All urban poor now to be assisted with livelihood opportunities

All urban poor now to be assisted with livelihood opportunities

NULM extended to 3,250 more statutory urban local bodies from the present 790

States given flexibility in implementation

681 more towns covered in Tamil Nadu, UP-566, MP-310, Maharashtra-213, Karnataka-186, Gujarat- 160, Rajasthan-145, Chattisgarh-140

To benefit urban poor in 130 towns in the North-East

Renamed as DAY-NULM

Government has extended the National Urban Livelihood Mission (NULM) to all the 4,041 statutory urban local bodies in the country. NULM is now renamed as ‘Deen Dayal Antyodaya Yojana-NULM’ and in Hindi as ‘Deen Dayal Antyodaya Yojana-Rashtriya Shahri Aajeevika Mission’. This mission seeks to enhance the employment opportunities and incomes of the urban poor through skill development and training, setting up of individual and group micro-enterprises, formation of Self-Help Groups, building shelters for homeless, supporting street vendors in creating infrastructure, innovative support to rag pickers, differently abled etc.

NULM introduced in 2013 is being presently implemented in only 791 cities across the country covering all district headquarters and cities and towns with a population of above one lakh each. Now all the States and Union Territories have been empowered to implement DAY-NULM in all the remaining 3,250 statutory urban local bodies even if they have a population of less than one lakh each.

In Tamil Nadu, the highest number of 681 towns will now be covered under DAY-NULM while at present only 40 cities are implementing this pro-poor scheme. This is followed by UP-566/82, Madhya Pradesh-310/54, Maharashtra-213/53, Karnataka-186/34, Gujarat-160/35, Rajasthan-145/40, Chattisgarh-140/28, Punjab-118/25, Bihar-97/42, Andhra Pradesh and Telangana-78/47, Odisha-74/33, West Bengal-66/63, Jammu & Kashmir-64/22, Uttarakhand-58/16, Haryana-58/22, Himachal Pradesh-46/10, Kerala-45/14 and in Goa, 12 new towns will be covered as against only two towns at present.

In the North-Eastern states, 130 new towns will be included for the implementation of DAY-NULM as against 88 towns at present. Among the Union Territories, one more town will be covered in Pudcherry.

In all, DAY-NULM will benefit urban poor in 1,505 new towns in the North, 991 towns in the South, 375 in the West, 249 in the East and 130 more towns in the North-East.

In another modification of the existing scheme of NULM where in the implementing cities are required to implement all the components of the scheme, new towns to be covered can implement any one are a combination of the components.

Under ‘Employment through Skill Training and Placement’ component of DAY-NULM, an expenditure of Rs.15,000 per person is allowed on training of urban poor which is Rs.18,000 in North-East and J&K. Under revised norms, cost of training has been increased by 5%.

Under ‘Social Mobilisation and Institution Development’ through formation of Self-Help Groups for training members and hand holding, an initial support of Rs.10,000 is given for each group. For Registered Area Level Federations of such groups, assistance of Rs.50,000 is provided.

Urban poor are also assisted with interest subsidy of 5%-7% for setting up individual micr-enterprises with a loan of up to Rs.2 lakh and for group enterprises with a loan limit of up to Rs.10 lakhs.

Cost of construction of shelters for urban homeless is fully funded under the Scheme with each such shelter accommodating at least 50 homeless is funded under DAY-NULM.

Other means of helping the urban poor is through setting up infrastructure for street vendors and innovative and special projects for rag pickers, differently abled etc.

National Capital goods policy unveiled

National Capital goods policy unveiled

Anant Geete says policy a gateway to endless opportunities for Capital goods; terms it as an initiative spearheaded by department of Heavy Industry

The Government has unveiled the National Capital Goods Policy. Addressing a seminar on the subject of ‘Capital Goods and Engineering: Realising the Make in India Vision, in Mumbai today, the Union Minister of Heavy Industry and Public Enterprises Shri Anant Ganga Ram Geete said that realising the strategic importance of Capital Goods and the pivotal role played by it  in the overall manufacturing, as the pillar of strength to the vision of “Make in India”, the government has now come out with this policy.  He also said this as an endeavour to drive growth for Capital Goods sector, as well  as a  part of Government’s commitment to help realise this vision of “Building India as the World class hub for Capital Goods”.  The Minister added  that this is a  first time ever policy of this sector, with a clear objective of increasing production of capital goods from ~Rs. 230,000 Cr in 2014-15 to Rs. 750,000 Cr in 2025 and raising direct and indirect employment from the current 8.4 million to ~30 million. The policy envisages increasing exports from the current 27% to 40% of production while increasing share of domestic production in India's demand from 60% to 80%, thus making India a net exporter of capital goods. The policy also aims to facilitate improvement in technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSMEs.

