M A I N   N E W S

Govt to go in for rights issue in Maruti

NEW DELHI, FEB 13 — The government today decided to go in for a rights issue in Maruti Udyog Limited (MUL) in favour of Indian financial institutions to mop up additional funds as a first step towards privatisation of the country’s largest car manufacturer.

The quantum of the rights issue will be decided in consultation with Suzuki Motors of Japan and this process will be completed by September, Disinvestment Minister Arun Shourie told newspersons after a meeting of the Cabinet Committee on Disinvestment (CCD), which took the decision.

The government and Suzuki will select three bankers — one each representing them and the third on mutual consent — to decide on the value of rights issue, he said.

“The entire process will be done in a highly transparent manner”, and even the basis on which the valuation is done will be made known, he said. — UNI

Statute panel’s term extended
Tribune News Service

NEW DELHI, Feb 13 — The Union Cabinet today decided to extend the term of the National Commission to Review the Working of the Constitution up to October 31.

Other decisions taken by the Cabinet included approval for a proposal to surrender 200 acre of Defence land at Hutbay in Andaman and Nicobar Islands to the Union Territory administration and clearance for an agreement for promotion of aviation safety with the Russian Government.

The highlight of today’s Cabinet meeting was a discussion in detail about the power situation in the country and the reforms needed in the sector.

The Union Power Minister, Mr Suresh Prabhu, presented a detailed paper to the Cabinet and the discussions continued for around two hours, the Cabinet spokesman, Mr Pramod Mahajan, said.

Mr Mahajan said the imbroglio over the power tariff between Enron and the Maharashtra State Electricity Board also figured in the meeting.

The National Commission to Review the Working of the Constitution was constituted on February 22, 2000, for one year and its term was to expire on February 21, 2001. The commission consists of a Chairperson and 10 members. In addition there is a post of Secretary to the commission and 58 posts of research and other officers.

The Cabinet approved the transfer/surrender of 200 acre of Defence land being held by the Indian Navy at Hutbay, Little Andaman to the Andaman and Nicobar Administration, free of cost.

This is part of the 410 acre of land held by the Indian Navy. The surrendered land will be used by the Andaman and Nicobar Administration to resettle Nicobar tribesmen from Kar-Nicobar.

The Cabinet also approved the signing of an agreement for promotion of aviation safety with the Russian Government. The main features of the agreement is that each side will conduct technical sessions to understand standards and systems of the other side; and if the technical assessment finds that standards, systems, rules, procedures and practices are compatible then each side will agree to accept a certification of the other side on a reciprocal basis.

The agreement will harmonise the systems and standards followed by the two countries in the field of civil aviation safety.

The Cabinet will also meet tomorrow to finalise the Presidential address to the joint session of Parliament.