The centrally sponsored Pradhan Mantri Formalization of Micro food processing Enterprises (PMFME) Scheme, launched under the Aatmanirbhar Bharat Abhiyan marks the completion of its one year.
PMFME Scheme
The PMFME Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry.
It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector,
It further aims to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
The scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for upgradation of existing micro food processing enterprises.
Major component of the scheme
One District One Product
Under the One District One Product (ODOP) component of the PMFME Scheme, the Ministry of Food Processing Industries approved ODOP for 137 unique products.
The GIS ODOP digital map of India has been launched to provide details of ODOP products of all the States and UTs.
The digital map also has indicators for Tribal, SC, ST, and aspirational districts.
It will enable stakeholders to make concerted efforts for its value chain development.
HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?
Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you.
A Mentor’s Comment will be available for all answers. This can be used as a guidance tool but we encourage you to write original answers.
You can write your answer on an A4 sheet and scan/click pictures of the same.
Upload the scanned answer in the comment section of the same question.
Along with the scanned answer, please share your Razor payment ID, so that paid members are given priority.
If you upload the answer on the same day like the answer of 1st June is uploaded on 1st June then your answer will be checked within 72 hours. Also, reviews will be in the order of submission- First come first serve basis
If you are writing answers late, for example, 1st June is uploaded on 3rd June, then these answers will be evaluated as per the mentor’s schedule.
We encourage you to write answers on the same day. However, if you are uploading an answer late then tag the mentor like @Swatantra so that the mentor is notified about your answer.
*In case your answer is not reviewed, reply to your answer saying *NOT CHECKED*. Swatantra Sir’s tag is available, tag him.
Doubts are often raised on the ability of CAPF whenever it suffers a setback. It is also suggested that ex-servicemen from the Army should be inducted into the CAPF. The article argues against such suggestions.
Experience of CAPF
The allegations that CAPF personnel are not well-trained falls flat when we look into the history of these paramilitary forces.
Border Security Force (BSF) and Central Reserve Police Force (CRPF) personnel were in the battlefront in the 1971 India-Pakistan war and won medals.
As part of the Indian Peace Keeping Force in Sri Lanka, CRPF personnel fought the militants there.
In 1965, at Sardar Post in the Raan of Kutch, a small contingent of CRPF repulsed a Brigade strength attack of the Pakistan Army.
In Punjab, it was the CRPF alongside the Punjab Police that brought the situation under control.
Credit for peace and tranquillity in the north-eastern States goes in large measure to the CAPF personnel.
Will appointing Army officials as advisers help?
The Army has never fought against the Maoists.
It is absurd to appoint Army officials as advisers for anti-Maoist operations in the Ministry of Home Affairs.
What sort of advice can they be expected to render to the experts of the CAPFs in the field who have spent a major part of their lives combating insurgents and extremists?
Versatile force
The Greyhounds, a specialised commando outfit of erstwhile Andhra Pradesh, was able to inflict heavy casualties on Maoists forcing them to migrate to neighbouring States.
The elite Commando Battalion for Resolute Action (CoBRA) has played a stellar role in killing some top Maoist leaders and continue to be dreaded by the Maoists.
The CAPFs have well-established training centres across the country with instructors of high calibre.
Conclusion
The fact that they are able to tackle terrorism in Kashmir, fight the Maoists in left wing extremism-affected States, combat insurgency in the Northeast, ensure smooth conduct of elections and control riots across the country speaks volumes about their versatility .
The article suggests the privatisation of public sector enterprises by analysing their performance and devising strategy for privatisation accordingingly.
Three categories of public sector enterprises
1) Sick for long time and beyond redemption
There is the category of enterprises which have been sick for a long time.
Their technology, plants and machinery are obsolete.
They should be closed, and assets sold.
The labour in these enterprises have had a political constituency which has prevented closure.
What should be done with these enterprises?
The Government should close these in a time-bound manner with a generous handshake for labour.
After selling machinery as scrap, there would be valuable land left.
Prudent disposal of these plots of lands in small amounts would yield large incomes in the coming years.
All this would need the creation of dedicated efficient capacity as the task is huge and challenging.
These enterprises may be taken away from their parent line Ministries and brought under one holding company.
This holding company should have the sole mandate of speedy liquidation and asset sale.
2) Financially troubled but can be turned around
Private management through privatisation or induction of a strategic partner is the best way to restore value of these enterprises.
