​New Delhi: The Union cabinet, chaired by Prime Minister Narendra Modi, on Thursday approved a slew of key economic decisions, including extension of a scheme to distribute subsidised sugar to Antyodya Anna Yojana (AAY) families for two more years till March 31, 2026.

Under the scheme, the Centre offers a subsidy of ₹18.50 per kg per month of sugar to the poorest of the poor AAY households at a total cost of more than ₹1,850 crore during the period of the 15th Finance Commission (2020-21 to 2025-26), a statement said. The scheme is expected to benefit nearly 10.89 million AAY households, it added.

The Cabinet has also approved a formula for the determination of marketing margin on supply of domestic gas to fertiliser (urea) units from “May 1, 2009 to November 17, 2015”.

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“This approval is a structural reform,” the ministry of petroleum and natural gas said in a statement. Marketing margin is charged by gas marketing companies from consumers over and above the cost of gas for taking on the additional risk and cost associated with marketing of gas, the statement added. The government had previously determined the marketing margin on supply of domestic gas to urea and LPG producers in 2015.

“The approval will provide additional capital to the various fertiliser (urea) units for the component of marketing margins paid by them on domestic gas procured during May 1, 2009 to November 17, 2015, based on rates already being paid from November 18, 2015 onwards,” the release said.

In the same meeting, the council of ministers approved the continuation of a scheme granting rebate on state and central taxes and levies for export of apparel and garments up to March 31 2026.

“The continuation of (the) scheme for the proposed duration of two (2) years will provide a stable policy regime which is essential for long term trade planning, more so in the textiles sector where orders can be placed in advance for long term delivery,” a separate government release said.

The Cabinet has also approved an extension to the Animal Husbandry Infrastructure Development Fund to be implemented under Infrastructure Development Fund (IDF) for another three years up to 2025-26. The scheme has an outlay of ₹29,610.25 crore

The scheme will “incentivise investments for dairy processing and product diversification, meat processing and product diversification, animal feed plant and breed multiplication farms”, the government said in a statement.

The council of ministers also gave its nod for signing and ratification of a bilateral investment treaty between India and the United Arab Emirates, which is expected to “improve the confidence of the investors, especially large investors, resulting in an increase in Foreign Investments and Overseas Direct Investment (ODI) opportunities”.

“The approval is expected to increase investments in India and is likely to help in realizing the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, increasing exports etc.,” a release stated.