Establishment of six new Indian Institutes of Management

Establishment of six new Indian Institutes of Management 

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for setting up of six new Indian Institutes of Management (IIMs) in the country. 


These new IIMs will be located at Vishakhapatnam (Andhra Pradesh), Bodh Gaya (Bihar), Sirmaur (Himachal Pradesh), Nagpur (Maharashtra), Sambalpur (Odisha) and Amritsar (Punjab). These IIMs will begin functioning from assigned temporary campuses and shift to their permanent sites after construction of their campuses. It is intended that these six new IIMs will commence their first academic session from 2015-16. Each Institute will start with an intake of 140 students in the Post Graduate Programme (PGP) courses. It is expected that the annual intake will increase to reach a level of 560 students each year by the end of seven years. 

The PGP in Management would be the flagship programme of these institutions. Admission to the PGP will be through the open and competitive Common Admission Test (CAT) being conducted by the IIMs. 

The Institutes would train young graduates to undertake management responsibilities and carry out research and consultancy in the field of management and allied areas. Their programmes will provide the country, potential leaders in diverse fields of endeavour and enterprise. 

Background 

A commitment was made by the Government of India in the Budget speech of the Finance Minister in July 2014 to establish five new IIMs in Bihar, Himachal Pradesh, Maharashtra, Odisha and Punjab. In addition, the reorganization of the State of Andhra Pradesh into the two States of Andhra Pradesh and Telangana has necessitated the setting up of an IIM in Andhra Pradesh, consequent to and in pursuance of the Andhra Pradesh Re-organization Act, 2014. 

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Conversion of Solar Energy Corporation of India from Section 8 company to Section 3 company under the Companies Act, 2013 and renaming it as Renewable Energy Corporation of India 


The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval to the Solar Energy Corporation of India (SECI) to apply to the Registrar of Companies for (i) converting it into a Section 3 company under the Companies Act, 2013 (No,18 of 2013); and (ii) renaming it as the Renewable Energy Corporation of India (RECI).

The major impact of the decision will be:-

(1)          SECI will become a self-sustaining and self-generating organization.
(2)          SECI will engage itself in owning solar power plants generating and selling power and in other segments of solar sector activities, including manufacturing of solar products and materials,
(3)          SECI will become RECI after change of its name and then will take up development of all segments of renewable energy namely, geo-thermal, off-shore wind, tidal etc. apart from solar energy.

Section 8 of the Companies Act, 2013 [earlier Section 25 of the Companies, Act 1956] provides for formation of companies with charitable, objects. Under this provision, the commercial aspect of a business entity and its growth is completely prohibited. In comparison for a Section 3 company the object is not limited, and is mainly for commercial activities which will facilitate growth of the company.  It therefore, means that a Section 8 company can only engage in activities of promotion of commerce, art, science, sports, education, research, social welfare, religion, charity etc., but not commercial activity leading to trade, buying and selling etc. resulting in profit and distribution of dividend.

The Government has also decided to enlarge the scope of the activities of SECI to cover all renewable energy sources, with a view to provide a comprehensive and optimized solution for generation of renewable energy integrating various renewable energy sources. The generation profile of solar, wind and small hydro have complementarity and generating power from these sources are likely to be more uniform. This will also reduce stress on transmission and distribution networks, resulting in better grid management. Considering this aspect, the Government has allowed the change of name from "Solar Energy Corporation of India (SECI)" to "Renewable Energy Corporation of India (RECI)".

Background

After approval of the Government, the SECI was registered as a Section 25 Company under the Companies Act, 1956 (now under Section 8 of the Companies Act, 2013) on 20.09.2011. SECI has initiated various activities for setting up of solar power plants as also for the promotion and commercialization of solar energy technologies, with long term perspective of assuming the role of a solar power developer.

For the first time, SECI made a profit of about 12 crore during the last financial year and has become a networth positive PSU.  It is also expected to make a profit of around 300 crore this year.

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Transfer of 0.5 acre of land belonging to the Central Rice Research Institute, Cuttack to set-up a police station 

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for the proposal of the Indian Council of Agricultural Research to transfer 0.5 acre of land belonging to the Central Rice Research Institute (CRRI), Cuttack to the Police Department, Government of Odisha on lease basis for a period of 33 years for establishment of a police station at Cuttack. 

Background:

A police outpost has been functioning inside the campus of the CRRI, Cuttack since 1982. The Government of Odisha has notified upgradation of this police outpost to that of a police station. The proposed land, after transfer, will be used for construction, establishment and operation of the police station. The new police station will be accessible from the Cuttack-Paradeep road. Establishment of this station at Cuttack, adjacent to the CRRI, would strengthen the security of the Institute and its employees; and would also be beneficial to the people living in the area. 

