The Bill aims to give legal rights to 67% of the population over a uniform quantity of 5 kg food grains at a fixed price of Re1 to Rs3 per kg
The Union Cabinet on Wednesday cleared promulgating an ordinance for Food Security Bill. The Food Security Bill, which is pending in the Parliament, aims to give legal rights to 67% of the population over a uniform quantity of 5 kg food grains at a fixed price of Re1 to Rs3 per kilogram.
On 13th June, the Cabinet had deferred the proposal amid differences on the issue.
Finance minister P Chidambaram had said that the UPA government was committed to bringing the food law as promised in the Congress manifesto for 2009 General Election.
“The Food Bill is a promise made by the UPA and the Congress party. It is one of the promises, we believe, on which the people voted the UPA back to the power. If that is the will of the people that we must have a Food Security Act in place, I think UPA will have an Act, a law in place,” he had said.
The Food Security Bill, a pet project of UPA chairperson Sonia Gandhi, was tabled in the Budget Session of Parliament but could not be taken up for discussion due to pandemonium in the Lok Sabha over various scams.
The issue attracted bids for over 4.23 crore shares, or 1.08 times, against 3.71 crore shares on offer much before the close of market hours
The government garnered Rs260 crore from stake sale in Hindustan Copper which got subscribed 1.14 times of the shares on offer today.
The issue attracted bids for over 4.23 crore shares, or 1.08 times, against 3.71 crore shares on offer much before the close of market hours, according to data from stock exchanges.
The indicative price was at Rs70 apiece, which was also the base price for the share sale.
At this price, the stake sale will fetch the exchequer Rs260 crore.
Soon after the stake sale commenced on the bourses, Hindustan Copper scrip touched a low of Rs70.55, 2.89% lower than previous close on the BSE.
After the close of market hours yesterday, a government panel had cleared the 4.01% stake sale in Hindustan Copper at a base price of Rs70 a share.
The base price was at a discount of 3.65% over the closing price of Rs72.65 apiece.
On the National Stock Exchange, the Hindustan Copper scrip hit a low of Rs70.50, down 2.56% over previous close.
Nearly nine lakh shares of HCL changed hands on both BSE and NSE in trade today.
The government holds 94.01% stake in the PSU. The stake sale would make the company compliant with the minimum 10% public holding norm of market regulator SEBI.
The sale of 4.01% stake, or over 3.71 crore share, is being undertaken through offer for sale (OFS) route.
Axis Capital, ICICI Securities, Kotak Securities, SBICAP Securities and UBS Securities India are acting as brokers for the share sale.
The government had in November last year sold 5.58% stake in Hindustan Copper through OFS route at an average price of Rs156.56 apiece.
The stake sale fetched Rs808 crore to the exchequer.
In September, 2012, the Cabinet had approved 9.5% stake sale in the company. The government had then decided to go ahead with only one tranche of the issue to get a good price from the auction.
Hindustan Copper is the second PSU to hit the market in the current fiscal. Last month, the government had raised Rs568 crore through divesting 9.33% stake in MMTC.
The government plans to raise Rs40,000 crore through disinvestment in 2013-14.
The Foreign Investment Promotion Board had approved these proposals in its meeting on 14th June, when it deferred a decision on Jet Airways’ application to make a preferential allotment of 24% of equity shares to Etihad Airways
Eight FDI proposals worth Rs1,311.54 crore, including that of Norwegian telecom firm Telenor, have been cleared by the government on the basis of FIPB approvals.
The Foreign Investment Promotion Board (FIPB) had approved these proposals in its meeting on 14th June, when it deferred a decision on Jet Airways’ application to make a preferential allotment of 24% of equity shares to Etihad Airways.
Besides, the proposal of Multi Commodity Exchange (MCX) to bring in foreign investment was rejected by the board, an official release said.
Telenor Mobile Communication AS, has been given approval to invest Rs1,000 crore to set up a JV company in telecom sector. The Norwegian firm would be investing the money to raise its stake in Telewings to 74% from the current 49%.
The other proposals which have been cleared include that of Mahle Holding India (Rs280 crore), Kolkata-based Srei Infrastructure Finance to set up White label ATMs and UK-based Aveva Solutions for setting up an LLP for software development (Rs8.39 crore).
The statement said decisions on 10 applications were deferred, while six proposals were rejected.
On the equity stake sale matter in the controversial Rs2,058 crore deal between Jet Airways and Etihad, the PMO had yesterday said the matter was still under examination. It, however, said there were no differences between ministries over the air services agreement between India and Abu Dhabi.
The FIPB, headed by Economic Affairs Secretary Arvind Mayaram, is scheduled to meet again on 5th July. There are 30 items on the meeting agenda.