The Government of India, recognizing agriculture as a State subject, actively supports State governments through various policy measures and budgetary allocations aimed at improving the welfare of farmers.
Below are some key initiatives approved by the Union Cabinet:
Objective: Enhance quality and productivity of horticulture crops.
Key Features: Focus on providing disease-free planting material, promoting climate-resilient varieties, reducing crop losses, and improving horticultural produce quality.
Financial Support: 50% from Mission for Integrated Development of Horticulture (MIDH) budget and 50% as a loan from the Asian Development Bank (ADB).
Implementation: Establishment of 9 Clean Plant Centers (CPCs) for disease diagnostics, treatments, and quarantine; development of large-scale nurseries for clean planting material propagation; creation of a regulatory and certification framework to ensure traceability in planting material production.
Objective: Create a robust digital ecosystem for farmers by providing timely and reliable crop-related information.
Key Features: Establish Agristack, Krishi Decision Support System (DSS), Comprehensive Soil Fertility & Profile Map, Digital General Crop Estimation Survey (DGCES), and expansion of IT platforms like Krishi Nivesh Portal and Krishi-DSS Portal.
Digital Infrastructure: Promotes farmer-centric solutions, digitization, and technology-enabled agricultural services.
(Discussed in detail in one of the today’s articles.)
Objective: Enhance agricultural infrastructure across India.
Key Features: Loans up to ₹2 crores with 3% interest subvention for 7 years. Covers a wide range of entities like PACS, FPOs, self-help groups, agri-entrepreneurs. 24% reserved for SC/ST entrepreneurs.
Credit Guarantee: Available under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for loans up to ₹2 crores. Integration: Linked with PM Kusum ‘A’ and other community farming assets projects to enhance agricultural production.
Objective: Boost domestic oilseed production and achieve self-reliance in edible oils.
Implementation Period: 2024-25 to 2030-31
Key Features: Target to increase oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31. Focus on key oilseeds like rapeseed, mustard, groundnut, soybean, sunflower, and Sesamum.
Expansion: Oilseed cultivation in rice fallow areas, and intercropping. Setting up 65 new seed hubs and 50 seed storage units. Development of over 600 Value Chain Clusters in 347 districts.
Objective: Promote natural farming practices across India.
Key Features: Focus on Bhartiya Prakritik Krishi Paddhati (BPKP), scaling up natural farming across 7.5 lakh hectares through 15,000 clusters.
Financial Assistance: ₹15,000 per hectare for 3 years to farmers for infrastructure creation.
Infrastructure: Establishment of 15,000 BRCs to facilitate access to bio-inputs like cow dung, neem, and bioculture. Master Trainer Program for large-scale training on natural farming techniques.
Additional Key Programmes Initiated in 2024-25
National Pest Surveillance System (NPSS): To monitor and control pest infestations.
AgriSURE: A fund for start-ups and rural enterprises in agriculture.
Krishi Nivesh Portal (Phase-I): A platform for facilitating investments in the agriculture sector.
Krishi-DSS Portal: A geospatial platform to provide decision support for Indian agriculture.
The Ministry of Agriculture & Farmers’ Welfare has provided details of the progress and implementation of Digital Agriculture Mission (DAM).
Progress as of December 2024:
As of 5th December 2024, the following progress has been reported:
29,99,306 Farmer IDs have been created.
Digital Crop Survey (DCS) has been conducted in 436 districts during the Kharif 2024 season.
About theDigital Agriculture Mission (DAM):
Details
Overview and Launch
Digital Agriculture Mission (DAM) was approved on 2nd September 2024 with an outlay of ₹2817 Crore.
Initially planned for the financial year 2021-22, but delayed due to the COVID-19 pandemic.
Aligned with the Union Budget 2024-25 and 2023-24 announcements for implementing Digital Public Infrastructure (DPI) in agriculture.
