Cabinet approves recommendations of the Sub-Group of Chief Minsters on Rationalisation of Centrally Sponsored Schemes

Cabinet approves recommendations of the Sub-Group of Chief Minsters on Rationalisation of Centrally Sponsored Schemes

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has accepted the major recommendations of the Sub-Group of Chief Minsters on Rationalization of Centrally Sponsored Schemes (CSSs). The Sub-Group had examined 66 CSSs and recommended that the number of CSSs should not normally exceed 30. A consensus was reached on many contentious issues not only between the States represented on the Sub- Group but other States/UTs also through regional consultations and meetings with Union Ministries/Departments.

The rationalization of the CSSs would ensure optimum utilization of resources with better outcomes through area specific interventions. This would also ensure wider reach of the benefits to the target groups.

The Sub-Group was set up in pursuance of the decision taken in the first meeting of the Governing Council of NITI Aayog held on 8^th February 2015. The Guiding Principles of the Sub-Group had been to resolve the issues between Union and the States /UTs and to work as Team India in the spirit of Cooperative Federalism towards realization of the goals of VISION 2022 when we will celebrate the 75th year of Independence. The objectives of the VISION are broadly: (a) providing basic amenities to all citizens in an equitable and just manner for ensuring a life with self-respect and dignity, and (b) providing appropriate opportunities to every citizen to realize his/her potential.

4. The major recommendations of the Sub-Group are as under:

a)      No. of Schemes: The total number of schemes should not exceed 30.

b)      Categorisation of Schemes: Existing CSSs should be divided into Core and Optional Schemes.

        i.            Core schemes: Focus of CSSs should be on schemes that comprise the National Development Agenda where the Centre and States will work together in the spirit of Team India.

      ii.            Core of the Core Schemes: Those schemes which are for social protection and social inclusion should form the core of core and be the first charge on available funds for the National Development Agenda.

    iii.            Optional Schemes: The Schemes where States would be free to choose the ones they wish to implement. Funds for these schemes would be allocated to States by the Ministry of Finance as a lump sum.

List of Centrally Sponsored Schemes in accordance with the National Development Agenda:

SI.No.		Name of the Centrally Sponsored Schemes (CSSs)
(A)		Core of the Core Schemes
1		National Social Assistance Programme
2		Mahatma Gandhi National Rural Employment Guarantee Programme
3		Umbrella Scheme for Development of Scheduled Castes
4		Umbrella Scheme for Development of Scheduled Tribes
5		Umbrella Programme for Development of Minorities
6		Umbrella Scheme for Development of Backward Classes, Differently Abled and other Vulnerable Groups
(B)		Core Schemes
7		Green Revolution (Krishi Unnati Schemes and Rashtriya KrishiVikas Yojana)
8		White Revolution (Animal Husbandry and Dairying)
9		Blue Revolution (Integrated Development of Fisheries)
10		Pradhan Mantri Krishi Sinchai Yojana
	a	Har Khet ko Pani
	b	Per Drop More Crop
	c	Integrated Watershed Development Programme
	d	Accelerated Irrigation Benefit and Flood Management Programme
11		Pradhan Mantri Gram Sadak Yojana (PMGSY)
12		Pradhan Mantri A was Yojana (PMAY)
	a	PMAY-Rural
	b	PMAY-Urban
13		National Rural Drinking Water Mission
14		Swachh Bharat Mission (SBM)
	a	SBM-Rural
	b	SBM-Urban
15		National Health Mission (NHM)
	a	National Rural Health Mission
	b	National Urban Health Mission
	c	Tertiary Care Programmes
	d	Human Resources in Health and Medical Education
	e	National Mission on AYUSH
16		Rashtriya Swasthya Suraksha Yojana (erstwhile RSBY)
17		National Education Mission (NEM)
	a	Sarva Shiksha Abhiyan
	b	Rashtriya Madhyamik Shiksha Abhiyan
	c	Teachers Training and Adult Education
	d	Rashtriya Uchch Shiksha Abhiyan
18		Mid Day Meal Programme
19		Integrated Child Development Services
	a	Anganwadi Services
	b	National Nutrition Mission
	c	Maternity Benefits Programme
	d	Scheme for Adolescent Girls
	e	Integrated Child Protection Scheme
	f	National Creche Scheme
20		Mission for Protection and Empowerment for Women (beti bachao-beti padao, one-stop centre, women helpline, hostels, swadhar greh, gender budgeting etc.)
21		National Livelihood Mission (NLM)
	a	National Rural Livelihood Mission
	b	National Urban Livelihood Mission
22		Jobs and Skill Development
	a	Employment Generation Programmes
	b	Pradhan Mantri Kaushal Vikas Yojna
23		Environment, Forestry and Wildlife (EFWL)
	a	National Mission for a Green India
	b	Integrated Development of Wildlife Habitats
	c	Conservation of Natural Resources and Ecosystems
	d	National River Conservation Programme
24		Urban Rejuvenation Mission (AMRUT and Smart Cities Mission)
25		Modernization of Police Forces (including Security Related Expenditure)
26		Infrastructure Facilities for Judiciary (including Gram Nyayalayas & e-Courts
(C)		Optional Schemes
27		Border Area Development Programme
28		Shyama Prasad Mukherjee Rurban Mission

