Lok Sabha clears Real Estate Bill as passed by Rajya Sabha

Lok Sabha clears Real Estate Bill as passed by Rajya Sabha

Shri Venkaiah Naidu clarifies various issues of the Bill

Real Estate Bill is Prime Minister’s Gift to the Nation, says Shri Naidu

The Bill shall have a bearing on the ongoing projects and houses

70% is for both construction cost and land cost to be maintained by the promoter is a separate account and not an escrow account

Imprisonment Provision for non-compliance, as a last option

Single window approval system is being developed for ensuring timely completion of housing projects

Lok Sabha today approved the Real Estate (Regulation and Development) Bill, 2016. The bill seeks to create a set of rights and obligations for both the consumers and developers and encourage both of them to live up to the expectations of each other as per the agreement entered into by both of them.

Moving the Bill pending in Lok Sabha after it got passed in Rajya Sabha on March 6, Minister of Housing & Urban Poverty Alleviation Shri M. Venkaiah Naidu clarified the position on the issues such as how the Bill will be applicable to existing projects; the Rules on setting aside 70% of customer advances in an escrow account; compulsory approvals prior to project launches, and payment of similar interest rate to customers as charged from them for delays will impact launches and increase compliance costs. The clarifications by the Minister on different issues are as below:

Requirement to deposit 70% of collections:

• The account to be maintained by the promoter is a separate bank account and not an escrow account.
• Also, the deposit of 70% is for both construction cost and land cost, and if the land cost has already been incurred the promoter can withdraw to that extent
• Requirement to be met for such withdrawals is provided in the act.
• This provision has only been provided to ensure that project funds are not diverted and projects are completed on time.

Ongoing Projects:

• Upon passage of this Bill existing/ongoing projects would not come to a standstill, as is being made out by some respondents from the industry.
• The Bill does not provide that the existing projects should stop all operations until complied with the provisions of the Bill.
• The Bill only provides that upon the formation of the Regulatory Authorities all promoters of existing projects, coming within the ambit of the Bill, would need to register and provide and upload all project details on the website of the Authority.
• A window of 3 months from the date of commencement of the said clause/section has been given to the promoters for registration.
• The developers need to to specify the project details of such apartments so that prospective buyers will make informed choices, project status is known to all and to ensure that the projects are completed on time.

Imprisonment Provision:

• Regarding the provision of imprisonment for any violations of the orders of the regulatory authorities or the Appellate Tribunal, it is certainly not a first option but only the last option.
• There are many regulatory laws in the country with imprisonment provisions under which 3 to 10 years of imprisonment is provided for. Under Securities Act, Insurance Act and Pension Fund Act, 10 years of imprisonment is provided. Food security Act has 7 years provision while it is 5 years under Electricity Act and Reserve Bank of India Act.
• There can’t be a consumer without a developer and vice versa. Keeping in mind the importance of developers for mobilization of land and resources for housing projects, the last option of imprisonment has been kept at 3 years.

Ensuring timely approvals for housing projects

The act also provides under clause 32(b) for the Real Estate Regulatory Authority to take up with appropriate government of competent authority, the creation of a single window system for ensuring time bound project approvals and clearances for timely completion of projects.

Shri Naidu has said that with a target is to ensure that all required approvals are given in about a month’s time, he held 7 high level meetings with the Ministers of Environment, Forests and Climate Change, Civil Aviation, Defence, Consumer Affairs, and Culture for streamlining such approvals. All these ministries as a result have taken significant measures to ensure online and timely approvals. Single window approval system is being developed to standardize and settle timelines for approvals and use of IT & GIS for automation of such systems, setting up nodal agency & empowered committees, Shri Naidu added.

• M/o Civil Aviation – Coloured Coded Zoning Maps (CCZMs) of 13 major airports available online, 9 more by June 2016, Automated NOC approval system & height clearance operational (on 6.1.2016)
• M/o Culture – Online NOC process notified,handheld APP, heritage byelaws.
• M/o Defence – Review of Ammunition Storage Policy, LMA’s instructed to share restricted zone details with municipal bodies. CCZM’s for four defence airports by April, 2016.
• Model Building Bye Laws finalized by Ministry of UD in consultation with MoEF & CC.
• MoEF & CC has agreed to integrate environmental conditions and norms in building approval process and now included in the Model Building Bye laws by MOUD. Now it’s up to the States, to adopt this model building by laws and there shall be no need separate clearance by MOEF up to 1.5 lakh Sq.Mtrs .
• Revision of National Building Code National Building Code, 2015 finalized after incorporating MoUD’s Model Building Bye Laws (MBBL).

