Cabinet okays Bill for co-operatives revamp

Release of Rs 1,700 crore for 2% subsidy on crop loans.

The Cabinet today approved introduction of the Constitution (Amendment) Bill to improve regulation and management of co-operative societies. It also approved release of Rs 1,700 crore for two per cent subsidy on crop loans to farmers in 2005-06.

The amendment will ensure timely conduct of elections and set a time-limit for suppression of a managing committee and give it uniform tenure, apart from introducing independent and professional audit.

The release of Rs 1,700 crore to public sector banks will cover interest burden of banks on principal amount up to Rs 100,000 each on crop loans availed by farmers for kharif and rabi in 2005-06.

The Cabinet Committee on Economic Affairs (CCEA) also gave its go-ahead to state-run trading firm MMTC to enter into fresh agreements with Japanese, Korean and Chinese steel mills for sale of iron ore, but reduced the annual ceiling for high-grade ore exports from the Bailadila mines in Chhattisgarh.

"The existing agreement for supply of iron ore comes to an end on March 31 and the new agreements will be for five years," Information & Broadcasting Minister Priyaranjan Dasmunsi said.

The Cabinet lowered the annual ceiling for exports from the Bailadila mines to 2.7 million tonnes of lumps as against 3 million tonnes earlier and 1.81 million tonnes of fines compared to 3.8 million tonnes per year till now.

The CCEA also approved expansion of Mahanadi Coalfields' Lakhanpur opencast coal mining project in Orissa by 15 million tonnes per annum. Tenders will be floated for outsourcing coal production, Dasmunsi said.

The CCEA also sanctioned Rs 98.74 crore to enable enhanced coal production. The government also gave nod to doubling of financial power of the finance minister and the defence minister to Rs 200 crore and Rs 100 crore, respectively.

The Cabinet's approval for expenditure of Rs 242.95 crore for quake relief to J&K would cover procurement of tents, construction materials for temporary and intermediate shelters and other such activities.