Rashtriya Krishi Vikas Yojana

Pursuant to the resolution adopted on 29-05-2007 by the National Development Council (NDC), to reorient the current agricultural development strategies to meet the needs of the farmers and for fresh efforts by the Central and State Governments to rejuvenate the agricultural sector so as to achieve 4% annual growth during the 11^th Five Year Plan, a new State Plan Scheme of Additional Central Assistance (ACA) for agriculture and allied sectors, namely, Rashtriya Krishi Vikas Yojana (RKVY) was launched during 2007-08 with an envisaged outlay of Rs. 25,000 crore for the Plan period.

It requires the States to prepare District and State Agriculture Plans for creation of such infrastructure, which are essential to catalyse the existing production scenario for achieving higher production. Additional Central Assistance (ACA) is made available to the States as 100% grants. 

The RKVY Guidelines recognize and build on the need for convergence and integration of the various programmes implemented at District/State level into District Agriculture Plans (DAPs) and State Agriculture Plan (SAP). Each district is required to formulate a District Agriculture Plan by including the resources available from other existing schemes, District, State or Central Schemes such as Backward Region Grant Fund (BRGF), Swarnajayanti Gram Swarozgar Yojana (SGSY), National Rural Employment Guarantee Scheme (NREGS), Bharat Nirman and tied and untied grants from the Central and State Finance Commissions etc. The District Agriculture Plans are not to be the usual aggregation of the existing schemes but would aim at moving towards projecting the requirements for development of agriculture and allied sectors of the district. These plans present the vision for agriculture and allied sectors within the overall development perspective of the district. The District Agriculture Plans would reflect the financial requirement and the sources of financing the agriculture development plans in a comprehensive way. The DAP will include animal husbandry and fishery, minor irrigation projects, rural development works, agricultural marketing schemes and schemes for water harvesting and conservation, keeping in view the natural resources and technological possibilities in each district. Each State is further required to prepare a comprehensive State Agricultural Plan (SAP) by integrating the DAPs. The State will have to indicate resources that can flow from the State to the district.

During XII Plan, RKVY funding will be provided through three streams viz. production growth (35%), infrastructure & Assets and sub-schemes (20%). The remaining 10% will be is provisioned as flexi fund from which states can undertake either production growth or infrastructure & assets projects depending upon States needs & priorities.  Looking at the requirement of increasing investment, Government has recently done way with 35% requirement in production stream thus paving the way for 100% allocation in investments for infrastructure buildings & creation of assets.

The States have been provided flexibility and autonomy in the process of selection, planning, approval and execution of schemes to make investments in interventions as per their priorities and agro-climatic requirements so that the outcomes are as envisaged in the RKVY objectives.  The projects of the State Governments are approved by the State Level Sanctioning Committees (SLSCs) under the Chairmanship of Chief Secretary of the respective States.   The funds are routed through the State Agriculture Department, which is the nodal Department for the scheme. 

Presently, six sub-schemes are being implemented as sub-schemes under RKVY during 2014-15. These sub-schemes and their allocations are:-

i.      Bringing Green Revolution to Eastern Region: - This programme was initiated in 2010-11 targeting the improvement in the rice based cropping system of Assam, West Bengal, Orissa, Bihar, Jharkhand, Eastern Uttar Pradesh and Chhattisgarh. Allocation for this scheme in 2010-11 & 2011-12 was Rs. 400 crore each, which has been enhanced to Rs. 1000.00 crore in 2012-13 & 2013-14. The allocation for the year 2014-15 is Rs.1000.00 crore.

ii.      Initiative on Vegetable Clusters: - Growing demand for vegetables was proposed to be met by a robust increase in the productivity and market linkage. For the purpose, an efficient supply chain needed to be established, to provide quality vegetables at competitive prices. The allocation for this sub-scheme was Rs.300.00 crore each in 2011-12 & 2012-13. The allocation for the year 2013-14 was Rs. 200.00 crore and 2014-15 is Rs. 175.00 crore.

