On March 28 2025, the Union Cabinet, chaired by Prime Minister (PM) Narendra Modi has approved the following proposals/schemes:
i.Approved Electronics Component Manufacturing Scheme (ECMS) with total outlay of Rs 22,919 crore.
ii.Cabinet approves additional DA for central employees and DR for pensioners, effective January 1, 2025.
iii.Approved Rs 37, 216 crore subsidy on Phosphatic and Potassic (P&K) fertilizers during Kharif season, 2025.
iv.Approved construction of 4-lane Patna-Arrah-Sasaram NH-119A corridor in Bihar under Hybrid Annuity Mode (HAM).
v.Approved inclusion of Bihar’s Kosi-Mechi Intra-State Link Project under PMKSY-AIBP with an outlay of Rs.6,282.32 crore
Cabinet Approved Electronics Component Manufacturing Scheme with Total Outlay of Rs 22, 919 Crore
The union cabinet has approved Electronics Component Manufacturing Scheme (ECMS) with total outlay of Rs 22,919 crore to make India Atmanirbhar in electronics supply chain.
- This scheme aimed to develop a robust component ecosystem by attracting large international and domestic investments in electronics component manufacturing ecosystem.
- It will also help in increasing Domestic Value Addition (DVA) by developing capacity and capabilities and integrating Indian companies with Global Value Chains (GVCs).
Key Benefits:
i.The scheme is projected to attract investment worth Rs 59,350 crore, which will result in the production of Rs 4,56,500 crore.
ii.It is expected to generate additional direct employment of 91,600 persons and many indirect jobs as well during its tenure.
iii.The scheme offers differentiated incentives to Indian manufacturers customized to overcome specific disabilities for various categories of components and sub-assemblies, enabling them to acquire technological capabilities and achieve economies of scale.
iv.The total time period of the scheme is 6 year, with one year of gestation period.
Points to be noted
- Electronics is one of the world’s highest-traded and fastest-growing industries.The domestic production of electronic goods has surged from Rs 1.90 lakh crore in Financial Year 2014-15 (FY15) to Rs 9.52 lakh crore in FY24 at Compound Annual Growth Rate (CAGR) of over 17%.
- Also, the India’s exports of electronic goods have significantly increased from Rs 0.38 lakh crore in FY15 to Rs 2.41 lakh crore in FY24 at CAGR of more than 20%.
Cabinet approves additional DA for central employees and DR for pensioners, effective January 1, 2025.
The union cabinet has approved to release of an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with immediate effect (w.e.f.) January 1, 2025.
- This marks an increase of 2% (i.e. to 55%) compared to the existing rate of 53% of the Basic Pay/Pension, to compensate against price rise.
Key Points:
i.The cumulative impact on the exchequer on account of an increase in both DA and DR will be Rs 6,614.04 crore annually.
- This increase is expected to benefit about 48.6 lakh central government employees and 66.5 lakh pensioners.
ii.This increase in both DA and DR is in accordance with the accepted formula, which is calculated based on the recommendations of the 7th Central Pay Commission.
About DA & DR:
i.The Government of India (GoI)pays DA and DR to central government employees an pensioners in order to adjust the cost of living and to protect their basic pay or pension from erosion in the real value.
ii.It is revised bi-annually (from 1st January and 1st July) based on the increase in the 12-monthly average All India Consumer Price Index for Industrial Workers (AICPI-IW) published by labour bureau under the Ministry of Labour & Employment (L&E).
iii.The last DA hike of 3% was announced by GoI in October 2024, from 50% to 53% w.e.f. July 1, 2024.
Cabinet Approved NBS Rates for Kharif Season, 2025 on P&K Fertilizers
The cabinet has approved the proposal of the department of Fertilizers for fixing the Nutrient Based Subsidy (NBS) rates for Kharif Season, 2025 i.e. from April 1, 2025 to September 30, 2025, on Phosphatic and Potassic (P&K) fertilizers.
- The budgetary requirement of this subsidy for Kharif season is estimated to be around Rs 37, 216.15 crore. This is approximately Rs 13,000 crore more compared to the budgetary requirement for Rabi seasons 2024-25.
