Airlines Deals

The Cabinet Committee on Economic Affairs (CCEA) today extended by 18 months the moratorium on payment of compensation to Indian Airlines due to merger of Vayudoot Ltd with it.

“The CCEA today gave its approval to extend the moratorium by a further period of one and half years beyond March 31, 2005 so that the remaining amount of Rs 3.11 crore out of the total amount of Rs 138.33 crore due by Indian airlines on account of merger with Vayudoot, could also be finally settled,” Information and Broadcasting Minister Priyaranjan Dasmushi told reporters here.

The move would help Indian Airlines discharge liabilities of Vayudoot during the current financial year 2006-07 without financial burden.

Scheme for agri marketing infrastructure liberalized

The government today liberalised the scheme for strengthening agriculture marketing infrastructure by allowing state agencies to utilise their funds for the purpose instead of relying on bank credit.

Under the existing guidelines for the central scheme on “development/strengthening of agricultural marketing infrastructure, grading and standardisation, assistance under the scheme was credit linked.

Assistance for the scheme under the existing guideline is credit linked and subject to sanction of “infrastructure project” by the specified banks based on economic viability and commercial considerations.

Under the revised guidelines, state government agricultural marketing board/state agencies would be permitted to utilise their funds in lieu of bank loans for financing projects under the scheme, Information and Broadcasting Minister P R Dasmunsi told reporters after the meeting of the Cabinet Committee on Economic Affairs.

It also decided to allow projects located in hill states of Uttaranchal, Himachal Pradesh and Jammu and Kashmir to be eligible for higher subsidies admissible for hill areas irrespective of the altitude at which a project may be located.

Hilly area is defined as land situated 1000 metres above mean sea level.

Under the existing guidelines, the rate of subsidy stands at 25 per cent of the capital cost of the project.

But for north eastern states, hilly areas, tribal areas and to entrepreneurs belonging to SC and STs and their cooperatives, the rate of subsidy is 33.33 per cent of the capital cost of the project.

With this approval, state agencies will be better enabled to take up infrastructure projects from their own funds by dovetailing the subsidy under the scheme, without borrowing from the financial institution, Dasmunsi said.

He said J&K, Himachal Pradesh and Uttaranchal will be entitled to higher subsidy in the on-going scheme for taking up marketing infrastructure projects at all places irrespective of altitude.

This would benefit producers at higher altitudes who market their produce from projects located at lower altitude