21st May 2020 Current Affairs

21st MAY 2020 CURRENT AFFAIRS+PIB Summary

These are the 21st May 2020 current affairs. These current affairs are prepared from relevant sources like The Hindu, Indian Express, PIB, BusinessLine.

21st MAY 2020 CURRENT AFFAIRS+PIB Summary

21st May 2020 Current Affairs
21st May 2020 Current Affairs

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DAILY CURRENT AFFAIRS: 20th MAY 2020: THE HINDU + PIB

DAILY CURRENT AFFAIRS QUIZ: 19th MAY 2020: THE HINDU + PIB


COVID-19 RNA Extraction Kit | Agappe Chitra Magna

21st May 2020 Current Affairs

Source | Press Information Bureau


GS Paper III: Science and Technology – developments and their applications and effects in everyday life Achievements of Indians in science & technology; indigenization of technology and developing new technology.

Context: The commercial launch of COVID-19 RNA Extraction Kit known as the “Agappe Chitra Magna” has been organized by the SCTIMST in collaboration with Agappe Diagnostics Ltd.

COVID-19 RNA EXTRACTION KIT; 21st May 2020 Current Affairs


Read More: Chitra Magna | RNA extraction kit for COVID-19 Tests


What you need to know about “Agappe Chitra Magna”?

The RNA Extraction Kit, theAgappe Chitra Magna, has been developed by the Sree Chitra Tirunal Institute for Medical Sciences and Technology (SCTIMST) – Trivandrum, an Institute of National Importance of the Department of Science and Technology (DST) along with Agappe Diagnostics Ltd, which is an in-vitro diagnostics manufacturing company based in Cochin.

  • After this launch, the Chitra Magna, an innovative RNA extraction kit, will now be available in the market as Agappe Chitra Magna RNA Isolation Kit.
  • The kit has been independently validated at National Institute of Virology for Covid19 RNA isolation.
  • The country’s drug regulatory authority, Central Drugs Standard Control Organisation (CDSCO), has given approval for the commercialization of this kit.
  • The application of the kit can be seen in RNA extraction for RT-LAMP, RT-qPCR, RT-PCR and other isothermal and PCR based protocols for the detection of SARS-COV-2.

Also Read: Chitra GeneLAMP-N Test Kit for COVID-19


Working of the Kit

Agappe Chitra Magna RNA Isolation Kit, the innovative RNA Extraction kit, uses an innovative technology for isolating the RNA using magnetic nanoparticles to capture the RNA from the patient sample.

  • The magnetic nano-particle beads bind to the viral RNA and, when these bonded RNA are exposed to a magnetic field, it gives a highly purified and concentrated RNA.
  • This innovation enhances the chances of identification of positive cases owing to the fact that the sensitivity of the detection method is dependent on getting an adequate quantity of viral RNA.

How this innovation significant for India?

  • According to an estimation, there would be a requirement of about 8 lakh RNA extraction kits in India per month during the next six months.
  • Owing to this fact, Agappe Chitra Magna RNA Isolation Kit, which is priced around Rs. 150 per kit is expected to reduce the cost of testing and the also the dependence of the country on imported kits which cost around Rs 300.

Read More: Chitra Acrylosorb Secretion Solidification System


21st Dekho Apna Desh Webinar Series | Key Highlights

21st May 2020 Current Affairs

Source | Press Information Bureau


GS Paper I: Indian culture will cover the salient aspects of Art Forms, Literature and Architecture from ancient to modern times.

Context: The 21st Dekho Apna Desh Webinar Series was recently conducted by the Ministry of Toursim as part of its Dekho Apna Desh Scheme.

21st Dekho Apna Desh Webinar Series

The Dekho Apna Desh Webinar Series is presented with support of National e-Governance Division (NeGD) of Ministry of Electronics & Information Technology (MeitY).



