In a major move on Tuesday, the state government announced it would "modify" the VAT on diesel so as to bring down its selling price in the state. It also OK'd the release of funds for payment of salaries to varsity teachers and non-teaching staff.
"We have decided to modify the prevailing rate of VAT on diesel. The state government will take a decision on the new VAT rate within two days," chief minister Nitish Kumar announced after the state cabinet meeting on Tuesday.
The cabinet meet approved an education department's proposal to sanction a sum of Rs 1081.69 crore for payment of salaries, dearness allowance and pension of teachers and non-teaching employees of the state's nine universities. It also approved an energy department's proposal to sanction a grant of Rs 680 crore to Bihar State Electricity Board (BSEB).
"Of the Rs 680 crore, Rs 540 crore will be paid to the NTPC Ltd to clear its outstanding energy dues while Rs 140 crore will be spent on meeting the BSEB's financial loss and clearing the energy purchase bills of other power-generating organizations," cabinet secretariat department's principal secretary Ravikant told newsmen.
The meeting also approved another proposal of energy department to provide Rs 26.12 crore as loan to the BSEB during the current financial year for construction of a transmission system for the electricity generated at the Kanti power plant.
The cabinet also gave nod to a minor water resources department's proposal to grant administrative approval of Rs 210.33 crore for implementation of 129 irrigation projects in Jamui and Nawada districts under the Centre-sponsored Accelerated Irrigation Benefit Programme.
It also approved a law department's proposal for extension of the Bihar State Law Commission's tenure for another three years effective from September 7, 2012 and appointment of Justice (retd) Abhijeet Sinha as its chairperson.