To boost Infrastructure projects across all the sectors at a time of a global pandemic, several decisions were taken by the Union Cabinet under the chairmanship of Prime Minister of India Narendra Modi on 24th June 2020.
Animal Husbandry Infrastructure Development Fund (AHIDF)
The goal of setting up AHIDF is to unlock private sector investments in the animal husbandry sector. Through the fund, Infrastructural developments will be promoted in dairy, animal feed, and meat processing plants. As per Government estimate, the fund will help in creating up to 35,00,000 jobs across the country.
It said that since almost 50-60 percent of the final value of dairy output in India flows back to farmers, the growth in this sector can have a considerable direct impact on farmer’s income.
The total budget for the fund is Rs 15,000 Cr. Beneficiaries of the fund will be MSMEs, Farmer Producer Organisations (FPOs), Private Companies, Section 8 companies, and Individual Entrepreneurs working in the Animal Husbandry Sector. Beneficiaries will be provided with a 3% Interest subvention by the Government of India. Decisions taken by the Cabinet on 24th June 2020 to Boost Infrastructure Projects
Uttar Pradesh’s Khushinagar Airport declared as an International Airport
Khushinagar is a Buddhist pilgrimage town where Gautama Buddha attained Mahaparinirvana. The move will provide a much-needed boost to the tourism sector of the country in the post COVID-19 world as International connectivity will increase number of foreign and as well as domestic tourists. This will lead to consequential economic development in and around the region.
US $ 121.27 million approved for Shwe Oil & Gas Project
ONGC Videsh Limited (OVL) was given approval by the Government with an additional Rs. 909 Cr (US $ 121.27 million) for further development of the Shwe Oil & Gas project. The Shwe Oil & Gas Project is located in Myanmar. The project is a part of the consortium of companies. Apart from India, companies from Myanmar and South Korea are also a part of the Shwe project. From India, state-owned company GAIL is also a co-investor in the project.
The first gas from the project was received. OVL has invested Rs 3,949 Cr on the Shwe gas project until 31st March 2019. Since 2014-15 the project has given investors positive cash flows.
The additional investment provided to OVL will further help in the continuous development of the Shwe Project. The success of this oil and gas exploration project in a neighbouring country will help India in strengthing its energy security needs. It is also important for the overall global and as well as regionally for India to develop such energy bridges with the neighbours. Decisions taken by the Cabinet on 24th June 2020 to Boost Infrastructure Projects