Thursday, October 13, 2011

Policy for Acquisition of Raw Material Assets abroad by Central Public Sector Enterprises (CPSEs) approved


The Cabinet today approved the policy for acquisition of raw material assets abroad by Central Public Sector Enterprises (CPSEs).

The main features of the policy are as under:


  • The following will be applicable to CPSEs in Agriculture, Mining, Manufacturing and Electricity                                           sectors having a three year record of making net profits.
  • Powers delegated to the boards of Maharatna and Navratna proposed will be enhanced and enhanced powers available only for acquisition of raw material assets abroad.
  • Coordinating Committee of Secretaries (CCoS) headed by the Cabinet Secretary proposed to be constituted. Proposals (i) where the administrative Ministry/CPSE requests for a coordinated view and (ii) involve Government funds to be put up before the CCoS.
  • CCoS will facilitate quick and coordinated decision making, coordinate grant of concessional credit to foreign enterprise/Government, recommend Government funding and decide about the nature of the Government funding on case to case basis. The CCoS to be serviced by the Department of Public Enterprises (DPE).
  • CPSE/Ministry will  submit  proposals to the DPE which will convene a meeting of the CCoS. The CPSE/Ministry to nominate a nodal officer. Recommendations of CCoS will be placed before CCEA by the DPE.
  • Existing Empowered Committee of Secretaries (ECS) mechanisms shall continue to function. Ministries presently not having ECS proposed will  be authorized to have an appropriate ECS mechanism.
  • The Ministry of External Affairs and its Missions abroad will be associated right from the beginning of the process.
  • The Government to, in due course, will consider constituting a dedicated, Sovereign Wealth Fund.
source:pib.nic.in   category:business

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