Companies & Sectors
Modi Cabinet clears four major power sector schemes
The Deen Dayal Upadhyaya Gram Jyoti Yojana and Integrated Power Development Scheme aim to strengthen sub-transmission and distribution network in urban and rural areas
 
The Union Cabinet has approved four significant decisions for the power sector — Deen Dayal Upadhyaya Gram Jyoti Yojana, Integrated Power Development Scheme, North Eastern Region Power System Improvement Project, and a framework agreement for energy cooperation among SAARC members.
 
The Integrated Power Development Scheme (IPDS) is for the urban areas and entails an investment of Rs32,612 crore. The programme requires a budgetary support of Rs25,354 crore for the entire duration. The earlier scheme, Restructured Accelerated Power Development and Reforms for 12th and 13th Plans will get subsumed in this new scheme. IPDS would help in reduction in AT&C losses, establishment of IT enabled energy accounting,  auditing system, improvement in billed energy based on metered consumption and improvement in collection efficiency. 
 
The Deen Dayal project is for the rural areas. The full scheme entails an investment of Rs43,033 crore, but for 2014-15 the Government has allocated Rs500 crore. “The programme requires budgetary support of Rs33,453 crore from the Government over the entire implementation period,” the statement said.
 
The Cabinet Committee on Economic Affairs (CCEA) has already approved the Rs39,275 crore for the scheme, which includes budgetary support of Rs35,447 crore under the earlier scheme — Rajiv Gandhi Gram Vidyutikaran Yojana. This outlay will be carried forward to the new scheme in addition to the outlay of Rs43,033 crore, the statement said.
 
According to an official statement, the North Eastern Project is to strengthen the intra-State transmission and distribution system for Rs5,111 crore, including capacity-building expenditure of Rs89 crore. The scheme is to be implemented with World Bank and Power Ministry assistance.
 
The Cabinet also approved a framework agreement among SAARC member-states during the forthcoming SAARC Summit in Kathmandu on 26-27th November.

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GMR seeks $803 million from Maldives for terminating Male airport contract
GMR has claimed $803 million or around Rs4,987 crore from Maldivian government for ‘wrongfully’ terminating its contract for Ibrahim Nasir International Airport
 
GMR Male International Airport Pvt Ltd (GMIAL), a subsidiary of GMR Infrastructure Ltd (GMR), has claimed $803 million (around Rs4,987 crore) from the Maldivian Government for ‘wrongfully’ terminating the international airport contract.
 
In a regulatory filing, GMR said, in addition to that, a plea for award of further damages for loss of reputation caused to the company as a consequence of wrongful repudiation of the concession agreement has also been made to the Arbitral Tribunal in Singapore.
 
“Following the aforesaid award, GMIAL has submitted its claim for damages amounting to $803 million (Rs4,987 crore)...The quantification of the damages is subject to expert evidence,” it said.
 
GMR had entered into a concession agreement with the Government of Maldives and Maldives Airport Company Ltd (MACL) for modernisation and operation of Ibrahim Nasir International Airport (INIA) in 2010.
 
However, differences cropped up between both the parties and the then Maldivian Government terminated the concession agreement and took over control of the airport operations of INIA.
 
The concession agreement was wrongfully repudiated by the Government of the Island nation and MACL and on 29 November 2012 arbitration proceedings were initiated by the Government and MACL themselves seeking a declaration that the concession agreement was void ab initio, GMR said.
 
The Arbitral Tribunal, by its award dated 18 June 2014, ruled that the said concession agreement was valid and binding and that Maldivian Government and MACL were jointly and “severally” liable in damages to GMIAL for the losses caused by their wrongful repudiation of the concession agreement, it further said.

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Banks asked to inform customers in advance about fall in minimum balance
RBI also asked banks to ensure that the balance in savings account does not turn into negative balance mainly due to levy of charges for non-maintenance of minimum balance
 
The Reserve Bank of India (RBI) on Thursday asked banks to inform their customers about fall in minimum balance at least a month in advance. The central bank said penal charges should be levied from customers only to the extent of shortfall in such balances.
 
“In the event of a default in maintenance of minimum balance/average minimum balance as agreed to between the bank and customer, the bank should notify the customer clearly by SMS/ email/ letter that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable,” the RBI said.
 
The RBI directed banks to ensure that penalty should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening of account.
 
The RBI asked banks to ensure that the balance in the savings account does not turn into negative balance solely because of levy of charges for non-maintenance of minimum balance.

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COMMENTS

Sreekanth Yelicherla

2 years ago

No mention about when it is going to be effective! It is effective from April 2015.

Rakesh Goyal

2 years ago

This will minimise one of the loot avenues, perpetrated by the banks on the customers. Bank do not compete but they act as monopoly under IBA. A good step by RBI, after a long time.

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