New Delhi, June 23: The cabinet today exempted jute units in the Northeast from paying any cess on finished products.

“To help jute units in the northeastern states, the cabinet has approved the textiles ministry’s proposal to exempt them from the cess for a specified period,” defence minister Pranab Mukherjee told reporters after the meeting.

“This will also help economic growth in the region and facilitate setting up of new jute units,” he added.

A bill would soon be introduced in Parliament to amend the Jute Manufacturers’ Cess Act, 1983, to grant the exemption.

The cabinet has also approved a proposal to amend the Central Warehousing Corporation Act, 1962, granting the corporation more autonomy and allowing it to appoint three more functional directors on its board.

It will also allow the corporation to borrow from scheduled banks.

The government has approved a joint venture between state-run Hindustan Aeronautics (HAL) and France’s Snecma Motors. The company will make aircraft engine components.

Snecma will buy components from the firm, which will have an initial investment of Rs 50 crore.

“The new firm will manufacture engines components for civil aircraft,” Mukherjee said.