The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved restoration of interest subvention on short-term agriculture loans to 1.5% for all financial institutions.
The Cabinet has also given nod to enhancement in the limit of Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 50,000 crore, from Rs 4.5 lakh crore to Rs 5 lakh crore, with the additional amount being earmarked exclusively for enterprises in hospitality and related sectors.
The Cabinet has also approved the “widening access of the Traditional Knowledge Digital Library (TKDL) database to users, besides patent offices”.
The Cabinet was also apprised of the signing of contract between the Organisation for Economic Cooperation and Development, France on behalf of the International Transport Forum and the Technology Information, Forecasting and Assessment Council (TIFAC), India to support the International Transport Forum (ITF) activities on the Indian Transport Sector.
INTEREST SUBVENTION ON AGRI LOANS
Interest subvention of 1.5% will be provided to lending institutions for 2022-23 to 2024-25 for lending short term agri-loans upto Rs 3 lakh to the farmers.
It covers public sector banks, private sector bank, small finance banks, regional rural banks, cooperative banks and computerized PACS directly ceded with commercial banks.
This increase in interest subvention support requires additional budgetary provisions of Rs 34,856 crore for the period of 2022-23 to 2024-25.
It will ensure sustainability of credit flow in the agriculture sector as well as ensure financial health and viability of the lending institutions, especially regional rural banks and cooperative banks, ensuring adequate agriculture credit in rural economy.
Banks will be able to absorb increase in cost of funds and will be encouraged to grant loans to farmers for short-term agriculture requirements and enable more farmers to get the benefit of agriculture credit. It will also lead to generation of employment as short term agri-loans are provided for all activities, including animal husbandry, dairying, poultry and fisheries.
Farmers will continue to avail short-term agriculture credit at an interest rate of 4% per annum while repaying the loan in time.
THE ECLGS
The additional amount of Rs 50,000 crore in ECLGS would be made applicable to enterprises in hospitality and related sectors till the validity of the scheme which is 31.3.2023.
The enhancement is expected to provide much-needed relief to enterprises in these sectors by incentivising lending institutions to provide additional credit of up to Rs 50,000 crore at low cost, thereby enabling these business enterprises to meet their operational liabilities and continue their businesses.
Loans of about Rs 3.67 lakh crore have been sanctioned under ECLGS till August 5, 2022.
THE TRADITIONAL KNOWLEDGE DIGITAL LIBRARY
The opening up of the Traditional Knowledge Digital Library (TKDL) database to users is an ambitious action, as the TKDL will drive research and development, and innovation based on India’s valued heritage across diverse fields.
The opening up of the TKDL is also envisaged to inculcate thought and knowledge leadership through Bharatiya Gnana Parampara, under the New Education Policy 2020.
The approval of the Cabinet to widen the access of the database beyond patent offices lays emphasis on integrating and co-opting traditional knowledge with current practices towards enhancing innovation and trade.
The TKDL can cater to a vast user base that would include businesses/companies {herbal healthcare (AYUSH, pharmaceuticals, phytopharmaceuticals, and nutraceuticals), personal care, and other FMCG}, research institutions: public and private; educational institutions: educators & students; and others: ISM practitioners, knowledge holders, patentees and their legal representatives, and government, among several others. The access to the TKDL database would be through a paid subscription model with a phase-wise opening to national and international users.
CONTRACT BETWEEN INDIA AND FRANCE
The contract was signed on July 6 and will lead to new scientific results, new policy insights, capacity building through increase scientific interaction and identification of technology options for decarbonisation of transport sector in India.
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