iii.     National Mission for Protein Supplements: - National Mission for Protein Supplements was launched with an allocation of Rs.300 crore during 2011-12 to take up activities to promote animal based protein production through livestock development, dairy farming, piggery, goat rearing and fisheries in selected blocks. During 2012-13 & 2013-14 an amount of Rs. 500 crore & Rs. 400.00 crore were allocated for 2014-15, Rs. 300.00 crore has been earmarked for this scheme.

iv.     Saffron Mission: - The Scheme was initiated in 2010-11 with an overall Government of India budgetary support of Rs.288.06 crore over four years. Allocation has been Rs. 39.44 crore in 2010-11, Rs.50.00 crore each in 2011-12 & 2012-13. The mission was meant to bring economic revival of J&K Saffron. Outlay for the year 2013-14 was Rs. 100.00 crore. An amount of Rs.100.00 crore is earmarked for 2014-15.

v.      Vidharbha Intensive Irrigation Development Programme: - The Scheme was initiated in  2012-13  which seeks to bring in more farming areas under protective irrigation. The allocation for the year 2012-13 & 2013-14 was Rs. 300.00 crore each.  For 2014-15 Rs. 150.00 crore has been allocated for VIIDP.

vi.   Crop Diversification: - The original Green Revolution States have the problem of stagnating yields and over-exploitation of water resources. The answer lies in crop diversification. An amount of Rs.500.00 Crore was allocated for 2013-2014 to the start a programme of crop diversification that would promote technological innovation and encourage farmers to choose crop alternatives. For 2014-15 Rs. 250.00 crore has been allocated for this scheme

Ministry of Shipping: Sailing to New Possibilities

Year Ender 2014/ Ministry of Shipping                                               Several new initiatives were taken by the Ministry of Shipping during the year 2014 including the launching of India – Myanmar Shipping Service, formulation of Sagarmala Project, delegation of power for registration of fishing boats to states, issuing one time general trade licence for Indian ships and simplification of procedures to determine light dues for container ships. The highlights of the achievements are as follows: India-Myanmar service (IMS) launched: Shipping service has been started between India (Chennai) and Myanmar (Yangon) in October, 2014. This service will boost the bilateral trade relations between the two countries by providing immense opportunities for manufacturers, Importers and Exporters in these countries. Special Economic Zone (SEZ) at Jawaharlal Nehru Port Trust (JNPT): Foundation stone has been laid for SEZ in JNPT. The project would cost in phase-l Rs. 4000 crore. Project planning and execution has commenced. The project has the potential of generating over 1.5 Lakh direct and indirect jobs. This will develop free trade warehousing zones, engineering goods sector, textile and other sectors. Sagarmala Project formulated: Sagarmala project has been formulated to promote port led development of hinterland along with integrated development of port connectivity through Road, Rail, Inland Waterways and Coastal Shipping. The project envisages developing India’s ports to levels comparable with the best ports across the globe in terms of infrastructure, efficiency and quality of service. Registration power delegated to States: The government has taken a decision to delegate the powers of registration, survey and certification of Indian fishing boats, irrespective of their size or length, to states and union territories. India fishing boats can now be registered at the ports or places in India as specified in the gazette notification. Merchant Shipping Act, 1958 amended: Merchant Shipping Act, 1958 has been amended recently to guarantee rights of Seafarers (Maritime Labour Convention) and to protect Marine Environment (Anti Fouling Convention). One time general trade licence for Indian ships: Ministry of Shipping has decided to issue life time licenses to Indian ships and any other ship charted by an Indian citizen or an Indian company instead of renewing such licenses every year. These licenses will now be issued with a life time fee. This will help the sea going Indian vessels as well as other vessels engaged in coastal trading as the process is decentralised and liberalised. Simplification of procedures to determine light dues for container ships: The Ministry of Shipping has adopted a new mechanism for collection of light dues for container ships. It has now simplified the process of collection of light dues for container vessels by adopting the unit of collection on TEU (Twenty feet Equivalent Unit) basis instead of net tonnage in respect of container ships. Further, SBI has now been accredited to collect the light dues through online banking. This will facilitate faster clearance of ships and reduce detention time of vessels for payment of light dues. Integrated National Waters Transportation Grid: An Integrated National Water Transportation Grid is proposed to be set up to develop 4503 km of National Waterways and establish effective connectivity of river terminals with road, rail and ports. An estimated 159 million tonnes of cargo will be diverted to Inland Waterways from road and rail with the completion of the project. Other major initiatives undertaken by the Ministry of Shipping include: ·         Trans loading Zone notified at Konica sands to overcome draft restrictions at Kolkata Port. ·         Outer Harbour Project at VOC Port, Tuticorin announced; to be established at an initial cost of Rs. 11,650 crores. ·         Feasibility studies in progress to set up dry ports at Wardha, Jalna and Belgaum. ·         New SPV to be formed; will focus on last mile Rail connectivity to ports. ·         New scheme to incentivize and promote modal shift of cargo from roads/rail to coastal route. ·         Green channel clearance system for coastal cargo in major ports. ·         Customs & Excise duties exempted on bunker fuels used by Indian Flag vessels transporting EXlM and empty containers to promote trans-shipment hubs in India. ·         Indian Shipping Company allowed to flag ships abroad. ·         E-payment of fees for all ship licensing services has been operationalised, with paperless transactions. ·         Procedures for grant of permission for India-Bangladesh protocol vessels electronically enabled. ·         15 projects of existing Ports awarded against the target of 26 (58% achievement); remaining projects to be awarded by March, 2015. ·         16 projects at Ports completed as against annual target of 19 (84% achievement); rest to be completed by March, 2015.

