Now, NIFT in Rae Bareli

Denying that the decision has anything to do with the ensuing elections, a senior official said the UP government had been demanding such a centre for long.

The Union Cabinet also gave an in-principle nod to the Special Incentive Package Scheme for attracting semiconductor fabrication and other micro and nano-technology manufacturing industries to set up base in India. The package would be available till March 31, 2010. However, the details of the threshold limits and incentives will be worked out by the Cabinet Secretary and the Prime Minister will take a final call on them.

The Cabinet also cleared the setting up of Central Drugs Authority of India as an autonomous regulator that will ensure uniform drug licensing norms across the country. There will be a five-year transition phase for moving to the central licensing system from the current system where the state Food and Drug Authorities have the final say.