Food Processing Policy and World Food India 2017

Food Processing Policy and World Food India 2017

Addressing a meeting with the State Food processing Ministers on World Food India, being organized by MoFPI during 3 – 5 November 2017, in New Delhi, Smt. Harsimrat Kaur Badal, Minister of Food Processing Industries unveiled the Draft Food Processing Policy of India and shared the same with state government representatives. The Minister said the National Policy apart from documenting footprints of the food processing sector has drafted considering best practices across states and the world. She said our government is poised to bring about comprehensive National Policy on food processing. We would like all states to follow and be part of the comprehensive National Food Processing Policy. We have brought an Approach Paper on the National Food Processing Policy which is uploaded on the website of Ministry and have invited suggestions from all stakeholders and general public.

Speaking at the session Smt. Badal, said India provides most conducive environment to food processing given parameters and conditions like abundance of food production, abundance of manpower engaged in agriculture and low cost of processing. At the same time Government’s initiative to make India Global Food Factory and Global Food Market brings immense opportunities for food processing sector.The Minister said India isushering in an era of Zero Tolerance towards Post Harvest Wastage, Zero Tolerance on Delays in Commissioning of Food Processing Projects,Zero Tolerance in Delays in obtaining Licenses/Statutory Clearances for Food Processing/ Food Retail Markets by Central/State/Local authority. She said We are bringing in National Food Processing Policy which shall focus on building India’s NATIONAL FOOD GRID and NATIONAL COLD CHAIN GRID and create Retail Markets every nook and corner of the country.

Smt. Badal said the government has introduced reforms like allowing 100% FDI in Multi Brand Retail. Additionally Government has taken several initiatives and announced attractive incentives including capital subsidies, tax rebates, and reduced custom and excise duties. Increasing focus is also being given to supply-chain related infrastructure, such as cold chains, abattoirs and food parks. The whole idea is to spur greater growth in the food processing sector as well as connect farmers with the value chain to increase their returns. It is with this objective that the event ‘World Food India’ has been conceptualized to provide a platform to showcase India’s strengths in the sector and to attract major investments in the sector.

She said Government is organizing BIGGEST EVER GLOBAL FOOD FAIR - WORLD FOOD INDIA 2017 – where all small, big and multinational companies from world over would represent and meet Indian potential companies to partner with. At the same time we expect all state governments and their departments to allow single window clearances and other statutory clearances. Apart from this, all our raw produce and processed food shall be showcased. The Minister added that World Food India 2017 is the step aimed at creating India a Global Food Factory and Global Food Retail Market. Smt. Badal, further shared that the Ministry of Food Processing Industries (MoFPI) was in the process of collating and addressing issues related to the sector, with an aim to facilitate investors and help build investors confidence to boost engagement of foreign investors, at the World Food India, later this year. On this occasion, the Minister launched the website and the Logo of World Food India 2017.

The meeting witnessed participation of the Ministers from Odisha, West Bengal and Jharkhand, as well as senior bureaucrats and officers from more than 25 States and Union Territories, from all across the country. The representatives appreciated the Ministries initiative in organizing ‘World Food India 2017’, timely announcement of the mega event and expressed keen interest in partnering with the mega event.

It may be noted that World Food India 2017 - a three day flagship event is being organized by Ministry of Food Processing Industries in which CII will be event partner from 3-5 Nov 2017 at New Delhi. The event will focus on showcasing achievements and opportunities of the Indian Food Processing Sector and fostering maximum investment commitments. The event will also provide a platform for exhibiting innovative products and manufacturing processes showcasing the entire value chain of food processing industry with a vision to leverage innovation, technology, development & sustainability in the backdrop of achieving food security.

Cabinet approves India's accession to the Customs Convention on International Transport of Goods under cover of TIR Carnets (TIR Convention)

Cabinet approves India's accession to the Customs Convention on International Transport of Goods under cover of TIR Carnets (TIR Convention)

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for India's accession to the Customs Convention on International Transport of Goods under cover of TIR Carnets (TIR Convention) and for completion of necessary procedures for ratification, for its entry into force.

The Convention will help Indian traders to have access to fast, easy, reliable and hassle free international system for movement of goods by road or multi- modal means across the territories of other contracting parties.

By joining the convention, the need for inspection of goods at intermediate borders as well as physical escorts en route shall be obviated due to reciprocal recognition of Customs controls. Customs clearance can take place at internal Customs locations thereby avoiding clearances at Border Crossing Points and ports that may often be congested. Movement under the TIR can be allowed by checking only the seals and the external conditions of the load compartment or the container thereby reducing border delays, transport and transaction costs thereby leading to increased competitiveness and growth for the trade and transport sectors.

