India - August 26, 2024

Cabinet Decision: Revised National Pension Scheme for State Government Employees Aligned with Central Guidelines

August 26, 2024

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In a Cabinet meeting chaired by Chief Minister Eknath Shinde, a decision was made to implement a revised National Pension Scheme for state government employees, similar to the one in place at the Central level. This scheme will be implemented from March 2024 onwards and will benefit lakhs of state employees.

The Cabinet accepted the principle recommended by the committee that the State Government should bear the investment risk in the National Pension System. Employees retiring at the stipulated age under the National Pension System will be given the option to switch to the proposed revised National Pension Scheme. Under this scheme, they will receive a pension equivalent to 50% of their last drawn salary plus an inflationary increase and 60% of the family pension. The pension and inflation adjustments will be applied as mentioned above. The revised National Pension Scheme for state government employees will be effective from March 1, 2024.

Employees who retire before March 1, 2024, and have already purchased an annuity under the National Pension Scheme will continue to receive benefits from the annuity as per the current National Pension Scheme until February 29, 2024. However, pensioners who opt for the revised National Pension Scheme must adhere to the new rules.

The calculation of the service period under this scheme will be based on the actual contributions made by the member. Periods for which contributions were not made will not be counted as service time for pension purposes. If an employee’s contribution was not deducted from their salary, they may still count that period as service time by paying the outstanding contributions with interest.

Any earlier or later withdrawals from the accumulated funds under the National Pension System must be repaid with 10% interest from the commencement of the revised National Pension Scheme; otherwise, the pension will not be admissible.

This scheme will also be applicable to eligible employees from recognized and grant-aided educational institutions, non-agricultural universities, their affiliated aided non-government colleges, and agricultural universities who are members of the National Pension System and meet the conditions outlined above. The decision will also apply to Zilla Parishad employees.

Expansion of Scheme to Provide Uninterrupted Electricity to Farmers

The Cabinet meeting today also approved the expansion of the Chief Minister Solar Agriculture Vahini Yojana 2.0, aimed at providing uninterrupted and reliable daytime electricity supply to farmers for their agricultural pumps. Chief Minister Eknath Shinde presided over the meeting.

The Chief Minister’s Solar Agriculture Yojana 2.0 is being implemented across the state to ensure a steady electricity supply to farmers during the day. The scheme has approved a target of 16,000 MW of decentralized solar power generation capacity—9,000 MW by 2025, with the remaining 7,000 MW to follow. This initiative will ensure 100 percent daytime electricity supply to all agricultural pump users in the state. The continuation of incentive financial assistance under the Chief Minister Solar Agriculture Channel Scheme 2.0 was also approved.

An additional fund of Rs. 2,891 crores has been sanctioned for the period 2024-25 to 2028-29 for the maintenance and improvement of power substations, incentive financial assistance, incentives to Gram Panchayats, and a Revolving Fund. This includes an additional provision of Rs. 702 crores for the year 2024-25.

Approval for 30% State Government Financial Assistance for Solar Power Generation

The Cabinet meeting today approved the provision of a 30% Financial Assistance Fund (SGF) by the State Government for solar power generation, aligning with the Central Financial Assistance Fund of the Central Government. A total fund allocation of Rs. 10,041 crores was approved. This includes a provision of Rs. 6,279 crores for the year 2025-26 and Rs. 3,762 crores for the year 2026-27.

The Chief Minister Baliraja Free Power Scheme 2024 has been launched in the state. Under this scheme, the government has decided to bear the electricity costs for 44.6 lakh farmers, supplying power to agricultural pumps with a capacity of up to 7.5 horsepower free of charge. An annual subsidy of Rs. 14,761 crores will be provided for this purpose. With the implementation of the Mukhyamantri Solar Krishi Vahini Yojana 2.0, the average power purchase rate for Mahavitran will decrease, reducing the financial burden on the government for agricultural and industrial sector subsidies. This will ensure the successful implementation of the Chief Minister Baliraja Electricity Tariff Discount Scheme.

MHADA Site at Sion for Co-operative Bhawan

In the Cabinet meeting held today, it was decided to lease MHADA land in Sion to the Mumbai District Central Co-operative Bank for 30 years. Chief Minister Eknath Shinde presided over the meeting.

The 2034.55 sq.m. plot will be leased in exchange for ownership rights to the bounded mat area in the building to be constructed on this plot. The lease agreement is valued at Rs. 24 crores 23 lakhs 35 thousand, taking into account the current market price of the plot.