Aims and Objectives
Digital Identities for 11 crore farmers are targeted over the next 3 years: 6 crore in FY 2024-25, 3 crore in FY 2025-26, and 2 crore in FY 2026-27.
Digital Crop Survey to be launched nationwide: 400 districts in FY 2024-25 and all districts in FY 2025-26.
Provisions and Features
AgriStack: Includes 3 foundational registries:
1. Farmers’ Registry: A database recording information about farmers.
2. Geo-referenced Village Maps: Digital maps providing geographical data related to agricultural areas.
3. Crop Sown Registry: A digital registry tracking crops sown by farmers.
Krishi Decision Support System (DSS): Designed to assist farmers in making data-driven decisions related to farming practices. It integrates remote sensing data on crops, soil, weather, and water resources into a comprehensive geospatial system.
Comprehensive Soil Fertility & Profile Map: A map designed to help farmers understand soil health, enabling informed decisions about fertilizer usage and crop selection.
Digital General Crop Estimation Survey (DGCES): Provides yield estimates based on scientifically designed crop-cutting experiments.
Soil Profile Mapping: Detailed soil profile maps on a 1:10,000 scale for approximately 142 million hectares of agricultural land.
Structural Mandate
Supported by the Central Government, State Governments, and Academic & Research Institutions for successful implementation.
AgriStack is designed as a federated structure, where State Governments retain ownership of the data.
The system follows privacy standards set by the Digital Personal Data Protection (DPDP) Act, 2023, ensuring data security and privacy.
PYQ:
[2017] What is/are the advantage/advantages of implementing the ‘National Agriculture Market’ scheme?
It is a pan-India electronic trading portal for agricultural commodities.
It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.
Select the correct answer using the code given below:
PYQ Relevance: Q) What are the salient features of the National Food Security Act, 2013? How has the Food Security Bill helped in eliminating hunger and malnutrition in India? (UPSC CSE 2021)
Mentor’s Comment: UPSC Mains have always focused on ‘Food Security’ (in 2021), ‘conventional energy generation’ (in 2020) and ‘India’s Energy Security’ (in 2017).
“Food insecurity and energy poverty are critical to ensuring global stability, but addressing them in isolation is inadequate,” cautions the World Bank in its latest climate and development report. The intertwined crises of food and energy security are shaping the course of the 21st century, posing significant threats to global stability. Food production is under pressure from climate change, population growth, and inequality, while energy systems grapple with geopolitical conflicts, aging infrastructure, and a slow shift away from fossil fuels.
Today’s editorial explores their deep interconnection and intensifies the challenge: agriculture, vital for humanity, is both a major energy consumer and a driver of climate change.
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Let’s learn!
Why in the News?
In a virtual address at the 5th Energy Finance Conference, it was emphasized that energy-reliant agricultural systems struggle to adapt to climate-induced changes in food production, underscoring their interlinked challenges.
Impact of Energy Price Fluctuations on Food Production and Security
Dependency on Fossil Fuels: Agriculture relies heavily on fossil fuels for mechanization, irrigation, fertilizer production, and transportation. This dependence creates a cycle where rising energy prices lead to increased costs for food production, directly impacting food security.
Volatility in Natural Gas Prices: Natural gas is crucial for fertilizer production so fluctuations in its prices can significantly affect fertilizer costs and, consequently, global food prices. For instance, geopolitical actions such as export bans can disrupt supply chains, exacerbating food insecurity in countries reliant on imports.
Climate Change Effects: Erratic weather patterns due to climate change further strain agricultural output, putting the livelihoods of billions at risk.
Nearly 11.8% of the global population faced severe food insecurity between 2020 and 2023, a figure expected to rise significantly.
Role of Sustainable Energy in Enhancing Food Security
Renewable Energy Investments: The transition to renewable energy presents opportunities for enhancing food security. Investments in renewable technologies can help reduce reliance on fossil fuels and lower operational costs for agricultural practices.
