Economy
Cabinet approves National Capital Goods Policy
The union cabinet on Wednesday approved National Capital Goods Policy aimed at increasing capital goods production from the current value of Rs.2,30,000 crore to Rs.7,50,000 crore by 2025.
 
"The policy envisages increasing exports from the current 27 percent to 40 percent of production. It will increase the share of domestic production in India's demand from 60% to 80% thus making India a net exporter of capital goods," said an official statement.
 
Also with an aim to improve technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSME, the National Capital Goods Policy envisages to raise direct and indirect employment from 8.4 to 30 million.
 
"The policy will help in realising the vision of building India as the world-class hub for capital goods. It will also play a pivotal role in overall manufacturing as the pillar of strength to the vision of 'Make in India'," said the statement.
 
The Department of Heavy Industry mooted the idea of National Capital Goods Policy to Prime Minister Narendra Modi during a 'Make in India' workshop in December 2014.
 
Likewise, the same department will meet the objectives of the approved policy in a time-bound manner, procuring the green signal for schemes according to the roadmap of policy interventions, the statement said.
 
"The aim of the policy is to create game-changing strategies for the capital goods sector. Some of the key issues addressed include availability of finance, raw material, innovation and technology, productivity, quality and environment-friendly manufacturing practices, promoting exports and creating domestic demand," the statement added.
 
Reacting to the development, FICCI president Harshavardhan Neotia said: "India has the potential to be the net exporter of capital goods as against the net importer currently. National Capital Goods Policy is definitely the need of the hour."
 
He added that the National Capital Goods Policy will propel the capital goods sector and go a long way in achieving the vision of 'Make in India'.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Government approves financial restructure of HSCL; and takeover by National Buildings Construction Corporation
The government on Wednesday approved the financial restructure package for Hindustan Steel Works Construction (HSCL).
 
The decision was taken by the union cabinet in its meeting chaired by Prime Minister Narendra Modi.
 
The cabinet also approved HSCL's takeover by National Buildings Construction Corporation (NBCC).
 
According to the cabinet, under the approved proposal, the government will write off the accumulated losses of the company, which amount to Rs.1,585 crore.
 
"After writing off of the accumulated losses, the equity and paid up capital of HSCL will become Rs.34.3 crore," the cabinet said in a statement.
 
"NBCC will infuse funds of Rs.35.7 crore as equity into HSCL. HSCL will become subsidiary of NBCC. The equity and paid-up capital of HSCL will become Rs.70 crore." 
 
The statement said the move will reduce the shareholding of the government in HSCL to 49%.
 
"NBCC and HSCL are Government of India enterprises with similar lines of business activities," the statement said.
 
"The decision will benefit in economies of scale for NBCC and would assist in better manpower utilisation."
 
The statement further said that after the takeover, HSCL will be able to execute its pending projects. 
 
"Government of India will provide one-time support of Rs.200 crore for settling term loans availed from commercial banks," the statement added.
 
"It will also bear the contingent liability of Rs.110 crore (approximately) as decided by the Supreme Court in compensation for VRS (voluntary retirement scheme) liabilities."
 
In addition, the government will also pay the outstanding interest on the bank loans for the financial year 2015-16 amounting to approximately Rs.44 crore.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Cabinet nod to loan waiver for Hindustan Fertiliser
The union cabinet on Wednesday waived off loans of more than Rs.9,079 crore accumulated by Hindustan Fertiliser Corporation Ltd. (HFCL) as part of a financial restructuring package for the state-run unit.
 
"The cabinet approved the waiver of government loan of Rs.1,916.14 crore (as on March 31, 2015) and the outstanding interest on the loan as on date (interest of Rs.7,163.35 crore as on March 31, 2015)," a chemicals and fertilisers ministry statement said here.
 
"The cabinet also approved the transfer of 56 acres of ash dyke land of HFCL's Barauni unit to the Bihar State Power Generation Company Limited to settle its dues and for faster revival of the Barauni unit," it said.
 
Waiving off the outstanding amount will facilitate de-registration of HFCL from the Board for Industrial and Financial Reconstruction (BIFR) by making its net worth positive and facilitate faster revival of the Barauni unit, it added.
 
The HFCL's Barauni unit, lying defunct since January 1999, will create 400 direct and 1,200 indirect employment opportunities, as also serve as an anchor unit to the Jagdishpur-Haldia gas pipeline being laid by the Gas Authority of India, the ministry said.
 
According to the government, the GAIL pipeline is critical for the development and growth of the economy and infrastructure in eastern India.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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