Cabinet approves Equity Infusion of Rs 1500 crore to IREDA for the development of Renewable Energy Sector. Apart from this, the cabinet has extended the tenure of the National Commission for Safai Karamchari by 3 years.
Union Minister Anurag Thakur informed about the decisions of the cabinet meeting.
Cabinet Meeting Decisions: Prime Minister Narendra Modi Several important decisions were approved today in the cabinet meeting chaired by Cabinet (Cabinet, Approved capital infusion of Rs 1500 crore to the Indian Renewable Energy Development Agency Limited (IREDA) for the development of the renewable energy sector. In addition, the cabinet National Commission for Safai Karamchari The term of office has been extended for 3 years. Union Minister Anurag Singh Thakur has given information about the results of the cabinet meeting.
The Union Minister said that our government has focused a lot on renewable energy. The target of 500 GW was set and we are moving in that direction. We completed the set target ahead of time. Along with increasing the power generation capacity of renewable energy, it has been decided to increase its finance capacity.
— Jaideep Bhatnagar (@DG_PIB) January 19, 2022
Its portfolio of Rs 8,800 crore has grown to Rs 28,000 crore in 6 years. To increase the lending of the renewable energy sector, the government has approved to give it capital. It will be able to give loans up to Rs 12,000 crore. Due to which financing will be available for increasing the capacity to 3500 MW.
what will be the benefit
Capital infusion will create 10,200 jobs annually in this sector and reduce CO2 equivalent emissions by about 7.49 million tonnes per year.
The term of the National Commission for Safai Karamcharis extended
The cabinet approved the extension of the tenure of the National Commission for Safai Karamcharis for a further period of three years from 31.3.2022. The Union Minister said that for the welfare of Safai Karamcharis, the commission will now work till March 31, 2025. The term of the National Commission for Safai Karamcharis is ending on March 31 this year.
Cabinet’s big decision regarding interest on interest
The cabinet approved the scheme for ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. The government has approved a grant of Rs 1,000 crore to State Bank of India (SBI) in lieu of payment of interest on interest.
The Union Minister said, at the time of Corona epidemic, the loan burden on both business and individual borrowers had increased. In view of this, the government had given relief of moratorium to small borrowers on the repayment of loan for 6 months. Later, it was decided to provide relief amount equal to the difference between compound interest and simple interest so that there is no burden of compound interest during the moratorium period.
Therefore, a provision of Rs 5,500 crore was made in the budget for the year 2020-21 for payment to the lending institutions. MSME loans, education loans, housing loans, consumer durables loans, credit card dues, auto loans, personal loans, professional and consumption loans were covered under this scheme, which were not NPS. And whose outstanding amount was within the limit of Rs 2 crore.
SBI was given time till 30 November 2021 to settle their claims. Out of Rs 5500 crore allocated by SBI in the budget of the year 2020-21, Rs 4426 crore was paid. Apart from this, claims worth Rs 1846 crore have been received with SBI. An amount of Rs 973 crore 74 lakh has been approved for the payment of the remaining claim.