GoM to take up PIO money in aviation

Aiyar rules out hike in LPG, kerosene prices.

The group of ministers (GoM) on FDI will look into the issue of people of Indian origin investing at par with the non-resident Indians in the domestic airlines sector.

"The GoM will submit its recommendations to the Cabinet," Civil Aviation Minister Praful Patel said after a Cabinet meeting today.

The GoM on FDI headed by Agriculture Minister Sharad Pawar, includes Commerce and Industry Minister Kamal Nath, Finance Minister P Chidambaram, Planning Commission Deputy Chairman Montek Singh Ahluwalia, and Patel.

The Cabinet deferred a decision on increasing the capital grant ceiling for road projects from 40 per cent to 60 per cent in the North-east and Bihar. The National Export Insurance Scheme was also not discussed.

The Cabinet approved the prevention of tax evasion and avoidance of double taxation with Saudi Arabia and Croatia. A memorandum of understanding (MoU) with Saudi Arabia on combating crime was also cleared.

The pact will cover combating terrorism and illicit trafficking in narcotic drugs and psychotropic substances and historical artefacts.

The Cabinet Committee on Economic Affairs, which also met today, approved a Central scheme called Rajiv Gandhi National Fellowship. It will provide scholarships to Scheduled Castes (SC) and Scheduled Tribe (ST) students interested in pursuing MPhil and PhD.

The scheme would cover all universities recognised by the University Grants Commission (UGC) and would be implemented by the ministry of tribal affairs, Information and Broadcasting Minister Priyaranjan Das Munshi said.

The fellowship will benefit 667 ST students in 2005-06 and 1,334 students in 2006-07, and cost Rks 8.80 crore in 2005-06 and Rs 17.60 crore in the next fiscal. To promote education among the weaker sections, the CCEA also hiked the corpus fund of Maulana Azad Education Foundation from Rs 70.01 crore to Rs 100 crore.

The CCEA also approved an amendment in the centrally sponsored scheme on technology mission for integrated development of horticulture in the Northeast and Uttaranchal.

Earlier today, Petroleum Minister Mani Shankar Aiyar denied that there was any proposal before the Cabinet to raise LPG and kerosene prices.