Indian cabinet approves ₹22,791 crore for various projects

The Indian union cabinet has approved several projects totaling ₹22,791 crore. This includes a ₹1,500-crore incentive for the Unified Payments Interface (UPI), a new fertilizer plant in Assam, a new highway in Maharashtra, and revised dairy development schemes. The UPI incentive aims to support low-value transactions. Starting April 1, 2024, it will offer a 0.15% incentive for person-to-merchant transactions under ₹2,000 to help small merchants. The government plans to provide funds to banks facilitating these transactions. However, some in the payments industry are concerned about the low incentive amount, arguing that it is insufficient given the growth of digital payments in India. They are calling for a higher incentive to encourage scaling and growth within the sector. In addition to the UPI incentive, a new urea plant will be set up in Namrup, Assam, costing ₹10,601 crore. This plant will be a joint venture and is expected to meet urea demand in northeastern states and surrounding areas. A six-lane highway project in Maharashtra has also been approved. This road will improve logistics by connecting the Jawaharlal Nehru Port Trust with nearby areas. It is designed to ease transport costs and enhance access to India’s largest port facility. Lastly, the cabinet has revised the National Programme for Dairy Development. The updated program will focus on improving milk procurement systems and creating new dairy co-operative societies. This initiative also aims to generate job opportunities, primarily benefiting women who make up a large share of the dairy workforce.