The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval for signing the Agreement on Social Security between the Republic of India and the Federative Republic of Brazil.

Background India has been entering into bilateral Social Security Agreements (SSAs) with other countries in order to protect the interests of Indian professionals / skilled workers working abroad for short durations and enhance the competitiveness of Indian companies.

SSAs broadly provide the following three benefits: Avoiding making of double social security contributions by the workers (detachment);

Easy remittance of benefits (Exportability); Aggregating the contribution periods (in two countries) to prevent loss of benefits (Totalization). The agreement will also provide for disability insurance benefits to the Indian nationals working abroad. As on date, India has signed SSAs with 18 countries.

The idea to ink pacts on social security programmes with BRICS nations was discussed at the meetings of the BRICS Labour& Employment Ministers held on 9 June 2016 in Geneva and on 27-28 September 2016 in New Delhi, respectively. The possibility of concluding social security agreements between BRICS countries also finds mention in the Goa Declaration of the 8th BRICS Leaders’ Summit. Taking forward the spirit of the Goa Declaration, India and Brazil held the negotiations on SSA from 13-16 March 2017 in Brasilia. At the end of the negotiations, both sides initialled the finalized text of the Agreement on Social Security.

The signed agreement will be hosted on the Ministry’s website and the website of Employee’s Provident Fund Organisation for the information of the stakeholders so that they can secure certificates of coverage to avoid making double social security contributions.

At present, about 1,000 Brazilians are living in India, while about 4,700 Indians are living in Brazil. All posted/detached workers and self-employed persons will benefit from this proposal without any discrimination. Thus, it would promote equity and inclusiveness. Export of Social Security benefits of Indian workers after their relocation from Brazil is an innovative arrangement to ensure that there is no loss of social security benefits and also adds to the competitiveness of Indian companies by reducing their overall costs.

The SSA will cover the territories of the Republic of India and the Federative Republic of Brazil.

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today approved the proposal to make amendments in the Insolvency and Bankruptcy Code, 2016 (code), through the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019. The amendments aim to remove certain difficulties being faced during insolvency resolution process to realise the objects of the code and to further ease doing of business.

Details of the Proposal The Amendment Bill seeks to amend sections 5(12), 5(15), 7, 11, 14, 16(1), 21(2), 23(1), 29A, 227, 239, 240 and insert new section 32A in the Insolvency and Bankruptcy Code, 2016 (Code).

Impact Amendments to the Code to remove bottlenecks, streamline the CIRP and protection of last mile funding will boost investment in financially distressed sectors.

Additional thresholds introduced for Financial Creditors represented by an authorized representative due to large numbers in order to prevent frivolous triggering of Corporate Insolvency Resolution Process (CIRP).

Ensuring that the substratum of the business of corporate debtor is not lost, and it can continue as a going concern by clarifying that the licenses, permits, concessions, clearances etc. cannot be terminated or suspended or not renewed during the moratorium period.

Ring-fencing corporate debtor resolved under the IBC in favour of a successful resolution applicant from criminal proceedings against offences committed by previous management/promoters.

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for signing the Memorandum of Cooperation (MoC) between Government of India and Government of Japan to constitute the ‘India-Japan Steel Dialogue’ to strengthen cooperation in steel sector.

Benefits The ‘India-Japan Steel Dialogue’ envisages enhancement of mutual understanding to secure sustainable growth in the steel sector.

The Dialogue aims to examine all aspects of cooperation in steel sector including promotion of investment in high grade steel making and finding new avenues of steel usage in India.

The MoC will help in capacity building for high grade steel manufacturing in India.

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to the proposal of Ministry of Road Transport and Highways,authorizingNational Highways Authority of India(NHAI) to set up Infrastructure Investment Trust(s) (InvIT) as per InvIT Guidelines issued by SEBI. This will enable NHAI to monetize completed National Highways that have a toll collection track record of atleast one year and NHAI reserves the right to levy toll on the identified highway.

Impact: InvIT as an instrument provides greater flexibility to investors and is expected to create the following opportunities:

Generation of specialized O&M Concessionaires. Attract patient capital (for say 20-30 years) to the Indian highway market, as these investors are averse to construction risk and are interested in investment in assets which provide long-term stable returns. Retail domestic savings and corpus of special institutions (such as mutual funds, PFRDA, etc.) to be invested in infrastructure sector through InvIT.

