Cabinet okays Rs 1,000 cr irrigation scheme, cuts ATF taxes

The Canal Lining and System Rehabilitation Programme will create irrigation potential for 300,000 hectares of farmland in five years

The state cabinet today approved 16 proposals that included implementation of Rs 1,000 crore irrigation scheme, slashing tax rate on aviation turbine fuel (ATF) and Rs 1,752 crore tree plantation plan.

The canal lining and system rehabilitation programme (CLSRP), approved by the cabinet, will create irrigation potential for 3 lakh hectares of farmland in five years at a cost of Rs 1,000 crore. The scheme will be launched this year.   

The new scheme is designed to cover 22 canal systems in 8 major projects, 19 medium projects and 214 minor irrigation projects. It was adopted as the benefit of flow irrigation could not be optimised, said J K Mohapatra, the chief secretary, after the meeting.

Initially, CLSRP would be funded from the state plan resources. The state government would explore the possibility of central assistance for the scheme under National Water Mission and Climate Change Action Plan later, he said.

Another key decision included reduction of sales tax on ATF to 5 percent from existing 20 per cent to give a fillip to the aviation sector in the state and make air transport affordable. The subsidy will be given for five years. Presently, the state gets annual revenue of Rs 27 crore from ATF.

“The decision has been taken to promote tourism and boost air connectivity to and from the state,” explained Mohapatra.

Due to poor passenger traffic and higher taxes, recently Jet Airways stopped its daily Bhubaneswar-Bangalore flight. Many other airliners are also not interested to operate their flights from Bhubaneswar citing higher taxes.

The cabinet also approved the launch of Sabuja Odisha Mission, which aims to plant 44.52 crore saplings. Out of the total plantation, 28.92 crore saplings would be planted by the forest department under various schemes while the rest 15.60 crore would be distributed among various communities.

The total outlay for the scheme is pegged at Rs 1,763.52 crore, out of which Rs 438.20 crore would be provided under the state plan of the forest and environment department and the rest Rs 1,325.32 crore would be mobilised through convergence of Finance Commission grants, CAMPA, MGNREGS and other Central schemes.

During the current fiscal, a budgetary provision of Rs 85.40 crore has been allocated to the forest and environment department, he said.

Among other proposals, the cabinet approved the amendment to the Odisha medical and health services rules, the diploma services rules. Under the new system, the recruitment of diploma engineers would be conducted by the staff selection commission (SSC). The Cabinet decided to relax the age limit for aspiring diploma engineers by allowing them three chances to appear in the test.

The cabinet okayed an amendment to the Forest Service Recruitment Act for the appointment of assistant forest conservators. Under the new amendment, two-thirds of appointment would be made through promotion while one-third would be made through direct recruitment. The proposals adopted at the meeting will be placed for the approval of the assembly during its winter session beginning on Thursday.