Air India and the India Tourism Development Corporation (ITDC) hotels are good examples.
What should be done with these enterprises?
Air India should ideally be made debt free and a new management should have freedom permitted under the law in personnel management to get investor interest.
As valuation rises, the Government could reduce its stake further and get more money.
If well handled, significant revenues would flow to the Government.
3) Profitable enterprises
Pragmatism instead of ideology should guide thinking about them.
The Chinese chose to nurture their good state-owned enterprises as well as their private ones to succeed in the domestic and global markets by increasing their competitiveness in cost, quality, and technology.
The Chinese chose to promote both their public as well as their private sector enterprises to rise.
Both have made China the economic superpower that it is today.
What should be done with profitable enterprises?
The Government can continue to reduce its shareholding by offloading shares and even reducing its stake to less than 51% while remaining the promoter and being in control.
Calibrated divestment to get maximum value should be the goal instead of being target driven to get a lower fiscal deficit number to please rating agencies.
In parallel, managements may be given longer and stabler tenures, greater flexibility to achieve outcomes, and more confidence to take well-considered commercial risks.
Challenges
First, the number of Indian private firms which can buy out public sector firms are very few.
Their limited financial and managerial resources would be better utilised in taking over the large number of private firms up for sale through the bankruptcy process.
Then, these successful large corporates need to be encouraged to invest and grow both in brownfield and greenfield modes in the domestic as well as international markets.
Sale at fair or lower than fair valuations to foreign entities, firms as well as funds, has adverse implications from the perspective of being ‘Atma Nirbhar’.
Again, greenfield foreign investment is what India needs and not takeovers.
Public sector enterprises provide for reservations in recruitment.
With privatisation, this would end and unnecessarily generate social unrest.
Conclusion
Would it be in India’s interest to lose the strategic capacity that its ownership of public enterprises including financial ones provide it? It would be better to think carefully now.
We are pleased to offer completely FREE MEMBERSHIP to 13 extremely engaging UPSC Clubs for students to join NOW! Join the clubs and start learning in a focused manner immediately.
You can choose to join the club that you need the most or all the clubs. There are no strings attached.
GS-1 Salient features of world’s physical geography.
GS-2 Bilateral, regional and global groupings and agreements involving India and/or India’s interests.
GS-3 Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment; Effects of liberalization on the economy
GS-4 Probity in Governance: Concept of public service; Philosophical basis of governance and probity;
HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?
Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you.
A Mentor’s Comment will be available for all answers. This can be used as a guidance tool but we encourage you to write original answers.
You can write your answer on an A4 sheet and scan/click pictures of the same.
Upload the scanned answer in the comment section of the same question.
Along with the scanned answer, please share your Razor payment ID, so that paid members are given priority.
If you upload the answer on the same day like the answer of 1st June is uploaded on 1st June then your answer will be checked within 72 hours. Also, reviews will be in the order of submission- First come first serve basis
If you are writing answers late, for example, 1st June is uploaded on 3rd June, then these answers will be evaluated as per the mentor’s schedule.
We encourage you to write answers on the same day. However, if you are uploading an answer late then tag the mentor like @Swatantra so that the mentor is notified about your answer.
*In case your answer is not reviewed, reply to your answer saying *NOT CHECKED*. Swatantra Sir’s tag is available, tag him.
The ministry of housing and urban affairs recently came out with the draft Model Tenancy Act 2019. The draft Act is aimed at increasing accountability in the rental home ecosystem. It addresses factors like the need to have a formal rent agreement, how much security deposit should be paid, rate of rent increase and grounds for eviction. While the draft tries to strike a balance between the rights of the tenants and homeowners, there is some debate about whether it promotes the interests of one over the other
Why this act?
Restrictive Laws: As per Census 2011, more than 1 crore houses were lying vacant in urban areas. The existing rent control laws are restricting the growth of rental housing and discourage owners from renting out their vacant houses due to fear of repossession.
Large scale informalisation in sector: One of the potential measures to unlock the vacant house is to bringing transparency and accountability in the existing system of renting of premises and to balance the interests of both the property owner and tenant in a judicious manner.
Lack of Uniformity: Since it is a state subject, states have enacted their laws and it differs from one state to another.
Housing Poverty: 2013 report by a Task Force for Rental Housing held that affordable rental housing “addresses the issues of the underprivileged and inclusive growth, in an even more direct manner than affordable ownership housing”. Model Tenancy Act helps bring investment in the sector as the sector provides better safeguards.
