Historic decisions taken by Cabinet to boost infrastructure across sectors

Published By : Admin | June 24, 2020 | 16:09 IST
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Rs 15000 crore Animal Husbandry Infrastructure Development Fund set-up
Kushinagar Airport declared as an 'International Airport' – will boost tourism & provide impetus to economic development in the region
Additional investment for further development of Shwe oil & gas project in Myanmar approved – will assist strengthening of Energy Bridges with neighbours
 

The Union Cabinet chaired by Prime Minister Shri Narendra Modi met on 24th June, 2020 and took several landmark decisions, which will go a long way providing a much needed boost to infrastructure across sectors, which are crucial in the time of pandemic.

1.Animal Husbandry Infrastructure Development Fund set-up

Background :

In pursuance of recently announced Atma Nirbhar Bharat Abhiyan stimulus package, Cabinet today approved setting up of Animal Husbandry Infrastructure Development Fund (AHIDF) amounting to Rs. 15000 crore.

Government had earlier approved the Dairy Infrastructure Development Fund (DIDF) worth Rs. 10,000 crores for incentivizing investment by cooperative sector for development of dairy infrastructure. However, the MSMEs and Private companies also need to be promoted and incentivized for their participation in processing and value addition infrastructure in the animal husbandry sector.

The AHIDF approved today would incentive infrastructure investments in dairy, meat processing and animal feed plants. The eligible beneficiaries under the Scheme would be Farmer Producer Organizations (FPOs), MSMEs, Section 8 Companies, Private Companies and individual entrepreneur with only 10% margin money contribution by them. The balance 90% would be the loan component to be made available to them by scheduled banks.

Government of India will provide 4% interest subvention to eligible beneficiaries from the Aspirational Districts and 3% for beneficiaries from other Districts. There will be 2 years moratorium period for repayment of loan with 6 years repayment period thereafter. Government of India would also set up a Credit Guarantee Fund of Rs. 750 crore to be managed by NABARD which would provide credit guarantee to the projects which are covered under the MSME defined ceilings. Guarantee Coverage would be upto 25% of the Credit facility of borrower.

Benefits :

There is huge potential waiting to be unlocked through private sector investment in animal husbandry sector. The AHIDF with the interest subvention scheme for private investors will ensure availability of capital to meet upfront investment required for these projects and also help enhance overall returns/ pay back for investors. Such investments in processing and value addition infrastructure by eligible beneficiaries would also promote exports.

Since almost 50-60% of the final value of dairy output in India flows back to farmers, the growth in this sector can have significant direct impact on farmer’s income. Size of dairy market and farmers’ realization from milk sales is closely linked with development of organized off-take by cooperative and private dairies. Thus, investment of Rs. 15,000 crores through AHIDF would not only leverage several times more private investment but would also motivate farmers to invest more on inputs thereby driving higher productivity leading to increase in farmers income. The measures approved today through AHIDF would also help in direct and indirect livelihood creation for about 35 lakh persons.

 

2.Declaration of Kushinagar Airport in UP as International Airport

Background :

Kushinagar is an important Buddhist pilgrimage site, where Gautama Buddha attained Mahaparinirvana after his death. It is regarded as a very sacred Buddhist pilgrimage centre where Buddhists pilgrims from all over the world come for pilgrimage. Kushinagar is dotted with several  other Buddhist sites in the nearby surroundings like Sravasti (238 km), Kapilvastu (190 km) and Lumbini (195 km) that makes it an attraction for both followers and visitors alike. Kushinagar already serves as the presenting site for Buddhist circuit pilgrimage spanning across India and Nepal. Union Cabinet has approved the proposal to declare Kushinagar Airport in Uttar Pradesh as an International Airport.  

Benefits :

The Buddhist Circuit is a key pilgrimage destination for 530 million practicing Buddhists across the globe. Hence declaration of Kushinagar Airport as an 'International Airport' will offer improved connectivity, wider choice of services at competitive costs to the air-travellers resulting in boosting of domestic/international tourism and economic development of the region.

On any given day, around 200-300 devotees from Thailand, Cambodia, Japan, Burma, etc are coming and offering their prayers at Kushinagar. However, this International tourist destination has no direct connectivity, which has been a long pending demand of the visitors.

Direct international connectivity to Kushinagar would substantially increase the number of foreigners and domestic tourists visiting  Kushinagar, which will also provide impetus to economic development of the region. The international airport is expected to boost the already growing tourism and hospitality ecosystem in the country.

3.Additional investment by OVL towards further development of Shwe oil & gas project in Myanmar approved

Background :

ONGC Videsh (OVL) has been associated with exploration and development of Shwe gas project in Myanmar since 2002, as part of a consortium of companies from South Korea, India and Myanmar. The Indian PSU, GAIL, is also a co-investor in this project. OVL has invested US$ 722 million (about Rs 3949 crores, as per corresponding average annual exchange rate) till 31st March 2019 in this project. The first gas from Shwe Project was received in July 2013 and plateau production was reached in December 2014. The Project has been generating positive cash flows since FY 2014-15. The Cabinet Committee on Economic Affairs today approved additional investment of US$ 121.27 million (about Rs 909 crores; 1 US$ = Rs 75) by ONGC Videsh Ltd (OVL) towards further development of Shwe oil & gas project in Myanmar.

