New Delhi: The Union Cabinet on Wednesday approved the continuation of the Credit Guarantee Fund for Micro Units (CGFMU) for another five years, up to March 31, 2031.
The scheme provides credit guarantee coverage to lending institutions through the National Credit Guarantee Trustee Company Limited against the risk of loan defaults.
Launched in January 2016, the CGFMU has played a significant role in facilitating the growth of loans under the Pradhan Mantri Mudra Yojana, according to an official statement.
According to the figures provided in the Cabinet announcement, more than 60.36 crore loans amounting to Rs 43.34 lakh crore had been sanctioned by lending institutions under the PM Mudra Scheme as of September 2026.
The fund provides guarantee support for loans of up to Rs 20 lakh extended to eligible micro enterprises under PMMY. It also covers overdraft facilities of up to Rs 10,000 provided by banks under Pradhan Mantri Jan Dhan Yojana accounts and loans granted to Self-Help Groups with portfolio amounts ranging from Rs 10 lakh to Rs 20 lakh.
The guarantee coverage will be linked to the disbursement amount in the case of working capital limits and the outstanding amount for term loan accounts. This arrangement is intended to reflect the actual risk exposure of lending institutions.
The Cabinet has also approved a reduction in the guarantee fee from 1% per annum to 0.75% per annum. However, there will be no change in the guarantee fee applicable to Self-Help Groups, which will continue to pay 0.25% for the first year and 0.50% in subsequent years.
Stand-Up India Scheme to continue until March 2031
The Union Cabinet has also approved the continuation of the Stand-Up India Scheme for another five years, until March 31, 2031. The initiative aims to promote entrepreneurship among women, Scheduled Castes and Scheduled Tribes.
The extended scheme targets financial assistance for an additional 2.5 lakh entrepreneurs over the next five years.
Since its launch in April 2016, the scheme has facilitated loans to more than 2.75 lakh women and entrepreneurs belonging to SC and ST communities.
Under the scheme, eligible women and SC and ST entrepreneurs can obtain financial assistance for establishing new or greenfield enterprises.
The loans are available in the form of either a composite facility combining working capital and term loans or a term loan. The eligible loan amount is above Rs 10 lakh and up to Rs 1 crore, covering up to 85% of the project cost.
The scheme covers manufacturing, services, trading, and agriculture-allied activities, thereby providing opportunities for entrepreneurs across different sectors.
Rs 62,370 crore fertiliser subsidy approved for Rabi 2026–27
In another significant decision, the Union Cabinet has approved the Nutrient Based Subsidy rates for phosphatic and potassic fertilisers for the Rabi 2026–27 season, covering the period from October 1, 2026, to March 31, 2027.
The tentative budgetary requirement for the season has been estimated at approximately Rs 62,370.02 crore. This is around Rs 24,417.73 crore higher than the budgetary requirement of Rs 37,952.29 crore for the Rabi 2025–26 season.
The approved subsidy rates will apply to P&K fertilisers, including Di-Ammonium Phosphate (DAP) and NPKS grades, to ensure their smooth availability to farmers at affordable and reasonable prices.
The government said the decision would help rationalise subsidies on P&K fertilisers in view of recent trends in international fertiliser prices and the cost of inputs.
At present, the government makes 28 grades of P&K fertilisers, including DAP, available to farmers at subsidised prices through fertiliser manufacturers and importers.
The subsidy on these fertilisers is governed by the Nutrient Based Subsidy Scheme, which has been in operation since April 1, 2010.
Considering recent international price trends for fertilisers and inputs such as Urea, DAP, MOP and Sulphur, the government has approved the NBS rates for the upcoming Rabi season.
Yuge Yugeen Bharat Museum to come up at Rs 3,230 crore
The Cabinet Committee on Economic Affairs also approved the development of the Yuge Yugeen Bharat Museum at the North and South Block Complex in New Delhi.
The project has an estimated total cost of Rs 3,230 crore and has been appraised by the Public Investment Board.
The proposed museum is envisioned as a major cultural institution showcasing the continuity, diversity and richness of India’s civilisational heritage through an integrated presentation of tangible and intangible cultural traditions.
The historic North and South Block Complex will be adapted for the museum while preserving its architectural character and heritage significance. The transformation will turn the historic buildings into a public cultural institution.
Noida Metro Aqua Line extension approved with five elevated stations
The Union Cabinet approved the extension of the Noida Metro Aqua Line from Noida Sector-51 to Greater Noida Sector-04 under the Noida Metro Rail Project.
The proposed corridor will cover 8.449 km and feature five elevated stations. Once operational, the extension will increase the active metro rail network in Noida and Greater Noida to 71.878 km.
The project is expected to improve public transportation and connectivity between important residential, commercial, educational and healthcare locations across the two cities.
