The Union Cabinet chaired by the Prime Minister (PM) Narendra Modi has given approvals to various schemes and projects on 24th October 2024.
The approvals are as follows –
- Establishment of Rs.1,000 crore Venture Capital Fund for Space Sector under aegis of IN-SPACe.
- Two Railway projects worth Rs 6,798 crore to be completed in 5 years.
- New Amaravati Railway line connectivity with an expenditure of 2,245 crore.
Union Cabinet approves establishment of Rs.1,000 crore Venture Capital Fund for Space Sector under aegis of IN-SPACe
The Union Cabinet, chaired by the Prime Minister (PM) Narendra Modi, has given approval to set up Rs.1000 crore Venture Capital (VC) Fund which will be dedicated to space sector, under the supervision of Indian National Space Promotion and Authorization Center (IN-SPACe).
Key Points
i.The classification of the proposed 1,000 crore VC fund will be disbursed over a period of up to five years from the start date of the fund operations.
- The average allocation amount can range between Rs.150-250 crore per year, depending on the investment opportunities and fund requirements.
The proposed break-up financial year wise is as below:
| S.No. | Financial Year | Estimate (In Rs. Crores) |
|---|---|---|
| I | 2025-26 | 150.00 |
| 2 | 2026-27 | 250.00 |
| 3 | 2027-28 | 250.00 |
| 4 | 2028-29 | 250.00 |
| 5 | 2029-30 | 100,00 |
| Total Funding (VC) | 1000.00 |
ii.The estimated investment is proposed to range from10-Rs.60 Crore, depending upon the stage of the company, its growth trajectory, and its effect on national space capabilities. The proposed Equity Investment Range could be:
- Growth Stage: Rs.10 Crore – Rs.30 Crore
- Late Growth Stage: Rs.30 Crore – Rs.60 Crore
iii.The investment range is expected to support around 40 startups.
iv.IN-SPACe has proposed a Rs.1000 crore Venture Capital Fund to support the growth of India’s space, economy, currently valued at USD 8.4 billion, with a target of reaching USD44 billion by 2033.
Key Objectives of the VC Fund
i.The Fund aims to develop India’s space sector, with respect to the national priorities and boosting economic growth and innovation through the following key initiatives:
- Capital Infusion to gain additional funding for later stage development
- Retaining Companies in India
- Growing Space Economy
- Boost Space Technology Development
- Accelerating Global Competitiveness
- Supporting Atmanirbhar Bharat
Cabinet approves two Railway projects worth Rs 6,798 crore to be completed in 5 years
The Cabinet Committee on Economic Affairs (CCEA) has given approval to the implementation of the two Railway projects of Ministry of Railways with total estimated cost of Rs.6,798 crore (approx.).
- The two approved projects are – (a) doubling of Narkatiaganj-Raxaul-Sitamarhi-Darbhanga & Sitamarhi-Muzaffarpur Section covering 256 kms and (b) construction of new line between Errupalem and Namburu via Amaravati covering 57 kms to be completed in 5 years.
- The projects will help in creating direct employment for about 106 lakh human-days.
Key Details about the Project
i.The doubling of Narkatiaganj–Raxaul-Sitamarhi-Darbhanga and Sitamarhi-Muzaffarpur Section will foster the connectivity to Nepal, North-east India and Border areas and will ease the movement of passenger trains along with goods train enhancing socio-economic growth of the region.
ii.The two projects tend to cover 8 Districts in 3 States – Andhra Pradesh, Telangana and Bihar and will expand the network of Indian Railways by about 313 Kms.
Benefits of the Projects –
i.The New rail line project will help in connecting around 168 villages and about 12 Lakh population with 9 new stations.
ii.The two Aspirational Districts (Sitamarhi and Muzaffarpur) will benefit from the multi-tracking project to serve around 388 villages and about 9 lakh population.
iii.It will increase freight traffic to 31 MTPA (Million Tonnes Per Annum) and will help in minimizing logistics cost of the country and lowering CO2 (carbon dioxide) emissions.
iv.The new line project is also going to connect Amaravati the proposed Capital of Andhra Pradesh increasing efficiency and mobility.
Cabinet Approves new Amaravati Railway line connectivity with an expenditure of 2,245 crore
The Union Cabinet has approved the construction of a new railway line linking the state’s new capital, Amravati, Andhra Pradesh.
- It is a 57-kilometer new railway line and will be built with an investment of Rs 2,245 crore in 5 years.
Key Points
i.A 3.2-km-long railway bridge will be constructed on River Krishna to develop the railway line.
ii.It will provide direct connectivity with Hyderabad, Chennai, Kolkata and Nagpur and will also provide connectivity to Delhi from Nagpur and to Mumbai from Hyderabad.
iii. The new rail line project Errupalem-Amaravati-Namburu will pass through NTR Vijayawada and Guntur districts of Andhra Pradesh and Khammam district of Telangana and will be a parallel path to the existing Howrah – Chennai line.