Compliance with the Convention shall ensure enhanced security in the supply chain as only approved transporters and vehicles are allowed to operate in terms of the Convention. As the TIR Carnet represents a guarantee for Customs duties and taxes and traffic in transit, there is no need for payment of such taxes and duties en route. The TIR carnet also serves as a Customs declaration, and hence it precludes the need to file multiple declarations satisfying national laws of the different transiting countries. The TIR Convention can be an instrument for movement of goods along the International "North-South" Transport (INSTC) Corridor and would be helpful in boosting trade with the Central Asian Republics and other Commonwealth of Independent States (CIS), particularly using ports in Iran like the Chabahar port.

The proposal does not result in any direct financial implication for the Government of India as it pertains to India's accession to an international convention.

Background:

The Customs Convention on International Transport of Goods under cover of TIR Carnets, 1975 (TIR Convention), is an international transit system under the auspices of the United Nations Economic Commission for Europe (UNECE) to facilitate the seamless movement of goods within and amongst the Parties to the Convention. At present there are 70 parties to the Convention, including the European Union.

More than 30% of India’s youth not in employment, shows OECD report

The Indian economy may be growing more than twice as fast as the rest of the world but the story on job creation and employment fronts is just the opposite

India’s economy may be growing more than twice as fast as the rest of the world but the story on the jobs creation front is just the opposite. India’s economy will grow at 7% in the current fiscal year, according to the Organisation of Economic Cooperation and Development (OECD).

But India’s rate of employment has declined and job creation has not kept up with the growing working-age population.
It lags most other countries in creating quality jobs (see chart).

Over 30% of youth aged 15-29 in India are not in employment, education or training (NEETs). This is more than double the OECD average and almost three times that of China.
NEET is a relatively new concept.
According to the OECD, youth inactivity presents the share of young people (age 15-29) not in employment, education or training (NEET) as a percentage of the total number of young people in the corresponding age group.

“NEETs include all youth left outside paid employment and formal education and training systems. They are NEET because there are not enough quality jobs being created in the system and because they have little incentives or face too high constraints to be in the education and training systems,” said Isabelle Joumard, senior economist and head of the India desk, OECD.
Why does India fare poorly on this front? Several factors are responsible. Labour laws in India are complex and relatively strict. Employment protection legislation is restrictive, compared with other emerging economies and OECD countries, OECD said in its India Economic Survey 2017 report. “Thus, corporates in India tend to rely more on temporary contract labour, stay small or substitute labour for capital to avoid strict labour laws. Apart from that, corporate income tax has created a giant bias against labour-intensive activities,” Joumard added.

The current government is making efforts to correct the situation. It has reduced administrative requirements for complying with existing labour laws and increased transparency in routine interaction between firms and administrations, thereby making the labour regulations friendlier for job creation. More needs to be done to streamline labour laws and states have a role to play too, said Joumard.
The OECD 2017 survey also points out that for India, assessing labour market trends is made difficult by poor employment data, with information for total employment available only every five years. The last NSSO round was held in FY2011-12. More frequent data could help take policy actions in a timely manner. At 3.8% of GDP, public spending on education in India is lower than countries like Brazil and Malaysia. The focus of the government needs to shift to spending on enhancing the quality of education and vocational training. All these measures together could possibly improve India’s track record on job creation.

Cities are the starved engines of India’s growth Poor finances of urban local bodies is holding back India’s urban rejuvenation

In 2015, the Brihanmumbai Municipal Corporation invited volunteers to receive training for killings rats, as its paid rat-killers were not enough to tackle the rodent menace in the teeming metropolis. Sanitation workers of the now-trifurcated Municipal Corporation of Delhi have gone on strike multiple times over non-payment of salaries since the Aam Aadmi Party government took over in 2015, leaving unattended garbage dumps across the national capital. Such examples are the proverbial tip of iceberg of problems facing India’s urban local bodies (ULBs). Most of them are rooted in poor fiscal state of these bodies. And there cannot be a one size-fits-all solution.
A 2016 article in the Economic and Political Weekly (EPW) by Gregory Pierce from the department of urban planning at the University of California, can help understand why this is the case. The paper shows that cities which are further from state capitals have lower revenue generation abilities and hence are more dependent on state governments to take care of their expenses. Similarly, newer cities with lower population densities find it difficult to generate revenues. As of 2001, cities in Uttar Pradesh and West Bengal relied on the state for nearly three-fourths of their revenue. For Punjab and Kerala, it was less than one-fifth. The share of own revenue in total expenditure varies a lot among ULBs of major cities.
According to the India Habitat III report released by the Union ministry of housing and urban poverty, share of own revenue generated by ULBs is just above 50% of their total revenues. The report shows that the situation has deteriorated between 2007-08 and 2012-13. Who is to blame?
Political populism plays a part in frittering of revenue generation capabilities. For example, the Shiv Sena in January promised property tax exemption for residential units up to 500 square feet in Mumbai in an apparent bid to retain power in the municipality.
According to the Economic Survey 2016-17, a document released by Union ministry of finance, Bengaluru and Jaipur are currently collecting no more than five to 20% of the property tax potential.
As own revenue continues to decline, state transfers are also drying. A 2014 study by the Administrative Staff College of India (ASCI) shows that state governments have been transferring less and less amount of funds to ULBs against what is being recommended by State Finance Commissions.
The figure was 97.6% in 2007-08, 89.4% in 2012-13 and 84% in 2013-14.
The 14 Finance Commission (FFC) raised the devolution to ULBs by 277% over the 13 Finance Commission’s (TFC) allocations. Data for 2015-16 shows that only nine states received 100% of the basic grant recommended by the FFC in 2015-16. Nine states received less than half of their allocated basic grants.

