In Today’s News:
- PM Kusum mentioned by Hon’ble PM in the CERAWeek award meet.
- ECLGS scheme.
1. PM Kusum mentioned by Hon’ble PM in the CERAWeek award meet
Hon’ble PM Shri. Narendra Modi was awarded the CERAWeek Global Energy and Environment Leadership Award. In his keynote address, Hon’ble PM mentioned the recently launched National Hydrogen Mission and PM KUSUM which promotes an equitable and decentralized model of solar energy generation and also mentioned that behavioral change is the powerful way to tackle climate change.
Prelims GS – Governance
- Ministry of New and Renewable Energy (MNRE) has launched the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) Scheme for farmers for installation of solar pumps and grid-connected solar and other renewable power plants in the country.
- The scheme aims to add solar and other renewable capacities of 25,750 MW by 2022 with the total central financial support of Rs. 34,422 Crore including service charges to the implementing agencies.
- The proposed scheme consists of three components:
- Component-A: 10,000 MW of Decentralized Ground Mounted Grid Connected Renewable Power Plants.
- Component-B: Installation of 17.50 lakh standalone Solar Powered Agriculture Pumps.
- Component-C: Solarisation of 10 Lakh Grid-connected Solar Powered Agriculture Pumps.
- State Nodal Agencies (SNAs) of MNRE will coordinate with States/UTs, Discoms, and farmers for implementation of the scheme.
Click here to know more about PM Kusum on the govt. Vikaspedia website.
Mains GS2 – Governance
Significance of PM Kusum:
- The objective of providing financial and water security to farmers is ensured through the PM Kusum scheme.
- The Scheme will have a substantial environmental impact in terms of savings of CO2 emissions.
- All three components of the Scheme combined together are likely to result in a saving of about 27 million tonnes of CO2 emission per annum.
- Further, Component-B of the Scheme on standalone solar pumps may result in saving of 1.2 billion liters of diesel per annum and associated savings in the foreign exchange due to the reduction of import of crude oil.
- The scheme has direct employment potential.
- Besides increasing self-employment, the proposal is likely to generate employment opportunities equivalent to 6.31 lakh job years for skilled and unskilled workers.
Click here to view the PM Kusum scheme on the official PIB release.
2. ECLGS scheme
ECLGS scheme has helped in pushing the credit growth for small businesses and MSME, a news release stated.
Prelims GS – Economic Development
- ECLGS refers to Emergency Credit Line Guarantee Scheme.
- ECLGS was announced as part of the Aatma Nirbhar Bharat Package (ANBP) to provide fully guaranteed and collateral-free additional credit to MSMEs, business enterprises, individual loans for business purposes, and MUDRA borrowers, to the extent of 20 percent of their credit outstanding as on 29.2.2020.
- 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(GECL).
- 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 the availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by providing them 100 percent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.
- Borrowers with credit outstanding up to Rs. 50 crore as of 29.2.2020, and with an annual turnover of up to Rs. 250 crore are eligible under the Scheme.
- Interest rates under the Scheme are capped at 9.25 percent for Banks and FIs, and 14 percent for NBFCs.
- The tenor of loans provided under the Scheme is four years, including a moratorium of one year on principal repayment.
Click here to view more about ECLGS on the official PIB release.
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