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Context:

The Union Food and Consumer Affairs Minister has launched the Credit Guarantee Scheme for e-NWR-based Pledge Financing (CGS-NPF).

Under the guidance of the Ministry of Coal, Singrauli-based Coal India arm Northern Coalfields Limited (NCL) has rolled out 'CHARAK'- "Community Health: A Responsive Action for Koylanchal", an innovative health-centric CSR Initiative.

Credit Guarantee Scheme for e-NWR-based pledge Financing

The Union Minister of Consumer Affairs, Food, and Public Distribution, has launched the Credit Guarantee Scheme for e-NWR-based Pledge Financing (CGS-NPF).

It aims to provide farmers with post-harvest finance of a value of Rs. 1,000 crore. This financing is available in exchange for electronic negotiable warehouse receipts (e-NWRs) collected through depositing commodities in authorised warehouses licensed by the Warehousing Development and Regulatory Authority (WDRA).

The scheme is expected to boost post-harvest lending, with a target of Rs. 5.5 lakh crore over the next ten years. It also aims to improve the lending process, making it more efficient and accessible to farmers.

Who will benefit from the CGS-NPF scheme?

The scheme mainly targets small and marginal farmers, women, SC/ST farmers, and Divyangjan (PwD) farmers, offering them a low guarantee fee. Small traders, MSMEs, Farmers Producer Organisations (FPOs), and farmer cooperatives are also among the beneficiaries.

Small and marginal farmers can borrow up to Rs. 75 lakhs, while MSMEs, FPOs, and traders can borrow up to Rs. 200 lakhs.

Loan guarantee coverage under this scheme

For loans of up to Rs 3 lakhs: 85% coverage for small and marginal farmers, women, and SC/ST/PwD farmers.

For loans ranging from Rs 3 lakhs to Rs 75 lakhs: 80% coverage for small and marginal farmers, women, and SC/ST/PwD farmers.

Other borrowers, such as MSMEs, traders, and FPOs, receive 75% coverage for loans of up to Rs. 200 lakh.

How does the scheme help farmers?

The scheme benefits farmers by reducing distress sales. It makes credit more accessible by using e-NWRs as collateral, allowing farmers to borrow against their stored produce without having to sell it at a loss due to low market prices.

How does this initiative benefit the economy?

The CGS-NPF scheme contributes significantly to economic growth by increasing the availability and accessibility of financial resources for farmers, traders, and MSMEs.

Increased post-harvest lending improves farmers' income and reduces their likelihood of resorting to distressed selling.

It also helps to stabilise the agricultural sector by meeting the financial needs of both farmers and traders.

Charak

The 'CHARAK' initiative is a health-focused Corporate Social Responsibility (CSR) project launched by Northern Coalfields Limited (NCL) on behalf of the Ministry of Coal.

The main objective is to provide free treatment to economically disadvantaged residents of the Singrauli region (Madhya Pradesh) who are suffering from life-threatening illnesses.

Who is eligible?

Residents of the Singrauli and Sonbhadra districts are eligible for the scheme. To be eligible, the family's combined annual income from all sources must be less than Rs. 8 lakh.

What diseases are covered?

The 'CHARAK' scheme covers a wide range of life-threatening diseases, including cancer, tuberculosis and related complications, HIV, cardiovascular diseases, organ transplant needs, burns that cause permanent disability, liver disorders, acute respiratory distress syndrome (ARDS), neurological and neurovascular disorders.

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Source:

PIB

PRACTICE QUESTION

Q.Consider the following statements:

1. Coal accounts for about 75% of the country's energy needs.

2. India is the second largest producer and consumer of coal.

3. About 90% of India's lignite reserves are in Tamil Nadu.

How many of the above statements are correct?

A) Only one

B) Only two

C) All three

D) None

Answer: B

Explanation:

Statement 1 is incorrect:

Coal is the most important and abundant fossil fuel in India. It accounts for 55% of the country's energy requirements. Indigenous coal served as the foundation for the country's industrial history.

Statement 2 is correct:

Coal has been mined in India since 1774, and the country is the world's second-largest producer and consumer of coal after China, mining 997 million metric tonnes in the fiscal year 2023-24.

Statement 3 is correct:

Hard coal deposits are spread across 27 major coalfields and are primarily concentrated in the country's eastern and south-central regions. Lignite reserves total around 36 billion tonnes, with 90% located in Tamil Nadu.