The Centre announced a hike in the support price of paddy marginally by Rs 60 to Rs 1,310 per quintal for the 2013-14 crop year, but the prices of some pulses and oilseeds were increased substantially by up to Rs 450 per quintal to boost output and reduce import dependence.

Briefing the media about the minimum support price (MSP) of 14 agricultural items for 2013-14 crop year (July-June), Finance Minister P Chidambaram said on Friday “Except for two items, we have accepted the CACP proposal. In case of bajra and tur, we have improved upon the recommendations of the Commission for Agriculture Costs and Prices (CACP).”

While MSP for common paddy has been raised to Rs 1,310 from Rs 1,250 per quintal, the support price of grade ‘A’ variety of paddy has been hiked by Rs 65 to Rs 1,345/quintal.

Sowing of paddy, the main kharif crop, begins with the onset of monsoon in June and harvesting starts in October.

The normal monsoon forecast by the Met Department for this year, coupled with hike in MSP, is expected to boost paddy area and productivity.

CCEA has also approved Rs 100 hike in cotton MSP to Rs 3,700 per quintal (medium staple) and Rs 4,000 per quintal (long staple).

In pulses category, the MSP of tur has been raised by Rs 450 to Rs 4,300 per quintal, while that of moong by Rs 100 to Rs 4,500 per quintal.

However, the support price of urad has been retained at last year’s level at Rs 4,300 per quintal.

In the oilseeds category, CCEA has approved a hike of Rs 300 in the MSP of soyabean (black) to Rs 2,500 a quintal; Rs 320 rise in MSP of soyabean (yellow) to Rs 2,560 per quintal. The MSP of sesamum seeds increased by Rs 300 per quintal at Rs 4,500.

The support prices of sunflower seed and niger seed have been kept unchanged at Rs 3,700 per quintal and Rs 3,500 per quintal, respectively.

Govt clears YES Bank’s proposal to raise Rs 2,650 cr

The government has cleared the proposal of private sector lender YES Bank to raise Rs 2,650 crore through qualified institutional placement (QIP) from overseas.

The approval, given by the Cabinet Committee on Economic Affairs (CCEA), would result in foreign investment amounting to about Rs 2,650 crore being received in the country, Finance Minister P Chidambaram told reporters in New Delhi on Friday.

YES Bank proposes to increase the foreign equity participation upto 60 per cent through a QIP of its equity shares to eligible non-resident investors.

Qualified institutional placement is a capital raising tool for listed Indian companies.

The proposal was cleared by the Foreign Investment Promotion Board (FIPB) in April, but since the investment was of more than Rs 1,200 crore, a CCEA nod was required which was given on Thursday.

Earlier, the bank had got its board approval to raise up to USD 500 million.

YES Bank posted 33.2 per cent jump in net profit at Rs 362.15 crore for the fourth quarter ended 31st March 31, 2013.

Total income of the bank rose to Rs 2,667.03 crore in January-March quarter as compared to Rs 2,051.4 crore in the same period of previous fiscal.

Yes Bank’s shares were trading at Rs 452.35 at BSE, up 1.9 per cent from Thursday’s close.

Govt clears 7.64% NFL stake sale; to bring in over Rs 130 cr

Government has given its go ahead for 7.64 per cent disinvestment in the National Fertilisers Ltd (NFL), which is expected to fetch around Rs 130 crore to the exchequer.

The Cabinet Committee on Economic Affairs (CCEA) cleared the 7.64 per cent or 3.74 crore share proposal at its meeting on Thursday.

Government holds 97.64 per cent stake in the company and the disinvestment is being done to make it complaint with Sebi norms, Finance Minister P Chidambaram said on Friday while briefing on the CCEA decisions.

As per Sebi norms, a public sector listed company should have 10 per cent public float by August 08, 2013. At the current market price of Rs 34.65 a piece, the stake sale could fetch over Rs 130 crore to the exchequer.

The company’s shares were trading at Rs 34.65 a piece on BSE, up 2.21 per cent from Thursday’s close.

The Department of Disinvestment (DoD) had approached the CCEA for stake sale in the company.

An inter-ministerial panel, headed by Disinvestment Secretary, had cleared NFL stake sale last month.

The paid-up equity capital of the company, as on 31st March, 2012, was Rs 490.58 crore.

The stake sale in NFL is part of DoD’s effort to meet the minimum 10 per cent public shareholding norm as stipulated by market regulator Sebi for PSUs.

The government uses the OFS route, popularly known as auction method, to divest its stake in PSUs that come under top 100 companies in terms of market capitalisation.

It has already used the route to sell stake in Oil India, NTPC, NMDC and Hindustan Copper during last fiscal.

The government proposes to raise Rs 40,000 crore by way of disinvestment in the current fiscal.