The Government has decided to de-regulate diesel prices. The prices of fuel will now be linked to market. As per the decision, diesel prices have been reduced by 3.37 rupees per litre in Delhi which came into effect from last midnight. The decision was taken at a Cabinet meeting in New Delhi yesterday. Briefing media, Finance Minister Arun Jaitley said the Cabinet also approved relaunching of direct benefits transfer scheme in an effective manner.
He said, beneficiaries having bank accounts under the Jan Dhan Yojana will now get subsidy on LPG directly in their accounts. Presently,the subsidy on the fuel is provided to the beneficiaries having bank accounts under Aadhaar.
The Government also approved raising natural gas price by about 33.33 per cent to 5.61 US Dollars per million metric British thermal unit from November 1. Currently the domestic gas is sold at 4.2 US Dollars per Unit. The Finance Minister said that the new formula will be effective from November 1 and rates will be revised every six months with the next revision being on 1st of April next year.
The Cabinet has approved the framework of an inter-governmental Memorandum of Understanding (MoU) for setting up an 85.21 million US Dollar joint venture firm for equipping two fully-constructed berths in Iran's Chahbahar port.
An official statement issued in New Delhi after the Cabinet meeting said the framework of the MoU would to be finalised by the Governments of India and Iran.
The Cabinet gave its nod for Ahmedabad Metro Rail Project Phase-1 covering a length of 35.96 kilometres.
The Cabinet Committee on Economic Affairs, CCEA has approved the proposal for providing one-time financial support to state-run Mahanagar Telephone Nigam Limited for meeting liabilities arising from levy of minimum alternate tax.
The CCEA also approved Fertiliser Ministry's proposal to provide 14,500-crore rupees subsidy to the cash starved fertiliser industry.
The Federation of Indian Chambers of Commerce and Industry,and Confederation of Indian Industry, have welcomed the Cabinet decision to deregulate diesel prices.
The BJP has welcomed the Centre's decision that will help reduce diesel prices and said it is the beginning of economic reforms which would bring relief to the life of the common man sufferring from price rise for the Past many years.
However, the Aam Aadmi Party slammed Government for increasing the price of natural gas and said it was unjustified and would have a cascading effect on prices in multiple sectors.
