Proposals for Foreign Direct Investment

The Year-wise details of the proposals received during the last three years and the current year are as under:  Year No. of fresh approvals received 2011 222 2012 218 2013 219 2014 (till date) 86 The Year-wise details of the proposals approved/ rejected during the last three years and the current year are as under: Year No. of proposals approved# No. of proposals rejected 2011 189 71 2012 199 80 2013 198 33 2014 (till date)  63 15    (# refers to recommendation made during the year including for proposals carried    forward from earlier year(s). Therefore, table in (i) and (ii) will not match.) The Sector-wise and State/UT-wise details of the proposals for Foreign Direct Investment received and approved/ rejected by Foreign Investment Promotion Board are not centrally maintained. As on 15.07.2014, total 91 proposals are pending with Foreign Investment Promotion Board and efforts are being made to clear all the proposals at the earliest. Review of the FDI policy of the country is an ongoing process and Government has taken a number of steps in the recent past to make India an attractive investment destination. However currently there is no proposal under consideration to review the existing policy in Pharmaceutical, agricultural multi-layered marketing, direct selling industry and manufacturing of solar cells. As regards proposal to increase the cap in some sectors, Finance Minister, in his Budget Speech, given on 10.7.2014, has made following statement: “The policy of the NDA Government is to promote Foreign Direct Investment (FDI) selectively in sectors where it helps the larger interest of the Indian Economy. FDI in several sectors is an additionality of resource which helps in promoting domestic manufacture and job creation. India today needs a boost for job creation. Our manufacturing sector in particular needs a push for job creation. India today is the largest buyer of Defence equipment in the world. Our domestic manufacturing capacities are still at a nascent stage. We are buying substantial part of our Defence requirements directly from foreign players. Companies controlled by foreign governments and foreign private sector are supplying our Defence requirements to us at a considerable outflow of foreign exchange. Currently we permit 26 per cent FDI in Defence manufacturing. The composite cap of foreign exchange is being raised to 49 per cent with full Indian management and control through the FIPB route. The Insurance sector is investment starved. Several segments of the Insurance sector need an expansion. The composite cap in the Insurance sector is proposed to be increased up to 49 per cent from the current level of 26 per cent, with full Indian management and control, through the FIPB route. To encourage development of Smart Cities, which will also provide habitation for the neo-middle class, requirement of the built up area and capital conditions for FDI is being reduced from 50,000 square metres to 20,000 square metres and from USD 10 million to USD 5 million respectively with a three year post completion lock in. To further encourage this, projects which commit at least 30 per cent of the total project cost for low cost affordable housing will be exempted from minimum built up area and capitalisation requirements, with the condition of three year lock-in. FDI in the manufacturing sector is today on the automatic route. The manufacturing units will be allowed to sell its products through retail including E-commerce platforms without any additional approval.” Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities. Government plays an active role in investment promotion, through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities. International Cooperation for industrial partnerships is solicited both through bilateral and multilateral arrangements. It also coordinates with apex industry associations, such as FICCI, CII and ASSOCHAM, in their activities relating to promotion of industrial cooperation, both through bilateral and multilateral initiatives intended to stimulate inflow of foreign direct investment into India. The Government has also set up ‘Invest India’, a joint venture company between the Department of Industrial Policy & Promotion and FICCI, as a not-for-profit, single window facilitator, for prospective overseas investors and to act as a structured mechanism to attract investment.