“National Capital Goods Policy” is a unique Government led- industry driven manoeuvre for scripting a new growth narrative in the history of industrial development. The Department of Heavy Industry had set up a Joint Taskforce with Confederation of Indian industry (CII) as an attempt to ensure that the formulation of the Capital Goods Policy is done in the most democratic manner and the recommendations would carve out a roadmap for Capital Goods sector to become  a part of global value chains apart from mere supply chains. The policy has been framed after extensive stakeholders’ consultations with industry, academia, different ministries etc.

The aim of the policy is to create game changing strategies for the capital goods sector. Some of the key issues addressed include Availability of Finance, Raw Material, Innovation and Technology, Productivity, Quality and Environment Friendly Manufacturing Practices, Promoting Exports and Creating Domestic Demand.

Key policy recommendations include strengthening the existing scheme of the DHI on enhancement of competitiveness of Capital Goods Sector by increasing budgetary allocation for increasing scope to further boost global competitiveness in various sub sectors of CG. The aim is to enhance the export of Indian made capital goods through  a 'Heavy Industry Export & Market Development Assistance Scheme (HIEMDA)'. Launching a Technology Development Fund , upgrading the existing and setting up new testing & certification facilities, making standards mandatory in order to reduce sub-standard machine imports are other measures envisaged. It also aims to provide opportunity to local manufacturing units by utilising their installed capacity and launching scheme of skill development for CG sector.

How India retires

 Much is made of India’s demographic dividend of an overwhelming proportion of youth in its population, but rarely do people talk about its senior citizens. Although the percentage share of people aged above 60 years is only 8.6%, in absolute terms, they constitute more than 10.4 crore persons. That’s almost three times the total population of Canada.

For many of them, crossing 60 years doesn’t automatically guarantee retirement from work. Census 2011 data shows that for every five persons aged above 60 years, more than two are still working. There is a significant gender gap on this count. For males, the ratio is more than three in five, while it is a little over one in five for females. There is also a sizeable difference in the status of senior citizens in rural and urban areas. In rural areas, 47% of those aged above 60 years are still working. The share drops sharply to 28% in urban areas.

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To be sure, the share of working population declines with higher age groups. In addition to the 60-plus category, the Census gives data on 60-69, 70-79 and 80-plus categories. As expected, the 60-69 age group has the highest share. However, what is surprising, and perhaps worrying as well, is the fact that more than one in five persons aged above 80 years is still working to make ends meet. Among men, the ratio is more than one in three.

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To arrive at the estimate of working population for a given age group, the categories of main workers and marginal workers have been added together. According to the definition used in the census, main workers are those who have worked for majority of the year (more than six months), while marginal workers are those who worked for less than six months in a given year. The difference is not just on account of willingness to work, it is also suggestive of the fact that those in the marginal category might not be able to find enough work to qualify as main workers. The share of those seeking work among total marginal workers in the country was more than 46%. For persons aged 60 years and above, this figure was more than 27%.

What about those who are not working?

Among non-workers, the Census lists seven different categories: students, household duties, dependants, pensioners, rentiers, beggars and vagrants, and others. Among these, pensioners and rentiers can be taken as those having some sort of economic security when they retire, while those who fall under the dependant and household duties category can be taken as ones without any post-retirement economic security.

At the all-India level, more than two in every five persons aged above 60 years belong to the dependants and household workers category. These ratios vary drastically across gender: less than one in five for men, and around two in three for women. Urban areas have a slightly higher prevalence of dependency than rural ones. The ratio increases with an increase in age as shown in the chart below.

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Around one in 10 persons aged 60 years and above in India have a pension or rent income. Once again, urban senior folk are better off. Those receiving a pension or rent incomes constitute more than 17% of the population aged 60 years and above. The figure is less than 9% in rural areas. Among those who have post-retirement incomes, the gender gap is much higher in urban areas than rural areas. The former has a gap of more than 15 percentage points, while it is just over one percentage point for the latter.

