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Hike in power subsidy to farmers likely

THE STATE Cabinet is likely to take a decision on subsidy to farmers against the new power tariff to the tune of about Rs 500 crores. The Cabinet will meet tomorrow at Vallabh Bhavan at 4 pm.

india Updated: May 16, 2006 14:56 IST

THE STATE Cabinet is likely to take a decision on subsidy to farmers against the new power tariff to the tune of about Rs 500 crores. The Cabinet will meet tomorrow at Vallabh Bhavan at 4 pm.

According to official sources, earlier farmers were getting subsidy of Rs 1.25 per unit but since the power tariff had been enhanced the government intends to give further subsidy to farmers. Now, they might be given subsidy at Rs 1.70 per unit of power consumed.

Notably, the CM had announced the grant of subsidy to farmers some time back at Neemuch but the government could not take a decision on the same because of the model code of conduct in place after Budhni by-poll announcement.

As per sources, the Cabinet might approve a proposal to raise the government's contingency funds limit from Rs 40 crore to 100 crore.

The Cabinet is also likely to take up the proposals regarding sanction for recruitment against 38 posts of deputy collectors through Public Service Commission.

Besides, the Cabinet might approve the proposal for direct recruitment against vacant posts in Panchayat and Rural Development Department. The government intends to give concession of two per cent from commercial tax on yarns for promotion of textiles mills in the state.

First Published: May 16, 2006 14:56 IST