The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi took several key decisions on 25 November 2024. These include approval for several infrastructure projects such as the expansion of the railway infrastructure, investments in renewable energy projects and the PAN2.0 Project.

Expansion of Railway Infrastructure-

The CCEA on Monday approved three railway expansion projects worth Rs. 7,927 crores approximately. These are Jalgaon- Manmad 4^th line (160 km), Bhusawal- Khandwa 3^rd and 4^th line (131 km), Prayagraj (Iradatganj)- Manikpur 3^rd line (84km). These projects stem from the PM Gati Shakti National Master Plan for multi-modal connectivity. These three projects will cover seven districts from three states i.e., Maharashtra, Madhya Pradesh and Uttar Pradesh, increasing connectivity for movements of people, goods and services by adding 639kms to the existing railway network.

Investment in Hydro-electric Project-

The CCEA, chaired by PM Modi has approved investments worth Rs.1939 crore for the construction of the Heo Hydro-electric project in the Shi Yomi District of Arunachal Pradesh. The estimated completion time for the project is 50 months. It is expected to produce 1000 Million Units of energy annually with an installed capacity of 240 MW (3 X 80 MW). The power will be utilized to provide power to the state of Arunachal Pradesh and the rest will be integrated into the national grid. The project is a joint venture between North Eastern Electric Power Corporation Ltd. (NEEPCO) and the Government of Arunachal Pradesh. GOI will extend Rs 127.78 crore as budgetary support for infrastructure development such as the construction of roads, bridges and associated transmission lines along with Rs.130.43 crore as Central Financial Assistance towards the equity share of the state.

Pan 2.0 Project-

It is an initiative under the e-Governance project and will be carried out by the Income Tax department. This is an upgrade on the existing PAN/TAN ecosystem with an estimated financial implication of Rs.1435 Crore. This will likely transform the Taxpayer Registration Services with increased efficiency and convenience. It resonates with the GOI initiative of Digital India and is a completely paperless platform with enhanced cybersecurity.

What does it mean for SMBs-

The proposed expansion of railway infrastructure will generate direct employment for about lakh human days throughout the construction period. It was needed to reduce the excessive congestion in the busiest sections between Mumbai and Prayagraj. The project is an attempt towards making the people of the region ‘Atmanirbhar’ by generating opportunities for employment and self-employment which is in coherence with the PM’s vision of ‘Atmanirbhar Bharat’. Further, it will benefit 1,319 villages and about 38 lakh population by enhancing connectivity between the two aspirational districts of Khandwa and Chitrakoot. It will likely bolster religious tourism in the Varanasi (Kashi Vishwanath), Khandwa (Omkareshwar) and Nashik (Trimbakeshwar) and other religious places like Prayagraj, Chitrokot, Gaya, Shirdi and other world tourism sites like Khajuraho, Ajanta & Ellora Caves, Devgiri Fort, Asirgarh Fort, Rewa Fort, Yawal Wildlife Sanctuary, Keoti Falls, and Purwa Falls etc. Apart from that improved connectivity for essential routes for the transportation of commodities like fertilizer, coal, steel, cement, and containers will likely help in agriculture and the value chain of the businesses engaged in electricity production, construction and steel industry by augmenting the freight traffic of magnitude 51 MTPA (Million Tonnes Per Annum). The railway is considered environment-friendly compared to other modes of transportation and will reduce CO2 emissions by 271 crore kg.

The Heo Hydro-electric power project in Shi Yomi district will generate 802 Million Units of energy which will benefit the state by 12% free power and another 1% towards the Local Area Development Fund (LADF) besides this, significant infrastructure improvements such as 10 kilometres of roads and bridges and socio-economic development such as hospitals, schools, vocational training institutes like ITIs, marketplace and playground etc will be financed from dedicated people’s fund of Rs 15 crore. The project under the Amtanirbhar Bharat Abhiyan will provide prominence to the local suppliers, and MSMEs enterprises. The local population will get employment during construction, operation, and maintenance and be part of many CSR initiatives. Furthermore, it will create transportation, tourism, and small-scale business jobs.

The comprehensive upgrade of the PAN/TAN ecosystem will provide easy access and speedy service delivery. PAN 2.0 will create a single source of truth and data consistency. The system will feature a centralized portal for PAN-related services. The new system will make compliance easier by ensuring PAN is a common business identifier.
MSMEs will have an easier mechanism for maintaining records and reduce the complexities of filing tax returns and other compliance systems. Moreover, transitioning to a paperless system will minimize the negative impact on the environment and cut operational costs. With a more robust system, MSMEs will likely find it easier to establish their creditworthiness with PAN2.0 and will instil confidence in financial institutions against tax evasion.