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Cabinet approves Stand Up India Scheme - A boost to promote entrepreneurship among SC/ST and Women



Cabinet approves Stand Up India Scheme

A boost to promote entrepreneurship among SC/ST and Women 
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the “Stand Up India Scheme” to promote entrepreneurship among SC/ST and Women entrepreneurs. The Scheme is intended to facilitate at least two such projects per bank branch, on an average one for eachcategory of entrepreneur. It is expected to benefit atleast 2.5 lakh borrowers. 


The expected date of reaching the target of at least 2.5 lakh approvals is 36 months from the launch of the Scheme. 


The Stand Up India Scheme provides for:

• Refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs. 10,000 crore.

• Creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC).

• Handholding support for borrowers both at the pre loan stage and during operations. This would include increasing their familiarity with factoring services, registration with online platforms and e-market places as well as sessions on best practices and problem solving.

The details of the scheme are as follows:

• Focus is on handholding support for both SC/ST and Women borrowers.

• The overall intent of the approval is to leverage the institutional credit structure to reach out to these under-served sectors of the population by facilitating bank loans repayable up to 7 years and between Rs. 10 lakh to Rs. 100 lakh for greenfield enterprises in the non farm sector set up by such SC, ST and Women borrowers.

• The loan under the scheme would be appropriately secured and backed by a credit guarantee through a credit guarantee scheme for which Department of Financial Services would be the settler and National Credit Guarantee Trustee Company Ltd. (NCGTC) would be the operating agency.

• Margin money of the composite loan would be up to 25%. Convergence with state schemes is expected to reduce the actual requirement of margin money for a number of borrowers. • Over a period of time, it is proposed that a credit history of the borrower be built up through Credit Bureaus.

Background:

The "Start up India Stand up India" initiative was announced by the PrimeMinister in his address to the nation on 15th August, 2015. The Stand up Indiacomponent is anchored by Department of Financial Services (DFS) to encouragegreenfield enterprises by SC/ST and Women entrepreneurs. 
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Government brings paradigm shift in the approach for faster implementation under 'Namami Gange' programme 
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the proposal for taking up Hybrid Annuity based Public Private Partnership (PPP) model under Namami Gange Programme which aims to reform the wastewater sector in India. Marking a paradigm shift in the implementation mode, Hybrid Annuity based Public Private Partnership (PPP) model will now be adopted to ensure performance, efficiency, viability and sustainability. In this model, a part of the capital investment (upto 40%) will be paid by government through construction linked milestones and the balance through an annuity over the contract duration upto 20 years.

Keeping in view the specialized nature of this model and to scale it up in future on sustainable basis, the Government is establishing a Special Purpose Vehicle (SPV) to plan, structure, procure concessionaires, monitor implementation of such PPP projects and develop market for treated waste water through appropriate policy advocacy under overall guidance of National Mission for Clean Ganga (NMCG). The SPV will be established under Indian Companies Act 2013 for providing required governance framework and enabling functional autonomy.

The SPV would enter into a Tripartite Memorandum of Agreement (MoA) with participating State Governments and concerned Urban Local Bodies (ULBs) for taking up individual projects. These MoAs will aim at introducing reforms and regulatory measures for recovery of user charges on Polluters Pay principle, restrictions on usage of ground & fresh water for non-potable purposes through stricter monitoring and guidelines that promote re¬use of treated wastewater.

The Ministry in a first of its kind has already entered into an MoU with Ministries of Railways, for purchase of treated water from STPs wherever feasible to facilitate faster market development for treated wastewater. Similar MoUs are also being worked out with other Ministries of Power, Petroleum, Industries etc.

This is a futuristic step taken by the Government where the market development for treated waste water and structural reforms are complementing the projects. This will help taking up more number of projects with the same allocation as made available under Namami Gange programme with reduced financial liability in the initial years. Spreading the stakes of the private participant over the entire period of concession would ensure continued operations over long-term. Linking of performance standards with the annuities will ensure desired objective of treated water of appropriate standard. It would help gradual capacity building of the Urban Local Bodies by setting ground for recovery of user charges on Polluter Pays Principle. Development of the market for treated water will lead to reduced demand on riverine fresh-water and will result in enhanced flows in river Ganga. These steps would also kick-start the process of responsible use of water in general and go a long way in mitigating the projected water shortage in the country.

