On January 18, 2024, the Union Cabinet chaired by Prime Minister (PM) of India, Narendra Modi, has approved the following proposals:
i.Creation of Posts for 16th Finance Commission (FC).
ii.Memorandum of Understanding (MoU) between India and the European Commission on Working Arrangements on Semiconductors Ecosystems
iii.MoU between India and Kenya on sharing successful Digital Solutions implemented at Population Scale for Digital Transformation.
iv.Memorandum of Intent (MoI) between India and Netherlands on cooperation in the field of Medical Products Regulation.
v.MoU between India and Ecuador on cooperation in the field of Medical Products Regulation.
vi.Equity investment by South Eastern Coalfields Limited (SECL), Mahanadi Coalfields Limited (MCL) and Coal India Limited (CIL).
Cabinet approves Creation of Posts to assist 16th FC
The Union Cabinet has approved the creation of three posts at the level of Joint Secretary i.e. two posts of Joint Secretary and one post of Economic Adviser for the 16th Finance Commission (FC) which is formed under Article 280 (1) of the Constitution.
- The newly created posts are required to assist the Commission in carrying out its functions. All other posts in the Commission have already been created as per the delegated powers.
- The 16th FC is tasked to review tax distribution between the Centre and states, explore ways to increase revenue, and assess the financing of disaster management activities under the Disaster Management Act of 2005.
About 16th FC:
Chairman of 16th FC- Padma Bhushan awardee Dr Arvind Panagariya, Former & first Vice Chairman of NITI Aayog (National Institution for Transforming India), and a Professor of Economics and the Jagdish Bhagwati Professor of Indian Political Economy at Columbia University in New York, the United States of America(USA)
Secretary– Ritvik Ranjanam Pandey
Note: 16th FC is set to submit its report covering five years (April 1, 2026 to March 31, 2031) to the President of India (Currently- Droupadi Murmu) by 31st October 2025.
Additional info:
i.The 15th FC was constituted on 27th November 2017 to make recommendations for 6 years (2020-21 to 2025-26).
ii.The FC was chaired by Nand Kishore Singh, a politician, economist and former Indian Administrative Service (IAS) officer.
iii.The First FC was constituted under the chairmanship of Kshitish Chandra (KC) Neogy in 1952.
Cabinet approves MoU between India and the European Commission:
The Union Cabinet approved a MoU signed on 21st November 2023 between the Government of India (GoI) and the European Commission on Working Arrangements on Semiconductors Ecosystems, its supply chain and innovation under the framework of European Union (EU)-India Trade and Technology Council (TTC).
- This MoU will enhance semiconductor supply chain resilience through Government-to-Government (G2G) and Business-to-Business (B2B) collaborations, leveraging strengths for increased cooperation in the semiconductor sector.
Click Here to Read India, EU Signs MoU to Deepen Cooperation on Semiconductor Ecosystem
Aim: To strengthen cooperation between India and EU towards enhancement of semiconductors for the advancement of Industries and digital technologies
Background:
The Ministry of Electronics and Information Technology (MeitY) actively fosters electronics manufacturing in India, and introduced the Program for Development of Semiconductor and Display Manufacturing Ecosystem to provide fiscal support for various semiconductor facilities.
- India Semiconductor Mission (ISM) under Digital India Corporation (DIC) also drives semiconductor development and showcases India’s manufacturing ecosystem.
- MeitY is mandated to promote international cooperation in Electronics and Information Technology (IT) under bilateral and regional frameworks by signing MoUs with various countries for bilateral cooperation and supply chain resilience.
Cabinet approves MoU between India and Kenya:
The Union Cabinet approved the MoU signed on 5th December 2023 between the MeitY, GoI and the Ministry of Information, Communications and Digital Economy, Government of the Republic of Kenya for cooperation in the field of sharing successful Digital Solutions implemented at Population Scale for Digital Transformation.
- This MoU came into effect on the date of signature of the Parties i.e. December 5, 2023, and will remain in force for 3 years.
Key Points:
i.Through this MoU, Both G2G and B2G bilateral Cooperation in the field of Digital Public Infrastructure (DPI) will be enhanced.
ii.It also envisages improved collaboration leading to employment opportunities in the field of IT.
iii.This MoU will share best practices, and attract investments in the digital sector with the ultimate goal of enhancing mutual cooperation between India and Kenya.
