The Cabinet has approved the setting up of a regulatory authority for coal sector. It also approved the introduction of Coal Regulatory Authority Bill, 2013, in Parliament.

The decision aimed at regulating and conserving coal resources and protecting the interest of all stakeholders, was taken at a Cabinet meeting yesterday. Briefing the media in New Delhi this morning, Finance Minister P Chidambaram said, the government will issue an Executive Order to set up the regulator, p
ending the passage of the Bill.

Replying to a question, he said, the allotment of coal blocks does not fall within the purview of the regulator.

The Finance Minister said, the Cabinet also approved a draft affidavit on the autonomy of the CBI, to be filed before the Supreme Court before the 3rd of July 2013. He said, the affidavit will be vetted by the Law Ministry before submitting it to the apex court.

Mr Chidambaram refused to disclose the details of the affidavit, saying it is a legal matter. He, however, made it clear that the proposed framework for CBI autnomy does not conflict with any provision of the law.

Other decisions approved by the Cabinet include the proposal for setting up of communication satellites, GSAT-15 and GSAT-16, construction of Colaba-Bandra-Santa Cruz Mumbai metro line and continuation of subsidised Pawan Hans helicopter services in Lakshadweep islands.

The Cabinet Committee on Economic Affairs, CCEA, has approved the Minimum Support Price (MSP) for Kharif crops of 2013-14 season. The MSP of common Paddy has been fixed at 1310 rupees per quintal and Grade-A Paddy at 1345 rupees per quintal.

The decision was taken by the CCEA yesterday. Briefing reporters in New Delhi this morning, Finance Minister P Chidambaram said this is an increase of 60 rupees per quintal for common paddy and 65 rupees per quintal for Grade-A paddy.

He said the MSP of Arhar Tur has been fixed at 4,300 rupees per qunital, for Moong 4,500 rupees per quintal and Urad at 4,300 rupees per quintal. Mr Chidambaram said the MSP of Medium Staple Cotton has been increased by 100 rupees per quintal to 3,700 rupees and the Long Staple Cottong at 4,000 rupees per quintal.

The CCEA also approved the proposal of the Health Ministry for the setting up of 10 regional laboratories, 30 state level laboratories and 120 laboratories in the medical colleges.

It also approved the setting up of multi-disciplinary health research units in 80 government medical colleges during the 12th Plan period. Mr Chidambaram said 35 units will be set up in 2013-14 and 45 in 2014-15.

Mr Chidambaram said, the CCEA cleared the proposal for 7.64 per cent stake sale in National Fertilisers Limited to make it compliant with SEBI norms. The disinvestment is expected to fetch around 125 crore rupees to the exchequer.

At present, the government holds 97.64 per cent stake in it. It also approved the continuation of the National Mission on Fodd Processing for the remaining period of the 12th plan. The CCEA also approved reimbursement of losses amounting to over 719 crore rupees to the Cotton Corporation of India for its MSP operations in the 2012-13 cotton season.

The Cabinet Committee on Economic Affairs, CCEA, has approved the hike in the prices of domestically produced natural gas from 4.2 dollars per Million Metric British Thermal Unit, MMBTU, to 8.4 dollars from the 1st of April next year.

Finance Minister told reporters in New Delhi today that the upward revision is based mainly on the recommendations of a panel headed by Prime Minister's economic advisor Dr. C Rangarajan. He said the decision has been taken to attract more investment to produce more natural gas. Mr Chidambaram pointed out that the domestic production in the public sector has become stagnant while it is on the decline in the private sector.

He said at present, the country is producing 70 per cent and importing 30 per cent of natural gas and if no efforts are made to increase the domestic production, the situation will be reverse by 2025.

He said the economic reality is that the Indian promoters are investing abroad as the domestic market is not giving reasonable returns. Mr Chidambaram said the issues raised by the Ministries of Power and Feritilizers will be addressed in due course of time.

Replying to a question, Finance Minister said at the moment, the government has fixed the output price of the gas and not the input price. He said the government will see that consumers are least affected by rise in the prices of power and fertilizers.

The CCEA also gave its nod to the private sector lender YES Bank to raise the foreign investment of 2,650 crore rupees.