Innovative Solutions: Solar-powered irrigation and biomass energy solutions could transform agricultural productivity. However, high costs and inadequate infrastructure limit their adoption in low-income countries where they are needed most.
Reducing Vulnerability: Clean energy solutions can help mitigate the vulnerability of food systems to energy price shocks. By integrating renewable energy into agricultural practices, countries can improve resilience against climate-induced disruptions.
Strategies to Address the Nexus of Water, Energy, and Food Security (Way Forward)
Integrated Policy Approaches: A holistic approach that integrates water management with energy and food policies is essential. This includes promoting water-efficient agricultural practices and investing in infrastructure that supports sustainable resource management.
Investment in Renewable Technologies: Increasing investments in renewable energy infrastructure can support agricultural productivity while reducing carbon emissions. This includes expanding access to clean energy solutions for rural areas to enhance agricultural efficiency.
Financial Support for Vulnerable Communities: Providing financial resources and technical support to low-income nations is crucial for enabling them to transition towards sustainable practices without exacerbating poverty. Targeted investments can help build resilience against climate impacts while ensuring food security.
The Economic Survey (2023-24) claims that India has managed to grow its economy without significantly increasing its greenhouse gas emissions. This claim has sparked the debate about actual sustainable growth in India.
What does the Economic Survey (2023-24) say about GHG emissions?
Relative Decoupling Achieved: Between 2005 and 2019, India’s GDP grew at a 7% CAGR, while GHG emissions increased by 4%.
Emission Intensity Reduction: India reduced emission intensity by 33% from 2005 levels, achieving its 2030 NDC target 11 years early.
Carbon Sink Expansion: India aims to add a 2.5–3 billion tonne carbon sink by 2030, building on the 1.97 billion tonnes achieved (2005–2019).
Investment Needs: Achieving NDC targets requires $2.5 trillion by 2030, with a focus on domestic resources, affordable finance, and technology access.
Has India decoupled its economic growth from GHG emissions?
Arguments against decoupling:
The Economic Survey does not clarify whether the observed decoupling is absolute (declining emissions with GDP growth) or relative (emissions rising slower than GDP).
India has achieved economy-wide relative decoupling since 1990, with GDP growing six-fold while GHG emissions have only tripled. However, absolute decoupling has not been achieved, as emissions continue to rise.
Agriculture and manufacturing, major contributors to India’s GHG emissions, require detailed sectoral analysis.
Argument in favour of decoupling:
The Economic Survey indicates that between 2005 and 2019, India’s GDP grew at a compound annual growth rate (CAGR) of approximately 7%, while GHG emissions grew at a CAGR of only 4%.
India has successfully reduced its emission intensity by 33% from 2005 levels, achieving its initial Nationally Determined Contribution (NDC) target for 2030 eleven years ahead of schedule. This reduction indicates that India is managing to grow economically while lowering the emissions per unit of GDP.
India is on track to create an additional carbon sink of 2.5 to 3.0 billion tonnes (installed electricity generation capacity reaching 45.4% by May 2024) through tree and forest cover by 2030, building on a carbon sink of 1.97 billion tonnes established from 2005 to 2019.
What are the steps taken by the Government?
The Economic Survey 2023-24 outlines several key steps taken by the Indian government to address greenhouse gas (GHG) emissions and promote sustainable development:
Reduction of Emission Intensity: India has successfully reduced its emission intensity by 33% from 2005 levels, achieving its initial Nationally Determined Contribution (NDC) target for 2030 eleven years ahead of schedule.
This significant reduction demonstrates the effectiveness of various climate action strategies implemented by the government.
Investment in Renewable Energy: The government has made substantial progress in expanding renewable energy capacity.
As of May 31, 2024, non-fossil sources accounted for 45.4% of the total installed electricity generation capacity in India, up from 32% in 2014.
Additionally, India added 15.03 GW of solar power capacity in 2023-24, bringing the cumulative total to 82.64 GW.
