The review of foreign direct investment norms in the telecom sector is not listed on the agenda for the Cabinet meeting tomorrow. The issue is likely to be taken up after Prime Minister Manmohan Singh returns from his week-long tour to the US.The Government’s largest ally, the Left, is opposed to the hike in FDI in telecom to 74 per cent from 49 per cent, but the Finance Ministry wants to stick to it.On the agenda is an ordinance to repeal the controversial anti-terror law POTA before it lapses on its own next month. The Government is likely to provide a sunset period of one year during which all pending cases pertaining to POTA would be reviewed by various committees.The draft of the ordinance, by which POTA would be abolished, has been cleared by the Law Ministry and was to be introduced in the last Parliament session. It provides for laws necessary to deal with acts of international terrorism through inclusion in the Unlawful Activities (Prevention) Act, 1967.The Cabinet will also take up an increase in the dearness allowance and pensionary benefits for Central government employees by 3 per cent to 14 per cent. The inflation-indexed DA is for the jump in the wholesale price index for the January-June period.It will also consider the setting up of a commission to improve the country’s output from the manufacturing sector, both in volume and the quality. The National Manufacturing Competitive Council, which would include experts from the public and private sectors, would suggest ways to integrate India’s industrial output to the global trade.Another issue is increasing the price of foodgrain sold through fair price shops across the country. Linked to the economic prices, the proposed hike for wheat works out to 30 paise more per kg for Antyodaya Anna Yojana beneficiaries, 45 paise for Below Poverty Line (BPL) families and 40 paise for Above Poverty Line (APL) families. For rice, the hike is likely to be 20 paise, 65 paise and 50 paise, respectively.Currently, Antyodaya Anna beneficiaries and those in BPL and APL segments pay Rs 2, Rs 4.15 and Rs 6.10 per kg of wheat; they pay Rs 3.00, Rs 5.65 and Rs 8.30 for rice, respectively. The decision to index APL prices at 70 per cent of the economic price and BPL prices at 50 per cent was taken by the Cabinet when the prices were last revised in 2000.