Read More: 18th Webinar Series – Dekho Apna Desh


Key Highlights of 21st Dekho Apna Desh Webinar Series

The 21st edition of the Dekho Apna Desh webinar series showcased the Tradition, Culture and Tourism of Bhopal, the capital city of Madhya Pradesh more commonly known as ‘The Heart of Incredible India.’

TITLE: ‘Photowalking Bhopal : Tradition, Culture and Tourism’

  • A number of experiences were showcased by the presenters about Bhopal which include ‘Paan’ ‘ Sulemani Chai,’ the embroidery work on silk, the Jeeps and much more. .
  • Several historical places including the Minto Hall (architectural marvel in Bhopal constructed by NawabSultan Jahan Begum) were listed during the session.


Also Read: 16th Webinar Series of Dekho Apna Desh


Prelims Background Bites


What you need to know about Bhopal?

Bhopal, the Capital city of Madhya Pradesh which is also known as the City of Lakes with the two main Lakes – Upper Lake and Lower Lake – is famous for its Heritage sites, antique Jewellery, Fabric, Food and much more.

  • The city was the first in state and all of central India to organise an LGBTQ+ pride march, the Bhopal Pride March on 17 May 2017 (International Day Against Homophobia, Transphobia and Biphobia).
  • Van Vihar National Park is a national park in central India located in Bhopal.
  • It is the 16th largest city in India and 131st in the world.
  • Bhopal is home to the largest number of institutes of National Importance in India, namely
    1. Indian Institute of Science Education and Research (IISER), Bhopal.
    2. Maulana Azad National Institute of Technology (MANIT).
    3. School of Planning and Architecture (SPA), Bhopal
    4. AIIMS, Bhopal
    5. National Law Institute University (NLIU)
    6. Indian Institute of Forest Management (IIFM) and
    7. Indian Institute of Information Technology (IIIT)
  • Bhopal was selected as one of the first twenty Indian cities (the first phase) to be developed as a smart city under PM Narendra Modi’s flagship Smart Cities Mission.
  • Bhopal has also been rated as the cleanest capital city for three consecutive years, 2017, 2018 and 2019.


HISTORICAL BACKGROUND
  • Bhopal was founded in the 11th century by the Paramara king Bhoja, who ruled from his capital at Dhar.
  • In the early 18th century, Bhopal was a small village in the Gond kingdom. The modern Bhopal city was established by Dost Mohammad Khan (1672–1728), a Pashtun soldier in the Mughal army.
  • Bhopal as a city was founded in 1707 and was the capital of the former Bhopal State, a princely state of the British ruled by the Nawabs of Bhopal.
  • It became a princely state after signing a treaty with the British East India Company in 1818.
  • Qudsia Begum was the first of the four woman ruler of Bhopal (between 1819–1837), who was succeeded by her granddaughter, Shah Jehan. In 1901, Shah Jehan’s daughter Kaikhusrau Jahan became Begum, ruled until 1926, and was the last of the female line of succession.
  • Post-independence scenario depicts that Bhopal State was the second-largest Muslim-ruled princely state: the first being Hyderabad.
  • The Bhopal state was taken over by the Union Government of India on 1 June 1949.
CULTURAL BACKGROUND
  • Bhimbetka Caves are about 35 kilometres from Bhopal city. They have evidence of dwellings of pre-historic man during the Paleolithic era. Rock paintings in the caves are specimens of pre-historic settlements in India.
  • There are about 600 caves, but only 12 are open for visitors. They were discovered by Wakankar in 1957.
  • UNESCO declared Bhimbetka Caves as a World Heritage Site in 2003.

The Infamous Bhopal Disaster

In early December 1984, a Union Carbide India Limited pesticide plant in Bhopal leaked around 32 tons of toxic gases, including methyl isocyanate (MIC) gas which led to the worst industrial disaster in the world to date.

  • The official death toll was initially recorded as around 4,000.
  • A MP government report stated 3,787 deaths, while other estimates state the fatalities were significantly higher (16,000) from the accident and the medical complications caused by the accident in the weeks and years that followed.

