CHENNAI: :The Cabinet on Monday decided to waive land tax, surcharge and water cess amounting to Rs 21.34 crore in respect of nearly nine lakh hectares of land spread across 11 districts that were battered by heavy rains last year. The Cabinet meeting chaired by chief minister M Karunanidhi also decided to write off sales tax and penalty amounting to Rs 90.60 crore due on inter-state sale of coconuts between April 1, 2002 and September 5, 2006.

An official press release said rains had damaged crops in Ariyalur, Cuddalore, Kancheepuram, Nagapattinam, Perambalur, Pudukkottai, Thanjavur, Tiruchi, Tiruvallur, Tiruvarur and Karur districts in 2008. The land tax waiver, along with revenue due on the land under different heads, would be fully waived, it said.

The Cabinet, which discussed the price situation, decided to continue with the special public distribution scheme under which commodities are sold at a subsidised price. It also decided to set up a task force to study means to increase the production of grains, cereals, oilseeds and other crops in which production falls short of the demand.

The Cabinet also approved the grant of a 99-year lease on an extent of 65 acres to the Film Employees Federation of South India 50 acres for constructing houses and 15 acres for common use of its members and 10 acres for a housing colony for the TN Producers’ Association. While the land to FEFSI would have a lease amount of Rs 1,000 per year, the land granted to the producers’ body would attract a lease of 3.5% of its value.