Minimum support price hiked for copra, jute

The Centre tonight hiked the Minimum Support Price (MSP) of Copra and Ball Copra by Rs 180 each to Rs 3,500 and Rs 3,750 respectively and that of jute by Rs 30 to Rs 890 per quintal for 2004-05 in line with the recommendations of the Commission on Agricultural Costs and Prices.

This was stated by Finance Minister P Chidambaram after a meeting of the Cabinet Committee on Economic Affairs (ccea). Chidambaram said the MSP for td-5 grade of jute, ex-Assam for the 2004-05 season has been fixed at Rs 890 a quintal, up from Rs 860 a quintal.

He said the Jute Corporation of India will continue as the central government's nodal agency undertaking price support operations and the losses, if any, incurred in the MSP operations will be fully reimbursed by the Centre.

CCEA also approved that Nafed may continue to act as a central nodal agency to undertake price support operations of Copra for 2004 season and the losses incurred by it may be fully reimbursed by the centre, he addded.

Chidambaram said this would help in protecting the Copra growers from distress sales through remunerative prices and ensuring that projected benefits were made available to them.

The CCEA also approved Rs 596.47 crore investment in setting up a transmission line to evacuate power from NTPC's Vindhyachal power project. The investment also includes interest-during-construction of Rs 52.89 crore. "The project is expected to be commissioned in the next 36 months," Chidambaram told reporters.

The capacity of the project will be 2x500 MW and will benefit the western region.

The Cabinet also approved the creation of a post of secretary and additional secretary or joint secretary for the secretariat of the National Advisory Council (NAC) headed by Congress President Sonia Gandhi.

The decision aims at providing flexibility to the NAC to appoint staff on contract from outside the government setup or on deputation from within the government setup, an officia spokesperson said after the meeting.

The council, comprising 20 members nominated by the prime minister in consultation with the chairperson, will monitor the progress of the implementation of the CMP and provide inputs for the formulation of policy by the government. It will also provide support to the government in its legislative business.

The expenditure incurred for functioning of the council is to be met by the central government provided through the prime minister's office.