The Andhra Pradesh Government will mobilise additional funds from the Reserve Bank of India to help it step up paddy procurement from about 1,248 purchase centres in the State.

The State has already secured cash credit of Rs 500 crore from the RBI for purchase of paddy and it has requested market committees to provide the additional amount of Rs 50 crore.

The State, which has recorded a 32 per cent growth in output this year up from 108 million tonnes to 140 mt, has also requested the Prime Minister, Dr Manmohan Singh, and the Centre to hike the minimum support price and also permit export of rice.

Briefing newspersons here today after the State Cabinet meet held today, the State Information Minister, Ms D.K. Aruna, said that efforts were also being made to arrange for gunny bags that would facilitate in storage of arrival of paddy into godowns.

Indira Kranthi Pathakam (IKP) groups, Civil Supplies Corporation and Food Corporation of India have opened paddy purchase centres to pick up stocks directly from the farmers. The procurement data shows that it is significantly higher this year compared with last year's numbers for the corresponding period.

The Government is also making efforts to arrange more rakes from the railways to move it within various parts of the State. About 180-190 rakes will be moved during the month. FCI has also initiated process to place indents for 240 rakes, she said.

The Cabinet today decided to handover 702 acres for the proposed Tirupati International Airport project being taken up by the Airports Authority of India in Renigunta and Yerpadu mandals in Chittoor district. The Government also sanctioned Rs 100 crore towards acquisition of lands and shifting of utilities.

A master plan for upgradation of Tirupati airport was prepared following a joint survey by AAI and the State Government in 2008. According to the proposal, the existing airport located in 312 acre is owned and managed by the AAI. The AAI had come up with a proposal to expand and upgrade the airport to handle increasing flow of passengers.

In yet another decision, the Cabinet approved allotment of 283 acres of land to DRDO at Parvada mandal near Visakhapatnam at Rs 12 lakh a acre for it to set up a defence unit and another 14 acres to APIIC for facilitating it to set up an industrial park in Chittoor district.

Nizam Sugar factory, which has about 16,900 acres, in its possession used for sugarcane cultivation, has been allowed to sell about 500 acres to help it mobilise funds.

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