Cabinet approves new overseas raw material acquisition policy

New Delhi, Oct 13 (ANI): The Union Cabinet today approved the policy for acquisition of raw material assets abroad by profit making Central Public Sector Enterprises (CPSEs).

Briefing reporters after the cabinet meeting, Information and Broadcasting Minister Ambika Soni said that availability of adequate quantities of raw material is a pre-requisite not only for the growth of manufacturing sector, but also for the economy as a whole.

She said that Maharatna company will have the power to acquire raw material assets worth five crore rupees and Navratna companies three crore rupees.

The acquisition of raw material abroad will also help in improving the energy security of the country. The matter requires a timely response before global raw material assets are no longer available, or are available at exorbitant prices.

It was, therefore, decided that in the long term interests of the country, a policy statement in clear terms needed to be pronounced to convey to all concerned the commitment of the Government to take all necessary measures towards acquisition of raw material assets abroad by CPSEs.

This policy emanates from the recommendations of National Manufacturing Competitive Council and wide inter-ministerial consultations. (ANI)