PIB Summary- 28th April, 2022 | PIB (Press Information Bureau) Summary - UPSC PDF Download

Nutrient Based Subsidy (NBS)

Why in News?
The Union Cabinet chaired by the Prime Minister has approved the proposal of the Department of Fertilizers for Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for Kharif Season – 2022

About Nutrient-Based Subsidy Regime

• Under the Nutrient-based subsidy (NBS) regime – fertilizers are provided to the farmers at the subsidized rates based on the nutrients (N, P, K & S) contained in these fertilizers.
• Also, the fertilizers which are fortified with secondary and micronutrients such as molybdenum (Mo) and zinc are given additional subsidy.
• Under the Nutrient-based subsidy (NBS) regime, the subsidy on Phosphatic and Potassic (P&K) fertilizers is announced by the Government on an annual basis for each nutrient on a per kg basis – which are determined taking into account the international and domestic prices of P&K fertilizers, exchange rate, inventory level in the country etc.
• NBS policy intends to increase the consumption of P&K fertilizers so that optimum balance (N:P:K= 4:2:1 ) of NPK fertilization is achieved.
• This would improve soil health and as a result the yield from the crops would increase resulting in enhanced income to the farmers.
• Also, as the government expects rational use of fertilizers, this would also ease off the burden of fertilizer subsidy.
• It is being implemented from April 2010 by the Department of Fertilizers, Ministry of Chemicals & Fertilizers.
  

Issues Related to NBS

• Urea is left-out in the scheme and hence it remains under price control as NBS has been implemented only in other fertilizers.
• There is an imbalance as the price of fertilizers (other than urea) — which were decontrolled have gone up from 2.5 to four times during the 2010-2020 decade. However, since 2010, the price of urea has increased only by 11%. This has led to farmers using more urea than before, which has further worsened fertilizer imbalance.
• Considering that fertilizer subsidy is the second-biggest subsidy after food subsidy, the NBS policy is not only damaging the fiscal health of the economy but also proving detrimental to the soil health of the country.
• Subsidised urea is getting diverted to bulk buyers/traders or even non-agricultural users such as plywood and animal feed makers. It is being smuggled to neighbouring countries like Bangladesh and Nepal.

India Post Payments Bank

Why in News?
Cabinet approved a revised cost estimate on “Setting up of India Post Payments Bank”.

About India Post Payments Bank (IPPB)

• The India Post Payments Bank is a public sector payments bank from India operated by the India Post.
• The India Post Payment Bank (IPPB) was setup under the Department of Post, Ministry of Communication with 100% equity Owned by Government of India.
• The India Post Payments Bank (IPPB) will be like any other banks but its operations will be on a smaller scale without involving any credit risk.
• It will carry out most banking operations like accepting deposits but won’t advance loans or issue credit cards.
• Motto: “Every customer is important, every transaction is significant and every deposit is valuable”.
• Vision: “Building the most accessible, affordable and trusted bank for the common man”.
• Mission: “Spearheading financial inclusion by removing barriers and reducing costs for accessing banking services”.
• The IPPB has been integrated with Post Office Savings Bank (POSB).
• The IPPB is the sixth Payments bank, which has become operational after Aditya Birla, Airtel, Fino, Jio and Paytm Payments Banks.
• The freshly-minted payments bank will accept deposits of up to Rs. 1 lakh, offer remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third-party fund transfers.
• The Payments bank are licensed under Section 23 of the Banking Regulation Act 1949, and registered as public limited company under the Companies Act, 2013.

PM SVANidhi

Why in News?
The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Shri Narendra Modi, today has approved the continuation of lending under the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) beyond March 2022 till December 2024, with focus on enhanced collateral free affordable loan corpus, increased adoption of digital transactions and holistic socio-economic development of the Street Vendors and their families. 

PM Street Vendor’s Atmanitbhar Nidhi (PM SVANidhi)

• PM SVANidhi is a Special Micro-Credit Facility.
• PM SVANidhi was launched by the Ministry of Housing and Urban Affairs for providing affordable Working Capital loan to street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdown.
• Under the Scheme, the vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year.
• The scheme promotes digital transactions through cash back incentives.
• Beneficiaries: 50 lakh Street Vendors.

The eligible vendors are identified as per following criteria:

• Street vendors in possession of Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBs);
• The vendors, who have been identified in the survey but have not been issued Certificate of Vending / Identity Card;
• Street Vendors, left out of the ULB led identification survey or who have started vending after completion of the survey and have been issued Letter of Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC); and
• The vendors of surrounding development/ peri-urban / rural areas vending in the geographical limits of the ULBs and have been issued Letter of Recommendation (LoR) to that effect by the ULB / TVC.

PM SVANidhi and SIDBI

• Small Industries Development Bank of India (SIDBI) is the Implementation Agency for PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)
• SIDBI will also manage the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
• SIDBI will leverage the network of lending Institutions like Non-Bank Finance Companies (NBFCs), Co-operative Banks etc., for the Scheme implementation.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

• The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises.
• Beneficiaries: New and existing Micro and Small Enterprises engaged in manufacturing or service activity excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions etc., are eligible.
• Fund and non-fund based (Letters of Credit, Bank Guarantee etc.) credit facilities up to Rs 200 lakh per eligible borrower are covered under the guarantee scheme provided they are extended on the project viability without collateral security or third-party guarantee.

Indian Mission in Lithuania

Why in News?
The Union Cabinet chaired by the Prime Minister has accorded approval to the opening of a new Indian Mission in Lithuania in 2022.

Key Points:

• Opening of Indian Mission in Lithuania will help expand India’s diplomatic footprint, deepen political relations and strategic cooperation, enable growth of bilateral trade, investment and economic engagements, facilitate stronger people-to-people contacts, allow for more sustained political outreach in multilateral fora and help garner support for India’s foreign policy objectives.
• Indian Mission in Lithuania will also better assist the Indian community and protect their interests.
• The decision to open a new Indian Mission in Lithuania is a forward-looking step in pursuit of our national priority of growth and development or ‘Sabka Saath Sabka Vikas’.
• Enhancement of India’s diplomatic presence will, inter-alia, provide market access for Indian companies and bolster Indian exports of goods and services.
• This would have a direct impact in augmenting domestic production and employment in line with our goal of a self-reliant India or ‘Atmanirbhar Bharat’.