DTAC and DTAA

The Union Cabinet gave its nod for the introduction of a ‘limitation of benefit’ clause in the double taxation avoidance convention (DTAC) with Israel. The protocol that received the Cabinet’s nod also provides for exchange of information on tax matters, including bank information. The Cabinet also gave its nod for a protocol to amend the existing double taxation avoidance agreement (DTAA) with Vietnam, which also provides for exchange of information on tax matters, including bank information and information without domestic tax interest.

Neeranchal project

The World Bank-assisted ‘National Watershed Management Project’, or ‘Neeranchal’, also received approval for implementation by the Cabinet. The project aims to fulfil the watershed component of the Pradhan Mantri Krishi Sinchai Yojana (PMSKY) to reduce surface runoff of rainwater, increase groundwater levels and better water availability in rain-fed areas.

The cost of the project is estimated at ₹2,142.30 crore, of which the Centre will be pitching in with ₹889 crore, while ₹182 crore will be provided by the respective State governments. The remaining 50 per cent of the project cost will be financed by a World Bank loan.

It will be implemented across nine States – Andhra Pradesh, Telangana, Madhya Pradesh, Maharashtra, Gujarat, Odisha, Chhattisgarh, Jharkhand and Rajasthan.

AIIMS

The Cabinet also approved the setting up of three new All India Institutes of Medical Sciences (AIIMS) at Nagpur (Maharashtra), Mangalagiri (Andhra Pradesh) and Kalyani (West Bengal).

Skill development

The Cabinet also approved the introduction of a new service called the Indian skill development service.