Cabinet approves MoI between India and Netherlands:
The Cabinet also approved a Memorandum of Intent (MoI) signed on November 7, 2023 between the Central Drugs Standard Control Organization (CDSCO), Ministry of Health and Family Welfare(MoH&FW), GoI and the Ministry of Health, Welfare and Sport, Kingdom of the Netherlands on behalf of Medicines Evaluation Board, Health and Youth Care Inspectorate, Central Committee on Research Involving Human Subjects.
- This MoU envisages cooperation in the field of Medical Products Regulation.
Key Points:
i.There will establishment of a framework for cooperation and exchange of information between CDSCO, and the Ministry of Health, Welfare and Sport on behalf of the Medicines Evaluation Board, Health and Youth Care Inspectorate, Central Committee on Research Involving Human Subjects in matters relating to Medical products regulation in line with their International responsibilities.
ii.This MoI will facilitate a better understanding of medical products regulation concerning pharmaceuticals including raw materials for pharmaceutical use, biological products, medical devices and cosmetic products.
iii.It will facilitate the export of medical products leading to foreign exchange earnings for India.
Cabinet approves MoU between India and Ecuador:
The Union Cabinet also apprised MoU signed on 7th November 2023, between CDSCO and Agencia Nacional de Regulaction, Control Y Vigilancia Sanitria – ARCSA, Doctor Leopoldo Izquieta Perez, The Republic of Ecuador on cooperation in the field of Medical Products Regulation.
Key Points:
i.This MoU focus on cooperation in the field of Medical Products Regulation, aiming to enhance understanding of regulatory aspects, and promote international cooperation.
ii.It helps increase the export of medicines from India resulting in better employment opportunities in the Pharmaceutical sector.
iii.It will facilitate export of medical products leading to foreign exchange earnings.
Cabinet Approves Equity Investment by SECL, MCL and CIL
The Cabinet Committee on Economic Affairs (CCEA) approved equity investment by South Eastern Coalfields Limited (SECL), Mahanadi Coalfields Limited (MCL) and Coal India Limited (CIL).
Note: Both SECL and MCL are the Subsidiaries of CIL.
Details:
SECL:
CCEA has approved the proposal for equity investment by SECL to set up 1 x 660 megawatt (MW) Supercritical Coal-Based Thermal Power Plant (TPP) through a Joint Venture (JV) of SECL and Madhya Pradesh Power Generating Co Ltd (MPPGCL) at Amarkantak Thermal Power Station in Village Chachai, Anuppur District, Madhya Pradesh(MP).
- CCEA has approved the Equity Capital of Rs 823 Crore (± 20%) by SECL considering a Debt-Equity Ratio of 70:30 and 49% Equity Investment in JV Company with an estimated Project Capex of Rs.5,600 Crore (accuracy of ±20%) for the proposed power plant.
MCL:
CCEA has approved the proposal for equity investment by MCL to set up 2 x 800 MW TPP through Mahanadi Basin Power Ltd (MBPL), a subsidiary of MCL, in Sundergarh District, Odisha.
- CCEA has approved the Equity Capital of Rs.4,784 Crore (± 20%) for the proposed project with an estimated Project Capex of Rs 15,947 Crore (±20%) through MBPL.
CIL:
The CCEA also approved equity investment by CIL beyond 30% of its net worth in the JV of SECL-MPPGCL (Rs 823 crore ± 20%) and in MBPL(Rs 4,784 Crore ± 20%).
CIL will set up these two Pithead TPPs through its subsidiaries.
Recent Related News:
i.The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approved an amendment to the Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) for specifying royalty rates for three critical and strategic minerals: Lithium, Niobium, and Rare Earth Elements (REEs).
ii.Union Cabinet gave its approval for the creation of an autonomous organization known as “Mera Yuva Bharat” (MY Bharat). In response to the changing landscape of rapid communication, social media, digital opportunities, and emerging technologies, the government is creating an autonomous entity called ‘Mera Yuva Bharat’ (MY Bharat), guided by a ‘whole of government approach’ to engage and empower the youth.
About Central Drugs Standard Control Organization (CDSCO):
It is the National Regulatory Authority for drugs, medical devices and cosmetics in India.
Drugs Controller General of India– Dr. Rajeev Singh Raghuvanshi
Headquarters– New Delhi, Delhi