New initiative in agriculture field

In Principle Approval Given for Making Rajendra Agriculture University Bihar into Central University

The conversion of Rajendra Agricultural University, Pusa (Samastipur), Bihar into a Central Agricultural University has been agreed to in-principle. This will become operational after various modalities in this regard are agreed between the State Government and Government of India. There are two Central Agricultural Universities in the country so far: 1. Central Agricultural University, Imphal (1993) 2. Rani Lakshmi Bai Central Agricultural University, Jhansi (2014) GIS Based Soil Fertility Maps Prepared for 19 States Indian Institute of Soil Science has developed GIS based soil fertility maps of 19 states using data of different soil testing laboratories in the country. The assessment revealed that about 59, 49 and 9% soils are low in available nitrogen, phosphorus and potassium respectively. The extent of micronutrient deficiency in soil (state-wise) was studied under the All India Coordinated Research Project on ‘Micro and Secondary Nutrients and Pollutant Elements in Soils and Plants’. The Government through the National Project on Management of Soil Health & Fertility and National Project on Organic Farming promotes soil test based balanced and integrated nutrient management and use of organics (manure/composts, biofertilizers etc.) to prevent decline in fertility of agricultural land and to improve soil fertility. The Government uses science and technology, namely, Geo-referenced soil sampling technique, GIS based software for soil fertility mapping, prescription equations for soil test based fertilizer recommendation, liquid biofertilizer formulations, soil genomics, bio-enriched composting/vermicomposting, fertigation and Resource Conservation Technologies (RCTs) for improving fertility of soils. Besides, nano technology application is also being explored. Measures to Address Post Harvest Losses Government has taken several measures to address the issue of post harvest losses which include (i) incentivization of post-harvest infrastructures including construction/renovation of cold storages through credit linked back ended subsidy scheme of Mission on integrated Development of Horticulture (MIDH), (ii) provision of subsidy for construction of cold storages as part of Integrated Value Chain (IVC) under Agriculture Marketing Infrastructure (AMI) sub-scheme of Integrated Scheme of Agricultural Marketing (ISAM), (iii) Small Farmers’ Agribusiness Consortium (SFAC) also sanctions projects for cold storage units under its scheme of Venture Capital Assistance (VCA) and Project Development Facility (PDF) and has sanctioned VCA to 234 units across the country, (iv) Ministry of Food Processing Industries (MoFPI) is also implementing a scheme of cold chain, value addition and preservation infrastructure to provide integrated cold chain and processing facilities from farm gate to consumers, (v) Ministry of Commerce through APEDA provides assistance to private companies for setting up infrastructure including specialized cold stores, (vi) CIPHET has established tomato pilot plant facility for providing hands on training to farmers/entrepreneurs/youth to take up value addition at rural catchment area as food processing venture and also provides trainees with incubation facility to start their own ventures. CIPHET has also been instrumental in design and development of ventilated train wagons for transportation, safe handling and storage of potatoes and in development of evaporatively cooled chambers which can be established at production catchment for short duration storage of these commodities. And (vii) Government has established the National Centre for Cold Chain Development (NCCD) which provides cold-chain technical guidance, conducts knowledge dissemination activities and addresses industry concerns on development matters. Measures to Address any Situation Arising due to Deficient Rainfall As per India Meteorological Department (IMD) second stage operational long range forecast, South West Monsoon (June-September) rainfall during 2014 is likely to be 93% +4% of country`s Long Period Average (LPA) of 890 mm. Cumulative rainfall till 14.07.2014 was 170.4 mm which is 41% less than normal (LPA) rainfall of 289.2 mm. So far, all States except Sikkim, West Bengal, Jharkhand, Bihar & Tamil Nadu have received sub normal rainfall. Government has taken several measures to address any situation arising due to deficiency in monsoon rainfall. Central Research Institute of Dryland Agriculture (CRIDA), in collaboration with State Agricultural Universities has prepared contingency plans for 520 districts for implementing location specific interventions to sustain agriculture production in the eventuality of weak monsoon/deficient rainfall. States