The Cabinet Committee on Economic Affairs on Thursday discussed price situation in the country. Official sources said that several measures to contain the inflation were discussed in the meeting. The CCEA took place after the food inflation surged to 10 week high of 14.44 per cent. This follows rise in the prices of vegetables, particularly onions, fruits and cereals. This is the fifth consecutive week when the food inflation has increased.

The Cabinet Committee on Economic Affairs also approved the infusion of 1200 crore rupees as Equity in Air India Limited for its revival. It has directed Air India Management to work towards rationalization of wage structure. The government had earlier released 800 crore rupees in February this year as Equity induction in the National Aviation Company of India Limited, now Air India Limited for its revival plan. The infusion of enhanced equity fund would give much needed impetus to the national career towards its revival.

In another decision, the CCEA approved provision of 404 crore rupees and additional amount of 996 crore rupees for meeting pending interest subvention claims of banks as requested by the Reserve Bank of India. The measure will mitigate the effects of global meltdown across labour intensive export sectors and help them to be internationally competitive and achieve their export targets.

The CCEA also revised the norms for financial assistance for Post-matric scholarship for students belonging to Scheduled Castes for studies in India. The parental annual income ceiling for eligibility has been enhanced from one lakh rupees to two lakh rupees per annum. The CCEA also approved the revision in the maintenance and other allowances besides regrouping of courses. It also approved an estimated increased expenditure of 7136 crore rupees against the existing plan outlay of 4082 crore rupees during the Eleventh Plan. Additional committed liability on account of the revision will be passed on to the statement governments / Union territory administrations at the end of 12th Five Year Plan period.

The Cabinet Committee on Economic Affairs on Thursday approved the revised cost estimate of Tuirial Hydro Electric Project of 60 Megawatt capacity in Mizoram by NEEPCL. The revised cost estimate stands at 913.63 crore rupees. The project will help Mizoram and north eastern region in mitigating the power shortage with clean energy.

Apart from benefits due to power generation, the storage created due to project would contribute to economic development through promotion of fisheries, navigation and tourism. The project will improve the hydro-thermal mix in the north eastern region and the country.