Companies & Sectors
Government to convert Richardson & Cruddas loan into equity
The government on Wednesday said that it will convert its loan to Central Public Sector Enterprise Richardson & Cruddas (R&C) into equity.
 
The proposal of Department of Heavy Industry for enabling R&C to come out of the purview of the Board for Industrial and Financial Reconstruction (BIFR) was approved by the Union Cabinet.
 
"For this purpose cabinet approved the conversion into equity of the Government of India loan of Rs101.78 crore given to the company, alongwith the interest amounting to Rs424.81 crore accrued on this loan," an official statement by the Union Cabinet said.
 
"The cabinet further approved in principle, the strategic disinvestment of Nagpur and Chennai units of the company and shifting of operations from Mumbai land to other locations of company."
 
The cabinet statement elaborated that the company's land at Mumbai will be converted from lease hold to "Occupation Class II" so as to enable the company to identify the best use of this piece of land for optimal utilization as per government guidelines.
 
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 decides to wind up Hindustan Diamond Company
The government on Wednesday said that it is initiating the process of winding up Hindustan Diamond Company (HDCPL).
 
The decision was taken by the Cabinet Committee on Economic Affairs (CCEA), to wind up the 50:50 joint venture company of the government of India and De Beers Centenary Mauritius (DBCML). 
 
"The winding up of HDCPL is not likely to affect supply of rough diamonds to Indian diamantaires as Indian diamond industry has grown in these years and several Indian players are sightholders with top diamond producers now," an official statement from the CCEA said.
 
"Also, with the objective to facilitate the constant supply of rough diamonds and to make India an International Diamond Trading Hub, the government has created a Special Notified Zone (SNZ) at Bharat Diamond Bourse, Mumbai, in 2015."
 
The CCEA statement elaborated that at present, viewing operations are being carried out in the SNZ at Mumbai -- wherein Foreign Mining Companies (FMCs) only display their rough diamond lots to the Indian manufacturers and then take these back.
 
"Thereafter, the sales are carried through e-auction from offices situated in other countries to Indian manufacturers. This facility has enabled even smaller Indian players to have direct access of supply of rough diamonds," the statement said.
 
The company was incorporated in 1978 under the Companies Act, 1956. 
 
The company was formed to supply rough diamonds to processing industry in India, particularly to small and medium diamond jewellery exporters.
 
The small and medium diamond jewellery exporters had no direct access to rough diamonds from Diamond Trading Company (DTC), London -- the marketing arm of De Beers, which held a very large chunk of the world's rough diamonds market. 
 
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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Highlights of budget-related decisions of India's Cabinet
The following are the highlights and implications of the three budget-related decisions taken by the Union Cabinet at a meeting presided over by Prime Minister Narendra Modi on Wednesday:
 
Merger of Railway Budget with the General Budget:
 
- Distinct identity of Indian Railways will continue as a departmentally-run commercial unit
 
- Functional autonomy and financial powers will be retained by the Railways
 
- Railways will continue to meet their revenue expenditure from revenue receipts
 
- Railways will no longer pay dividend to the government totalling Rs 9,700 crore
 
- The merged budget will help present a holistic picture of government's financial position
 
- It will cut legislative and procedural requirements.
 
Advancement of the Budget presentation:
 
- Advancement of budget will help complete related legislative business before March 31
 
- It will enable better planning and execution of schemes from the beginning of a fiscal year
 
- This will preclude the need for vote on account by the Lok Sabha
 
- It will enable the implementation of legislative changes in tax laws from the beginning of a fiscal
 
Merger of plan and non-plan classification of budget:
 
- Earmarking of funds for the Sscheudled Castes, the Scheduled Tribes and related subjects will continue
 
- Plan and non-plan expenditure distinction had led to fragmented view of resource allocation to various schemes
 
- It was becoming increasingly difficult to ascertain the cost of delivering a service and to link outlays with outcomes.
 
- The focus on plan expenditure had led to a neglect of expenditures on maintenance of assets and for providing essential social services.
 
- The merger is expected to provide corporate-style budgetary framework having a focus on revenues and capital expenditure.
 
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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