The Cabinet Committee on Economic Affairs (CCEA) today approved the guidelines for providing financial assistance to the sugar industry for payment of cane price arrears. Central government will provide an interest subvention up to 12 per cent at a simple rate of interest for the additional working capital loans to the sugar undertakings, equal to last three sugar seasons excise duty, cess and surcharge on sugar, to be provided by the banks. The sugar undertakings with loans classified Non Performing Assests (NPA) by the banks will also be eligible for the loans provided the concerned state governments give guarantee for their new loans.

The CCEA also approved the proposal of M/s. Axis Bank Limited for increase in foreign investment from 49 percent to 62 percent. The approval is subject to the aggregate foreign institutional investors holding not exeeding 49 percent of the paid up equity share capital of the bank.

Cabinet Committee on Economic Affairs, CCEA, has approved the proposal for providing non-budgetary support of 116.86 crore rupees to 11 PSUs. The package will help to pay the liquidation of statutory dues, including provident funds, gratuity pension, salary and wages from 1st April this year till the end of August this year in respect of eleven public sector undertakings.

The Cabinet Committee on Economic Affairs, CCEA has approved for four laning of 93 kms long Gaya-Rajgir-Nalanda-Biharsharif section on national highway-82 in Bihar. The total project cost is estimated at 1409 crore rupees. Japan International cooperation and supervision Agency has agreed to provide loan assistance with 100 percent financing for civil construction and supervision work for the project.