Read More: 15th Webinar Series of Dekho Apna Desh


Other Attractions in Madhya Pradesh

Apart from Bhopal, the other important Tourist attractions in Madhya Pradesh are Sanchi, Vidisha, Khajuraho, Mandu, Bhimbetka, Indore, Ujjain, Gwalior, Chanderi and the national parks Kanha , Bandhavgarh , Panna and Pench


Partial Credit Guarantee Scheme | Govt eases norms

21st May 2020 Current Affairs

Source | The Economic Times


GS Paper III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Context: As part of the extension of the Partial Credit Guarantee Scheme, the Union Cabinet has approved the Sovereign portfolio guarantee of up to 20% of first loss for purchase of Bonds or Commercial Papers (CPs) with a rating of AA and below issued by NBFCs/ MFCs/Micro Finance Institutions (MFIs) by Public Sector Banks (PSBs).

  • These commercial papers also includes unrated paper with original/ initial maturity of up to one year.
Partial Credit Guarantee Scheme (PCGS)


Read More: NBFCs seeks RBI Permission to use Reserves


Background of Partial Credit Guarantee Scheme

  • The previously existing Partial Credit Guarantee Scheme was issued in December 2019.
  • It offered sovereign guarantee of up to 10% of first loss to PSBs for purchasing pooled assets worth rated BBB+ or above worth up to Rs. 1,00,000 crore, from financially sound NBFCs/ MFCs.
  • Following the COVID-19 outbreak along with lockdown of business activity, it became necessary to adopt additional measures to support NBFCs and HFCs.
    • On the liabilities side by providing a sovereign guarantee to cover purchase of Bonds/CPs issued by NBFCs/HFCs as well as MFIs which also play a critical role in extending credit to small borrowers;
    • On the assets side by modifying the existing PCGS to widen its coverage.

Key Highlights about new Partial Credit Guarantee Scheme

As part of the Rs 21 lakh crore special economic package amid the COVID-19 crisis, Finance Minister Nirmala Sitharaman last week announced Partial Credit Guarantee Scheme (PCGS) 2.0 worth Rs 45,000 crore for non banking financial companies (NBFCs) and micro finance institutions (MFIs).

  • As part of the recent modifications in PCGS, sovereign guarantee of up to 20% of first loss will be provided to state-owned banks for purchase of bonds or commercial papers of NBFCs, MFIs and housing finance companies (HFCs) having a credit rating of AA or below, including unrated paper with original maturity of up to one year.
  • The time period of the Scheme has also been extended by the Cabinet from June 30, 2020 to March 31, 2021 for purchase of pooled assets of the distressed entities.

Read More: Measures by RBI for Financial Stability



What are the key modifications?

ELIGIBILITY CRITERIA FOR NBFCs

  • The modified PCGS has made eligible the NBFCs/HFCs which are reported under Special Mention Account (SMA-1) category on technical reasons alone during the last one year period prior to 1st August 2018.
    • Earlier NBFCs/HFCs reported as SMA-1 or SMA-2 during this period were ineligible under the Scheme.

RELAXATION IN NET PROFIT CRITERIA

  • The net profit criteria has been relaxed to the extent that the concerned NBFC/HFC should now have made a profit in at least one of the financial years of FY2017-18, FY 2018-19 and 2019-20.
    • Earlier, the NBFC/HFC should have made a net profit in at least one of the financial years of FY 2017-18 and 2018-19.

RELAXATION IN THE CRITERIA REGARDING DATE OF ORIGINATION OF ASSETS

  • This relaxation in the criteria regarding date of origination of assets will include new assets originating up to at least six months prior to the date of initial pool rating.
    • Earlier, only assets originated up to 31st March 2019 were eligible under the Scheme.

Also Read: New Provisions for EPF Contributions amid COVID-19


Schedule of Implementation

For purchase of pooled assets, the window for this one-time partial credit guarantee offered by Gol will remain open till 31st March, 2021 and one of the following whichever is earlier.

