Cabinet clears additional incentive for paddy

In order to enhance procurement of paddy in the kharif marketing season and encourage paddy cultivation, the Cabinet Committee on Economic Affairs (CCEA) today approved the grant of an incentive bonus of Rs 50 per quintal on paddy procured for the central pool for the kharif season. This is over and above the bonus of Rs 50 per quintal announced already.

The Cabinet also approved a proposal to double the authorised capital of India Tourism Development Corporation (ITDC) from Rs 75 crore to Rs 150 crore.

Besides, the Cabinet approved the moving of a resolution by the Minister of Railways in both the Houses of Parliament for adoption of the recommendations in Para Nos 54, 55, 56, 57, 58, 59, 60 and 61 of the Railway Convention Committee (2004)'s 6th report.

This means that according to the recommendation of the committee, the railway ministry would now have to pay dividend at a rate of 7 per cent, as decided in the committee's sixth meeting. The earlier dividend rate was 6.5 per cent.

Other decisions:

*Amendment to the Mines and Minerals Development Regulation (MMDR) Act, 1957, to introduce auction of captive coal blocks through competitive bidding.

*Agreement between India and Iceland for avoidance of double taxation