The Union Cabinet granted approval for various key decisions on Thursday, including the signing and ratification of a bilateral investment treaty between India and the UAE, as well as the extension of the Animal Husbandry Infrastructure Development Fund (AHIDF).
The bilateral treaty with the UAE is anticipated to boost investor confidence, particularly among major investors, attracting increased foreign investments and opportunities for overseas direct investment (ODI). This move is poised to positively impact employment generation and contribute to the realization of the ‘Atmanirbhar Bharat’ initiative by promoting domestic manufacturing, reducing import dependence, and boosting exports.
Regarding the extension of the AHIDF, the Cabinet approved its continuation under the Infrastructure Development Fund (IDF) with a financial allocation of Rs.29,610.25 crore for an additional three years until 2025-26. This scheme aims to incentivize investments in various sectors, including dairy processing, meat processing, animal feed plants, breed multiplication farms, agri-waste management, and veterinary vaccine and drug production facilities.
Under the extended scheme, the government will offer a 3% interest subvention for eight years, including a two-year moratorium, for loans up to 90% from scheduled banks, the National Cooperative Development Corporation (NCDC), NABARD, and NDDB. Eligible entities, including individuals, private companies, FPOs, MSMEs, and Section 8 companies, will benefit from these provisions, with dairy cooperatives now eligible for support in modernizing and strengthening dairy plants.
The Cabinet also granted approval for determining the Marketing Margin on the supply of domestic gas to fertilizer (urea) units, covering the period from May 1, 2009, to November 17, 2015. This decision aims to provide additional capital to various urea units, based on rates already paid from November 18, 2015 onwards. It is anticipated to encourage increased investment, foster self-sufficiency in fertilizers, and provide certainty for future investments in the gas infrastructure sector.
Additionally, the Union Cabinet extended the scheme of sugar subsidy for Antyodya Anna Yojna (AAY) families distributed through the Public Distribution Scheme (PDS) for an additional two years until March 31, 2026. Furthermore, the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for the export of apparel/garments and made-ups was approved for continuation until March 31, 2026.