Daily News - Thursday, 29 August 2024

Indian cities run diseconomy risk: ISPP (mint)

Indian cities risk becoming "diseconomies" due to a growing gap between financial resources and the spending needs of municipalities, which could lead to declining quality of life and economic output, according to a report by ISPP and Dun & Bradstreet. While cities are crucial to India's goal of becoming a $30 trillion economy by 2047, rapid urban growth has significantly increased the demand for public services and infrastructure. The report emphasizes the need for holistic urban planning that prioritizes inclusive growth, sustainability, and social equity, with investments in infrastructure, affordable housing, education, and healthcare. 

CCEA clears 12 industrial parks across 10 states (The Hindu)

The Cabinet Committee on Economic Affairs approved a ₹28,602 crore outlay to establish 12 industrial parks across 10 states, aligned with the Union Budget's plan to develop greenfield "smart cities" along major industrial corridors. These parks are expected to attract investments of ₹1.5 lakh crore, potentially creating 1 million direct and 3 million indirect jobs, with completion targeted within three years. The initiative includes the first set of around 100 investment-ready "plug and play" industrial parks, developed in collaboration with states and the private sector, to enhance urban planning and industrial infrastructure. 

Cabinet clears ₹4,136 cr for hydro projects in North-East (Financial Express)

The Union Cabinet approved central financial assistance for northeastern states to participate in developing 15 gigawatts (GW) of hydroelectric projects through joint ventures between state entities and central public sector undertakings, with a scheme outlay of ₹4,136 crore from FY25 to FY32. This scheme, funded by 10% gross budgetary support from the Ministry of Power, caps state equity contributions at 24% per project and aims to make viable hydro projects by requiring states to waive or stagger free power and reimburse State GST. The initiative is expected to boost investment, create local employment, and contribute to India’s goal of 500 GW of renewable energy capacity by 2030 while enhancing grid flexibility and reliability. 

Modi: Jan Dhan to aid Viksit Bharat mission (Financial Express)

Prime Minister Narendra Modi highlighted the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY) on its 10th anniversary, noting that over 530 million bank accounts have been opened with deposits surpassing ₹2.3 lakh crore, helping to integrate the poor into the financial mainstream. The scheme has facilitated the direct transfer of nearly ₹39 lakh crore in benefits and has been pivotal in the effectiveness of other government initiatives like the MUDRA Yojana and various social security schemes. Finance Minister Nirmala Sitharaman emphasized the importance of the Jan Dhan-Mobile-Aadhaar (JAM) pipeline in ensuring transparent and efficient delivery of government benefits, with over 360 million RuPay cards issued and average account deposits increasing significantly. 

Agri-infra fund scope expanded (Financial Express)

The Union Cabinet has expanded the ₹1 lakh crore Agriculture Infrastructure Fund (AIF), originally launched in 2020, to enhance farm infrastructure by making it more attractive and inclusive, with disbursement extended until FY26. The revamped AIF will now support integrated primary-secondary processing projects and community farming assets, excluding standalone secondary projects, and will also allow convergence with the PM-KUSUM scheme for clean energy. Beneficiaries of AIF receive a 3% interest subvention on loans up to ₹2 crore, and since its inception, ₹47,575 crore has been sanctioned for 74,508 projects.