The Hindu : National : Cane price fixed at Rs. 81.18 a quintal

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Friday, Dec 22, 2006
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Cane price fixed at Rs. 81.18 a quintal

Special Correspondent

Old arrangement in aid to special category States to be restored

NEW DELHI: The Union Cabinet Committee on Economic Affairs on Thursday fixed the statutory minimum price for sugarcane for the 2007-08 sugar season. It will be Rs. 81.18 a quintal for a basic recovery rate of 9 per cent plus a premium of 90 paise for every 0.1 percentage point increase in the recovery above 9 p.c.

The new rate accords with the recommendations of the Commission for Agricultural Costs and Prices. It marks an increase of 93 paise a quintal over the 2006-07 season rate.

New building

The CCEA also approved the construction of a new international terminal building at Ahmedabad airport at a cost of Rs. 290 crore. The project would be undertaken in two phases. On completion, the international airport would have the capacity to handle a peak hour passenger traffic of 800 arrivals and 800 departures. The first phase is expected to be completed in 18 months.

Revival package

The CCEA cleared a Rs. 207 crore revival package for the Kolkata-based Bengal Chemicals and Pharmaceuticals Limited, a PSU which had been sick since 1993. The package includes infusion of equity of Rs. 58 crore and provision of interest-free loan of Rs. 90 crore.

It approved a Rs. 77 crore relief package for textile units affected by floods in Surat and gave its nod for revising the cost estimate for providing permanent houses in tsunami-affected areas in the Andaman and Nicobar Islands from Rs. 738 crore to Rs. 1,221 crore. The cost is being revised as the number of houses to be provided under the scheme has been increased from 8,500 to 8,955 and their plinth area has also been increased from 372 sq.ft to 450 sq.ft.

Special category States

The Union Cabinet approved a proposal to go back to the original arrangement in external assistance to special category States. They will now get it in the ratio of 90 per cent grant and 10 per cent loan. The move follows representations from these States that the present system of release of assistance on back-to-back basis, introduced on the recommendations of the 12th Finance Commission, was creating problems.

The Cabinet decided to accede to the Hague Convention on taking of evidence abroad in civil or commercial matters. The decision would simplify the procedures and ensure greater certainty about admissibility of evidence obtained before Indian courts. This will, in turn, facilitate speedier settlement.

At present, 43 countries are parties to the Convention and they include countries with substantial population of Indian diaspora and countries with which India has close trade and economic relations, such as the U.S., the U.K., Australia, Germany, Singapore, Sri Lanka and Russia.

The Cabinet cleared a proposal to set up a joint electricity regulatory commission for Union Territories excluding the national capital region of Delhi.

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