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24 December 2014
Effective management to contain prices of essential commodities
Initiatives for greater empowerment of consumers Year End Review - Ministry of Consumer Affairs, Food and Public Distribution | |
An integrated action plan to contain prices of essential commodities, online tracking of foodgrains procurement and distribution to make it more efficient and drafting major amendments in Consumer Protection Ac for empowerment of consumers were some of the initiatives taken by the Ministry of Consumer Affairs, Food and Public Distribution during last seven months. These initiatives had direct positive bearing on common man. Food inflation fell down to 0 %at the end of second week of this month. Adequate and timely availability of foodgrains was possible in remotest area inspite of natural calamities like Hud-hud,Floods in J&K, disruption in major rail route due to gauge conversion in North-East. New experiments like shipping of foodgrains to Tripura made for this purpose. Consumer complaints redressal became just a phone call away with the integration of consumer helpline system.
Sugarcane arrears which were Rs 14,095 crore (as on May 31, 2014) came down to Rs.3567 crores (as on 15.12.2014) as a result of concerted efforts to facilitate the payment. , 6.12 % of the total payable sugarcane prices of Rs.58, 269.63 crores to the farmers for sugar season 2013-14.
Steps to contain prices of essential food items
In view of weak monsoon in some parts of country, an increase was noticed in the prices of some of the essential commodities. Ministry of Consumer Affairs, Food and Public Distribution acted swiftly and a conference of State Food Ministers was convened on 4th July to plan both long and short term strategies to contain prices.
“Onions and Potato’ were declared ‘essential Commodities” so that stock control orders could be issued and anti-hoarding measures could be taken by the States. Futures trading in rice suspended and Stock limit Imposed on paddy and rice till November 2014, till the arrival of new crop to ensure easy availability of essential commodities at reasonable prices.
States advised to allow free movement of fruits and vegetables by delisting them from the APMC Act so that farmers could have wider selling choice and consumers could avail at cheaper prices. Moreover to overcome the situation of scarcity of some food and vegetables in one part of the country and excess supply in other , decision taken to develop a “common national market” by removing all barriers on interstate trade. The Government also decided to create a “Market Intervention Fund” for direct intervention in the case of unreasonable increase in prices of food items.
Price Monitoring Cell of the Ministry which monitors prices of twenty two essential commodities strengthened further by increasing number of reporting centres from 57 to 64 and improving the reporting mechanism. Not only that the States asked to set up their own Price Monitoring Units to supplement the Central Government efforts.
In order to moderate prices of wheat and rice, release of 100 lakh tonnes wheat from FCI stock for open market was approved. Fifty lakh tonnes additional rice was also through Public Distribution System with this objective.
The Ministry of Consumer Affairs, Food and Public Distribution also decided to make hoarding a non-bailable offence and to increase the period of detention for black marketing of Essential Commodities by amending the Essential Commodities Act, 1955 and the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980.
Improving the foodgrain management
A high level committee of experts under the Chairmanship of Shri Shanta Kumar, Member of Parliament set up on Aug 20, 2014 to recommend restructuring of Food Corporation India for improving foodgrains management in the country, efficient MSP operations, scientific storage and strengthening supply chain. Extensive consultations with stake holders and States are underway. The committee is expected to submit its report next month.
Meanwhile computerisation of FCI operations is being taken in a big way. Online Depot System initiative to bring operations of all Godowns online in a time bound manner to check reported leakage. To modernise storage decision taken to build modern “Silos” and eleven sites identified for such Silos. Storage capacity also augmented by completing 120.67 lakh MTs capacity by October, 2014, out of 200 Lakh MT capacity approved under Public Private Partnership .
In order to benefit more farmers by improving outreach of MSP operations, the Government decided limit the levy of rice on millers upto 25%.
Implementation of National Food Security Act remained priority of the Government. It remained in touch with States to ensure its speedy implementation. Eleven states have implemented the Act while remaining 25 states have also committed for early implementations. In a meeting of State Food Secretaries convened on Dec10, 2014 state- wise reviews were held to see the preparedness. They states were asked to make the PDS totally transparent by adoptiing end to end computerisation. They have been advised to list beneficiaries on web portal, display movement of ration, and all the related information, digitise ration cards and seed them with AADHAR.
