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Cabinet Approvals on May 31, 2023

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On May 31, 2023, The Union Cabinet chaired by the Prime Minister (PM) of India Narendra Modi approved the following proposals:

i.Constitution and empowerment of Inter-Ministerial Committee (IMC) for facilitation of the World’s Largest Grain Storage Plan in Cooperative Sector

ii.Establishment of a Regional Office of the Universal Postal Union in New Delhi

iii.City Investments to Innovate, Integrate and Sustain 2.0 (CITIIS 2.0) from 2023 to 2027

Cabinet approves Constitution and Empowerment of IMC for Facilitation of World’s Largest Grain Storage Plan in Cooperative Sector

On the lines of the Central Government’s plan to expand the foodgrain storage capacities in India, the Union Cabinet has approved the constitution and empowerment of an Inter-Ministerial Committee (IMC) for the facilitation of the World’s Largest Grain Storage Plan in the Cooperative Sector.

  • The Government will infuse approximately Rs 1 Lakh Crore (Rs 1 trillion) for this plan in order to increase foodgrain storage capacity by 700 lakh tonne in the cooperative sector from about 1,450 lakh tonne presently to 2,150 lakh tonne in the next five years by constructing a godown capacity of 2000 tonnes in every block.

Aim of Plan:

i.To reduce the damage of food grains due to a lack of storage and strengthening food security

ii.Help in checking distress sales by farmers

iii.Reduce import dependence

iv.Create employment opportunities in rural India

Convergence of Various Schemes:

This plan will see the convergence of the following schemes of the Ministry of Agriculture and Farmers Welfare (MoA&FW), Ministry of Consumer Affairs, Food and Public Distribution (MoCAF&PD) and Ministry of Food Processing Industries (MoFPI).


  • Agriculture Infrastructure Fund (AIF)
  • Agricultural Marketing Infrastructure Scheme (AMI)
  • Mission for Integrated Development of Horticulture (MIDH)
  • Sub Mission on Agricultural Mechanization (SMAM)


  • Allocation of food grains under the National Food Security Act
  • Procurement operations at Minimum Support Price


  • Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME)
  • Pradhan Mantri Kisan Sampada Yojana (PMKSY)

Pilot Project:

The pilot project of the plan would be implemented by the Ministry of Cooperation (MoC) in at least 10 selected Districts of different States/Union Territories (UTs) by ensuring time-bound and uniform implementation.

  • The Pilot will highlight the various regional requirements of the project, which will be further incorporated for the country-wide implementation.

About IMC:

The IMC for the facilitation of World’s Largest Grain Storage Plan in Cooperative Sector will be constituted under the Chairmanship of Minister of Cooperation.

  • Its members will include the Minister of Agriculture and Farmers Welfare, Minister of Consumer Affairs, Food and Public Distribution, Minister Of Food Processing Industries, and concerned secretaries.

Responsibilities of IMC:

i.To modify guidelines/ implementation methodologies of the schemes of the respective Ministries as and when need arises, within the approved outlays and prescribed goals

ii.Creation of infrastructure such as godowns, etc. for Agriculture and Allied purposes at selected Primary Agricultural Credit Societies (PACS).

Benefits of the Plan:

i.Address the shortage of agricultural storage infrastructure in India by setting up various types of agri-infrastructure, including warehouse, custom hiring center, processing units, etc. at the level of PACS, thus transforming them into multipurpose societies.

ii.Enable PACS to undertake various other (following) activities, thus, enhancing the incomes of the farmer members as well:

  • Functioning as Procurement centres for State Agencies/ Food Corporation of India (FCI)
  • Serving as Fair Price Shops (FPS)
  • Setting up custom hiring centers;
  • Setting up common processing units

There are more than 1,00,000 PACS in India with a huge member base of more than 13 crore farmers.

iii.It will reduce the cost incurred in transportation of food grains to procurement centres and again transporting the stocks back from warehouses to FPS.

Through ‘whole-of-Government’ approach, the Plan would strengthen PACS by enabling them to diversify their business activities, thus enhancing the incomes of the farmer members as well.

Time-frame and Manner of implementation:

As the plan received Cabinet approval, a National Level Coordination Committee will be formed, and implementation guidelines will be issued within 15 days.