Shri Narendra Modi to Inaugurate 102nd Indian Science Congress 2015 Tomorrow

The 102nd session of Indian Science Congress at Mumbai University (Maharashtra) will commence from tomorrow (3rd January, 2015) after its formal inauguration by Prime Minister Shri Narendra Modi. The 05 day event will see deliberations and presentation of papers by the Scientific fraternity from across the globe. Evidently this is 45 years after that the Science Congress is returning to Mumbai. Hence the emphasis will be on showcasing Mumbai as a science city as well besides being the financial capital of India”. Mumbai has world renowned institutes like Tata Institute of Fundamental Research, Bhabha Atomic research Centre, Indian Institute of Technology, Tata Memorial Centre among others . All these institutes are actively participating in the Science Congress. There are now fourteen sections namely Agriculture and Forestry Sciences, Animal, Veterinary and Fishery Sciences, Anthropological and Behavioral Sciences (including Archaeology and Psychology and Educational Sciences), Chemical Sciences, Earth System Sciences, Engineering Sciences, Environmental Sciences, Information and Communication Science and Technology (including Computer Sciences), Material Sciences, Mathematical Sciences (including Statistics), Medical Sciences (including Physiology), New Biology (including Biochemistry, Biophysics and Molecular Biology and Biotechnology), Physical Sciences, Plant Sciences and one Committee Science and Society. The Congress Session will bring together Eminent Scientists, Research Scholars to popularize science and foster a scientific temperament among the Scientists and Researchers. The theme for 102nd ISC is"Science and Technology for Human Development”. It is expected that the plenary sessions, symposia, sessions in different sections will be very enriching and fruitful. Several symposia on relevant themes - Women’s Science Congress, Children Science Congress, Science Exhibition, etc will be organized during the session. More than 12,000 delegates from all over the country are expected to participate in the ISC 2015. Few Nobel Laureates, a number of eminent scientists and Resource Persons from India and abroad are being invited to participate in the Science Congress. Union Minister of Science & Technology and Earth Sciences Dr.Harshvardhan, Union Human Resource Minister, Ms. Smriti Irani. Chief Minister of Maharashtra Shri Devenra Fadanwis and Governor of Maharashtra Shri Vidyasagar Rao will be the other dignitaries to become part of this moment. The Five days the ISC 29015 will witness Public, Plenary, Special Sessions Sectional Programmes. Under it Panel Discussion on subjects like Role of Science, Technology And Innovation in Ensuring Sustainable Inclusive Development will take place. On day 02 Children Science Congress and Rural Innovator’s exhibition along with Science Communicators Meet will be inaugurated. The day 03 will witness Inauguration of Women’s Science Congress and its different meetings associated by the culmination of Science Communicators meet. The valedictory sessions for the Women’s Science Congress and the Children Science will be the events for Day 4th. Day 05 will see the General Body Meeting of ISCA and the closing function for the 102nd Indian Science Congress. `The Science and Technology for Women Development`. Women Science