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Cabinet Approval on March 24, 2023  

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Cabinet approval - 24 March 2023The Union Cabinet and the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister (PM) Narendra Modi, have approved the following proposals:

  • Release of an additional instalment of Dearness Allowance (DA) to GoI employees and Dearness Relief to pensioners, due from January 1, 2023
  • Approval for the MSP of raw jute for the 2022-23 season
  • Approval for Targeted Subsidy to PMUY Consumers

Cabinet Approves Release of an Additional Instalment of DA to GoI Employees and Dearness Relief to Pensioners, Due from 01.01.2023

The Union Cabinet, presided over by PM Narendra Modi, has approved the release of an additional instalment of Dearness Allowance (DA) to Government of India (GoI) employees and Dearness Relief to pensioners effective January 1, 2023.

  • The additional instalment, which would bring the total to 42%, will represent a 4% increase over the current rate of 38% of the basic pay/pension to offset price increase.

Key Facts:

i.The DA and Dearness Relief would have a combined impact of Rs. 12,815.60 crore per year on the exchequer.

  • This will benefit around 47.58 lakh GoI employees and 69.76 lakh pensioners.

ii.This increase is in line with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

Dearness Allowance (DA)

i.The government provides DA to both pensioners and employees to help counteract the effects of inflation.

ii.The DA is typically revised twice a year, in January and July, and the announcement of the DA increase and payout is usually made in March.

iii.The DA for GoI employees is determined using the most recent Consumer Price Index for Industrial Workers (CPI-IW).

  • Every month, the CPI-IW data is released by the Labour Bureau, a division of the Ministry of Labour and Employment (MoL&E).

iv.The last DA hike was announced by the GoI on September 28, 2022, and it went into effect on July 1, 2022.

CCEA approves MSP of Raw Jute for 2023 -24 season

The Minimum Support Price (MSP) for Raw Jute for the 2023–2024 season has been approved by the Cabinet Committee on Economic Affairs (CCEA), which was presided over by PM Narendra Modi.

  • During the 2023–24 season, the MSP for Raw Jute (TDN3 equivalent to TD5 grade) has been fixed at Rs. 5050 per quintal. It was Rs. 4,750 per quintal for 2022-23 season.
  • This would guarantee a return of 63.20% over the all India weighted average cost of production.

The approval is made on the recommendations from the Commission for Agricultural Costs and Prices (CACP), Ministry of Agriculture and Farmers Welfare (MoA&FW).


i.The MSP for raw jute set for the 2023-24 season is consistent with the principle of fixing the MSP at a level of at least 1.5 times the all-India weighted average cost of production, which was announced by the GoI in the Budget 2018-19

  • It ensures at least a 50% profit margin.

ii.The Jute Corporation of India (JCI) will continue to serve as the GoI’s nodal agency for price support operations, and any losses incurred in such operations will be fully reimbursed by the GoI.

iii.This rise in MSP for raw jute is a significant and progressive step towards ensuring higher remuneration for jute growers and incentivizing high-quality jute fibre.

CCEA Approves Targeted Subsidy to PMUY Consumers

i.The CCEA, chaired by PM Narendra Modi, has approved a Rs. 200 per 14.2 kg liquefied petroleum gas (LPG) cylinder subsidy for up to 12 refills per year for the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY).

ii.For the fiscal years 2022–2023 and 2023–2024, the total expenditure will be Rs. 6,100 crore and Rs. 7,680 crore, respectively.

iii.All PMUY beneficiaries are eligible for this targeted subsidy, which encourages PMUY consumers to keep using LPG.

  • The subsidy is credited directly to the bank accounts of eligible beneficiaries.

iv.This subsidy has been offered since May 22, 2022, by public-sector oil marketing firms such Indian Oil Corporation Ltd. (IOCL), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL).

Pradhan Mantri Ujjwala Yojana (PMUY)

i.The GoI introduced the Pradhan Mantri Ujjwala Yojana (PMUY), which offers deposit-free LPG connections to adult women from poor households, in May 2016 to make LPG, a clean cooking fuel, more accessible to rural and underprivileged poor households.

  • As of March 1, 2023, there are 9.59 crore PMUY beneficiaries.

ii.The average LPG consumption of PMUY consumers has increased by 20%, from 3.01 refills in 2019–20 to 3.68 in 2021–22.

iii.The international price of LPG has grown significantly due to a multitude of geopolitical factors, necessitating the protection of PMUY beneficiaries from high LPG prices.

GoI Approves Setting Up of Electronics Manufacturing Cluster at Hubli-Dharwad in Karnataka  

Union Minister of State (MoS) Rajeev Chandrasekhar, Ministry of Electronics & Information Technology (MeitY) announced approval for the establishment of the Rs. 180 crore Electronics Manufacturing Cluster (EMC) in Dharwad District, Karnataka, which is estimated to create over 18,000 jobs.

  • Under the Modified Electronics Manufacturing Cluster (EMC 2.0) scheme, the project is being established at Kotur-Balur Industrial Area in Dharwad, Karnataka.

It is anticipated to eventually catalyse investments worth more than Rs. 1,500 crore.

Key Points:

i.This EMC has a strategic location advantage and is well connected with NH-48 (1 km) and Hubli Domestic Airport (33 km), lowering the industry’s logistics and transportation costs.

  • Nine companies, including start-ups, have already agreed to invest a total of Rs. 340 crore, potentially creating 2,500 jobs.

ii.The GoI has already approved a Common Facility Centre (CFC) for the development of an advanced testing facility in Mysore, Karnataka, that will suit the industry’s different testing requirements.

iii.Karnataka, which already has Apple plants in Kolar (Wistron) and Devanahalli (Foxconn), is emerging as a global electronics manufacturing hub for the world.

Modified Electronics Manufacturing Cluster (EMC 2.0)

i.The EMC 2.0 project was launched on April 1, 2020, with the goal of creating world-class infrastructure and shared testing facilities, including ready-built factory sheds and plug-and-play infrastructure, in order to encourage Anchor Units and their supply chain to set up manufacturing and production facilities in India.

ii.Three EMCs covering 1,337 acres with a project cost of Rs. 1,903 crore, including GoI financial assistance of Rs. 889 crore, have been approved under the scheme, with a projected investment target of Rs. 20,910 crore.

iii.India has advanced significantly in electronics manufacturing over the past eight years as a result of these initiatives.

Recent Related News:

In February 2023, the Union Cabinet has approved the signing of Memorandum of Understanding (MoU) between the New Delhi (Delhi) headquartered Institute of Chartered Accountants of India (ICAI) and the Institute of Chartered Accountants in England & Wales (ICAEW) in London, United Kingdom (UK).

About Ministry of Electronics & Information Technology (MeitY):

Union Minister – Ashwini Vaishnaw (Rajya Sabha – Odisha)
Minister of State (MoS) – Rajeev Chandrasekhar