Large projects to get a CCI boost
The Cabinet Committee on Economic Affairs (CCEA) also cleared the new urea investment policy that promises to generate investments of R30,000-40,000 crore in the sector, hamstrung by gas shortage and the subsidy regime that involves control on the retail price of urea.
In what could help the government bridge the yawning budget deficit, the Cabinet also endorsed an earlier EGoM decision to reduce the reserve price for 2G spectrum auction by 30% in the four circles of Delhi, Mumbai Karnataka and Rajasthan which did not receive any bids in the auctions held last month. It also approved the reserve price for spectrum in the 900 MHz at twice the price of 1,800 MHz.
If both auctions are successful, the government can hope to raise around R27,000 crore but the amount could be lower at around R8,000 crore if the companies opt for the staggered payment route.
The new Cabinet Committee on Investment will be chaired by the Prime Minister and will fast-track the process of granting clearances to infrastructure
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