Orissa cabinet approves Biju Gram Jyoti Yojana

The Orissa cabinet chaired by chief minister Naveen Patnaik on Saturday approved the state plan scheme of "Biju Gram Jyoti"(Biju rural electrification programme) and decided to provide government guarantee of Rs.6 crore to Baragarh Co-operative Sugar Mill for availing the loan of the same amount from Orissa State Co-operative Bank (OSCB).

Besides, it also put its seal of approval to the allotment of 185 acres of land to Bangalore based Sri Ravishankar Vidyamandir Trust.

Briefing the media persons after the cabinet meeting, Chief Secretary Ajit Kumar Tripathy said, the cabinet has decided to provide government guarantee to Bargarh Co-operative Sugar Mill for availing cash credit accommodation of Rs.6 crore from OSCB.

Government guarantee has been provided for enabling the sugar mill to have adequate working capital and to make payments to the farmers for their sugarcane during the forthcoming crushing season, he said.

While guarantee has been provided for a period of 1 year, it can be extended further with the approval of the state finance department, Tripathy added.

It may be noted, no government guarantee could be given without cabinet approval.

The cabinet gave its nod to the state plan scheme of Biju Gram Jyoti Yojana with an allocation of Rs.315 crore to be spent during 2007-08 and 2008-09.

While a provision of Rs.50 crore has already been made in the current year's budget, the remaining Rs.107.5 crore will be made in the supplementary budget for 2007-08.

Giving the details of the scheme guidelines, energy secretary L N Gupta said electrification of un-electrified, de-electrified villages which is feasible through grid connectivity and with population below 100 as per the 2001 census will be taken up under the scheme.

Capacity upgradation work of the distribution system will also be taken up to cope with the additional load.

He said, each block will be provided Rs.1 crore under the scheme over the next two years.

While Rs.75 lakh will be spent for village electrification the remaining Rs.25 lakh will be utilized for upgradation of the system.

Similarly, maximum Rs.5 lakh could be spent for a village with Rs.3.5 lakh being earmarked for electrification and the remaining Rs.1.5 lakh for system upgradation.

Further, drawal of electrical line up to one kilometer from existing LT line will be subsidised up to 80 percent in case of small and marginal farmers in KBK districts and 70 percent in other districts for installation of electrical pumps.

Collectors of the districts will be the nodal agency for implementation of the scheme.

Concerned collectors of the district will invite tenders and execute the scheme on a turn key basis from licenced electrical contractors of ELBO, Orissa.

Moreover, cluster approach will be adopted for it, Gupta added..

The cabinet also approved the lease of government land measuring185.98 acres in favour of Sri Ravishankar Vidyamandir Trust at concessional rate for setting up a world class multi-disciplinary university near Naraj in Cuttack district.

The trust will pay Rs.6 crore to the state government towards land premium.

The trust had earlier signed a memorandum of understanding (MoU) with the Orissa government on 12th December 2007 for setting up a world class university.

It had represented the government for allotment of land at concessional rate and the matter was referred to the cabinet.