Union Cabinet to amend Housing Bank Act

Union Cabinet to amend Housing Bank Act
PRESS TRUST OF INDIA

New Delhi, Dec 21: In a major decision to develop secondary mortgage markets, the Cabinet tonight decided to amend the 1997 National Housing Bank Act to regulate the activities of housing finance companies.

The Cabinet also decided to pursue the major port trust amendment bill to enable Indian ports to set up joint ventures (JVs) for expansion of this crucial infrastructure in the country. The Bill is already pending in the Rajya Sabha since last year.

The Cabinet which met for over an hour cleared a $11 million project of the Shipping Corporation of India (SCI) for a JV with Japanese Mitsui O S K Lines at Cayman Islands for transportation of liquefied natural gas (LNG) for Enron's Dabhol power company in Maharashtra.

The Atlantic commercial company, an affiliate of Enron will also be JV partner. With this, SCI will become the first Indian company to venture into LNG transportation business. The amendment to the NHB Act will authorise housing finance companies to recover their dues by speediermeans.

The Cabinet decided to repeal three acts which it observed had become irrelevant and dysfunctional. They are the 1974 companies (temporary restriction on dividends) Act, 1948 Indian Power Alcohol Act and 1918 Indian Companies (foreign interest) Act.