Cabinet approves credit relief, cotton mission, chip projects, judicial expansion

NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved several major initiatives aimed at strengthening India's economy, agriculture, technology sector, and judicial efficiency.

A key decision is the launch of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 to support businesses affected by the ongoing West Asia crisis. The scheme provides enhanced credit guarantees through the National Credit Guarantee Trustee Company Limited, offering 100% guarantee coverage for MSMEs and 90% for non-MSMEs, including airlines. This is intended to encourage banks to lend without concerns about defaults. Eligible businesses can access additional credit of up to 20% of their peak working capital utilisation, capped at Rs 100 crore, while airlines may avail loans up to Rs 1,500 crore under specific conditions. The loans come with flexible repayment options, including moratorium periods, and the scheme will remain open for sanctions until March 31, 2027.

In agriculture and textiles, the Cabinet approved Rs 5,659.22 crore for the Mission for Cotton Productivity, covering the period from 2026-27 to 2030-31. The mission aligns with the government's 5F vision-Farm to Fibre to Factory to Fashion to Foreign-and focuses on boosting cotton yield, quality, and sustainability. It includes developing high-yielding, climate-resilient, and pest-resistant seeds, along with promoting modern farming practices such as High Density Planting Systems and Integrated Cotton Management. The initiative also aims to strengthen processing infrastructure, improve traceability through Kasturi Cotton Bharat, and enhance global competitiveness. Around 32 lakh farmers across 140 districts are expected to benefit, with a goal of significantly increasing productivity by 2031.

The Cabinet also approved two semiconductor projects under the India Semiconductor Mission, with a combined investment of about Rs 3,936 crore in Gujarat. These include a Mini/Micro-LED display facility using Gallium Nitride technology in Dholera and a semiconductor assembly and test unit in Surat. Together, they are expected to generate over 2,200 skilled jobs and boost domestic chip manufacturing for industries like electronics and automotive.

Additionally, the Cabinet approved introducing the Supreme Court (Number of Judges) Amendment Bill, 2026, which proposes increasing the number of Supreme Court judges from 33 to 37 (excluding the Chief Justice). This move aims to reduce case pendency and ensure faster delivery of justice. (IANS)

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