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Tag: Union Cabinet

  • Cabinet Modifies Budgetary Support for Enabling Infrastructure for Hydroelectric Project

    The proposal of the Ministry of Power to modify the scheme of budgetary assistance for the cost of Enabling Infrastructure for Hydro Electric Projects (HEP) with a total outlay of INR 12461 crore was approved by the Union Cabinet which was led by Prime Minister Narendra Modi. The framework would be put into action between the fiscal years 2024-25 and 2031-32.

    Several policy initiatives have been taken by the Government of India in order to overcome the challenges that are preventing the growth of hydropower. These issues include steep terrain, a lack of infrastructure, and other similar issues. In March 2019, the Cabinet approved a number of measures with the purpose of promoting the hydro power sector and making it more viable. These measures include announcing large hydropower projects as Renewable Energy sources, Hydro Power Purchase Obligations (HPOs), tariff rationalisation measures through escalating tariffs, budgetary support for flood moderation in storage HEP, and budgetary support for the cost of enabling infrastructure, which includes the construction of roads and bridges.

    To Facilitate the Expedited Construction of Hydroelectric Projects

    For the purpose of expediting the development of hydroelectric projects, the government has expanded the scope of the budgetary support for enabling infrastructure to include four additional items beyond the construction of roads and bridges. These include the following: (i) transmission lines from the powerhouse to the nearest pooling point, including the upgrade of the pooling substation of the State / Central Transmission Utility; (ii) ropeways; (iii) railway sidings; and (iv) communication Central funding is also available under this programme to improve preexisting roads and bridges that connect to the project.

    Secondly, the Indian government has allocated funds to cover the cost of enabling infrastructure. This will happen when the Director of the Intelligence Bureau (DIB)/PIB has assessed the money and the competent authority has given its approval according to the current regulations.

    In addition, the plan is set to roll out from FY 2024-25 to FY 2031-32 with a total expenditure of INR 12,461 crore, which will cover a cumulative generation capacity of approximately 31,350 MW. Hydropower projects with a capacity of more than 25 MW, whether they are publicly or privately funded, will be a part of the plan. As long as the project allocation is open and honest, this plan will work for any type of Pumped Storage Project (PSP), including Captive/Merchant PSPs. Under the plan, up to 15,000 MW of PSP capacity will be supported.

    Benefits

    Improved infrastructure in remote and hilly project locations, faster development of hydroelectric projects, and a large number of direct jobs for locals would all result from this revised scheme. Indirect jobs and entrepreneurial opportunities would also be generated through transportation, tourism, and small-scale businesses. It would motivate new investments in the hydropower industry and speed up the completion of existing projects.

    India Shifting Gears Towards Greener Energy
    Explore ambitious government targets and innovative projects like floating solar plants and green hydrogen missions to position India as a global leader in clean energy solutions.
    StartupTalkyNitin Konde

  • The Union Cabinet Confirms to the PM-eBus Sewa-Payment Security Mechanism (PSM) Proposal

    With an outlay of INR 3,435.33 crore, the “PM-eBus Sewa-Payment Security Mechanism (PSM) scheme” for the procurement and operation of e-buses by Public Transport Authorities (PTAs) has been approved by the Union Cabinet, which was headed by the Prime Minister Narendra Modi.

    From fiscal year 2024-25 to fiscal year 2028-29, this initiative will facilitate the deployment of over 38,000 electric buses (e-Buses). The operation of e-buses will be supported by the PSM scheme for a maximum of 12 years from the date of deployment.

    The Move Aims to Create Healthy Environment

    The majority of buses operated by Public Transport Authorities (PTAs) are currently powered by diesel/CNG, which has a harmful environmental impact. Conversely, electric buses are more environmentally friendly and incur reduced operational expenses. It was, however, anticipated that Public Transport Authorities (PTAs) would encounter difficulties in the procurement and managing administration of e-buses due to their high initial cost and reduced revenue realisation from operations.

    Public Transport Authorities (PTAs) implement these buses through the Public Private Partnership on Gross Cost Contract (GCC) model in order to mitigate the substantial capital expenditures associated with e-buses. Under the GCC model, the PTAs are not obligated to pay the initial cost of the bus. Rather, OEMs/operators can operate e-buses for PTAs by accepting monthly payments. OEMs/operators are, however, apprehensive about participating in this paradigm because of their apprehensions regarding potential payment defaults.

