The Cabinet is said to have given its approval for a significant 35 percent cut in the nutrient-based subsidy for fertilisers, sources told CNBC-Awaaz. The decision is expected to have a considerable impact on the agriculture sector and fertiliser industry, they said.
Furthermore, the cabinet is also believed to have sanctioned a subsidy reduction for DAP (Diammonium Phosphate) and MOP (Muriate of Potash) fertilisers. The specific details of the subsidy reduction for these fertilisers are yet to be disclosed, but it is anticipated that this move will have far-reaching implications for farmers and the overall fertiliser market.
The new subsidy scheme is anticipated to be applicable for the period between April and September. This six-month period will be crucial for farmers as they rely heavily on fertilisers during this time for crop cultivation and yield enhancement. The impact of the subsidy cuts on farmers' affordability and agricultural productivity remains a matter of concern.
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In addition, the cabinet is reportedly considering the approval of a Rs 17,000 crores Production Linked Incentive (PLI) scheme for IT hardware. This PLI scheme, known as PLI Scheme 2.0, aims to boost the domestic manufacturing of laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. The scheme has a tenure of six years and is expected to bring about incremental production worth 3.35 lakh crore rupees.
Moreover, the PLI Scheme 2.0 for IT hardware is projected to attract an incremental investment of 2,430 crore rupees, fostering technological advancements and promoting self-reliance in the IT sector. The scheme is also expected to generate significant direct employment opportunities, with an estimated 75,000 new jobs being created.
While these decisions by the cabinet hold significant implications for various sectors, the precise details and official confirmation are yet to be released. The anticipated subsidy cuts in fertilisers and the potential introduction of the PLI Scheme 2.0 for IT hardware, covering a wide range of devices and spanning six years, are expected to shape the trajectory of these industries.
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