While briefing media, Union minister Ashwini Vaishnaw highlighted the formation of 12 Industrial Smart Cities and said that the Industrial Smart Cities under National Industrial Corridor Development Programme are aligned with vision of Viksit Bharat.
They will cement India‘s role in global value chains with ready-to-allot land for investors, he further added.
Here are the key decisions:
12 Industrial Smart Cities
Cabinet approved 12 Industrial Smart Cities under National Industrial Corridor Development Programme with outlay of Rs 28,602 crore.
These industrial smart cities are being built under the National Industrial Corridor Development Programme (NIDCP). These industrial nodes will cover 10 states and have been strategically planned along 6 major corridors.
These industrial areas will be located in Khurpia in Uttrakhand, Rajpura-Patiala in Punjab, Dighi in, Maharashtra, Palakkad in Kerela, Agra and Prayagraj in UP, Gaya in Bihar, Zaheerabad in Telangana, Orvakal and Kopparthy in AP and Jodhpur-Pali in Rajasthan.
Investment potential in these industrial hubs are Rs 1.5 lakh crore with 10 lakh direct and 30 lakh indirect employment potential.
“India to soon have a grand necklace of Industrial Smart Cities on the backbone of Golden Quadrilateral as Cabinet approves 12 World-class greenfield Industrial Smart Cities under National Industrial Corridor Development Programme,” DG PIB posted on X, soon after the Cabinet meeting.
Agri Infra Fund Expansion
In a boost to farmers, the Cabinet chaired by PM Modi approved the expansion of Agricultural Infrastructure Fund (AIF).
To enhance and strengthen the agricultural infrastructure in the country and support the farming community, the Government has announced a series of measures to expand the scope of Agricultural Infrastructure Fund (AIF) scheme, said Centre in a press release.
Viable Farming Assets: To allow all eligible beneficiaries of scheme for creation of infrastructure covered under ‘viable projects for building community farming assets’.
Integrated Processing projects: To include integrated primary secondary processing projects in list of eligible activities under AIF. However standalone secondary projects would not be eligible and would be covered under MoFPI schemes.
PM KUSUM Component-A: To allow convergence of Component-A of PM-KUSUM with AIF for farmer/group of farmers/ Farmer Producer Organizations/ Cooperatives/ Panchayats. The alignment of these initiatives aims to promote sustainable clean energy solutions alongside the development of agricultural infrastructure.
NABSanrakshan: In addition to CGTMSE, it is proposed to extend AIF credit guarantee coverage of FPOs through the NABSanrakshan Trustee Company Pvt. Ltd. also. This expansion of credit guarantee options is intended to enhance the financial security and creditworthiness of FPOs, thereby encouraging more investments in agricultural infrastructure projects.
Three New Railway Projects
Two new railway lines and one multi-tracking project worth Rs 6,456 crores across the Indian Railways have been announced by the Cabinet. The three projects cover seven districts in Odisha, Jharkhand, West Bengal, and Chhattisgarh. They will increase the existing network of Indian Railways by about 300 Kms.
These are essential routes for transport of agriculture products, fertilizer, coal, iron ore, steel, cement, and limestone among others. The capacity augmentation works will result in 45 Million Tonnes Per Annum (MTPA) of additional freight traffic.
An official statement said these projects will improve logistical efficiency by increasing the existing line capacity.
“This will result in streamlined supply chains and accelerated economic growth,” the statement said while adding that these new line proposals will provide direct connectivity and improve mobility.
Under these projects, 14 New Stations will be constructed, providing enhancing connectivity to Aspirational Districts of Nuapada and East Singhbum. New Line projects will also provide connectivity to approximately 1,300 villages and about 11 Lakh people. The multi-tracking project will improve connectivity to a similar number of villages and but to about 19 lakh people.
A Boost to Northeast
The cabinet gave nod to Rs 4,136 crore equity support to northeast states for hydropower development.
“This scheme has an outlay of Rs. 4136 crore to be implemented from FY 2024-25 to FY 2031-32. A cumulative hydro capacity of about 15000 MW would be supported under the scheme. The scheme would be funded through 10% Gross Budgetary Support (GBS) for North Eastern Region from the total outlay of the Ministry of Power,” said the government in a press release.
The grant towards equity portion of the State Government of NER would be capped at 24% of the total project equity subject to a maximum of Rs.750 crore per project. The cap of Rs.750 crore for each project would be revisited, if required, on a case-to-case basis. The ratio of equity of the CPSU and the State Government in the JV would be maintained at the time of disbursing of the grant.
Central Financial Assistance would be limited to only viable Hydro Electric Projects. States would be required to waive / stagger free power and / or reimburse SGST to make the project viable, the government said.
FM Radio Expansion
The cabinet also approved the proposal for conduct of third batch of ascending e-auctions for 730 channels in 234 new cities with estimated reserve price of Rs 784.87 crore under Private FM Radio Phase Ill Policy.
Furthermore, it also approved the proposal to charge Annual License Fee (ALF) of FM channel as 4 per cent of Gross Revenue excluding Goods and Services Tax (GST). This will be applicable for 234 new cities, towns.
It will lead to creation of new employment opportunities, boost to local dialect and culture and ‘vocal for local’ initiatives.
“Many of the approved cities / towns are in Aspirational districts and LWE affected areas. Setting up of Private FM Radio in these areas will further strengthen Government outreach in these areas,” government said in a press release.