Background:

It had been observed that benefits accrued from substantial investments made under various past programmes (Ganga Action Plan I & II, NGRBA, Yamuna Action Plan) were less than optimal. According to Central Pollution Control Board (CPCB), almost 30% of the Sewage Treatment Plants (STPs) monitored in the 4 states of UP, Uttarakhand, Bihar & West Bengal were not operational and 94% were non-compliant with the prescribed effluent standards.

Cabinet's approval addresses the above issues that acted as road blocks for all previous efforts to clean river Ganga. The approval paves the road ahead for complete reform in the wastewater sector in India, implementation of projects in a fast track mode and ensure effective utilisation of funds released under 100% funded 'Namami Gange' - central sector scheme. 
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Cabinet approves creation of a Credit Guarantee Fund for MUDRA loans – A boost to refinance operations 
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has given its approval for the creation of a Credit Guarantee Fund for Micro  Units  Development  Refinance  Agency  (MUDRA)  loans and to convert MUDRA Ltd. into MUDRASmall  Industries  Development  Bank  of  India (SIDBI)  Bank as a wholly owned subsidiary of SIDBI.

The Fund is expected to guarantee more than Rs 1,00,000 crore worth of loans to micro and small units in the first instance.

The salient features of the scheme are as follows:

(i)                 Establishment of Credit  Guarantee  Fund  for MUDRA Units(CGFMU) for  guaranteeing  loans  sanctioned  under Pradhan Mantri Mudra Yojana with effect from 8th April, 2015 with  the  objective  to  reduce  the  credit  risk  to  Banks  /  NBFCs  /  MFIs  /  other  financial  intermediaries,  who  are  Member Lending Institutions (MLIs).
(ii)               The National Credit Guarantee Trustee Company Ltd. (NCGTC Ltd.),  a  wholly-owned  company  of  Government  of  India,  constituted  under  the  Companies  Act,  1956  (2013)  to  manage  and  operate  various  credit  guarantee  funds,  shall  be  the  Trustee  of  the  Fund.
(iii)             The  guarantee  would  be  provided  on  portfolio  basis  to  a  maximum  extent of  50%  of  Amount  in  Default  in  the  portfolio.

The MUDRA (SIDBI) Bank will undertake refinance operations and provide support services with focus on portal management; data analysis etc. apart from any other activity entrusted/ advised by Government of India.

Background:

            MUDRA  Bank and  a Credit  Guarantee  Fund was proposed to be set up with  a refinance corpus of Rs. 20,000  crore and a corpus of Rs.3,000  crore respectively as per the Budget  Speech for 2015-16.  As a  precursor  to  the  launch  of  the  Pradhan  Mantri  MUDRA  Yojana  (PMMY) in April, 2015, MUDRA Ltd.  was set up as a corporate subsidiary  of SIDBI  in March, 2015. The RBI has allocated Rs 20,000 crore and the first tranche’ of Rs 5000 crore has been received by MUDRA as refinance.

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Cabinet approves transfer of land from Farakka Barrage Project to Inland Waterways Authority of India for construction of a new navigational lock parallel to the existing navigational lock at Farakka 
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has given its approval to transfer of 14.86 hectares of land from Farakka Barrage Project under the Ministry of Water Resources to Inland Waterways Authority of India under the Ministry of Shipping for construction of a new navigational lock parallel to the existing navigational lock at Farakka.

The details are as follows:-

i. Transfer of 14.86 hectares of land from Farakka Barrage Project (FBP), Ministry of Water Resources, River Development and Ganga Rejuvenation (MoWR, RD & GR) to Ministry of Shipping for construction of the new navigational lock at Farakka.

ii. The cost of the land is Rs.2,35,80,160/- (Rupees two crore, thirty five lakh, eighty thousand, one hundred sixty only) approximately. Inland Waterways Authority of India (IWAI) will bear this cost.

iii. Construction of the navigational lock is a subproject of Jal Marg Vikas Project. The new lock will ensure smooth and seamless movement of vessels on NW-1.

