Cabinet okays more tsunami aid

New scheme for rural electrification; Nafed to buy cotton

The Union Cabinet today approved a Rs 918.21 crore relief package for tsunami-affected Andaman and Nicobar Islands.

The Cabinet Committee on Economic Affairs (CCEA) also approved replacing the existing 'Accelerated Electrification of One Lakh Villages and One Crore Households' scheme with a new scheme called 'Scheme of Rural Electricity Infrastructure and Household Electrification'.

The new electrification scheme would provide 90 per cent subsidy to finance projects for setting up 33/11 KV or 66/11 KV substations to create a decentralised distribution and supply system in rural areas where grid connectivity is either not feasible or not cost effective.

The scheme would also provide 100 per cent subsidy for a single-point connection to Below Poverty Line (BPL) households. As part of the relief package, construction of 10,100 intermediate shelters before mid-April 2005 have been approved at a cost of Rs 96.33 crore.

The rest of the Rs 821.88 crore assistance includes Rs 313.19 crore for immediate relief and response, Rs 239.54 crore for revival of agriculture and Rs 215.65 crore for housing and employment generation.

A sum of Rs 29.89 crore has been approved to restore the damaged infrastructure of Andaman and Nicobar administration, while Rs 15.01 crore has been set aside for the fishery sector "" 1,401 boats have been lost or damaged.

While replacement of small boats up to Rs 65,000 would be fully subsidised, those costing up to Rs 1.5 lakh would get 50 per cent subsidy and a loan at an interest rate of 7 per cent per annum. The relief for employment generation includes a payment of Rs 1 lakh ex gratia each for those missing.

National Agricultural Cooperative Marketing Federation of India (Nafed) has been declared as an agency for cotton price support in addition to the Cotton Corporation of India (CCI) which would look into increasing the procurement of cotton. Nafed will be allowed to undertake cotton procurement on the CCI pattern, but it would also use the network of co-operatives for speedy procurement.

The government guarantee already given to department of agriculture would be utilised by NAFED for price support for pulses, oilseeds and cotton.

The cabinet also revived the Commission for Economically Backward Classes (EBC) which had become defunct since June 2004. The commission, which is to suggest criteria for identification of the EBCs and recommend the quantum of reservation in education and government employment, is required to submit its report within six months of the appointment of the chairperson.

The cabinet also cleared implementation of agreements on visa-free travel to Romania, Tajikistan and Laos. The exemption from visa requirement would be available for a stay of up to 30 days in these countries and for travellers in transit.

The cabinet also approved renewal of memorandum of understanding with the UK on return of illegal immigrants for another year.