Union Cabinet gives nod to MoU between India and Sweden on Technical Cooperation in the Railway Sector
The Union Cabinet has given its ex-post facto approval to Memorandum of Understanding (MoU) between India and Sweden on Technical Cooperation in the Railway Sector. It was signed between both countries on 15th February, 2016 and it will enable technical cooperation in the following areas.
- Benchmark railways Policy of development, organization, regulations and specific characteristics for each country. Exchange of knowledge, innovation, technology, technical expertise, sustainable solutions and research.
- Other cooperation projects such as, tilting coaches/trains, freight operations in cold regions, capacity allocation (time tabling) and optimisation of maintenance and improved freight/combination traffic. Continuing education program in maintenance and reliability of rail transport system for railway engineers and managers.
Union Cabinet gives nod to Revised Policy on crude oil import for oil PSUs
The Union Cabinet has given its approval to replace the existing policy on crude oil import by Oil PSUs and vest the oil PSUs with the power to evolve their own policies. This decision will provide operational efficiency, commercial flexibility and dynamic policy for crude oil procurement for PSUs based on their commercial requirements that will eventually benefiting the consumers. However their policies will be consistent with CVC guidelines and approved by the respective Boards. It will enable Oil PSUs to adopt the most effective procurement practices for import of crude oil with the changing times and changing geo-political environment.
Union Cabinet gives nod to implementation of One Rank One Pension Scheme
The Union Cabinet has given its ex-post facto approval for implementation of One Rank One Pension (OROP) retrospectively with effect from 1st July, 2014. Decision in this regard was taken by Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi. OROP will provide ex-servicemen of same rank and same length of service uniform pension regardless of date of retirement.
Union Government has constituted Judicial Committee headed by Justice L. Narasimha Reddy, in December 2015 to give recommendations for the removal of anomalies that may arise in the implementation of OROP retrospectively with effect from 1st July, 2014. The single member committee will give its report in six months on the references made by the Government of India.
Union Cabinet approved to implement National Hydrology Project
The Union Cabinet chaired by the Prime Minister Narendra Modi 6 April 2016 gave its approval to implement of the National Hydrology Project. It will be a central sector scheme with a total outlay of 3679.7674 crore rupees. The Project includes 3640 crore rupees for National Hydrology Project (NHP) and 39.7674 crore rupees for National Water Informatics Centre (NWIC) to be taken up in two stages.
It also provides for establishment of NWIC as an independent organization under the control of Ministry of Water Resources, River Development and Ganga Rejuvenation (MoWR, RD&GR). The NHP will help in gathering Hydro-meteorological data which will be stored and analysed on a real time basis and can be seamlessly accessed by any user at the State/District/village level. The project envisages to cover whole India, where as the earlier hydrology projects covered only 13 States.
Union Cabinet approved Funding of exports to Iran through Export Development Fund of Exim Bank
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for increasing the framework agreement between Exim Bank of India and a consortium of Iranian banks lead by Central Bank of Iran for financing the purchase of goods and services from India to Rs.3000 crore from Rs. 900 crore. This will be done by utilising the Export Development Fund (EDF). The proposal provides for domiciling two contracts of export of steel rails by STC and for the Chabahar Port Development project previously approved by the Cabinet under EDF.
The proposal will promote the country’s exports with Iran. It will also deepen India’s relationship with Iran as a strategic partner.
Cabinet approves recommendations of 14th Finance Commission on fiscal deficit targets and additional fiscal deficit to States during 2015-20
The Union Cabinet chaired by the Hon’ble Prime Minister has today given its approval to Recommendations on Fiscal Deficit Targets and Additional Fiscal Deficit to States during Fourteenth Finance Commission (FFC) award period 2015-20
FFC has adopted the fiscal deficit threshold limit of 3 per cent of Gross State Domestic Product (GSDP) for the States. Further, FFC has provided a year-to-year flexibility for additional fiscal deficit to States.
For the year 2016-17, the following fiscal parameters need to be taken into account before determining states eligibility for additional borrowings of 0.5% of GSDP recommended by FFC:
a) The revenue position of the State as per Finance Account for t-2 and as available from Revised Estimates for t-1. To illustrate, for the year 2016-17, the revenue position of the State for 2014-15 (actual as per Finance Accounts) and 2015-16 (RE) would be relevant.
b) The IP/TRR ratio and Debt/GSDP ratio based on the data as contained in Finance Account for t-2. To illustrate, for determining States’ eligibility for 2016-17, the IP/TRR ratio and Debt/GSDP ratio as disclosed in Finance Account of States for 2014-15 would be relevant.