have been advised to ensure availability of short duration and drought tolerant varieties of seeds so as to be in a position to supply them to farmers in case such a need arises. States have also been advised to keep asides 10% of funds available under Rashtriya Krishi Vikas Yojana (RKVY) and other schemes for undertaking appropriate interventions to mitigate any situation arising out of deficient rainfall. States have also been requested to construct water harvesting structures, restore irrigation infrastructure by desilting canals; energising tubewells, replacing/repairing faulty pumps and arranging power to meet irrigation needs. Farmers have also been advised to adopt techniques such as in-situ moisture conservation, on farm water conservation, ridge furrow sowing, promoting suitable agronomic practices including mulching, inter cropping, mixed cropping, sowing of less water consuming crops etc. In the eventuality of drought, State Governments are empowered to initiate necessary relief measures from State Disaster Response Fund (SDRF) which is readily available with them. Additional financial assistance, over and above SDRF, is considered from National Disaster Response Fund (NDRF) on receipt of memoranda from State Governments and in accordance with extant norms and procedures. Production of Biofertilizers Increases to 46836 MT Production of biofertilizer in 2008-09 was 25065 mt which has increased to 46836 mt in 2012-13 in the country. Government is promoting production of biofertilizers in the country through various programmes under National Mission on Sustainable Agriculture (NMSA), Mission for Integrated Development of Horticulture (MIDH), Rashtriya Krishi Vikas Yojna (RKVY) and Network Project on Organic Farming under ICAR. (ii)        Under Soil Health Management (SHM) component of NMSA, financial assistance upto 50% of cost subject to a limit of Rs.5,000/- per hectare and Rs.10,000/- per beneficiary is provided for promotion of organic /chemical free inputs on farmers field. (iii)       Under Soil Health Management component of NMSA, financial assistance upto 33% of financial outlay upto a ceiling of Rs.63.00 lakhs is provided as back-ended subsidy through NABARD for establishment of agro / vegetable waste compost production units.  Assistance has been provided for 56 nos.of Bio-Fertilisers production units and 17 nos. of fruits/ vegetables agro waste compost units have been established under the scheme. Details of Biofertilizer Production in the country during last five years are at annexure I. (iv)       Under Mission for Integrated Development of Horticulture (MIDH), financial assistance for establishing vermi compost units and HDPE Vermi beds is @ 50% of cost subject to a maximum of Rs.50,000/- per beneficiary for a unit having size of 30’x8’x2.5’, for smaller units, assistance is on prorate basis.  For HDPE Vermi bed of 96 cft size (12’x4’x2’), the assistance is Rs.8,000/- per bed.  (v)        Indian Council of Agricultural Research (ICAR) has developed technology for preparation of enriched / vermi compost from various organic wastes. (b):       All India Coordinated Research Project on Soil Test Crop Response (AICRP-STCR) under the aegis of ICAR has developed a soil test based fertilizer prescription model to achieve a desired yield target taking due consideration of crop nutrient requirement, contribution from soil and fertilizer Promoting Organic Farming Government is promoting organic farming in the country through various programmes, namely, Soil Health Management component under National Mission for Sustainable Agriculture (NMSA), Mission for Integrated Development of Horticulture (MIDH), Rashtriya Krishi Vikas Yojna (RKVY) and Network Project on Organic Farming under ICAR. (ii) Under Soil Health Management (SHM) component of National Mission for Sustainable Agriculture (NMSA), financial assistance upto 50% of cost subject to a limit of Rs.5,000/- per hectare and Rs.10,000/- per beneficiary is provided for promotion of organic inputs on farmers field. (iii) Under Soil Health Management component of NMSA, financial assistance upto 33% of financial outlay upto a ceiling of Rs.63.00 lakhs is provided as back-ended subsidy through NABARD for establishment of agro/vegetable waste compost production units. (iv) Under Mission for Integrated Development of Horticulture (MIDH), financial assistance for establishing vermi compost units and HDPE Vermi beds is @ 50% of cost subject to a maximum of Rs.50,000/- per beneficiary for a unit having size of 30’x8’x2.5’, for smaller units, assistance is on prorata basis. For HDPE Vermi bed of 96 cft size (12’x4’x2’), the assistance is Rs.8,000/- per bed. (v) Indian Council of Agricultural Research (ICAR) has developed technology for preparation of enriched/vermi compost from various organic wastes.

