The Union Cabinet today cleared two major proposals to encourage financial reforms in the irrigation sector. It approved relaxation in the criteria for releasing central loan assistance (CLA) for Accelerated Irrigation Benefits Programme (AIBP). States which agree to undertake reforms by rationalising their water rates over a five-year period will now be given CLA on liberal terms.
General category reforming states will now be eligible for CLA in the ratio of 4:1 (Centre:State) as against the present norm of 2:1. Special category states will now be given the entire amount by the Centre as against the present ratio of 3:1.
A memorandum of understanding will be signed between the water resources ministry and the loanee state which will have to make a commitment to set irrigation water rates so as to fully cover the operation and maintenance cost within five years.
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A fast-track programme for irrigation projects, under which the Centre will provide 100 per cent loan assistance to states for works which can be completed within a one-year period, was also cleared. About 20-25 projects are expected to benefit from the programme. Rs 500 crore have been earmarked for the purpose in the current financial year. The Cabinet also gave clearance for repeal of the Banking Services Commission Act, 1984, through introduction of a Bill in the ensuing session of Parliament, said an official release.
The move will help provide greater autonomy to public sector banks by decentralising recruitment of bank officers and doing away with the setting up of a banking services commission for the purpose.
The Cabinet also approved repeal of 22 laws in various Union Territories under the Repealing Bill (2002).
These laws are no longer relevant and have to be removed from the statue book.
It also decided to set up a group of ministers to put in place a mechanism for providing comprehensive medical care to ex-servicemen and their dependents. The GoM will consist of the finance, defence, health and external affairs ministers.
In what could pave the way for extradition of Italian businessman Ottavio Quattrochhi, one of the accused in the Bofors gun deal, the Union Cabinet today approved an extradition treaty with Malaysia.
The proposed treaty would provide a legal framework for seeking extradition of fugitives, including economic offenders from Malaysia, an official spokesperson told reporters here today. A similar treaty will also be signed with Poland.
Ex-post-facto approval was also given for signing of a treaty between India and the US on mutual legal assistance in criminal matters.
The Cabinet also approved India