The financial amount/budget for achieving 25% of the total training targets of next phase of PMKVY would be directly allocated to the States.

Mobilisation, monitoring and post training placement of trainees will be done through Rozgar Melas (placement camps) and Kaushal Shivirs (mobilization camps). There will be special focus on placement of trainees with incentives/disincentives linked to placement as envisaged in the Common Norms. A project based approach for Non formal training for traditional jobs is also proposed. PMKVY will, in addition to catering to domestic skill needs, also focus on skill training aligned to international standards for overseas employment in Gulf countries, Europe and other overseas destinations. There will be scholarship for student undergoing training in high end job roles under the Scheme. 


Cabinet approves disinvestment of 15% in NBCC
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved the disinvestment of 15% paid up equity of National Buildings Construction Corporation Limited (NBCC) out of Government of India’s 90% shareholding.

It would result in estimated receipts of Rs.1,706 crore approximately to the Government. However, the actual realization amount will depend upon the market conditions and the investor interest prevailing at the time of actual disinvestment.

The disinvestment would further broadbase NBCC’s shareholding and enhance the disinvestment receipts for making them available to the Government for utilization as per Disinvestment Policy. In order to inculcate a sense of belongingness amongst the employees of NBCC, it has also been decided to allot additional shares to the eligible and willing employees at a discount of 5% to the Issue/discovered (lowest cut off) price of the OFS.


NBCC was incorporated on 5th November, 1960 as a wholly owned Government of India enterprise under the administrative control of the Ministry of Urban Development with the objective of becoming a leading company in the field of construction, engineering and project management consultancy services.

The issue and subscribed equity capital as on 31.3.2016 was Rs.120 crore. Government of India holds 90% of the equity i.e. 54,00,00,000 share. The face value of each NBCC share is Rs.2/-. The balance 10% of the equity is held by the Public.

The NBCC IPO (Initial Public Offer) was launched in March, 2012, when the GoI divested 10% paid up equity capital of NBCC out of its 100% shareholding and got the Company listed on the stock Exchanges. The GoI realised Rs.124.97 crore as proceeds towards the share sale. 


Cabinet allows M/s. ITI Limited to transfer shares to Special National Investment Fund to meet SEBI’s minimum public shareholding requirement
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved the following proposal of Department of Telecommunication regarding transfer of shares by M/s ITI Limited to Special National Investment Fund (SNIF) to meet Securities and Exchange Board of India's minimum public shareholding requirement:

a) M/s ITI Limited will be allowed to transfer the requisite number of shares from President of India to SNIF as and when Capital grant is released in the form of equity infusion to M/s ITI Limited as part of revival plan approved by Cabinet in Feb, 2014 to meet for SEBI's minimum 10% Public Shareholding requirement;

b) M/s ITI Limited will be allowed to meet SEBI's requirement of minimum 25% public shareholding by August 2017.


M/s ITI Ltd., a Public Sector Undertaking under the Ministry of Communications & IT, Department of Telecommunications (DoT) has incurred accumulated losses to the tune of Rs. 5,166 crore as on 31.03.2015.

The financial position of M/s. ITI is not very sound. CCEA in its meeting held in February, 2014 approved the proposal to provide financial assistance of Rs.4156.79 crore for revival of M/s ITI Limited.

An amount of Rs. 192 crore was provided to M/s ITI Limited during 2014-15 for meeting its CAPEX requirements for implementing revival plan. With this equity infusion, Government of India Shareholding will go beyond 90%.

In order to fulfil SEBIs requirement of minimum public shareholding for listed companies, equity stake of Government will have to be disinvested to bring its stake back to 90%. Apart from this, ITI will also be required to comply with SEBI's requirement of minimum 25% public shareholding by August 2017. However, M/s ITI Limited is currently a sick company and, therefore, may not get proper valuation if it is disinvested at this stage. It is hoped that with the implementation of revival plan, the company's position will improve and the value of the shares of the company may also increase.

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