Cabinet nod for supply of 2kg extra subsidised foodgrains via ration shops

"The government has decided to provide 7 kg per person of foodgrains to 80 crore people under the Public Distribution System (PDS), which the world's largest food security system," Information and Broadcasting Minister Prakash Javadekar said after the meeting.

New Delhi: To ensure sufficient supply during the lockdown, the government on Wednesday decided to increase monthly quota of subsidized foodgrains by 2 kg to 7kg per person through ration shops for 80 crore beneficiaries.

A decision in this regard was taken by the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.

"The government has decided to provide 7 kg per person of foodgrains to 80 crore people under the Public Distribution System (PDS), which the world's largest food security system," Information and Broadcasting Minister Prakash Javadekar told media after the meeting.

The cost of wheat is Rs 27/kg, which will be provided at a subsidised rate of Rs 2 kg, while the cost of rice is about Rs 32/kg but will be supplied at Rs 3/kg through ration shops, he said.

All states have been asked to take foodgrains from the Centre in advance for distribution through the PDS, he added.

Under the National Food Security Act (NFSA), the government is supplying 5 kg of foodgrains per month to over 80 crore people at a highly subsidised price.

The decision to allocate additional foodgrains through the PDS has been taken as state-run Food Corporation of India (FCI) is saddled with wheat and rice stock. With some foodgrains stock kept in open space, the FCI is under pressure to clear stock before monsoon.

Cabinet approves recapitalization of Regional Rural Banks

The Cabinet Committee on Economic Affairs has given its approval for continuation of the process of recapitalization of Regional Rural Banks (RRBs) by providing minimum regulatory capital to RRBs for another year beyond 2019-20, that is, up to 2020-21.

It is for those RRBs which are unable to maintain minimum Capital to Risk weighted Assets Ratio (CRAR) of 9%, as per the regulatory norms prescribed by the Reserve Bank of India.

The CCEA also approved utilization of Rs.670 crore as central government share for the scheme of Recapitalization of RRBs (i.e. 50% of the total recapitalization support of Rs.1340 crore), subject to the condition that the release of Central Government’s share will be contingent upon the release of the proportionate share by the sponsor banks.

Cabinet nod to railway flyover in Aligarh

The Union Cabinet gave its nod to the construction of a railway flyover in Uttar Pradesh's Aligarh to reduce congestion.

It also approved signing of an agreement between India and Germany to increase cooperation in the field of railways.

Briefing about the decisions taken by the Union Cabinet, Information and Broadcasting Minister Prakash Javadekar said the Aligarh-Harduaganj flyover will be 22 km long and is likely to be completed in five years.

Cab extends scheme for duty incentives on apparel, made-up exports

The Union Cabinet also extended the scheme for duty incentives to apparel and made-ups exports till Remission of Duties and Taxes on Exported Products comes into force.

Briefing reporters, Information and Broadcasting Minister Prakash Javadekar said the Cabinet approved extension of scheme for Rebate of State and Central Taxes and Levies on Export of Garments and Made-ups from April 1 onward till the scheme is merged with Remission of Duties and Taxes on Exported Products.

(Input from agencies)