Page 37 - NIS English 16-30 June 2022

CABINET DECISIONS

NOD TO AMEND NATIONAL BIO-FUEL POLICY,

PSU BOARDS TO SUGGEST DISINVESTMENT

Union Government is dedicated to accelerating the Prime Minister's vision of India becoming "energy
independent" by 2047. This is why, in light of the progress made in biofuels, the Union Cabinet has
decided to increase biofuel production in order to pave the way for the Make in India campaign.
Furthermore, this step will not only create more jobs but will also encourage self –reliant India
campaign. Simultaneously, the Union Cabinet has delegated authority to the Board of Directors
of Public Sector Undertakings to make recommendations on disinvestment, the winding up of
subsidiaries and joint ventures, and minority sales. With this, not only will the process of strategic
disinvestment transactions and PSU closure be open, but they will also be able to monetize their
investment by closing inefficient enterprises at the appropriate time.

n DECISION: The Union Cabinet approved the minority stake sale) or winding up of its
National Biofuel Policy-2018 with several subsidiaries or units and stakes in joint ventures,
amendments, with the main initiative being as well as delegating additional powers to an
to reach the target of 20% ethanol blending in alternative mechanism.
gasoline by 2030, in 2025-26. n IMPACT: The Government's decision
n IMPACT : The major amendments to the has given the Board of Directors of Public
National Bio-Fuel Policy that have been approved Sector Undertakings the authority to make
will increase the attractiveness and support for recommendations on disinvestment, the
the development of indigenous technologies, winding up of subsidiaries and joint ventures,
paving the way for the Make in India campaign. and minority sales.
Simultaneously, increased biofuel production n The proposal aims to give holding PSU
will help reduce reliance on petroleum imports boards more decision-making autonomy and
while also creating more jobs. A variety of to improve PSU functioning by making timely
feedstocks have been approved for use in recommendations based on their investments
biofuels. The move will boost India's self- in subsidiaries or joint ventures. This will enable
reliance and the Prime Minister's vision of India them to monetize their investments by winding
becoming "energy independent" by 2047. up such subsidiaries or units and joint ventures

n DECISION: The Union Cabinet approved the at an appropriate time. Also, due to this, it
procedure for recommending to the Boards will help public-sector enterprises take quick
of Directors of the holding and parent PSUs decisions and will get relief from unnecessary
disinvestment (strategic disinvestment and expenditure. g

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