Economy

Cabinet allows PSUs to buy back shares

Shishir Sinha New Delhi | Updated on March 12, 2018 Published on March 01, 2012

Also clears 5-fold rise in fines for traffic violations

Amidst intense pressure, the Cabinet has withdrawn a proposal for duty imposition on power generation equipment. The proposal was to impose 19 per cent duty on power generation equipment for projects with capacity of 1,000 MW and above.

On the other hand, the Cabinet approved buyback mechanism for public sector undertakings. Now, PSUs like any private company can buy back its shares. This new mechanism aims to help the Government in disinvestment programme.

The Government is also understood to have cleared a proposal to amend the Motor Vehicle Act to deal sternly with violators of traffic rules.

The Cabinet Committee on Infrastructure has defined infrastructure.

PTI reports: To tighten the noose around habitual traffic offenders, the Government today approved five-fold increase in fines under the Motor Vehicle Act, and substantial hike in compensation to accident victims.

Under one of the proposed amendments, the government has cleared four-fold increase in compensation to Rs 1 lakh in fatal accidents, and Rs 50,000 for grievous hurts in hit and run cases.

These changes will be incorporated in the Motor Vehicle Act through an amendment, which is likely to be introduced in forthcoming Parliament session.

“The Union Cabinet has approved the amendments to the Motor Vehicle Act for harsher punishments for offences like drunken driving and violation of traffic rules and also increased compensation in accident cases,” an official said.

He said the amendments are proposed mainly to deal with offenders who violate traffic rules repeatedly.

In case of drunken driving, the fine will range from Rs 2,000 to Rs 10,000 and imprisonment from six months to four years.

Giving details of the proposed fine on drunken driving, the official said in cases where alcohol level is 30 mg per 100 ml of blood, it would not amount to an offence.

However, if it is between 30-60 mg per 100 ml of blood, the proposed penalty would be six months of imprisonment and/or Rs 2,000 fine.

In case the alcohol level is 60-150 mg per 100 ml of blood, the penalty would be one year imprisonment and/or Rs 4,000. If the offence is repeated within three years, the penalty would go up to three years imprisonment and/or Rs 8,000.

For those who are found heavily drunk with alcohol levels of over 150 mg per 100 ml of blood, the penalty will be two years imprisonment and or Rs 5,000. Repeat offence within three year will attract a penalty of four years and fine of Rs 10,000 besides cancellation of licence.

Subsidy on P&K fertilisers cut

The Government has also approved subsidy cut on decontrolled phosphatic (P) and potassic (K) fertilisers for 2012-13.

The Cabinet Committee on Economic Affairs (CCEA) approved the Fertiliser Ministry’s proposal to reduce subsidy on P and K fertilisers under the Nutrient Based Subsidy (NBS) policy, sources said.

Due to the strengthening of the rupee and bearish global price, the Fertiliser Ministry had recommended reduction in subsidy on nitrogen (N) and potassium (K), which will be Rs 24 a kg each and Rs 21.8 a kg on phosphate (P) for the 2012-13 fiscal.

For the 2011-12 fiscal, subsidy of N, P and K has been fixed at Rs 27.15 per kg, Rs 32.33 per kg and Rs 26.76 per kg, respectively, under the Nutrient Based Subsidy (NBS) policy.

The new rates will be effective from April 1.

“The reduction in P and K fertilisers are expected to bring down its total subsidy bill by 20 per cent in the next fiscal,” a senior government official said.

The subsidy bill of P and K fertilisers alone is seen to touch Rs 52,000 crore this fiscal, the official said.

Under the NBS regime introduced from April 1, 2010, retail prices of 22 varieties of P&K fertilisers are freed.

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Published on March 01, 2012
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