Cabinet approves proposal for capital infusion for OICL, NICL and UIICL

The Union Cabinet today approved a proposal for capital infusion for three Public Sector General Insurance Companies, namely Oriental Insurance Company Limited (OICL), National Insurance Company Limited (NICL) and United India Insurance Company Limited (UIICL).

The cabinet meeting at which the in-principle approval was given to this proposal was chaired by the Prime Minister Narendra Modi.

A total of Rs 2,500 crore will be released immediately for the same. An official statement read, "In view of the above, Cabinet has allowed the immediate release of Rs 2500 Crore in the light of the critical financial position and breach of regulatory solvency requirements of 3 PSGICs viz. OICL, NICL and UIICL."

Other Decisions Taken At the Cabinet Meet

The Cabinet also approved the Signing and Ratification of the Protocol amending the Agreement between India and Sri Lanka for the avoidance of double taxation and the prevention of fiscal evasion concerning taxes on income.

Updation of preamble text and inclusion of Principal Purpose Test, a general anti-abuse provision in the Double Taxation Avoidance Agreement (DTAA) will result in curbing of tax planning strategies which exploit gaps and mismatches in tax rules.

In the same meeting, the Cabinet was apprised of a Memorandum of Understanding (MoU) signed between India and Iceland in the field of Fisheries. The MoU was signed on September 10, 2019. The salient features of the MoU are:

** Creation of facilities for exchange of scientists and technical experts and their proper placement, especially in areas of estimating Total Allowable Catches in offshore and deep-sea areas;

** Provision of training to fisheries professionals from key fisheries institutions in the various management aspects on areas of modern fisheries management and fish processing Exchange of scientific literature research findings and other information.

** Exchange of experts/expertise to study the prospects of fishing. Processing and marketing of products from high seas fisheries for entrepreneurship development.

** The MoU will strengthen the existing friendly relations between India and Iceland and will enhance consultation and cooperation on Fisheries including consultation on bilateral issues.

Besides, the Union Cabinet has decided that Pesticide Management Bill, 2020, will be introduced in this session of Parliament. The Bill aims at protecting farmers' interests by ensuring that they get safe and effective pesticides.