Funding Pattern would be as follows:

Core of the Core Schemes:

Existing Funding pattern of the Core of the Core Schemes would continue.

Core Schemes:

(a) For 8 North Eastern States and 3 Himalayan States: Centre: State: 90:10

(b) For other States: Centre: State: 60:40

(c) For Union Territories (without Legislature): Centre 100% and for UTs with legislature existing funding pattern would continue.

Optional Schemes:

a) For 8 North Eastern States and 3 Himalayan States: Centre: State: 80:20

b) For other States: Centre: State: 50:50

c)  For Union Territories: (i) (without Legislature) - Centre 100%

         (ii) Union Territories with Legislature: Centre: UT:80:20

Flexibility and Flexi-funds to the States/UTs:

a.       While designing the CSS, the Central Ministries shall permit flexibility in the choice of components to the States as available under the Rashtriya Krishi Vikaas Yojana (RKVY).

b.      Moreover, the flexi-funds available in each CSS has been raised from the current level of 10% to 25% for the States and 30% for the UTs of the overall annual allocation under each Scheme so that the implementation can be better attuned to the needs of individual State /UT.

***

More than 44235 MW accumulative capacity of Renewable Energy installed in the Country

More than 44235 MW accumulative capacity of Renewable Energy installed in the Country

Shri Piyush Goyal, Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines today informed the Lok Sabha in a written reply that total accumulative capacity of over 44235 MW have been installed in the country from various renewable energy sources. These sources include 27151 MW of Wind Power, 7805 MW of Solar Power, 4304 MW of Small Hydro Power and 4975 MW of Biopower.

Shri Goyal stated that Government of India is implementing several scheme for the promotion of Solar Power in the country including hilly/ mountain states like solar rooftop Scheme, scheme on Off-grid & Decentralized Solar Applications, solar Park Scheme for setting up of Solar Parks and Ultra Mega Solar Power Projects targeting over 20,000 MW of solar power projects, scheme for setting up 1000 MW of Grid-Connected Solar PV Power Projects by Central Public Sector Undertakings (CPSUs) and Government of India organisations with Viability Gap Funding (VGF), scheme for setting up over 300 MW of Grid-Connected Solar PV Power Projects by Defence Establishments and Para Military Forces with Viability Gap Funding(VGF), pilot-cum-demonstration project for development of grid connected solar PV power plants on canal banks and canal tops, bundling Scheme - 15000 MW grid-connected solar PV power plants through NTPC Ltd./ NVVN and VGF Scheme for setting up of 2000 MW of Grid Connected Solar PV Power Projects through SECI

Nuclear Reactors Built with Foreign Collaboration

Nuclear Reactors Built with Foreign Collaboration

The details pertaining to under construction nuclear reactors is tabulated below:

Name of the Project	Location	Capacity (MW)	Approved Cost (Rs. in crores)	Status
Projects under Construction / Commissioning
Indigenous Nuclear Power Project(s)
Kakrapar Atomic Power Project (KAPP)-3&4	Kakrapar, Gujarat	2X700	11459	Under various stages of construction. Expected completion by 2018/19
Rajasthan Atomic Power Project (RAPP)- 7&8	Rawatbhata, Rajasthan	2X700	12320
Nuclear Power Project(s) with foreign technical cooperation
Kudankulam Nuclear Power Plant (KKNPP)-2	Kudankulam, Tamil Nadu	1000	17270*	Reactor attained first criticality on July 10, 2016. Expected to start commercial operation in current year -2016.
Projects Accorded Financial Sanction
Indigenous Nuclear Power Project(s)
Gorakhpur Haryana Anu Vidyut Pariyojna (GHAVP) -1&2	Gorakhpur, Haryana	2X700	20594	Work has started. Expected completion by 2023/24.
Nuclear Power Project(s) with foreign technical cooperation
Kudankulam Nuclear Power Plant (KKNPP)- 3&4	Kudankulam, Tamil Nadu	2X1000	39849	Excavation work commenced. Expected completion by 2023/24.

* Cost for KKNPP-1&2, It is under revision to Rs. 22462 crore

Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI), a public sector company under Department of Atomic Energy (DAE) is constructing one 500 MW Prototype Fast Breeder Reactor (PFBR) at Kalpakkam, Tamil Nadu. The design and construction of PFBR is fully indigenous. The project is being built with a total cost of Rs 5677 Cr. Construction of this reactor is completed and commissioning is in advanced stage. The reactor is expected to achieve its first criticality by next year.

Benefits of #GST

GST – A game-changer for India

GST – A game-changer for India
The 122nd Amendment to the Constitution will go down in India’s political-economic history as a watershed, as it is about to give the country the most progressive tax reforms till date in the form of Goods and Services Tax (GST) which should make life easier for the trade and industry and more importantly reduce the cost of goods and services for the consumer, without compromising on the revenues of either the Centre or the States. In fact, the GST should lead to a tax buoyancy and push to the Gross Domestic Product between 1-1.5 per cent with clearance of the cob web of taxes.The excitement among the industry, trade and investors is justified. By a single measure, India would move up the World Bank ranking of ease of doing business by several notches. It is true the GST Bill has been pending for over a decade but the fact that the NDA Government has been able to build a wide political consensus on, what has been the most contentious issue, has conveyed a huge positive signal to the rest of the world that India enjoys a broad political support for the economic reforms, crucial for over a billion people.What is GST?It is a plethora indirect taxes which contribute to bulk of revenues of the states and just about half of the tax kitty of about Rs 16 lakh crore of the Central Government. While direct taxes like the personal income tax concern a small fraction of the population, the indirect taxes affect every Indian. Since the indirect taxes are on consumption , rich and poor , both have to pay the same amount.Presently, the Constitution gives mandate to the Centre and the States to levy indirect taxes ranging from excise duty, customs, service tax. Valued Added Tax or sales tax, entertainment tax, octroi, entry tax, purchase tax, luxury tax and different surcharges. Both the Centre and the States have their own official machineries to collect these taxes. But for Central excise and VAT, most of the taxes get calculated on a base which itself has been subjected to taxation at some or the other stage of manufacturing value chain. So, it is a tax on tax making goods and services rather expensive for the ultimate consumer while making life hard for the trade and industry. The most visible example of inefficiencies of the system can be seen at inter-state borders with long queues of trucks being subjected to different kind of tax inspection and payment of octroi and entry tax, blocking traffic on the highways for hours together.With the roll out of the GST, expected from April 1, 2017, all these taxes would be subsumed into a single tax for the consumer. The Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. Services and goods would be subjected to taxes only on value addition at each stage, thus bringing down the overall tax burden for the consumers.From manufacturing to destinationAs against the present system where the taxes like excise and Central sales tax are levied on manufacturing at the factory gate or on inter-state movement of goods, the GST involves taxation at the destination level. This could mean gains for the consuming state and loss for the manufacturing state. This is why the state with a good manufacturing base like Tamil Nadu was opposed to the GST and consuming states like Bihar, West Bengal and Odisha favoured the same. But, the GST Bill provides for fully compensating the losses to the states for five years. The earlier provision of additional one per cent levy for the losing states has now been done away with.Impact on inflationAnalysts feel that in the short term, there could be some impact on prices of services which now attract an average service tax of around 14 per cent only at the Central level. However, in the case of manufactured products like automobile, the standard GST could be much lower than the combined present effect of excise and state levies. However, in the medium to long term, this should play out. On the whole, GST should be anti-dote to inflation and would thus be people-friendly along with trade /industry friendly. It would also bring in a lot of unorganized sector of the economy within the mainstream.GST RateThere would be about three rates – Standard rate in the form of X which will cover bulk of the items , X-minus for the items of mass consumption and X-plus for the luxury goods or the so-called “sin goods’’. In the Constitutional Amendment, there is no mention of the GST rates, which would be decided by the GST Council comprising of Union Finance Minister as the Chairman and Finance ministers of the states. Any decision of the GST Council would require three-fourth approval of the Council. The states would have two –third of the voting powers and the Centre one-third. The Congress Party has demanded a ceiling of 18 per cent on GST standard rate while the government is called upon to ensure the revenue neutral rate (RNR). Any major deviation from RNR could be counter-productive either for inflation or for fiscal prudence. Getting the right RNR both for the Centre and the states would be a major challenge.Left outPetroleum products and alcoholic beverages have been left out of the GST, for now, on concerns of the states which feared these major revenue heads could not be bargained for. For the sake of wider political consensus, these heads have been left for the future reforms. What Next?After approval of Parliament, the GST Bill would go for ratification by at least half the states. The process is expected to be completed very soon. Afterwards, Parliament will have to again pass two enabling bills – one for the Central GST and the other for the Integrated GST. Besides, the state legislatures will have to pass the enabling law of State GST. In the meantime, work on the central IT backbone being prepared by a non-profit organisation is being done on a war-footing for the possible roll out from the next financial year.