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The FFC made grants available to urban local bodies in two parts—basic grant, and performance grant in the ratio of 80: 20. The performance grant would be given if they fulfilled three conditions—have their accounts audited, improve own revenues, and publish service-level benchmarks.
An EPW paper by Indira Rajaraman, a Mint columnist and noted economist, and Manish Gupta from the National Institute of Public Finance and Policy shows that there was a consolidated shortfall of 8.75% in basic grants and 37.8% in performance grants to ULBs between 2010-11 and 2014-15. This suggests that there is a systemic pattern to under-allocation of funds earmarked for ULBs, rather than just underperformance on part of ULBs.
India already fares poorly compared to cities globally in terms of quality of living, as per Mercer’s Quality of Living rankings 2016. Hyderabad, which ranked as the top city in India in the ranking, stood at a low rank of 139 among the 230 cities surveyed. Mumbai and New Delhi ranked 152 and 161, respectively.
To promote competition among cities for better services, the Union urban development ministry is planning a ‘City Liveability Index’ for all cities based on parameters such as air pollution, open space, student-teacher ratio, etc. Without sound finances, such projects are unlikely to take off.
This year’s Economic Survey has dealt with issues surrounding ULBs in detail. While calling upon ULBs to enhance their revenue generation efforts, the survey has also posed a political economy question: should finance commissions continue to increase share of ULBs through diktat or should the issue be left to state governments in keeping with the spirit of federalism. It is imperative that our political leadership finds an effective answer to this question

Cabinet approves Revised Cost Estimate-I of Koteshwar Hydro Electric Project in Uttarakhand

Cabinet approves Revised Cost Estimate-I of Koteshwar Hydro Electric Project in Uttarakhand

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has approved the Revised Cost Estimate-I of 400 MW Koteshwar Hydro Electric Project (HEP) in Uttarakhand at an estimated completion cost of Rs.2,717.35 crore.

The project is being implemented by Tehri Hydro Development Corporation (THDC) India Limited.

In addition to additional generating capacity of 400 MW of peaking power it will regulate releases from Tehri Reservoir for irrigation and drinking water supply. The reservoir of Koteshwar HEP will also act as lower reservoir for under construction Tehri PSP (1000 MW).

Background:

The Project has already been commissioned fully in March, 2012. Only balance works are to be done which are not linked with operation of the Plant but essential for safety and completion of the project.

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How the world’s largest solar park is shaping up in Karnataka

Karnataka govt aims to generate by 2018-end around 2700 MW from the Pavagada solar park, in a region that has seen 54 droughts in the last 60 years

Heat that can give you blisters. Fluoride contaminated water that can leave your bones brittle. Endless stretches of barren land where rains have stayed away for almost half a century. Thorny bushes the only vegetation in sight for miles.

An apt description of Pavagada—less than 200 km from Bengaluru, but it may as well be on another planet. The region is part of a large semi-arid tract in eastern Karnataka’s border district of Tumkur, which sits on an elevated plateau with several rocky hills all around. The state government has had to declare the region drought-hit 54 times in the last 60 years.

The bone-dry region may be a bane for farmers, but could be a godsend for the state government which wants to experiment with something big—build what it claims is the world’s largest solar park.
The aim is to generate around 2700 megawatts (MW) from the Pavagada solar park by the end of 2018. The idea resonates with the centre’s ambitious scheme to generate 100 gigawatts (GW) of solar power by 2020.
Work has begun in right earnest on the project. Roads now cut through the vast expanse of sand. Scores of workers in hard hats and covered in dust are at work, putting up substations and power lines. The first phase capacity of 500MW has been bid out and generation is expected to start in the next four months.

