New Delhi: In a bid to cover up the losses incurred by the Jute Corporation of India owing to Minimum Support Price (MSP) operation, the Central government on Wednesday decided to give financial assistance to it.

In the meeting of Cabinet Committee on Economic Affairs (CCEA) here on Wednesday, it was decided to grant a subsidy of Rs 55 crore to the Jute Corporation of India every year with an aim to manage the difference between the expenditure incurred on MSP raw jute upto the point of sale and sale price of MSP raw jute.

While the assistance will be provided from jute year 2011-12, the Jute Corporation will also be granted subsidy for all those years when there is no MSP operation.

Besides this the committee also approved the release of Rs 6.59 crore balance amount due for the year 2010-11.

In a bid to facilitate the operations of the Jute Corporation of India, the committee further approved the proposal of one-time government guarantee upto Rs150 crore to public sector banks for availing of working capital loan facility. This will be applicable for 10 years with effect from the financial year 2011-12.

In another decision, the CCEA also gave green signal to the Rs 4, 500 crore foreign direct investment proposal of Haryana based Grid Equipment Limited.

Several other FDI proposals of companies like Energy Grid Automation Transformers and Switchgear India Limited also received approval from the committee.

Besides, the committee also gave go-ahead to the proposal of Singapore based Walt Disney Company to increase their 48.02 percent equity in UTV Software Communications. This will bring Rs 8, 250 crore foreign investment in the country.