NEW DELHI, Aug 6: The cabinet has approved a three to five-year tax holiday for units in 123 industrially backward districts across the country with effect from October 10, 1994, an official announcement said here today.

A decision to this effect was taken at a cabinet meeting presided over by Prime Minister I K Gujral here last night.

The cabinet has also given approval for the formation of Central and state electricity regulatory authorities. The bills would be introduced during the current session of Parlianment, minister of state for power and science and technology Y K Alagh said.

The Central Regulatory Authority would have a chairman and assisted by four members. The state bodies are to have three members in all. Of these, 53 districts are proposed to be placed under category `A' for the purpose of tax deduction.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.