Flagship irrigation scheme to get Rs 43,700cr

CABINET DECIDES

The Union Cabinet today approved an outlay of Rs 43,700 crore for national projects under the Accelerated Irrigation Benefits Programmes (AIBP) during the 11th Five-Year Plan period (2007-12).

The Cabinet also approved a proposal for implementing national projects with 90 per cent central assistance as grants under three heads "" international projects (where use of water in India is required by a treaty or where early completion of the project is necessary in the interest of the country); inter-state projects (which are dragging due to non-resolution of inter-state issues over sharing costs, rehabilitation, power production); and intra-state projects (provided they have the potential to irrigate more than 200,000 hectares, there is no dispute over sharing of water and the hydrology is established).

"This will help complete the ongoing irrigation projects under the AIBP and achieve the targeted irrigation potential under Bharat Nirman. The decision will help in utilising our share of water in rivers governed by international treaties and create additional irrigation potential," said Information and Broadcasting Minister Priyaranjan Dasmunsi.

The Cabinet also approved an increase in financial powers of the board of the Nuclear Power Corporation of India Ltd (NPCIL), including investments for financial joint ventures and setting up wholly-owned subsidiaries.

"The enhanced delegation will facilitate NPCIL to incur capital expenditure up to Rs 500 crore without government approval (within the overall 15 per cent ceiling of the networth of the company in one project with overall ceiling restricted to 30 per cent of the networth)," said Dasmunsi.

Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) approved the electrification of the 809-km Barauni-Katihar-Guwahati section of the East Central and North East Frontier Railways at a cost of Rs 505.68 crore.

The project, likely to be completed by 2011-12, would facilitate the running of long distance freight and passenger trains, including Rajdhani Express and Garib Rath Express, up to the north-east, Finance Minister P Chidambaram said after the CCEA meeting.

The Cabinet committee also approved the continuation of the Rajiv Gandhi National Fellowships (RGNF) for Scheduled Tribe (ST) students from 2007-08 for pursuing higher studies like M.Phil and Ph.D.

"The total number of fellowships every year will be 667. An outlay of Rs 26 crore will be spent in 2007-08, and during the 11th Plan, the expenditure is projected at Rs 175.985 crore. The scheme will benefit 12,079 ST students during the Plan period," Chidambaram said.

The CCEA approved the transfer of the administrative control of Bharat Wagon and Engineering Company Ltd (BWEL), Patna, a subsidiary of Bharat Bhari Udyog Nigam Ltd, to the Ministry of Railways.

OTHER DECISIONS ...

CCEA approved a one-time interim grant of Rs 200 crore as non-plan fund to the Fertilizers and Chemicals Travancore Ltd (FACT) to enable the company sustain its operations till end of March this year

Cabinet approves signing of MoU between India and South Africa on agricultural cooperation

Cabinet also approves signing of an agreement between India and Zambia for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income