The Hindu Business Line : Supplementary demand for grants placed in Lok Sabha

New Delhi, Aug. 16 The first batch of supplementary demands for grants for 2007-08 for additional expenditure involving net cash outgo of Rs 10,428.22 crore was placed in the Lok Sabha today.

The Finance Minister, Mr P. Chidambaram, piloted the first batch for Parliamentary approval to authorise gross additional expenditure of Rs 20,412.14 crore.

Of this, proposals involving net cash outgo stand at Rs 10,428.22 crore.

The remainder amount is matched by savings of Ministries or recoveries aggregating to Rs 9,983.62 crore.

Fertiliser subsidy

Out of the net cash outgo, fertiliser subsidy accounts for a substantial portion (Rs 6,550 crore).

On the additional expenditure matched by savings of Ministries, Rs 8,450 crore relates to fertiliser subsidy, taking the overall expenditure on it to Rs 15,000 crore.

As part of the cash outgo expenses, an amount of Rs 1,300 crore would be transferred to State and Union Territory Governments as additional Central assistance for externally aided projects.

The other cash outgo expenditures includes loan of Rs 352 crore to Indian Telephone Industries, settlement of pending claims of duty drawback on deemed exports and reimbursement of Central sales tax and terminal excise duty for SEZs (Rs 300 crore).

State farm plans

Besides, it envisages additional Central assistance of Rs 300 crore to State Plans for Agriculture for achieving four per cent annual growth during the 11th Five-Year Plan and Rs 200 crore towards implementation of ‘National Food Security Mission’ Scheme.

The Centre also proposes to write down equity of Rs 226.43 crore as on March 31, 2007 in respect of Andrew Yule and Company Ltd.

Plans are afoot to waive interest of Rs 138.08 crore and write down equity of Rs 8.31 crore as on March 31,2006 in respect of National Instruments Ltd.

Also, the Centre plans to write off outstanding loan of Rs 29.87 crore and waive interest of Rs 52.62 crore in respect of Nagaland Pulp and Paper Company.