Cabinet Committee on Economic Affairs (CCEA) is one of the highest decision-making body chaired by the Prime Minister of India with other cabinet ministers. The decisions by Cabinet Committee on Economic Affairs (CCEA) in August 2019 are important with the point of current affairs.
Decisions by Cabinet Committee on Economic Affairs (CCEA) in August 2019
1. CCEA approves Sugar export policy for the evacuation of surplus stocks of 60 lakh tons of sugar during 2019-20:
The lump sum of about Rs.6,268 crore @ Rs. 10,448 per Metric Tonne (MT) export subsidy will be provided for expenses on marketing costs including handling, upgrading, and other processing costs, costs of international and internal transport and freight charges on export of up to 60 Lakh Metric Tonne (LMT) of sugar limited to Maximum Admissible Export Quantity (MAEQ) allocated to sugar mills for the sugar season 2019-20.
Reasons for subsidizing the export of sugar:
The surplus stock of 162 LMT of sugar would create downward pressure throughout the season on sugar prices affecting the liquidity of the sugar mills thereby leading to accumulation of cane price arrears of farmers.
To deal with this situation, the Government has recently created a buffer stock of 40 LMT of sugar for one year from 1st August 2019. However, even after taking into account this buffer stocking of 40 LMT till 31st July, 2020 and likely diversion of sugar by way of production of ethanol from B-heavy molasses/cane juice during SS 2019-20 and requirement of normative stock for two months, there shall be about 60 LMT of excess sugar stock that will need evacuation through export.
2. CCEA approves 75 new Medical Colleges and upgrades 82 district/existing hospitals to medical college adding 15,700 MBBS seats by 2021-22
New medical colleges would be set up in under-served areas having no medical college; with at least 200 bedded District Hospital. Preference will be given to aspirational Districts and District Hospital has 300 beds.
Phase – I – 58 new Medical Colleges attached to existing district/referral hospitals
Phase – II – 24 new Medical Colleges attached to existing district/referral hospitals
Government has announced as a part of ‘Ayushman Bharat‘ that address health holistically, impacting primary, secondary and tertiary care system as well as prevention and health promotion.
3. CCEA approves the construction of the New Line between Vaibhavwadi – Kolhapur (now Shri Chhatrapati Shahu Maharaj Terminus) (108 km).
The average speed will increase by 60% of passenger trains and the doubling of the average speed of freight traffic by 2022-23. It will also help in reducing the time by 3.5 hours.
4. CCEA approves Increasing the Speed to 160 kmph on existing New Delhi – Mumbai Route (including Vadodara – Ahmedabad) and on existing New Delhi – Howrah Route (including Kanpur – Lucknow). It will also help in reducing the time by 5 hours.
What is Cabinet Committee on Economic Affairs (CCEA)
It is chaired by the Prime Minister (Chairperson) with cabinet ministers such as Minister of Defence, Minister of Agriculture, Food & Civil Supplies, Consumer Affairs & Public Distribution. Minister of Railways, Minister of Chemicals and Fertilizers, Minister of Finance, Minister of Road Transport & Highways Shipping, Minister of Commerce & Industry, Minister of Power, Minister of Rural Development, Minister of Communications & IT.
CCEA has the mandate to review economic decisions & trends on a continuous basis, as also the problems and prospects, with a view to evolving a consistent and integrated economic policy framework for the country. It also directs and coordinates all policies and activities in the economic field including foreign investment that require policy decisions at the highest level.