Background: Roads and highways are the lifeline of the economy, connecting remote and far-flung areas and ensuring efficient transportation on regional as well as pan-India basis. Development of National Highways has a multiplier effect in terms of facilitating trade and enhancing the overall economic development of a region.

In October 2017, Government of India launched BharatmalaPariyojana, which is the flagship highway development programme of Government of India for development of 24,800 km of roads for a total investment of Rs. 5,35,000 crore.

Given the magnitude of the Bharatmala program, NHAI would need adequate funds to complete the Projects within the prescribed timelines. As a part of this exercise, a workable option is to monetize the completed and operational NH assets to unlock their value and offer attractive schemes to private players to invest in construction of National Highways.

Implementation: Using new and innovative financing vehicles has become inevitable for organisations like NHAI that have limited existing sources of funds. The then Finance Minister, in his Budget Speech of year 2018-19, had stated that NHAI may consider organizing its road assets into Special Purpose Vehicles and use innovative monetizing structures such as Toll, Operate and Transfer model and Infrastructure Investment Trusts (InvlTs).

Based on the learning and experience, NHAI has been actively working on setting up an InvIT to monetize its completed and operational national highways projects with the objective of mobilizing additional resources through capital markets.

NHAI's InvIT will be a Trust established by NHAI under the Indian Trust Act, 1882 and Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014. The InvIT Trust will be formed with an objective of investment primarily in infrastructure projects (as defined by Ministry of Finance). InvIT may hold assets either directly or through an SPV or a holding.

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to introduce the Aircraft (Amendment) Bill, 2019 for carrying out the amendments to the Aircraft Act, 1934 (XXII of 1934). The Bill will now be introduced in the Parliament.

The Bill enhances the maximum limit of fine from the existing Rs. 10 lakhs to Rs. One Crore. It also enlarges the scope of the existing Act to include regulation of all areas of Air Navigation.

The amendments would fulfil the requirements of International Civil Aviation Organisation (ICAO). This will enable the three regulatory bodies in the Civil Aviation sector in India, namely Directorate General of Civil Aviation, Bureau of Civil Aviation Security and Aircraft Accident Investigation Bureau to become more effective, which will lead to enhancement in the level of safety and security of aircraft operations in the country.

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to the following:

"Partial Credit Guarantee Scheme", to be offered by the Government of India (Gol) to Public Sector Banks (PSBs) for purchasing high-rated pooled assets from financially sound Non-Banking Financial Companies (NBFCs) / Housing Finance Companies (HFCs), with the amount of overall guarantee being limited to first loss of up to 10 per cent of fair value of assets being purchased by the banks under the Scheme, or Rs. 10,000 crore, whichever is lower, as agreed by Department of Economic Affairs (DEA). The scheme would cover NBFCs / HFCs that may have slipped into SMA-0 category during the one year period prior to 1.8.2018, and asset pools rated "BBB+" or higher.

The window for one-time partial credit guarantee offered by Gol will remain open till 30th June, 2020 or till such date by which Rs. 1,00,000 crore assets get purchased by the Banks, whichever is earlier. Power has been delegated to the Finance Minister to extend the validity of the Scheme by up to three months taking into account its progress.

Major Impact The proposed Government Guarantee support and resultant pool buyouts will help address NBFCs/HFCs resolve their temporary liquidity or cash flow mismatch issues, and enable them to continue contributing to credit creation and providing last mile lending to borrowers, thereby spurring economic growth.

Background: In the Union Budget 2019-20, it was announced that: "For purchase of high-rated pooled assets of financially sound NBFCs, amounting to a total of Rupees one lakh crore during the current financial year, Government will provide one time six months' partial credit guarantee to Public Sector Banks for first loss up to 10%."

In pursuance to the aforesaid Budget announcement, a Scheme was issued on 10.8.2019 (as modified on 23.9.2019) for providing Government Guarantee to PSBs for purchase of assets by them from NBFCs / HFCs, limited to 10 per cent of fair value of assets purchased by the banks under the Scheme or Rs.10,000 crore, whichever is lower. The window was for a period of six months from the date of issuance of the Scheme or till such date by which Rs.1,00,000 crore of assets get purchased by the Banks, whichever is earlier.