congress, a part of 102nd Indian Science Congress, will be inaugurated by the Hon`ble Minister DST Dr. Harshavardhana on 4th January in kalina Campus and chief guest. Dr. Shashi Ahuja Advisor DST will be the guest of honour, The Whole session is stressed to showcase the contribution of women in Science and Technology and renowned women Scientist will be delivering the lectures in this session. Ten key note speakers will share their research in the these two days with the audience which include prof. Rohini Godbole from center for high energy Physics, Bangluru who has worked on Higggs particles along with the Nobel Lauriat. The Indian diplomat appealed to the society for the greater involvement of women in the social sphere of life. "No society can claim to be a part of modern civilisation unless it provides an enabling environment for empowering women and give them equal opportunity. Science and Technology for inclusive innovation, Role of Women, it would arrive at meaningful conclusion which could provide appropraite knowledge for human progress. A large science exhibition is being organized at the MMRDA Grounds in nearby Bandra-Kurla Complex, which will showcase various science & technology innovations by Indian firms and organizations. ISRO and DRDO will also be participating in this mega exhibition. The Congress sessions will bring together eminent scientists, research scholars to popularize science and foster a scientific temperament. The sessions will cover a wide variety of topics like agriculture and forestry, veterinary science, earth science, environment, engineering, information & communication, computer sciences, mathematics, medicine, biology, physics and plant sciences among others. Other themes of interest include –science & technology in SAARC countries, biodiversity conservation, space application, GM crops and the use of modern biotechnology in agriculture , clean energy systems for the future. One of the plenary session will be dedicated to ‘innovation and Make In India’ initiative. A session on ‘ancient Indian sciences’ will be attended by Union Minister for Environment, Prakash Javadekar. 2001 Nobel Prize winner in Medicine Paul Nurse from London, 2002 Chemistry Nobel Prize winner Kurt Wuthrich from Switzerland, 2009 Chemistry Nobel laureate Ada E Yonath from Israel, 2013 Nobel Prize winner in Medicine, Randy Schekman of University of California, Berkeley are notable among the celebrity guests. 2014 Nobel Peace Prize winner Kailash Satyarthi and 2006 Nobel Peace Prize winner Muhammad Yunus of Bangladesh will also be present. Dr. Shailesh Nayak, Secretary M/o Earth Sciences and currently Chairman ISRO, 2013 Nobel Prize winner in Medicine, Randy Schekman of University of California, Berkeley, DG, Indian Council of Medical Research, V M Katoch, eminent nuclear scientist Anil Kakodkar are some of the other big names attending the ISC 2015. University of Mumbai has made arrangements to web-cast some of the key sessions of the Indian Science Congress. A daily web-bulletin covering various aspects of the Congress will be compiled and published by the students of University’s Mass Communication Department.

Focus to shift from ‘sick care’ to ‘healthcare’

Shri J P Nadda at AAPI Health Summit: Focus to shift from ‘sick care’ to ‘healthcare’ “Promotive and preventive health to empower everyone to become agent of positive health”

