Proposal for improved Voluntary Retirement Scheme for Central Inland Water Transport Corporation Limited employees



Proposal for improved Voluntary Retirement Scheme for Central Inland Water Transport Corporation Limited employees 


The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for an improved Voluntary Retirement Scheme (VRS) for the employees of Central Inland Water Transport Corporation Limited (CIWTC) and disinvestment of CIWTC thereafter. The VRS currently in vogue in CIWTC is under the existing Central DA 1996/ Industrial DA 1997 is not attractive to employees and therefore does not evince much interest from the existing workforce of CIWTC. 

The VRS benefit would be computed on 2006 pay scale for the employees covered under Central DA. For other category of employees, it would be based on 2007 Industrial DA linked pay scale. The improved VRS scheme would be opened for a period of three months from the date of its offer with a provision of extension by another one month. Necessary Grant-in-Aid from Government of India under Non-Plan would be given for this purpose. 

Implementation of the improved VRS package would offer a better severance package to the employees of CIWTC. This would improve the prospects of finding an investor to either take over the assets or ensure viable commercial use of assets. 
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Cabinet pays homage to victims of cowardly attacks in Assam 

The Cabinet, which met this morning under the chairmanship of Prime Minister, Shri Narendra Modi, paid homage to the victims of the cowardly attacks in Assam yesterday. The Cabinet members observed two minutes silence as a mark of respect to the victims. 
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Transfer/exchange of Airports Authority of India / Indian Air Force land to the Government of Maharashtra for the Nagpur Airport and restoration of ownership of 288.74 acres of land in possession of IAF at Nagpur Airport to AAI 

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for transfer/exchange of 278 hectares of IAF land comprising of 288.74 acres of AAI land in possession of IAF in lieu of 400 hectares of land offered by the Government of Maharashtra for the development of the Nagpur airport project and simultaneous restoration of ownership of 288.74 acres of AAI land at present in possession IAF at Nagpur Civil Airport to AAI. 

The State Government has offered 400 hectares of land in lieu of 278 hectares taking into account the cost of relocation of the existing assets of IAF. This has also been found appropriate by IAF as additional land for extension of runway etc. is required for the GAJRAJ project of IAF. The 278 hectares land in possession of IAF is located at 5 different pockets thereby restricting IAF to develop the GAJRAJ project in an integrated manner. IAF needed a single plot of land for expansion of runway and development of GAJRAJ project. At the same time, the IAF land falling in the MIHAN airport boundary is required for the development of MIHAN project. The additional land of 122 hectares has been offered by the State Government to meet the cost of existing assets of IAF which cannot be relocated. The proposed exchange of land is not only beneficial for the airport project of MIFIAN but also required for the integrated development of the GAJRAJ project of IAF and hence both the IAF and MIHAN are in a win-win situation. 
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Resolution for constitution of the Railway Convention Committee (2014) 

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for the proposal of the Ministry of Railways to move a resolution in both the Houses of Parliament for constitution of the Railway Convention Committee (2014) for making recommendations in regard to the rate of dividend payable by the Railways to the General Revenues for the years 2014-15 to 2018-19 and other ancillary matters. 
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Review of the policy on Foreign Direct Investment in Pharmaceutical Sector – carve out for medical devices 

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval to amend the existing Foreign Direct Investment (FDI) policy in the Pharmaceutical Sector to create carve out for medical devices.

 As per the extant FDI policy for pharmaceuticals sector, FDI up to 100% is permitted subject to specified conditions. While FDI for green-field projects is under automatic route, brown-field projects are placed under government route. The Policy on the pharmaceutical sector covers `medical devices` since this area is not separately covered.

 Since medical devices are part of the Drugs & Cosmetics Act, 1940 and fall under the Pharmaceutical sector, all the conditions of the FDI policy on the sector, including the condition relating to `non-compete clause`, apply on brownfield investment proposals of medical devices industry. As per National Industrial Classification (NIC) Code 2008, sector code of `Manufacture of pharmaceuticals, medicinal chemical, and botanical products` is 2100 while sector code of `Manufacture of medical and dental instruments and supplies` is 3250. Medical devices will fall under the category of `medical and dental instruments and supplies`. Therefore, drugs and pharmaceuticals and medical devices are two different industrial activities. The condition of `non-compete` was imposed so that the Indian manufacturers can continue manufacturing generic drugs and catering to the needs of the large number of people in the country and in other developing countries who cannot afford branded and patented drugs. This condition is not relevant to `medical devices` industry of the country where the country is substantially import dependent and the sector is adversely impacted because of the lack of adequate capital and required technology.

Therefore, the Cabinet approved the following proposal to amend the relevant paragraphs of the extant FDI policy as contained in the Consolidated FDI Policy Circular 2014 as follows:

         i.            FDI up to 100%, under the automatic route is permitted for manufacturing of medical devices. The abovementioned conditions will, therefore, not be applicable to greenfield as well as brownfield projects of this industry.

       ii.            Medical device means-
a. "any instrument, apparatus, appliance, implant, material or other article, whether used alone or in combination, including the software intended by its manufacturer to be used specially for human beings or animals for one or more of the specific purposes of-
(aa) diagnosis, prevention, monitoring, treatment or alleviation of any disease or disorder;
(ab) diagnosis, monitoring, treatment, alleviation of, or assistance for, any injury or handicap;
(ac) investigation, replacement or modification or support of the anatomy or of a physiological process;
(ad) supporting or sustaining life;
 (ae) disinfection of medical devices;
(af) control of conception,
and   which does not achieve its primary intended action in or on the human body or animals by any pharmacological or immunological or metabolic means, but which may be assisted in its intended function by  such means;

b. an accessory to such an instrument, apparatus, appliance, material or other article;
c. a device which is reagent, reagent product, calibrator, control material, kit, instrument, apparatus, equipment or system whether used alone or in combination thereof intended to be used for examination and providing information for medical or diagnostic purposes by means of in vitro examination of specimens derived from the human body or animals;

iii     The definition of medical device at Note (ii) above would be subject to the amendment in Drugs and Cosmetics Act.

India has achieved an eminent global position in pharma sector. However, same has not been replicated in the medical devices industry. The country has huge pool of scientists and engineers who have potential to take medical device industry to a very high level. Domestic capital market is not able to provide much needed investment in the sector. Easing of norms for medical devices industry by creating special carve out in the extant FDI policy on pharma sector will encourage FDI inflows in this area.
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Amendment for the seats in the Legislative Council for the successor State of Andhra Pradesh in Andhra Pradesh Reorganisation Act, 2014 

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for amending section 23(1) and section 23(2)(i)(a) of the Andhra Pradesh Reorganisation Act, 2014 to rectify the anomaly in allocating the number of seats in Andhra Pradesh State Legislative Council and to enhance the total number of seats to 58 as per the provisions of the Constitution. 

Since the existing strength of Andhra Pradesh Legislative Assembly is 175 and 1/3rd of its strength is constitutionally permissible, it is hence proposed to increase the strength to 58 MLCs from current strength of 50 MLCs. 
Proposal for improved Voluntary Retirement Scheme for Central Inland Water Transport Corporation Limited employees Proposal for improved Voluntary Retirement Scheme for Central Inland Water Transport Corporation Limited employees Reviewed by Ajit Kumar on 5:39 PM Rating: 5

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