Based upon suggestions received from various stakeholders and discussions held with them, it was decided to obtain approval of the Cabinet on the Scheme incorporating modifications as under:

(a) To make NBFCs / MFCs that may have slipped to SMA-0 category during the one year period prior to 1.8.2018 (i.e. prior to the IL&FS crisis), eligible for purchase of pooled assets from them by PSBs. NBFCs / HFCs reported under SMA-I and SMA-2 category during the aforesaid period will continue to be ineligible under the Scheme.

(b) To revise the minimum rating of the underlying asset pool being purchased by PSBs from the existing "AA" to "BBB+".

(c) To make the Scheme effective upto 30.6.2020, with powers being delegated to the Finance Minister to further extend the Scheme by 3 more months, depending upon the progress made under the Scheme.

The Cabinet has now accordingly approved the "Partial Credit Guarantee Scheme", incorporating modifications as above.

The Scheme is offered to Public Sector Banks with the objective that the purchase of pooled assets enabled by Government guarantee support under the Scheme, will help addressing temporary liquidity / cash flow mismatch issues of otherwise solvent NBFCs / HFCs without them having to resort to distress sale of their assets for meeting their commitments. This will provide liquidity to the NBFC / HFC concerned for financing the credit demand of the economy, and also protect the financial system of the country from any adverse contagion effect that may arise due to the failure of such NBFCs / HFCs.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its approval for extension of timeline upto 31.03.2022 and revision/ re-appropriation of approved components of Prime Minister’s Development Package (PMDP) for development of Horticulture in the UTs of Jammu & Kashmir and Ladakh under Mission for Integrated Development of Horticulture (MIDH).

CCEA approved the following: (i) To extend the timeline for implementation of PMDP approved in 2016 beyond 31st March 2019 by 3 years i.e. up to 31st March 2022 with provision of further extension of time by a maximum period of 12 months, if required, with approval of Union Minister of Agriculture and Farmers Welfare.

(ii) Revision/Re-appropriation of earlier approved components of PMDP within the approved outlay of Rs. 500 crore between UTs of J&K and Ladakh with the provision of further revision, if required, with the approval of Union Minister of Agriculture and Farmers Welfare within the overall financial limit of Rs. 500 crore.

(iii) Revalidation of unspent amount of Rs. 59.07 crore remaining with undivided State of Jammu & Kashmir including Ladakh.

The action plan under PMDP has therefore been modified within the approved outlay of Rs. 500 crore earmarking Rs. 39.67 crore for UT of Ladakh and Rs. 460.33 crore for UT of Jammu & Kashmir.

The implementation of PMDP in the UTs of Jammu & Kashmir and Ladakh Region, is expected to generate an estimated 44 lakh mandays employment and will also result in employment in allied sectors such as grading/packing units, Cold Atmosphere (CA)/Cold storage units and transportation sector etc. As the high density plantation involves technology and regular upkeep of orchards, therefore, it will also result in overall wage enhancement in the horticulture sector due to the increase in the farmers’ income as a result of the increase in productivity.

Background: PM's special package for J&K for Rs.500 crore with Rs. 450 crore Gol Share towards restoration of damaged horticulture areas and development of horticulture in the State of Jammu & Kashmir was approved in 2016 for implementation over a period of three years upto 31.03.2019. The special Package included one- time relaxation in MIDH cost norms for import of planting material of special varieties of apple plants for better survival, early flowering and enhanced fruiting and four wire trellies system expected to increase the productivity 3-4 times.

However, due to time consuming process for import of planting material and quarantine issues, the implementation of PMDP was delayed and the State of J&K requested for extension of time-line for implementation and also revision/ re-appropriation in the components of the approved Action Plan.

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization comprising of seven member states in South Asia and Southeast Asia lying in littoral and adjacent areas of Bay of Bengal constituting a contiguous regional unity. This sub-regional organisation came into being on June 6, 1997, through the Bangkok Declaration.