Fourth Advance Production Estimates of Major Crops During 2015-16

Fourth Advance Production Estimates of Major Crops During 2015-16

The 4^th Advance Estimates of production of major crops for 2015-16 have been released by the Department of Agriculture, Cooperation and Farmers Welfare here today.

            The estimated production of major crops during 2015-16 is as under:

Ø  Foodgrains  –  252.22 million tonnes

·   Rice  –  104.32 million tonnes

·   Wheat – 93.50 million tonnes

·   Coarse Cereals  –  37.94 million tonnes

Ø Pulses  –  16.47 million tonnes

Ø   Oilseeds  –  25.3 million tonnes

Ø   Cotton  –  30.147 million bales (of 170 kg each)

Ø   Sugarcane – 352.163 million tonnes

Despite setback due to deficient rainfall and due to shortage of water in reservoirs. As per the 4^th  Advance Estimates for 2015-16 total foodgrains production in the country has been higher than that in the last year. Total foodgrains production during 2015-16, estimated at 252.22 million tonnes, has been higher by 0.20 million tonnes over the production of 252.02 million tonnes during 2014-15.   

Total production of rice during 2015-16 is estimated at 104.32 million tonnes, which is lower by 1.16 million tonnes than its production of 105.48 million tonnes during 2014-15.  Production of wheat estimated at 93.50 million tonnes is higher by 6.97 million tonnes than the production of 86.53 million tonnes of wheat during 2014-15.

            Total production of coarse cereals is estimated at 37.94 million tonnes which is lower by 4.92 million tonnes as compared to their production of 42.86 million tonnes during 2014-15. Total pulses production of 16.47 million tonnes during 2015-16 is marginally lower than the previous year’s production of 17.15 million tonnes.  With a decline of 2.207 million tonnes over the previous year’s production’s total oilseeds production in the country during 2015-16 is estimated at 25.304 million tonnes.  

            Production of sugarcane estimated at 352.16 million tones, is lower by 10.17 million tonnes than its production during 2014-15. Production of Cotton estimated at 30.147 million bales (of 170 kg each) is also lower by 4.658 million bales than its production of 34.805 million bales during 2014-15.