By IANS
New Delhi : Even as the fate of the India-US nuclear deal remains uncertain, the cabinet Thursday agreed to give more financial powers to the board of directors of Nuclear Power Corporation of India Limited (NPCIL).
The enhancement of powers will enable NPCIL to incur capital expenditure, make investment towards establishing financial joint ventures and wholly owned subsidiaries in India or abroad, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh.
The enhanced powers would spur NPCIL to incur capital expenditure up to Rs.5 billion without government approval, within the overall ceiling of 15 percent of the net worth of the company in one project. The overall ceiling on all projects has been restricted to 30 percent of the net worth.
NPCIL can now also invest its surplus funds in establishing financial joint ventures and subsidiaries.
The cabinet decision is seen as a reaffirmation of the government’s vision of making nuclear energy an indispensable part of the country’s quest for energy security which will remain unaffected regardless of the fate of the nuclear deal.
The India-US nuclear deal, which aims at the resumption of global civil nuclear commerce with India, is bogged down in domestic politics with the Left allies of the Indian government fiercely opposing it.
The Indian government has yet to negotiate a safeguards pact with the International Atomic Energy Agency (IAEA) – a key step towards operationalising the deal.