Meanwhile the Center continued timely allocation of food grains to the states which are yet to implement Food Security Act. During the current year, the Ministry released additional 66.45 lakh tons of foodgrains to these States for distribution at BPL rates and APL rates. These States were also allocated 7.11 lakh tons of foodgrains for festivals, calamity relief. This was in addition to the provisional allotment of 483.30 lakh tons of foodgrains already made to the States under normal TPDS allocation, including the allocation under National Food Security Act.
Swift actions ensured adequate supplies of food grains during natural calamities of Hud-Hud cyclone in Andhra Pradesh and devastating floods in J&K. Food Corporation of India (FCI) supplied 16,500 packets of rice, in 10kg also, for distribution in far flung areas of floods affected Jammu Kashmir on the request of State Government. Similarly in North Eastern States, inspite of disruption in rail route due to gauge conversion, from Lumding to Badarpur, adequate availability of foodgrains was ensured and first time rice was shipped from Andhra Pradesh to Tripura through Bangladesh water ways in Oct 2014 for this purpose.
Sugarcane arrears came down to Rs. 3,567 crore from Rs 14,095 crore
Payment of sugarcane arrears to the farmers by the mills was the matter of great concern for the Government. The Government took various measures to facilitate payment of the arrears to the farmers, which included interest free loan, export subsidy on raw sugar, and other incentives to sugar sector. As a result sugarcane arrears came down to Rs.3,567crore (as on December 15, 2014) from Rs 14,095 crore, 6.12 % of the total sugarcane prices of Rs.58, 269.63 crores payable to the farmers for sugar season 2013-14.
Empowering Consumers
Amendments proposed in the Consumer Protection Act and BIS Act for greater empowerment of consumers. Provisions made to ensure speedy, inexpensive and simple dispensation of justice for the consumers. Decision taken to setup National Consumer Protection Authority with all the executive and enforcement powers for redressal of consumer grievances and to take penal class action against defaulting companies.
In order to ensure quality product and services for consumers, amendments also proposed in the Bureau of Indian Standards Act, 1986. Provisions of re-calling of products, enhancing the financial penalty and to reduce the long process of litigation proposed. Decision also made to include more products and services for mandatory standards certification. Simplified scheme of self-declaration of conformity also proposed for helping industries to conform to ISI Standards.
Under the Swacch Bharat Abhiyan, steps taken to formulate/upgrade standards for potable water, street food and garbage disposal. Consultations were held at National level to take views of all stakeholders on proposed amendments to Consumer Protection Act, in New Delhi on 3rd September, 2014 and on BIS Act amendments on December1, 2014.
To tackle the menace of misleading advertisement, the department of Consumer Affairs set up and inter- ministerial Committee.
Grahak Suvidha Kendra (Consumer Care Centres) planned accross the country. The centres will serve as single window facility for consumers to get their grievances redressed with facilities of counselling and mediation also .Trained officials manning these centres will not only provide pre-purchase advice but also take up the grievance of the consumers with concern to resolve on priority. Existing Consumer Grievances Redressal mechanism also strengthened by integrating facilities provided by National Consumer Helpline and Consumer Online Resource & Empowerment Centre (CORE). Inter Ministerial Committee set up to see how interests of Consumers can be protected in the era of direct marketing of goods and its first meeting was held on Dec8, 2014.
Applications format for grant of grants from Consumer Welfare Fund digitized and improved for greater transparency. Joint campaigns organised with Heath, Financial Services and other departments for greater consumer awareness. Financial assistance released to State Governments for strengthening Consumer Courts and testing laboratories under Legal Metrology.
Inter Ministerial Committee set up to see how interest of Consumers can be protected in the era of direct marketing of goods and its first meeting was held on Dec8, 2014.