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To be sure, these categories tell us little about the actual earnings of our senior citizens. It also does not say whether they stay with their families or alone, which can have a significant impact on expenses. According to a survey conducted by the National Sample Survey Organisation (NSSO) in 2004, less than 20% of aged men and around half of aged women were living with their children.

While a lot more data is required to ascertain how economically secure our senior citizens are, it can be safely said that very few among them have access to a remunerative retired life. Also, increasing incidence of informal employment, which carries little in terms of social security or retirement benefits, would not contribute towards a future where retirement would be something to look forward to

Securing India’s energy interests in West Asia

The commodity price crash means New Delhi currently holds the advantage

Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan’s just-concluded trip to India has served as a reminder of two facts. The first is the criticality of the Arab states to Indian interests. The second is the oddity of New Delhi nevertheless lacking a coherent policy towards West Asia—something it has begun to rectify of late, albeit in patchwork fashion—similar to its Look East policy.

Energy security, of course, is a key ingredient of India’s interest in West Asia. It is dependent on imports for 80% of its oil needs, of which roughly 55% is sourced from the Persian Gulf region. The ratio could decline slowly as New Delhi diversifies with an increased focus on African producers. But the rate at which India’s energy demand is growing—it is currently the world’s fourth biggest oil consumer with import dependence projected to increase to 90% by 2031—offsets this in absolute terms.

The current glut in the oil market and plunge in prices means it is, for the time being, a buyer’s market. That gives New Delhi an opportunity to dictate terms as it shops around. Indian refiners have already begun to take advantage of the price drop to switch long-term contracts with West Asian suppliers for African oil spot purchases. And some of the former like Saudi Arabia—looking to enhance its share of the growing Indian energy market as it drives a supplier price war to shake loose more marginal producers—have responded. For instance, Riyadh has reportedly been in talks to ship crude to India on its own tankers, saving on shipping costs and passing on the benefits to Indian refiners.

New Delhi must drive home its advantage. This goes beyond a buyer-seller paradigm. By some estimates, India’s own reserves remain 60-70% under-explored. Various competing demands on the public exchequer mean that the required investment to make headway here cannot—and should not—come entirely from the government. West Asian oil companies have typically steered away from upstream investments globally, but this is by no means uniform. Abu Dhabi, for one, has entered into a strategic partnership in energy with New Delhi, including upstream and downstream investments. Qatar is pivoting towards investing internationally as well.

Given the relationship New Delhi has forged with countries in the region over the past few years—India entered into an extraordinary defence agreement with Qatar in 2008, committing to protect its assets and interests from external threats, has a security understanding and growing economic ties with Saudi Arabia and strong links with Bahrain—they could be viable sources of investment in India’s energy sector. But for this, New Delhi’s oil and gas exploration policy is important. Its shift towards a revenue-sharing model from a production-sharing one—the latter has admittedly had its share of problems—could disincentivize private investment if not calibrated carefully.

India’s increasingly multidimensional relations with Gulf Cooperation Council (GCC) states buttress these energy security efforts. The Indian diaspora in the Arab states is seven million strong—a valuable connection and responsible for some $40 billion in remittances annually. And the possibilities for investment go beyond the energy sector. The UAE has agreed to invest $75 billion in Indian infrastructure, Bahrain is looking to invest in financial services and high value-added manufacturing among other areas, and countries like Kuwait have sovereign funds ripe for targeting.

Security and geopolitical considerations are, naturally, threaded through these economic engagements. Since Atal Bihari Vajpayee revitalized ties with GCC states, New Delhi has shown an admirable pragmatism, juggling its relationships with competing power centres like Riyadh and Tehran—even in light of the witches’ cauldron of proxy struggles and sectarian conflicts that is currently West Asia. This is the hallmark of mature diplomacy. The pay-off has been visible, from Saudi Arabia extraditing terror suspects to India to Qatari aid when Indian nationals have been endangered by the Islamic State and in Afghanistan.

Factor in India’s potential role as a maritime net security provider for the Gulf states, reliant as they are on energy shipping through the Indian Ocean Region. According to the Indian Navy’s Maritime Security Strategy released last year, the Persian Gulf is a primary area of interest. The possibilities for cooperation are significant.

