NEWS – Karnataka cabinet says of for Karnataka Micro Finance (Prevention of Coercive and Inhuman Actions) Bill and  New PPP Policy

MICROFINANCE REGULATION:

• Draft Law: Karnataka Micro Finance (Prevention of Coercive and Inhuman Actions) Bill
• Objective: Protect borrowers from harassment by microfinance companies.
• Key Provisions:
  • Imprisonment: 6 months to 3 years with up to Rs 1 lakh fine.
  • Cognizable & Non-bailable Offenses: Police can register cases suo motu.
  • Mandatory Registration: Microfinance institutions must register with deputy commissioners within 30 days of enactment.
  • Prohibition of Security: Microfinance companies and moneylenders cannot seek securities (pawns, pledges).
  • Banning Coercive Methods: Action against psychological pressure, violence, etc., in loan recovery.
  • Ombudsman: Proposed to mediate loan disputes.
• Current Status: Cabinet authorized CM to finalize the draft. Some “radical” provisions may be dropped due to legal concerns. Review underway by CM and other ministers.

ASSET MONETIZATION POLICY:

• New PPP Policy: Public-Private Partnership (PPP) Policy for Infrastructure Projects – 2025.
• Objective: Generate revenue by monetizing government assets.
• Scope: Applies to 15 sectors (agri-infrastructure, education, energy, healthcare, tourism, housing, urban infrastructure, telecommunications, forestry/wildlife, etc.).
• Key Aspects:
  • Formalizes asset monetization: First official statement of intent to generate revenue from government properties (land, buildings, pipelines, roads).
  • Definition: “Limited period license/lease of an asset… to a private sector participant for an upfront or periodic consideration.”
  • Process: Departments/agencies identify assets for monetization based on needs.
  • Rationale: Fiscal pressures from guarantee schemes and rising revenue expenditure.
  • Krishnan Committee: Work on resource mobilization, including asset monetization, is ongoing.
• Asset-Based Support: Government land at concessional rates as incentive for private sector involvement in infrastructure projects.
• Financial Viability: If a project isn’t financially viable on its own, the government may allow suitable commercial activities to ensure a reasonable return for the private participant.

OTHER CABINET DECISIONS

• Satellite Townships: Approved the “Greater Bengaluru Integrated Townships” project to develop satellite towns around Bengaluru. This initiative aims to reduce population density in the city by developing areas like Bidadi, Devanahalli, Nelamangala, Hoskote, Doddaballapur, Magadi, and Bidadi with improved road and rail connectivity. Specific locations mentioned for the project include parts of Ramanagara and Harohalli hoblis.
• Sports Quota: Increased the sports quota in direct police recruitments (constable to DySP level) from 2% to 3%. The maximum age limit for availing this reservation has also been increased to 45 years. This follows a previous announcement to implement a sports quota in all departments.
• Ugrappa Committee Report: The Cabinet discussed the final report by the V S Ugrappa committee focused on curbing exploitation and atrocities against women and children. A team under the chief secretary has been given three months to review the 135 recommendations and suggest implementation strategies.
• Premium FARs Bill: Granted post facto approval for withdrawing a bill related to premium Floor Area Ratios (FARs).
• Morarji Desai Schools: Approved the construction of 19 Morarji Desai residential schools/colleges under the minorities’ welfare department at a cost of Rs 304 crore