Union Cabinet Archives

Mumbai-Indore train journey to get shorter! Cabinet approves new…

2 September 2024
by admin

Mumbai to Indore train travel gets a boost! Your Indian Railways train journey between Mumbai and Indore is set to get shorter with the Cabinet approving a new railway line project. Prime Minister Narendra Modi-led Cabinet Committee on Economic Affairs on Monday approved a new project that will ensure “shortest rail connectivity between Mumbai and Indore”.
The new railway project will come up between Indore and Manmad at a total expenditure of Rs 18,036 crore.It will cover 6 districts in the two states of Maharashtra and Madhya Pradesh. The project will increase the existing Indian Railways network by 309 kilometres and will involve the construction of 30 new railway stations as well.
The new railway line project is expected to generate direct employment of around 102 lakh man-days during its construction.
The project, a result of the PM-Gati Shakti National Master Plan for multi-modal connectivity, has been made possible through integrated planning and will ensure seamless connectivity for the movement of people, goods, and services.
The new line will improve connectivity to the aspirational district of Barwani and providing access to around 1,000 villages and a population of about 30 lakh.
According to the government’s press release, the project will boost tourism in the region by offering a shorter route between the western and south-western parts of the country and central India, increasing tourist footfall to various tourist and religious sites in the Ujjain-Indore region, including the Sri Mahakaleshwar Jyotirlinga Temple.
Moreover, the project will directly connect the Pithampur Auto Cluster, which houses 90 large units and 700 small and medium industries, to the gateway port of JNPA and other state ports.
It will also provide direct connectivity to millet-producing districts in Madhya Pradesh and onion-producing districts in Maharashtra, facilitating the distribution of these commodities to northern and southern parts of the country.
The route is crucial for transporting various commodities, including agricultural products, fertilizer, containers, iron ore, steel, cement, and POL. The capacity augmentation work is expected to result in additional freight traffic of about 26 MTPA (Million Tonnes Per Annum).

Science & Environment

Explained | What Is Unified Pension Scheme? How Is…

24 August 2024
by admin

Unified Pension Scheme Vs NPS: The Union Cabinet on Saturday, August 24, approved the Unified Pension Scheme (UPS), for an assured pension post-retirement. The UPS will be implemented from April 1, 2025. The move comes after the long-pending demand of the central government employees to reform the new pension scheme (NPS).

Briefing the media on Cabinet decisions, Information & Broadcasting Minister Ashwini Vaishnaw said, “There have been demands from government employees to reform NPS (New Pension Scheme)… PM Narendra Modi formed a committee in April 2023 on this under T V Somanathan (who was then finance secretary)… After extensive consultations and discussions, including with the JCM (Joint Consultative Mechanism), the committee has recommended the Unified Pension Scheme. Today, the Union Cabinet has approved the scheme.”

What Is Unified Pension Scheme?

It is the latest pension scheme for government employees.

Under the UPS, there will be a provision of a fixed assured pension, unlike the New Pension Scheme (NPS) which does not promise a fixed pension amount.

The Unified Pension Scheme has five pillars:

Assured Pension: Under the UPS, the fixed pension will be 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period up to a minimum of 10 years of service.

Assured Family Pension: It will also have an assured family pension, which is 60 per cent of the employee’s basic pay. It will be given immediately in case of demise of the employee.

Assured Minimum Pension: In the case of superannuation after a minimum 10 years of service, the UPS has a provision of an assured minimum pension of Rs 10,000 per month.

Inflation Indexation: There is a provision of indexation benefit on assured pension, on assured family pension and assured minimum pension.

Gratuity: Lump-sum payment at superannuation in addition to gratuity. It will be 1/10th of the monthly emolument (pay + dearness allowance) as on the date of superannuation for every completed six months of service. This payment will not reduce the quantum of assured pension.

Who Can Join UPS?

“Central government employees will have a right to decide to stay in the New Pension Scheme (NPS) or join the Unified Pension Scheme (UPS),” said Vaishnaw.

During the media briefing on Saturday, Cabinet Secretary Designate T V Somanathan also said, “This will also apply to all those who have already retired under the NPS from 2004 onwards. Though the new scheme will take effect from April 1, 2025, everybody who has retired under NPS from the time of its inception and also including those retiring till March 31, 2025, will also be eligible for all these five benefits of the UPS. They will get arrears of the past after adjusting whatever they have withdrawn.”

What Is National Pension System or New Pension Scheme or NPS?

Introduced in January 2004, the National Pension Scheme (NPS) originally served as a government-sponsored retirement plan exclusively for government employees. Later, in 2009, it was expanded to encompass all other sectors.

The NPS is governed jointly by the government and the Pension Fund Regulatory and Development Authority (PFRDA) and is designed as a long-term, voluntary investment program tailored for retirement.

Also Read: Planning Your Retirement Savings? Learn About EPF, PPF, NPS, APY, and Other Key Schemes

The NPS assures a pension, with the potential for substantial investment gains.

Upon retirement, a subscriber has the option to withdraw a portion of their accumulated corpus, while the remaining amount is disbursed as a monthly income. This strategy provides a steady stream of income after retirement.

The NPS is divided into two tiers: Tier 1 accounts and Tier 2 accounts. Individuals who choose a Tier 1 account can withdraw cash only after they retire, but Tier 2 accounts allow for early withdrawals.