Planned Development of North-Eastern Region

Fifty three (53) Ministries/Departments of Government of India earmark 10% of their Gross Budgetary Support (GBS) for North Eastern Region (NER)that is spent as per their own development plans.  Details of the development plans as communicated by different line Ministries undertaking infrastructure development projects in NER are as follows:- I. Railways: Master Plan for development of railway infrastructure in the North-Eastern States includes:- i)              connectivity to all State capitals. ii)             unigauge broadgauge network in the region. iii)            augmentation of network capacity for handling growth of traffic in future iv)           expansion of network to unconnected areas of the region. v)            Strengthening international borders. vi)           Improving trade and connectivity with neighbouring countries. 20 major infrastructural projects for New Line, Doubling and Gauge Conversion are sanctioned and ongoing in North Eastern States.  These include 10 National Projects.  Together these major projects cover a length of 2919 km. at a cost of Rs.38310 crore. II.  Telecommunication: Comprehensive Telecom Development Plan for North East Region (NER) includes:- (i)  Provision of 2G  mobile coverage in identified uncovered areas. (ii)           Provision of seamless 2G mobile coverage along the National Highways in NER. (iii)          Ensuring reliability of and redundancy in the transmission network at State capitals and district headquarters in NER. In its meeting held on 13.06.2014, the Telecom Commission approved the proposal to implement the Comprehensive Telecom Development Plan at an estimated project cost of Rs.5336.18 crore.  III. Roads: Special Accelerated Road Development Programme for North East (SARDP-NE) includesupgradation of 10141 km road stretches of National Highways and State Roads aims to upgrade National Highways connecting State Capitals to 4 lane or 2 lane  and to provide connectivity to all 88 District Headquarter towns of NER by at least 2-lane road. IV.  Power:                 Development of power sector inter-alia includes:- (i)                     Generation: A generation capacity addition programme of 5596 MW in the North Eastern Region; (ii)                   Transmission: (a)                   A comprehensive scheme for strengthening of transmission and distribution system in Arunachal Pradesh & Sikkim at an estimated cost of Rs.4754.42 crore; (b)                  ‘NER Power System Improvement Project’ for strengthening of Transmission and Distribution system in Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. The estimated cost of the scheme is Rs.4923.32 crore. (c)                   Providing access to Electricity to rural households during XII Five Year Plan with the total project cost of Rs.2311.37 crore. V.  Inland Waterways: Inland Waterways Authority of India (IWAI) has a mandate to develop National Waterways including National Waterway-2 (River Brahmaputra) from Bangladesh Border (near Dhubri) to Sadiya for the purpose of inland water transport and Development of Barak River from Lakhipur to Bhanga (121 km) as                a National Waterway at an estimated cost of Rs.141 crore at 2014 price.

