On February 1, 2024, the Union Cabinet chaired by Prime Minister (PM) Narendra Modi approved the following schemes and initiatives:
i.Extension of Animal Husbandry Infrastructure Development Fund(AHIDF).
ii.Extension of Scheme of Sugar Subsidy for Antyodya Anna Yojna (AAY) Families under the Public Distribution Scheme (PDS).
iii.Continuation of Scheme for Rebate of State and Central Taxes and Levies for export of Apparel/Garments.
iv.Approves marketing margin for the supply of Domestic gas to Fertilizer(Urea) for the Period May 2009 – November 2015.
v.Signing and ratification of the Bilateral Investment Treaty between India and the United Arab Emirates(UAE).
Cabinet approves Extension of AHIDF:
The Union Cabinet Chaired by PM Modi approved the continuation of the Animal Husbandry Infrastructure Development Fund (AHIDF) to be implemented under the Infrastructure Development Fund (IDF) for three years till 2025-26 with an outlay of Rs 29,610.25 crore.
Key Points:
i.The Scheme will encourage investments in animal-based (Dairy and Meat) processing and diversification, Animal Feed Plant, breed multiplication farms, Agri-waste management, and veterinary vaccine/drug production facilities.
ii.The scheme is expected to generate direct and indirect employment for 35 lakh people.
Eligible entities: Individuals, Private Companies, FPO(Farmer Producer Organizations), MSME(Micro, Small and Medium Enterprise), and Section 8 companies.
Benefits:
i.Government of India(GoI) will provide 3% interest subsidy for 8 years(including 2 years of moratorium) for loans up to 90% from scheduled banks and the National Cooperative Development Corporation (NCDC), the National Bank for Agriculture and Rural Development (NABARD), and The National Dairy Development Board (NDDB).
ii.The government will also provide credit guarantees to the MSME and Dairy cooperatives up to 25% of the credit amount from the Credit Guarantee Fund of Rs 750 Crore.
About AHIDF:
i.AHIDF is a Central Sector Scheme under the Atma Nirbhar Bharat Abhiyan stimulus package.
ii.The Union Cabinet approved AHIDF in June 2020 with an initial corpus of Rs 15000 crore.
Cabinet Approves Scheme of Sugar Subsidy for AAY Families Under PDS
The Union Cabinet chaired by the PM approved the extension of the Scheme of sugar subsidy for AAY families distributed through the PDS for two more years till 31 March 2026.
Key Points
i.The scheme gives a subsidy of Rs 18.50 per kg per month of sugar to AAY families of participating States
ii.States have the responsibility to procure and distribute sugar to AAY families through PDS at the rate of One kg per family per month
iii.The scheme is expected to benefit about 1.89 crore AAY families in India
iv.During the 15th Finance Commission (from 2020-21 to 2025-26), the approval is expected to provide benefits worth more than Rs 1850 crore.
Additional Information
i.At present, GoI provides a free ration under Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY).
ii.Besides this ‘Bharat Atta’, ‘Bharat Dal’, and Tomatoes and Onions are provided at affordable prices to ensure sufficient food for citizens.
iii.About 3 Lakh Tons of Bharat Dal (Chana dal) and about 2.4 Lakh Ton of Bharat Atta have already been sold benefitting consumers.
About AAY:
Antyodya Anna Yojna (AAY) is a public distribution system scheme that was implemented in India in 2000.
Purpose: To provide food security to the people and end hunger in India.
Continuation of Scheme for Rebate of State and Central Taxes and Levies for Export of Apparel/Garments
The Union Cabinet chaired by the PM approved the extension of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for two years till 31st March 2026 for export of Apparel/Garments and Made-ups.
- This is the 2nd extension to the scheme, earlier it was extended till 31st March 2024 from 31st March 2020.
Key Points
The scheme is for exporters to reimburse taxes and duties paid by them such as value-added tax, coal cess, mandi tax, electricity duties, and fuel used for transportation, which are not exempted or refunded under any other existing mechanism.
- Indirect taxes on inputs as well as other unrefunded State & Central taxes and levies will be rebated or reimbursed through the scheme.
Background
The Ministry of Textiles notified the initial Rebate of State and Central Taxes and Levies (RoSCTL) scheme on 7th March 2019 to benefit the exporters that are not refunded through Goods and Services Tax(GST).
Note: The other textile products (excluding Chapters 61, 62, and 63) not covered under the RoSCTL, are eligible to avail of the benefits under RoDTEP(Remission of Duties and Taxes on Export) along with other products.
Cabinet Approves Marketing Margin for Supply of Domestic Gas to Fertilizer(Urea) (May 2009 – November 2015)
The Union Cabinet chaired by PM Modi has given its approval for the determination of the Marketing Margin on the supply of domestic gas to Fertilizer (Urea) Units from May 1, 2009, to November 17, 2015.
Marketing Margin:
Marketing Margin is charged by gas marketing companies from consumers over and above the cost of gas for taking on the additional risk and cost associated with marketing gas.
Key Points:
i.Previously in 2015, the government determined the marketing margin on the supply of domestic gas to urea and Liquefied petroleum gas(LPG) producers.
ii.This approval will provide additional capital to Urea Units for the component of marketing margins they paid during 1st May 2009 to 17th November 2015, based on the rates paid from 18th November 2015.
iii.This will lead to self-sufficiency in fertilizers and increase investment in the gas infrastructure sector.
Signing & Ratification of Bilateral Investment Treaty between India and UAE
The Union Cabinet chaired by PM Modi has approved the signing and ratification of the Bilateral Investment Treaty between the GoI and the Government of the UAE.
- This will help in improving the confidence of the investors and increase the Foreign Investments and Overseas Direct Investment (ODI) opportunities for both India and UAE.
About the United Arab Emirates(UAE).
President- Mohamed bin Zayed Al Nahyan
Capital- Abu Dhabi
Currency- Emirati Dirham (AED)