Completion of Stalled Slum Rehabilitation Projects in Mumbai

The Cabinet decided to expedite the completion of stalled slum rehabilitation projects in Mumbai through government corporations and authorities. Chief Minister Eknath Shinde presided over the meeting.

A total of 228 slum rehabilitation projects will be completed, resulting in the construction of 2,18,931 flats. Corporations and authorities such as Brihanmumbai Municipal Corporation, MHADA, CIDCO, Mahapreet, MIDC, Mahahousing, Shivshahi Rehabilitation Project, and MMRDA have been approved to undertake these projects on a joint partnership basis.

Government Financial Support for Pachora Yarn Mill

The Cabinet meeting today approved government financial assistance for Ashirwad Sahakari Sut Mill in Pachora Taluka of Jalgaon District. Chief Minister Eknath Shinde presided over the meeting.

The mill will receive financing on a 10:40:50 pattern, subject to conditions under the Textile Policy 2023-28.

Full Scholarships for 763 Barty Students

The Cabinet meeting today approved 100% scholarships for 763 eligible students from Barti. Chief Minister Eknath Shinde presided over the meeting.

Previously, it was decided to provide a 50% additional scholarship to students in 2022 under the extra scholarship scheme. However, following student protests, the Cabinet has decided to offer 100% scholarships to eligible students after document verification, similar to the processes followed by Sarathi and Mahajyoti. An expenditure of around Rs. 37 crores has been approved for this initiative.

Warana University Granted Group University Status

In the Cabinet meeting held today, a decision was made to grant Warna University in Warnanagar, Kolhapur district, the status of a group university. Chief Minister Eknath Shinde presided over the meeting.

This group university will include the Tatyasaheb Kore Institute of Engineering and Technology, Yashwantrao Chavan Warna College, and the Tatyasaheb Kore College of Pharmacy.

Establishment of Senior Citizens Corporation

The Cabinet meeting today approved the establishment of a Senior Citizens Corporation for the state’s more than one and a half crore senior citizens. Chief Minister Eknath Shinde presided over the meeting.

This decision aims to provide protection to senior citizens against old age, unemployment, sickness, and disability, making their old age more bearable. The corporation’s headquarters will be in Mumbai, with a share capital of Rs. 50 crores.

Board of Directors’ Responsibility for Loan Repayment

The Cabinet meeting today decided that the entire board of directors of cooperative sugar mills in the state, which have received government guarantees for loans from state cooperative banks, will be individually and collectively responsible for repaying these loans with interest. Chief Minister Eknath Shinde presided over the meeting.

Director Responsibility for Loan Repayment

Directors are required to submit a bond before the disbursement of any loan. If a director on the current board passes away or becomes disqualified, the newly appointed director must submit a bond within 10 days of assuming office. The bond must be issued within 30 days of the elected director taking office and will remain valid until the loan is fully repaid.

Previously, it was required that this debt be secured by legal encumbrance on personal property. However, the new condition places individual and collective responsibility on the directors instead.

Alternative Khadakvasala-Fursungi Tunnel to Enhance Water Supply

The Fursungi Tunnel project, part of the new Mutha Ujwa Canal under the Khadakwasla project, received administrative approval in today’s Cabinet meeting, chaired by Chief Minister Eknath Shinde. This project will increase the availability of water for irrigation and drinking purposes in the Pune area.

The new Mutha Right Canal, stretching from Km 1 to 34, passes through the limits of Pune Municipal Corporation. The canal has suffered damage due to the growth of Pune city, slums, encroachments, and pollution. To prevent a reduction in the canal’s carrying capacity, an alternative tunnel project from Khadakwasla to Fursungi has been proposed for the 34-kilometer section. This project will save 2.18 TMC of water, which will be available for both irrigation and non-irrigation purposes. Additionally, 3,471 hectares of previously deprived agricultural land will be restored with water from this project. The Cabinet has approved a provision of Rs. 2,900 crores and 47 lakhs for this project.

Lease and Service Charge Waiver for Veterinary Hospital in Kalamboli

The Cabinet has decided to waive lease and service charges for the Animal Care Center Foundation’s veterinary hospital in Kalamboli, Panvel Municipal Corporation. Chief Minister Eknath Shinde presided over the meeting.

