The Hindu Business Line : Kerala Cabinet counsels waiver of interest on farm loans

Briefing newspersons on the proceedings of the meeting, the Chief Minister, Mr A.K. Antony, said the recommendations of an expert committee on plantations providing for various benefits to tea and coffee plantations had also been approved.

The State Government had proceeded to allocate Rs 25 crore as the first instalment to meet the commitments arising from the waiver of the interest component of farm loans. The moratorium on recovery of these loans would hold for a period of 12 months.

The Kerala State Electricity Board would consider on a case-by-case basis exemption of those tea plantations willing to resume operations from payment of minimum demand charge for power. They would also be allowed, on a deferred instalment basis, to clear arrears on actual power consumed. Tea and coffee plantations have also been exempted from payment of agricultural income and plantation tax for years 2003-04 and 2004-05.

Special purpose vehicle: The Cabinet also gave its formal approval for the proposed Rs 6400-crore North-South Expressway project and decided to float create a special purpose vehicle (SPC) for implementing the same.

According to the Chief Minister, the State Government and the Infrastructure Leasing and Financial Services IL&FS) would equally share the equity of Rs 10 crore for the SPV. Modelled on the Cochin International Airport Ltd (CIAL) that implemented the country's private sector airport, the SPV would have 14 directors on the board. The Chief Minister would be the Chairman, while the Minister for Public Works would be the Vice-Chairman of the board.