The Minister assured the industry that with the establishment of a regulatory mechanism there would be greater flow of investment, both national and foreign, into the sector, resulting in reduction in cost of borrowing.

The Bill requires project promoters to register their projects with the Regulatory Authorities disclosing project information including details of promoter, project including schedule of implementation, lay out plan, land status, status of approvals, agreements along with details of real estate agents, contractors, architects, structural engineers etc. Shri Naidu said that this enables transparent, accountable and timely execution of projects.

The Minister further said that the Real Estate Bill, 2016 enables the people meet their genuine aspirations of owning a house including those of urban poor by giving a fillip to affordable housing initiative under which the Government intends to enable construction of 2 crore by the year 2022 under Prime Minister’s Awas Yojana (Urban).

Shri Naidu has said that the Real Estate Bill is a gift to the nation by the Prime Minister. The passage of the bill is an example of Prime Minister’s commitment to total transformation, added the Minister.

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Safety Standards for Cars

Safety Standards for Cars

The Government has formulated safety standards for car manufacturers to make safe cars. These are contained in the Automotive Industry Standards (AIS) under the Central Motors Vehicles Regulations, 1989 (CMVR). There is provision under rule 126 of Central Motor Vehicle Rules, 1989 (CMVR) that every manufacturer of motor vehicles other than trailers and semi-trailers requires to submit the prototype of the vehicle to be manufactured by him for test by any of the agencies specified therein for granting a certificate to the compliance of provisions of Central Motor Vehicle Act, 1988 and Central Motor Vehicle Rules, 1989. Rules 126A of CMVR requires the test agencies, referred to in Rule 126, to also conduct test on vehicles drawn from the production line of the manufacturer to verify whether these vehicles conform to the provisions of Rules under Section 110 of the Motor Vehicle Act, 1988. Enforcement of provision of CMV Act and CMV Rules come under the purview of the State Governments/UTs.

Further, India is taking steps towards harmonization of national regulations of safety standards for passenger cars with UN-ECE regulations. Ministry of Road Transport & Highways has formed a dedicated panel for introducing safety features in new vehicles under ‘Bharat New Vehicle Safety Assessment Programme’ which will be voluntary from October, 2017 and mandatory by October, 2020.

However, if a safety defect which poses risk of accident or harm to the vehicle occupant is recognized in vehicles, the manufacturers conduct a voluntary recall and offer to rectify the vehicles free of charge.

All safety norms prescribed under the CMVR 1989 are based on the UN/European Regulations which are internationally accepted. Some of the regulations like Frontal Crash Test which requires mandatory fitment of airbags, the Ministry of Road Transport & Highways has already notified crash regulations for new vehicles from 1st April, 2017. 

Impact of Passive Smoking on Children

Impact of Passive Smoking on Children

As per Global Youth Tobacco Survey, a school-based survey of students in grades 8, 9, and 10 conducted in 2009, one in five students live in homes where others smoke, and more than one-third of the students are exposed to smoke around others outside of the home; one-quarter of the students have at least one parent who smokes.

Exposure to second hand smoke results in lung cancer and heart diseases among adults, and SIDS (Sudden Infant Death Syndrome), chronic respiratory infections, exacerbation/worsening of asthma, reduced lung function growth, middle ear diseases, and acute respiratory illnesses among children. Smoking in the home affects babies and young children as well as the elderly and other adults, especially women.

The Government has taken measures including, inter alia, the following to curb smoking: (i) Enactment of the “Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, (COTPA) 2003”.

(ii) Ratification of WHO Framework Convention on Tobacco Control.

(iii) Launch of the National Tobacco Control Programme (NTCP) in the year 2007-08, with the objectives to (a) create awareness about the harmful effects of tobacco consumption, (b) reduce the production and supply of tobacco products, (c) ensure effective implementation of the anti-tobacco laws and (d) help the people quit tobacco use through Tobacco Cessation Centres.

(iv) Notification of rules to ban smoking in public places.

(v) Notification of rules to regulate depiction of tobacco products or their use in films and TV programmes.

(vi) Notification of rules on new pictorial health warnings on tobacco product packages.

(vii) Launch of public awareness campaigns through a variety of media. v Government of India has banned certain kinds of smokeless tobacco products like gutkha and chewing tobacco through the notification issued under the Food Safety and Standards Act, 2006. Other tobacco products are regulated by the Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA 2003), which contain provisions, inter alia, relating to ban on sale of tobacco products by/to minors, ban on sale of tobacco products within 100 yards of educational institutions, ban on promotions/advertisements of tobacco products, etc. 

steps taken towards elimination of Kala-Azar

steps taken towards elimination of Kala-Azar

To achieve the Kala-azar elimination goal by 2017 set by the WHO, the following steps have been taken:

1.      National Roadmap for Kala-azar Elimination (2014) has been circulated to states with clear goal, objectives, strategies, timelines with activities and functions at appropriate level. This document has been developed for focused intervention at national, state, district and sub-district  and village levels.