The Animal Care Center Foundation, registered under the Bombay Public Trusteeship Act, 1950, will operate a veterinary clinic providing medical services for street animals, pets, and others in Navi Mumbai. As a non-profit organization, it will offer services like Intensive Care Units, MRI, and CT scans. CIDCO has allocated plots 7+8 and 9A in Sector 9E, Navi Mumbai, with a combined area of approximately 4000 sq.m. The Cabinet approved the waiver of additional lease charges until the end of March 2024 and service charges until the end of June 2024 for these plots.

Increase in Remuneration for Health Department Group Promoters

The Cabinet has approved a Rs. 4,000 increase in the remuneration of group promoters in the health department. Chief Minister Eknath Shinde presided over the meeting.

Group promoters are responsible for field visits and supervision within their roles. The increase in their remuneration will take effect in April 2024. An annual recurring expenditure of Rs. 17 crores 59 lakhs for this increase will be sanctioned through supplementary demand in the upcoming winter session.

Funding for Olympian Khashaba Jadhav Wrestling Complex

The Cabinet approved revised funding of Rs. 25 crores 75 lakhs for the Olympian Khashaba Jadhav Wrestling Complex at Mau Goleshwar in Karad Taluka of Satara district. Chief Minister Eknath Shinde presided over the meeting.

Previously, Rs. 3 crores had been sanctioned for this complex. The additional funds will be used to provide necessary buildings and sports facilities, including a training center and a hall.

Government Guarantee for Mahavitaran Loan

The Mahavitaran Company requires a loan of approximately Rs. 29,000 crores to pay off its overdue debt. In today’s Cabinet meeting, a decision was made to provide a government guarantee for this loan. Chief Minister Eknath Shinde presided over the meeting.

This loan will be raised through REC and PFC financial institutions, with the total loan amounting to Rs. 20,388 crores and an interest of Rs. 9,670 crores.

Approval for Nar-Par-Girna River Linking Project

The Cabinet has approved the Nar-Par-Girna River Linking Project, which will significantly benefit the irrigation needs of Nashik and Jalgaon districts. Chief Minister Eknath Shinde presided over the meeting.

The project, costing Rs. 7,015 crores and 29 lakhs, involves lifting 9.19 TMC of water from the valleys of the Nar, Par, and Auranga rivers, and channeling it through a 14.56 km tunnel into the Girna river basin at Chankapur Dam. The project will irrigate approximately 50,000 hectares of land.

Transfers of Government Employees Until August 30th

A decision was made in today’s Cabinet meeting to transfer government employees in the state until August 30th. Chief Minister Eknath Shinde presided over the meeting.

To facilitate this, the Regulation of Transfers of Maharashtra Government Employees and Prevention of Delay in Discharge of Government Duties Act, 2005, will be amended. This decision was taken due to restrictions on general transfers in light of the upcoming Lok Sabha elections.

Mahapreet to Raise ₹5,000 Crores for Thane Cluster Scheme

In today’s Cabinet meeting, Mahapreet, a company implementing the cluster scheme under Thane’s ambitious urban reconstruction program, was approved to raise ₹5,000 crores from investors through equity and debt securities. Chief Minister Eknath Shinde presided over the meeting.

The total expenditure for this scheme is estimated at ₹6,049 crores, and the cluster housing project will be implemented in Tekdi Bangla, Hajuri, and Kisan Nagar areas. Additionally, projects include flats under the Pradhan Mantri Awas Yojana in Chavindre and Pogaon in Bhiwandi, flats in Kosra under MHADA in Chandrapur Municipal Corporation, and flats in Yavatmal and Vadgaon. There will also be renewable energy expenditure budget model projects in Thane, Nagpur, and Pune Municipalities, along with the development of an EV Park, Medicity, Mangrove Park, Chemical Hub in Mumbai Metropolis, and Digital University projects. The combined cost of these projects will be ₹10,000 crores.

Exemption for Sarjam Lands of Udayanaraje Bhosale Continues

The Cabinet decided today to continue the exemption granted to the Sarjam lands of Shrimant Udayan Maharaj Pratapsingh Bhosale and his heirs by descent. Chief Minister Eknath Shinde presided over the meeting.

Given the exceptional historical significance of Chhatrapati Shivaji Maharaj’s family and the livelihood of the Bhosale family, their private lands and other properties were originally granted exemptions under the Bombay Sarnjams, Jagirs, and Other Incumbrances of Political Nature, Rescission Rules, 1952. These conditions will be waived, continuing the exemption for the heirs of Shrimant Udayan Maharaj Pratapsingh Bhosale by lineage tradition. This recognition will be subject to the outcome of a Public Interest Litigation pending in the Bombay High Court.