The Government plans to shift the focus from ‘sick care’ to ‘healthcare’ and reduce the need for hospitalization/ tertiary care. Focus will now be on comprehensive and holistic Primary Health Care including preventive and promotive health to improve health and reduce healthcare expenditure. The idea is to empower every person to be an agent of positive health, at individual and community level, and help create a “Social Movement for Health”. Union Minister for Health and Family Welfare, Shri J P Nadda stated this during his keynote address at the ‘Global Health Summit: Access and Affordable Healthcare for People of India’, organised by the American Association of Physicians of Indian Origin (AAPI), at Mumbai today. Addressing the gathering, the Union Health Minister said that while many measures have been taken in the health sector to strengthen the infrastructure in the states under the National Health Mission (NHM), many challenges still need to be effectively addressed. The Minister stated that providing access to quality healthcare at affordable rates remains a challenge. Equity, access and affordability of quality health care to all, particularly to the poorest, is a challenge that the government is acutely seized of, he said. He added that meeting pocket expenditure on healthcare is a priority for the government. Another matter of concern is the shortage of manpower in terms of doctors, nurses and para-medical staff to enable effective delivery of healthcare services, particularly to the rural, remote and inaccessible areas of the country where the need for healthcare is felt the most. The burden on non-communicable diseases, also known as lifestyle diseases, when the disease burden on account of communicable diseases and MCH care has not been adequately addressed has further stressed the healthcare system in the country, the Minister said. Within this context, the Minister stated that the involvement and contribution of the doctors associated with AAPI is not only welcome but much needed. Shri J P Nadda called upon the members of AAPI to come every year and devote at least a week to 10 days in the service of the country in remote and inaccessible areas. He said that AAPI as an organisation should also explore the possibility of tele-education on the latest advancements in the medical field. AAPI can consider entering into MoUs in healthcare with different national agencies and share its vast and useful knowledge with the country. Additionally, they can explore how they can contribute to the healthcare of underserved areas such as slums where the hygiene levels are very poor and healthcare is a critical need. He said that the ministry will be happy to support in whatever way required in this initiative. The Minister stated that the draft of the newly formulated National Health Policy has been placed in public domain recently (www.mohfw.nic.in). He welcomed inputs from health professionals from across the world to enrich the Policy. The Minister stated that “There is a need to evolve innovative and cost effective solutions to achieve the aspirations of our billion people. It is our responsibility to ponder upon such ways and means to improve quality, equity, efficiency and accountability of healthcare systems for the large and common benefit of our people. I urge you to share the global best practices, technologies and cutting edge research that can be suited to our context.” He further stated that the Health Ministry would be happy to partner with knowledge management agencies including public health institutions for building capacity in the healthcare sector.

PM's remarks at dedication of ICICI's Digital Village to the Nation

Banks should create one lakh Swachhta entrepreneurs within a year Banks can become agents of social transformation The Prime Minister, Shri Narendra Modi today called upon banks to create one lakh "Swachhta Entrepreneurs" within a year, to make the "Swachh Bharat" vision a sustainable reality. He was speaking in Mumbai on the occasion of the dedication of ICICI's Digital Village to the Nation. The function also marked 60 years of the ICICI group. Shri Narendra Modi complimented the MD and CEO of ICICI Bank, Mrs. Chanda Kochhar for the way she had institutionalized the initiative of Swachh Bharat within her organization. Noting that the experience of the ICICI group over the last sixty years would prove immensely useful to India's economic development in the years ahead, the Prime Minister urged ICICI Bank to prepare a vision of tangible goals which they would achieve by the time they celebrated the 75th anniversary of ICICI group. As an intermediate target, he also asked the Bank to think of what goals they could achieve by 2022, the 75th anniversary of India's independence. The Prime Minister urged ICICI Bank to adopt a social charter of such tangible goals. He said many times one institution takes the lead and others follow, generating momentum towards a good cause. The Prime Minister spoke of Akodara Village in Gujarat's Sabarkantha district, chosen by ICICI Bank as a digital village. He said Akodara had a cattle hostel, which had contributed immensely to improving incomes and cleanliness in the village. He said more and more villages across India would adopt this model soon. The Prime Minister said rural development could emerge as a powerhouse of economic development for the country. Congratulating ICICI Bank and the people of Akodara for creating a cashless economic system. He said banks in India should actually compete for achieving maximum cashless transactions, as this would be the best solution to the problem of black money. The Prime Minister said people in India had a propensity towards saving, but this was targeted towards gold. The challenge for banks was to assure people that a bank account would ensure easy access to their savings whenever required. He said if banks were able to do so, they could emerge as agents of social transformation. Earlier, Akodara village of Sabarkantha District in Gujarat was formally dedicated as a digital village by the Prime Minister. Governor of Maharashtra Shri Vidyasagar Rao, Chief Minister of Maharashtra Shri Devendra Fadnavis, Finance Minister Shri Arun Jaitley, and MD & CEO of ICICI Bank Mrs. Chanda Kochhar were present on the occasion.

