The Union Cabinet took several decisions including recommendation of President's rule in Andhra Pradesh, hike in ceiling of poll expenditure for candidates in Lok Sabha elections and increase in fixed cost of urea by up to 350 rupees per tonne.

The decisions were taken at a Cabinet meeting which lasted for about two hours in New Delhi on Friday. The government decided to recommend imposition of President's rule in Andhra Pradesh following resignation of Chief Minister Kiran Kumar Reddy in protest against the passage of Andhra Pradesh Reorganization Bill.

The Cabinet also hiked poll expenditure ceiling from the present 40 lakh to 70 lakh rupees for candidates in the Lok Sabha elections. It also approved minimum pension of one thousand rupees per month under the Employees Provident Fund Organization which will benefit 28 lakh pensioners.

The other major decisions taken by the cabinet include additional instalment of dearness allowance of ten per cent to Central government employees and pensioners effective from 1st January, a new rail coach factory at Kolar in Karnataka and establishing new National Institutes of Design at Jorhat , Bhopal, Vijayawada and Kurukshetra.

The Cabinet Committee on Economic Affairs, CCEA approved raising fixed cost of Urea by 350 rupees per tonne. It would lead to increase in subsidy by 900 rupees per tonne. The CCEA also approved modification in the new investment policy for the soil nutrient to boost its domestic production. It will allow market forces to operate new urea units and attract investments in the sector for required indigenous capacity addition.

It also approved setting up of three thousand and five hundred model schools in backward districts and opening of 54 new Kendriya Vidyalayas in 17 States to provide quality education.

The CCEA gave its nod for continuation of the Integrated Child Protection Scheme in the 12th Plan.

It also approved certain modifications and revision of cost norms in the Scheme of Assistance to Disabled Persons for purchase, fitting of aids and appliances, effective from 1st April this year.