Features of act
Mandatory Rent Agreement: The act makes it mandatory to create a written lawful rent agreement between the owner and tenant.
Rent Authority: The Act requires establishing rent authorities in every district to regulate renting of premises.
Both the landlord and tenant will have to submit a copy of the rent agreement to the district Rent Authority.
The proposed authority will also provide a speedy adjudication mechanism for the resolution of disputes.
Tribunal and Courts: It calls for creating dedicated tribunals and courts for dealing with tenancy related disputes.
Security Deposit: The act puts a cap on the amount of security deposit. It will be a maximum of two months of rent in case of residential premises and six months in case of non-residential premises.
Subletting: The act bars tenants from subletting the property in part or whole.
Vacating Rental Premises: It says that if a landlord has fulfilled all the conditions stated in the rent agreement, then the tenant has to vacate the premises.
If the tenant fails to vacate the premises, then the landlord is entitled to double the monthly rent for the first two months and four times after that.
Increase in Rent: The rent can be revised according to the terms and conditions mentioned in the agreement. If there is no such agreement, the landowner will have to give a 3 months notice to the tenant before revising the rent.
Coverage: The Act will apply to premises rented for residential, commercial, or educational use but not for industrial use. It also won’t cover hotels, lodging, etc. This model law will be applied prospectively and will not affect existing tenancies.
Need for Model tenancy act
(1) Unlocking homes
It will unlock vacant houses for rental purposes
It will enable the creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness.
(2) Helping migrants
Rental housing is a preferred option for students and migrants.
It will balance the rights of both landlords and tenants.
(3) Effective negotiations
There is no monetary ceiling under MTA, which enables parties to negotiate and execute the agreement on mutually agreed terms.
It will give confidence to landlords to let out their vacant premises, the housing ministry said.
The Act also tries to address how a renter can legitimately increase the rent.
(4) Control over encroachments
It has proposed limiting the advance security deposits to two months’ rent and has also suggested heavy penalties for tenants who decide to overstay.
Those who do may have to shell out double the rent for two months and even four months.
(5) Rights of tenants
The landowner cannot cut power and water supplies in case of a dispute and would have to provide a 24-hour notice to tenants to carry out repair work.
Should the landlords wish to increase the rent, they will need to provide a three-months notice to the tenants.
These measures would go a long way in protecting the rights of a tenant as it regulates the rent hikes that tenants have had to face.
Scope of coverage
MTA applies to any premises, which is, let separately for residence or commercial or educational use except industrial use.
However, MTA does not provide what constitutes residence/commercial/educational/industrial use. Besides, MTA does not apply to the following premises–
Hotel, lodging house, dharamshala or inn etc.
Premises owned or promoted by:
The Central/ State/ UT Government.
Local Authority.
Government undertaking or enterprise.
Statutory body.
Cantonment board.
Premises owned by a company, university or organization given on rent to its employees as part of service contract.
Premises owned by owned by religious or charitable institutions as may be specified by notification.
Premises owned by owned by any trust registered under the Public Trust Act of the State.
Premises owned by owned by Wakfs registered under the Wakf Act, 1995.
Any other building specifically exempted in public interest through notification.
However, if the owner of any of the premises mentioned in (b) to (g) wishes a tenancy agreement to be regulated under MTA, then he can inform the same to the Rent Authority.
Significance
The model act will be applied prospectively and will not affect existing tenancies.
When enforced in all states, it will lead to a better regulated rental house market for middle and high-income segments.
The Pradhan Mantri Awas Yojana( Housing for all by 2022 mission ) has a component of having 20 per cent of 2 crore houses shall be created exclusively for rent.
This informality is the key reason why this housing segment, despite its huge potential, remains largely untapped. When landlords and tenants have a common platform to refer to understand the market dynamics, the rental housing segment would slowly march towards transparency and a formal setup.
A segment-specific court would mean the grievance redressal mechanism would work efficiently. This would generate in landlords the confidence to let out their units, which they otherwise shy away from, fearing squatting and other such unfavourable consequences.
A cap on security deposits would make a correction in these markets, where housing is expensive and renting is not cheap either.
Squatting by tenants is the key reason why landlords are wary of letting their unoccupied property. Since the policy sets monetary penalties for squatting, landlords will have greater confidence.
This would work as an alternative to eliminate the problem of the housing shortage in view of the ever-increasing population in India.
