Friday, March 11, 2011

Finance Minister Announces Increase in Allocation under MPLAD Scheme from Rs.2 Crore to Rs.5 Crore Per Member

FM Extends Existing Interest Subvention Scheme of Providing Short Term Loans to farmers at 7% Interest with Additional Interest Subvention for timely Repayment to fish farmers and Fishermen as well
 
Capital Investment in Educational Institutions and Hospitals to be Eligible for Viability gap Funding Scheme
 
“Women’s SHGs Development Fund” to Operate through NABARD and will be Exclusively utilized for Providing Refinance on Loans given to Women’s SHGs on Soft Terms
 
 
The Union Finance Minister Shri Pranab Mukherjee announced, in Lok Sabha today, an increase in the allocation under the MPLAD Scheme from Rs.2 crore to Rs.5 crore per Member. This will result in additional allocation of Rs.2,370 crore per year. Members cutting across party lines from both Houses have been demanding increase in the allocation under the MPLAD Scheme.
 
Announcing the increase Shri Mukherjee said that C&AG Report on implementation of MPLAD Scheme has just been received and will be laid on the table of House shortly. Concerns expressed therein will be addressed while formulating the guidelines for enhanced allocation, said the Finance Minister.  As the States of Assam, Kerala, Tamil Nadu, West Bengal and UT of Puducherry are going for elections to their State Legislative Assemblies, MPs from these States and UT will not be able to utilize the enhanced allocation or make commitments against this enhanced allocation till the entire election process is over, added the Finance Minister.
 
Highlighting UPA Government’s sensitivity to the problems being faced by the fishermen, the Finance Minister Shri Mukherjee announced that, to meet their credit needs, the extension of the existing Interest Subvention Scheme of providing short term loans to farmers at 7% interest with additional interest subvention for timely repayment to fish farmers and fishermen as well. This would benefit over 20 lakh fish farmers and fishermen engaged in fishing operations in the country. Details of the Scheme would be announced separately.
 
Emphasizing that Investment in Education and Health sectors has a high priority in government’s policy framework, the Union Finance Minister Shri Pranab Mukherjee announced that henceforth capital stock in educational institutions and hospitals will be treated as infrastructure sub-sectors. Accordingly, capital investment for these sub-sectors will be eligible for the Viability Gap Funding Scheme of the Ministry of Finance. Detailed guidelines in this regard will be announced shortly.
 
The Finance Minister Shri Mukherjee also announced that, “Women’s SHGs Development Fund” proposed in the Budget with a corpus of Rs.500 crore will operate through NABARD and will be exclusively utilized for providing refinance on loans given to women’s SHGs on soft terms.
 
Shri Mukherjee stated that several suggestions and representations received on General Budget including valuable feedback from Parliament Members on taxation proposals are under examination. The Minister will respond to these issues in his reply to the discussion on the Finance Bill, 2011 later during this session.

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