Draft National Forest Policy proposes green tax to address forestry woes Once finalized, the National Forest Policy will guide the forest management of the country for the next 25-30 years

Draft National Forest Policy proposes green tax to address forestry woes

Once finalized, the National Forest Policy will guide the forest management of the country for the next 25-30 years

The environment ministry has released the draft of India’s new National Forest Policy (NFP), proposing the levy of a green tax for facilitating ecologically responsible behaviour, supplementing financial resources essential to address forestry woes.

NFP is an overarching policy for forest management to bring a minimum one-third of India’s total geographical area under forest or tree cover. The proposed NFP follows the last edition in 1988.

“Forests and trees constitute nearly one fourth of the geographic area of the country. Protection of this vast and valuable resource, improving and increasing the forest and tree cover requires adequate investment keeping in view the pressures on these forests, and the ecosystem services that they provide to the nation. Large tracts of forest area in the country have degraded due to immense biotic pressure and lack of adequate investment,” says the draft policy.

“The budget of the forestry sector should be appropriately enhanced so that the objectives enshrined in this policy can be achieved. Environmental cess, green tax, carbon tax etc. may be levied on certain products and services for facilitating ecologically responsible behaviour, garnering citizen’s contribution and supplementing financial resources,” the policy said.

According to the India State of Forest Report 2015, released in December 2015, India’s forest and tree cover makes up 24.16% of its geographical area. Read here

The ministry put the draft policy in the public domain last week and sought public feedback by 30 June, providing only 15 days for stakeholders to comment on its provisions. Once finalized, the policy will guide the forest management of the country for the next 25-30 years.

The ministry of environment, forests and climate change (MoEFCC) started working on revising the 1988 version of the forest policy to come up with an overarching policy to address pressure exerted on forest resources by rapid economic development. Read more

The policy has been prepared by the Indian Institute of Forest Management (IIFM), run by the environment ministry.

Besides specifying how to manage forests, the draft policy said, “Other ecosystems such as alpine meadows, grasslands, deserts, marine and coastal areas should be protected and managed as well.”

It also calls for “safeguard(ing) forest lands by exercising strict restraint on diversion for non-forestry purposes” like mining and other industrial projects.

Diversion of forests for industrial projects has been a contentious issue in the country with environmentalists calling for a more sustainable approach that would leave pristine forests untouched.

“Forest land diversion projects related to mining, quarrying, construction of dams, roads and other linear infrastructure need to adopt special caution. Use of state-of-the-art technology which causes minimum pollution and damage should be promoted,” the proposed policy added.

As per MoEFCC’s records, since 1980, a total of 1.21 million hectares of forest land has been diverted; the area accommodated 23,784 proposals for non-forestry purposes—primarily mining and industrial projects. Nearly 400,000 hectares have been diverted in Madhya Pradesh alone, followed by over 100,000 hectares each in Maharashtra and Chhattisgarh.

The draft policy also called for developing “sound ecotourism models” with the focus on conservation while supplementing the livelihood needs of local communities.

“Ensure that tourism is responsible, does not negatively impact wildlife and its habitat and maximizes the income of the local community,” the policy said.

NDA govt overhauls FDI rules Foreign investment caps raised in seven key sectors, including aviation, defence, pharma, food products

NDA govt overhauls FDI rules

Foreign investment caps raised in seven key sectors, including aviation, defence, pharma, food products

The National Democratic Alliance (NDA) government on Monday opened the doors wider to foreign direct investment (FDI) in seven sectors ranging from civil aviation and defence to food products and pharmaceuticals, seeking to attract more overseas money to create jobs and boost economic growth.

The government raised foreign investment caps in some sectors, brought more investments under the automatic route that will not entail prior approval and relaxed some conditions governing FDI to improve the ease of doing business in India.

It’s the second major overhaul of FDI rules in seven months. In November, the government eased norms for overseas investment in 15 sectors. The announcement came on a day the equity and currency markets battled investor concerns over Reserve Bank of India governor Raghuram Rajan’s announcement on Saturday that he will return to academics at the end of his tenure in September and will not seek an extension.