  • For the period as specified under the Scheme for purchase of Bonds/CPs, or
  • Till such date by which Rs. 10,000 crore worth of guarantees, including both guarantees toward purchase of pooled assets and Bonds/ CPs, are provided by the Government.

What will be the possible Impact of the above measures?

  • While the RBI moratorium provides some relief on the assets side, it is on the liabilities side that the sector is likely to face increasing challenges.
  • The extension of the existing Scheme will address the liability side concerns.
  • In addition, modifications in the existing PCGS will enable wider coverage of the Scheme on the asset side also.
  • Since NBFCs, HFCs and MFIs play a crucial role in sustaining consumption demand as well as capital formation in small and medium segment, it is essential that they continue to get funding without disruption, and the extended PCGS is expected to systematically enable the same.


Also Read: New Workplace Guidelines amid COVID-19


PRELIMS Background Bites


What are Commercial Papers (CPs)?

Commercial paper, also called CP, is a short-term debt instrument issued by companies to raise funds generally for a time period up to one year. It is an unsecured money market instrument issued in the form of a promissory note. It was introduced in India for the first time in 1990.

  • Companies that enjoy high ratings from rating agencies often use CPs to diversify their sources of short-term borrowings.
  • They are typically issued by large banks or corporations to cover short-term receivables and meet short-term financial obligations, such as funding for a new project.
  • CPs have a minimum maturity of 7 days and a maximum of up to 1 year from the date of issue.
  • However, the maturity date of the instrument should typically not go beyond the date up to which the credit rating of the issuer is valid.
  • They can be issued in denominations of Rs 5 lakh or multiples thereof.
  • Since such instruments are not backed by collateral, only firms with high ratings from a recognized credit rating agency can sell such commercial papers at a reasonable price.
  • CPs are usually sold at a discount to their face value, and carry higher interest rates than bonds.

Also Read: COVID-19 Economic Stimulus Package | Fifth Portion


Scheme for formalisation of Micro Food Processing Enterprises (FME)

21st May 2020 Current Affairs

Source | Press Information Bureau


GS Paper II: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.

Context: Union Cabinet has given its approval for “Scheme for formalization of Micro Food Processing Enterprises (FME)”, a Centrally Sponsored Scheme for the unorganized sector.

Micro Food Processing Enterprises (FMEs); 21st May 2020 Current Affairs


Read More: COVID-19 Stimulus Package | 4th Portion announced


About Scheme for Formalisation of Micro Food Processing Enterprises (FME)

Key Objectives of the Scheme

  • To increase in access to finance by micro food processing units.
  • Further increase in revenues of target enterprises.
  • To ensure enhanced compliance with food quality and safety standards.
  • Strengthening capacities of support systems.
  • To ensure a transition from the unorganized sector to the formal sector.
  • Provide a special focus on women entrepreneurs and Aspirational districts.
  • To encourage Waste to Wealth activities.
  • To enlarge its focus on minor forest produce in Tribal Districts.

Read More: World Bank Assistance to India amid COVID-19


Salient Features of the Scheme

  • The Scheme has been launched on an all India basis with an overall outlay of Rs 10,000 crore.
  • Being a Centrally Sponsored Scheme, the expenditure would be shared by the GoI and the States in the ratio of 60:40.
  • As part of the Scheme, approximately 2,00,000 micro-enterprises are to be assisted with credit linked subsidy.
  • This Scheme will be implemented over a 5 year period from 2020-21 to 2024-25.
  • Further, the scheme will follow a cluster approach and will focus on the perishables.
  • Support to Individual Micro Units:
    • As part of the Scheme, the micro enterprises will get credit linked subsidy @ 35% of the eligible project cost with ceiling of Rs.10 lakh.
    • Further, the beneficiary contribution will be minimum 10% and the remaining balance from loan.
    • There will be facility for the on-site skill training & Handholding for DPR and technical upgradation.
  • Support to FPOs/SHGs/Cooperatives:
    • The Scheme provides seed capital to SHGs for loan to members for working capital and small tools.
    • It also ensures a grant for backward/ forward linkages, common infrastructure, packaging, marketing & branding.
    • Further, it provides the necessary Skill training & Handholding support.
    • There is also provision for the Credit linked capital subsidy.