In the period to 2040, India will overtake China as the largest source of rising demand for oil. The time to begin securing its interests in West Asia is now when it holds the advantage.

Should India pursue closer relations with the Arab states?

Mysuru topped the rankings of India’s 10 cleanest cities

Mysuru topped the rankings of India’s 10 cleanest cities released by the government on Monday.

Chandigarh, Tiruchirappalli in Tamil Nadu, the New Delhi Municipal Council area of the national capital, Visakhapatnam in Andhra Pradesh, Surat and Rajkot in Gujarat, Gangtok in Sikkim, and Pimpri-Chinchwad and Greater Mumbai in Maharashtra followed.

The rankings are aimed at giving a push to the Swachh Bharat Mission. They are based on the ‘Swachh Survekshan’ survey conducted by the Quality Council of India, which is associated with the urban development ministry.

The survey was conducted in 73 cities with a population of over 1 million, and based on parameters laid down by Swachh Bharat such as access to sanitation facilities, strategy to tackle open defecation and solid waste management.

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“The Swachh Bharat Mission was launched in October 2014. It is now time for the government to have an account of the difference being made on the ground. The objective of the survey is not only to access ground development but also to capture the efforts made by the respective cities which will be reflective in their ranking,” said an official in the ministry of urban development, who did not want to be named.

The Swachh Bharat Mission was launched to ensure cleanliness and to rid the country of open defecation by 2019, but has failed to garner the kind of public interest the government envisaged.

The cities were also ranked on efforts to spread awareness and influence behaviour change, door-to-door collection of waste, and transportation, processing and disposal of solid waste. Provision of public as well as community toilets and construction of individual household toilets were also key factors.

A similar survey conducted in 2014 did not take into account the parameters laid down for the Swachh Bharat Mission.

Though 75 cities were initially chosen for the survey, Kolkata and Noida opted out for lack of preparedness.

“Through a participatory survey, these rankings will bring competition into the mission. It will also help the government access the good practices being followed by certain urban local bodies and show which cities are lagging behind,” the official cited above said.

Enabling direct transfers through JAM

Each element—Jan Dhan Yojana, Aadhaar and mobile—needs some significant fixes to work effectively 