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Reduced Prices of Life Saving Drugs
Steps to Revive Sick Fertiliser Units to Increase Production
Chemical Industry to be Given a Fillip Through a New National Chemical Policy
A Broad View of Activities in the Ministry of Chemicals and Fertilizers for the Year -2014
The Government had been focusing on reaching medicines to the poor at cheaper prices. It had been taking steps to further strengthen the Jan Aushadi Scheme. As a part of the scheme, it is now proposed to increase the Jan Aushadi stores and include more number of generic medicines to be sold through the stores.
Considering the dependence of the country for certain crucial bulk drugs/Active Pharmaceutical Ingredients (API) a National Centre for Research and Development in Bulk Drugs (NCRDBD) is proposed to be made operational at a NIPER, Hyderabad to become an innovative hub and R&D provider in the Sector. This will help in offering competitive and echo friendly technologies in specified areas, products and processes.
Besides, efforts for capacity building of the industry, various National Institutes of Pharmaceutical Education & Research (NIPER) are being strengthened.
The Ministry has launched major measures to encourage production and capacity-building in the Pharma Sector.
Cluster Development Programme for Pharma Sector (CDS-PS) - With a vision to catalyze & encourage quality, productivity and innovation in the pharmaceutical sector to meet the ever growing domestic needs, and at the same time, enable the Indian pharmaceutical sector to play a leading role in a competitive global market, the Ministry has approved the introduction of CDS-PS on 27.10.2014.
Task Force have been set up, comprising of representatives from Government Departments/ Institutions and Industry Associations has been set up in the Ministry to
o enable the Private Sector to lead the growth of Pharmaceutical Sector
and
o for Development of manufacturing capabilities in each medical vertical in Pharmaceutical production
For the first time a Task Force has also been set up to identify issues relating to the promotion of domestic production of high end Medical Devices and Pharmaceutical Manufacturing Equipment in the Country.
Revival Initiatives for Pharma PSUs – The Ministry has initiated Rehabilitation Schemes for two sick CPSEs - Hindustan Antibiotics Ltd. and Indian Drugs & Pharmaceuticals Ltd. Another sick unit – Bengal Chemicals & Pharmaceuticals Ltd has reported a 243% increase in production during the period April-October, 2014, as compared to last year – from Rs.11.23 crores to Rs. 38.62 crores.
Measures for revival of Fertiliser Corporation of India Limited (FCIL) units at Talcher, Gorakhpur, Ramagundam and HFCL Unit of Barauni have been initiated. Similarly steps for immediate revival of the Fertilizers and Chemicals Travancore Limited (FACT) have been taken on instructions from the Prime Minister. The aim is to increase production of fertilizers in the country as a part of the “Make In India” concept. A new fertilizer policy itself is on the anvil which would also propound balanced use of fertilizers. For clearing the backlog of the pending subsidy claims on fertilizers a Special Banking Arrangement has been made in June 2014 to clear claims of 7000 crore rupees.
The New Investment Policy under which there are 12 proposals for setting up new fertilizer units in the country had been modified and is being pursued. Details: http://pib.nic.in/newsite/erelease.aspx?relid=113449
In a new way various concerned Ministers are holding parleys to thrash out various problems in reviving of these units. Serious steps have been initiated for extension of the Hazira -Jagdishpur gas pipeline for revival of these units in Northern and the Eastern Corridor. Similarly, the gas pipelines in the Southern region are proposed to be extended or completed for revival of the fertilizer units there besides development of other industries. Possibilities of providing the Gas pipeline connectivity to Madras Fertilisers Limited – Manali (MFL), Mangalore Chemicals & Fertilizers Limited, Mangalore (MCFL) and Southern Petrochemical Industries Corporation Limited , Tuticorin,(SPIC) were being explored, as they were closed due to earlier decisions, being Naphtha based units. Several meetings were held involving the Minister for Chemicals & Fertilisers Shri Ananth Kumar, the Minister for Petroleum & Natural Gas Shri Dharmendra Pradhan and the Minister forPower, Coal and New and Renewable Energy, Shri Piyush Goyal.
The draft National Chemical Policy which has been prepared after extensive consultation with stakeholders is being considered to be finalized. The draft Policy considers various imperatives in a comprehensive manner for the growth and sustainable development of the chemical sector in the country. The vision is to increase the share of the chemical sector in GDP substantially and devise strategies to increase investments, ensure availability of feedstock, promote R&D and increase competitiveness in the international market.
