The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for introduction of the Payment of Gratuity (Amendment) Bill, 2017 in the Parliament.
The Amendment will increase the maximum limit of gratuity of employees, in the private sector and in Public Sector Undertakings/ Autonomous Organizations under Government who are not covered under CCS (Pension) Rules, at par with Central Government employees.
Background:
The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons. The main purpose for enacting this Act is to provide social security to workmen after retirement, whether retirement is a result of the rules of superannuation, or physical disablement or impairment of vital part of the body. Therefore, the Payment of Gratuity Act, 1972 is an important social security legislation to wage earning population in industries, factories and establishments.
The present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh. The provisions for Central Government employees under Central Civil Services (Pension) Rules, 1972 with regard to gratuity are also similar. Before implementation of 7th Central Pay Commission, the ceiling under CCS (Pension) Rules, 1972 was Rs. 10 Lakh. However, with implementation of 7th Central Pay Commission, in case of Government servants, the ceiling now is Rs. 20 Lakhs effective from 1.1.2016.
Therefore, considering the inflation and wage increase even in case of employees engaged in private sector, the Government is of the view that the entitlement of gratuity should be revised for employees who are covered under the Payment of Gratuity Act, 1972. Accordingly, the Government initiated the process for amendment to Payment of Gratuity Act, 1972.
Cabinet apprised of MoU between India and Japan for collaborative research in the field of silkworm and silk industries
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has been apprised of a Memorandum of Understanding (MoU) between Central Silk Board (CSB), India and National Institute of Agrobiological Sciences (NIAS), Japan for collaborative research in the field of silkworm and silk industries.
The MoU was signed on 11.11.2016 between CSB and NIAS for initiating a Collaborative Research for developing prolific bivoltine hybrids of silkworm suitable for the Indian tropical conditions. The MoU is of scientific and technological nature. It would help in developing prolific hybrid silkworms, which would improve the manufacturing capacity and the quality standards of the Indian sericulture industry and thereby enhance exports of silk and silk products.
It is expected that subsequent to the MoU, the Indian Textiles & Apparel Industry would be able to produce world class silk and silk products. The improvement of quality and productivity would ultimately increase export of silk products.
Cabinet approves hiving off mobile tower assets of Bharat Sanchar Nigam Limited into a separate company, fully owned by BSNL
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for hiving off mobile tower assets of Bharat Sanchar Nigam Limited (BSNL) into a separate company, fully owned by BSNL.
This approval authorizes BSNL to monetize its telecom tower infrastructure with the formation of a separate subsidiary company.
There are around 4,42,000 mobile towers in the country out of which more than 66,000 mobile tower are of BSNL. An independent, dedicated tower company of BSNL with a focused approach will lead to increasing of external tenancies and consequentially higher revenue for the new company.
Background:
The telecom tower industry has emerged as an independent business to harness the potential for sharing of infrastructure. The business model arose from the need to achieve economies of scale and to reduce capital investment costs for providing mobile services. The Department of Telecommunications (DoT) policy allows sharing of passive infrastructure i.e. the tower structure, Diesel Generator sets, battery units, power interface unit, air-conditioning etc., which has facilitated the growth of the telecom infrastructure industry. A tower infrastructure company essentially owns the passive infrastructure asset and leases it to telecom service providers enabling them to minimize duplication of investments and economize on costs of Operation and Maintenance (O&M), thereby improving profitability.
Besides the captive model in BSNL and MTNL where the service provider owns their passive infrastructure also, there are three different business models within the telecom tower industry:- companies created by hiving off the tower assets portfolios of service providers into subsidiaries, companies established as independent joint venture entities by service providers jointly and companies promoted by specific service providers but established as independent entities with the promoter being the anchor tenant for the tower company.
Cabinet approves MoU between India and Armenia on Cooperation in the field of Disaster Management
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for signing of a Memorandum of Understanding (MoU) between India and Armenia on Cooperation in the field of Disaster Management
The MoU would enhance cooperation in the field of Disaster Management and contribute to the well-being and safety of the people of both the countries in the event of disaster. It will also result in exchange of information in the relevant fields of disaster management which is of mutual interest.