The advantage of construction of new navigation lock at Farakka are given below:-

a) The existing lock is unable to handle the number of vessels currently passing through it efficiently and effectively. At present, considerable time is taken for the vessels to pass the existing navigational lock. Therefore, need for construction of an additional lock to facilitate easy passage of vessels through the lock, given the anticipated increase in the number of vessels and volume of cargo that are expected to pass through it in future after implementation of the Jal Marg Vikas Project;

b) The process of modernization/up-gradation/repair of the existing navigational lock is time consuming and will put it out of operation during the period of repair. Construction of the new navigational lock therefore is an inescapable option for uninterrupted movement of vessels.

c) IWAI, a statutory body under the Ministry of Shipping, is the nodal authority responsible for regulation and development of inland waterways for the purposes of shipping and navigation. It is, therefore, within its mandate to build, maintain, operate and manage the navigational locks.

The works shall be planned/executed in such a manner that the existing arrangements about sharing of Ganga water at Farakka, as per Ganga Water Treaty-1996 between India and Bangladesh, are not affected.

Ministry of Shipping would work out detailed modalities for construction of new navigational lock as well as modernization of the existing navigational lock at Farakka in consultation with Mo WR, RD & GR/FBP in a phased manner to ensure seamless navigation on NW-1.

Background: 

i. IWAI is implementing Jal Marg Vikas Project for capacity augmentation of navigation on National Waterway - 1 on Allahabad - Haldia stretch of Ganga - Bhagarathi Hooghly River System with technical and investment support of the World Bank.

ii. A navigational Lock is already in operation at Farakka under the control of Farakka Barrage Project (FBP) since 1987. This lock needs modernization.

iii. The first Scooping Mission of World Bank (August 2014) had recommended maintenance and up-gradation works at the existing navigational lock, along with construction of a new lock. The objectives of Jal Marg Vikas Project can be fully achieved if the navigation upstream of the Farakka navigational lock is synchronized to match that downstream of the navigational lock. This is possible only if the second navigational lock is in position at Farakka. 
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Signing of MoU between India and Singapore in the field of Civil Aviation 
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its ex-post facto approvalfor signing a Memorandum of Understanding (MoU), which was signed in November, 2015between Airports Authority of India (On behalf of Government of India) and Singapore Cooperation Enterprise (On behalf of Government of Singapore) in Civil Aviation during Prime Minister’s visit to Singapore.

The objective of this MoU is to establish mutual cooperation in the field of civil aviation, which will cover, to begin with, the airports of Jaipur and Ahmedabad. This cooperation will be extended to other airports with mutual consent.

The salient features of the MoU include collaboration in Civil Aviation Sector in the areas of (a) Master-planning and design (b) Traffic development (c) Commercial development (d) Service quality improvement (e) Training and development (f) Cargo handling and Management (g) Maintenance, repair and overhaul (h) Operation and management and (i) any other areas with mutual consent.

Government of Singapore owns one of the best managed airports in the world, which has consistently maintained its ranking for last many years.

A need was felt that in order to ensure high standards of service at Ahmedabad and Jaipur airports, Airport Authority of India (AAI) may enter into operation and maintenance (O&M) contracts, either with or without the responsibility of maximization of non-aeronautical revenue in the terminal building (excluding land on city side and air side). The city side and airside will continue to be managed directly by AAI.

Globally, limited O&M contract models are prevalent for the entire airport operations. AAI has no previous experience in awarding O&M contract model of terminal buildings to other entities. In order to implement the decision, it was necessary to ensure that a suitable entity be engaged for undertaking the O&M contract at Ahmedabad and Jaipur airports. 
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Cabinet gives ex-post facto approval to India-Bahrain Agreement on Cooperation in Combating International Terrorism, Transnational Organized Crime and Trafficking in Illicit Drugs, Narcotic and Psychotropic Substances and Precursors Chemicals, and ratification of the same 
The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has given its ex-post facto approval to the Agreement between India and Bahrain on Cooperation in Combating International Terrorism, Transnational Organized Crime and Trafficking in Illicit Drugs, Narcotic and Psychotropic Substances and Precursors Chemicals and its ratification. The MOU shall come into force from the date of exchange of the instruments of ratification.

The Agreement aims to improve the effectiveness of both countries in the prevention, investigation, prosecution and suppression of crimes including crime relating to terrorism, transnational organized crime and drug trafficking. It will help establish framework for enhancing cooperation between the officials of intelligence and law-enforcement agencies of the two countries. 
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Cabinet apprised of the signing of protocol with Czech Republic on bilateral cooperation in the field of heavy industry 
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has been apprised of the protocol signed earlier between India and Czech Republic in the field of heavy industry, especially in industrial cooperation and facilities construction.