Generation of Electricity from Solid Waste

The Ministry of New and Renewable Energy is implementing programmes on energy from urban, industrial and agricultural wastes/residues including setting up of five pilot projects for power generation from municipal solid waste. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Lok Sabha today. The programme provides Central Financial Assistance of Rs.2.00 crore/MW limited to Rs.10 Crore per project. In addition, excise duty exemption and concessional custom duty are also being provided to such projects. The Minister further stated that only one project of 16 MW capacity is operational at Okhla, New Delhi and four more projects [at Delhi (2 Nos.), Hyderabad (A.P.), Pune (Maharashtra)] have been commenced, the Minister added. Programmes/Schemes for the Upliftment of Scheduled Tribes             The Ministry of Tribal Affairs is running following programmes/schemes for the upliftment of Scheduled Tribes over all India: (i) Scheme of Construction of Hostels for ST Girls and Boys (ii) Scheme of Establishment of Ashram School in Tribal Sub-Plan Areas (iii) Post-Matric Scholarship for ST students (iv) Upgradation of Merit (v) Pre-Matric Scholarship for ST students studying in classes IX & X. (vi) Vocational Training in Tribal Areas(State’s component) (vii) Rajiv Gandhi National Fellowship for STs (viii) Scheme of National Overseas Scholarship for STs (ix) Top Class Education for ST students (x) Grants in aid to Voluntary Organisations working for the welfare of Scheduled Tribes (xi) Coaching for Scheduled Tribes (xii) Strengthening Education among Scheduled Tribe Girls in Low Literacy Districts (xiii) Vocational Training in Tribal Areas (xiv) Development of Particularly Vulnerable  Tribal Groups (PVTGs) (xv) Grants-in-Aid to STDCCs for MFP Operations (xvi) Mechanism for Marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and Development of Value Chain for MFP’ as a measure of social safety for MFP gatherers.            (xvii) Grants under Article 275(1) of the Constitution of India (xviii) Special Central Assistance to Tribal Sub Plan (SCA to TSP) (xix) Development of Tribal Products/Produce (Grants in aid to Tribal Cooperative Marketing Development Federation of India Limited (TRIFED) (xx) A new Scheme called ‘Van Bandhu Kalyan Yojana’ has been proposed by the Ministry of Tribal Affairs and Rs.100.00 crore (Rupees Hundred Crore) have been allocated under the scheme for the year 2014-15. Dam on Brahmaputra Government of India is aware of construction activity on Yarlung Tsangpo/Brahmaputra river at Zangmu on the Chinese side which is a Run of the River (RoR) hydroelectric project. Recently released ‘Outline of the 12th Five Year Plan for National Economic and Social Development of the People’s Republic of China’ indicates that three more hydropower projects on the main stream of the Yarlung Tsangpo/Brahmaputra River in Tibet Autonomous Region have been approved for implementation by the Chinese Authorities. As these four projects are considered to be Run of the River (RoR) hydro-electric projects, any significant change on flow of water in the North-East of India is not expected. Government of India monitors developments on the Brahmaputra River. As a lower riparian state with considerable established user rights to the waters of the River, India has conveyed its views and concerns to the Chinese authorities, including at the highest levels of the Government of the People’s Republic of China. India has urged China to ensure that the interests of downstream States are not harmed by any activities in upstream areas.

Female Literacy

On account of comparatively low female literacy rate among the disadvantaged groups including Muslims, a target focused approach to enhance female literacy among Muslim adults under the name of Maulana Azad Taleeme-e-Balighan has been initiated since February, 2014. The female literacy rate is lower than the national average female literacy rate in ten States and one Union Territory namely, Andhra Pradesh, Arunachal Pradesh, Bihar, Chhattisgarh, Jammu & Kashmir, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh and Dadra & Nagar Haveli. Various factors viz. poverty, gender and social inequities, etc. are impeding female literacy in the country. A statement indicating State/UT-wise and gender-wise literacy rate in the country as per Census, 2011 is annexed. In order to improve female literacy rate in the country, Government has been implementing Saakshar Bharat programme since October, 2009 in rural areas of all the districts that had adult female literacy rate of 50% and below as per Census, 2001, including left wing extremism affected districts, irrespective of their literacy rate. The scheme has a target of 70 million adult non-literates, including 60 million women, with special thrust on disadvantaged groups. In addition, Government is implementing the Sarva Shiksha Abhiyan (SSA) under the Right of Children to Free and Compulsory Education Act, 2009 for universalisation of elementary education for all children in the age group of 6-14 years. Sarva Shiksha Abhiyan has targeted interventions for girls that includes opening of schools in the neighbourhood, appointment of additional teachers including women teachers, free textbooks, free uniforms, separate toilets for girls, teachers’ sensitisation programmes, gender-sensitive teaching-learning materials, etc. In addition Kasturba Gandhi Balika Vidyalayas (KGBV) has been opened in Educationally Backward Blocks where the female rural literacy is below the national average to provide for residential upper primary schools for girls.

