The state cabinet at its meeting held here on Saturday presided over by chief minister Mayawati took some important decisions which include tax exemption to all types of seeds under VAT and establishment of urban transport directorate.

The cabinet has approved the proposal regarding tax exemption on all types of seeds including oil seeds under Value Added Tax (Vat) Act.

After implementation of the VAT system in the state, all types of seeds were exempted from the tax in the list of articles exempted from tax but oil seeds were not included in it.

The cabinet has also given a nod to a proposal for running city buses in seven cities, including establishment of Urban Transport Directorate with a view to improving urban transport in the state.

According to the cabinet decision, a detailed project report regarding plying of buses under JNNURN in cities would be prepared on the conditions approved by the central committee. Under city bus service, 200 buses would be plied in Agra, 300 buses in Lucknow, 150 buses in Varanasi, 150 buses in Meerut, 300 buses in Kanpur, 60 buses in Mathura and 150 buses in Allahabad.