The Union Cabinet on 12 April 2012 approved Public Procurement Bill,
2012 which aims at regulating public procurement of above Rs 50 lakh and
provides fair treatment to bidders. The move is aimed at bringing
transparency in State purchases.
Public Procurement Bill, 2012 aims at regulating public
procurement by all ministries and departments of the Union government,
Central public sector enterprises (CPSEs), autonomous and statutory
bodies controlled by the Centre and other procuring entities. The Bill
also proposes absence of price negotiations, except in circumstances
that are prescribed, and for which reasons are to be recorded.
Ad-valorem Royalty on Coal
The Cabinet Committee on Economic Affairs (CCEA) on 12 April 2012
also approved an ad-valorem regime for calculating royalty for coal and
lignite. Following the approval the coffers of coal-bearing states will
get richer by over Rs 1000 crore. Currently the hybrid formula is in
place for charging royalty on coal and lignite at the rate of 14 per
cent and 6 per cent respectively.
Royalty rates on coal and lignite have not been revised since
2007. The ad-valorem regime will enable major coal producing states to
earn revenue of about Rs 6980 crore in place of Rs 5950 crore being
earned at present at existing rates. The new regime is to increase the
combined earning by more than Rs 1050 crore.
The CCEA also approved the proposed joint venture between
state-run Neyveli Lignite Corporation (NLC) and Uttar Pradesh Rajya
Vidyut Utpadan Nigam Ltd for setting up a 1980 MW thermal power plant at
Ghatampur in Kanpur district in Uttar Pradesh. The proposed power
project, which could entail investments of over Rs 10000 crore, by the
JV company is to cater to the demand of Uttar Pradesh and northern
region.
