News Delhi: In the final cabinet meeting before the general elections, the current government has touched up on sectors which appeared to be sidelined for sometime. The best example is cabinet clearing nearly Rs 26,000 crore investments for two thermal and one hydro power projects. That is not all, large hydro project has been brought under the renewable energy fold, which is expected to give a boost to the sector.
In a view to develop the green mobility, the cabinet has also cleared the National Mission on Transformative Mobility. Overall, it appears that a lot has been announced with a shorter time span on hand. The allocation of Rs 4500 crore for the under developed and unserved airstrip is expected to infuse a renewed energy into the regional connectivity scheme (RCS) which is commonly known as Udan.
The major one is the approval of investment of Rs 25,816.1 crore for two thermal power projects and a hydro electric plant. The Cabinet Committee on Economic Affairs (CCEA) cleared a proposal for investment of Rs 10,439.09 crore for 1320MW Buxar Thermal Power Project in Bihar. The CCEA, in a meeting chaired by Prime Minister Narendra Modi, also approved an investment of Rs 11,089.42 crore for 1320 MW Khurja Super Thermal Power Plant in Bulandshahr, Uttar Pradesh and Amelia Coal Mine in Singrauli, Madhya Pradesh.
The government also approved an investment of Rs 4,287.59 crore for construction of Kiru Hydro Electric Project (624 MW) on river Chenab in Kishtwar district of Jammu and Kashmir. The recommendations of a group of ministers (GoM) relating to stressed power projects including grant of coal linkage for short-term power purchase agreements (PPAs) were presented at the meeting. Briefing reporters, Finance Minister Arun Jaitley said, the recommendations were approved including grant of coal linkage for short-term PPAs, allowing existing coal linkage to be used in case of termination of PPAs due to payment default by distribution companies and procurement of bulk power by a modal agency against pre-declared linkages.
The cabinet also gave nod to state-owned NHPC taking over debt-laden Lanco’s 500 MW Teesta hydro-electric power project in Sikkim has also been allowed to spend Rs 574.04 crore to complete balance work at the project. The cabinet also gave its approval for extension of time and scope for revival and development of unserved and underserved air strips of state governments, Airports Authority of India (AAI), civil enclaves, CPSUs, helipads and water aerodromes at the total cost of Rs 4,500 crore with the budgetary support of government of India.
To fast-track strategic sale of CPSEs, the Cabinet allowed Alternative Mechanism to decide on the timing, price and quantum of shares of a state-run company to be put on the block for outright sale. The Alternative Mechanism (AM) on strategic disinvestment consists of the Finance Minister, Minister for Road Transport and Highways and minister representing respective administrative department, to decide on the matters relating to terms and conditions of the sale.
The has approved a scheme for rebate of all state and central embedded levies for apparel and made-up textile segments, which would make shipments zero-rated, thereby boosting the country’s competitiveness in export markets. Addressing a press conference,Textiles Secretary Raghvendra Singh said the decision was needed as incentives for apparel and made-ups under the Merchandise Exports from India Scheme (MEIS) were not WTO compatible anymore.
National Mission on Transformative Mobility
A National Mission on Transformative Mobility and Battery Storage would be setup to drive clean, connected, shared and sustainable mobility initiatives in the country. It entails creation of a phased manufacturing programme (PMP) valid for five years till 2024 to support setting up of a few large scale, export competitive integrated batteries and cell manufacturing Giga plants in India. “The programme will provide a plan which will send a clear signal to the industry to make the necessary investments in capacity to localise the value chain,” an official statement said.
It said the scheme will be finalised by the National Mission on Transformative Mobility and Battery Storage, and all necessary approvals will be taken. The creation of a PMP would localise production along the entire electric vehicles value chain. The mission will have an inter-ministerial steering committee chaired by Niti Aayog CEO Amitabh Kant, the statement said. The mission will also coordinate with key stakeholders in ministries/ departments and states to integrate various initiatives to transform mobility in India.
Industry welcomes NMTM
The setting up of the National Mission on Transformative Mobility and Battery Storage will encourage local manufacturing of batteries for electric vehicles (EVs), an industry body said Thursday. Terming the Cabinet’s approval to the plan a “good move,” the Society of Manufacturers of Electric Vehicles (SMEV) also said that it would help in significantly reducing the cost of EVs. “If introduced and implemented successfully, it should make India self-reliant on the most important element of EVs and also help significantly bring down the cost of the vehicles,” said Sohinder Gill, director general, SMEV.
According to Gill, given government thrust on e-mobility, it can become a lucrative business proposition in near future.
“All it needs is a leap of faith by some business houses to quickly invest in an integrated plant to produce global quality batteries, without waiting for the threshold volumes of EVs to kick-in,” he added.