The JAM Trinity (Jan Dhan Yojana + Aadhaar number + mobile number), a lively acronym to refocus the government’s programme of Direct Benefits Transfer (DBT), was spelt out in the last Economic Survey. While the DBT has been operational since 2013, the trinity makes it easier to pinpoint the remaining barriers as each element in the JAM needs some significant fixes to work effectively. By March 2015, more than 227 million beneficiaries were part of the programme under 36 schemes, with the highest enrolments under DBTL (DBT for liquefied petroleum gas subsidy ). Yet, the DBT programme has a long way to go to become a universal national scheme. This month’s budget can fix some of the stumbling blocks, but there are others that need coordination across multiple departments, regulators and the attention of Parliament.
The Pradhan Mantri Jan Dhan Yojana (PMJDY), the J of the trinity, has succeeded in changing the financial inclusion landscape since it was launched in August 2014. The bundling of a bank account with the RuPay card, pension and insurance schemes, along with the blitzkrieg of advertisements across all media created high levels of awareness for financial services. More critically, the focus under the PMJDY has moved discussions on financial inclusion away from just recording the number of agents and accounts to monitoring parameters that are crucial for sustainable inclusion, like agent remuneration and transaction readiness.
The main challenge remains at the last mile—ensuring that the agent, the point of contact with the customer, remains invested in the business. Agent dormancy has been a huge problem; while the PMJDY has recommended a minimum monthly remuneration of Rs.5,000, the role of the ministry of finance in raising the agent’s income has not met with sufficient attention.
A key issue that has repeatedly raised its head is the low commission paid out to banks on DBT transactions. While the Report of the Task Force on an Aadhaar-Enabled Unified Payment Infrastructure had recommended a 3.14% transaction processing charge to the banks, in reality the rates allowed by the central and state governments have been 1-2%. In January 2015, the finance ministry fixed DBT commissions for banks: for urban schemes, at the National Electronic Funds Transfer/Aadhaar Payment Bridge rate; but for rural schemes, the rate was fixed at 1%, subject to an upper limit of Rs.10 per transaction. Detailed costing analysis from consulting firm MicroSave in May 2015 shows that 2.63% is the break-even charge: the break-up of this across the three main constituents in the disbursement chain came to about 0.96% for business correspondent (BC) network managers, 0.85% for business correspondent agents, and about 0.82% for the banks. The analysis also revealed that the savings to the government through lower administrative costs and leakages are significant. Clearly, the government can well afford adequate compensation to the banks and agent networks for their role in the disbursements.
Unfortunately, even the notified commission charges have reportedly not reached the banks. The ministry of finance must make clear budgetary allocation for the commission charges and ensure transparent and timely payment flows through the state government and banking channels. Hopefully, this budget will address this critical concern of the banks and the agents.
As the DBT was already in operation before the launch of PMJDY, the two schemes will now begin to merge. In December 2015, the government directed banks to convert all accounts opened prior to PMJDY and used for DBT payments into PMJDY accounts. This move will bring all the bundled benefits of PMJDY accounts to existing DBT beneficiaries.
Another advantage would be the ease of Aadhaar seeding as the Supreme Court has mentioned PMJDY as one of the specific schemes where voluntary use of Aadhaar is allowed. This brings us to the A in JAM, Aadhaar, which has caused many a hiccup to the progress of the DBT mission. While the Supreme Court is hearing petitions against the very concept and use of Aadhaar, the Reserve Bank of India, Telecom Regulatory Authority of India (Trai), Securities and Exchange Board of India and several state governments have approached the court in favour of Aadhaar as an enabler. The matter of “right to privacy” has been referred to a larger constitutional bench. Meanwhile, it is critical that the government work with all political parties for appropriate legislation towards the National Identification Authority of India (NIAI) Bill.
Finally, we come to M or mobile. Here, it’s easy to get misled by India’s overall teledensity statistic of 81.44%. Reliable connectivity at the last mile is crucial and the correct metric for digital financial transactions would be the minimum threshold bandwidth for data connectivity that enables mobile-based transactions, especially across rural India. The PMJDY Mission Directorate must, therefore, work with Trai, the National Payments Corporation of India (NPCI) and the Unique Identification Authority of India (UIDAI) to set up service quality benchmarks to enable financial transactions and then monitor performance at the business correspondent outlet level.
To conclude, the three critical asks for JAM to be an effective enabler of DBT are: (a) for the finance ministry: adequate and timely disbursement of transaction processing charges for the bank and agent network; (b) for Parliament: passage of the NIAI bill and (c) for the finance ministry, Trai, NCPI and UIDAI: setting up and monitoring service quality benchmarks for digital financial transactions.

100% digitisation of ration cards done, a major step towards leak-proof PDS in the country

100% digitisation of ration cards done, a major step towards leak-proof PDS in the country

Over 54 crore people benefiting with Rs 2/wheat and Rs3/kg rice after the implementation of Food Security Act in 27 States.

Record procurement of paddy made extending MSP benefit to more farmers

The Government has achieved significant mile stones in the reforms of PDS. Almost 100 % (99.9%) ration cards have been digitised across the country. Over 42 % ration cards have been even linked with Aadhaar cards and Point of Sale Devices, to keep electronic record of allocation to the beneficiaries, have been installed in over 77,000 ration shops. These measures will help making PDS more transparent and leak proof. This was stated by Union Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan while addressing media in Bhubaneswar today.

 Highlighting the initiatives taken by his Ministries during last 20 months, Shri Paswan said that number of states implementing National Food Security Act has now increased to 27, benefiting over 54 crore people with Rs 2/kg wheat and Rs3/kg rice. Now all the States 36 States/UTs have and online  redressal of PDS grievances and toll free number for beneficiaries. Online allocation of foodgrains is being made in 20 states.

Shri Paswan said huge paddy procurement has been made during on-going Kharif season ensuring reach of MSP operations to more farmers. 261.37 lakh tonnes paddy has been procured till February 11, 2016 while during last kharif season it was 215.49 lakh tonnes. Even in Odisha procurement till date is 16.07 Lakh tonnes while during last season it was 15.06 lakh tonnes.

