The Himachal Pradesh government today decided to cut VAT on Diesel from 14 per cent to 9.70 per cent and bring down VAT on kerosene to zero with a view to providing relief to consumers from the recent price hike on petroleum products.

Officials in the state government said diesel will be cheaper by Rs 1.60 per litre after lowering of VAT.

The decision was taken at a meeting of the state cabinet presided over by Chief Minister Prem Kumar Dhumal.

The cabinet, in another decision, also decided to procure mango under market intervention scheme and fixed Rs 4.60 per kg and Rs 5.25 per kg as rates for `seedling and `grafted varieties of mango fruit, respectively.

The state government PSUsHPMC, HIMFED and HP Agro Industries Corporationwould be the designated procurement agencies. About 34 mango fruit procurement collection centres would be opened which, if need be, will be increased as per the demand. The procurement will take place between July 1 and August 15.

The cabinet approved policy guidelines to provide compensation to farmers for damage to their crops during construction activities by hydro-electric projects in the state as relief and rehabilitation measure.

Other decisions

Government will incorporate one female member in the state review board constituted to consider cases relating to pre-mature release and mercy petitions of the prisoners and also consider the cases relating to convicts undergoing life and short-term imprisonment.

Approved four cases for pre-mature release and two cases of mercy petition to forward the same to the governor for approval.

Granted approval for opening seven ayurvedic health centres in Shimla, Bilaspur, Hamirpur, Kullu and Solan.