A meeting chaired by Prime Minister Narendra Modi decided on the measures to make India an attractive destination for foreign investors, the government said in a statement. FDI inflows into India rose to $55.46 billion in 2015-16 from $36.04 billion two years ago.

The government will also soon bring out a small negative list of sectors that will spell out some caps and conditions attached to foreign investments.

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Girish Vanvari, head of the tax practice at KPMG in India, said the government’s move to ease the FDI regime was well-timed.

“It actually opens up the country to the global world. The liberalization of limits in defence, brownfield pharma, airports, private security services, food processing etc can be game changers and be a huge source of employment creation. The move to prescribe a small negative list for FDI with most sectors under the automatic route is a big mindset shift,” Vanvari wrote in a note.

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Defence

According to the changes announced on Monday, the government has made it easier for foreign investors to hold more than 49% (up to 100%) in the defence sector.

“Foreign investment beyond 49% has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded,” the statement said, adding that an earlier condition of access to state-of-the-art technology in the country has been done away with.

This limit has been made applicable to manufacturing of small arms and ammunitions covered under Arms Act 1959.

The defence FDI policy amendment introduced by the government is pragmatic because state-of-the-art technology hadn’t been defined in the previous policy, said Pierre de Bausset, president, Airbus Group India.

“The new policy wording communicates the realization that there may be several other genuine reasons for the government to allow more than 49% stake to the foreign OEM (original equipment manufacturer) in a joint venture with an Indian company and they want to take advantage of these for the benefit of the indigenous industry,” Bausset said. (read more here )

Civil aviation

India will also allow overseas entities—excluding airlines—to own 100% in domestic airlines. Currently, up to 49% FDI is allowed under the automatic route in domestic airlines (scheduled air transport service/ domestic scheduled passenger airline and regional air transport service).

“It has now been decided to raise this limit to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through government approval. For NRIs (non-resident Indians), 100% FDI will continue to be allowed under automatic route,” the government said.

Investment by foreign airlines in domestic airlines will, however, be limited to 49% of paid-up capital.

The government has also allowed 100% FDI under the automatic route in so-called brownfield airport projects with the aim of modernize existing airports. Brownfield projects refer to existing facilities requiring expansion and refurbishment.

Earlier, only FDI up to 74% in brownfield airports was allowed under the automatic route, with investments beyond 74% requiring prior government approval.

Amber Dubey, partner and India head of the aerospace and defence practice at consulting firm KPMG, said the opening of FDI will help bring in much-needed funds and help airlines expand their fleet.

“We may see its positive impact over the next 6-12 months. Though equity holding of foreign airlines is still limited to 49%, a foreign airline can join hands with its sovereign fund or private investors and set up a 100% foreign-owned airline in India,” Dubey said.

“The likely increase in competition will bring down prices and enhance air penetration in India—both international and domestic. Indian carriers can now look for enhanced valuations in case they wish to raise funds or go for partial or complete divestment,” Dubey said. (read more here )

Broadcasting, pharma

It also did away with the need for prior approval of foreign investment in the broadcasting sector, allowing 100% FDI via automatic route for broadcasting carriage services, allowing direct-to-home (DTH) TV operators, cable network companies and mobile television firms to raise 100% FDI under the automatic route.

Earlier, these investments were subject to approval from the Foreign Investment Promotion Board (FIPB).

The government allowed up to 74% FDI under the automatic route for investments in brownfield pharmaceutical projects with investments beyond 74% under the approval route.

The current policy allowed 100% FDI under the automatic route in greenfield pharma (projects built from scratch) and up to 100% FDI in brownfield pharma projects under the government approval route. (read more here )

Single-brand retail

But taking into account its Make in India initiative aimed at promoting manufacturing, the government sought to streamline the waiver from local sourcing norms under single-brand retail to companies with state-of-the-art and cutting edge technology.