                                                   

            Highlights of other initiatives of Union Ministry of Consumer Affairs, Food and Public Distribution are:

·         NFSA implementation likely in all the States/UTs by April this year. National Food Security Act (NFSA) which came into force in July, 2014, now being implementing in 27 States/UTs.  By April it is likely to be implemented in all remaining States/ UTs.

·         In order to check leakage and diversions and to facilitate Direct Cash Transfer of food subsidy to the beneficiaries has been launched in Chandigarh and Puducherry in September, 2015, Under the scheme, in lieu of foodgrains subsidy component is credited directly into the bank accounts of beneficiaries who will be free to buy foodgrains from anywhere in the market.

·         The Central Government also decided to share 50% (75%  in the case of Hilly and difficult areas) of the cost of handling & transportation of foodgrains incurred by the states and the dealers’ margin so that it is not passed on to the beneficiaries and they get coarse grains Rs1/kg, wheat at Rs2/kg and rice at Rs 3/kg.

·         To ensure that beneficiaries of the National Food Security Act get entitled foodgrains positively, rules for payment of food security allowance to the beneficiary in the case of non-delivery of foodgrains have been notified.

·         In order to provide nutritional security to the economically vulnerable sections of society and to have better targeting of “other welfare schemes’ for poor, a Committee of Ministers set up under the chairmanship of Minister for Consumer Affairs, Food and Public Distribution has decided continuation of foodgrain allocation for Other Welfare Schemes and also has recommended for providing milk and eggs – pulses etc. under the schemes.

Improving foodgrain management

Sustained efforts have resulted in significant reforms in TPDS. As a result so far-

·         99.9 % ration cards digitized.

·         42% ration cards have been seeded with Aadhaar,

·         Online allocation of foodgrains implemented in 20 states/UTs.

·         77,631 FPS automated by installing ‘Point of Sale’ device.

·         Online grievance redressal implemented and Toll free help lines installed in all the 36 States/UTs

·         Transparency portal to display all operations of TPDS launched in 27 States/UTs

Relief to farmers

In order to give relief to the farmers affected by the unprecedented rains & hailstorms last year, Government relaxed Quality norms for the wheat procurement and also decided to reimburse amount of value cut on such relaxation to the States so that farmers get full Minimum Support Price (MSP). Such a farmer’s centric step has been taken for the first time by any Central Government.

·         In a bid to increase reach of minimum support price (MSP) operations to more farmers and increase procurement of paddy, the procurement policy has been modified and private firms have been allowed to procure paddy from farmers in a cluster, identified by the respective state government in the states of Assam, Bihar, Eastern Uttar Pradesh, Jharkhand and West Bengal. These states lack necessary infrastructure and experience in large scale procurement operations and the Food Corporation of India (FCI), too, does not have a robust procurement mechanism which often forces farmers to go for distress sale. Private firms would deliver custom milled rice (CMR) at the FCI or state government-owned agency godowns.

·         For creation of 1.5 LMT Buffer Stock of Pulses, FCI started procurement pulses from farmers at market price or MSP whichever is higher. FCI has targeted the procurement of 20,000 MT of Arhar, 2,500 MT of Urad (Total 22,500 MT) during Kharif Marketing Season 2015-16. Similarly, target has been fixed for procurement of 40,000 MT Chana and 10,000 MT of Masur (Total 50,000 MT) during Rabi Marketing Season 2015-16.

·         The drop in international prices of imported oils was affecting the prices of domestically produced edible oils consequent upon which farmers’ interests were affected. Department of Food and Public Distribution had recommended an increase in the import duty. Accordingly, the import duty on Crude oils has been increased from existing 7.5% to 12.5% and the import duty on refined oils from existing 15% to 20%. on 17.09.2015

Reforms in FCI

• To bring all operations of FCI Godowns online and to check reported leakage, “Depot Online” system initiated in 30 sensitive depots. Depot Online System will be rolled out in all the FCI-Owned Depots by May this year and in all other hired depots by year end.

• The FCI has been asked to take up construction modern silos for storage of total 100 lakh MT capacity at different locations in the country under PPP mode which will help in maintaining the quality of foodgrains, minimize losses and ensure rapid bulk movement of foodgrains.
• Time bound construction plan is:
• 2015-16- completion of 5 LMT capacity,
• 2016-17-completion of 15 LMT capacity,
• 2017-18- completion of 30 LMT capacity
• 2018-19- completion of 30 LMT capacity
• 2019-20- completion of 20 LMT capacity

• The Government of India approved sale of wheat and rice available in central pool above the stocking norms in the beginning the quarter of 2015-16 under Open Market Sale Scheme (OMSS), 53.62 lakh MT of wheat and 0.84 lakh MT of Grade-A rice has been sold up to 9^nd January 2016. Open Market Sale at reasonable rates is made to check inflation.

