Cabinet may mull SAIL sell-off, sugarcane price tomorrow

The Cabinet is likely to consider tomorrow several key economic proposals including SAIL disinvestment, levy of import duty on power equipment and revision of central support price for sugarcane.

The Cabinet's agenda also includes consideration of changes in Forward Contract Regulation Act (FCRA) Bill to give more powers to commodity market regulator FMC by providing financial autonomy and allowing entry of institutional investors in this market.

A Mines Ministry's proposal to extend the tenure of Justice M B Shah Inquiry Commission by one year to complete the probe into illegal mining of iron and manganese ore is also the listed business.

The issue of surplus VSNL land, spread across plots in Delhi, Chennai, Kolkata and Pune, pending since 2002 when Tata Communications acquired the PSU may also be taken up. The land parcels may fetch over Rs 6,000 crore to the government.

The proposal to levy about 21% duty on imported power gear is considered a key step to protect domestic interests against low-price equipment from China.

The Cabinet Committee on Economic Affairs (CCEA) will consider increasing the fair and remunerative price to sugarcane farmers by the mills by 17% to Rs 170 per quintal in 2012-13.

The proposal on selling about 11% of government's stake in SAIL was deferred last week as Steel Minister Beni Prasad Verma was not in the city. The SAIL disinvestment is expected to garner Rs 4,000 crore for the government.

Similarly, the Cabinet had deferred the FCRA (Amendment) bill after opposition from key UPA constituent Trinamool Congress.