    A dedicated fund is established to guarantee that OEMs/operators receive payments in a punctual manner, thereby addressing this concern. In the event that PTAs fail to make payments, CESL, the implementing agency, will make the requisite payments from the scheme funds. These payments will be recovered by the PTAs/State/UTs at a later date.

    The Initiative Will Also Encourage the Use of Electric Trucks

    The scheme will also provide an allocation of INR 500 crore to encourage the adoption of electric vehicles and INR 780 crore outlay to modernise testing agencies for the EV ecosystem.

    WRI India’s executive programme director for integrated transport, clean air, and hydrogen, Pawan Mulukutla, stated that the Cabinet’s approval serves as a reminder of India’s ambitious decarbonisation objective in the transport sector, which involves the deployment of 50,000–60,000 e-buses in the coming years through initiatives such as the National Electric Bus Programme and the PM-eBus Sewa. This was imperative to enhance the project’s bankability and secure the continued involvement of private stakeholders, who were previously apprehensive about the possibility of delayed payments or defaults. He stated that this will ultimately lead to a reduction in operational costs as a consequence of increased competition.

    The Union Minister to Visit Bengaluru to Officially Launch the Electric Vehicle Testing Facility
    On August 22, 2024, Pralhad Venkatesh Joshi, Union Minister of Consumer Affairs, Food and Public Distribution, and New and Renewable Energy, will lay the foundation stone of the Electric Vehicle (EV) Testing Facility at the National Test House (NTH) RRSL Camp in Bengaluru.
    StartupTalkyNitin Konde

  • To Encourage Investment, the Cabinet Has Approved 12 “Industrial Smart Cities” and Will Spend INR 28,602 Crore on Them

    On 28 August 2024, 12 “industrial smart cities” across 10 states were given the green light by the Union Cabinet to receive an estimated investment of INR 28,602 crore, to enhance domestic manufacturing.

    List of cities approved for “industrial smart cities”

    City State
    Khurpia Uttarakhand
    Rajpura-Patiala Punjab
    Dighi Maharashtra
    Palakkad Kerala
    Agra and Prayagraj Uttar Pradesh
    Gaya Bihar
    Zaheerabad Telangana
    Orvakal and Kopparthy Andhra Pradesh
    Jodhpur-Pali Rajasthan

    At a press briefing, Commerce Minister Piyush Goyal stated that these projects seek to cultivate an industrial ecosystem by enabling investments from both large anchor industries and micro, small, and medium enterprises (MSMEs). They are designed to attract foreign direct investment (FDI) from countries like Switzerland and Singapore.

    The projects, which cover ten states and six significant industrial corridors, would link the Golden Quadrilateral in what the minister called a “necklace of industrial cities.” He went on to say that these cities will have “plug-and-play” infrastructure, meaning they will have access to clean water and power at all times.

    Steps Taken to Execute the Plan

    Following the announcement made by Finance Minister Nirmala Sitharaman during the Union Budget speech, in which she revealed a proposal to sanction 12 industrial parks under the National Industrial Corridor Development Programme (NICDP), the Cabinet has given its approval to the scheme.

    According to Sitharaman, “Our government will facilitate the development of investment-ready ‘plug-and-play’ industrial parks with complete infrastructure in or near one hundred cities.” This will be accomplished in conjunction with states and the business sector, and would be accomplished through improved utilisation of town planning schemes

    In the past, the government of Odisha did not grant any land for the project; however, following the administration shift, the land has been designated for the project. The state of West Bengal had presented a plan, but they ultimately decided to withdraw it. According to Goyal, industrial ventures will be built in any state that assists the Central Government.

    The Scheme Will Help India’s Exports Reach $2 Trillion by 2030

    By the year 2030, it is anticipated that these industrial nodes will serve as accelerators for the achievement of a total export value of $2 trillion. According to a statement released by the government, the new industrial cities would be developed as greenfield smart cities that meet global standards. These cities will be constructed “ahead of demand” based on the principles of “plug-and-play” and “walk on to work.”

    The National Industrial Corridor Development Programme (NICDP) projects are planned with a focus on sustainability, including ICT-enabled utilities and green technology to reduce their impact on the environment. The goal of the government is to establish industrial cities that are not only centers of economic activity but also exemplary examples of environmental management. This will be accomplished by providing infrastructure that is of high quality, dependable, and sustainable.

    The Government Backing Foreign Investment in India by Forming Right Policies and Initiatives
    To facilitate the country’s overall industrial growth, the Indian government intervenes with suitable policies via DPIIT and other Central Ministries/Departments.
    StartupTalkyNitin Konde