New initiatives of Government to improve fiscal balance and ease of doing business

CCEA approved 10% government stake in CIL(Coal India Ltd.):
It would provide huge chunk of money which government can spend to improve the health of other PSUs.It has also lead to opposition form ‘trade unions’ across various corners of country.

Interest Equalisation Scheme:

• Under it Govt. has approved 3% interest subvention scheme for SME(Small and Medium enterprises) exporters in a move to boost exports.
• As it has been found that in recent months there was fall in exports(in terms of total value) due to declining  global oil prices. So this move will encourage SMEs to increase production leading to exports surge and more employment opportunities.

Empowering NHAI(National Highway Authority of India):

• Allowed NHAI to extend the tolling period for concessionaires(in case of project delays due to land acquisition and other relevant clearances).
• Allowing NHAI to pay compensatory annuities to concessionaires (when delay is not attributed to concessionaires)
• Both steps will increase the autonomy of NHAI and will ease the process thereby encouragement in investor’s confidence and giving every opportunity to recover their investment.

About NHAI:

• It is an autonomous agency of GOI ,responsible for development, maintenance, management and operation of National Highways in India.
• Being an statutory agency it was established through National Highway Authorities Act,1988 .
• It is a nodal agency of Ministry of Road  Transport and Highways of India.

Govt. approved new system to improve clearance process:

• In a move to expedite  NH project approvals govt. has segregated construction cost from cost of land acquisition and other pre construction activities.
• Under the new system only those projects which have construction cost more than Rs. 1000 crore will need Cabinet approval. Less than Rs. 1000 crore project can be approved at ministry level.
• Earlier NH projects need approval at various levels which often lead to delays thereby depriving people from various socio-economic welfare opportunities.