Also Read: Agriculture Infrastructure Fund | COVID Relief Package



Implementation of the Scheme

  • The Scheme will be implemented on an All India Basis with back ended credit linked subsidy provided to 2,00,000 units.
  • As part of the implementation process, seed capital will be given to SHGs (@Rs. 4 lakh per SHGs) for loan to members for working capital and small tools.
  • Further, grant will be provided to FPOs for backward/forward linkages, common infrastructure, packaging, marketing & branding.

Administration of the Scheme

  • CENTRE: The Scheme would be monitored at Centre by an Inter-Ministerial Empowered Committee (IMEC) under the Chairmanship of Minister, FPI.
    • A National level portal would be set-up wherein the applicants/ individual enterprise could apply to participate in the Scheme.
    • All the scheme activities would be undertaken on the National portal.
  • STATE: A State/ UT Level Committee (SLC) chaired by the Chief Secretary will monitor and sanction/ recommend proposals for expansion of micro units and setting up of new units by the SHGs/ FPOs/ Cooperatives.
    • The States/ UTs will prepare Annual Action Plans covering various activities for implementation of the scheme, which will be approved by Government of India.
  • A third party evaluation and mid-term review mechanism would be built in the programme.

Also Read: New Law for Contract Farming | Economic Relief Pack


What is the significance of this Scheme for Micro Food Processing Enterprises (FMEs)?

  • With the help of this scheme, nearly 8 lakh micro- enterprises will benefit through access to information, better exposure and formalization.
  • Further, the credit linked subsidy support and hand-holding will be extended to 2,00,000 micro enterprises for expansion and upgradation. It will make them capable to formalize, grow and become competitive.
  • In terms of employment generation, the project is likely to generate 9 lakh skilled and semi-skilled jobs.
  • Scheme envisages a better integration with organized markets and will provide increased access to common services like sorting, grading, processing, packaging, storage etc.

What is the need of “Scheme for formalisation of Micro Food Processing Enterprises (FME)”?

There are approximately 25 lakh unregistered food processing enterprises which constitute 98% of the sector and are unorganized and informal. Nearly 66 % of these units are located in rural areas and about 80% of them are family-based enterprises.

Also, this sector faces a number of challenges which includes :

  • Inability to access credit
  • High cost of institutional credit
  • Lack of access to modern technology
  • Inability to integrate with the food supply chain
  • Compliance with the health &safety standards.

Hence, there is a need to strengthen this segment which will ultimately lead to reduction in wastage, creation of off-farm job opportunities and aid in achieving the overarching Government objective of doubling farmers’ income.


Read More: Major Stimulus Package for MSMEs amid COVID-19



Pradhan Mantri Vaya Vandana Yojana (PMVVY) | Government announced Extension

21st May 2020 Current Affairs

Source | Press Information Bureau


GS Paper II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context: In order to ensure the welfare of the Senior Citizens and to ensure their old age income security, Government of India approves the extension of Pradhan Mantri Vaya Vandana Yojana (PMVVY).

Pradhan Mantri Vaya Vandana Yojana; 21st May 2020 Current Affairs


Read More: Atmanirbhar Bharat Abhiyan | 20 lac cr Economic Relief


Key Highlights of the recent updates regarding Pradhan Mantri Vaya Vandana Yojana (PMVVY)

As per the government notification, following approvals has been given with respect to the Pradhan Mantri Vaya Vandana Yojana. Apart from following mentioned changes, all other terms and conditions of the scheme remains the same.