Meanwhile in the Budget 2014-15 announced on 10th July 2014, Government approved rationalization of customs duty structures which will increase the competitiveness of the domestic petrochemical industry. The major announcements which will boost investment by domestic industry are:
i) Customs duty reduction on reformate from 10% to 2.5% and other petrochemical feedstocks namely ethane and propane from 5% to 2.5 %.
ii) Customs duty reduction on building blocks namely ethylene, propylene, butadiene and ortho-xylene from 5% to 2.5%.
iii) To sustain the recent investment on Spandex Yarn (an import substitution product), the customs duty on raw materials used in its manufacturing has been reduced to 2.5% (from 5%)
As a part of development of various Petroleum, Chemicals and Petrochemicals Investments Regions (PCPIR)of the country anchor Companies and Industry bodies have been formed for each PCPIR, under the chairmanship of Secretary(C&PC), to monitor and expedite implementation of the PCPIRs already established in Andhra Pradesh, Gujarat, Odisha and Tamilnadu. .
Central Institute for Plastics Engineering and Technology (CIPET) has signed MoUs with various State Governments Departments to impart skill development / vocational training
At present the Government has accorded approval for setting up plastic parks in Madhya Pradesh, Odisha, Assam and Tamil Nadu. However, in view of demand from other State Governments i.e. Uttar Pradesh, Haryana, Kerala and Gujarat the Department has proposed to increase the number of plastic parks to be setup from 4 to 10.
Research & Development
In order to encourage the plastics industries under `Make-in India` campaign, initiative has been taken for "Standardization of Plastic Products". In a meeting in the Ministry on 11th November, 2014, it was proposed to pursue BIS to promote more standards by creating a dedicated Divisional Council on plastics and allied products.
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Empowering Women
Based on the results of Employment and Unemployment surveys(EUS) conducted by National Sample Survey Office(NSSO) during NSS 61st round (July 2004-June2005), NSS 66th round (July 2009-June2010) and NSS 68th round (July 2011-June 2012), Worker Population Ratio(WPR)* for females in usual status (ps+ss) is:
Period Worker Population Ratio( in percent for females in usual status (ps+ss)
2004-05 28.7%
2009-10 22.8%
2011-12 21.9%
*Worker Population Ratio: The Workers (employed persons) in the usual status (ps+ss) are obtained by considering the usual principal status and the subsidiary status together. The workers in the usual status (ps+ss) include (a) the persons who worked for a relatively long part of the 365 days preceding the date of survey and (b) the persons from among the remaining population who had worked at least for 30 days during the reference period of 365 days preceding the date of survey.
Worker Population Ratio: no. of employed persons *100
Total persons
As per information provided by the Ministry of Women and Child Development the Ministry had enacted various special laws relating to women for protection and empowerment of women such as the Protection of Women from Domestic Violence Act, 2005; Dowry Prohibition Act, 1961; Indecent Representation of Women (Prohibition) Act, 1986; and the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and Prohibition of Child Marriage Act, 2006(PCMA).
The Government implements several schemes/programmes such as Swadhar and Short Stay Home, Working Women Hostels, Support to Training and Employment Programme for Women (STEP), Rashtriya Mahila Kosh (RMK) for the welfare and empowerment of women.
The Government of regularly conducts awareness generation programmes and publicity campaigns on various laws relating to women through workshops, fairs, cultural programmes, seminars, training programmes etc. Continuous awareness creation among men and women in the society through workshops, seminars, street plays, Nari Ki Chaupals, Beti Janmotshav at the district level. In collaboration with Ministry of Panchayati Raj Special (Mahila) Gram Sabhas have also been conducted. Further, advertisements in the press and electronic media educating peoples about issues of domestic violence, Child Sex ratio, Child Marriage and Child abuse etc. also being taken up. Platforms such as the International Women’s Day and the National Girl Child Day are used to create awareness on issues related to women and to bring to the centre stage issues such as sex selective abortions and child marriage. Through Sabla programme of this Ministry, adolescent girls in the age group of 11 to 18 years are imparted training with regard to legal rights of women.