Further, the MoU seeks to put in place a system, whereby both India and Armenia will be benefited from the disaster management mechanisms of the other country and will help in strengthening the areas of preparedness, response and capacity building.
Cabinet approves MoU between India and Morocco on cooperation in the field of health
The Union Cabinet chired by the Prime Minister Shri Narendra Modi has given its approval for signing of a Memorandum of Understanding (MoU) between India and Morocco on cooperation in the field of health.
The MoU covers the following areas of cooperation:-
i) Non-communicable diseases, including child cardiovascular diseases and cancer;
ii) Drug Regulation and Pharmaceutical quality control;
iii) Communicable Diseases;
iv) Maternal, child and neonatal health;
v) Hospital twinning for exchange of good practices;
vi) Training in administration and management of health services and Hospitals;
vii) Any other area of cooperation as may be mutually decided upon.
A Working Group will be set up to further elaborate the details of cooperation and to oversee the implementation of this MoU.
Cabinet approves release of additional 1% Dearness Allowance to Central Government employees and Dearness Relief to pensioners w.e.f. 01.07.2017
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for release of additional 1% Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners. It will be applicable from 01.07.2017.
The release of the additional instalment of DA represents an increase of 1% over the existing rate of 4% of the Basic Pay/Pension, to compensate for price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The combined impact on the exchequer on account of both DA and DR would be Rs.3068.26 crore per annum and Rs.2045.50 crore in the financial year 2017-18 (for a period of 8 months from July, 2017 to February, 2018). This will benefit about 49.26 lakh Central Government employees and 61.17 lakh pensioners.
Cabinet Committee on Economic Affairs (CCEA)
Cabinet approves development of six laning of Narasannapeta-Ranastalam section of National Highway (NH) - 16 in Andhra Pradesh
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for development of six laning of Narasannapeta-Ranastalam section of National Highway (NH) – 16 (old NH-5) in Andhra Pradesh.
The cost is estimated to be Rs.1423 crore including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities. The total length of the six laningroad to be developed is approximately 54 km.
This work will be done under National Highways Development Project (NHDP) Phase V on Hybrid Annuity Mode.
The major industrial development centres that will be benefitted with better connectivity from the project corridor are APIIC SEZ, Pydibhimavaram, Bhogapuram Airport, Vizag Steel Plant, Visakhapatnam Port, Gangavaram Port, Divi'S Laboratories Limited & INS Varsha. The projected traffic in 2016-17 on this stretch is about 33000 PCUs per day. Keeping in view the expected traffic growth in the near future, the expansion to from existing four Lanes to Six lanes is a very timely step taken by the Government of India.
The provision for two by-passes will ensure decongestion of the urban areas of Etcherla and Ranastalam. Similarly, the 29 flyovers/ VUPs/CUPs would facilitate fast movement of traffic in the project reach while simultaneously decongesting the areas. Three trucks parking will facilitate smooth movement of freight traffic. The truck drivers would also benefit from the amenities in one rest area being developed. On both sides, provision for service roads in 37 km of the project stretch, slip roads in about 43 km and bus bays at 42 locations will benefit safe, comfortable and smooth movement of long distance commercial traffic as well as movement of local traffic in inhabited/urbanized areas.
The project would also increase employment potential for local labourers from project activities. It has been estimated that a total number of 4076 mandays are required for construction of one kilometre of highway. As such, employment potential of 2,21,000 (approx.) mandays will be generated locally during the construction period of this stretch. Consequent self-employment due to improved traffic conditions would be in addition.
