NEW DELHI: The Cabinet Committee on Economic Affairs on Thursday cleared a proposal to set up a special purpose fund under the Tea Board for funding replanting and rejuvenation activities aimed at improving the age profile of tea plantations.

The scheme is expected to increase the yield, lower the cost of production and improve the quality of tea leading to higher price realisation and a better edge for Indian tea in the global market. It is also expected to generate more jobs at the rate of 22 million mandays a year.

Chaired by Prime Minister Manmohan Singh, the panel also approved budgetary support for clearing the outstanding statutory dues and salary and wages in respect of defaulting Central public sector enterprises under the Department of Heavy Industry.

The committee also gave its nod to set up an institute for rural industrialisation named after Mahatma Gandhi at Wardha as an autonomous body registered under the Societies Registration Act. It approved an expenditure of Rs. 1,761.12 crores for the institute over six years beginning this year.

It gave ex-post-facto approval for regularisation of expenditure of Rs. 11.8 crores incurred up to March 31 for revamping the Jamnalal Bajaj Central Research Institute at Wardha and periodical extension of the project management arrangement with the Indian Institute of Technology, Delhi.

The Union Cabinet also met here on Thursday and gave its approval to amend the Maternity Benefit Act for providing the Central Government the powers to revise the maternity bonus payable under the legislation from time to time.

Currently, the law provides for a ceiling of Rs. 250 on the bonus amount.

The Centre has been considering enhancing the amount to Rs. 1,000.

The Bill to amend the Act would be introduced in the Budget session of Parliament.

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