Creation of Carbon Sinks: The survey highlights that India is on track to create an additional carbon sink of 2.5 to 3.0 billion tonnes through tree and forest cover by 2030, building upon the 1.97 billion tonnes of CO2 equivalent already achieved from 2005 to 2019.
Sovereign Green Bonds: The government has raised funds through sovereign green bonds, amounting to ₹36,000 crore in 2023, to finance public sector projects aimed at reducing emissions and promoting sustainable practices.
Framework for Green Finance: The Reserve Bank of India (RBI) has implemented a framework for accepting green deposits and promoting renewable energy through its Priority Sector Lending (PSL) rules, fostering a green finance ecosystem in the country.
Adaptation Expenditure: India’s climate adaptation expenditure has increased from 3.7% of GDP in 2015-16 to 5.6% in 2021-22, indicating a greater integration of climate resilience into development plans.
What efforts must be continued by India? (Way forward)
Pursuit of Absolute Decoupling: To achieve long-term climate commitments and sustainability goals, India must strive toward absolute decoupling, where economic growth continues alongside a reduction in emissions.
This requires comprehensive policies focused on renewable energy adoption, emission mitigation strategies, and sustainable development initiatives.
Investment in Renewable Energy and Climate Resilience: Continued efforts are necessary to enhance investments in renewable energy sources and technologies, alongside measures to improve energy efficiency and reduce reliance on fossil fuels.
Mains PYQ:
Q Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC IAS/2021)
Environmental activists protested outside the Madurai District Collector’s office (Tamil Nadu), voicing their opposition to Vedanta’s auction win for Tungsten Mining Rights in Melur, following the Ministry of Mines‘ announcement
Why have there been protests over mining Rights?
Environmental Concerns: Activists and residents are vehemently opposing the tungsten mining project due to its potential impact on biodiversity. Because of the fears that mining activities could irreparably damage these sites and disrupt local ecosystems, including vital water sources like the Periyar canal.
Community Impact: Locals fear that mining will threaten their livelihoods, as many depend on agriculture and local resources. The protests have seen significant participation from various villages in the region, highlighting widespread community opposition to the project.
Political Response: The Chief Minister of Tamil Nadu has called for the cancellation of the mining rights and plans to introduce a resolution in the Tamil Nadu Assembly to formally reject the mining project. He emphasizes that any mining activity in these areas would be unacceptable without state consent.
What does the Ministry of Mines say about Mining?
Auction of Mineral Blocks: The Nayakkarpatti Tungsten Block covering an area of over 20.16 sq. km. was proposed for auction in February 2024. Inputs were taken from the state government of Tamil Nadu before the block was put up for auction.
The Ministry cited the Mines and Minerals (Development and Regulation) Act of 1957 as the legal framework enabling this auction process.
Mineral Richness: The Ministry also noted that the area designated for tungsten mining was found to be rich in scheelite (a crucial ore for tungsten extraction), thus justifying its selection for mining activities.
About the Mines and Minerals (Development and Regulation) Act of 1957:
The Mines and Minerals (Development and Regulation) Act, 1957, provides a framework for the regulation of mining activities in India, governing the exploration, licensing, and development of minerals except for petroleum and natural gas.
It empowers the central government to specify major minerals and the state governments to regulate minor minerals, ensuring a structured division of responsibilities in mineral resource management.
Major minerals are high-value minerals that include coal, lignite, iron ore, bauxite, gold, silver, zinc, copper, manganese, and other ores critical for industrial and strategic purposes.
Minor minerals are low-value, non-metallic minerals primarily used in construction and local industries, such as sand, gravel, clay, building stones, marble, and slate.
Is there a Centre-State rift?
Yes, a notable rift exists between the Tamil Nadu government and the Union government regarding this issue.