The park’s development is anchored by the Karnataka Solar Power Development Corp. Ltd (KSPDCL), an entity formed in March 2015 as a joint venture between Karnataka Renewable Energy Development Ltd (KREDL) and Solar Energy Corp. of India (SECI).
KSPDCL uses the “plug and play” model, under which it acquires and develops land as blocks for solar power generation, embedded with the required government approvals, and gives it out to solar power developers (SPDs) through auctions.
So far, plot allocation has been completed for 600 MW capacity. Six SPDs—Yarrow Infrastructure, Parampujya Solar Energy Pvt. Ltd, FortumFinnsurya Energy Pvt. Ltd, ACME Solar Holdings Pvt. Ltd, Tata Power Renewable Energy Ltd and Renew Power—have taken over land and commenced work.
The rest of the plots are in various stages of tendering.
The SPDs have, in turn, signed power purchase agreements with electricity supply companies or escoms. The agreements are drafted in such a way that the escoms get 90% of the power generated from the park, at a bundled tariff ranging between Rs3.50 and Rs4.50 a unit.

KSPDCL has managed to acquire 12,000 acres of the 13,000 acres identified for the project, spread across five villages in Pavagada.
“It is a huge achievement. Land acquisition is a major challenge for any big project in India; especially for solar as around five acres of land is needed for 1 MW,” said Deepak Sriram Krishnan, manager of the energy department at World Resources Institute (India), a global non-governmental research organization.
G.V. Balram, managing director of Karnataka Renewable Energy Development Ltd (KREDL) and a Pavagada native, said that the credit for the smooth acquisition should go to the unique model deployed: the government did not acquire the land from farmers; it just sought to lease it for 25 years.
Balram said though farmers were emotionally attached to the land, they were happy to hand it over to a project if they could retain ownership. Farmers have so far not had an issue with the compensation amount—Rs21,000 per acre as lease, with a 5% appreciation every two years.
“Farmers have come to realise that it’s better if they don’t cultivate (the land). Anyway most of the time you don’t get enough rains to sustain the crops and invariably there is crop loss,” said Seshagiri Rao, a farmer and climate researcher who is a resident of a village in Pavagada.
But what will they do if they cannot farm?
“The impact is not that huge. Ten thousand acres is around five villages, so we are talking 5,000 families. I guess they will get jobs somewhere else. After all, we are talking about one of the most-arid regions in the country after Thar desert, where annual average rainfall is only 46 cm between June to November,” added Rao.
However, not everyone is happy. When Mint visited the region, villagers were upset with the government for not assuring power supply and jobs for them. Apparently, neighbours of what is touted as world’s largest solar power project are powerless.
Electricity is available for about three hours a day, though the voltage is too low to pump groundwater, complained many villagers.
State energy minister D.K. Shivakumar says that these issues will be looked at. “This taluk witnesses around 8,000-10,000 people leaving their villages to go work in Bengaluru and other places. We are trying to stop this. The government will make investments of over Rs15,000 crore in the region which will help create jobs.”

Cabinet approves MoU between India and the United Nations Entity of Gender Equality and Empowerment of Women (UN-Women)

Cabinet approves MoU between India and the United Nations Entity of Gender Equality and Empowerment of Women (UN-Women)

Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the signing of Memorandum of Understanding (MoU) between India and the United Nations Entity of Gender Equality and the Empowerment of Women (UN-Women).

The proposal seeks to provide technical support to the Ministry of Panchayati Raj in strengthening capacities of governance institutions including Panchayati Raj Institutions(PRIs) to better leverage opportunities created for gender equality through legislation, policies and programmes.

Ministry of Panchayati Raj (MoPR) and UN-Women have worked in collaboration with each other to promote participation of women in Panchayati Raj Institutions (PRIs), to focus on building capacities of Elected Women Representatives to empower them and enhance their effectiveness. Given the past gains, the two parties will now work together towards participatory design of governance processes and effective implementation of laws, policies and programmes to promote gender responsive governance. The parties agree that engendering the initiatives of MoPR, including capacity development efforts, will be of mutual benefit, and will further their shared mission of good governance, gender equality and women’s empowerment. In the long run, it will enable an improvement in the status of rural women in India, as well as contribute to meeting India’s commitment to the Convention to Eliminate All Forms of Discrimination Against Women (CEDAW), the Beijing Platform for Action and the Sustainable Development Goals.

The proposed MoU will facilitate the achievement of time-bound results in the implementation of specific activities identified jointly by MoPR and UN Women within the broader framework for cooperation under the United Nations Development Assistance Framework ((UNDAF). This MoU would thus facilitate operationalizing this important partnership.