₹2,256 cr GST-CBEC linkup gets Cabinet nod
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday cleared a raft of decisions, including the ₹2,256-crore IT project, Saksham, of the Central Board of Excise and Customs (CBEC), and accorded “in-principle” approval to the strategic disinvestment in Allahabad-based Bharat Pumps and Compressors Limited.
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday cleared a raft of decisions, including the ₹2,256-crore IT project, Saksham, of the Central Board of Excise and Customs (CBEC), and accorded “in-principle” approval to the strategic disinvestment in Allahabad-based Bharat Pumps and Compressors Limited.
The CCEA, chaired by Prime Minister Narendra Modi, also approved a ₹4,777.05-crore package for the closure of state-run Hindustan Cables Ltd, and gave its nod to a consortium of IOC, Oil India, and BPCL buying stakes in two Russian oilfields for a total of $3.14 billion.
Saksham will help integrate the CBEC’s system with the GST network before the roll-out in April next year.
The government will try to ready the CBEC’s IT framework by April 1, 2017, when the GST is to be introduced, an official statement said.
“The total project cost involved is ₹2,256 crore, which will be incurred over seven years,” the statement said, adding ,the upgrade of the IT systems will be carried out while keeping the existing taxpayer services running.
The panel also approved the proposal to provide a financial assistance of ₹111.59 crore as non-plan loan to Bharat Pumps and Compressors Ltd.
With the help of the financial assistance, statutory dues such as provident fund and gratuity of retired employees will be discharged and the outstanding dues of CISF will be cleared.
“It will motivate employees and improve the performance of the company. This will put an end to further legal complications and penal action against the company,” an official statement said.
Strategic disinvestment refers to the sale of a substantial portion of government shareholding in specific central public sector enterprises (CPSEs), up to 50% or more, along with the transfer of management control.
The ₹4,777.05-crore package for the closure of Hindustan Cables Ltd will be used to pay wages, offer early retirement schemes and convert government loan into equity.
“The Union Cabinet has approved the closure of Hindustan Cables Ltd (HCL), Kolkata, as per the provisions of the Companies Act, 1956/2013, Industrial Disputes Act, 1947 and other relevant Acts,” a statement said.
According to the statement, the employees will be offered attractive VRS/VSS package at notional 2007 pay scales.
With the Cabinet’s approval, Indian Oil Corp, Oil India and a unit of Bharat Petroleum Corporation (BPCL) will buy 29.9% stake in Taas-Yuryakh oilfield in East Siberia for $1.12 billion and another 23.9% in Vankor oilfield for $2.02 billion.
The CCEA approved the consortium buying 29.9% stake in Taas-Yuryakh Neftegazodobycha LLC, which holds and operates two licences for the Sredneb-otuobinskoye oil and gas condensate field, one of the largest in East Siberia.
(With PTI inputs)