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Cabinet nod for air service pact with Australia

Special Correspondent

CCEA approves relief on coffee loan

NEW DELHI: The Union Cabinet on Saturday gave its nod for signing a revised air service agreement with Australia, which would provide both India and Australia the right to designate as many airlines as they wish to operate from each other's territory.

This was announced by Union Minister and Cabinet spokesperson Priyaranjan Dasmunsi.

Chaired by the Prime Minister, the Cabinet meeting also gave its approval for signing a memorandum of understanding with China on cooperation in agriculture. The MOU will be signed during the visit of the Chinese Agriculture Minister, Du Qinglin, from March 26 to 30. In addition, it decided to allow the public sector Shipping Corporation of India to invest 33.77 per cent of equity amounting to $20.88 million in a joint venture company (JVC) being set up in Panama for servicing the transport of additional LNG for Petronet LNG Limited's expansion project at Dahej. The JVC is being set up with Mitsui OSK Lines (33.77 per cent), Nippon Yusen Kabushiki Kaisha (21.64 per cent) and Kawasaski Kisen Kaisha (10.82 per cent).

Petronet LNG Ltd. has executed a long term LNG sale and purchase agreement with Rasgas, Qatar, for a total of 7.5 million tonnes annually of LNG for 25 years. Transport arrangement for the initial quantity of five million tonnes has already been tied up with a joint venture, in which SCI is participating along with Mitsui OSK Lines, Nippon Yusen Kabushiki Kaisha, Kawasaski Kisen Kaisha and Qatar Shipping Company. The new JVC is for the balance quantity of 2.5 million tonnes.

Mr. Dasmunsi said SCI's equity may go down to 26 per cent if Petronet LNG or its nominee exercised the option to take up to 23 per cent in the new JVC.

The CCEA also met on Saturday and gave its approval for extending the deadline for the payment of one-third interest on Special Coffee Term Loan during the moratorium from June 30, 2005, to May 31, 2006.

The deadline has been extended as the scenario in the coffee sector has been extremely unfavourable for growers over the last few years, with the small growers being the worst hit, Mr. Dasmunsi said.

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