Chinese intrusion in Indian Territory

There is no commonly delineated Line of Actual Control (LAC) in the border areas between India and China. From time to time, on account of differences in the perception of the LAC, situations have arisen on the ground that could have been avoided if we had a common perception of the LAC. Government regularly takes up any transgression along the LAC with the Chinese side through established mechanisms including border personnel meetings, flag meetings, meetings of Working Mechanism for Consultation & Coordination on India- China Border Affairs and diplomatic channels. The two sides agree that peace and tranquillity on the border is the basis for the continued expansion of India-China relations. The Chinese Foreign Minister Wang Yi visited India on June 8-9, 2014 as the Special Envoy of the President of China. The External Affairs Minister Smt. Sushma Swaraj held extensive discussions with him. The discussions were comprehensive and substantive and various issues of significance were raised and discussed in a frank and candid manner.

India facilitates entry into force of Nagoya Protocol on Access and Benefit Sharing

The Minister of State (Independent Charge), Ministry of Environment, Forests and Climate Change, Shri Prakash Javadekar today made a suo moto statement on the floor of Lok Sabha regarding India facilitating entry into force of Nagoya Protocol on Access and Benefit Sharing. The Minister stated that the Nagoya Protocol on Access and Benefit Sharing translates and gives practical effect to the equity provisions of the Convention on Biological Diversity. The landmark treaty has received the requisite number of ratifications during India`s Presidency of the Conference of Parties for its entry into force. The Minister congratulated his counterparts for making this happen. The Minister further mentioned that a new era has now ushered in for implementation of CBD that would contribute to achieving sustainable development and a glorious future for all living beings inhabiting our mother Earth. Ratification of the Nagoya Protocol by 51 Parties to the CBD is also a major step towards achieving the first of the global Aichi Biodiversity Targets (Target 16 that by 2015, the Nagoya Protocol is in force and operational), and that too more than a year before its target date, which is quite unprecedented. The pivotal role played by India in achieving this remarkable feat once again showcases India’s leadership on biodiversity in the global arena. The Nagoya Protocol on Access and Benefit Sharing (ABS) will enter into force on 12 October 2014, 90th day of receiving the required 50th instrument of ratification on 14th July 2014. The Nagoya Protocol was adopted at the tenth meeting of the Conference of the Parties (CoP) to the Convention on Biological Diversity (CBD) held in Nagoya in October 2010. The Protocol significantly advances the objective of the Convention on the fair and equitable sharing of benefits arising from the utilization of genetic resources by providing greater legal certainty and transparency for both providers and users of genetic resources including researchers and industry. By promoting the use of genetic resources and associated traditional knowledge, and by strengthening the opportunities for fair and equitable sharing of benefits from their use, the Protocol will create incentives to conserve biodiversity, sustainably use its components, and further enhance the contribution of biodiversity to sustainable development and human well-being. India has been a victim of misappropriation or biopiracy of our genetic resources and associated traditional knowledge, which have been patented in other countries (well known examples include neem and haldi). It is expected that the Nagoya Protocol on ABS which is a key missing pillar of the CBD, would address this concern. In order to prevent biopiracy, the Government of India in 2002 brought out domestic legislation for ABS, namely, Biological Diversity Act, 2002. After requisite number of ratifications of Nagoya Protocol and its becoming an international law from 12th October, 2014, this will supplement our domestic efforts. India, having hosted CoP-11 to the CBD in Hyderabad in October 2012, is currently the President of CoP till CoP-12 to be held in Pyeongchang, Republic of Korea in October 2014. Facilitating early entry into force of this landmark international treaty has been a priority of India as CoP President. Towards this, India has made significant efforts in the last 21 months through political and diplomatic channels