*Cabinet approves Signing and ratification of Bilateral Investment Treaty between India and United Arab Emirates
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today has given its approval for signing and ratification of Bilateral Investment Treaty between the Government of the Republic of India and the Government of the United Arab Emirates.
The Treaty is expected to improve the confidence of the investors, especially large investors, resulting in an increase in Foreign Investments and Overseas Direct Investment (ODI) opportunities and this may have a positive impact on employment generation.
The approval is expected to increase investments in India and is likely to help in realizing the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, increasing exports etc.
*Cabinet approves marketing margin for supply of Domestic gas to Fertilizer (Urea) for the Period May 2009 – November 2015
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for determination of Marketing Margin on supply of domestic gas to Fertilizer (Urea) Units for the period from May 1, 2009 to November 17, 2015.
This approval is a structural reform. Marketing Margin is charged by gas marketing company from consumers over and above the cost of gas for taking on the additional risk and cost associated with marketing of gas. Government had previously determined marketing margin on supply of domestic gas to urea and LPG producers in 2015.
The approval will provide additional capital to the various Fertilizer (Urea) Units for the component of marketing margins paid by them on domestic gas procured during the period 01.05.2009 to 17.11.2015, based on rates already being paid from 18.11.2015 onwards.
In line with government vision of AatmaNirbhar Bharat, this approval will incentivize manufacturers to increase investment. The increased investment will lead to self-sufficiency in fertilizers, and provide an element of certainty for future investments in gas infrastructure sector.
*Cabinet approves extension of Animal Husbandry Infrastructure Development Fund
The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the continuation of Animal Husbandry Infrastructure Development Fund (AHIDF) to be implemented under Infrastructure Development Fund (IDF) with an outlay of Rs.29,610.25 crore for another three years up to 2025-26. The scheme will incentivize investments for Dairy processing and product diversification, Meat processing and product diversification, Animal Feed Plant, Breed multiplication farm, Animal Waste to Wealth Management (Agri-waste management) and Veterinary vaccine and drug production facilities.
Government of India will provide 3% interest subvention for 8 years including two years of moratorium for loan up to 90% from the scheduled bank and National Cooperative Development Corporation (NCDC), NABARD and NDDB. The eligible entities are individuals, Private Companies, FPO, MSME, Section 8 companies. Now the Dairy Cooperatives will also avail benefits for modernization, strengthening of the dairy plants.
Government of India will also provide credit guarantee to the MSME and Dairy Cooperatives up to the 25% of the credit borrowed from the Credit Guarantee Fund of Rs.750 crore.
The AHIDF has so far created an impact by adding 141.04 LLPD (Lakh Ltr. Per Day) of milk processing capacity, 79.24 lakh metric ton of feed processing capacity and 9.06 Lakh metric ton of meat processing capacity by adding to the supply chain since the inception of the scheme. The scheme has been able to increase processing capacity by 2-4% in dairy, meat and animal feed sector.
Animal Husbandry sector presents an opportunity for the investors to invest in the Livestock sector making this sector a lucrative one ranging from value addition, cold chain and integrated units of Dairy, Meat, Animal Feed units to technologically assisted Livestock and Poultry farms, Animal Waste to wealth Management and Setting up of Veterinary Drugs/ Vaccine units.
After inclusion of new activities like technologically assisted breed multiplication farms, strengthening of veterinary drugs and vaccine units, Animal waste to wealth management, the scheme will exhibit a huge potential for the upgradation of infrastructure in Livestock sector.
The scheme will be a channel towards employment generation directly and indirectly to 35 lakh people through entrepreneurship development and aims for wealth creation in the livestock sector. So far, the AHIDF has benefitted directly /indirectly approximately to 15 lakh farmers. AHIDF is emerging a path towards achieving the Prime Minister’s goal of doubling farmers’ income, tapping the livestock sector by bringing the private sector investment, bringing in the latest technologies for processing and value addition, and last but not the least contributing to the Nation’s economy by promoting the export of Livestock products. Such investments in processing and value addition infrastructure by eligible beneficiaries would also promote export of these processed and value- added commodities.
