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Cabinet approvals on August 25, 2021

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On August 25, 2021, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has given its approval to the following proposals:

Government approves highest FRP of sugarcane at 290/quintal for season 2021-22

The Union Cabinet has approved the highest ever fair and remunerative price (FRP) of Rs 290 per quintal (qtl) at a recovery rate of 10% for sugarcane farmers for sugar season 2021-22 (October – September). The information for the same was provided by minister Piyush Vedprakash Goyal, Ministry of Consumer Affairs, Food and Public Distribution.

  • FRP is the minimum price that mills have to pay to cane growers.
  • Notably, this FRP is higher by 87.1% over production cost (Rs. 155 per quintal), therefore farmers get a return of much more than 50% over their cost.
  • The FRP will be applicable from October, 1 2021.

Key Points:

i.There will be a premium of Rs. 2.90/qtl for each 0.1% increase in recovery over and above 10%, & reduction in FRP by Rs. 2.90/qtl for every 0.1% decrease in recovery.

  • There will be no deduction in case of sugar mills where recovery is below 9.5%. Such farmers will get Rs. 275.50 per quintal for sugarcane.

ii.This decision will benefit 5 crore sugarcane farmers as well as the 5 lakh workers employed in sugar mills across the country.

iii.In the current sugar season 2020-21, about 2,976 lakh tons of sugarcane worth Rs. 91,000 cr was purchased by sugar mills, which is at an all time high level.

iv.The FRP is determined on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP) in consultation with State Governments and other stake-holders.

CCEA nod to Rs 15,000 crore FDI proposal in Anchorage Infra Investment Holding

CCEA has approved Rs 15,000-crore foreign direct investment (FDI) proposal of Anchorage Infrastructure Investment Holding Ltd, a subsidiary of Canada-based pension fund, for the investment in the infrastructure and the construction-development sectors.

  • The investment also includes transfer of shares of Bangalore International Airport Limited (BIAL) to Anchorage, and investment of Rs 950 crore in Anchorage by the 2726247 Ontario Inc.
  • The 2726247 Ontario Inc is a wholly-owned subsidiary of OMERS Administration Corporation (OAC).

Key Points:

i.The sectors may also include transport and logistics, along with downstream investment in the airport sector and aviation-related businesses and services along with capital- and employment-intensive sectors.

  • This will also lead to direct employment generation.

ii.The investment will also boost the recently announced National Monetization Pipeline (NMP).

Cabinet approves MoU between India’s ICAI and Russia’s IPAR

The Union Cabinet also approved the Memorandum of Understanding (MoU) between Institute of Chartered Accountants of India (ICAI) and Institute of Professional Accountants of Russia (IPAR).

  • As a part of MoU there would be mutual co­operation in the areas of Professional Accountancy Training, Professional Ethics, Technical Research, Advancement of Accounting Knowledge, Professional and Intellectual Development.

Key Points:

i.Under this MoU, ICAI will provide the Export of Services in Accountancy profession to Russia resulting in strengthening of partnership .

ii.There will be mutual cooperation through seminars, conferences and joint activities to provide updates in accountancy in order to promote this profession in the world.

iii.It is also expected that this MoU will provide ICAI Members with professional opportunities in Russia in the short to long term future.

Recent Related News:

i.CCEA approved the Reforms-based and Results-Linked ‘Revamped Distribution Sector Scheme’, which aims to improve the operational efficiencies and financial sustainability of DISCOM (Distribution Company (India)) in the Power sector (not applicable to private DISCOMS).

ii.The Union Cabinet had approved the modifications in the Central Sector Scheme of Financing Facility of the 1 Lakh crore worth ‘Agriculture Infrastructure Fund (AIF)’ to generate more investments.

About Institute of Chartered Accountants of India (ICAI):

Establishment– 1949
President– CA. Nihar N Jambusaria
Headquarter– New Delhi