On March 30, 2022, the Union Cabinet chaired by Prime Minister (PM) Narendra Modi approved the following proposals:
- USD 808 million for Raising and Accelerating MSME Performance
- Procurement of 15 LCH -LSP from HAL for IAF (10) & IA (05)
- Release of an additional installment of DA due from Jan 01, 2022
- Amendment in Mega Power Policy 2009 for Provisional Mega Power Projects
Cabinet approves USD 808 million for Raising and Accelerating MSME Performance
The Union Cabinet approved USD 808 million (Rs 6,062.45 crore) for a new World Bank (WB) assisted scheme ‘Raising and Accelerating MSME Performance (RAMP)’ which will probably be initiated in FY23 to directly or indirectly benefit all 63 million MSMEs. .
- Out of the total amount, Rs 3,750 crore ($ 500 million) will be a loan from WB, and the rest Rs 2,312.45 crore ($ 308 million) will be funded by the government of India.
- MSME is an acronym for Micro, Small & Medium Enterprises.
About RAMP:
RAMP was formulated on the lines of the recommendations made by Upendra Kumar (UK) Sinha Committee, Kundapur Vaman (KV) Kamath Committee and Economic Advisory Council to the Prime Minister (PMEAC).
i.It is premised upon two areas viz. strengthening institutions and governance of the MSME programme, and support to market access, firm capabilities and access to finance.
ii.It supports post Covid-19 Resilience and Recovery Interventions of the Ministry of MSME (MoMSME) to improve the condition of MSMEs in India.
iii.This program will enhance industry standards, practices, and provide necessary technological inputs to the MSMEs to make them self-reliant.
iv.It will also bolster capacity building, handholding, skill development, quality enrichment, technological upgradation, digitization.
v.RAMP would thus be a ‘’Policy Provider’’ , “Knowledge Provider”, “Technology Provider” for the benefit of MSMEs.
Click here to read more about RAMP
Cabinet approves release of an additional instalment of DA due from Jan 01, 2022
To compensate for the price rise, the Union Cabinet also gave its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioner’s w.e.f. January 1, 2022 representing an increase of 3% to 34% from the existing rate of 31% of the Basic Pay/Pension.
- This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
Key Points:
i.The combined cost on account of both DA and DR will be Rs.9,544.50 crore per annum for the Central Government.
ii.This will benefit about 47.68 lakh Central Government employees and 68.62 lakh pensioners.
iii.In October 2021, the Cabinet had hiked the two allowances by 3% to 31% w.e.f. July 1, 2021.
CCS Approves Procurement of 15 LCH -LSP from HAL for IAF (10) & IA (05)
The Cabinet Committee on Security (CCS) under the Chairmanship of PM Narendra Modi has approved procurement of 15 Light Combat Helicopter (LCH) Limited Series Production (LSP) at the cost of Rs. 3,887 Cr along with Infrastructure sanctions worth Rs. 377 Cr.
- 10 helicopters will be for the Indian Air Force (IAF) and 5 will be for the Indian Army (IA).
- LCH is an indigenously designed, developed and manufactured modern combat helicopter containing approx. 45% indigenous content by value which will increase to more than 55% for SP Version.
- LCHs are manufactured by Hindustan Aeronautics Ltd (HAL)
Features of LCH:
i.It is equipped with requisite agility, manoeuvrability, extended range, high altitude performance and all-weather combat capability to perform combat search and rescue (CSAR), destruction of enemy air defence (DEAD) and counter-insurgency (CI) operations.
ii.The helicopter can also be used against slow-moving aircraft and remotely piloted aircraft (RPAs) of adversaries.
CCEA approves amendment in Mega Power Policy 2009 for Provisional Mega Power Projects
The Cabinet Committee on Economic Affairs (CCEA) extended the time limit for 10 power projects by 36 months to 156 months instead of 120 months from the date of import. This will enable the power projects to furnish documents required to become certified ‘mega’ projects in order to competitively bid for future PPAs (Power Purchase Agreements) and get tax exemptions as per policy terms.
- This has been done by amending the Mega Power Policy 2009.
Key Point:
During this extended period, bids for firm power (combination of intermittent renewable energy, storage and conventional power) will be invited in co-ordination with Ministry of New & Renewable Energy (MNRE) and Solar Energy Corporation of India Limited (SECI) and these Mega projects will be expected to participate in such bids to secure PPAs.
Recent Related News:
i.CCEA approved the scheme on Green Energy Corridor (GEC) Phase-II for Intra-State Transmission System (InSTS). This approval will add approximately 10,750 circuit kilometres (ckm) of transmission lines and approx. 27,500 MegaVolt-Amperes (MVA) transformation capacity of substations.
ii.CCEA approved the equity infusion of Rs 1500 crore in Indian Renewable Energy Development Agency Limited (IREDA).
