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Govt to set up 3.2 million t urea capacity; Brand Equity Fund to be raised to Rs 5 billion

The government tonight announced setting up 3.2 million tonnes of new capacities of urea fertilizers in the next three years and decided not to increase the DAP and MOP fertilizer prices in the current fiscal.

The step, it said, would keep prices under check.

At the same time, it also announced release of ten per cent additional instalment of Dearness Allowance to the Central government employees and Dearness Relief to the pensioners with effect from January 1, 1999 at an outgo of Rs 46 billion to the exchequer.

The decisions came at a session of the Cabinet and Cabinet Committee on Economic Affairs this evening.

The meeting also agreed in principle to approve the proposal of enactment of a comprehensive legislation for energy conservation. It was also decided to bring the Kanpur potable water project, being set up at at a cost of Rs 900 million, under the Central assistance scheme on 1:1 basis.

In Bangalore early today, Union Commerce Minister Ramakrishna Hegde said the Corpus Fund for Brand Equity Promotion would be increased from Rs 1.2 billion to Rs 5 billion and regional boards of trade would be set up to boost exports.

Participating in an interactive session with members of the Greater Mysore Chamber of Industry here, he said the ministry was planning to set up the boards in the four regions.

Emphasising the need for improving the quality of products and branding them for export, he said the government had decided to add another Rs 3.80 billion to the Brand Equity Fund. Brand equity promotional activities would be taken up from the interest accruing from the Corpus Fund.

UNI

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