Rs 3,750 cr additional funds for Bihar, Orissa

Nod to food for work; higher vrs for PSUs; sugar buffer extended

The government has cleared an additional allocation of Rs 3,750 crore assistance to Bihar and Orissa under the Rashtriya Sam Vikas Yojana, besides adding 21 new districts in the two states as part of the extension of the backward districts component under the scheme.

Of this, Rs 3,000 crore would be allocated to Bihar and Rs 750 crore to Orissa over the next three years, Finance Minister P Chidambaram told reporters. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) on Wednesday, but an announcement was made today due to elections in Maharashtra.

The Cabinet, which met on Wednesday, gave its approval for further pursuing three bills in Parliament "" the Chartered Accountants (Amendment) Bill, 2003, the Cost and Works Accountants (Amendment) Bill, 2003, and the Company Secretaries (Amendment) Bill, 2003.

It also decided to set up Consultancy Development Centre as an autonomous institution to target the doubling of export of consultancy services to Rs 6,000 crore by 2007.

"The CDC is already working and it will be set up as an autonomous body under an executive order," Chidambaram said.

It also approved the introduction of the National Food for Work programme for providing additional supplementary wage employment in 150 identified districts in the country.

The programme will be allocation-based in terms of cash and foodgrains and become fully operational from the next financial year. A provision of Rs 2,020 crore has been made by the government for the programme at this stage.

The programme, a 100 per cent centrally-sponsored scheme, will be provided to the states free of cost. However, transportation costs, handling charges and taxes on foodgrains would be the responsibility of the states.

The government also extended the period for maintenance of buffer stock for sugar by one more year to ensure timely payment of cane-price arrears to farmers.

Enhancement of ex-gratia amount under the Voluntary Retirement Scheme (VRS) by 50 per cent for employees in central public sector enterprises was also cleared. The higher VRS follows the central dearness allowance pattern of pay scales at 1986 levels.

New terms of reference for the National Commission on Farmers, which includes the mandate to formulate a medium-term policy for food and nutrition security within the next 3 months, were also approved.

It also shifted the National Commission on Population from the Planning Commission to the Department of Family Welfare. It approved the reconstitution of the Jansankhya Sthirata Kosh and the creation of a convergence policy group in the Planning Commission to ensure inter-sectoral convergence within the family welfare programme.

The CCEA approved the upgradation of 238 cities and towns to revised classes for the house rent and city compensatory allowances with effect from April this year. The decision would entail an additional expenditure of Rs 144 crore annually.

An investment of Rs 284.78 crore, including an interest during construction component of Rs 8.01 crore, will be required for the establishment of the transmission system associated with System Strenghtening-III of the Southern Grid.

The CCEA also approved the second phase expansion of Nalco's integrated aluminium complex at an investment of Rs 4,091.51 crore. Under the plan, the capacity of bauxite mines will be increased to 63,00,000 tonnes per year from 48,00,000 Tpy, aluminium refinery from 15,75,000 Tpy to 21,00,000 tonnes, aluminium smelter from 3,45,000 Tpy to 4,60,000 Tpy and captive power plants, from 960 Mw to 1,200 Mw.

It also cleared the development of the Indira Gandhi Open University and Open Learning System during the Tenth Plan, for which Plan expenditure of Rs 510 crore has been earmarked.

The government's share will be Rs 380 crore, subject to the actual allocation of Plan funds in the Budget of IGNOU.