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Cabinet Approvals on September 8, 2021

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Cabinet Approvals on September 8, 2021On September 8, 2021, the Union Cabinet chaired by Prime Minister Narendra Modi approved the following proposals which were briefed by Union ministers Piyush Vedprakash Goyal, Ministry of Textiles and Anurag Singh Thakur, Ministry of Youth Affairs and Sports (MoYAS).

Cabinet approves Rs 10,683 crore PLI scheme for textiles sector

The Union Cabinet extended the production-linked incentive (PLI) scheme to the textiles sector to cover and promote textiles for MMF (man-made fibre) apparel, MMF fabrics and ten segments of technical textiles with an outlay of Rs 10,683 crore over a span for 5 years. The objective behind this scheme is to help Indian companies emerge as global champions.

  • In this regard, an investment worth Rs 19,000 crore is expected in 5 years with a cumulative turnover of over Rs 3 trillion.
  • The progress of the scheme will be chaired by the Empowered Group of Secretaries, chaired by Cabinet Secretary Rajiv Gauba.

What is Technical textile and MMFs?

It is a new-age material used for the production of personal protective equipment (PPE) kits, airbags, bulletproof vests, and can also be used in sectors such as aviation, defence, and infrastructure.

  • While MMFs, such as viscose, polyester, and acrylic, are made from chemicals.
  • According to the Federation of Indian Export Organizations (FIEO), MMF apparels currently account for a fifth of India’s overall apparel exports.
  • The global MMF market is around $200 billion.

Key Points:

i.This scheme will aid in creating employment for over 7.5 lakh people directly, several lakh jobs for supporting activities along with the women participation.

ii.It will also enable high priority investment in aspirational districts and tier-3 and tier-4 towns.

iii.It will positively impact states like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, Odisha.

iv.This scheme will offer two types of investment with different sets of incentives:

  • A company willing to invest a minimum Rs 300 crore in a plant, machinery, equipment and civil works, excluding land and administrative building cost, to produce MMFs and technical textiles, will be eligible to participate in the first part of the scheme.
  • A company willing to invest a minimum Rs 100 crore will be eligible to apply for participation under the second part of scheme.

Background:

The above PLI scheme is a part of the overall announcement of the PLI scheme for 13 sectors made during the Union Budget 2021-22, with an outlay of Rs 1.97 lakh crore.

Cabinet increases Minimum Support Prices (MSP) for Rabi crops for marketing season 2022-23

The Cabinet Committee on Economic Affairs (CCEA) has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi crops for Rabi Marketing Season (RMS) 2022-23.

  • This increase is in line with the Union Budget 2018-19 announcement to fix MSPs at a level of at least 1.5 times of the all-India weighted average cost of production, to ensure remunerative prices to the growers for their produce.

Key Points:

i.The highest absolute increase in MSP in comparison to 2021-2022 is for Lentil (Masur) and Rapeseeds & Mustard (Rs.400 per quintal each) followed by gram (Rs.130 per quintal).

  • For safflower, there has been an increase of 114 per quintal, in comparison to last year.

ii.The expected returns to farmers over their cost of production are estimated to be highest in case of wheat and rapeseed & mustard (100% each), followed by lentil (79%); gram (74%); barley (60%); safflower (50%).

MSPs for all Rabi crops for marketing season 2022-23  (In Rs./quintal)

Crops MSP for RMS 2021-22

 

MSP for RMS 2022-23

 

Cost* of production 2022-23 Increase in MSP

(Absolute)

Return over cost (in per cent)
Wheat 1975 2015 1008 40 100
Barley 1600 1635 1019 35 60
Gram 5100 5230 3004 130 74
Lentil (Masur) 5100 5500 3079 400 79
Rapeseed &

Mustard

4650 5050 2523 400 100
Safflower 5327 5441 3627 114 50

Central Government schemes to boost Farmer’s Income

National Mission on Edible Oils-Oil Palm (NMEO-OP): It is a centrally sponsored scheme worth Rs.11,040 crore to increase the domestic production of edible oils and reduce imports dependency. This will also benefit the farmers by increasing their income and generation of additional employment.

Pradhan Mantri Annadata Aay SanraksHan Abhiyan’ (PM-AASHA): Launched in 2018 it helps in providing remunerative return to farmers for their produce.

  • This is an Umbrella Scheme consists of three sub-schemes i.e. Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS) on a pilot basis.

Cabinet approves procurement of 56 C-295MW transport aircraft for IAF to replace Avro Aircraft

The Cabinet Committee on Security approved the procurement of 56 C-295MW transport aircraft from Airbus Defence and Space S.A., Spain for the Indian Air Force (IAF) which will replace its ageing Avro aircraft with it.