Lack of State Consent: The Tamil Nadu government claims it did not provide consent for the auction and had previously communicated concerns regarding environmental implications. In contrast, the Union government contends that there was no formal opposition from Tamil Nadu during the auction process.
Political Tensions: This situation has led to heightened tensions between the state and central governments, with accusations from Tamil Nadu officials that their concerns were ignored by the Union government when granting mining rights to Hindustan Zinc Limited.
Can the state government supersede the authority of the central government in this matter?
In the context of mining rights and environmental matters, the state government cannot directly override the power of the central government. However, there are several ways available to the state government to influence or challenge the decision made by the Union government.
Constitutional Framework: The Indian Constitution divides powers between the Union and states; mining regulation is under the Union List, while environmental protection is in the Concurrent List, granting states authority over local environmental issues.
Biodiversity & Environmental Protection: States can challenge mining projects through laws like the Environmental Protection Act (1986) and Biological Diversity Act (2002), or by passing laws to protect ecologically sensitive areas.
State Assembly’s Role: The state legislature can pass resolutions expressing opposition to federal actions, and applying political pressure on the Union government, especially with public protests.
Judicial Review & Coordination: States can seek judicial review if Union actions violate constitutional or environmental laws. While states cannot override central mining rights, cooperative federalism emphasizes consultation between the Union and states.
Way forward:
Enhanced State-Central Coordination: Establish a more transparent and binding consultation process between the state and central governments before granting mining rights, ensuring that local concerns and state consent are prioritized, especially for ecologically sensitive areas.
Thorough Environmental Review: Implement a mandatory, independent Environmental and Social Impact Assessment (ESIA) for mining projects in biodiversity hotspots, incorporating input from local communities, environmental experts, and authorities to address potential ecological and socio-economic impacts.
Mains PYQ:
Q Coastal sand mining, whether legal or illegal, poses one of the biggest threats to our environment. Analyse the impact of sand mining along the Indian coasts, citing specific examples. (UPSC IAS/2019)
The Biju Janata Dal (BJD) has restarted its protest against the Polavaram multipurpose project in Andhra Pradesh, claiming it will flood large areas in Malkangiri, Odisha, displacing many tribal communities.
What were the recommendations by the Godavari Water Disputes Tribunal (GWDT) 1969?
The Godavari Water Disputes Tribunal (GWDT), was established to resolve water-sharing disputes concerning Godavari River water among the states of Andhra Pradesh, Maharashtra, and Madhya Pradesh (now Chhattisgarh). It made several key recommendations regarding the utilization of Godavari River water. Notable points include:
Water Allocation: The Tribunal allowed Andhra Pradesh to divert 80 TMC (thousand million cubic feet) of Godavari water at 75% dependability for irrigation and other uses, which could also substitute releases from the Nagarjunasagar project for the Krishna delta.
Inter-State Agreements: The Tribunal recognized various inter-state agreements that specified how water from the Godavari and its tributaries could be utilised, ensuring equitable distribution among the states involved.
Project Approvals: The GWDT endorsed the construction of projects like Polavaram, provided they adhered to specified Full Reservoir Levels (FRL) and operational guidelines.
What are the social and environmental impacts of the Polavaram Project?
Social Impact: The project is expected to displace over 150,000 people across approximately 276 villages, with many of these being tribal communities. For every five acres irrigated, one tribal family is projected to lose their land.
Infrastructure Strain: The project has faced funding challenges for rehabilitation efforts, leading to halted work on necessary infrastructure like canals, which could exacerbate social tensions among displaced populations.
Environmental Impact: The dam’s backwaters will submerge an estimated 3,731 hectares of forest land. The environmental impact assessments have raised concerns about ecosystem disruption, including increased vulnerability to erosion and regional landslides.
How is the project being managed politically and administratively?
National Project Status: Declared a national project under the Andhra Pradesh Reorganisation Act of 2014, the Central Government is responsible for executing the project while ensuring compliance with environmental and rehabilitation norms.