·         Despite last two years having been monsoon deficit years, due to robust procurement arrangement made by FCI, there is more than adequate foodgrain stock available with the Government under Central Pool. As on 1st January, 2016, there is 237.88 lakh MT of issuable wheat stock under Central Pool. Similarly, on 1st January, 2016 there is a stock of 126.89 lakh MT of rice under Central Pool, which is 50.79 lakh MT more than stocking norms. This excess quantity will help in meeting any contingencies arising due to monsoon deficit or natural calamities. 

• Government revised the buffer norms in January, 2015 for better management of foodgrain storage. During 2015-16 both storage and transit losses have been reduced to (-) 0.03% due to storage gain in wheat and 0.39% against MoU target of 0.15% and 0.42% respectively.

• Storage capacity for central pool stocks of food grains increased to 796.08 lakh MT. New godowns having capacity of 10 lakh MT under Private Entrepreneur Guarantee Scheme (PEG) constructed in 20 States. Besides this storage capacity of 62,650 MT in North East under Plan Scheme and 1.78 lakh MT in 12 States added through CWC.

• 610.50 lakh MT of foodgrains were allocated to States/UTs for distribution under TPDS and other Welfare Schemes during 2015-16 (upto 18.01.2016).   

• The Central Warehousing Corporation (CWC) also achieved all time high turnover of Rs. 1562 crore in 2014-15.

• A transformation plan for the Warehousing Development and Regulatory Authority (WDRA) has been initiated to streamline the warehousing sector. The work on for creation of IT platform and rewriting of rules and procedures has been initiated.

Steps taken to liquidate cane price arrears of farmers -

The Government took several measures to facilitate payment of cane price arrears by infusing liquidity into the sector.

·         A scheme for extending soft loans to the extent of Rs. 6000 crore to the sugar industry was notified on 23.6.2015. Rs 4152crore have been disbursed under the scheme. The government also extended period by one year for achieving eligibility under the soft loan scheme and decided to bear the interest subvention cost to the extent of Rs. 600 crore for the extended period. 

·         Direct Subsidy to farmers, Government decided to pay a production linked subsidy of Rs 4.50 per quintal cane in 2015-16 season, to sugar mills to offset the cost of cane and facilitate timely payment of cane price dues of farmers for sugar season 2015-16. A notification in this regard issued on 2.12.2015. Funds released under the scheme shall be directly credited into farmers’ accounts.

·         The export incentive on raw sugar has been increased from Rs 3200/MT to Rs. 4000/MT. Funds have been allocated to support 14 lac MT (LMT) of raw sugar exports as against 7.5 LMT achieved last year. In September 2015 Government also announced quotas for mills and co-operatives for mandatory exports of four million tonne of sugar in 2015-16.

·         The Government has enhanced import duty on sugar from 25% to 40% to discourage imports. Also, to prevent leakages of sugar in the domestic markets, the export obligation period has been reduced from 18 months to 6 months under the Advanced Authorization Scheme.

·         Blending targets under Ethanol Blending Programme scaled up from 5% to 10%.

·         Remunerative prices for Ethanol supplied for blending have been substantially increased and excise duty on ethanol supplied for blending in the next sugar season has been waived. As a result, the supplies of ethanol for blending have increased from about 32 crore liters per year to 83 crore liters per annum. It is also noteworthy that the sugar industry is now active in the Ethanol Blending Program, by supplying 6.82 cr ltrs of ethanol to Oil Marketing Companies during the current sugar season (since October, 2015) as against mere 1.92 cr ltrs supplied during the corresponding period in the last season. Furthermore, the contracted quantity under EBP is at an unprecedented 120 cr ltrs in the current season which a historic high. 

·         As a result of  these sustained efforts, the cane price arrears which were Rs. 21,000 crore in peak in April 2015 in sugar season of 2014-15 have came down to Rs. 2,700 crore as on 12.1.2016.