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Memorandum of Cooperation for bilateral cooperation in the field of Industrial Property for capacity building, human resource development and awareness generation between India and Japan 

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for signing of a Memorandum of Cooperation (MoC) between the Department of Industrial Policy & Promotion (DIPP) and the Japan Patent Office (JPO), Ministry of Economy, Trade and Industry, Japan. The purpose of MoC is to establish a framework for bilateral cooperation in the field of Industrial Property (IP), with emphasis on capacity building, human resource development and awareness generation. The Offices will implement a biennial Action Plan comprising cooperation projects and activities principally, but not exclusively in the following areas:

• Information sharing on IP Protection Systems and Practices. 

• Cooperation in the area of examination, including utilization of the examiner-exchange program. 

• Cooperation in the scheme of the Patent Cooperation Treaty. 

• Assistance in developing IP infrastructure. 

• Capacity building in the use of IT infrastructure. 

• Information provision and awareness building for the general public. 

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Setting up of a National Memorial at the birth place of Lok Nayak Jai Prakash Narayan in Bihar 

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval to the proposal of the Ministry of Culture for setting up of a National Memorial at Lala Ka Tola, Sitab, Diara, District Chhapra (Saran) in Bihar - the birth place of Lok Nayak Jai Prakash Narayan. The Memorial will also house a virtual museum and an institute to undertake study and research on (a) democracy, (b) enhancing the role of Panchayats in nation building, (c) Gandhian thoughts, and (d) centre for Khadi and constructive work keeping in view the thoughts of Lok Nayak Jai Prakash Narayan, along with Lok Nayak Khadi Gaurav Samvardhan Kendra at the same place for making national flags by women cluster(s). 

Bharat Ratna Lok Nayak Jai Prakash Narayan’s contribution as an exemplary leader of Indian independence movement, a freedom fighter, social reformer and a visionary political leader will be commemorated through these decisions. As sentinel of Indian democracy, his contribution to redeem democracy will be remembered for long. After proclamation of National Emergency, on the mid-night of 25th June, 1975, Lok Nayak Jai Prakash Narayan was arrested and kept as a detenu at Chandigarh. 

Jai Prakash Narayan’s call for a Sampoorna Kranti (Total Revolution) for upholding and defending civil liberties at a very critical juncture in the post-independence history of India, ushered a new democratic movement for India and contributed to strengthen the roots of democracy. 

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Renewal of Long Term Agreements for Supply of iron ore to Japan and South Korea through MMTC Limited 

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to renew Long Term Agreement with Japanese and South Korean Steel Mills for supply of high grade Indian iron ore, during the three year period from April, 2015 to March, 2018. The quantities covered under the agreement will be in the range of 3.8 million tonnes to 5.5 million tonnes per year, and will be supplied primarily from the mines of the National Mineral Development Corporation (NMDC). The contract will be executed by the Metals and Minerals Trading Corporation of India Limited (MMTC) under the Department of Commerce. 

Background: 

Iron ore of higher grade have been supplied by India to Japan and South Korea under Long Term Agreements during the last four to five decades. These agreements will help continue this relationship and strengthen Indo-Japanese collaboration in several areas of mutual interest, including technology transfer, joint venture, investment, etc. The agreement will also help utilize surplus production of iron ore currently available in India. 

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Financial restructuring of Artificial Limbs Manufacturing Corporation of India (ALIMCO), Kanpur 

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for conversion of interest of Rs.39.53 crore accrued on the loan of Rs.21.82 crore provided to Artificial  Limbs  Manufacturing Corporation of India (ALIMCO), Kanpur during the years 1977-78 to 2001-02 and penal interest of Rs. 12.61 crore on this amount as on 31.03.2015 that is a total of Rs.52.14 crore {Rs.39.53 crore + 12.61 crore) into equity. Penal Interest after 31.03.2015 has been waived.

The increase in capital base support will strengthen the financial position of the corporation to fulfill the objectives for which it was established. It will ensure availability of increased working capital required for enhanced targeted business and also enable the corporation to seek loans from Financial Institutions/Banks on favorable terms. This will also enable the Ministry of Social Justice & Empowerment to release grants to the Corporation for modernization.

ALIMCO has an authorized share capital of Rs.3 crore and paid up capital of Rs. 1.965 crore as on 31st March, 2014. The Government of India had given interest bearing loans amounting to Rs. 21.82 crore to the Company from 1977-78 to 2001-02, for meeting its working capital requirements. However, interest -was not paid and continued to be shown as accrued and due in the Books of the Corporation. An interest of Rs 39.53 crore is accrued and due on these loans in addition to a penal interest of Rs. 12.61 crore on this amount as on 31st March, 2015. Subsequently, ALIMCO has fully repaid the loan amount to the Government of India by 2003-04.