As per the information given by the Ministry of Labour and Employment, in order to provide employment to the unemployed youth including women, Government of India is implementing various public employment generation schemes like Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), Urban Livelihoods Mission (NULM), Prime Minister’s Employment Generation Programme (PMEGP) and National Rural Livelihood Mission (NRLM).
Government has set a target to skill 5 crore persons during 12th Five Year Plan keeping in view the requirements of various sectors. In order to improve the employability of youth, various Central Government Ministries run skill development schemes across different sectors. There are provisions in these schemes to give adequate coverage to women. According to the data compiled by National Skill Development Agency (NSDA), about 75.88 lakh persons were given skill development training in the year 2013-14 under these schemes.
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Tribals worse off, facing alienation, says high-level panel report
Govt suppresses report recommending radical reforms to improve their socio-economic status as it goes against Centre's rapid industrialisation agendaThe National Democratic Alliance government at the Centre has suppressed the report of the High-Level Committee on the Status of Tribals. The report presents a scathing analysis of how development activities and strategies in India have increased the socio-economic gulf between tribals and rest of the citizens of India and left the former worse off on many counts. The committee, headed by Professor Virginius Xaxa, has recommended several radical changes to the laws and regulations to prevent further land alienation of tribals and to give them greater control over their resources.
Several of the report's recommendations go against some of the changes the government is undertaking or contemplating to push for faster and easier industrialisation. The report, a comprehensive review of the socio-economic status of the 700-odd tribal communities of the country, has been kept under wraps since May 2014 when it was submitted to the government.
The high-level panel carried out a detailed analysis of the poor socio-economic status of the tribals in India, and noted, "Tribes are among the poorest and most marginalised sections of Indian society. Although numerically only about 8.6 per cent, they disproportionately represent the people living below the poverty line, are illiterate and suffer from extremely poor physical health."
Business Standard reviewed the report, running into more than 400 pages, which records how on parameters assessing income levels, education health and other development indices the condition of tribals has either worsened or improved at such low rates that the gulf between them and the rest of Indians has only grown as the country has developed. The authors recorded, "As a part of the nation-building process, tribal areas have witnessed large-scale development of industry, mining, infrastructure projects such as roads and railways, hydraulic projects such as dams and irrigation. These have been followed by processes of urbanisation as well. The overall impact of these on tribes has been often loss of livelihood, massive displacement and involuntary migration."
Tribals displaced
The report says that about 40 per cent of all people displaced in India due to development activity have been tribals (pegged at 24 million), even though they constitute less than 10 per cent of the total population. Only 21.16 per cent of these have been resettled (though most have not been rehabilitated). In a scathing comment on the development path successive governments have followed in tribal areas, the authors say, "What the State is actually pursuing in tribal areas - apart from North-East India - is assimilation rather than integration, contrary to what is claimed. A policy of integration would provide space for protections and safeguards for their distinct identity, as enshrined in the Constitution. However, these provisions are precisely what are under threat of erosion through the process of cultural domination and more importantly, the prevailing development paradigm."
The authors have also criticised the State-led development strategy, recording how protests against land alienation are met with large scale criminal charges against tribals. "Laws and rules that provide protection to tribes are being routinely manipulated and subverted to accommodate corporate interests. Tribal protests are being met with violence by the State's paramilitary forces and the private security staff of corporations involved," they say.
Besides Xaxa, the other authors of the report were K K Misra, Abhay Bang, Joseph Bara, Sunila Basant, Usha Ramanathan and Hrusikesh Panda, serving secretary of the tribal affairs ministry. They summarise in the report, "Tribal communities face disregard for their values and culture, breach of protective legislations, serious material and social deprivation, and aggressive resource alienation."
The panel recommends radical changes to the laws, regulations and rules to protect tribal communities from land alienation and to ensure their rights over resources are handed back and protected.
