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This is an archive article published on January 6, 2000

State shelves stable price scheme to mop up Rs 384 cr

MUMBAI, JANUARY 5: In its effort to support sagging economy'' of the State, Maharashtra Chief Minister today officially announced select...

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MUMBAI, JANUARY 5: In its effort to support “sagging economy” of the State, Maharashtra Chief Minister today officially announced selective scrapping of the stable prices scheme’ from January one, 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 mediapersons 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.

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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.

As reported by this newspaper in the last week of December 1999, hike in prices of three of the five essential commodities namely rice, wheat and sugar were also announced by the state government. However, there has been no hike in oil and dal prices.

Deshmukh said that the new prices are with effect from January 1, 2000, and prices of these three essential commodities have been hiked due to the economic crisis faced by the State. In the general category, price of wheat has been hiked from Rs 5.00 to Rs 8.00 per kg, rice from Rs 7.90 to Rs 10.85 per kg and sugar from Rs 9.05 to Rs 12.00 per kg. The new prices of wheat, rice and sugar in drought-prone areas are Rs 8.10, Rs 10.85 and Rs 12.00 from Rs 4, Rs 7.25 and Rs 9.05 respectively. In adivasi areas and for those lying below the poverty line, there have been no change in prices. The State Government today also announced that corporators in municipal councils and panchayats found guilty of aiding and abetting those involved in illegal and unauthorised constructions will be disqualified under the necessary law.

Chief Minister Vilasrao Deshmukh told mediapersons that an amendment has been made under section 44 of the Maharashtra Municipal Council, Nagar Panchayat Act, 1965. He further said that various other sections of the Act have been amended like section 71 where complaints of corruption against any offical of the councils or panchayats should be addressed to the respective chief officers.

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Deshmukh further said that honorarium and entertainment allowances of chairman of municipal councils have been hiked. For A’ class councils, honorarium has been increased from Rs 1000 to Rs 2000 and the entertainment allowance from Rs 3000 to Rs 5000. For B’ class councils, honorarium has been increased from Rs 750 to Rs 1500 and entertainment allowance from Rs 2500 to Rs 4500. It would be Rs 1000 and Rs 4000 for C’ class municipal councils from the earlier Rs 500 and Rs 2000, he said. Similarly, the meeting allowance of councilors has been increased from Rs 30 to Rs 75, Deshmukh added.

In another decision, the government curtailed the financial powers of mayor of Nagpur Municipal Corporation (NMC) limiting it to an annual expenditure of Rs one crore. Earlier, there was no limit 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.

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