The Cabinet gave its nod to introduction of the Sovereign Gold Bonds Scheme. Briefing media after the Cabinet meeting, Finance Minister Arun Jaitley said, the Bonds will be issued with a rate of interest to be decided by Government and calculated on value at the time of investment.<br/><br/>Mr Jaitley said, the scheme will reduce demand for physical gold by shifting a part of estimated 300 tonnes per annum for investment into gold bonds.<br/><br/>The Minister said, tenor of Gold Bond could be for minimum of five to seven years to protect investors from medium term volatility in gold prices.<br/><br/>The Cabinet also approved introduction of Gold Monetization Schemes, GMS to reduce country's reliance on the import of gold and put it to productive use. <br/><br/>Cabinet also approved a proposal to give coal linkage to Barh power plant in Bihar given coal linkage to generate 1320 Mega Watt electricity. <br/><br/>Addressing media person in New Delhi Power and Coal Minister Piyush Goyal said that this linkage will not only increase power generation capacity of the plant but also save about 1500 crore rupees. <br/><br/>Mr Goyal also said of the total power output 1000 Mega Watt will be exclusively for Bihar.

The Cabinet gave its nod to introduction of the Sovereign Gold Bonds Scheme. Briefing media after the Cabinet meeting, Finance Minister Arun Jaitley said, the Bonds will be issued with a rate of interest to be decided by Government and calculated on value at the time of investment.<br/><br/>Mr Jaitley said, the scheme will reduce demand for physical gold by shifting a part of estimated 300 tonnes per annum for investment into gold bonds. <br/><br/>The Minister said, tenor of Gold Bond could be for minimum of five to seven years to protect investors from medium term volatility in gold prices.<br/><br/>The Cabinet also approved introduction of Gold Monetization Schemes, GMS to reduce country's reliance on the import of gold and put it to productive use.