Benefits :

The participation of Indian PSUs in oil & gas exploration and development projects in neighbouring countries is aligned with India’s Act East Policy, and also part of India’s strategy to develop Energy Bridges with its neighbours in addition to further strengthening India’s energy security needs.

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Cabinet approves constitution of world’s largest grain storage plan in cooperative sector
May 31, 2023
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The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, today approved the constitution and empowerment of an Inter Ministerial Committee (IMC) for facilitation of the “World’s Largest Grain Storage Plan in Cooperative Sector” by convergence of various schemes of the Ministry of Agriculture and Farmers Welfare, Ministry of Consumer Affairs, Food and Public Distribution and Ministry of Food Processing Industries.

In order to ensure time bound and uniform implementation of the Plan in a professional manner, Ministry of Cooperation will implement a pilot project in at least 10 selected Districts of different States/ UTs in the country. The Pilot would provide valuable insights into the various regional requirements of the project, the learnings from which will be suitably incorporated for the country-wide implementation of the Plan.

Implementation

An Inter-Ministerial Committee (IMC) will be constituted under the Chairmanship of Minister of Cooperation, with Minister of Agriculture and Farmers Welfare, Minister of Consumer Affairs, Food and Public Distribution, Minister of Food Processing Industries and Secretaries concerned as members to modify guidelines/ implementation methodologies of the schemes of the respective Ministries as and when need arises, within the approved outlays and prescribed goals, for facilitation of the ‘World’s Largest Grain Storage Plan in Cooperative Sector’ by creation of infrastructure such as godowns, etc. for Agriculture and Allied purposes, at selected ‘viable’ Primary Agricultural Credit Societies (PACS).

The Plan would be implemented by utilizing the available outlays provided under the identified schemes of the respective Ministries. Following schemes have been identified for convergence under the Plan:

(a) Ministry of Agriculture and Farmers Welfare:

Agriculture Infrastructure Fund (AIF),
Agricultural Marketing Infrastructure Scheme (AMI),
Mission for Integrated Development of Horticulture (MIDH),
Sub Mission on Agricultural Mechanization (SMAM)
(b) Ministry of Food Processing Industries:

Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME),
Pradhan Mantri Kisan Sampada Yojana (PMKSY)
(c) Ministry of Consumer Affairs, Food and Public Distribution:

Allocation of food grains under the National Food Security Act,
Procurement operations at Minimum Support Price
Benefits of the Plan

The plan is multi-pronged – it aims to address not just the shortage of agricultural storage infrastructure in the country by facilitating establishment of godowns at the level of PACS, but would also enable PACS to undertake various other activities, viz:
Functioning as Procurement centres for State Agencies/ Food Corporation of India (FCI);
Serving as Fair Price Shops (FPS);
Setting up custom hiring centers;
Setting up common processing units, including assaying, sorting, grading units for agricultural produce, etc.
Further, creation of decentralized storage capacity at the local level would reduce food grain wastage and strengthening food security of the country.
By providing various options to the farmers, it would prevent distress sale of crops, thus enabling the farmers to realise better prices for their produce.
It would hugely reduce the cost incurred in transportation of food grains to procurement centres and again transporting the stocks back from warehouses to FPS.
Through ‘whole-of-Government’ approach, the Plan would strengthen PACS by enabling them to diversify their business activities, thus enhancing the incomes of the farmer members as well.
Time-frame and manner of implementation

National Level Coordination Committee will be formed within one week of the Cabinet approval.
Implementation guidelines will be issued within 15 days of the Cabinet approval.
A portal for the linkage of PACS with Govt. of India and State Governments will be rolled out within 45 days of the Cabinet approval.
Implementation of proposal will start within 45 days of the Cabinet approval.
Background

The Prime Minister of India has observed that all out efforts should be made to leverage the strength of the cooperatives and transform them into successful and vibrant business enterprises to realize the vision of “Sahakar-se-Samriddhi”. To take this vision forward, the Ministry of Cooperation has brought out the ‘World’s Largest Grain Storage Plan in Cooperative Sector’. The plan entails setting up various types of agri-infrastructure, including warehouse, custom hiring center, processing units, etc. at the level of PACS, thus transforming them into multipurpose societies. Creation and modernization of infrastructure at the level of PACS will reduce food grain wastage by creating sufficient storage capacity, strengthen food security of the country and enable farmers to realise better prices for their crops.

There are more than 1,00,000 Primary Agricultural Credit Societies (PACS) in the country with a huge member base of more than 13 crore farmers. In view of the important role played by PACS at the grass root level in transforming the agricultural and rural landscape of Indian economy and to leverage their deep reach up to the last mile, this initiative has been undertaken to set up decentralized storage capacity at the level of PACS along with other agri infrastructure, which would not only strengthen the food security of the country, but would also enable PACS to transform themselves into vibrant economic entities.