  • C-295MW is a transport aircraft of 5-10 Tonne capacity with contemporary technology and has a rear ramp door for quick reaction and para dropping of troops and cargo.

Key Points:

i.It should be noted that 16 aircraft will be delivered in flyaway condition from Spain within 48 months of signing of the contract while 40 aircraft will be manufactured in India by TATA Consortium within ten years of signing of the contract.

  • This is the first project of its kind in which a military aircraft will be manufactured in India by a private company.
  • Before completion of deliveries, ‘D’ Level servicing facility (MRO) for C-295MW aircraft will be setup in India.

ii.All aircrafts will be installed with indigenous Electronic Warfare Suite.

How will aircraft manufacturing in India be beneficial?

i.This program will boost the Atmanirbhar Bharat Abhiyan and Make in India initiative in the domain of aerospace. It will involve several MSMEs (Micro, Small & Medium Enterprises) and Private Sector to manufacture parts of the aircraft. This offers them an opportunity to enter into the highly competitive aviation Industry.

  • It will also act as a catalyst in employment generation of 600 highly skilled jobs directly, over 3000 indirect jobs and an additional 3000 medium skill employment opportunities with more than 42.5 lakh man hours of work within the aerospace and defence sector of India.

ii.During manufacturing in India, it is expected that all the suppliers of TATA Consortium will gain globally recognized National Aerospace and Defence Contractors Accreditation Program (NADCAP) accreditation.

iii.This will also reduce import dependence.

Cabinet Approval with Other Countries:

Cabinet approves agreement between India and Portugal for recruitment of Indian citizens

The Union Cabinet has approved the signing of an agreement between India and Portugal on the recruitment of Indian citizens to work in Portugal. In this regard, a Joint Committee will be set up for the implementation of the same i.e. there will be a formal arrangement for recruitment of Indian workers.

  • With this agreement, Indian migrants will get a new destination in the European Union (EU) as Portugal is a member nation in the EU.
  • It will also ensure the movement of workers happens smoothly with the maximum support from both sides.

About Portugal:

Capital– Lisbon
Currency– Euro

Cabinet approves MoU between India’s ICAI and Azerbaijan’s CAAR

The Union Cabinet has approved the signing of Memorandum of Understanding (MoU) between Institute of Chartered Accountants of India (ICAI) & The Chamber of Auditors of the Republic of Azerbaijan (CAAR).

  • This agreement will establish mutual cooperation in the areas of Member Management, Professional Ethics, Finance, Technical Research, CPD (Continuing Professional Development), Professional Accountancy Training, Audit Quality Monitoring, Advancement of Accounting Knowledge, Professional and Intellectual Development.

Key Points:

i.Both ICAI and CAAR intend to strengthen cooperation through sharing of knowledge, and best practices in the field of accountancy.

ii.These two entities will also cooperate in the fight against corruption and money laundering.

iii.They will also undertake a study on application of new innovative methods in the field of audit and accounting, including application of blockchain, smart contract system, transition from traditional accounting to cloud accounting.

iv.CAAR was established in accordance with the Law on Audit of 1994 as amended in 2004 to regulate the audit profession in the Republic of Azerbaijan.

About Institute of Chartered Accountants of India (ICAI):

It is a statutory body established under the Chartered Accountants Act, 1949 for the regulation of the profession of Chartered Accountants in India.

President– CA. Nihar N Jambusaria
Headquarter– New Delhi

Cabinet approves between Russia and India for cooperation in field of geosciences

The Union Cabinet has approved the signing of MoU on cooperation in the field of Geosciences between the Joint Stock Company Rosgeologia (State holding Company) (referred to as ROSGEO), a legal entity incorporated under the laws of the Russian Federation and the Geological Survey of India (GSI), Ministry of Mines, Government of India.

  • Through this MoU an umbrella framework will be developed for co-operation between GSI and ROSGEO.

What is in the MoU?

Both entities will cooperate in technological collaboration on exploration for deep-seated or concealed mineral deposit; analysis and interpretation of the aero-geophysical data; Joint development of the Indian Geoscience Data repository with the Russian state-of-the-art Information Technology; exchange of technology & knowledge in the field of drilling, sampling and laboratory analysis to achieve data accuracy, and cost optimization; and training and capacity building of scientific personnel etc.

Recent Related News:

i.In July 2021, the Union Cabinet approved a multilateral MoU signed between the International Financial Services Centres Authority (IFSCA), International Organization of Securities Commissions (IOSCO), and International Association of Insurance Supervisors (IAIS).

ii.The Government approved the Limited Liability Partnership (Amendment) Bill, 2021 which amends the Limited Liability Partnership Act (LLP), 2008. It is the 1st time that changes are being made to the LLP, 2008 since it came into effect in 2009.

About Russia:

Capital– Moscow
Currency– Russian ruble