  • A portal for the linkage of PACS with Govt. of India and State Governments will be rolled out within 45 days of the Cabinet approval.
  • Overall, implementation of proposal will start within 45 days of the Cabinet approval.


i.India has 65,000 agricultural cooperative societies. Through the launch of the Grain Storage Plan, the farmers could able to obtain up to 70% of loans from these societies in addition to storing their produce in the facilities.

ii.India produces about 3,100 lakh tonnes of foodgrains annually, and current godown facilities can store only up to 47% of the produce.

Cabinet approves establishment of Regional Office of the UPU in New Delhi

The Cabinet has approved the establishment of a Regional Office of the Universal Postal Union (UPU) in New Delhi, Delhi.  This office would focus on UPU’s development cooperation and technical assistance activities in collaboration with UPU.

Key Points:

i.Under this collaboration, India will provide a Field Project Expert, staff, and office space for the regional office and it would also prepare and implement projects on capacity building and training, improving efficiency and quality of postal services, enhancement of Postal technology, e-commerce and trade promotion.

ii.The office will implement projects to improve postal services, technology, e-commerce, and trade promotion in the region.

iii.The initiative will not only expand India’s diplomatic reach and strengthen relations with other countries, particularly in the Asia-Pacific region but also enhance India’s presence in global postal forums.

About Universal Postal Union (UPU):

Established in 1874 by the Treaty of Bern of 1874, is a specialized agency of the United Nations (UN) to promote and facilitate the smooth functioning of international postal services and foster cooperation among its member countries. It is the second-oldest international organization after the International Telecommunication Union (ITU).

Director General– Masahiko Metoki

Headquarters– Berne, Switzerland

Members– 192 nations

Cabinet approves City Investments to Innovate, Integrate and Sustain 2.0 (CITIIS 2.0) from 2023 to 2027

To further expand the Smart Cities Program, the Union cabinet approved the ‘City Investments to Innovate, Integrate and Sustain 2.0 (CITIIS 2.0)’ to 18 more cities which will run for a period of four years, from 2023 to 2027.

  • CITIIS 2.0 is an initiative developed by the Ministry of Housing and Urban Affairs (MoHUA) in collaboration with the French Development Agency (AFD), Kreditanstalt für Wiederaufbau (KfW), the European Union (EU), and the National Institute of Urban Affairs (NIUA).


The funding for CITIIS 2.0 will include a loan of Rs 1,760 crore (EUR 200 million) from AFD and KfW (EUR 100 million each) and a technical assistance grant of Rs 106 crore (EUR 12 million) from the EU.

3 Components of CITIIS 2.0:

i.Component 1:Provide financial and technical support for climate resilience, adaptation, and mitigation projects in up to 18 smart cities.

  • Emphasis on circular economy and integrated waste management.

ii.Component 2:Support all States and UTs on demand. Assist in setting up/strengthening State climate centers, creating Climate Data Observatories, enabling climate-data driven planning, and building capacities of municipal functionaries.

  • Project Management Unit (PMU) at National Institute of Urban Affairs (NIUA) will coordinate support.

iii.Component 3:Strengthen climate governance in urban India through institutional strengthening, knowledge dissemination, partnerships, capacity building, and research.

  • Interventions at Centre, State, and City levels to facilitate scale-up across all States and Cities.

Key Points:

i.The cities will have to apply to the government and will be shortlisted by a panel for final approval

ii.CITIIS 2.0 complements the climate actions of the Government of India, aligning with existing national programs like the National Mission on Sustainable Habitat, AMRUT 2.0 (Atal Mission for Rejuvenation and Urban Transformation 2.0), Swachh Bharat Mission (SBM) 2.0, and Smart Cities Mission (SCM).

iii.It also contributes to India’s Intended Nationally Determined Contributions (INDCs) and commitments at the Conference of the Parties (COP26).


CITIIS 1.0. was launched jointly in 2018 by MoHUA, AFD, EU, and NIUA, with a total outlay of Rs 933 crore (EUR 106 million).

  • At present, 12 cities are already covered by the first tranche of the programme. More than 50 products and 150 technical documents have been created for urban practitioners.

The 3 components of  CITIIS 1.0:

  • Component 1: 12 city-level projects selected through a competitive process.
  • Component 2:   Capacity-development activities in the State of Odisha.
  • Component 3:   Promoting integrated urban management at the national level through activities undertaken by NIUA, which was the Program Management Unit (PMU) for CITIIS 1.0