It limited the exemption to three years, with the option of a subsequent five-year extension, to encourage such manufacturers to source from India.

The exemption to firms with state-of-the-art and cutting- edge technology will be limited to eight years, said Ramesh Abhishek, secretary, department of industrial policy and promotion, adding that the government will inform Apple Inc. about the new changes.

Apple, the maker of iPhones and iPads, was among the few companies that had sought a waiver from the mandatory sourcing norms from the government to enable it to open exclusive Apple stores. (read more here

Other measures

The government allowed 100% FDI under government approval route for retail, including through e-commerce, in food products manufactured or produced in India.

It also raised the foreign investment limit in private security agencies to 74% from the existing 49%. While investments up to 49% will be under the automatic route, investments above 49% will be subject to government approval.

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It also rationalized rules for setting up of branch offices, liaison offices and project offices for businesses in defence, telecom, private security and information and broadcasting, doing away with the need for approval from Reserve Bank of India or a separate security clearance in cases where FIPB or ministry approval have been received.

The government also did away with some conditions surrounding 100% FDI in animal husbandry, breeding of dogs, pisciculture, aquaculture and apiculture under automatic route.

Major impetus to job creation and infrastructure: Radical changes in FDI policy regime; Most sectors on automatic route for FDI

Major impetus to job creation and infrastructure: Radical changes in FDI policy regime; Most sectors on automatic route for FDI

The Union Government has radically liberalized the FDI regime today, with the objective of providing major impetus to employment and job creation in India. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi today. This is the second major reform after the last radical changes announced in November 2015.  Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI.

            In last two years, Government has brought major FDI policy reforms in a number of sectors viz. Defence, Construction Development, Insurance, Pension Sector, Broadcasting Sector, Tea, Coffee, Rubber, Cardamom, Palm Oil Tree and Olive Oil Tree Plantations, Single Brand Retail Trading, Manufacturing Sector, Limited Liability Partnerships, Civil Aviation, Credit Information Companies, Satellites- establishment/operation and Asset Reconstruction Companies. Measures undertaken by the Government have resulted in increased FDI inflows at US$ 55.46 billion in financial year 2015-16, as against US$ 36.04 billion during the financial year 2013-14. This is the highest ever FDI inflow for a particular financial year. However, it is felt that the country has potential to attract far more foreign investment which can be achieved by further liberalizing and simplifying the FDI regime.  India today has been rated as Number 1 FDI Investment Destination by several International Agencies.

Accordingly the Government has decided to introduce a number of amendments in the FDI Policy. Changes introduced in the policy include increase in sectoral caps, bringing more activities under automatic route and easing of conditionalities for foreign investment. These amendments seek to further simplify the regulations governing FDI in the country and make India an attractive destination for foreign investors.  Details of these changes are given in the following paragraphs:

1.         Radical Changes for promoting Food Products manufactured/produced in India

It has now been decided to permit 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India.

2.         Foreign Investment in Defence Sector up to 100%

Present FDI regime permits 49% FDI participation in the equity of a company under automatic route.  FDI above 49% is permitted through Government approval on case to case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country. In this regard, the following changes have inter-alia been brought in the FDI policy on this sector:

i.        Foreign investment beyond 49% has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded.  The condition of access to ‘state-of-art’ technology in the country has been done away with.

ii.      FDI limit for defence sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act 1959.

3. Review of Entry Routes in Broadcasting Carriage Services

FDI policy on Broadcasting carriage services has also been amended. New sectoral caps and entry routes are as under:

Sector/Activity	New Cap and Route
5.2.7.1.1 (1)Teleports(setting up of up-linking HUBs/Teleports); (2)Direct to Home (DTH); (3)Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking upgradation of networks towards digitalization and addressability); (4)Mobile TV; (5)Headend-in-the Sky Broadcasting Service(HITS)	100% Automatic
5.2.7.1.2 Cable Networks (Other MSOs not undertaking upgradation of networks towards digitalization and addressability and Local Cable Operators (LCOs))
Infusion of fresh foreign investment, beyond 49% in a company not seeking license/permission from sectoral Ministry, resulting in change in the ownership pattern or transfer of stake by existing investor to new foreign investor, will require FIPB approval

4.     Pharmaceutical

The extant FDI policy on pharmaceutical sector provides for 100% FDI under automatic route in greenfield pharma and FDI up to 100% under government approval in brownfield pharma. With the objective of promoting the development of this sector, it has been decided to permit up to 74% FDI under automatic route in brownfield pharmaceuticals and government approval route beyond 74% will continue.