Thus investment by incentivisation in AHIDF would not only leverage private investment 7 times but would also motivate farmers to invest more on inputs thereby driving higher productivity leading to increase in farmers income.
*Cabinet approves Scheme of Sugar Subsidy for AAY Families under PDS
The Union Cabinet chaired by Prime Minister Shri Narender Modi approved extension of scheme of sugar subsidy for Antyodya Anna Yojna (AAY) families distributed through Public Distribution Scheme (PDS) for two more years i.e. 31 March 2026.
As another indication of unwavering commitment of Central Government to wellbeing of citizens of the country and ensuring sweetness of platter of the poorest of the poor in the country, the Scheme facilitates access of sugar to the poorest of the poor and adds energy to their diet so that their health improves. Under the Scheme, the Central Government gives subsidy of Rs.18.50 per kg per month of sugar to AAY families of participating States. The approval is expected to extend benefits of more than Rs.1850 crore during period of 15th Finance Commission (2020-21 to 2025-26). The scheme is expected to benefit about 1.89 crores AAY families of the country.
Government of India is already giving free ration under Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY). Sale of ‘Bharat Atta’, ‘Bharat Dal’ and Tomatoes and Onions at affordable and fair prices are the measures to ensure sufficient food in Plate of citizens beyond PM-GKAY also. So far, about 3 Lakh Tons of Bharat Dal (Chana dal) and about 2.4 Lakh Ton of Bharat Atta have already been sold, benefitting ordinary consumers. Thus, availability of subsidized dal, atta and sugar have completed the food for a common citizen of India fulfilling Modi ki Guarantee of ‘Food for All, Nutrition for All’.
With this approval, the Government will continue giving subsidy to participating States for distribution of sugar to AAY families through PDS at the rate of One kg per family per month. States have the responsibility to procure and distribute sugar.
*Cabinet approves continuation of Scheme for Rebate of State and Central Taxes and Levies for export of Apparel/Garments
The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the continuation of Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for export of Apparel/Garments and Made ups upto 31st March 2026.
Continuation of Scheme for proposed duration of two (2) years will provide stable policy regime which is essential for long term trade planning, more so in the textiles sector where orders can be placed in advance for long term delivery.
The continuation of RoSCTL will ensure predictability and stability in policy regime, help remove the burden of taxes and levies and provide level playing field on the principle that “goods are exported and not domestic taxes”
The Union Cabinet had given approval of the scheme up to 31.03.2020 and further approval was given for continuation of RoSCTL till 31st March 2024. The present extension upto 31st March 2026 helps in enhancing export competitiveness of garments and made-ups sectors. It makes apparel/garments and Made ups products cost-competitive and adopt the principle of zero-rated export. The other textile products (excluding Chapter 61, 62 and 63) not covered under the RoSCTL, are eligible to avail the benefits under RoDTEP along with other products.
The objective of the scheme is to compensate for the State and Central Taxes and Levies in addition to the Duty Drawback Scheme on export of apparel/ garments and Made-ups by way of rebate. It is based on an internationally acceptable principle that taxes and duties should not be exported, to enable a level playing field in the international market for exports. Hence, not only indirect taxes on inputs are to be rebated or reimbursed but also other un-refunded State & Central taxes and levies are to be rebated.
Rebate of State Taxes and Levies comprises VAT on fuel used in transportation, captive power, farm sector, mandi tax, duty of electricity, stamp duty on export documents, embedded SGST paid on inputs such as pesticides, fertilizers etc. used in production of raw cotton, purchases from unregistered dealers, coal used in production of electricity and inputs for transport sector. Rebate of Central Taxes and Levies comprises central excise duty on fuel used in transportation, embedded CGST paid on inputs such as pesticides, fertilizer etc. used in production of raw cotton, purchases from unregistered dealers, inputs for transport sector and embedded CGST and Compensation Cess on coal used in production of electricity.
RoSCTL has been an important policy measure and has helped in enhancing competitiveness of Indian exports of apparel and made ups which are value added and labour intensive segments of the Textile Value Chain. Continuation of Scheme for further duration of two (2) years will provide stable policy regime which is essential for long term trade planning, more so in the textiles sector where orders can be placed in advance for long term delivery.