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Rs 500 Crore Fund For Price Stabilisation

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Our Economy Bureau BUSINESS STANDARD
Last Updated : Jan 28 2013 | 1:39 AM IST

Schemes & Promises

In Budget 2003, Finance Minister Jaswant Singh has announced three special schemes on pension, health insurance and a Rs 500 crore price stabilisation fund for the plantation sector. He also announced a tax rebate for educational expenses upto Rs 12,000 per child for two children.

Singh announced that the Life Insurance Corporation of India (LIC) would launch the Varishtha Pension Bima Yojana for senior citizens which will guarantee an annual return of 9 per cent, in the form of a monthly pension scheme. Any citizen above the age of 55 years of age will qualify, and will get a monthly return in the form of a pension for life.

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The minimum and maximum monthly pensions proposed are Rs.250 and Rs.2,000 per month. This monthly pension will start from the month following the payment of the lump-sum amount by the citizen. The difference between the actual yield earned by the LIC, on the funds invested under the scheme, and the assured return of 9 per cent, will be reimbursed to the LIC annually, by the Government.

Singh also announced a community-based universal health insurance scheme during this fiscal. The scheme will be designed by the public sector general insurance companies. Under this scheme, a premium equivalent to Re.1 per day (or Rs.365 per year) for an individual, Rs.1.50 per day for a family of five, and Rs.2 per day for a family of seven, will entitle eligibility to get reimbursement of medical expenses up to Rs.30,000 towards hospitalisation, a cover for death due to accident for Rs.25,000, and compensation due to loss of earning at the rate of Rs.50 per day up to a maximum of 15 days. The government will contribute Rs 100 per year towards the annual premium of BPL families.

To provide income stability for small plantation growers, Singh today announced a price stabilisation fund of Rs 500 crore. The fund which will become operational in 2003-04 is for the benefit of tea, coffee and natural rubber growers.

Announcing an extension of the Antyodaya Anna Yojana , Singh said that the scheme would be extended from April 1 2003. It will cover an additional 50 lakh families raising the total coverage to more than a quarter of all BPL families during the year 2003-04. The additional budgetary expenditure on this account will be Rs.507 crore.

Singh announced the Maru Gochar Yojana for the rehabilitation of traditional pastures in Rajasthan. The government will provide Rs 100 crore for the scheme over a period of three years. Provision for 2003-04 for this purpose will be Rs.50 crore.

As part of agricultural initiatives, Singh introduced a new central sector scheme on hi-tech horticulture and precision farming for which the centre will initially provide Rs 50 crore.

Major components of the scheme will be use of hi-tech interventions like fertigation, use of biotechnological tools, green food production, and hi-tech green houses. For the sugar industry, Singh announced that the ministries of food and finance will bring out a comprehensive scheme.

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First Published: Mar 01 2003 | 12:00 AM IST

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