Cabinet approves SAFTA, offers concessions to LDCs in the region

Moreover, all member countries have finalised sensitive lists that protect vulnerable domestic producers. The tariff reduction mandated under SAFTA will not apply on items on countries’ respective sensitive lists. India, for instance, has kept 884 tariff lines in its sensitive list for non-LDCs and 763 items inthe list for LDCs. India’s sensitive list mainly includes agricultural goods, textiles, chemicals, leather and goods reserved for small scale industries.

Since Bangladesh was unhappy with India’s sensitive list on garments, that included 185 of 234 products, the Cabinet has decided to give them limited market access for 6 million pieces, provided the fabric is sourced from India or Bangladesh. In addition, market access would also be provided for 2 million pieces, irrespective of the source of fabrics’ origin.

CCEA okays financial overhaul of Braithwaite

Newdelhi : The Cabinet Committee on Economic Affairs on Thursday approved the financial restructuring of West Bengal-based public sector enterprise Braithwaite & Company, on the basis of recommendations of the Board for Reconstruction of Public Sector Enterprises.

Announcing the decision, Finance Minister P. Chidambaram said, ‘‘The government will waive the unpaid interest (Rs 43.61) crore and convert the government loans (of Rs 69.30 crore) to the company into equity. Accumulated losses (of Rs 167.30 crore) will be written off against equity capital’’.

Braithwaite & Co, a subsidiary of Kolkata-based Bharat Bhari Udyog Nigam Ltd, has a staff strength of 564 and an annual wage bill of Rs 6 crore. The government would also extend Rs 4 crore sought by the company as margin money in the form of a grant to help Braithwaite raise working capital from the market. The financial restructuring is expected to clean the company’s balance sheet and allow it to finance its diversification plan.

Chidambaram said that the company’s production capacity of 400 units ‘‘would be increased to 1020 units in four years and then hopefully, it will turn the corner’’.

FMC to be strengthened

NEW DELHI: The Union Cabinet approved a slew of amendments to strengthen the commodity market regulator Forward Markets Commission (FMC). The amendments would lead to the setting up of a Forward Markets Appellate Tribunal on the lines of the Securities Appellate Tribunal, that hears appeals against Sebi orders.

While announcing the approval, Finance Minister P. Chidambaram noted, “The FMC is being strengthened just like SEBI was, a few years ago. The amendments will help FMC effectively regulate and develop the commodity futures markets.”

Chidambaram also commented on the possibility of merging FMC and Sebi, stating that the matter would be explored after three years. “We will review and see if there are any convergences in the operations of Sebi and FMC,” he said.