Cabinet mum on Mamata’s rollback

New Delhi, Oct 30: In a significant snub to firebrand ally Mamata Banerjee, the issue of a partial rollback in oil prices was not even tak...

New Delhi, Oct 30: In a significant snub to firebrand ally Mamata Banerjee, the issue of a partial rollback in oil prices was not even taken up by the union cabinet which met for the first time today following the Prime Minister’s return to office. In the event, briefing reporters after the Cabinet meeting, Mamata said that she had written another letter to the PM reminding him about her party’s demand for the rollback. `I have given suggestions. The Prime Minister’s assurance (of a rollback) is personal,’ she said.

In a move intended to boost economic confidence, the government also underscored its commitment to infrastructure spending. It cleared an ordinance for creating a dedicated fund for development and maintenance of national highways, including the PM’s cross-country highway proposal. The fund would be part of the existing Central Road Fund under which levy of additional cess on petrol and diesel is collected, Parliamentary Affairs minister Pramod Mahajan said after the Cabinet meeting. This Fund has already collected more than Rs 5000 crore, he added.Âµ The Union Cabinet also approved a separate legislation for Non-Banking Financial Companies (NBFCs). The Bill will now replace the provisions of the Reserve Bank of India (RBI) Act, 1934. The provisions of the RBI Act 1934 relate to the regulation and supervision of NBFCs and prohibition of acceptance of cheques by unincorporated bodies.The new Bill would also include some of the recommendations made by the Task Force on NBFCs, set up by the government some time back.

The new Bill will give more teeth to the government while dealing with the NBFCs. The Bill is expected to lay down stringent norms on capital adequacy ratio and deposit limit of the NBFCs. The Bill is also likely to lay down strict liability norms for the directors of the NBFCs, sources added.Âµ However, the Cabinet discussed but deferred a decision on the new Textile Policy, since some of the proposals in the policy did not get a Cabinet nod. The policy will now be discussed in the Cabinet’s next meeting on November 2.

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The government also decided to introduce a bill in the winter session of Parliament to repeal 21 obsolete acts, including one dating back to 1856. The decision to repeal these acts follows recommendations of the Commission on review of administrative laws, chaired by P C Jain, to make the statute book more brief.

The acts to be repealed include the Civil Courts Amins Act 1856, Bombay High Court (letters patent) Act 1866, Unclaimed Deposits Acts 1866, Unclaimed Deposits Acts 1870, LIC Insurance (emergency provision) Act 1956, General Insurance (emergency provisions) Act 1956 and Allianz and Stuttgarter Life Insurance Bank (Transfer) Act 1950.Âµ The repealing of the General Insurance Act and LIC Insurance Act would pave the way for the restructuring of GIC and LIC which has become imperative with the opening up of the insurance sector.Âµ No decision on oil price rollback
New legislation for non-banking finance companies
Dedicated fund for national highways
Repeal of 21 obsolete laws
Closure of sick Petrofils Cooperative Ltd

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