The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday cleared number of proposals including sale of another 10 per cent stake in state-run Coal India and launching of an initial public offering of Cochin Shipyard Ltd.
Union ministers Piyush Goyal and Jitender Singh announced below proposals that got the government approval.
1. Cabinet approved sale of 10 per cent in Coal India Ltd
2. CCEA approved Interest Equalisation Scheme on Pre/Post Shipment Rupee Export Credit with effect from April 1, 2015 for three years
3. Government also approved 3 per cent interest subvention scheme to boost exports.
4. Okayed doubling of 189 km long Kottavalasa-Koraput railway line.
5. Authorised NHAI to pay rationalised compensation to concessionaires in case of delays in road projects not attributable to them.
6. Hiked relief to migrants from hilly areas of Jammu at par with Kashmiri Pandits. Now monetary assistance will be Rs 2500, up from Rs 400.
7. Government also decided to pay a production-linked subsidy of Rs 4.50 per quintal directly to cane farmers in the 2015-16 season to help cash-starved sugar mills clear arrears — a move that would cost the exchequer about Rs 1,147 crore.
Announcing the Cabinet decision, Coal and Power Minister Piysh Goyal said at a press briefing that government is expecting to mop up around Rs 20,000 crore from the sale of 10 per cent stake CIL.
At current market capitalisation, based on CIL stock price, 10 per cent stake sale could fetch about Rs 21,137.71 crore.
The government had earlier said that it may sell the stake in CIL in the current fiscal through a public offer. It holds 79.65 per cent in the company.
The government has budgeted to raise Rs 69,500 crore through disinvestment in the current fiscal. Of this, Rs 41,000 crore is to come from minority stake sale in PSUs and the remaining Rs 28,500 crore from strategic stake sale.