NEW DELHI: Cabinet Committee on Economic Affairs (CCEA) on Wednesday decided to exclude state governments and Union territories (with Legislature) except Arunachal Pradesh, Delhi, Kerala and Madhya Pradesh from National Small Savings Fund (NSSF) investments from with effect from April 1, 2016. It also approved providing a one-time loan of Rs 45,000 crore from NSSF to the Food Corporation of India to meet its food subsidy requirements.
The Cabinet headed by Prime Minister Narendra Modi also approved amendment in the Modified Special Incentive Package Scheme (M-SIPS) to attract investments into the electronic sector. The amendments in M-SIPS are expected to create employment opportunities and reduce dependence on imports.
The CCEA also approved the proposal for an alternative mechanism to decide on the quantum of disinvestment in a particular central public sector enterprises on a case-by-case basis subject to the government retaining 51 per cent equity as well as management control. This would reduce speculation and overhang and expedite the disinvestment process.
The Cabinet also approved a number memorandums of understanding (MoU) between different countries on numerous subjects — with Serbia to promote information technology; with Russia for cultural exchange involving the youth; with Vietnam on cyber security; with United Arab Emirates for developing innovations and small and medium enterprises, agriculture and allied sectors, among others. MoUs with Portugal for agriculture and allied sectors; with Uruguay on customs; and with Kenya on agriculture was approved. An ex-post-facto approval to the package for supporting medium and small enterprises and an augmentation of the Corpus of Credit Guarantee Trust Fund was given.