Background:
At present, the existing road is two-lane and passes through urban habitations of Narasannapeta,Madapam, Singipurma, Pedapadu, Seepannaidupeta, Navabharatnagar, Chilakapalem, Budumuru, Bonthupeta and Laveru. National Highway No-16 (Old NH-5), a part of Golden Quadrilateral, connects Chennai in the State of Tamilnadu and Kolkata in the State of West Bengal, and passes through Cuttack, Bhubaneswar, Visakhapatnam and Vijayawada. The development to six-lane of this road with bypasses at Etcherla&Ranastalam, and construction of 29 flyovers/VUPs/CUPs would greatly reduce travel time and Vehicle Operating Costs as well as help in expediting the improvement of infrastructure in Andhra Pradesh state. This road is part of the high-density traffic corridor namely Kolkata-Cuttack-Bhubaneswar-
Cabinet approves survey of Un-appraised Areas of Sedimentary Basins of India
The Cabinet Committee on Econoic Affairs chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for a significant project to acquire 48,243 Line Kilometer (LKM) 2D seismic data for appraisal of Indian sedimentary basins where limited data is available.
The project will help in increasing the investments in domestic production of oil and gas. The project will be implemented by NOCs, i.e. Oil India Limited (OIL) and Oil and Natural Gas Corporation (ONGC). OIL will conduct survey in North - Eastern States while remaining area will be covered by ONGC. Survey work will be carried out in 24 States.
Total estimated cost of the entire project is Rs. 2932.99 crore spread over five years. Initially National Oil Companies (NOCs) are meeting the fund requirement from their own sources, which will be reimbursed by the Government.
Entire project is likely to be completed by 2019-20. Directorate General of Hydrocarbons is monitoring the project and reviewing the progress on monthly basis.
Project involves engagement of large number of workers at local level where work is to be executed. This is likely to generate direct as well as indirect employment for about 11,000 people in the form of skilled and unskilled workers and suppliers for support services. After the appraisal of these basins, and based on the prospectivity of the area, blocks will be offered for further exploration & production activities which will further generate employment.
Background:
India has 26 sedimentary basins covering an area of 3.14 Million Sq Km spread over onland, shallow water and deep water. An area of about 1.502 Million Sq. Km i.e. 48% of total sedimentary basin area does not have adequate geo-scientific data. As a base to launch future Exploration and Production (E&P) activities, appraisal of all unappraised areas has been considered an important task. The preparatory work started in 2015-16 and actual survey work started in 2016-17 and more than 9100 LKM 2D seismic data has been acquired till July, 2017.
Data acquisition is important as it helps in giving the initial insight into the basins and helps in planning the future E&P activities. It will be useful in deciding the focus areas of the exploration activities in the country and on the basis of this primary data, E&P companies would take up further exploration activities in the acreages allocated to them.
Cabinet approves implementation of the scheme “Dairy Processing & Infrastructure Development Fund”
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has approved a Dairy Processing & Infrastructure Development Fund” (DIDF) with an outlay of Rs 10,881 crore during the period from 2017-18 to 2028-29.
Consequent to the Union Budget 2017-18 announcement, Dairy Processing & Infrastructure Development Fund will be set up as a corpus of Rs 8004 crore with National Bank for Agriculture and Rural Development (NABARD), the Expenditure Finance Committee has given approval for;
Initiation and setting up of Dairy Processing and Infrastructure Development Fund (DIDF) at a total scheme outlay of Rs 10881 crore. Out of Rs 10881 crore of financial outlay for project components of DIDF, Rs 8004 crore shall be loan from NABARD to National Dairy Development Board (NDDB) and National Dairy Development Cooperation (NCDC), Rs 2001 crore shall be end borrowers contribution, Rs 12 crore would be NDDB/NCDC‘s share and Rs 864 crore shall be contributed by DADF towards interest subvention. NABARD shall disburse Rs 2004 Cr, Rs 3006 Cr and Rs 2994 Cr during the year 2017-18, 2018-19 and 2019-20 respectively.
Allocation of Rs 864 Crore for meeting interest subvention will be released to NABARD over a period of 12 years covering the entire loan repayment period from 2017-18 to 2028-29.