The Protocol includes the intent for modernization of the existing facilities in India by the Czech companies, including modernization of three plants of Heavy Engineering Corporation, a Central Public Sector Enterprises under the Department of Heavy Industries at Ranchi, set up with Czech support in the early 1960's.

The aim of the Protocol is to promote bilateral cooperation between the subjects of both States of the Parties in the field of heavy industry on the principle of mutual convenience and benefit, in accordance with the laws valid on the territories of the states of the Parties and their obligations resulting from other international agreements. 
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Cabinet approves ILO Recommendation No. 204 (R-204) concerning transition from the informal to the formal economy 
The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has approved the proposal for placing the new Instrument adopted by International Labour Organization (ILO) – Recommendations concerning ‘The Transition from the Informal to the Formal Economy (No.204)’ before the Parliament.

The International Labour Conference of ILO at its 104th Session held in Geneva in June 2015 adopted the above recommendation. Its adoption was supported by India, represented at the Session by the Union Minister of State for Labour & Employment.

Under Article 19 of the ILO Constitution, each Member State of the ILO is required to submit the instruments adopted by the Conference before the competent authority (the Parliament in case of India) within a period of one year from the closing session of the Conference.

The Recommendation provides guidance to Members to facilitate the transition of workers and economic units from the informal to the formal economy while respecting workers’ fundamental rights and promote creation, preservation and sustainability of enterprises and decent jobs in the formal economy and prevent informalization of formal economy jobs.

There is no financial implication on India in adopting the ILO Recommendation, which is applicable to all workers in the country which ratifies the instrument.

Background

ILO Conventions are international treaties, open for ratification by member countries. The ratification of an ILO Convention is a voluntary process. Once ratified, the ILO Conventions create legally binding obligations on the Member countries that ratifies the particular Convention. ILO Recommendations are not open to ratification but they are meant to provide guidance to the National Governments as regards formulation and implementation of policy, legislation and practices. A Protocol is an instrument that partially modifies a Convention. As regards formal ratification of the Convention and Protocol to the Convention, the same is to be decided separately by Government keeping in view the national laws and practices.

Given the diversity of the informal economy across member States, the competent authority should identify the nature and extent of the informal economy as described in this Recommendation, and its relationship to the formal economy using Tripartite mechanisms. In designing coherent and integrated strategies to facilitate the transition to the formal economy, the Recommendation encourages members to take into account the diversity of characteristics, circumstances and needs of workers and economic units in the informal economy. It also seeks to take into account specific national circumstances, legislation, policies, practices and priorities, effective promotion and protection of the human rights and promotion of gender equality and non-discrimination. 
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Cabinet gives ex-post facto approval in respect of Memoranda of Understanding entered into by Ministry of Corporate Affairs, Competition Commission of India (CCI) and Indian Institute of Corporate Affairs (IICA) with Foreign Countries/Organizations 
The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has given its post-facto approval to the Memoranda of Understanding (MOUs) between the Ministry of Corporate Affairs, Competition Commission of India (CCI) and Indian Institute of Corporate Affairs (IICA) with Foreign Countries/Organizations.

The Memoranda of Understanding are between the following:

(i)                Ministry of Corporate Affairs and the Ministry of Economic Affairs of the Netherlands;

(ii)              Competition Commission of India (CCI) and Federal Anti-monopoly Service of the Russian Federation;

(iii)            CCI and the Australian Competition and Consumer Commission;

(iv)            CCI and Directorate General for Competition of the European Commission;

(v)              CCI and Competition Bureau, Canada;

(vi)            Indian Institute of Corporate Affairs (IICA) and George Washington University, USA;

(vii)          IICA and Institute of Directors, London, UK; and

(viii)        IICA and International Finance Corporation.


The signing of MOUs will facilitate the exchange of knowledge and information, technical cooperation, experience sharing, enforcement cooperation etc. with the concerned organizations. The areas include among others, corporate governance and corporate social responsibility (CSR), in the spheres of corporate regulation, professions of accountancy and company secretary-ship resulting in responsible business practices, corporate disclosures and reporting etc. 

