Recapitalising Rural Banks
Support for Regional Rural Banks has been increased from Rs 350 crore to Rs 500 crore in 2011-12, to enable them maintain a CRAR of at least 9 per cent as on March 31, 2012.
New equity fund for small MFIs
The Budget proposes to create a dedicated equity fund of Rs 100 crore with the Small Industries Development Bank of India for providing equity to smaller microfinance institutions, to help them maintain growth and achieve scale and efficiency in operations.
Reducing edible oil imports
Rs 300 crore has been allocated for bringing 60,000 hectares under oil palm plantations, by integrating farmers with markets.
Increasing vegetable production
Rs 300 crore has been allocated for implementation of a vegetable production initiative to set in motion a virtuous cycle of higher production and incomes for farmers. To begin with, the programme will be launched near major urban centres.
Push for nutri-cereal production
Rs 300 crore has been allocated to promote higher production of nutri-cereals, upgrade processing technologies and create awareness of their health benefits. This initiative will provide market-linked production support to a million millet farmers in 25,000 villages in arid and semi-arid regions.
Boost for rural infrastructure
The corpus of the Rural Infrastructure Development Fund (RIDF) — an important instrument for routing bank funds for financing rural infrastructure — is to be increased to Rs 18,000 crore in 2011-12 from Rs 16,000 crore in the current year.
More funds for micro and small units
The Budget proposes to increase the allocation for Sidbi from Rs 4,000 crore to Rs 5,000 crore, for refinancing incremental lending by banks to micro and small enterprises.
Relief for indebted handloom weavers
Handloom weavers have been facing economic stress and as a result, many have not been able to repay debts to handloom weaver cooperative societies. The budget has proposed to provide Rs 3,000 crore to Nabard. The initiative would benefit 15,000 cooperative societies and about 300,000 handloom weavers.
Target for PSU loans to minorities
Loans to minority communities, which stood at 13 per cent of total priority sector lending at the end of last year, have increased to 13.6 per cent in the current year. The budget has directed public sector banks to achieve the target of 15 per cent at the earliest.
Boost for rural housing
The provision for the Rural Housing Fund has been enhanced from Rs 2,000 crore to Rs 3000 crore in 2011-12, to provide housing finance to targeted groups in rural areas at competitive rates.
Credit to the weaker sections
A Mortgage Risk Guarantee Fund will be created under the Rajiv Awas Yojana to ensure credit enablement of economically weaker sections (EWS) and low income group (LIG) households. This would guarantee housing loans taken by EWS and LIG households and enhance their creditworthiness.
Preventing loan fraud
To prevent frauds in loan cases involving multiple lending from different banks on the same immovable property, the government is setting up a Central Electronic Registry under the SARFAESI Act, 2002. This Registry will become operational by March 31.
Bringing green revolution in the east
Rs 400 crore has been allocated to bring in a green revolution in the East. The programme will target improvement in the rice-based cropping system of Assam, West Bengal, Orissa, Bihar, Jharkhand, eastern Uttar Pradesh and Chhattisgarh.
Focus on controlling narcotics
A comprehensive national policy on narcotic drugs and psychotropic substances will be announced in the near future.
Funds for self-sufficiency in pulses
Rs 300 crore has been allocated for promoting output of pulses in 60,000 villages in rainfed areas, for increasing crop productivity and strengthening market linkages. The aim is to attain self-sufficiency in pulses within three years.
Funds for judicial infrastructure
The Plan provision for the Department of Justice for 2011-12 has been increased three-fold to Rs 1,000 crore. The enhanced provision will help in building judicial infrastructure and the E-courts project.
New mission for livestock
A National Mission for Protein Supplements will be launched with an allocation of Rs 300 crore. It will take up activities to promote animal-based protein production through livestock development, dairy farming, piggery, goat rearing and fisheries in selected blocks.
Fodder for milk production
Rs 300 crore has been allocated to the Accelerated Fodder Development Programme, which will benefit farmers in 25,000 villages and is essential for sustained milk production.
More mega food parks
Approval has been given to set up 15 more mega food parks in 2011-12, apart from the 15 which had been sanctioned earlier, to reduce wastage in fruit and vegetables due to lack of storage.
Incentives for creating storage facilities
To attract investment in creation of cold storage facilities, capital investment in the creation of modern storage capacity will be eligible for the viability gap funding scheme of the Finance Ministry. It is also proposed to recognise cold chains and post-harvest storage as an infrastructure sub-sector.
Public-private partnership policy
A comprehensive policy that can be used by the Centre and the State Governments in further developing public-private partnerships will be drawn up. This is based on the fact that experience with the public-private partnership (PPP) model for creation of public sector assets in the country has been good.
Auto goes green
To provide green and clean transportation for the masses, a National Mission for Hybrid and Electric Vehicles will be launched in collaboration with all stakeholders.
Mega cluster for leather products
A Mega Cluster Scheme for development of leather products has been proposed, which would also include Jodhpur for handicrafts. Seven mega leather clusters would be set up during the year 2011-12.
Sops for Ladakh and Jammu regions
Rs 100 crore has been allocated to Ladakh and Rs 150 crore for Jammu for identified projects in 2011-12. A task force will assess infrastructure needs of the regions, to be addressed within 24 months.
Anganwadi workers’ salaries doubled
Remuneration to Anganwadi workers and Anganwadi helpers, who are the backbone of the Integrated Child Development Services Scheme, will be raised from Rs 1,500 per month to Rs 3,000 per month and from Rs 750 per month to Rs 1,500 per month, for workers and helpers respectively.
Grants to academia
Grants have been announced to various universities, which include Aligarh Muslim University; Kerala Veterinary and Animal Sciences University at Pookode, Kerala; and the Kolkata and Allahabad centres of Mahatma Gandhi Antarrashtriya Hindi Vishwavidyalaya, Wardha. There are one-time grants to IIT, Kharagpur; Rajiv Gandhi National Institute of Youth Development, Sriperumbudur; and IIM, Kolkata; Maulana Azad Education Foundation; Centre for Development Economics and Ratan Tata Library, Delhi School of Economics, Delhi; and Madras School of Economics.
More money for skill fund
An additional Rs 500 crore has been allocated to the National Skill Development Fund. The National Skill Development Council (NSDC) is well on course to achieving its mandate of creation of a 150 million-strong skilled workforce two years ahead of 2022.
Award in memory of Tagore
An international award with prize money of Rs 1 crore is being instituted for promoting the values of universal brotherhood in the memory of Rabindranath
Tagore, as the country celebrates his 150th birth anniversary on May 7, 2011.
Insurance for unorganised sectors
The Rashtriya Swasthya Bima Yojana has been extended to cover unorganised sector workers in hazardous mining and associated industries like slate and slate pencil, dolomite, mica and asbestos.
Pension scheme more attractive
The exit age of the contributory pension scheme “Swavalamban” has been relaxed to 50 years from 60 years in the Budget. The benefit of government contribution has been extended from three years to five years for all subscribers of Swavalamban who enroll during 2010-11 and 2011-12.
Eligibility age for pension reduced
Under the ongoing Indira Gandhi National Old Age Pension Scheme for below the poverty line (BPL) beneficiaries, the eligibility for pension is to be reduced from 65 years to 60 years. Further, for those who are 80 years and above, the pension amount is being raised from Rs 200 at present to Rs 500 per month.
Operation Green
There will be an allocation of Rs 200 crore for the National Clean Energy Fund to begin its implementation in 2011-12. A similar amount will also be allocated for the clean-up of some important lakes and rivers other than the Ganga.