Background:

ALIMCO was set up in 1972 by the Government of India under Section 25 (Not for Profit Motive) of the Companies Act, 1956. It is a fully owned Government of India undertaking working under Ministry of Social Justice & Empowerment. The Corporation has been working for the past 40 years and has manufactured and distributed various types of cost effective quality assistive devices to approximately 42 lakh Persons with Disabilities (PwDs) so far. It is currently on an average serving around two lakh PwDs every year.

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Approval of Revised Cost Estimate (RCE) of Eastern and Western Dedicated Freight Corridor Project 

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the revised cost estimate of Rs. 81,459 crore for the Eastern and Western Dedicated Freight Corridor (DFC) Project, including land costs and financing plan.

The revised cost estimate of Rs. 81,459 crore comprises of construction cost of Rs. 73,392 crore of the Eastern and Western DFC  (Eastern DFC - Rs. 26,674 crore and Western DFC- Rs. 46,178 crore).  The land acquisition cost will be Rs. 8,067 crore. This excludes the cost of the 534 kms Sonnagar- Dankuni section proposed to be implemented through the Public Private Partnership (PPP) route. 

Out of the total requirement of Rs. 81,459 crore for the Eastern and Western DFC project, Rs. 76,143 crore funding will be required during project construction, as interest during construction of Rs. 5,316 crore for the Western DFC  would need to be paid by the Ministry of Railways to the Ministry of Finance, after the moratorium period of 10 years. Rs. 52,347 crore would flow from debt from JICA and World Bank. Equity requirement from the Ministry of Railways (including land) for the project is Rs. 23,796 crore.

The Eastern and Western DFC passes through the States of Punjab, Haryana, Uttar Pradesh, Bihar, Jharkhand, West Bengal, Maharashtra, Gujarat and Rajasthan.

The Eastern and Western DFC project will add substantial transportation capacity, help in reducing unit cost of transportation and would provide efficient transportation services to benefit power houses, mines, ports, trade and industry and the container sector. It will benefit the environment as traffic from road will move to rail resulting in reduction in 457 million tonnes of CO2 over a 30 year period. The Eastern DFC is expected to carry 153 million tonne of traffic in 2021-22, which will increase to 251 million tonne in 2036-37. The Western DFC is expected to carry 161 million tonnes of traffic in 2021-22, which will increase to 284 million tonnes in 2036-37.



For the Eastern DFC, the commitment of World Bank loan is for US $ 2.725 billion and the loan agreement for US $ 975 million to cover the first package of 343 km from Khurja to Kanpur was signed in October 2011. For the second package of 402 km from Kanpur to Mughalsarai, the loan of US $ 1100 million was signed in December 2014. For the third package covering the 447 km Dadri-Khurja-Ludhiana section, negotiations were finalised with World Bank for a loan of US$ 650 million.

For the Western DFC, the commitment for the Japan International Cooperation Agency (JICA) loan is for 550 billion Japanese Yen and the first tranche loan agreements of 230 billion Japanese Yen for both Phase-I and Phase-II, have been signed.

Background:

The Eastern DFC is planned to be implemented in parts; EDFC-1 of 343 km, from Khurja-Kanpur; EDFC-2 of 402 km, from Kanpur-Mughalsarai; EDFC-3 of 447 km from Ludhiana-Khurja-Dadri. The 126 km, Mughalsarai-Sonnagar has already been taken up for implementation with Government funds; and the 538 km, Sonnagar-Dankuni section will be implemented through PPP. The Western DFC is planned to be implemented in two phases. Phase-1 of 963 km, from Rewari-Vadodara and Phase-2 of 557 km, from Vadodara-Jawaharlal Nehru Port Trust (JNPT) and Rewari-Dadri. The completion of the Eastern and Western DFC is targeted in phases from 2017 to 2019.

The project has achieved significant progress. Over 84 percent of land has been acquired with land compensation award of over Rs. 6,900 crore declared according to the provisions of the Railway Amendment Act, 2008. Civil construction contracts and other contracts for about 1526 km on the two corridors and 54 bridges on the Western DFC have been awarded at a total value of over Rs. 20,000 crore. Contracts are being awarded on design build lump sum basis. The systems works for signaling and electrification packages and the balance civil works are also at an advanced stage of tendering. To proceed with project implementation and enter into commitments approval of the revised cost estimates would be essential.

Earlier, the CCEA in Feb, 2008, gave approval for implementation of the Eastern and Western DFC projects and so far, expenditure of over Rs. 13,000 crore has been made.

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