Funding of exports to Iran from India through the Export Development Fund of Exim Bank
Funding of exports to Iran from India through the Export Development Fund of Exim Bank
The Union
Cabinet chaired by the Prime Minister Shri Narendra Modi has given its
approval for increasing the framework agreement between Exim Bank of
India and a consortium of Iranian banks lead by Central Bank of Iran for
financing the purchase of goods and services from India to Rs.3000
crore from Rs. 900 crore. This will be done by utilising the Export
Development Fund (EDF). The proposal provides for domiciling two
contracts of export of steel rails by STC and for the Chabahar Port
Development project previously approved by the Cabinet under EDF.
The proposal will promote the country's exports with Iran. It will also deepen India's relationship with Iran as a strategic partner.
Background The Exim Bank of India and seven Iranian Banks led by Central Bank of Iran had negotiated a framework agreement in November, 2014 for financing the purchase of goods and services from India by Iranian entities to the tune of Rs.900 crore under EDF. The increase to Rs. 3000 crore will enable the Exim bank to provide Buyer's credit facility to Iran, secured via sovereign guarantee from Iran, for the export of goods and services. This will provide opportunity to Indian Companies to penetrate and enhance their footprint in Iran along with facilitating the growing trade and investment with Iran. This will also help in employment generation and development of ancillary activities in India.
The proposal will promote the country's exports with Iran. It will also deepen India's relationship with Iran as a strategic partner.
Background The Exim Bank of India and seven Iranian Banks led by Central Bank of Iran had negotiated a framework agreement in November, 2014 for financing the purchase of goods and services from India by Iranian entities to the tune of Rs.900 crore under EDF. The increase to Rs. 3000 crore will enable the Exim bank to provide Buyer's credit facility to Iran, secured via sovereign guarantee from Iran, for the export of goods and services. This will provide opportunity to Indian Companies to penetrate and enhance their footprint in Iran along with facilitating the growing trade and investment with Iran. This will also help in employment generation and development of ancillary activities in India.
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National Hydrology Project
The Union
Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval
to Implementation
of the National Hydrology Project. It will be a central sector scheme with a
total outlay of Rs. 3679.7674 crore. This includes Rs.3,640 crore for National
Hydrology Project (NHP) and Rs. 39.7674 crore for National Water Informatics
Centre (NWIC) to be taken up in two stages. It also provides for establishment
of NWIC as an independent organization under the control of Ministry of Water
Resources, River Development and Ganga Rejuvenation (MoWR, RD&GR).
The NHP will help in
gathering Hydro-meteorological data which will be stored and analysed on a real
time basis and can be seamlessly accessed by any user at the
State/District/village level. The project envisages to cover the entire
country as the earlier hydrology projects covered only 13 States.
The components
of the proposal are:
a)
In
Situ Hydromet Monitoring System and Hydromet Data Acquisition System.
b)
Setting
up of National Water Informatics Centre (NWIC).
c)
Water
Resources Operation and Management System
d)
Water
Resources Institutions and Capacity Building
The
NHP will result in the improvement of:
1. Data storage, exchange, analysis and dissemination through National Water Informatics
Centre.
2. Lead time in flood forecast from 1 day to at least 3 days
3. Mapping
of flood inundation areas for use by the disaster management
authorities
4. Assessment
of surface and ground water resources in a river basin for
better planning & allocation for PMKSY and other schemes of Govt. of India
5. Reservoir
operations through seasonal yield forecast,
drought management, SCADA systems, etc.
6. Design
of
SW & GW structures, hydropower units, interlinking of rivers, Smart Cities.
7.
Fulfilling
the objectives of Digital India.
8. People
Centric approach: The programme envisages ultimate aim
for water management through scientific data collection, dissemination of
information on water availability in all blocks of the country and establishing
of National Water Information Centre. The automated systems for Flood
Forecasting is aimed to reduce water disaster ultimately helping vulnerable
population. It is people and farmer centric programme as information on water
can help in predicting water availability and help farmers to plan their crops
and other farm related activities. Through this programme India would make a
place among nations known for scientific endeavours.
