Announcing the decision at a press briefing, Union Minister for Science and Technology Kapil Sibal said the incentive was aimed at encouraging production and procurement of rice. The arrival of paddy in mandis has been slow this year as farmers have been waiting for announcement of bonus.
However, the Union Cabinet deferred a decision to raise the FDI cap in insurance. “The decision was not taken today as the Finance Minister was unable to attend the meeting. It will be taken up at the next meeting,” said Sibal.
Among other decisions taken by the CCEA was approval of two infrastructure projects, one each in aviation and railways. It cleared the proposal to construct a greenfield airport at Pakyong, 35 km from Gangtok (Sikkim). The airport, which will have a 1,700-metre-long runway with two parking bays, will involve an investment of Rs 309 crore.
The CCEA also cleared the gauge conversion project of Bhuj-Naliya in Gujarat to facilitate the mushrooming cement manufacturing industry in the region. The project requires an investment of Rs 318.24 crore, of which Rs 238.24 crore will be funded through budgetary support and Rs 80 crore will be invested by cement industries in the area.
Other important decisions include extension of the ICDS scheme in the Twelfth Plan, with an allocation of Rs 44,400 crore.
Renuka in Cabinet face-off
The meeting also saw an “agitated” Women and Child Development Minister, Renuka Chaudhary, pressing for her department’s proposal to supply ready-to-eat food under the Integrated Child Development Services in the face of stiff opposition from Planning Commission Deputy Chairman Montek Singh Ahluwalia and her own Cabinet colleagues. Sources said Chaudhary was “agitated” when a number of Cabinet members opposed the proposal and stressed that fortified food could not be a substitute for cooked meal. She underlined that there was no infrastructure available at Anganwadi centres to cook the meal. The Cabinet agreed to constitute a GoM to give its recommendations after consultations with state governments.