The major activities of DIDF:
The project will focus on building an efficient milk procurement system by setting up of chilling infrastructure & installation of electronic milk adulteration testing equipment, creation/modernization/
Management of DIDF:
The project will be implemented by National Dairy Development Board (NDDB) and National Dairy Development Cooperation (NCDC) directly through the End Borrowers such as Milk Unions, State Dairy Federations, Multi-state Milk Cooperatives, Milk Producer Companies and NDDB subsidiaries meeting the eligibility criteria under the project. An Implementation and Monitoring Cell (IMC) located at NDDB, Anand, will manage the implementation and monitoring of day-to-day project activities.
The end borrowers will get the loan @ 6.5% per annum. The period of repayment will be 10 years with initial two years moratorium.
The respective State Government will be the guarantor of loan repayment. Also for the project sanctioned if the end user is not able to contribute its share; State Government will contribute the same.
Rs 8004 crore shall be loan from NABARD to NDDB/NCDC, Rs 2001 crore shall be end borrowers contribution, Rs 12 crore would be jointly contributed by NDDB/NCDC and Rs 864 crore shall be contributed by DADF towards interest subvention.
Benefits from DIDF:
With this investment, 95,00,000 farmers in about 50,000 villages would be benefitted. Additional Milk processing capacity of 126 lakh litre per day, milk drying capacity of 210 MT per day, milk chilling capacity of 140 lakh litre per day, installation of 28000 Bulk Milk Coolers (BMCs) along with electronic milk adulteration testing equipment and value added products manufacturing capacity of 59.78 lakh litre per day of milk equivalent shall be created.
Initially 39 MUs the Department will start the project with 39 profit making milk unions of 12 States, other Milk Cooperatives which become eligible on the basis of their net worth and profit levels, in subsequent years, to apply for loan under DIDF.
Employment Generation Potential:
The implementation of DIDF scheme will generate direct and indirect employment opportunities for skilled, semi-skilled and unskilled manpower. Direct employment opportunities for about 40,000 people will be created under the scheme through project activities like expansion & modernisation of existing milk processing facilities, setting up of new processing plants, establishment of manufacturing facilities for value added products and setting up of Bulk Milk Coolers (BMCs) at village level.
About 2 lakh indirect employment opportunities will be created on account of expansion of milk and milk product marketing operations from existing Tier I, II & III to Tier IV, V & VI cities/towns etc. This will lead to deployment of more marketing staff by Milk Cooperatives, appointment of distributors and opening of additional milk booths/retail outlets in urban/rural locations.
With the increase in milk procurement operations of the Milk Cooperatives, there would be generation of additional manpower employment for supervision of increased milk procurement operations, transportation of milk from villages to processing units, and increased input delivery services like Artificial Insemination (AI) services, Veterinary Services, etc.
Cabinet approves doubling of Daund-Manmad railway line
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for doubling of Daund-Manmad railway lineat an estimated cost of Rs.2,081.27 crore and expected completion cost of Rs.2330.51 crore.
The 247.5 km long railway line is expected to be completed in five years.
Doubling of the line will greatly ease the ever increasing passenger and freight traffic on Daund-Manmad route thereby increasing the revenue of Railways. Besides travelling people, industries in and around Daund-Manmad route will have additional transport capacity to meet their requirements. The districts of Pune, Ahmednagar and Nashik in Maharashtra will be benefited by this project.
Background:
The doubling of Bhigwan-Mohol, Hotgi-Gulbarga on Mumbai-Chennai main route is in progress. Similarly work of new line between Lonand-Phaltan-Baramati is in progress which will connect Pune-Lonand section with CSTM-Chennai route at Daund. Once these works are completed, there will be tremendous increase in traffic over the Daund-Manmad section and existing single line will not be in a position to deal with the increased traffic.
Cabinet approves doubling of Barabanki-Akbarpur railway line
The Cabinet Committee n Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for doubling of Barabanki-Akbarpur railway line at an estimated cost of Rs.116.09 crore and expected completion cost of Rs.1310.23 crore.
The 161 km long railway line is expected to be completed by 2021-22.
Doubling of the line will greatly ease the ever increasing passenger and freight traffic on Barabanki-Akbarpur route thereby increasing the revenue of Railways. Besides travelling people, industries in and around Barabanki-Akbarpur rout
Background:
The Barabanki-