Cabinet Approval 20th May 2020 All MoU and Agreements with Details

Cabinet Approval 20th May 2020 All MoU and Agreements with Details

Cabinet Approval 20th May 2020 All MoU and Agreements with Details

Cabinet Approval 20th May 2020 All MoUs Agreements List.: Union Cabinet Approval 20th May 2020 All MoU and Agreements with Details Given Below:

Cabinet approves extension of ‘Pradhan Mantri Vaya Vandana Yojana’ 

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has given its approval to the following for the welfare of and to enable old age income security for Senior Citizens:

1. Extension of Pradhan MantriVayaVandanaYojana (PMVVY) up to 31st March, 2023 for further period of three years beyond 31st March, 2020.
2. To allow initially an assured rate of return of 7.40 % per annum for the year 2020-21 per annum and thereafter to be reset every year.
3. Annual reset of assured rate of interest with effect from April 1st of financial year in line with revised rate of returns of Senior Citizens Saving Scheme (SCSS) upto a ceiling of 7.75% with fresh appraisal of the scheme on breach of this threshold at any point.
4. Approval for expenditure to be incurred on account of the difference between the market rate of return generated by LIC (net of expenses) and the guaranteed rate of return under the scheme.
5. Capping Management expenses at 0.5% p.a. of funds of the scheme for first year of scheme in respect of new policies issued and thereafter 0.3% p.a. for second year onwards for the next 9 years.
6. Delegating the authority to Finance Minister to approve annual reset rate of return at the beginning of every financial year.
7. All other terms and conditions of the scheme remaining the same.

The minimum investment has also been revised to Rs.1,56,658 for pension of Rs.12,000/- per annum and Rs.1,62,162/- for getting a minimum pension amount of Rs.1000/- per month under the scheme.

PMVVY is a social security scheme for senior citizens intended to give an assured minimum pension to them based on an assured return on the purchase price / subscription amount.

Cabinet approves ‘Pradhan Mantri Matsya Sampada Yojana 

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has given its approval for implementation of the Pradhan Mantri Matsya Sampada Yojana (PMMSY) - A scheme to bring about Blue Revolution through sustainable and responsible development of fisheries sector in India under two components namely, Central Sector Scheme (CS) and Centrally Sponsored Scheme (CSS) at a total estimated investment of Rs. 20,050 crore comprising of (i) Central share of Rs. 9,407 crore, (ii) State share of Rs. 4,880 crore and (iii) Beneficiaries' share of Rs. 5,763 crore.

The Scheme will be implemented during a period of 5 years from FY 2020-21 to FY 2024-25.

The PMMSY will be implemented as an umbrella scheme with two separate Components namely (a) Central Sector Scheme (CS) and (b) Centrally Sponsored Scheme (CSS). The Centrally Sponsored Scheme (CSS) Component is further segregated into Non-beneficiary oriented and Beneficiary orientated sub components/activities under the following three broad heads:

a) Enhancement of Production and Productivity

b) Infrastructure and Post-Harvest Management

c) Fisheries Management and Regulatory Framework

Cabinet approves ‘Atma Nirbhar Bharat Package for allocation of foodgrains to the migrants / stranded migrants 

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has given its ex-post facto approval for allocation of foodgrains from Central Pool to approximately 8 crore migrants / stranded migrants @ 5 kg per person per month (May and June, 2020) for two months free of cost.

It would entail an estimated food subsidy of about Rs.2,982.27 crore. Further the expenditure towards intra-state transportation and handling charges and dealer’s margin / additional dealer margin will account for about 127.25 crore which will borne fully by Central Government. Accordingly, the total subsidy from the Government of India is estimated at about of Rs.3,109.52 crore.

The allocation will ease the hardships faced by migrant / stranded migrants due to economic disruption caused by COVID-19.

Cabinet approves Special Liquidity Scheme for NBFCs/HFCs to address their Liquidity Stress 

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has given its approval to the proposal of the Ministry of Finance to launch a new Special Liquidity Scheme for Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) to improve liquidity position of the NBFCs/HFCs.

Financial implication:

The direct financial implication for the Government is Rs. 5 crore, which may be the equity contribution to the Special Purpose Vehicle (SPV). Beyond that, there is no financial implication for the Government until the Guarantee involved is invoked. However, on invocation, the extent of Government liability would be equal to the amount of default subject to the Guarantee ceiling. The ceiling of aggregate guarantee has been set at Rs. 30,000 crore, to be extended by the amount required as per the need.

Details of the Scheme:

The Government has proposed a framework for addressing the liquidity constraints of Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) through a Special Liquidity Scheme. An SPV would be set up to manage a Stressed Asset Fund (SAF) whose special securities would be guaranteed by the Government of India and purchased by the Reserve Bank of India (RBI) only. The proceeds of sale of such securities would be used by the SPV to acquire short-term debt of NBFCs/HFCs. The Scheme will be administered by the Department of Financial Services, which will issue the detailed guidelines.

Cabinet approves "Scheme for formalisation of Micro Food Processing Enterprises (FME)" 

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has given its approval to a new Centrally Sponsored Scheme - "Scheme for Formalisation of Micro food processing Enterprises (FME)" for the Unorganized Sector on All India basis with an outlay of Rs.10,000 crore. The expenditure will be shared by GOI and the States in ratio of 60:40.

Objectives:

• Increase in access to finance by micro food processing units.
• Increase in revenues of target enterprises.
• Enhanced compliance with food quality and safety standards.
• Strengthening capacities of support systems.
• Transition from the unorganized sector to the formal sector.
• Special focus on women entrepreneurs and Aspirational districts.
• Encourage Waste to Wealth activities.
• Focus on minor forest produce in Tribal Districts.

Salient features:

• Centrally Sponsored Scheme. Expenditure to be shared by Government of India and States at 60:40.
• 2,00,000 micro-enterprises are to be assisted with credit linked subsidy.
• Scheme will be implemented over a 5 year period from 2020-21 to 2024-25.
• Cluster approach.
• Focus on perishables.

Cabinet approves modifications in the existing "Partial Credit Guarantee Scheme (PCGS)"

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved the Sovereign portfolio guarantee of up to 20% of first loss for purchase of Bonds or Commercial Papers (CPs) with a rating of AA and below (including unrated paper with original/ initial maturity of up to one year) issued by NBFCs/ MFCs/Micro Finance Institutions (MFIs) by Public Sector Banks (PSBs) through an extension of the Partial Credit Guarantee Scheme (PCGS).

Cabinet also approved modifications in the existing PCGS on purchase of pooled assets, increasing its coverage by—

Making NBFCs/HFCs reported under SMA-1 category on technical reasons alone during the last one year period prior to 1.8.2018 eligible. Earlier NBFCs/HFCs reported as SMA-1 or SMA-2 during this period were ineligible under the Scheme.

Relaxing the net profit criteria to the extent that the concerned NBFC/HFC should now have made a profit in at least one of the financial years of FY2017-18, FY 2018-19 and 2019-20. Earlier, the NBFC/HFC should have made a net profit in at least one of the financial years of FY 2017-18 and 2018-19.

Relaxing the criteria regarding date of origination of assets to include new assets originating up to at least six months prior to the date of initial poolrating. Earlier, only assets originated up to 31.3.2019 were eligible under the Scheme.