NITI Aayog: Objectives and Composition

The Government has replaced Planning Commission with a new institution named NITI Aayog (National Institution for Transforming India). A cabinet Resolution issued today gave details of the new institutions. The institutional framework of government has developed and matured over the years.   This has allowed the development of domain expertise which allows us the chance to increase the specificity of functions given to institutions.  Specific to the planning process, there is a need to separate as well as energize the distinct ‘process’ of governance from the ‘strategy’ of governance. In the context of governance structures, the changed requirements of our country, point to the need for setting up an institution that serves as a Think Tank of the government – a directional and policy dynamo.  The proposed institution has to provide governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of policy.  This includes matters of national and international import on the economic front, dissemination of best practices from within the country as well as from other nations, the infusion of new policy ideas and specific issue-based support.  The institution has to be able to respond to the changing and more integrated world that India is part of. An important evolutionary change from the past will be replacing a centre-to-state one-way flow of policy by a genuine and continuing partnership with the states.   The institution must have the necessary resources, knowledge, skills and, ability to act with speed to provide the strategic policy vision for the government as well as deal with contingent issues. Perhaps most importantly, the institution must adhere to the  tenet that while incorporating positive influences from the world, no single model can be transplanted  from outside into the Indian scenario. We need to find our own strategy for growth.  The new institution has to zero in on what will work in and for India.   It will be a Bharatiya approach to development. The institution to give life to these aspirations is the NITI Aayog (National Institution for Transforming India).  This is being proposed after extensive consultation across the spectrum of stakeholders including inter alia state governments, domain experts and relevant institutions.  The NITI Aayog will work towards the following objectives: To evolve a shared vision of national development priorities, sectors and strategies with the active involvement of States in the light of national objectives.    The vision of the NITI Aayog will then provide a framework ‘national agenda’ for the Prime Minister and the Chief Ministers to provide impetus to. To foster cooperative federalism through structured support initiatives and mechanisms with the States on a continuous basis, recognizing that strong States make a strong nation. To develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government. To ensure, on areas that are specifically referred to it, that the interests of national security are incorporated in economic strategy and policy. To pay special attention to the sections of our society that may be at risk of not benefitting adequately from economic progress.  To design strategic and long term policy and programme frameworks and initiatives, and monitor their progress and their efficacy.  The lessons learnt through monitoring and feedback will be used for making innovative improvements, including necessary mid-course corrections. To provide advice and encourage partnerships between key stakeholders and national and international like-minded Think Tanks, as well as educational and policy research institutions. To create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and other partners. To offer a platform for resolution of inter-sectoral and inter-departmental issues in order to accelerate the implementation of the development agenda. To maintain a state-of-the-art Resource Centre, be a repository of research on good governance and best practices in sustainable and equitable development as well as help their dissemination to stake-holders. To actively monitor and evaluate the implementation of programmes and initiatives, including the identification of the needed resources so as to strengthen the probability of success and scope of delivery. To focus on technology upgradation and capacity building for implementation of programmes and initiatives. To undertake other activities as may be necessary in order to further the execution of the national development agenda, and the objectives mentioned above. The NITI Aayog will comprise the following: Prime Minister of India as the Chairperson Governing Council comprising the Chief Ministers of all the States and Lt. Governors of Union Territories Regional Councils will be formed to address specific issues and contingencies impacting more than one state or a region.  These will be formed for a specified tenure.  The Regional Councils will be convened by the Prime Minister and will comprise of the Chief Ministers of States and Lt. Governors of Union Territories in the region.  These will be chaired by the  Chairperson of the NITI Aayog or his nominee. Experts, specialists and practitioners with relevant domain knowledge as special invitees nominated by the Prime Minister The full-time organizational framework will comprise of, in addition to the Prime Minister as the Chairperson:                                                                i.      Vice-Chairperson: To be appointed by the Prime Minister                                                              ii.      Members: Full-time                                                              iii.      Part-time members: Maximum of 2 from leading universities research organizations and other relevant institutions in an ex-officio capacity.  Part time members will be on a rotational basis.                                                            iv.      Ex Officio members: Maximum of 4 members of the Union Council of Ministers to be nominated by the Prime Minister.                                                               v.      Chief Executive Officer : To be appointed by the Prime Minister for a fixed tenure, in the rank of Secretary to the Government of India.                                                            vi.      Secretariat as deemed necessary.