Implementation of the MOUs will be monitored by a bilateral Working Group on corporate governance and corporate social responsibility (CSR).

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Memorandum of Understanding between India and Bangladesh and Mode of Operation of Border Haats for setting up of Border Haats of India-BangladeshBorder and addendum to the MoU signed earlier 
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has given its ex-post-facto approval for the Memorandum of Understanding (MoU) between India and Bangladesh for (i) MoU and Mode of Operation of Border Haats signed on 23.10.2010 with Bangladesh for setting up Border Haats on India-Bangladesh Border, (ii) addendum to the MoU signed on 15.5.2012; (iii) to establish new Border Haats after identification of suitable locations in consultation with Government of Bangladesh and concerned State Governments and (iv) to modify/revise the terms and condition of the above MoU/Addendum in consultation with relevant State Governments/Central Government agencies and Government of Bangladesh.

The Border Haats aim at promoting the well-being of the people dwelling in remote areas across the borders of two countries, by establishing traditional system of marketing the local produce thorough local markets in local currency and/or barter basis. Though not significant as a percentage of bilateral trade, these measures help to improve economic well-being of marginalised sections of society.

Background

During the visit of Bangladesh Prime Minister to India on 10-13 January, 2010, it was agreed that Border Haats shall be established on a pilot basis at selected areas, including on the Meghalaya border, to allow trade in specified products and in accordance with the regulations agreed and notified by both Governments.

In order to implement the same,an MoU and the Mode of operation of Border Haats across the border between Bangladesh and lndia was signed on 23rd October, 2010, Subsequently, an Addendum to Mode of operation of Border Haats across the Border between Bangladesh and India was also signed on 15th May, 2012.

The following Border Haats are already operational:

1. Kalaichar (Meghalaya-Bangladesh border)
2. Balat (Meghalaya-Bangladesh border)
3. Kamlasagar (Tripura-Bangladesh border)
4. Srinagar (Tripura-Bangladesh border)

In addition, both the Government agreed to further establish two Border Haats in Tripura and four Border Haats in Meghalaya on the Bangladesh border. 
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Closure of HMT Watches Ltd. (HMTW), HMT Chinar Watches Ltd. (HMTCW) and HMT Bearings Ltd. (HMTB) 
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for offering attractive VRS / VSS packages at 2007 pay scales to mitigate the hardships being faced by the employees of HMT Watches Ltd., HMT Chinar Watches Ltd. and HMT Bearings Ltd. and close their operations.

The movable and immovable assets of the companies will be disposed of as per the Govt. policy.

With a cash assistance of Rs. 427.48 crore, the three loss making subsidiaries of HMT Ltd. namely HMT Watches Ltd,, HMT Chinar Watches Ltd., HMT Bearings Ltd., will attain closure after separation of about a thousand employees through attractive VRS /VSS and settlement of their dues.

Background: 

There are 31 CPSEs under the Department of Heavy Industry engaged in manufacturing, consultancy and contracting services. Out of these, 12 are making profits. The remaining 19 CPSEs are incurring losses.

The Department of Heavy Industry has been undertaking appraisals of each loss making CPSE to assess the prospects of revival. As a part of this exercise, the loss making CPSEs having the potential of turn around are revived and those found chronically sick are disinvested or closed down after payment of due compensation to employees. 
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Four laning of Nagina-Kashipur section of National Highway – 74 in Uttarakhand and Uttar Pradesh 
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for development of the four laning of the Nagina-Kashipur section of National Highway – 74 in Uttarakhand and Uttar Pradesh.

This work will be under the National Highways Development Project (NHDP) Phase-IV. The approval is in Engineering, Procurement and Construction (EPC) basis. The project is covered in the region of Nagina and Kashipur in Uttarkhand and Uttar Pradesh.

The cost is estimated to be Rs.2535.54 crore including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities. The total length of the road will be approximately 99 kms.

The main objective of the project is to facilitate the improvement of infrastructure in Uttarakhand and Uttar Pradesh. It will also help in reducing the time and cost of travel for traffic, particularly heavy traffic, plying on the Nagina-Kashipursector. The development of this stretch will also help in uplifting the socio-economic conditions of the concerned regions of the two States and would also increase employment potential for local labourers for project activities. 


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