5.     Civil Aviation Sector

(i)  The extant FDI policy on Airports permits 100% FDI under automatic route in Greenfield Projects and 74% FDI in Brownfield Projects under automatic route. FDI beyond 74% for Brownfield Projects is under government route.

(ii)   With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100% FDI under automatic route in Brownfield Airport projects.

(iii) As per the present FDI policy, foreign investment up to 49% is allowed under automatic route in Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service. It has now been decided to raise this limit to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval. For NRIs, 100% FDI will continue to be allowed under automatic route. However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and  non-scheduled air-transport services up to the limit of 49% of their paid up capital and subject to the laid down conditions in the existing policy.

6.     Private Security Agencies

The extant policy permits 49% FDI under government approval route in Private Security Agencies. FDI up to 49% is now permitted under automatic route in this sector and FDI beyond 49% and up to 74% would be permitted with government approval route.

7.     Establishment of branch office, liaison office or project office

For establishment of branch office, liaison office or project office or any other place of business in India if the principal business of the applicant is Defence, Telecom, Private Security or Information and Broadcasting, it has been decided that approval of Reserve Bank of India or separate security clearance would not be required in cases where FIPB approval or license/permission by the concerned Ministry/Regulator has already been granted. 

8.     Animal Husbandry

As per FDI Policy 2016, FDI in Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture and Apiculture is allowed 100% under Automatic Route under controlled conditions. It has been decided to do away with this requirement of ‘controlled conditions’ for FDI in these activities.

9. Single Brand Retail Trading

It has now been decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.

Today’s amendments to the FDI Policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment.

What sets India apart in global power market India is the only major country that is expected to see a significant rise in conventional capacity additions

What sets India apart in global power market

India is the only major country that is expected to see a significant rise in conventional capacity additions 

Two new reports that forecast trends on the global electricity sector expect India to stand apart on three different counts.
First is solar and wind power costs. The International Renewable Energy Agency (IRENA) forecasts that technology, competition, improvements in supply chains, economies of scale and right policies will reduce the cost of electricity from solar and wind power by at least 26% and perhaps as much as 59% between 2015 and 2025.

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But some countries are expected to see lower cost reductions. Among them is India. Cost reductions are expected to be driven by a fall in balance of system (BoS) costs (BoS involves system design, finance costs, installation, grid connection, etc). But if one looks at BoS costs of various countries, India is already in the “low cost” basket, providing limited scope for cost reductions, especially when one compares to major countries like the US, Australia and Japan.
The story is similar in the wind sector, where installed costs are already low in India, partly due to usage of relatively smaller and cheaper turbines. “The total installed cost reduction potential remains significant for many markets, although markets with very competitive cost structures, such as China and India, or restrictive policies, will experience lower than average cost reductions,” IRENA said in its report.
The second is conventional energy capacity additions. Bloomberg New Energy Finance forecasts zero-emission energy sources to make up 60% of global installed power capacity by 2040. In the process, conventional energy sources like coal and gas are expected to take a back seat. A combination of pollution regulations, carbon prices and lack of electricity demand growth are expected to lead to the closure of 286 gigawatts (GW) of coal capacity in OECD (Organisation for Economic Co-operation and Development) economies by 2040. China too is dealing with air pollution and has imposed a moratorium on new coal-fired power post 2020.
In this backdrop, India is the only major country that is expected to see a significant rise in conventional capacity additions, primarily due to steady rise in electricity demand, development of domestic mines and easy access to global coal resources. “Low coal prices also mean more new coal capacity in countries such as India. It will see 258 GW of new capacity and trebling of coal consumption by 2040,” Bloomberg New Energy Finance said in its New Energy Outlook 2016 report. And further, “India once again is the major economy to buck the trend, becoming Asia’s largest gas power market by 2040, with 79 GW of cumulative capacity,” it added.
Third, despite the massive investments in clean energy, world power sector emissions are estimated to rise by 2040, mostly due to the rise in emissions in India and South-East Asia. “Despite $9.2 trillion of new clean energy investment worldwide, equating to $370 billion per year, power sector emissions will still be 5% higher in 2040, as progress in the EU, the US and China is offset by steep emissions growth in India and SE Asia,” Bloomberg New Energy Finance said. Power sector emissions in China are likely to fall by 5% in 2015-40, while they are estimated to treble in India.
Overall, India is likely to travel on a different path in global energy trends. It would be interesting to see how industry participants align to this reality.

