Cabinet okays extension of pension scheme by 3 years

Tribune News Service

New Delhi, May 20

The Union Cabinet today announced a three-year extension of an assured rate of return scheme for senior citizens, besides approving the government’s financial commitment in several elements of the Prime Minister’s Rs 20 lakh Covid-stimulus package.

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) for senior citizens has been extended to March 31, 2023, with an assurance of 7.40 per cent fixed rate of return for the current fiscal. Thereafter, the annual interest rate will be reset annually on April 1 with a ceiling of 7.75 per cent.

The minimum investment is Rs 1,56,658 for pension of Rs 12,000 per annum and Rs 1,62,162 for minimum pension amount of Rs 1,000 per month.

The Cabinet approved the government’s share of Rs 5 crore in a Rs 30,000 crore scheme for providing special credit via the RBI to stressed Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs).

It also decided to modify the cluster-based approach for micro-food processing enterprises by asking states to pay Rs 4,000 crore of the total outlay of Rs10,000 crore. A part of the “make local to go global” thrust, the government will promote clusters of local perishables with a market abroad such as turmeric from Telangana, saffron from Kashmir and makhana from Bihar.

The Cabinet also approved the government’s share of 20 per cent amounting to Rs 10,000 crore in a scheme that guarantees first loss for purchase of moderately rated commercial papers of NBFCs, MFCs and Micro Finance Institutions by public sector banks (PSBs).

Nod to free foodgrain for migrant workers

New Delhi: The Union Cabinet on Wednesday gave ex-post facto approval to allocation of foodgrain from the central pool to approximately 8 crore “migrants/stranded” in May and June under the “Atmanirbhar Bharat” package. Each person will get 5 kg of foodgrain for free. It will entail an estimated food subsidy of about Rs 2,982.27 crore. TNS