In a major relief, the Union cabinet has announced a package of nearly 8,000 crore rupees on Wednesday.
The cabinet chaired by Prime Minister has approved the creation of a 30 lakh tonne sugar buffer stock. The buffer stock will be maintained by sugar mills and the govt will pay them 1,175 crore rupees in exchange.
The Centre has also fixed the minimum selling price of sugar at 29 rupees per kg.
A soft loan of 4,500 crore rupees has also been cleared for increasing capacity of sugar mill distillaries to produce ethanol and to ensure its sale. Interest amount for first year of loan of 1,332 crore rupees will also be borne by the Centre.
Union Cabinet took some other decisions as well which covered the interest of govt employees as well as steps for the development of basic infrastructure.
The biggest benefit will accrue to over 3 lakh gramin dak sevaks as their wage structures and allowances have been overhauled. The revision in the wage structure would entail an estimated expenditure of Rs 1257.75 during 2018-19 benefitting 3.07 lakh Gramin Dak Sevaks. The new allowances will be applicable from 1st january 2016 and the Dak Sewaks will be eligible for arrears as well.
The Cabinet Committee on Economic Affairs cleared proposal to install 3 Lakh solar street lights throughout the country.
It also approved 25 lakh Solar Study Lamps in North Eastern States and Left wing Extremism affected districts.
Cabinet also approved funding for the Geosynchronous Satellite Launch Vehicle Mark-III continuation programme consisting of ten GSLV (Mk-III) flights.
It also approved the Polar Satellite Launch Vehicle Continuation Programme (Phase 6) and funding of thirty PSLV operational flights under the Programme.