New provisions to promote quality of consumer products and services

·         In order to ensure quality of products and services for common consumer, the Government introduced Bureau of Indian Standards Bill, 2015 in Parliament to replace 29 years- old BIS Act. The new Bill has been approved by the Lok Sabha. In the new Bill provisions have been made for simpler self-certification mechanism, mandatory hallmarking, and product recall and product liability for better compliance to standards.

·         To improve “ ease of doing business”, simplified conformity assessment schemes, including self- certification and market surveillance instead of inspectors visiting factories introduced, thereby ending the inspector raj on standards.

·         New provisions proposed will promote harmonious development of standardisation activities, enabling GoI to bring mandatory certifications regime for goods or service considered vital from viewpoint of health, safety, environment, and prevention of deceptive practices. Provision to prevent import of below par products, providing mandatory hallmarking of precious metal articles, increased scope of conformity assessment, and enhancement of penalties and implication are the important provisions in the Act. The new Bill has also made increased penal provisions for better and more effective compliance and compounding of offence for violations 

·         New Bill provides for recall, including product liability of products not conforming to relevant Indian Standards

·         Registration for manufacturers of electronic products to safeguard consumer / industry against sub-standard imports provided.

·         Under the Swacch Bharat Abhiyan, steps taken to formulate/upgrade standards on potable water, street food and garbage disposal.

Boost to consumer protection 

·         Consumer Protection Bill 2015 that seeks to simplify and strengthen consumer grievance redressal procedure introduced in the Parliament this year. Setting up of a Central Protection Authority which will have powers to recall products and initiate class suit against defaulting companies, including e-retailers proposed. E-filing and time bound admission of complaints in consumer courts is another important provision made in the Bill.

The Government adopted six points joint action plan for consumer awareness and protection. This will include:

(i) Jointly developing and implementing industry standard for grievance redressal 
(ii) All Members of the Industry Associations to partner with the National Consumer Helpline and State Consumer Helplines 

(iii) Launching of joint awareness campaigns 

(iv) Earmarking of CSR funds for consumer welfare activities 

(v) Developing a self-regulation code

(vi) Action against fake, sub-standard, counterfeit products 

It would be launched on the World Consumer rights day on March 15 this year.

·         Joint campaign organised with Heath, Financial Services and other departments for greater consumer awareness.  During the year the Department of Consumer Affairs intensified its multimedia campaign under the banner of Jago Grahak Jago, with special emphasis on rural area.

·         An Inter-Ministerial Monitoring Committee constituted for key sectors that matters to consumers viz Agriculture, Food, Healthcare, Housing, Financial Services and Transport, to facilitate policy coherence and coordinated action on consumer.

·         To tackle the menace of misleading advertisement, a dedicated portal www.gama.gov launched. It enables consumers to register their grievances against misleading advertisements in six key sectors viz. food and agriculture, heath, education, real estate, transport and financial services. The complaints lodged are taken up with the relevant authorities or the sector regulators and the consumer is informed after the action taken.

·         To provide a host of consumer services under one roof, GrahakSuvidhaKendras launched in six locations: Ahmadabad, Bangalore, Jaipur, Kolkata, Patna and Delhi on March 18, 2015. Such centres will be set up in every State in a phased manner.  .

Measures to ensure availability of Essential food items at reasonable prices

In order to ensure availability of essential food items at reasonable prices the Government took flowing decisions recently:

• Advance action plan drawn to ensure availability of Essential Commodities and weekly monitoring meeting of an inter-ministerial committee chaired by the Secretary Consumer Affairs.

• Decision taken to procure 1.50 lakh MT of pulses for creating buffer stock. Decision to import of 10,000 MT pulses already taken.

• MSP increased for kharif pulse by Rs 275 per qtl for Tur&Urad, and by Rs 250 per qtl for Moong.

• Ban on export of all pulses, except Kabuli Chana; and Organic Pulses & lentils up to 10,000 MTs. Zero import duty on pulses extended upto Sept, 2016.

• Zero import duty extended till 30^th September 2016.

• States/UTs empowered to impose stock limits, on Onions and Pulses to check hoarding and black marketing under EC Act, 1955.
• Other edible oil in branded consumer pack of up to 5 kgs is permitted with MEP of USD 900 per MT w.e.f. 6.2.2015