CABINET RESOLVES TO IMPLEMENT FIFTH PAY COMMISSION REPORT

CHANDIGARH MARCH 2, 2009

The Punjab Government today decided to provide financial assistance to the tune of Rs.2 lac each to the families of farmers and farm labour who committed suicide on account of farm indebtedness.

A decision to this effect was taken in the meeting of the Council of Ministers chaired by the Punjab Chief Minister Mr. Parkash Singh Badal here at Punjab Bhawan this morning.

Disclosing this here today a spokesman of the Punjab Government said that the Cabinet also decided to cover all such cases of suicide since year 2000 and thereafter and directed all the Deputy Commissioners to provide the financial assistance of Rs. 2 lac per family in case of farmers and farm labour who committed suicide.

The Cabinet also approved One Time Settlement (OTS) scheme in order to provide relief to the existing sick Industrial units under the proposed new industrial policy 2009. Under the scheme the state level financial institutions like Punjab State Industrial Development Corporation, Punjab Agro Industries Agro Corporation and Punjab Financial Corporation would rehabilitate the sick units through OTS.

Under the OTS, loan upto Rs.1 lac would be charged as principle plus expenses outstanding (o/s), in case of loan from Rs.1 lac to Rs.5 lac it would be principle plus expenses o/s plus 20% of outstanding interest (interest would be 10% of o/s interest in case of death of all the promoters) as on the date of decision, for loans from Rs.5 lac to Rs.30 lac it would be principle plus expenses o/s plus 40% of o/s interest as on the date of decision. Likewise, for loans from Rs.30 lac and above it would be charged as principle plus expenses o/s plus 50% of o/s interest as on the date of decision and incase for loans where mortgaged assets are sole the formula would be principle plus expenses o/s plus 10% of o/s interest as on the date of sale. The relief on loans advanced to ex-servicemen and riot affected families for transport upto 2 vehicles prior to 1995 would be given the benefit of paying only the balance of principal amount of the loan.
In another decision, the Cabinet also approved to upgrade the post of Chief Coordinator in Udyog Sahayak to the rank of Additional Director with the same nomenclature for the implementation of Punjab industrial Facilitation Act, 2005 in the right earnest.

It may be recalled the state government had implemented the Punjab industrial Facilitation Act, 2005 to attract maximum investment in Punjab as lot of emphasis was being laid to enforce the effective system of granting clearances to entrepreneurs in a time bound manner under the Act.

The Cabinet also approved to withdraw of the termination letter issued on October 10, 2002 of 787 Panchayat Secretaries who are working in the Rural Department and Panchayats and whose services have been regularized by the council of ministers on January 1, 2009.

The Cabinet also gave approval for amending the Section 7 of the Rural Development Act, 1987 to promote better agriculture for higher production including agri business and agri processing, accelerate comprehensive rural development including the construction/repair of rural roads, streets, street lights, dharamshalas, panchayat ghars, canals, drains etc. The amended Act would also enable the establishment of government education and health infrastructure and government veterinary hospital and dispensaries in rural areas or up gradation and improvement thereof, besides carrying out such other purposes as may be considered necessary by the Board in the interest of and for benefit of producers and the persons paying the fee including the dealers.

The Cabinet also approved Punjab Stamp (dealing of under valued instruments) (first Amendment) Rules, 2009 for charging of stamp duty in case of allotment of immovable property by government/semi government organizations. The consideration amount fixed at the time of such allotment by these organizations would be deemed to be the collector’s rate and the stamp duty would be charged for registration of document upon the consideration amount fixed by the government/semi government organization, provided that document is got registered by the original allottee within three months from the issue of this notification or within three months from the payment of last regular installment as per schedule of payment of such allotment.

The Cabinet also resolved to accept in principle the recommendations of the Fifth Punjab Pay Commission w.e.f. January 1, 2006 immediately after the report was submitted by the Commission to the state government. The commission was likely to give its report within next week, the spokesman added.

