The territorial administration will start negotiations with Japan International Cooperation Agency (JICA) to obtain a loan of ₹746 crore to strengthen power transmission and distribution networks in all the four regions of the Union Territory.

The Central Electricity Authority (CEA) has given its nod for getting loan from JICA. The fund would be utilised to strengthen the power network, including replacement of transformers with the intent to reduce transmission and distribution loss.

The fund would be utilised to lay underground power cables, the Chief Minister said during his post-Cabinet briefing on Friday. The CEA had given its nod for approaching JICA to fund the proposed 30 mega watt solar power plant in the Union Territory.

Liquor to cost more

The Cabinet has decided to increase excise duty without affecting the interest of business fraternity. The proposed increase would cost ₹2 to ₹3 more per bottle. The present price of Indian Made Foreign Made Liquor in Puducherry was 60% lower than that of Tamil Nadu, the Chief Minister said.

The government had decided to provide financial assistance to farmers to procure milch cow and subsidise fodder procurement.

The aim was to increase domestic milk production from the existing 60,000 litres a day. The daily requirement was about 2 lakh litres, Mr. Narayanasamy added.

The Cabinet decided to introduce a new programme in the name of former Prime Minister Indira Gandhi to provide interest subvention of 3% to self-help groups for loans taken from nationalised banks.

The Chief Minister said a detailed response would be formulated after studying the Union Budget. “It seems several schemes have been announced in the Budget. But I failed to understand from where they are going to get funds. The country was facing slowdown in economy,” he said.