Govt defers FDI hike in telecom, aviation

New Delhi, Feb 6: The Cabinet today deferred a decision on hiking the foreign investment limits for both telecom and civil aviation, citin...

New Delhi, Feb 6: The Cabinet today deferred a decision on hiking the foreign investment limits for both telecom and civil aviation, citing paucity of time’ as the reason for this. Sources, however, said that the reason for this was the sharp dissension from the telecom ministry, which has opposed this in writing just some days ago.

The proposal, however, is likely to be taken up again in the next Cabinet meeting.

In the event, apart from a far-reaching proposal on limiting tobacco, the Cabinet approved a whopping Rs 148 crore subsidy for carrying Haj passengers. And in order to avoid disrupting Air India’s scheduled flights, the Cabinet also approved a proposal to wet-lease aircraft from Kampuchean Airlines, to airlift 72,000 Haj pilgrims this year. While the cost of carrying each pilgrim is Rs 33,000, they pay Rs 12,000 — the rest of the cost is borne by the government. The Cabinet also approved the participation of Saudia Airlines in the scheme, allowing Hajis to travel by it, and still avail of the subsidy.

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Another proposal cleared was to allow Delhi and Pondicherry to raise finances from the capital market against the security of their consolidated fund — all states are allowed to do this, and today’s move puts Delhi and Pondicherry on the same footing.

In related developments, the Central Electricity Authority today gave the techno-economic clearance for a 210 MW thermal power plant at Raipur. The government also invited bids for selling off 57 per cent of its stake in CMC, to transfer the company to a strategic investor.

* Rs 148 cr subsidy for Haj cleared; aircraft to be wet-leased * Decision to hike foreign investment ceiling in telecom and civil aviation deferred
* Delhi/Pondicherry to be allowed to borrow from market
* Amendments to Energy Conservation Bill approved