  • Pradhan Mantri Vaya Vandana Yojana (PMVVY) has been extended for another period of 3 years beyond 31st March 2020, up to 31st March, 2023.
  • Initially an assured rate of return of 7.40 % per annum for the year 2020-21 per annum has been allowed for the approval. However, it would have to be reset every year thereafter.
  • Approval has also been provided for the annual reset of assured rate of interest with effect from 1st April of financial year in line with revised rate of returns of Senior Citizens Saving Scheme (SCSS) upto a ceiling of 7.75% with fresh appraisal of the scheme on breach of this threshold at any point.

Also Read: PMAPY | Prime Minister Atal Pension Yojana


  • The difference between the market rate of return generated by LIC (net of expenses) and the guaranteed rate of return under the scheme are to be considered while looking up to the expenditures to be incurred.
  • Approval has also been provided for the Capping Management expenses at 0.5% p.a. of funds of the scheme for first year of scheme in respect of new policies issued and thereafter 0.3% p.a. for second year onwards for the next 9 years.
  • As part of the approval, the Finance Minister has been authorized to approve annual reset rate of return at the beginning of every financial year.
  • The minimum investment has also been revised to Rs.1,56,658 for pension of Rs.12,000/- per annum and Rs.1,62,162/- for getting a minimum pension amount of Rs.1000/- per month under the scheme.

Also Read: One Nation One Ration Card Plan



PRELIMS Background Bites


About Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is basically a Pension Scheme which was announced by the Government of India exclusively for the senior citizens aged 60 years and above which was available from 4th May, 2017 to 31st March, 2020.

Following the above discussed approval by the Government of India, the scheme is now extended up to 31st March, 2023 for a further period of three years beyond 31st March, 2020.

Benefits Under the Scheme
  • Initially the scheme will provide an assured rate of return of 7.40 % per annum for the year 2020-21 per annum and thereafter to be reset every year.
  • Pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner at the time of purchase.
  • The scheme is exempted from GST.
  • On survival of the pensioner to the end of the policy term of 10 years, purchase price along with final pension installment shall be payable.
  • Loan upto 75% of Purchase Price shall be allowed after 3 policy years (to meet the liquidity needs).
  • Loan interest shall be recovered from the pension installments and loan to be recovered from claim proceeds.
  • The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. On such premature exit, 98% of the Purchase Price shall be refunded.
  • On death of the pensioner during the policy term of 10 years, the Purchase Price shall be paid to the beneficiary.
  • The ceiling of maximum pension is for a family as a whole, the family will comprise of pensioner, his/her spouse and dependants.
  • The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidized by the Government of India and reimbursed to the Corporation.
Eligibility under the Scheme
  1. Minimum Entry Age: 60 years (completed)
  2. Maximum Entry Age: No limit
  3. Policy Term : 10 years
  4. Investment limit : Rs 15 lakh per senior citizen
  5. Minimum Pension: Rs. 1,000/- per month
    • Rs. 3,000/- per quarter
    • Rs.6,000/- per half-year
    • Rs.12,000/- per year.
  6. Maximum Pension: Rs. 12,000/- per month
    • Rs. 30,000/- per quarter
    • Rs. 60,000/- per half-year
    • Rs. 1,20,000/- per year


Also Read: Bank of Schemes Ideas Innovation and Research


Pradhan Mantri Matsya Sampada Yojana (PMMSY)

21st May 2020 Current Affairs

Source | Press Information Bureau


GS Paper II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context: Union Cabinet has given its approval for implementation of the Pradhan Mantri Matsya Sampada Yojana (PMMSY) – a scheme to bring about Blue Revolution through sustainable and responsible development of fisheries sector in India.

