Caninet decisions: In an important decision, the Union Cabinet has decided to lease three major airports of the country, Jaipur, Guwahati and Thiruvananthapuram. The proposal was approved in a meeting held on Wednesday under the chairmanship of PM Modi. The government has given this approval under the Public-Private Partnership (PPP). At the same time, in another decision, the government has decided to relax the working capital limit rules to take loans from discoms.
Giving information about the decision of the cabinet, Union Minister Prakash Javadekar said that the three airports were allowed to be leased through PPP model. He told that the Airport Authority of India will use 1070 crore rupees from it to develop airports in other small cities. The other advantage of this is that passengers will be able to get good facilities. The Airport Authority of India has given in private hands for 50 years, after which these airports will be returned.
In February 2019, Adani Enterprises acquired the rights to six airports Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram and Guwahati through the PPP model following a competitive bidding process. These six airports are owned by the Airport Authority of India (AAI). On 14 February 2020, Adani signed a concession agreement with AAI for three airports Ahmedabad, Mangaluru and Lucknow.
Discoms get relaxed
The government on Wednesday approved a proposal to relax the working capital limit rule for taking loans for distribution companies under the UDAY (Ujjwal Discom Assurance Scheme) scheme. This loan is part of a plan to provide cash of Rs 90,000 crore to the distribution companies.
Union Minister Prakash Javadekar said in a press conference, “There is a problem in the power sector. There is a softening in electricity consumption. Distribution companies are unable to collect bills. In view of this, PFC (Power Finance Corporation) and REC have been allowed to give loans in excess of 25% working capital limit. This will increase the cash with the distribution companies of the states.
He said, “Working capital limit is 25 percent of last year’s income. Now, this limit has been relaxed. ”Finance Minister Nirmala Sitharaman paid Rs 90,000 crore to distribution companies struggling in May due to cash crisis and ‘lockdown’ for prevention of coronavirus under the COVID-19 relief package. Had announced to provide cash of Rs. However, some distribution companies were not eligible to avail loans under the package as they were not meeting the working capital limit norms under the UDAY scheme.