PUNJAB CABINET APPROVES RS.2 LAC AS FINANCIAL ASSISTANCE
TO EACH FAMILY OF FARMERS & FARM LABOUR WHO COMMITTED SUICIDE

CABINET RESOLVES TO IMPLEMENT FIFTH PAY COMMISSION REPORT

CHANDIGARH MARCH 2, 2009

The Punjab Government today decided to provide financial assistance to the tune of Rs.2 lac each to the families of farmers and farm labour who committed suicide on account of farm indebtedness.

A decision to this effect was taken in the meeting of the Council of Ministers chaired by the Punjab Chief Minister Mr. Parkash Singh Badal here at Punjab Bhawan this morning.

Disclosing this here today a spokesman of the Punjab Government said that the Cabinet also decided to cover all such cases of suicide upto the year 2000 and thereafter and directed all the Deputy Commissioners to provide the financial assistance of Rs. 2 lac per family in case of farmers and farm labour who committed suicide.

The Cabinet also approved One Time Settlement (OTS) scheme in order to provide relief to the existing sick Industrial units under the proposed new industrial policy 2009. Under the scheme the state level financial institutions like Punjab State Industrial Development Corporation, Punjab Agro Industries Agro Corporation and Punjab Financial Corporation would rehabilitate the sick units through OTS.

Under the OTS, loan upto Rs.1 lac would be charged as principle plus expenses outstanding (o/s), in case of loan from Rs.1 lac to Rs.5 lac it would be principle plus expenses o/s plus 20% of outstanding interest (interest would be 10% of o/s interest in case of death of all the promoters) as on the date of decision, for loans from Rs.5 lac to Rs.30 lac it would be principle plus expenses o/s plus 40% of o/s interest as on the date of decision. Likewise, for loans from Rs.30 lac and above it would be charged as principle plus expenses o/s plus 50% of o/s interest as on the date of decision and incase for loans where mortgaged assets are sole the formula would be principle plus expenses o/s plus 10% of o/s interest as on the date of sale. The relief on loans advanced to ex-servicemen and riot affected families for transport upto 2 vehicles prior to 1995 would be given the benefit of paying only the balance of principal amount of the loan.

In another decision, the Cabinet also approved to upgrade the post of Chief Coordinator in Udyog Sahayak to the rank of Additional Director with the same nomenclature for the implementation of Punjab industrial Facilitation Act, 2005 in the right earnest.

It may be recalled the state government had implemented the Punjab industrial Facilitation Act, 2005 to attract maximum investment in Punjab as lot of emphasis was being laid to enforce the effective system of granting clearances to entrepreneurs in a time bound manner under the Act.
The Cabinet also approved to withdraw of the termination letter issued on October 10, 2002 of 787 Panchayat Secretaries who are working in the Rural Department and Panchayats and whose services have been regularized by the council of ministers on January 1, 2009.

The Cabinet also gave approval for amending the Section 7 of the Rural Development Act, 1987 to promote better agriculture for higher production including agri business and agri processing, accelerate comprehensive rural development including the construction/repair of rural roads, streets, street lights, dharamshalas, panchayat ghars, canals, drains etc. The amended Act would also enable the establishment of government education and health infrastructure and government veterinary hospital and dispensaries in rural areas or up gradation and improvement thereof, besides carrying out such other purposes as may be considered necessary by the Board in the interest of and for benefit of producers and the persons paying the fee including the dealers.

The Cabinet also approved Punjab Stamp (dealing of under valued instruments) (first Amendment) Rules, 2009 for charging of stamp duty in case of allotment of immovable property by government/semi government organizations. The consideration amount fixed at the time of such allotment by these organizations would be deemed to be the collector’s rate and the stamp duty would be charged for registration of document upon the consideration amount fixed by the government/semi government organization, provided that document is got registered by the original allottee within three months from the issue of this notification or within three months from the payment of last regular installment as per schedule of payment of such allotment.

