The State Cabinet, which met here today under the chairmanship of the Chief Minister Shri Shivraj Singh Chouhan decided to make it compulsory to have a license for money lending. The loans given by non-licensee money lenders will be nullified by making a law regarding this.
Legal action would be taken to ascertain the rate of interest on farm loans given by licence holding money lenders. The Madhya Pradesh Money Lending Act 1934 will be amended to effect the new provisions.
The Cabinet decided to convert fixed term loans given by the state government to power companies into perpetual loans to make them financially viable. It was also decided to fill 139 posts of Exercise Inspectors by direct recruitment. A number of important decisions were taken.It may be noted here that small farmers suffer exploitation by non-licensee money lenders and in many cases they repay more than the principal amount and still remain unable to clear debts. Keeping this in view, the Cabinet decided that all loans given by non-licensee money lenders would be deemed nullified under the new provisions of Money Lending Act 1934. Such loans could not be recovered through any court. It has also been decided to fix rate of interest on farm loans given by licensee money lenders.
No money lender would be able to take rate of interest at his wish. He will have to abide by the rate of interest fixed by the state government. The State Government will notify rate of interest from time to time. Money lenders will have give loans at the notified rate of interest. It may be mentioned here that the Chief Minister Shri Chouhan had made an announcement regarding this on January 15, 2011 last.
The cabinet approved financial reconstruction proposal for making power companies financial viable. According to the financial reconstruction proposal, the fixed term loans given by the State Government to power distribution companies will be converted into perpetual loans. Lowering the rate of interests was also agreed. It was decided to keep the prevalent rate of interests on working capital at par with the base rate of state bank of India.
The State Cabinet has also decided to convert electricity charge and cess payable to the State Government by power companies from monthly to perpetual loans. Besides, there will be no payment of electricity bills from Sardar Sarovar Project for coming three years. Decisions regarding converting the power dues into perpetual loans and lowering of rate of interest payable on them were also taken up.
This decision will not only help the power companies become financial viable but also help distribution companies reduce their distribution losses and improve revenue collection efficiency. This will improve faster the financial health of power companies.
Power Purchase Agreement Approved
In order to encourage private sector for establishment of thermal power project, the state government signed agreements with the private sector companies. The state government is assisting them for requisite land acquisition, land allotment, water allocation, coal allocation and environmental clearance. The private sector companies will provide 5/7.5/10 percent of total power generation to the State at the variable rate decided by the Regulatory Commission.
The power purchase agreement has been finalized after discussions with the companies and studying the conditions of agreement, implementation and standard power purchase agreements used and issued by the Union Government. The Cabinet approved the Power Purchase Agreement. The Madhya Pradesh Power Trading Company Limited has been authorised for implementation of the Agreement.
It is worth recalling here that the electricity obtained at variable rate is comparatively less expensive and therefore in the interest of power consumers of the state.
The state cabinet accorded sanction to the power purchase agreement from Reva Thermal Power Project of NHDC, which is installing 1320 MW capacity thermal power project in Khandwa district. The state will get power allocation through Government of India at the tariff decided by the Central Electricity Regulatory Commission. It is also noticing here that the MP Power Trading Company Limited and NHDC have entered into power purchase agreement on January 4, 2011 for purchasing electricity to be generated by the project.
Direct Recruitment of 139 Excise Constables
According to another important decision, 139 posts of Excise Constables would be recruited in coming three years. The recruitment will take place after a long time.
Police Chowky at Nigri (Singrauli)
In view of rapid industrialization around Sarai in Nigri police station in Singrauli district, the state cabinet decided to set up new police chowki. This would be manned by an Assistant Sub Inspector, two head constables and eight constables. The cabinet approved the proposal of creating these posts. The expenditure on the new police chowki will be borne by JP Super Thermal Power Plant.
The cabinet approved an orders of the Chief Minister regarding 50 percent exemption from entertainment tax for two cricket matches under IPL played at Indore on May 13 and 15, 2011. The decision has been taken in view of economic growth and increase in trading activities due to organizing of cricket matches.
According to another decision, deputy commission commercial taxes instate of deputy commission excise will be nominated in the permanent committee chaired by the divisional commissioner for giving exemption in taxes under the policy meant for promoting multiplexes.
The policy for promoting multiplexes is being implemented in the state. The Madhya Pradesh Luxury, Entertainment and Advertisement Tax Bill 2011 has become effective. It will be administered by commissioner, commercial taxes. Earlier Madhya Pradesh Entertainment Tax and Advertisement Tax Act 1936 was administered by Excise Commissioner.
The cabinet has also decided to appoint on contractual basis for one year Shri BS Parihar, retired superintending engineering (electricity) Water Resources Department in the Narmada Valley Development Authority.