Major FDI Policy Changes

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. FDI policy is reviewed on an ongoing basis, with a view to making it more investor friendly.  FDI helps in the economic growth of the country by supplementing the domestic capital, bringing technology transfers, global best practices leading to increased manufacturing and productive capacity. Overall growth in different sectors of economy results in job creation.  Following are the major FDI policy changes made during the year: Defence: The Government vide Press Note 7  /2014 dated 26th August, 2014 has allowed FDI upto 49% on approval route in Defence sector with certain conditions e.g., the applicant company seeking FIPB approval be an Indian company owned and controlled by resident Indian citizens. Above 49% the proposal will be routed to Cabinet Committee on Security on a case to case basis, wherever it is likely to result in access to modern and state-of-art technology in the country. FPI investment has been allowed to be made in the Defence sector upto 24% on automatic route.  A number of conditions have been relaxed /removed making the sector more investor friendly. The proposal is expected to result in technology transfer which would help in increasing the production base and providing an impetus to manufacturing sector and job creation in India. The measure is expected to not only reduce the heavy burden of imports and conserve foreign exchange reserves but also make domestic manufacturing an integral part of GDP growth of the country. Railways: The Govt. (vide PN 8/2014 dated 26th August, 2014)  has allowed 100% private and FDI investment under automatic route in Rail infrastructure (other than construction, operation and maintenance of (i) Suburban corridor projects through PPP, (ii) High speed train projects, (iii) Dedicated freight lines, (iv) Rolling stock including train sets, and locomotives/coaches manufacturing and maintenance facilities, (v) Railway Electrification, (vi) Signaling systems, (vii) Freight terminals, (viii) Passenger terminals, (ix) Infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivities to main railway line and (x) Mass Rapid Transport Systems ) subject to meeting sectoral laws and with the condition that FDI beyond 49% in sensitive areas from security point of view will be approved by the Cabinet Committee on Security on a case to case basis. The proposal for amendments will facilitate private investment including FDI inflows into infrastructure projects including elevated rail corridor project in Mumbai, High Speed Train project, port connectivity projects, dedicated freight corridors, logistic parks, station development, locomotive manufacturing units and power plants, through public-private partnerships which would not only bring in the much needed capital but also technology and global best practices. Construction Development: The Government has issued the Press Note No. 10 on 3rd December, 2014 amending the FDI policy regarding Construction Development Sector.   Amended policy includes easing of area restriction norms, reduction of minimum capitalization and easy exit from project.   Further, in order to give boost to low cost affordable housing, it has been provided that conditions of area restriction and minimum capitalization will not apply to cases committing 30% of the project cost towards affordable housing. FDI INFLOWS Total FDI into India, since April, 2000, including equity inflows, reinvested earnings and other capital, is US $ 345.29 billion (April, 2000-September, 2014). During the calendar year 2014 (i.e. during January- September, 2014), FDI equity inflows of US $ 22.43 billion have been received. This represents increase of 24% over the FDI equity inflows of US $ 18.07 Billion received during the corresponding period (January- September 2013) of the previous calendar year (2013). During the financial year 2014-15 (i.e. April- September, 2014), FDI equity inflows of US $ 14.69 billion have been received. This represents an increase of 17% over the FDI equity inflows of US$ 12.59 billion received during the corresponding period (April 2013- September, 2013) of the previous financial year (2013-14).

Year End Review-