The Union Cabinet chaired by the Prime Minister (PM) Narendra Modi approved the following proposals:
i.Progressive expansion of CSS of AIF
ii.Rolling out Private FM Radio to 234 uncovered new cities / towns
iii.CFA towards Equity Participation by the State Governments of NER for development of Hydro Electric Projects
iv.Two new lines and one multi-tracking project across Indian Railways
v.12 Industrial nodes under National Industrial Corridor Development Programme
Cabinet Accords Approval for Progressive Expansion of CSS of AIF
The Union Cabinet approved the progressive expansion of the Central Sector Scheme (CSS) under the Agriculture Infrastructure Fund (AIF). The expansion aims to make the scheme more attractive, impactful, and inclusive by broadening eligible projects and adding supportive measures to strengthen agricultural infrastructure and support the farming community in India. The measures are as follows:
i.Viable Farming Assets: This expansion will include all eligible beneficiaries under viable projects for creating community farming assets under viable projects, enhancing productivity and sustainability.
ii.Integrated Processing Projects: Under this, the inclusion of integrated primary and secondary processing projects as eligible under AIF, while standalone secondary projects covered under MoFPI schemes.
iii.PM KUSUM Component-A: There will be convergence of Component-A of PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan) with AIF to promote sustainable clean energy alongside agricultural infrastructure for farmers, Farmers Producer Organisation (FPOs), and cooperatives.
iv.NABSanrakshan: There will be extension of AIF credit guarantee coverage to FPOs through NABSanrakshan Trustee Company Pvt. Ltd., improving financial security and encouraging investment in agricultural infrastructure projects.
- This will be in addition to Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Cabinet approves rolling out Private FM Radio to 234 Uncovered New Cities/Towns
The Union Cabinet has approved a proposal for 3rd batch of ascending e-auctions to establish 730 Private FM (Frequency Modulation) radio channels across 234 new cities, with a reserve price of Rs 784.87 crore under Private FM Radio Phase III Policy. This initiative aims to expand FM radio’s reach, promote local content, and create employment opportunities.
Key Points:
i.An Annual License Fee (ALF) for FM channel’s will be set at 4% of gross revenue, excluding Goods and Services Tax (GST), for the 234 new cities/towns.
ii.City Allocations:
- 100 channels in 32 cities/towns of Uttar Pradesh (UP).
- 68 channels in 22 cities/towns of Andhra Pradesh (AP).
- 61 channels in 20 cities/towns of Madhya Pradesh (MP).
- 59 channels in 19 cities/towns of Rajasthan.
- 57 channels will be made available in Bihar, 53 channels proposed for Karnataka’s 16 cities/towns, 42 in West Bengal (WB), 36 in Maharashtra, 33 in Tamil Nadu (TN), 31 in Telangana, 28 in Punjab, 24 in Gujarat, 27 in Haryana and 19 in Jharkhand, among others.
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iii.The focus will be new and local content in the mother tongue, supporting vocal for local” initiatives.
iv.It is expected to boost employment, local culture, and government outreach, especially in Aspirational districts and Left-Wing Extremism (LWE)-affected areas.
Cabinet approves CFA towards Equity Participation by the State Governments of NER for development of Hydro Electric Projects
The Union Cabinet has approved a proposal from the Ministry of Power to provide Central Financial Assistance (CFA) to State Governments in the North Eastern Region (NER) for equity participation in Hydro Electric Projects. These projects will be developed through Joint Ventures (JVs) between State entities and Central Public Sector Undertakings (CPSUs).
- The scheme, with a budget of Rs 4,136 crore, will be implemented from FY 2024-25 to FY 2031-32, supporting around 15,000 Mega Watt (MW) of hydroelectric capacity.
Assistance:
i.The CFA will cover up to 24% of the State Government’s equity in these projects, capped at Rs 750 crore per project. This cap may be revised on a case-by-case basis if needed.
ii.Financial assistance will be provided only to viable hydroelectric projects. To ensure viability, States may be required to waive or stagger free power and reimburse SGST (State GST).