10 recommendations of Subramanian Committee on new education policy

Here are top 10 recommendations of the Subramanian Committee suggesting measures that the govt must take to improve the education sector that caters to over 300 million students in the country 

The T.S.R. Subramanian committee, entrusted with preparing a new education policy for India submitted the report to the government in May suggesting measures that the country must take to improve the sector that caters to over 300 million students in the country.

The report, a copy of which has been reviewed by Mint, finds glaring holes in the existing system from primary to tertiary level. Here are top 10 recommendations of the report:
1) An Indian Education Service (IES) should be established as an all India service with officers being on permanent settlement to the state governments but with the cadre controlling authority vesting with the Human Resource Development (HRD) ministry.
2) The outlay on education should be raised to at least 6% of GDP without further loss of time.
3) There should be minimum eligibility condition with 50% marks at graduate level for entry to existing B.Ed courses. Teacher Entrance Tests (TET) should be made compulsory for recruitment of all teachers. The Centre and states should jointly lay down norms and standards for TET.
4) Compulsory licensing or certification for teachers in government and private schools should be made mandatory, with provision for renewal every 10 years based on independent external testing.
5) Pre-school education for children in the age group of 4 to 5 years should be declared as a right and a programme for it implemented immediately.
6) The no detention policy must be continued for young children until completion of class V when the child will be 11 years old. At the upper primary stage, the system of detention shall be restored subject to the provision of remedial coaching and at least two extra chances being offered to prove his capability to move to a higher class
7) On-demand board exams should be introduced to offer flexibility and reduce year end stress of students and parents. A National Level Test open to every student who has completed class XII from any School Board should be designed.
8) The mid-day meal (MDM) program should now be extended to cover students of secondary schools. This is necessary as levels of malnutrition and anaemia continue to be high among adolescents.
9) UGC Act must be allowed to lapse once a separate law is created for the management of higher education. The University Grants Commission (UGC) needs to be made leaner and thinner and given the role of disbursal of scholarships and fellowships.
10) Top 200 foreign universities should be allowed to open campuses in India and give the same degree which is acceptable in the home country of the said university.

Heartfelt congratulations to ABHINAV Bhatt for qualifying Rajasthan PCS mains exam in his first attempt.

Heartfelt congratulations to ABHINAV Bhatt for qualifying Rajasthan PCS mains exam in his first attempt.
A very simple,nice and polite guy who always think about study nothing else.His hard work and in depth study has started to produce result. we wish him best of luck for interview.
‪#‎RASMAINS‬ ‪#‎RPSC‬ ‪#‎ABHINAV‬ ‪#‎PCS‬ ‪#‎UPSC‬ ‪#‎UKPSC‬

A greater focus on farmer welfare There is an emphasis on increasing farm productivity, but this might not always align with greater profitability

A greater focus on farmer welfare

There is an emphasis on increasing farm productivity, but this might not always align with greater profitability 

