Cabinet meets to approve several initiatives under Atma Nirbhar Bharat Abhiyan

On May 20, 2020, the union cabinet approved several initiatives under Atma Nirbhar Bharat Abhiyan that was launched by PM Modi recently.

Highlights

The Union Cabinet has approved allocation of food grains, adoption of auction methodology for coal, issuance of second order to Reorganisation of Jammu and Kashmir, Pradhan Mantri Matsya Sampada Yojana, Pradhan Mantri Vaya Vandana Yojana, Scheme to formalize Micro Food Processing Enterprises and Partial Credit Guarantee Scheme

Allocation of Food Grains

The Union Cabinet has given its nod to allocate food grains from the central pool to over 8 crore migrants. The migrants are to be provided with 5 kg of food grains per person per month. This is to be done under Public Distribution System. The National Food Security Act has empowered the GoI to take such a step.

The migrants are to be provided food grains under the system for the months of May and June. This is considered as an immediate relief measure for the migrants as the “One Nation One Card” scheme is to be implemented in June, 2020 end.

The GoI has allocated Rs 2,982 crores to implement the scheme.

Coal Auction

The Fianance Minister Nirmala Sitaraman announced the coal auctioning method while announcing the economic package of Atma Nirbhar Bharat Abhiyan. This has been approved by the Union Cabinet.

This method has shifted from maximum revenue from coal to maximum coal availability in the market. It has moved towards market oriented revenue sharing from fixed rupees per tonne auction method.

Also, the new method allows adequate competition which will help in faster development of coal blocks.

The new method has also allowed exploitation of coal bed methane. The tenure of coking coal linkages has been increased to 30 years.

Jammu and Kashmir Reorganization Second Order, 2020

According to the order, the domicile conditions to all level jobs in the state has been changed.

Emergency Credit Line Scheme

Under the scheme, the Union Cabinet has approved additional funding of upto Rs 3 lakh crore to the eligible MSMEs. In order to achieve this, the GoI has allocated Rs 41,600 crores.

The Emergency Credit Line scheme was framed to respond to unprecedented situations as that of COVID-19. The scheme aims to provide incentive to Member Lending Institutions (MLIs), Non-Banking Financial Institutions, banks, financial institutions, etc.

Special Liquidity Scheme

The Union Cabinet has approved the Special Liquidity Scheme for the Housing Finance Corporations and Non-Banking Finance Corporations in order to increase the liquidity flow in the country. Under the scheme, a Special Purpose Vehicle is to be set up that will manage the stressed asset funds. The special securities of these assets are to be bought by the GoI and RBI. They will then use these securities to acquire short term debts.

Pradhan Mantri Matsya Sampada Yojana

The Union Cabinet has given its approval to implement measures under the scheme. The Scheme will bring upon blue revolution. It is to be implemented for a period of 5 years.

The scheme is centrally sponsored with estimated amount of Rs 20, 050 crores. It aims at enhancing productivity of fish, infrastructure and regulatory framework.

Prdhan Mantri Vaya Vandana Yojana

Under the approval, the scheme is to be extended till March 2023. The minimum investment of the scheme has been revised to Rs 1,56,658 for the pension amount of Rs 12,000 per annum and Rs 1,62,162 for pension amount of Rs 1000 per month.

Micro Food Processing

The Union Cabinet has approved the Scheme for Formalisation of Micro Food Processing Enterprises. The GoI has allocated Rs 10,000 crores under the scheme. The expenditure of the state is to be shared between centre and states in the ratio of 60:40.

The scheme aims to increase the access of finances to the micro food processing industries. It will encourage waste to wealth activities. It will also focus on minor forest produce in tribal districts.

Month: Current Affairs - May, 2020