In yet another move to underline its commitment to reforms, the Narendra Modi government on Wednesday cleared foreign direct investment (FDI) proposals worth Rs 1,810 crore and authorised the National Highways Authority of India (NHAI) to revive 34 stuck road projects worth at least Rs 35,000 crore.
Besides, the Union Cabinet gave its approval for stake sake in Coal India and initial public offer of Cochin Shipyards. The government also approved 3% interest subsidy for exports, as they continue to decline for the 11th consecutive month in October.
"Based on the recommendations of the Foreign Investment Promotion Board (FIPB) in its meeting held on October 30, 2015, the government has approved six proposals of Foreign Direct Investment amounting to Rs 1,810.25 crore," PTI quoted a Finance Ministry statement as saying.
However, the finance minister will take a final decision on the "timing and pricing" of stake sale in Coal India. At the current market prices, the government can mop up Rs 20,000 crore from 10% stake sale in Coal India, reported The Economic Times.
So far in 2015, the government has raised a little over Rs 12,000 crore from stake sale in public sector undertakings (PSUs) against the disinvestment target of Rs 69,500 crore set for the current fiscal.
The government is expected to miss the target, as falling commodity prices are likely to hit the amount aimed at from divesting stake in mining companies.
Last month, a media report had said the Department of Disinvestment (DoD) was seeking to halve the PSU stake sale target for this fiscal to Rs 30,000 crore, as volatile stock market conditions have rendered disinvestment difficult.
The government also decided to give production subsidy of Rs 4.5/quintal to farmers on sugarcane sold by them to sugar mills.