2.      Treatment of Kala-azar patient with single day single dose Liposomal Amphotericin B (AmBisome) injection has improved treatment compliance. Unintrupted  free supply of AmBisome  is ensured by WHO.

3.      Regular supply of diagnostic kit (rapid diagnostic test) and drugs in states is ensured.

4.      Funds are provided to states for incentive of Rs. 500/- to Kala-azar patient   and Rs. 2,000/- to PKDL case from GoI  to compensate loss of wages.

5.      Incentive of Rs. 300/- to ASHA /health volunteer  to bring Kala- azar suspected case to health facility and to ensure  complete treatment. ASHA is also being paid Rs. 200/- during  indoor residual spray for social mobilization and community acceptance to allow spray in their rooms.

6.      Active search of Kala azar and  Post Kala-azar Dermal Leishmaniasis (PKDL) case and IEC/BCC with the help of development partners.

7.      In 21 high endemic districts of Bihar (15 districts), Jharkhand (4 districts) and West Bengal (2 districts), DDT has been replaced by Syenthetic Pyrethroid where vector showed tolerance towards DDT. All endemic Kala-azar villages are covered with focal spray where new case is found during non IRS period. Hand Compression pumps are being used for spraying.

8. Govt. of India is closely working with development partners like  Bill Melinda Gates Foundation(BMGF); KalaCORE Consortium; Rajendra Memorial Research Institute (RMRI); National Centre for Disease Control (NCDC), Patna and World Health Organisation (WHO) for achieving the desired goal of elimination.

9.  The Kala-azar Elimintion is being reviewed on monthly basis by Prime Minister’s Office (PMO) and higher officials of Ministry of Health & Family Welfare.

Programme is striving hard to achieve elimination within the target set by WHO. With the supportive monitoring, regular reviews and  field visits, 502 (80%) blockPHCs out of 625 endemic block PHCs have shown less than one case per 10,000 population in 2015 at block PHC level.

Addressing the Problems of Rural Health

The health status of the population, especially that of rural population, does require improvement. However, the condition of the health services in rural areas of the country has improved after the launch of the National Rural Health Mission.

As per the National Health Profile, 2015, the number of beds in rural hospitals is 183602 as against 492177 beds in urban hospitals.

Public health being a State subject, the primary responsibility to provide health care facilities lies with the State Governments. To address the healthcare challenges, particularly in rural areas, the National Rural Health Mission (NRHM) was launched in 2005 to supplement the efforts of the State/UT governments to provide accessible, affordable and quality healthcare. The National Rural Health Mission (NRHM) has now been subsumed under the National Health Mission (NHM) as its Sub-Mission, along with National Urban Health Mission (NUHM) as the other Sub-Mission.Support under NHM is provided to State/UTs for setting up new facilities or renovation of existing facilities, health human resource on contractual basis, drugs, equipment, diagnostics, Ambulances, Mobile Medical Units etc based on the requirement posed by the States/UTs in their Programme Implementation Plans (PIPs).

The government has already taken steps towards provision of free services for maternal health, child health, adolescent health, family planning, universal immunization programme, and for major diseases such as TB, vector borne diseases such as Malaria, dengue and Kala Azar, leprosy etc. Other major initiatives for which states are being supported include JananiShishuSurakshaKaryakram (JSSK), RashtriyaBalSwasthyaKaryakram (RBSK), RashtriyaKishorSwasthyaKaryakram (RKSK), implementation of National Health Mission Free Drugs Service Initiative and National Health Mission Free Diagnostics Service Initiative, Strengthening District Hospitals and implementation of National Quality Assurance Framework. To address health inequities, 184 High Priority Districts have been identified for enhanced fund allocation and focused attention. 

Measures to Reduce Anaemia in Women

Measures to Reduce Anaemia in Women

As per National Family Health Survey (NFHS) - III (2005-06), prevalence of anaemia in women is 55.3%.  State-wise prevalence of anaemia in women of reproductive age group (15-49 years) as per the latest survey data is given below.