While inaugurating the Krishi Mela at the Indian Agricultural Research Institute in March, Prime Minister Narendra Modi appealed for a “three-pillared” approach to farming, which included crop farming, agro forestry—that is, planting timber trees along farm peripheries—and animal husbandry.
This is an important enunciation of how Indian agriculture works as an integrated system in which growing crops and rearing livestock coexist.
While over 57% of India’s population depends on agriculture for livelihood, close to 80% of India’s milk, for example, comes from such integrated, “mixed” farming systems. Most farmers in India diversify into different subsectors in an attempt to boost their incomes, and often to mitigate risk.
Indian agriculture has come a long way, with the country among the world’s top seven food exporters today. However, this positive headline obscures continuing challenges with farm productivity and incomes, particularly for small and marginal farmers. While agriculture has progressed significantly, most Indian farmers have not, a key issue being the lack of profitability in farming.
Farmers’ aim is to generate income and make profits to meet living expenses, cover social welfare needs and build assets for their families. Hence, for a farmer, what is significant is not just increased production but rather how much of the production translates into tangible profit.
Most agencies working for farmers focus on increasing farm productivity, but their efforts might not always be aligned with converting increased yield into greater profitability. This fundamental divergence in practical priorities needs to be plugged in order to bridge the gap between what research is keen to deliver and what the farmers are likely to adopt.
The recent rechristening of the ministry of agriculture as the ministry of agriculture and farmers welfare can be realized when there is greater rigour and focus on farmer welfare by optimizing and helping farmers realize the true value of what they produce. The three-pillars message needs better adoption by public sector research, extension and development agencies—which often work in mutually exclusive silos of crops and livestock and typically reach out to farmers through independent, often uncoordinated channels.
This type of compartmentalization can probably end if agricultural universities also adopt a “farming systems” lens that is more aligned with the reality of farming households. The collective impact of India’s large-scale public sector infrastructure in agriculture is reflected in significant improvements in crop and livestock productivity, which is necessary but not sufficient to address the challenges faced by smallholder farmers. What is further required of such platforms and missions is a greater emphasis on an integrated approach and a sustained focus on market development.
The elements that can significantly enable agricultural development are technologies (including appropriate innovations in market systems); extension and dissemination of technologies to farmers; and access to financial services such as loans, savings, remittance and insurance—for achieving higher agricultural productivity, livelihood diversification and improved food security.
Successful implementation of the three-pillared approach will require integration at all levels. We need to balance the existing farming portfolio by increasing emphasis on priority commodities such as livestock and locally relevant legumes and vegetables, while simultaneously exploring the impact potential of new commodities like potatoes. Goods and services reach farmers through both public and private channels. We should leverage the strengths of both sectors—involving the existing community, government and for-profit companies—and streamline the delivery process.
From a financing systems perspective, the newly licensed payments banks can be used to test various digital services such as insurance, direct benefit transfer and savings for smallholders. Measures can include providing funding for proof-of-concept, for-profit goods and services and supporting digitization of financial transactions for key institutions to reduce transaction costs and systems’ leakage.
Providing this initiative with the needed visibility will require a coalition of champions to voice key issues. This can be done by convening a policy advisory group and by partnering with domestic institutions to study the impact of poor land titling and tenancy laws and its impact on smallholders and landless farmers, particularly women.
Our approach must take into account the importance of policy in driving change. For effective policy, we must gather data and analyse evidence on the impact of existing policies, and accordingly modify or revise policies to address constraints.
The latest Union budget offers hope for all three pillars referenced by the prime minister—the total outlay of Rs.35,958 crore is being distributed across important parameters including irrigation, seeds, crop production and livestock. Combined with robust reforms in market development, this could very well transform the lot of Indian farmers by making farming a viable source of livelihood. The ambitious plan of doubling farmers’ incomes in the next five years is not impossible, but will become a reality only when a thrust to markets and farmer incomes will be added to the focus on production. A key task will be to have public sector institutions deliver a “package” of services to farmers, not just for better agricultural output, but for the overall economic well-being of the farming community.