Cabinet approves new overseas raw material acquisition policy

New Delhi, Oct 13 (PTI) Cabinet on Thursday approved a
new policy for acquisition of raw material assets abroad by
central PSUs with a 3-year record of profit, vesting more
powers with Maharatna and Navratna companies for such
buy-outs.
"On Thursday the Cabinet approved the policy for
acquisition of raw material assets abroad by CPSEs.
Availability of raw material is a prerequisite not only for
the growth of the manufacturing sector alone, but for the
economy as a whole," Information and Broadcasting Minister
Ambika Soni told reporters after the meet.
Heavy Industries and Public Enterprises Secretary S
Sundareshan said the new policy will pave the way for Navratna
firms to invest up to Rs 3,000 crore in such assets without
government approval, as against the present limit of Rs 1,000
crore.
For Maharatna firms, the limit is Rs 5,000 crore, he
said, adding that the policy will facilitate the acquisition
of coal, iron ore and other assets abroad.
The policy will be applicable to central public sector
enterprises (CPSEs) in the agriculture, mining, manufacturing
and electricity sectors having a three-year record of net
profits, Soni said.
"Powers delegated to the boards of Maharatna and Navratna
will be enhanced for such acquisitions," Soni said, adding
that a Coordinating Committee of Secretaries (CCoS) headed by
the Cabinet Secretary will be formed.
The CCoS will examine proposals involving investment
beyond the prescribed limits for such acquisitions by CPSEs.
The CCoS will facilitate quick and coordinated
decision-making, coordinate the grant of concessional credit
to foreign enterprises, recommend government funding and
decide about the nature of such funding on a case-to-case
basis, she added. PTI NAM
RCL