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Cabinet panel clears GAIL plan for processing unit in Gujarat

The Cabinet Committee on Economic Affairs today approved the Gas Authority of India Limited proposal for setting up a gas processisng complex at Gandhar in Gujarat to augment LPG production.

The project costing Rs 3.33 billion (including a foreign exchange component of Rs 254 million) would produce LPG and augment the domestic cooking gas supply by 14 million cylinders in a year.

The project will effect a foreign exchange saving of Rs 1.20 billion in a year by minimising the import of LPG, Information and Broadcasting Minister Pramod Mahajan said.

The CCEA also approved a proposal for renovation and modernisation of the Salal hydro-power project stage-I with an investment of Rs 614.7 million.

The project, with an installed capacity of 345 mega-watt, is located in Udhampur district of Jammu and Kashmir. The debt and equity ratio of the project will be 1:1.

He said the project is designed to generate around 2038 mega-watts unit per annum.

The CCEA also okayed a proposal to rename the scheme of assistance to voluntary organisations for programmes relating to the aged as ''Integrated Programme for Older Persons''.

The CCEA also approved an expenditure plan of Rs 788.7 million for it during the Ninth Plan.

The IPOP will disburse financial assistance to non-government organisations for promoting welfare schemes for the elderly persons.

A financial rescue package for the loss-making state-owned Pragati Tools Limited, Secunderabad, Andhra Pradesh, was also approved.

The meeting, presided by Prime Minister Atal Bihari Vajpayee, decided to provide the unit Rs 104.9 million equity support to make up its cash disbursement losses.

Besides, the tools unit would also be given Rs 99.5 million to meet its statutory obligations. Another Rs 85.5 million would be made available from the National Renewal Fund for Manpower Restructuring.

Yet another Rs 374.7 million guarantee would be extended to the unit to replace its bank guarantee obligations.

The government also announced setting up of an exclusive venture capital fund for the information technology and software sectors. The fund will seek to boost the small scale sector.

Initially, the fund will have a base of Rs 1 billion. The Small Industry Development Bank of India has been asked to float a fully-owned subsidiary trustee company to run the venture capital fund.

UNI

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