Pradhan mantri matsya Sampada Yojana; 21st May 2020 Current Affairs


Read More: ATAL BHUJAL YOJANA


Key Details about the Pradhan Mantri Matsya Sampada Yojana (PMMSY)

  • Pradhan Mantri Matsya Sampada Yojana (PMMSY) has been launched with an aim to bring about Blue Revolution through Sustainable Development of fisheries sector in India.
  • The Scheme is to be implemented as an umbrella scheme with two separate Components namely Central Sector Scheme (CS) and Centrally Sponsored Scheme (CSS).
  • The scheme has been launched at a total estimated investment of Rs. 20,050 crore comprising of
    1. Central share of Rs. 9,407 crore
    2. State share of Rs. 4,880 crore
    3. Beneficiaries’ share of Rs. 5,763 crore.
  • The Scheme will be implemented during a period of 5 years from FY 2020-21 to FY 2024-25.
  • The Centrally Sponsored Scheme (CSS) Component is further segregated into Non-beneficiary oriented and Beneficiary orientated sub-­components/activities under the following three broad heads:
    1. Enhancement of Production and Productivity
    2. Infrastructure and Post-Harvest Management
    3. Fisheries Management and Regulatory Framework

Funding Pattern of the Scheme

Following funding pattern will be followed while implementing the PM Matsya Sampada Yojana (PMMSY):

Central Sector Scheme (CS)

  • The entire project/unit cost will be borne by the Central government (i.e. 100% central funding).
  • Wherever direct beneficiary oriented i.e. individual/group activities are undertaken by the entities of central government including National Fisheries Development Board (NFDB), the central assistance will be up to 40% of the unit/project cost for General category and 60% for SC/ST/Women category.

Also Read: BLUE REVOLUTION


Centrally Sponsored Scheme (CSS)

  • For the Non-beneficiary orientated sub-components/activities under CSS component to be implemented by the States/UTs, the entire project/unit cost will be shared between Centre and State as detailed below:
    1. North Eastern & Himalayan States: 90% Central share and 10% State share.
    2. Other States: 60% Central share and 40% State share.
    3. Union Territories (with legislature and without legislature): 100% Central share.
  • For the Beneficiary orientated i.e. individual/group activities sub­components/activities under CSS component to be implemented by the States/UTs, the Government financial assistance of both Centre and State/UTs governments together will be limited to 40% of the project/unit cost for General category and 60% of the project/unit cost for SC/ST/Women. The Government financial assistance will in turn be shared between Centre and State/UTs in the following ratio:
    1. The North Eastern & the Himalayan States: 90% Central share and 10% State share.
    2. Other States: 60% Central share and 40% State share.
    3. Union Territories (with legislature and without legislature): 100% Central share (No UT Share).


Read More: SCIENCE AND APPLIED RESEARCH ALLIANCE AND SUPPORT


What are the benefits associated with the Pradhan Mantri Matsya Sampada Scheme?

  • The Scheme would address the critical gaps in the fisheries sector and realize its potential.
  • The PMMSY is a right step towards augmenting fish production and productivity at a sustained average annual growth rate of about 9% to achieve a target of 22 million metric tons by 2024-25 through sustainable and responsible fishing practices.
  • It would help in improving availability of certified quality fish seed and feed, traceability in fish and including effective aquatic health management.
  • It will help in creation of critical infrastructure including modernisation and strengthening of value chain.
  • Further, PMMSY would be effective in creation of direct gainful employment opportunities to about 15 lakh fishers, fish farmers, fish workers, fish vendors and other rural/urban populations in fishing and allied activities and about thrice this number as indirect employment opportunities including enhancement of their incomes.
  • It will provide a boost to investments in fisheries sector and increase of competitiveness of fish and fisheries products.
  • It will help in doubling of fishers, fish farmers and fish workers incomes by 2024.

