New Delhi: The Cabinet on Tuesday officially approved a two-month interest waiver on short-term farm loans in use from cooperative banks.
The decision was declared by Prime Minister Narendra Modi on New Year’s Eve as a relief measure to aid winter planting next demonetization of high-value banknotes in November led to a cash is the very critical situation in rural areas.
The loss will cost to the government an additional Rs1,060 crore in addition to the Rs15,000 crore spent on providing interest subsidy to farmers for the duration of 2016-17, according to an official statement.
In one more decision is that the Cabinet approved a scheme that will provide interest subsidy to rural households that are not covered below the Pradhan Mantri Aawas Yojana (Grameen). The scheme aims to support people in rural areas people to construct new houses or add to their existing pukka houses. The beneficiaries of this scheme will be provided interest subsidy for a loan amount of up to Rs2 lakh.
The government will arrange for net present value of the interest subsidy of 3% to the National Housing Bank. The bank, which will implement the scheme, will then pass it to primary lending institutions such as scheduled moneymaking banks and non-banking financial companies. The scheme will not just improve the housing stock in rural areas but also create employment opportunities in the rural housing sector, the Cabinet assumed.
The cabinet also accepted swapping of 11.35 acres of Airport Authority of India land with equal land owned by the Bihar government for enlargement of the Patna airport.
The planned land at the Patna Airport will be used for development of the airport and construction of new terminal building along with other associated infrastructures.
In one more decision is that the cabinet approved an agreement of the second commitment period of the Kyoto Protocol on containing the emanation of greenhouse gases. The second commitment period of the Kyoto Protocol was assumed in 2012. So far, 65 countries have approved the second commitment period.
As a part of the government’s commitment to financial inclusion and social security, the cabinet has given its post-facto approval for the launching of Varishtha Pension Bima Yojana 2017. The scheme, which will provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions, will be implemented through Life Insurance Corp. of India this year.