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| Stock limit on pulses, sugar extended |
| BS Reporters / New Delhi Sep 18, 2009, 00:22 IST |
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Proposal of Japan’s help for western freight corridor gets Cabinet nod
 The Union Cabinet today extended by one year the limits on the quantity of rice, sugar, pulses and cooking oils traders can hold to prevent hoarding as the prices of essential food items are on a spiral following an erratic monsoon.
The Cabinet extended the Essential Commodities Act until September 2010 to empower state governments to impose stock limits, Information and Broadcasting Minister Ambika Soni told reporters today. The driest monsoon since 2002 has caused drought in about half the country, sparking concern about food shortages. Retail prices of sugar and pulses have more than doubled this year.
The Cabinet today also decided to extend the term of the Thirteenth Finance Commission by three months, to January 31, 2010. The commission had sought an extension as it could not complete its deliberations on account of the general elections and assembly polls, Soni said. The commission has been requested to submit its report by December 31, 2009, so that the government’s decision on their recommendations could be given effect to in the Budget 2010-11.
The commission’s recommendations will cover the period of five years from April 1, 2010 to March 31, 2015. The commission, headed by former finance secretary Vijay Kelkar, was earlier required to submit its report by October 31 this year.
Work on the Western Dedicated Freight Corridor is now expected to progress at a fast pace with the Cabinet today approving the proposal for availing Japanese Overseas Development Assistance (ODA) of Rs 17,700 crore for developing the first phase of the project between Rewari (Haryana) and Vadodara (Gujarat).
Initially, a loan for engineering services of Rs 130 crore will be provided. A nominal interest rate of 0.2 per cent will be charged on the Japanese ODA, which is a soft loan and is to be repaid in 30-40 years with a moratorium of 10 years. Soni, while briefing reporters, specified the loan had been extended subject to the condition that Japanese firms be prime contractors for the project.
The Western Corridor project, estimated to cost Rs 26,124 crore, spans Gujarat, Maharashtra and Rajasthan. It is expected to be completed by 2017 and would benefit the power, mining, agriculture, industrial and services sectors, among others.
The Cabinet also approved setting up of nine National Institutes of Technology (NITs), five of which would come up in north-eastern states to facilitate quality technical and engineering education in the region.
These national-level institutes will be set up at a cost of Rs 2,600 crore in Manipur, Mizoram, Goa, Meghalaya, Nagaland, Sikkim, Pudducherry, Uttarakhand and Delhi. Currently, India has 20 NITs.
The Cabinet has also approved amendments in the Air Services Agreement (ASA) between India and Saudi Arabia. In the modernised agreement, articles on cooperative marketing arrangements and aviation safety have been introduced. With this, each side can designate one or more of their carrier to operate agreed services between the two countries.
The Cabinet today announced productivity-linked bonus for around 1.3 million non-gazetted railway employees (excluding RPF/RPSF personnel) equivalent to 75 days of their wages for the financial year 2008-2009.
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