The government has approved a new Centrally Sponsored Scheme of Pre-Matric Scholarship for Scheduled Tribe (ST) students, studying in Class IX and X. The decision was taken in a meeting of the Union Cabinet chaired by the Prime Minister Dr Manmohan Singh yesterday.

The Scheme will help in minimizing the incidence of dropouts, especially in the transition from the elementary to the secondary stage of education. An official press release says that day scholar student will be given 150 rupees per month, while hosteler will get 300 rupees per month.

The Cabinet also gave its nod to continue interest subsidy to Public Sector Banks, Regional Rural Banks, Cooperatives Banks and NABARD to enable them to provide short-term crop loans up to 3 lakh rupees to farmers at 7 percent rate of interest per annum during the year 2012-13. It was also decided to provide additional interest subsidy of 3 per cent per annum to those farmers who repay loans within one year of disbursement in the current fiscal year.

The Cabinet allowed the release of 10,901 crore Rupees as interest subvention for 2012-13. Interest subsidy of 442 crore rupees has also been approved for small and marginal farmers with Kisan Credit Cards for loan against negotiable warehouse receipts for post harvest at 7 per cent per annum.

The Cabinet also gave its approval for 1997 pay scales to the employees and enhancement in the superannuation age of employees from existing 58 years to 60 years.