Read More: SOIL HEALTH CARD SCHEME


PRELIMS Background Bites


Fisheries Sector in India

  • With its vast coastline, India is the fourth-largest producer of fish in the world.
  • This is mainly because nearly 10 million people residing in more than 4,000 coastal regions are engaged in fishery activity.
  • These people are mainly dependent on fisheries to earn a living.
  • The Department of Animal Husbandry, Dairying, and Fisheries is the main authoritative body for development of the fisheries industry in India.
  • This government body has been responsible for implementing infrastructure development programs and welfare-oriented schemes.
  • It is also responsible for formulating appropriate programs to increase the productivity in the fisheries sector. 


Emergency Credit Line Guarantee Scheme (ECLGS)

21st May 2020 Current Affairs

Source | Press Information Bureau


GS Paper II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context: The Union Cabinet has given its approval for the Emergency Credit Line Guarantee Scheme (ECLGS) to enable additional funding of up to Rs. 3 lakh crore to eligible MSMEs.

Emergency Credit Line Guarantee Scheme; 21st May 2020 Current Affairs

Read More: Major Stimulus Package for MSMEs amid COVID-19



Key Highlights of the Emergency Credit Line Guarantee Scheme (ECLGS)

The Emergency Credit Line Guarantee Scheme (ECLGS) has been formulated as a specific response to the unprecedented situation caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector.

AIM

The Scheme aims at mitigating the economic distress being faced by MSMEs by providing them additional funding of up to Rs. 3 lakh crore in the form of a fully guaranteed emergency credit line.

OBJECTIVES

The main objective of the Scheme is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and Non-Banking Financial Companies (NBFCs) to increase access to, and enable availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis.

This is planned to be done by providing them 100 % guarantee for any losses suffered by them due to non-repayment of the Guaranteed Emergency Credit Line (GECL) funding by borrowers.


Also Read: CHAMPIONS Portal for MSMEs



Salient Features of the Scheme

  • Emergency Credit Line Guarantee Scheme (ECLGS) has been launched by the Union Cabinet in order to enable additional funding of up to Rs. 3 lakh crore to the eligible MSMEs and interested MUDRA borrowers.
  • As part of the Scheme, 100% guarantee coverage will be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs.3 lakh crore to eligible MSMEs and interested MUDRA borrowers, in the form of a Guaranteed Emergency Credit Line (GECL) facility.
  • For this purpose, corpus of Rs. 41,600 crore shall be provided by Government of India spread over the current and the next three financial years.

Some Details about the Eligibility under the Scheme and Funding Mechanism

All the MSME borrower accounts with outstanding credit of up to Rs. 25 crore as on 29th February 2020, which were less than or equal to 60 days past due as on that date, (i.e., regular, SMA 0 and SMA 1 accounts), and those with an annual turnover of up to Rs. 100 crore would be eligible for GECL funding under the Scheme.

  • The amount of GECL funding to eligible MSME borrowers either in the form of additional working capital term loans (in case of banks and FIs), or additional term loans (in case of NBFCs) would be up to 20% of their entire outstanding credit up to Rs. 25 crore as on 29th February, 2020.
  • The entire funding provided under GECL shall be provided with a 100% credit guarantee by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) under Scheme.
  • Tenor of loan under Scheme shall be 4 years with moratorium period of one year on the principal amount.
  • No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
  • Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.
  • Scheme would be applicable to all loans sanctioned under Guaranteed Emergency Credit Line (GECL) facility during the period from the date of announcement of the Scheme to 31st October 2020, or till an amount of Rs 3,00,000 crore is sanctioned under the GECL, whichever is earlier.

Read More: COVID-19 Stimulus Package | 4th Portion announced


How this Emergency Credit Line Guarantee Scheme would be helpful for MSMEs?

Keeping in mind the critical role played by the MSME sector in the economy and also in providing employment, the proposed Scheme is expected to provide much needed relief to the sector by incentivizing MLIs to provide additional credit of up to Rs.3 lakh crore to the sector at low cost.

  • This will enable MSMEs to meet their operational liabilities and restart their businesses.
  • By supporting MSMEs to continue functioning during the current unprecedented situation, the Scheme is also expected to have a positive impact on the economy and support its revival.


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