Under Section 80 CCD of the Income Tax Act, investing in the NPS provides tax advantages of up to Rs 1.5 lakh. Withdrawing 60 per cent of the NPS corpus makes it tax-free. This makes it an appealing option for retirement planning since it provides the possibility of a lump sum payoff.

How Is NPS Different from the Old Pension Scheme (OPS)

The NPS replaced the old pension scheme. The old pension scheme (OPS), referred to as the Defined Benefit Pension System (DBPS), was based on the last pay drawn by the employee. The NPS is referred as the Defined Contribution Pension System (DCPS), in which the employer and employee contribute to build a pension wealth payable at the time of retirement by way of annuity/lumpsum withdrawal as per norms.

The old pension scheme, referred to as the Defined Benefit Pension System (DBPS), is based on the last pay drawn by the employee. The NPS is referred as the Defined Contribution Pension System (DCPS), in which the employer and employee contribute to build a pension wealth payable at the time of retirement by way of annuity/lumpsum withdrawal as per norms.

Under the OPS, the employee could withdraw 50 per cent of the last-drawn salary as pension after the retirement.

Under the NPS, a person is allowed to withdraw 60 per cent of the accumulated corpus contributed during his/ her working years at the time of retirement, which is tax-free. The remaining 40 per cent is converted into an annuatised product, which could currently provide the person with a pension of 35 per cent of his/ her last-drawn pay.

The NPS is applicable to all employees joining services of the central government, including central autonomous bodies (except Armed Forces) on or after January 1, 2004. Many state governments have also adopted NPS architecture and implemented NPS mandatorily for their employees joining on or after a cut-off date.

(The article has been updated with additional details)

Science & Environment

Bengaluru, Pune Get New Metro Lines; Thane To Get…

16 August 2024
by admin

NEW DELHI: The Union Cabinet on Friday approved metro rail projects in Pune and Thane in assembly poll-bound Maharashtra, and in Karnartaka capital Bengaluru. The Cabinet, in a meeting chaired by Prime Minister Narendra Modi, has approved two corridors of the Bangalore Metro Rail Project Phase-3, according to Union minister Ashwini Vaishnaw.

In a statement, the government said the Cabinet has also approved the Swargate-to-Katraj Underground Line Extension of the existing PCMC-Swargate Metro Line of the Pune Metro Phase-I project. This new extension is known as the Line-1 B extension and will span 5.46 km. It will have three underground stations and connect key areas such as Market Yard, Bibwewadi, Balaji Nagar and the Katraj suburbs of Pune, the statement said.

“The project, aimed at providing seamless connectivity in Pune, is set to be completed by February 2029. The estimated cost of the project is Rs 2,954.53 crore, with funding to be equally shared by the Government of India and the Government of Maharashtra, along with contributions from bilateral agencies, etc,” it said.

The statement said the Union Cabinet also approved the Thane Integral Ring Metro Rail Project Corridor. The 29-km corridor will run along the periphery of the west side of Thane city with 22 stations. The network is encompassed by the Ulhas river on one side and the Sanjay Gandhi National Park on the other, it said.

This will provide sustainable and efficient mode of transport, facilitating the city to realise its economic potential and ease traffic congestion. The project is also expected to contribute to reduction of greenhouse gas emissions, the statement said. “The estimated cost of the project is Rs 12,200.10 crore, with equal equity from Government of India and Government of Maharashtra as well as part-funding from bilateral agencies,” it said.

“Funds would also be raised through innovative financing methods such as by selling station naming and access rights for corporate, monetisation of assets, and value capture financing route,” the statement said. The approval for the metro projects in Thane and Pune comes a few months ahead of the Maharashtra assembly elections, the poll dates for which are yet to be announced.

On the approval of two corridors of the Bangalore Metro Rail Project Phase-3, the government said the total completion cost of the project is Rs 15,611 crore. “The Union Cabinet, chaired by the Prime Minister Narendra Modi, today approved the Phase-3 of Bangalore Metro Rail Project with two elevated corridors for a length of 44.65 Km with 31 stations,” the statement said.

“Corridor-1 from JP Nagar 4thPhase to Kempapura (along Outer Ring Road West) for a length of 32.15 km with 22 stations and Corridor-2 from Hosahalli to Kadabagere (along Magadi Road) for a length of 12.50 km with 9 stations. On operationalisation of Phase-3, Bengaluru city will have 220.20 km of active metro rail Network,” statement said.

The Phase-3 of Bangalore Metro Rail Project represents a significant advancement in the city’s infrastructure development. The Phase-3 acts as a major expansion of the metro rail network in the city, it said. Phase-3 will add approximately 44.65 km of new metro lines, connecting the western part of Bengaluru that were previously underserved, it stated.

“Phase-3 will integrate key areas of the city which includes Peenya Industrial Area, IT industries on Bannerghatta road and Outer Ring Road, Textile and Engineering items Manufacturing units on Tumkuru Road and ORR, Bharat Electronics Limited (BEL), Major educational institutions like PES University, Ambedkar College, Polytechnic College, KLE College, Dayanandsagar University, ITI etc,” the statement said.

Improved last-mile connectivity to commercial centres, industrial hubs, educational institutions, and healthcare facilities will facilitate better access for residents, it also added.

Tag: <span>Union Cabinet</span>

Mumbai-Indore train journey to get shorter! Cabinet approves new…

Explained | What Is Unified Pension Scheme? How Is…

Bengaluru, Pune Get New Metro Lines; Thane To Get…