The Union Cabinet has approved the proposal to extend the order restraining traders from holding stocks of paddy and rice beyond a limit for one more year. The validity of stock holding limits order on paddy and rice, which have been extended regularly, will expire in the current month. Highly placed sources said that the move aims at checking hoarding and containing price rise.It will also enable state governments to continue to take effective de-hoarding operations under the Essential Commodities Act.
The Cabinet also approved a proposal to set up a Legislative Council in Assam. Highly placed sources confirmed the decision. The state had an Upper House which was abolished after Independence. It was a long-pending demand of various political parties of the state.
The Union Cabinet also gave its nod for the extension of financial assistance to Kolkata Port Trust (KoPT) to meet the dredging expenditure incurred by the trust for maintenance of the river and channel. This will make transactions through the port commercially viable for port users. The assistance will be continued for the period from 2012-13 to 2015-16 at a total amount of over 1501 crore rupees. It will be effective from April 2012.
The CCEA has also approved amendments to the scheme for Financial Restructuring of State distribution companies which had been approved last year to enable their financial turnaround for their long term viability. The scheme is under implementation in Tamil Nadu, Rajasthan, Uttar Pradesh, Haryana and Himachal Pradesh.
Utilities of Jharkhand, Bihar and Andhra Pradesh which were facing financial difficulties and were keen to participate in the scheme could not do so due to practical difficulties in meeting certain requirements of the Financial Restructuring Plan, FRP scheme.
With a view to enabling these three States to participate in the scheme, the cut off date for reckoning the eligible amount of short term liabilities for issuance of bonds and re-schedulement by lenders is now shifted to 31st of March this year from 31st of March last year. The scheme will help improve the financial health of distribution utilities to enable them procure more electricity for meeting growing demand.