The steps taken by Government to prevent and treat anaemia amongst women are as follows:

        i.            Ministry of Health and Family Welfare in 2013 launched “National Iron Plus Initiative” as a comprehensive strategy to combat the public health challenge of Iron Deficiency Anaemia prevalent across the life cycle. There are age specific interventions with Iron and Folic Acid Supplementation and Deworming for improving the haemoglobin levels and reducing the prevalence of anaemia for all age groups, that is children 6-59 months, 5 – 10 years, adolescent girls and boys (11-19 years), pregnant and lactating women and women in reproductive age group (20 – 49 years).

     ii.            Universal screening of pregnant women for anaemia is a part of ante-natal care and all pregnant women are provided iron and folic acid tablets during their ante-natal visits through the existing network of sub-centers and primary health centres and other health facilities as well as through outreach activities at Village Health & Nutrition Days (VHNDs). 

   iii.            Every pregnant woman is given iron and folic acid, after the first trimester, to be taken 1 tablet daily for 6 months during ante-natal and post-natal period.  Pregnant women, who are found to be clinically anaemic, are given additional tablet for taking two tablets daily.

   iv.            Government of India has given directions to the States for identification and tracking of severely anaemic cases at all the sub centres and PHCs for their timely management.

      v.            Health and nutrition education through IEC & BCC to promote dietary diversification, inclusion of iron folate rich food as well as food items that promotes iron absorption.  

   vi.            To tackle the problem of anemia due to malaria particularly in pregnant women and children, Long Lasting Insecticide Nets (LLINs) and Insecticide Treated Bed Nets (ITBNs) are being distributed in endemic areas.

 vii.            Health management information system & Mother Child tracking system is being implemented   for reporting the cases of anemic and severely anaemic pregnant women.

viii.            MCP Card and Safe Motherhood Booklet are being distributed to the pregnant women for educating them on dietary diversification and promotion of consumption of IFA.

   ix.            184 High Priority Districts (HPDs) have been identified and prioritized for Reproductive Maternal Newborn Child Health+ Adolescent (RMNCH+A) interventions for achieving improved maternal and child health outcomes.

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100% FDI decision in food processing sector will play a big role in doubling farmers’ income by 2022

100% FDI decision in food processing sector will play a big role in doubling farmers’ income by 2022: Minister

Aspire to turn India into the food factory for the world in the next few years: Minister

I am looking at a market that goes to the farmer’s doorsteps: Smt. Harsimrat Kaur Badal

Food Processing Industries Minister inaugurates 31^st edition of AAHAR

Highest ever participation in International Food and Hospitality Fair 2016

Amidst the global slowdown, India continues to be one bright spot. Many foreign players whom I met at international food expositions, requested me to put in a word, so that they can participate in AAHAR. This is testimony to the changed global outlook towards India and the strengthening of ‘Brand India’, thanks to the global outreach of Hon’ble Prime Minister Shri Narendra Modi. Under his leadership, the Government has worked hard to create an environment conducive to the growth of the economy. The food processing sector in India is going to be one bright spot which will propel this growth.

-          Union Food Processing Industries Minister, Smt. Harsimrat Kaur Badal, at inauguration of AAHAR 2016

Inaugurating the International Food and Hospitality Fair 2016, being held at Pragati Maidan, New Delhi, the Minister said that the Budget decision to allow 100% FDI in multi-brand retail for food products produced and processed in India will play a catalytic role in leapfrogging Indian economy. She underlined that the decision pertains to FDI in 100% swadeshi and home-grown food.

The average Indian spends 40% of his income on eatables, and only 10% of what we grow is processed in India. Recalling these facts, the Minister pointed to the huge opportunity that beckons investors. She said that the FDI decision would give a boost to the sector, and would contribute to the eventual aim of uplifting farmers and doubling farmers’ income by 2022.

I wish I did not have to go the market; I wish the market came to me.

Recalling the big market access challenge that India’s farmers face, Smt. Badal said that she is looking at a market that goes to the farmer’s doorsteps, an industry that chases the farmer. She said that the 100% FDI decision would usher in a partnership between industry and farmers, play a huge role in creating backward infrastructure linkages and plugging wastages, thereby improving the farmers’ prospects.

The Minister spoke also of the e-marketing platform that is slated to be launched in April 2016, hailing it as a revolutionary initiative by the Prime Minister. She said that the digital platform will integrate 585 regulated markets, providing farmers and traders with access to opportunities for purchase/ sale of agri-commodities at optimal prices in a transparent manner. Smt. Badal spoke also of the Government’s vision to tap the potential for organic farming in North East India.

