The Government today approved 7,029 crore compensation to states for the losses they suffered due to reduction in central sales tax, CST, rate in the current financial year. The decision was taken by the Union Cabinet chaired by the Prime Minister, Dr. Manmohan Singh in New Delhi.Briefing newsmen after the meeting, Information and Broadcasting Minister Ambika Soni told reporters that 3,000 crore rupees are likely to be released this fiscal, while the balance of 4,029 crore rupees would be given in the next. she added, an additional requirement of 3,000 crore rupees for 2010-11 has already been included in the budgetary outlay.AIR correspondent reports, CST, a tax on movement of goods from one state to another, was reduced from 4 per cent to 3 per cent in 2007-08 and further to 2 per cent in 2008-09 after the introduction of VAT, as it was considered distortionary. States have estimated the loss at 20,000 crore rupees this fiscal on this account and are demanding reimbursement for the same. The government also approved capital infusion of 1,100 crore rupees for Regional Rural Banks for improving their capital adequacy ratio. The fund infusion in RRBs will enable the banks to enhance their lending towards farm sector. Besides, the Cabinet approved additional amount of 700 crore rupees as contingency fund to meet the requirement of the weak RRBs, particularly those in the North Eastern and Eastern Region. Mrs. Soni said a capacity building fund with a corpus of 100 crore rupees is to be set up by the Central Government with National Bank for Agriculture and Rural Development (NABARD) for training and capacity building of the RRB staff in the institution of NABARD and other reputed institutions.A comprehensive bill to replace the 1867 Press and Registration of Books Act to streamline the age-old processes pertaining to the print media policy was also approved by the cabinet. Under the proposed Press and Registration of Books and Publications Bill 2010, persons convicted of terrorist and unlawful activities would not be allowed to bring out any publication. The comprehensive legislation, to be brought soon, would address issues ranging from title verification, definitions of publications including internet editions of newspapers. It will have various other provisions ,from those on preventing blocking of titles to those relating to limits on foreign news content and foreign investment. The periodicity of publication and submission of annual statements would be made mandatory. Asked whether any change has been made in the FDI limits, he said,the limits on FDI or on foreign publications are already there. In another decision, the Cabinet approved the proposal of Ministry of Finance for amendment in the Coinage Bill 2009. The bill is pending in Lok Sabha.