In order to reduce the subsidy burden on account of Haj operations, the Government has proposed to increase the airfare per pilgrim from the existing Rs 12,000 to Rs 16,000 for the 2007 pilgrimage beginning this month. The Government also plans to include Varanasi as an additional embarking point for this year’s pilgrimage.A proposal to this effect is expected to be taken up at Friday’s Cabinet meeting where the Government would also discuss passing on the additional 50 Saudi Arabian Riyals airport tax on to the pilgrims. This tax has been introduced by the Saudi Government for the first time.The increase in airfare—which works out to 33 per cent—to be charged per pilgrim for the round trip to Jeddah/Madinah is based on the recommendations of the Group of Ministers with the caveat that the remaining cost of the pilgrimage would be met through Government subsidy and paid to Air India.It has been pointed out that the subsidy amount per pilgrim has increased from Rs 5,000 in 1994 to roughly around Rs 32,000 in December 2006. While fares have gone up during this period, the amount charged per pilgrim has “remained static” at around Rs 12,000 since 1994.During the same period, in terms of numbers, the number of Haj pilgrims under the subsidy scheme has increased from around 21,000 in 1994 to around 1,08,370 in 2006. Considering the increase in number of pilgrims taking the air route, the Government’s total subsidy expenditure has increased from roughly Rs 10.5 crore in 1994 to Rs 367 crore in 2006.According to calculations to be discussed by the Cabinet on Friday, assuming the number of pilgrims in 2007 to be around 1,10,000, the estimated cost for Haj 2007 is projected to be around Rs 519 crore. If the fare remains unchanged at Rs 12,000, the subsidy works out to around 387 crore. However, if the fare is increased to Rs 16,000, the subsidy amount works out to Rs 343 crore.The Allahabad High Court had last year restrained the Government “from providing funds or subsidy for Haj Yatra or any other pilgrimage of any community except for making arrangements to ensure law and order and other facilities which may be required for the safety of the people.”The Centre challenged the High Court stay in the Supreme Court and the apex court stayed the interim order of the High Court for Haj 2006. This year, the apex court again extended its earlier order for the year 2007 and asked the “High Court to endeavour to dispose of the writ petition at an early date”.Based on this, the Additional Attorney General pointed out that “since the Supreme Court has permitted the Union of India to go ahead with Haj Yatra 2007 any decision of the High Court, if it comes within this year, cannot affect the Haj Pilgrimage for Haj 2007”.Cabinet agenda •National Jute Board Bill 2006 •Flood Management Programme for Flood Control and River Management works across the country•Terms of Reference for the 13th Finance Commission•Amendments to the Acts of certain central universities •Amendments to AIIMS Act of 1956