Stating that 42 Mega Food Parks are coming up, the Minister said that foreign players can tie up with these parks in pursuing ‘Make In India’, even for specific nations of their choice. This would be facilitated by the plug-and-play model under which these parks would operate, wherein common infrastructural facilities would be provided. Smt. Badal said that she aspires to turn India into the food factory for the world in the next few years.

Aspire to turn India into the food factory for the world in the next few years

-          Union Food Processing Industries Minister, Smt. Harsimrat Kaur Badal

The Minister congratulated the India Trade Promotion Organization for the unprecedented participation response to AAHAR 2016, especially with its focus on new and young entrepreneurs, and added attractions such as a Culinary Art Competition.

The Chairman and Managing Director, ITPO, Shri L. C. Goyal said that AAHAR has transformed from a trade promotion event to a growth propelling event. He said that it has become India’s best known brand in food and hospitality sector, having acquired a prominent place in the global calendar of international expositions.

Shri Goyal said that the decision to allow 100% FDI in the sector would have a huge multiplier effect, by reducing post-harvest wastage, helping crop diversification, incentivizing global players to invest and produce in India and by creating a large number of jobs. He said that this would also help the other objectives of Make in India, Skill India and Start up India.

The Chairman said that ITPO’s role is being reoriented, with introduction of e-tendering and e-refunds. He said that the proposal to redevelop Pragati Maidan Complex into a world-class exhibition-cum-convention complex is at an advanced stage of consideration. He underlined that the administration will not allow any event to be adversely affected, due to the redevelopment project. Noting that AAHAR 2016 has broken previous records in terms of both number of exhibitors and space given to exhibitors, Shri Goyal said that the new motto of ITPO is ‘Better and Bigger’.

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Flagship Programme in FPIs

Flagship Programme in FPIs

Thedevelopment of food processing industries in the country, the Ministry is implementing a major flagship Central Sector Scheme of Infrastructure Development for food processing having components of Mega Food Parks, Cold Chain, Value Addition and Preservation Infrastructure and Setting up / Modernization of Abattoirs.As per latest Annual Survey Industries: 2012-13, the total number of factories in the registered food processing sector in the country was 37,175.In terms of investment in fixed capital, registered food processing sector is growing annually at an average of 18.47 per cent during five years ending 2012-13. As per latest, ASI 2012-13, the Fixed Capital in food processing industries was at ₹ 1,58,865 crore.

For setting up of integrated cold chain and preservation infrastructure facilities in the country, Ministry of Food Processing Industries is implementing a Central Sector Scheme of Cold Chain, Value Addition and Preservation Infrastructure since 2008. Under the scheme, financial assistance @ 50% of the total cost of plant & machinery and technical civil works in general areas and 75% for NE region and difficult areas (North Eastern states, Sikkim, J&K, Himachal Pradesh and Uttarakhand) subject to a maximum grant-in-aid of ₹ 10 crore per project is provided for setting up the cold chain infrastructure.Under this scheme, a total 66 projects with 2,92,391 metrictonne storage capacity for fruits and vegetables have been sanctioned by the Ministry during the last three years and the current year. In addition, 30850 MT cold storage capacity for fruits and vegetables, have been created in 7 operational Mega Food Parks projects under the Scheme of Mega Food Parks of this Ministry.

Government is also providing various other incentives to promote creation of cold chain infrastructure in the country as detailed below:

• Services of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables have been exempted from Service Tax in Budget 2015-16.

• Loans to food & agro-based processing units and Cold Chain have been classified under Agriculture activities for Priority Sector Lending (PSL) as per the revised RBI Guidelines issued on 23/04/2015.

• Under Section 35-AD of the Income tax Act 1961, deduction to the extent of 150% is allowed for expenditure incurred on investment for (i) setting up and operating a cold chain facility; and (ii) setting up and operating warehousing facility for storage of agricultural produce.

• Government has extended Project Imports benefits to cold storage, cold room (including for farm level pre-cooling) or industrial projects for preservation, storage or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic and marine produce and meat. Consequently, all goods related to Food Processing, imported as part of the project, irrespective of their tariff classification, would be entitled to uniform assessment at concessional basic customs duty of 5%.

• Refrigeration machineries and parts used for installation of cold storage, cold room or refrigerated vehicle, for the preservation, storage, transport or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic and marine produce and meat under Tariff Head: Chapter 84 are exempted from Excise Duty.

• Construction, erection, commissioning or installation of original works pertaining to post-harvest storage infrastructure for agricultural produce including cold storages for such purposes are exempted from Service tax.

• Capital investment in the creation of modern storage capacity has been made eligible for Viability Gap Funding scheme of the Finance Ministry. Cold chain and post-harvest storage has been recognized as an infrastructure sub-sector.