Key Points:
i.The scheme aims to encourage State participation in hydro development by sharing risks and responsibilities more equitably between State Governments and CPSUs.
ii.State involvement is expected to reduce issues such as land acquisition, rehabilitation, resettlement, and local law and order, thereby minimizing project delays and cost overruns.
iii.The development of hydroelectric projects in the NER will attract significant investment, create direct and indirect employment opportunities, and promote local entrepreneurship.
iv.These projects will contribute to India’s goal of achieving 500 GW (Giga Watt) of renewable energy capacity by 2030, enhancing the flexibility, security, and reliability of the national grid.
v.This initiative builds on previous Cabinet decisions, including the 2019 declaration of large hydro projects as renewable energy, the introduction of Hydro Power Purchase Obligations (HPOs), and budgetary support for infrastructure and flood moderation.
Cabinet approves 2 New Lines and 1 Multi-Tracking Project across Indian Railways
The Cabinet Committee on Economic Affairs (CCEA) has approved 3 railway projects viz. two new lines and one multi-tracking project with a total estimated cost of Rs 6,456 crore. These projects aim to improve connectivity, ease travel, reduce logistics costs, and lower CO2 emissions across India.
- The projects will cover 7 districts in Odisha, Jharkhand, West Bengal (WB), and Chhattisgarh, adding approximately 300 km to the Indian Railways network.
- The new line proposals will improve direct connectivity and mobility, enhancing efficiency and service reliability for Indian Railways.
- The multi-tracking will ease operations, reduce congestion, and develop infrastructure on the busiest sections.
Key Points:
i.14 new stations will be constructed, enhancing connectivity in 2 Aspirational Districts (Nuapada, Odisha and East Singhbum, Jharkhand) and providing access to about 1,300 villages and 11 lakh people through new lines, and 19 lakh people through the multi-tracking project.
ii.The projects are essential for transporting commodities like agricultural products, coal, iron ore, and cement, leading to an additional freight capacity of 45 MTPA (Million Tonnes Per Annum).
iii.These railway projects will support climate goals by reducing oil imports by 10 crore liters, lowering CO2 emissions by 240 crore kg (equivalent to planting 9.7 crore trees), and minimizing logistics costs.
iv.The projects are part of the PM-Gati Shakti National Master Plan, aimed at providing seamless multi-modal connectivity through integrated planning.
Cabinet approves 12 Industrial nodes under National Industrial Corridor Development Programme
CCEA has approved 12 new industrial nodes/cities under the National Industrial Corridor Development Programme (NICDP) with an estimated investment of Rs 28,602 crore.
- These projects, spanning 10 states and aligned along six major corridors, aim to boost India’s manufacturing capabilities and economic growth, contributing to the vision of a developed India, Viksit Bharat.
Key Points:
i.The approved industrial nodes will be established in key locations in Khurpia in Uttrakhand, Rajpura-Patiala in Punjab, Dighi in, Maharashtra, Palakkad in Kerala, Agra and Prayagraj in Uttar Pradesh (UP), Gaya in Bihar, Zaheerabad in Telangana, Orvakal and Kopparthy in AP and Jodhpur-Pali in Rajasthan.
ii.NICDP is designed to attract large anchor industries, driving towards a USD 2 trillion export target by 2030 and enhancing India’s global competitiveness.
iii.These industrial cities will be developed as sustainable greenfield smart cities with advanced infrastructure, based on ‘plug-n-play’ and ‘walk-to-work’ concepts, supporting sustainable growth and economic transformation.
iv.The projects will feature multi-modal connectivity aligned with the PM GatiShakti National Master Plan, ensuring efficient movement of people, goods, and services.
v.The NICDP is expected to create approximately 1 million direct jobs and up to 3 million indirect jobs, fostering regional development and employment opportunities.
vi.The NICDP has already seen four projects completed, with four more currently under implementation.
About Ministry of Railways:
Union Minister– Ashwini Vaishnaw (Constituency- Badshahpur, Orissa)
Ministers of State (MoS)– V. Somanna (Constituency- Bengaluru, Karnataka), Ravneet Singh (Constituency- Ludhiana, Punjab)
