The Hindu Business Line : Govt okays Rs 450-cr subsidy for rural godowns

New Delhi, June 26 The Government has approved a subsidy of Rs 450 crore for the construction and renovation of rural godowns across the country during the Eleventh Five-Year Plan period (2007-12).

“The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for the implementation of the revised scheme ‘Capital Investment Subsidy for Construction/Renovation of Rural Godown’ during Eleventh Plan period with a total outlay of Rs 450 crore,” the Minister of State in the Prime Minister’s Office, Mr Prithviraj Chavan, told reporters after the meeting.

Under the revised scheme, the Government would provide capital subsidy in the range of Rs 46.87 lakh to Rs 62.50 lakh to rural cooperatives, farmers and self-help groups for construction or renovation of godowns in rural areas. The scheme is expected to help in creation of additional storage capacity for storage of farm produce and strengthening of agricultural marketing infrastructure in the country.

Coffee pact

The Government also approved the signing and ratification of the International Coffee Agreement, 2007 which aims to strengthen global co-operation in coffee trade. International Coffee Agreement (IPA) is a United Nations pact establishing the International Coffee Organisation. It is designed to help stabilise coffee prices globally.

“India has significant interest in export of coffee, it would be immensely benefited from the membership of the International Coffee Agreement (ICA), Mr Chavan said.

The CCEA also cleared the implementation of the centrally sponsored scheme of Incentive to Girls for Secondary Education, which would entail an expenditure of Rs 1,500 crore during the Eleventh Plan.