MSP raised less than recommended, Companies Bill deferred amid fresh differences.
Fresh differences in the Union cabinet on Tuesday led to the deferment of the Companies Bill 2011 and scaling down of the recommended minimum support price (MSP) for wheat. However, all divergent views were buried to clear the much talked about National Manufacturing Policy.
The MSP of wheat, as cleared by the cabinet, was almost Rs 65 per quintal less than recommended by the Commission for Agricultural Costs and Prices (CACP). That made it one of the rare occasions when the recommendations of the country’s premier body on setting farm prices were trimmed, that too for grains. The farm ministry’s earlier proposal on wheat MSP, which was in line with CACP recommendations, had to be watered down after stiff opposition from the ministries for food and finance.
| MANUFACTURING ECONOMIC SUCCESS Policy aims to streamline labour and environmental norms in industrial parks, create 100 million jobs Govt wants to raise manufacturing’s share in GDP to 25% over a decade from 16% now Trade deficit has shown a widening trend in recent months amidst higher demand for oil, gold and industrial machinery “China has done it, Germany has done it, now India has decided to do it,” said commerce and industry minister Anand Sharma |
The National Manufacturing Policy was cleared after the agriculture minister Sharad Pawar-led Group of Ministers (GoM) settled most of the differences between the labour and environment ministries over its broad contours. The policy aims at increasing the share of manufacturing to 25 per cent of GDP by 2022 from the present 16 per cent, and adding 100 million jobs by then. The Companies Bill 2011 got deferred after objections by the finance and law ministries.
The Bill, revised more than half a dozen times in the past 10 years, has now been referred to an informal committee though top ministers say the differences were not deep and the matter should be resolved in 10 days. It is unusual for a proposed Bill to reach the stage of cabinet clearance and then be deferred.
There are differences related to clauses in the Bill that purportedly impinge on the respective jurisdictions of the Securities and Exchange Board of India and the Central Board of Direct Taxes.
The draft Bill mooted earlier had some Corporate Social Responsibility provisions that were diluted in the present version. That caused the finance and law ministries to point out certain anomalies.
The cabinet also okayed the Majithia Committee’s recommendations for working journalists in newspapers and news agencies. It also approved a one per cent interest subvention on housing loans up to Rs 15 lakh, compared with Rs 10 lakh at present. The subvention will be given when the total cost of the house is less than Rs 25 lakh. The current limit is Rs 20 lakh.