The Cabinet also resolved to accept in principle the recommendations of the Fifth Punjab Pay Commission w.e.f. January 1, 2006 immediately after the report was submitted by the Commission to the state government. The commission was likely to give its report within next week, the spokesman added.

GIVE DIESEL TO FARMERS AT 25% BELOW MARKET PRICE, BADAL TO PM

Chandigarh, March 1, 2009

The Punjab Chief Minister Mr. Parkash Singh Badal today asked the Union Government to announce a onetime waiver of all agriculture loans and implement the recommendations of internationally acclaimed farm scientist, Dr. M.S. Swaminathan on fixing Minimum Support Price of farm products 50% above the basic costs of production.

The Chief Minister demanded that diesel being one the critical agricultural inputs, it should be made available to the farmers at 25% below the prevailing market price.

He also called for a comprehensive national policy on agriculture and said that in formulating this the views of the predominantly agricultural states should be taken and given due weightage.

In a letter to the Prime Minister Dr. Manmohan Singh, Mr. Badal called for “major long term initiatives on the part of Government of India are called for in order to provide a lasting solution to the farm crisis.”

Releasing the contents of the letter, Chief Minister’s Media Advisor Mr. Hardcharan Bains disclosed that Mr. Badal would raise these and several other farm related issues with Dr. Singh at a personal meeting as soon as the Prime Minister resumed duties.

Mr. Badal raised the issue of farm indebtedness and said, “The issue has assumed the proportions of a grave human tragedy. Although the problem is countrywide, its severity in Punjab is the in tensest. Because of the serious crisis that agriculture faces, farmers are driven to the extreme measure of suicides. The rise in the incidence of such suicides by the farmers and farm labourers is alarming and calls for a national response.”

Suggesting effective initiatives to fight the crisis, the Chief Minister said that as first step all agricultural loans should be waived as a onetime measure.

Secondly, the system of fixation of Minimum Support Price for agriculture produce must be rationalized in the light of the recommendations made by the, Dr. M.S. Swaminathan. According to these recommendations, farmers should be given the basic cost of production incurred by them, plus 50% as profit. The Chief Minister regretted that the whole system of arriving at cost-price equation was flawed and out of synch with the practices followed in other professions like business, trade and industry. For example, said Mr. Badal, the value of land, which is “the basic asset for farm operations, is not taken into account while arriving at the final figure of cost incurred by the farmer. Same is the case with human resource as labour. These should be factored into the final analysis for calculating economic in-puts. For this purpose, he said, farm labour should be deemed as a semi-skilled human resource.

Mr. Badal also suggested the setting up of a team of agro-economic experts to constantly update national agriculture data to enable the government to take decisions in tune with the prevailing realities.

BADAL CONDOLES THE PASSING AWAY OF NOTED KAVISHAR KARNAIL SINGH PARAS.

Chandigarh, March 1, 2009

Punjab Chief Minister Mr. Parkash Singh Badal today expressed profound grief and sorrow over the sad demise of Shiromani Kavishar S. Karnail Singh Paras, the father of former Union Minister and President Lok Bhalai Party Mr. Balwant Singh Ramuwalia. Mr. Paras, died after a brief illness on Saturday in private hospital at Moga.

In a condolence message the Chief Minister recalled the outstanding services of great veteran Punjabi bard singer who not only won accolades in the country but at international fora also. He was also a great freedom fighter who was imprisoned several times along with former Punjab Chief Minister Mr. Partap Singh Kiaron and former General Secretary of CPIM comrade Harkishan Singh surjeet. He said, “ In the death of Mr. Paras a void has been created in the literary and cultural circles which is impossible to be filled.”

Mr. Badal expressed his heartfelt sympathies with the members of the bereaved family and prayed to the Almighty to give courage and strength to bear this irreparable loss and grant peace to the departed soul.