CCEA clears textile upgrade scheme

The Cabinet Committee on Economic Affairs (CCEA) today approved a proposal by the railway ministry to prioritise railway projects in the country.

It also cleared a modification in the existing Technology Upgradation Fund Scheme (TUFS) to allow incentives for modernisation of the textile processing sector, the weakest link in the textiles chain.

"The scheme will involve a 10 per cent capital subsidy in addition to the 5 per cent interest subsidy for textile processing units," Finance Minister P Chidambaram told reporters.

The capital subsidy will be available for investments made in benchmarked processing technology for one year and not for the entire project. It would be available to composite and stand-alone processing units.

An extension of the scheme beyond one year would be considered later by the ministry, if necessary.

Minimum support prices of kharif crops for 2005-06 were also approved. As recommended by the Committee on Agricultural Costs and Prices, the price of common paddy was increased from Rs 560 to Rs 570 per quintal, while those of grade A were hiked from Rs 590 to Rs 600.

Sunflower seed prices were raised by Rs 1,340 a quintal to Rs 1,500 while those of sesamum were hiked from Rs 1,500 to Rs 1,550 per qunital.

The committee also approved a proposal by the agriculture ministry for implementation of an umbrella scheme for studies on inputs for agricultural economic policy and development with an outlay of Rs 110.89 crore.

Railway projects have been split into four categories. Eight projects in the first category are last-mile projects that will involve an expenditure of Rs 339 crore.

Four projects in the second category are those which are required immediately on operational considerations, Chidambaram said, adding that expenditure on them would amount to Rs 608 crore.

National projects, defence-funded projects, cost-sharing projects, public-private partnerships and projects in the northeastern region would be in the third category.

This category would have about 30 projects involving Rs 13,700 crore and an annual review of prioritisation within this category would take place on account of ground realities. All remaining projects would be in the fourth category.

The Union Cabinet, which also met today, cleared amendments of the Administrative Tribunals Act, 1985, to provide for abolition of the central administrative tribunals and state administrative tribunals.

"This is only an enabling provision," said Information and Broadcasting Minister Jaipal Reddy. A number of states, including Himachal Pradesh, Chhattisgarh, Madhya Pradesh, Karnataka and Tamil Nadu had requested the Centre to abolish the tribunals in their states.

Approved

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TUFS TUFS to be modified to allow incentives for modernisation of the textile processing sector

Kharif prices Minimum support prices for kharif crops have been cleared. Price for paddy was hiked from Rs 560 to Rs 570 per quintal

Rail projects Railway projects have been split into four categories according to priority