The Union Cabinet on Thursday deferred a decision on the proposed national manufacturing policy.
Ms Ambika Soni, the Minister for Information and Broadcasting, said that the while the proposal on national manufacturing policy was on the agenda, a decision on the same was deferred as the Labour Minister – who had queried the proposed policy – is currently travelling overseas.
She told reporters after a meeting of the Cabinet that, “Some other Ministers have also expressed their desire for additional information…It (the item) has been deferred.”
The ambitious manufacturing policy aims to create 100 million jobs and take the share of manufacturing to 25 per cent of the country's GDP by 2025 from the current 15-16 per cent. It talks of creation of national manufacturing and investment zones as mega investment regions backed by world-class infrastructure, with reduced compliance burden for the industry in the form of relaxation in labour and green laws.
Delhi-Mumbai corridor funding
At the same time, another proposal pertaining to fund infusion (Rs 18,500 crore) and equity restructuring plan for Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) is said to have been cleared in the meeting.
But Ms Soni did not give out the details or modalities of the DMICDC plan. She said that announcement on both the proposals of Commerce Ministry – the manufacturing policy, once cleared, and DMICDC – will be made together.
DA hike cleared
The Cabinet has also cleared a seven per cent hike in the Dearness Allowance for the Central Government employees.
“The Cabinet has approved releasing additional installment of DA to central Government employees…as due from July 1, 2011. This will be at the rate of seven per cent over and above the existing rate of 51 per cent,” Ms Soni said.
The total financial implications on account of both Dearness Allowance along with Dearness Relief for pensioners would be Rs 7,228.7 crore a year and Rs 4,819.2 crore for the current financial year.
The Cabinet also gave its nod to place the “approach document” on the 12{+t}{+h} Five-year Plan (2012-17) before the National Development Council. It entails a target of nine per cent economic growth for the 12{+t}{+h} Plan period with focus on areas such as health, education, skills development, environment and infrastructure development.
The National Development Council is likely to meet on October 15 or 16, Ms Soni pointed out.
Meanwhile, the Cabinet Committee on Infrastructure has approved the development of six-laning of Kishangarh-Udaipur-Ahmedabad section (NH-79A, NH-79, NH-76 and NH8 in Rajasthan and Gujarat). The total project cost estimates is pegged at Rs 6,013.7 crore, of which Rs 626.4 crore will be for land acquisition, R&R and preconstruction purposes.
Also, the Cabinet Committee on Economic Affairs (CCEA) has given its nod for providing non-Plan budgetary support of Rs 59.72 crore towards payment of statutory dues and salary and wages in 10 sick or loss making CPSEs under the Department of Heavy Industry.
These include Hindustan Cables, HMT Ltd, HMT (Watches) Ltd, and Scooters India.