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Top approvals by Cabinet Committee on Economic Affairs

May 17, 2018 18:38 IST
Top approvals by Cabinet Committee on Economic Affairs

Cabinet approves Corpus for Micro Irrigation Fund with NABARD

• The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on May 16, 2018 approved an initial corpus of Rs 5000 crore for setting up of a dedicated ‘Micro Irrigation Fund’ (MIF) with NABARD (National Bank for Agriculture and Rural Development) under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).

• The allocation of MIF under PMKSY will be made in installments of Rs 2000 crore and Rs 3000 crore in 2018-19 and 2019-20.

• NABARD will extend loans to state governments during this period.

• The lending rate under MIF has been proposed at 3% lower than cost of raising fund by NABARD.

• This cost shall be met from the ongoing scheme of PMKSY-PDMC by amending the existing guidelines

• The states will have to pay back the loans in 7 years, including grace period of two years.

• The total financial implication on interest subvention comes to about Rs 750 crore.

Benefits

The dedicated Micro Irrigation Fund would supplement the efforts of Per Drop More Crop Component (PDMC) of Pradhan Mantri Krishi Sinchayee Yojana in an effective and timely manner.

The fund will assist the states in mobilising resources for their initiatives including additional (top up subsidy) in implementation of PMKSY-PDMC to achieve the annual target of about 2 Million hectare/year during the remaining period of 14th Finance Commission under Per Drop More Crop Component of PMKSY as recommended by the Group of Secretaries.

CCEA approves enhancement of budget for implementation of Network for Spectrum for Defence Services

• The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has approved enhancement of budget by Rs 11,330 crore for Network For Spectrum (NFS) project for laying of alternate communication network for Defence Services for release of spectrum.

• The amount is over and above Rs13,334 crore already approved by Cabinet Committee on Infrastructure in July, 2012.

• The project, being implemented by Bharat Sanchar Nigam Limited (BSNL), will be completed in a period of 24 months.

Benefits

The NFS project will boost the communication capabilities of the Defence Forces in a major way leading to enhanced national operational preparedness. 

It will also have forward linkages to other related industries such as telecom equipment manufacturing and other telecommunication related services.

Cabinet approves development of Trunk Infrastructure Components for Integrated Multi Modal Logistics Hub known as ‘Freight Village’

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi on May 16, 2018 approved the following proposal of the Department of Industrial Policy and Promotion:-

• To develop ‘Freight Village’, an Integrated Multi Modal Logistics Hub (IMLH) in Nangal Chaudhary, Haryana on 886.78 acres of land to be implemented by the project Special Purpose Vehicle (SPV) in two phases.

• Financial sanction of Rs 1029.49 crore for development of Phase I and in principle approval for development of Phase II of the project. The expenditure on Phase I will comprise cost of entire land at Rs 266 crore including cost of the land to be used for development of Phase II.

• Investment of Rs 763.49 crore by National Industrial Corridor Development and Implementation Trust (NICDIT) which includes of Rs 266 crore as equity and Rs 497.49 crore as debt in the SPV.

• Bidding for trunk infrastructure development by SPV on EPC basis.

Benefits of the Project

  • The project has enormous economic value in terms of direct and indirect benefits and multiplier effects on the economy.
  • The economic benefits of the project will include creation of employment, reduction in fuel costs, boosts to exports, reduction in vehicle (trucks) operating cost, reduction in accident related costs, increase in collection of taxes by the State Government and reduction in pollution.
  • The proposed development of a Freight Village as Multi Modal Logistics Hub is estimated to generate over four thousand direct and six thousand indirect employments. The job creation will not be limited to core logistics facilities but would also entail opportunities for entire logistics supply chain.
 

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