It has mooted that no tribal land should be alienated without the consent of the tribal gram sabha (village council). It has also recommended that mining in their land should be carried out by tribals themselves as has been done in some cases in Andhra Pradesh, through tribal cooperatives.
The authors noted, "It is essential that the whole process of displacement should be democratic and rights of tribal communities to say 'no' to acquisition of their land and to access and manage forests and other common property resources (CPRs), be recognised."
Asking for strict implementation of the new land law, Forest Rights Act and the strengthening of the Panchayat (Extension to Scheduled Areas) Act, the committee has noted how the regulations under these have been flouted by central and state agencies, including the highest echelons of the government, such as the Cabinet Committee on Infrastructure (in the previous United Progressive Alliance government). It has warned against diluting the provisions of the laws that require prior informed consent of the tribals. This runs contrary to the concerted push in the NDA government to do away with the need for consent of gram sabhas while acquiring forest lands and internal discussions on dilution of the new land acquisition law.
The committee while recommending greater, stronger and strict implementation of the Forest Rights Act has noted that rights of tribals over many of their common property resources outside the forest areas are not yet recognised. "Forest rights have been covered under the Forest Rights Act, but other CPRs such as government land and panchayat land has not been covered by any legislation. This needs to be rectified."
Contrary to the thinking in the current government, the panel has recommended that even government's acquisition of tribal land should be done with their prior consent. It has also warned that government acquisition of tribal land in order to hand over control to private entities through PPP mode works to only circumvent the laws and the spirit behind them. It has asked this be done away with.
The committee has recommended that the new land law should be amended to ensure that any exploitation of natural resources in Scheduled Areas also be carried out with the consent of the Gram Sabha. It has advised other changes to the law to give tribal communities greater resettlement and rehabilitation rights, controls and oversight over the entire mechanism of displacement.
It lists out a series of other changes to laws and regulations governing land and natural resources, such as the Coal Bearing Act, firming up the actual control of tribal communities over their resources through primary level democratic bodies and to plug loopholes and administrative backdoor routes that exploit tribals.
The high-level panel has asked for a radical change in the overall legal constitutional regime as well for tribal welfare. It has said, "Laws and policies enacted by the Parliament and state legislatures should not be automatically applied in the Fifth Schedule areas."
Powerful tribal councils
It has asked that the "Applicability (of laws on scheduled areas) should be made contingent on the discretion of the governor, who would determine its non-applicability or applicability or modifications/amendments on the advice of the Tribes Advisory Council and issue a Statement of Objectives and Reasons for any decision."
It has advised that in case this change in the legal structures is not tenable "the governor should be mandated to examine the implications of legislations and policies (particularly, though not exclusively, those pertaining to issues such as forests, land acquisition, conservation, mines and minerals, health and education) passed by Parliament or state legislatures on tribal welfare. The governor must also take the advice of the Tribes Advisory Council on the same."
In parallel, it has advised an overhauled structure and powers of the Tribes Advisory Councils to give them more teeth and make them work for welfare of these communities.
It has also noted that there are many areas where scheduled tribes form sizeable populations but the regions are not designated as scheduled areas in states such as West Bengal, Tamil Nadu, Karnataka and Goa. It has recommended that these immediately be classified as Scheduled Areas. It has also asked that backdoor routes - such as declaring regions as urban areas - to remove some regions from Scheduled Areas should be done away with.
