Decisions taken by the Union Cabinet on 24th June to Boost Infrastructure Projects

In order to boost Infrastructure projects across all the sectors at a time of a global pandemic, several decisions were taken by the Union Cabinet under the chairmanship of Prime Minister of India Narendra Modi on 24^th June 2020.

Animal Husbandry Infrastructure Development Fund (AHIDF)

The aim of setting up AHIDF is to unlock private sector investments in the animal husbandry sector. Through the fund, Infrastructural developments will be promoted in dairy, animal feed, and meat processing plants. As per Government estimate, the fund will help in creating up to 35 lakh jobs across the country.

The total budget for the fund is Rs 15,000 crores. Beneficiaries of the fund will be MSMEs, Farmer Producer Organisations (FPOs), private Companies, Section 8 companies, and Individual Entrepreneurs working in the Animal Husbandry Sector.

Beneficiaries will be provided with a 3 percent interest subvention by the Government of India.

Uttar Pradesh’s Khushinagar Airport declared as an International Airport

Khushinagar is a Buddhist pilgrimage town where Gautama Buddha attained Mahaparinirvana. The move will provide a much-needed boost to the tourism sector of the country in the post-COVID-19 world as International connectivity will increase number of foreign and as well as domestic tourists. This will lead to significant economic development in and around the region.

USD 121.27 million approved for Shwe Oil & Gas Project in Myanmar

ONGC Videsh Limited (OVL) was given approval by the Government with an additional Rs 909 crore (USD 121.27 million) for further development of the Shwe Oil & Gas project. The Shwe Oil & Gas Project is located in Myanmar. The project is a part of the consortium of companies. Apart from India, companies from Myanmar and South Korea are also a part of the Shwe project. From India, state-owned company GAIL is also a co-investor in the project.

In July 2013, the first gas from the project was received.  OVL has invested Rs 3,949 crore on the Shwe gas project until 31^st March 2019. Since 2014-15 the project has given investors positive cash flows.

The additional investment provided to OVL will further help in the continuous development of the Shwe Project. The success of this oil and gas exploration project in a neighbouring country will help India in strengthing its energy security needs. It is also important for the overall global and as well as regionally for India to develop such energy bridges with the neighbours.

Month: Current Affairs - June, 2020