Out
of the total outlay of Rs. 3679.7674 crore, Rs.3,640 crore has been earmarked
for National Hydrology Project while Rs. 39.7674 crore has been kept aside for
NWIC. Out of the total outlay, fifty per cent of the amount that is Rs.1839.8837
crore, would be World Bank loan which would be repaid by Central Government.
The remaining 50% that is Rs. 1839.8837 crore would be Central Assistance from
the budgetary support. The entire World Bank's Loan component and Central
assistance to the States and Central Organisations shall be passed on to them
as Grants.
Elucidation on the impact of the Project:
a)
Development
of real time flood forecasting and reservoir operations in a manner that does
not result in sudden opening of gates which inundates the area down below;
b) It
will facilitate integrated water resource management by adopting river basin
approach through collation and management of hydro-meteorological data. This will
also help in water resource assessment – as surface as well as ground water,
for water resource planning, prioritize its allocations and its consumptive use
for irrigation;
c) It
will help in providing real time information on a dynamic basis to the farmers
about the ground water position for them to accordingly plan their cropping
pattern;
d) This
will also help in promoting efficient and equitable use of water particularly of
ground water at the village level;
e)
This
will also provide information on quality of water
Background
The
National Hydrology Project (NHP) is intended for setting up of a system for
timely and reliable water resources data acquisition, storage, collation and
management. It will also provide tools/systems for informed decision making
through Decision Support Systems (DSS) for water resources assessment, flood
management, reservoir operations, drought management, etc. NHP also seeks to
build capacity of the State and Central sector organisations in water resources
management through the use of Information Systems and adoption of
State-of-the-art technologies like Remote Sensing.
The
MoWR, RD&GR has adopted a paradigm shift in the management of water
resources of the country by adopting a river basin approach, In order to
efficiently use and manage water resources of the country; adequacy of data,
resource assessment, decision support systems, etc. are a prerequisite for
allocation and prioritization of this fast depleting resource.
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Revised Policy on crude oil import for oil PSUs
The Union
Cabinet chaired by the Prime Minister Shri Narendra Modi has given its
approval to replace the existing policy on crude oil import by Oil PSUs
and vest the oil PSUs with the power to evolve their own policies. This
will provide a more efficient, flexible and dynamic policy for crude
procurement, eventually benefiting the consumers.
The existing policy for import of crude oil was approved by the Cabinet in the year 1979. In 2001, the Cabinet approved some amendment to the policy. While the current policy has ensured that collective energy needs of Oil PSUs are consistently met over the years, the policy needs to evolve with the changing times. With the changing geo-political environment, the crude oil import policy needs to be modified to bring it in tune with current needs. The current market practices for purchase of crude oil on spot basis also need to be adopted to compete effectively in the market. The current policy has certain limitations and restrictions in this regard, which limit the potential sources and methods of procurement.
After the last decision of the Cabinet in 2001, the Govt. of India has delegated substantial powers to Navaratna and Maharatna companies among PSUs. Such companies are given high degree of autonomy in various operational, financial and investment matters.
The existing policy for import of crude oil was approved by the Cabinet in the year 1979. In 2001, the Cabinet approved some amendment to the policy. While the current policy has ensured that collective energy needs of Oil PSUs are consistently met over the years, the policy needs to evolve with the changing times. With the changing geo-political environment, the crude oil import policy needs to be modified to bring it in tune with current needs. The current market practices for purchase of crude oil on spot basis also need to be adopted to compete effectively in the market. The current policy has certain limitations and restrictions in this regard, which limit the potential sources and methods of procurement.
After the last decision of the Cabinet in 2001, the Govt. of India has delegated substantial powers to Navaratna and Maharatna companies among PSUs. Such companies are given high degree of autonomy in various operational, financial and investment matters.
Accordingly, the Cabinet has approved that the Oil PSUs of the Govt. of
India shall be empowered to evolve their own policies for import of
crude oil, consistent with CVC guidelines and get them approved by the
respective Boards. This measure, which is in keeping with the principle
of Minimum Government Maximum Governance, will increase the operational
and commercial flexibility of the oil companies and enable them to
adopt the most effective procurement practices for import of crude oil.
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