Drawbacks of the MTA
Non-Binding nature: Land and Urban Development is a state subject. The states may or may not adopt the proposed law, as done by them in the case of Real Estate (Regulation and Development) Act.
Prospective effect: The new model act would have a prospective effect. This means it would be applicable to future disputes only, hence past disputes would continue to linger on for years.
Inadequate Security Cover: Security Cap for two months may not be enough to cover damages, especially during the last month when tenants adjust their rent in the security deposit.
Lacunae in the formation of the Act: The act fails to properly define the term ‘habitation’. Further, it fails to mention the penalty if the owner delays in paying back the security deposit. Also, it is altogether silent on sudden leave and license arrangements.
What is the impact on Real Estate?
Model Tenancy Act will fuel the rental housing supply by attracting more investors
More rental housing stock will help students, working professionals and migrant populations to find urban accommodation.
Aimed at bridging the trust deficit between tenants and landlords by clearly delineating their obligations that will open up more players in the field confidence to landlords.
Attract corporate players to provide serviced apartments for their employees.
Way forward
Protection of rights: The Model Tenancy Act, 2019 is a progressive step in matters related to rent and rental housing in the Indian real estate sector. By combining a range of clauses covering aspects from the security deposit to rent tribunals, the draft policy will aid in protecting the rights of the tenants as well as the property owners.
Special authority setup: It also proposes the establishment of adjudicating authorities in an effort to lessen the burden on lower courts in the matters relating to tenancy. In doing so, it offers a comprehensive and well-structured approach to solving tenancy-related issues in India.
Needs improvement: Although the provisions offer a win-win situation for both tenants and landowners, the scope can still be broadened. For instance, the draft policy should draw a clear distinction between residential tenancies and commercial rental accommodations, which attract higher institutional investments.
Must be made binding: The central and state governments can work in tandem to provide affordable rental housings. This will not only attract a lot of tenants but will also increase the supply of formal rental accommodations.
Taking all the factors into consideration, including the setting up of tribunals and courts, the act does bring transparency, fixes accountability, and promotes fairness in the rental housing segment.
Defence Minister has recently visited the Karwar Naval Base in Karnataka to inspect infrastructure development under Phase II of “Project Seabird”.
Project Seabird
The largest naval infrastructure project for India, Project Seabird involves the creation of a naval base at Karwar on the west coast of India.
INS Kadamba is an Indian Navy base located near Karwar in Karnataka.
The first phase of construction of the base was code-named Project Seabird and was completed in 2005.
INS Kadamba is currently the third-largest Indian naval base and is expected to become the largest naval base in the eastern hemisphere after the completion of expansion Phase IIB.
Why need such a base?
During the Indo-Pakistan War of 1971, the Indian Navy faced security challenges for its Western Fleet in Mumbai Harbour due to congestion in the shipping lanes from commercial shipping traffic, fishing boats and tourists.
At the end of the war, various options were considered on addressing these concerns
Upon completion, it will provide the Indian Navy with its largest naval base on the west coast and also the largest naval base east of the Suez Canal.
The Navy’s lone aircraft carrier INS Vikramaditya is based at Karwar.
A new generation nuclear-capable ballistic missile Agni-P (Prime) was successfully test-fired by the Defence Research and Development Organization (DRDO).
Agni-Prime Missile
Agni-P is a new generation advanced variant of the Agni class of missiles.
It is a canisterised missile with a range capability between 1,000 and 2,000 km.
Many advanced technologies including composites, propulsion systems, innovative guidance and control mechanisms and state-of-the-art navigation systems have been introduced.
The missile strengthens India’s credible deterrence capabilities.
What is the upgrade?
Agni-P has improved parameters including manoeuvring and accuracy.
Canisterisation of missiles reduces the time required to launch the missile while improving its storage and mobility.
What are Agni Missiles?
Agni class of missiles are the mainstay of India’s nuclear launch capability which also includes the Prithvi short-range ballistic missiles, submarine-launched ballistic missiles and fighter aircraft.
The longest of the Agni series, Agni-V, an Inter-Continental Ballistic Missile (ICBM) with a range of over 5,000 km, has already been tested several times and validated for induction.
An arsenal for peace
In the last few years, India has also operationalized its submarine-based nuclear launch capability, completing the nuclear triad.
This is especially important given India’s No-First-Use policy while reserving the right of massive retaliation if struck with nuclear weapons first.