The report also lays out an overhauled, expansive and detailed framework for providing better education, health and opportunities to tribal communities across the country
Advisory Group for Integrated Development of Power, Coal, and Renewable Energy Submits its Report
Report Covers Contemporary Issues and Challenges in Respect of the Ministries of Power, Coal, and Renewable Energy |
| Sh. Suresh P. Prabhu, Chairman of the Advisory Group ( now Union Minister for Railways) for Integrated Development of Power, Coal, and Renewable Energy has presented its final report to Sh. Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy here today. The Advisory Group was set up by the Government on 25th June, 2014. The Group was chaired by Shri Suresh Prabhu, Former Minister of Power, Government of India (now Railway Minister), and consists of Shri R.V. Shahi, (Former Power Secretary) as Member-Convenor, Shri Pratyush Sinha (Former Chief Vigilance Commissioner), Shri Anil Baijal (Former Home Secretary), Dr. Anil Khandelwal (Former Chairman, Bank of Baroda), Dr. K.K. Nohria (Former CEO, Crompton Greaves), Shri Partho Bhattacharya (Former CMD, Coal India), and Shri Vallabh Bhansali (Former CEO, ENAM) as Members. Starting from the First Meeting on June 27 - 28, 2014, altogether Twenty Four Meetings were held (the last Meeting on 24th December, 2014). Keeping in view the urgency in respect of some of the issues, the Advisory Group submitted two Interim Reports on 23rd August, 2014, and 7th September, 2014. The Advisory Group interacted with officials of Ministries of Power, Coal, New and Renewable Energy, Environment and Forest, Cabinet Secretariat, CEA, various Public Sector Companies, under these Ministries, officials of some of the State Governments, Consulting organizations like Mckinsey, Bain & Company, KPMG, Centre for Policy Research, World Bank, Association of Power Producers etc. to ascertain their views and suggestions. The Report covers contemporary issues and challenges in respect of the Ministries of Power, Coal, and Renewable Energy. In the Report, suggestions have been made for enhancement of coal production in short, medium and long terms. Improvements needed in Coal India and its subsidiaries including CMPDI have also been identified and appropriate actions have been recommended. It has been suggested that opening up of the coal sector may be necessary, to supplement in a significant way, the domestic production by Coal India and a few other Companies. The Group has also suggested the salient aspects of the Coal Block Auction Process, Coal Linkage Rationalization, Swapping of Coal Linkages, need for Urgent Action on Coal Linkages to Power Plants already Commissioned, and likely to be Commissioned by March, 2015, Railway Infrastructure from Coal Mines to main Railway System, to be developed through various options including JV Company on Infrastructure by CIL etc. Concerning Power Sector issues, on which recommendations have been made in the Report by the Advisory Group include Amendments to Electricity Act, Tariff Policy, Standard Bidding Documents (Case I and Case II), approach to and challenges associated with 24X7 Power Supply, Urgent need for Distribution Sector Reform with targeted actions including Privatization /PPP in Distribution, Enhanced role of and Improvements in working of CEA, Transmission constraints – short term and long term actions, enhancement of Thermal Power Capacity Addition, Advance actions for Coal Linkage and other inputs for Thirteenth Five Year Plan Projects, Need and Actions for Accelerating Hydro Power Projects, Role of POSOCO for a Congestion free Transmission and Market Development, Phasing out of old and inefficient Thermal Power Plants which consume excessive fuel etc. Recommendations on Amendments to Electricity Act include separation of Carriage and Content in the Distribution license, authorization to Central Government to adopt measures for incentivizing Renewable Energy generation, making Tariff Policy obligatory for Regulatory Commissions, New Coal based Generating Plants to also have obligation to set up Renewable Energy Generation Station as a percentage of the Conventional coal based Power Plant as specified by the Government, restricting the authority of the State Governments to issue directive to prevent Open Access, to provide options to Consumers to choose their Power Suppliers with the objective of facilitating competition in power supply, further strengthening of Penal provisions with a view to improving quality of service, and Grid discipline, establishment of regional Regulators in consultation with States at an appropriate time, mechanism for review of performance of Regulatory Commissions through Forum of Regulators etc. Renewable Energy, particularly Solar and Wind, require large scale capacity addition which will not only balance the skewed power sector profile, but will also lead to price parity with conventional power due to economy of scale. Green Transmission Corridors, Incentivizing Renewable Capacity Addition, Coal based Generating Companies to be obligated to also set up Renewable Power generation, Priority in purchase of Renewable Power by Distribution Utilities, Improving the functioning of Solar Corporation and IREDA, are some of the important recommendations in respect of Renewable Energy. Many of the amendments suggested in the Electricity Act also aim at encouraging and incentivizing Renewable Power development. It has been suggested that MNRE should get comprehensive studies conducted for more accurate estimates of Solar and Wind including Off-shore wind potentials, since the present estimates are grossly underestimated. |
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