New Delhi: The cabinet committee on economic affairs (CCEA) may approve budgetary ceilings for annuity payments for public-private partnership (PPP) projects and allow the export of processed or value-added agricultural products even in the event of a restriction or ban on the export of the basic farm produce when it meets on Thursday.
PPP concessions can either be sustained by user charges to be collected by the concessionaire or through annuity payments to be made by the government in the absence of a revenue stream. Annuity payments for a project are deferred budgetary payments by a government department out of its annual budgetary allocations. As a result of the long-term commitment, the budgets of departments for several years become inflexible and hence need prior planning.
According to the proposal put before CCEA, annuity commitments for a particular grant or scheme of a department in a year should not exceed 20% of the projected annual plan outlay and 25% for the current Five-Year Plan. Also, in any given year, the annuity projects awarded should not involve a total capital expenditure exceeding the total Plan outlay of that scheme for that year. However, the proposed changes will not be applicable to the ministry of road transport and highways.
The proposal by the commerce ministry seeks to allow the export of processed products including wheat or meslin flour, cereal flours, cereal groats, meal pellets, milk products, peanut butter and value-added products of onion. Since these products constitute a minuscule portion of the overall exports, their continued export will not affect availability in the domestic market and encourage investment in the processed food sector and cold chain infrastructure in the country.
CCEA is also expected to take up a proposal to use the proceeds of stake sales in public sector units deposited in the National Investment Fund to recapitalize state-owned banks and insurance companies starting in the next fiscal year.