Benefits:
i.This decision of GoI will help to ensure the availability of fertilizers to farmers at subsidised, affordable and reasonable prices/rates.
ii.The GoI also aims to rationalize the subsidy on P&K fertilizers considering latest trends in global prices of fertilizers and inputs.
iii.The cabinet has approved per kilogram (kg) subsidy rate for Nitrogen (N) at Rs 43.02; Phosphorus (P) at Rs 43.60; Potash (K) at Rs 2.38; and Sulphur (S) at Rs 2.61.
Points to Note:
- The GoI is making available 28 grades of P&K fertilizers to farmers at affordable prices through nutrient manufacturers/ importers.
- The subsidy on P&K fertilizers is administered by NBS scheme w.e.f. April 1, 2010.
CCEA approves 4-lane Patna-Arrah-Sasaram NH-119A corridor in Bihar under HAM.
The Cabinet Committee on Economic Affairs (CCEA) chaired by PM Narendra Modi, has approved the construction of 120.10 kilometer (km)-long 4-lane access controlled greenfield and brownfield Patna-Arrah-Sasaram corridor (National Highway (NH)-119A), starting from Patna to Sasaram in Bihar.
- The project will be developed on Hybrid Annuity Mode (HAM) at an estimated cost of Rs 3,712.40 crore which includes civil cost (Rs 2,989.08 crore), land acquisition cost (Rs 718.97 crore) and capital cost (Rs 3,712.40 crore).
Key Benefits:
i.A greenfield corridor, along with 10.6 km of upgradation of existing brownfield Highway, will be developed to alleviate the increasing traffic congestion.
ii.The project will further provide connectivity to 2 Bihar’s airports i.e. Jay Prakash Narayan International Airport (Patna) and upcoming Bihita Airport; 4 major railway stations (Sasaram, Arrah, Danapur, Patna); and 1 inland water terminal in Patna.
iii.This project will integrate with major transport corridors of Bihar such as: NH-19, NH-319, NH-922, NH-131G and NH-120, which will provide seamless connectivity to Aurangabad, Kaimur, and Patna.
iv.Following the completion of the project, the corridor will play a crucial role in regional economic growth, enhancing connectivity between Lucknow (Uttar Pradesh, UP); Patna (Bihar); Ranchi (Jharkhand); and Varanasi (UP).
CCEA Approved Inclusion of Koshi Mecha Intra-State Link Project of Bihar under PMKSY-AIBP
CCEA has approved the inclusion of Kosi-Mechi Intra-State Link Project of Bihar under Pradhan Mantri Krishi Sinchai Yojana-Accelerated Irrigation Benefits Programme (PMKSY-AIBP) of Union Ministry of Jal Shakti..
- The total estimated cost of the project is Rs 6,282.32 crore, including Rs 3,652.56 crore as central government financial support to Bihar and the project will be completed by March 2029.
About Kosi-Mechi Intra-State Link Project:
i.The project will provide diversion part of surplus water of Kosi river for extending irrigation to Mahananda basin lying in Bihar through remodeling of existing Eastern Kosi Main Canal (EKMC) up to 41.30 km and extension of EKMC up to river Mechi at 117.50 km.
- With this, both the rivers will be linked together within Bihar.
ii.The project will provide 2,10,516 hectares (ha) of additional annual irrigation in Kharif season across 4 districts of Bihar: Araria, Purnea, Kishanganj, and Kathihar districts of Bihar.
iii.It has potential to divert about 2,050 cubic million meter of additional water of Kosi through the proposed link canal.
iv.Also, after the remodeling of existing EKMC, shortfall supply of 1.57 lakh ha of existing Eastern Kosi Main Canal will be restored.
About PMKSY-AIBP:
i.PMKSY was launched during the year 2015-16, implemented by the Department of Water Resources, River Development & Ganga Rejuvenation (DoWR, RD & GR), Ministry of Jal Shakti (MoJS).
ii.It aimed to improve physical access of water on farm and expand cultivable area under assured irrigation, improved on-farm water use efficiency, and introduce sustainable water conservation practices, among others.
iii.GoI has approved total Rs 93, 068.56 crore (including Rs 37, 454 crore as central assistance) for the implementation of the scheme during 2021-26.
iv.Since April 2016, total 63 projects have been completed under PMKSY-AIBP and additional irrigation potential of 26.11 lakh ha has been created.
- Also, 9 projects have included after the introduction of AIBP component in PMKSY 2.0 since 2021-22.
- Kosi-Mechi Intra-State Link Project is the 10th such project to be included in the list.
