Maharashtra clears Rs 222 cr aid for Nandurbar tribals

Property tax on 18,430 buildings pared

Maharashtra's Cabinet of ministers yesterday cleared two proposals that will provide a Rs 222 crore special assistance to mostly tribal families in the Dhadgaon and Akaluwa talukas of Nandurbar district that have suffered malnutrition deaths (of children) and assistance of Rs 40-50 crore for agro-based industries in the state.

Chief minister Sushilkumar Shinde said: "All agro based industries, including milk and dairy industry as well as industries based in Gadchiroli and Hingoli districts of the Vidarbha region would benefit from the state government capital assistance. While so far the incentive to these industries was paid by the state in five instalments over five weeks, we have changed this to a one time payment that has to be disbursed within a week."

In another sop announced for Mumbai city's property tax payers, the state government has decided to levy a reduced rate of tax on 18,430 buildings. This will apply to those residents in these buildings who live in 350 square feet residences.

An amendment to the Mumbai Municipality Act would have to be effected for which the state government will seek the Maharashtra's governor Mohammad Fazal's nod.

When queried about the deteriorating condition of the state's finances Shinde said that in fact the contrary was true.

"Since I have taken over the reins as chief minsiter of the state, we have been able to pay off debts to the tune of Rs 11000 crore. However, even after this our debt is pegged at Rs 93,000 crore. It should be noted that since March 2004 the state government has not had to resort to a single overdraft from the RBI," he said.

Meanwhile, another proposal that seeks to revive 12 cooperative spinning mills, owned mostly by ministers in the Democratic Front government was once again postponed to tomorrow's cabinet meeting.

The proposal envisages the state government raising loans on behalf of these spinning mills at a nine per cent rate of interest.

While the state government would bear five per cent of this interest burden, the mills would need to pay only the balance four per cent in interest as well as the principal.