CM shelves stable price scheme to save Rs 384 cr

MUMBAI, JANUARY 5: In its effort to support sagging economy' of the State, Chief Minister on Wednesday officially announced selective scr...

MUMBAI, JANUARY 5: In its effort to support sagging economy’ of the State, Chief Minister on Wednesday officially announced selective scrapping of the stable prices scheme’ from January 1, 2000, which would save the exchequer Rs. 384 crore annually.

The scheme for availability of essential commodities through public distribution system (PDS) would, however, remain in force in tribal areas of the State, Deshmukh told reporters after a cabinet meeting.

“It is one of the harsh and unpleasant decisions taken by the Government to revive the sagging economy of the State,” he said.

The previous Shiv Sena-BJP government had initiated the scheme in 1995 promising that prices of five essential commodities distributed through fair price shops would not be hiked.

The Cabinet had also approved making of necessary law for disqualifying corporators indulging in illegal constructions or abetting them, Deshmukh added.

By another decision, it curtailed the financial powers of Mayor of Nagpur Municipal Corporation (NMC) limiting it to an annual expenditure of Rs one crore. Powers of the mayor have now been limited to Rs. one crore. Earlier, there was no cap on the annual expenditure powers of the Mayor.

The NMC had been given powers for summary eviction and removal of encroachments from its land, the Chief Minister said.