सामयिक विषय: Associations & Organizations

Cabinet approves phasing out Foreign Investment Promotion Board

Cabinet approved abolishing Foreign Investment Promotion Board

Question: Which of the following is not correct about Foreign Investment Promotion Board (FIPB)?
a) It processes FDI proposals and makes recommendations for Government approval.
c) The Minister of Finance who is in-charge of FIPB would consider the recommendations of FIPB on proposals with total foreign equity inflow of and below Rs. 3000 crore.
c) The recommendations of FIPB on proposals with total foreign equity inflow of more than Rs. 3000 crore would be placed for consideration of Cabinet Committee on Economic Affairs (CCEA).
d) It advertizes Indian market in foreign countries.
Ans: (d)

  • On May 24, 2017, the Union Cabinet chaired by Prime Minister Shri Narendra Modi approved to the phasing out of Foreign Investment Promotion Board.
  • The proposal entails abolishing the FIPB and allowing administrative Ministries/Departments to process applications for FDI requiring government approval.
  • FDI applications and approval of the Government shall now be handled by the concerned Ministries/Departments in consultation with the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce.
  • DIPP will also issue the Standard Operating Procedure (SOP) for processing of applications and decision of the Government under the extant FDI policy.
  • The move will provide ease of doing business and will help in promoting the principle of Maximum Governance and Minimum Government.
  • It is notable that the Foreign Investment Promotion Board (FIPB) is an inter-ministerial body, responsible for processing of FDI proposals and making recommendations for Government approval.
  • As per the approval rules, The Finance Minister who is in-charge of FIPB considers the recommendations of FIPB on proposals with total foreign equity inflow of and below Rs. 3000 crore. Proposals of more than Rs. 3000 crore are placed for consideration of Cabinet Committee on Economic Affairs (CCEA).

Reference:
http://www.livemint.com/Politics/cbPuYRqrG4de300lL5kkWK/Govt-scraps-foreign-investment-advisory-body-FIPB-report.html
http://pib.nic.in/newsite/PrintRelease.aspx?relid=162097

Govt approves setting up of NSEBC

Approval for setting up of a National Commission for socially and Educationally Backward Classes (NSEBC)

Question: Which of the followings institution is to be set up by dissolving the National Backward Classes Commission?
(a) National Commission for Educationally Backward Class
(b) National Commission for Socially Backward Class
(c) National Commission for Socially and Educationally Backward Class
(d) National Samrasta Commission
Answer- (c)
Related facts:

  • On March 23rd , 2017, the Union Cabinet approved the establishment of National Social and Educational Backward Classes Commission (NSEBC) as a Constitutional body for socially and educationally backward classes.
  • An amendment to the Constitution by inserting an article 338B shall be made to give Constitutional status to this commission.
  • The commission shall comprise one Chairman, one Vice-Chairman and three members.
  • The cabinet has also approved the Repeal of National Commission for Backward Classes Act, 1993 and Dissolution of the Commission constituted under the Act of 1993.
  • The bill is the resultant of the demands for constitutional status for the National Commission for Backward Classes in order to allow it to hear the grievances of OBCs in the same manner that the National Commission for Scheduled Castes and National Commission for Scheduled Tribes hear complaints.
  • Bill, after passing, will confer Constitutional status to the Commission and Parliament’s approval for every inclusion into and exclusion from the Central List of Other Backward Classes shall be necessary.

Reference:
http://www.aninews.in/newsdetail-Mg/MzA1NDUz/cabinet-approves-setting-up-of-nsebc-as-constitutional-body.html
http://www.business-standard.com/article/pti-stories/govt-approves-setting-up-of-nsebc-117032300350_1.html
http://www.amarujala.com/india-news/narendra-modi-cabinet-approves-setting-up-of-nsebc-as-a-constitutional-body
http://navbharattimes.indiatimes.com/india/government-approves-setting-up-of-national-commission-for-socially-and-educationally-backward-class/articleshow/57789359.cms

ONGC to buy out GSPC's KG block stake

ONGC to buy out GSPC’s KG block stake

Question: Oil and Natural Gas Corporation has signed an agreement to buy KG block stake of Gujarat State-Petroleum-Corporation for a sum of –
(a) $1.0 billion
(b) $1.2 billion
(c) $1.5 billion
(d) $1.8 billion
Answer: (b)
Related facts:

  • On March19, 2017, Oil and Natural Gas Corporation (ONGC) signed definitive agreement to buy out stake in KG-basin natural gas block of debt ridden GSPC.
  • ONGC will buy out its entire 80% stake for $1.2 billion.
  • Board of ONGC had approved the deal on 23 February.
  • After regulatory approvals like government nod for transfer of PI (participating interest) and change of operatorship the deal will come to an end.
  • Previously GSPC had offered ONGC its 50 per cent stake in the block together with operatorship, but the state-owned firm was not interested.
  • Gujarat State-Petroleum-Corporation was incorporated in 1979.
  • ONGC will pay $995.26 million for three discoveries in the KG-OSN-2001/3 block that are under trial production.
  • A $200 million will also be paid for six other discoveries for which GSPC has been finalizing an investment plan to bring them to production.

Reference:
http://economictimes.indiatimes.com/industry/energy/oil-gas/ongc-signs-pact-to-buy-out-gspcs-kg-block-stake-for-1-2-billion/articleshow/57714475.cms
http://www.business-standard.com/article/companies/ongc-signs-pact-to-buy-out-gspc-s-kg-block-stake-for-1-2-bn-117031900086_1.html
http://www.gspcgroup.com/vision

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