Polavaram Project Authority: A governing body has been established to oversee project execution, comprising representatives from both state and central governments. This authority is tasked with ensuring timely execution and adherence to regulatory requirements.
Political Dynamics: The project has become a focal point for regional politics, particularly as parties like the BJD leverage opposition against it to bolster their regional identity amidst changing political landscapes in states like Odisha.
What are the legal and regulatory challenges faced by the Polavaram Project?
Ongoing Litigation: Multiple states have challenged the project in court on grounds of inadequate environmental assessments and potential adverse impacts on their territories. Legal disputes have persisted since at least 2011, complicating project timelines.
Regulatory Compliance Issues: Environmental clearances for the project have been contentious, particularly following changes in flood situation estimates that were not incorporated into updated designs. This has raised questions about compliance with earlier environmental impact assessments conducted in 2005.
Funding Challenges: Financial constraints have hindered progress on rehabilitation efforts for displaced populations, leading to further legal scrutiny regarding compliance with social justice norms and commitments made during project approval processes.
Way forward:
Comprehensive Impact Assessment and Mitigation: Conduct updated environmental and social impact assessments, including backwater studies, and implement robust mitigation measures for displaced populations, ensuring compliance with legal and regulatory frameworks.
Strengthen Inter-State Collaboration: Establish a transparent and inclusive mechanism involving all affected states to address concerns, promote equitable resource sharing, and expedite the resolution of legal and administrative challenges.
Mains PYQ:
Q Constitutional mechanisms to resolve the inter-state water disputes have failed to address and solve the problems. Is the failure due to structural or process inadequacy or both? Discuss. (UPSC IAS/2013)
Manufacturing output grew by 21.5% in 2022-23, but the GVA (Gross value addition) only grew by 7.3%. This is because input costs increased sharply by 24.4%, making production more expensive. As a result, even though industries produced more, their profits and value-added were reduced.
Note:GVA represents the value added by industries, while manufacturing output refers to total production. GVA reflects the economic contribution, factoring in costs like inputs.
What is the present scenario of India’s manufacturing sector?
Growth Momentum: India’s manufacturing sector is experiencing significant growth, with a reported output increase of 21.5% in 2022-23, as indicated by the Annual Survey of Industries (ASI).
This growth is attributed largely to the Production Linked Incentive (PLI) scheme, which has played a crucial role in boosting production across various sectors, including electronics, pharmaceuticals, and automobiles.
Sectoral Contributions: Key sectors benefiting from the PLI scheme, such as basic metals and motor vehicles, collectively contributed 58% to total manufacturing output, showcasing robust performance driven by these incentives.
Positive Economic Indicators: The gross value added (GVA) from manufacturing grew by 7.3%, highlighting an overall recovery in the sector post-COVID-19 disruptions.
What are the current challenges facing the manufacturing sector?
Input Cost Surge: A significant challenge is the rising input prices, which increased by 24.4% in 2022-23. This surge has created a gap between manufacturing output growth and GVA growth, indicating that while production volumes are increasing, profitability is being squeezed due to higher costs.
Regional Imbalance: Manufacturing activity is heavily concentrated in a few states—Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh—accounting for over 54% of total manufacturing GVA. This concentration limits equitable development across the country.
Skill Development Needs: There is a pressing need for skill enhancement to meet the demands of evolving manufacturing technologies and processes.
How can digital transformation contribute to the future of manufacturing?
Adoption of Advanced Technologies: Digital transformation can enhance manufacturing efficiency through automation, data analytics, and IoT (Internet of Things) integration. This can lead to improved productivity and reduced operational costs.
Supply Chain Optimization: Digital tools can streamline supply chain management, making it more resilient to disruptions and better able to respond to global demand fluctuations.
Enhanced R&D Capabilities: Investing in digital technologies can foster innovation in product development and advanced manufacturing techniques, positioning India as a leader in high-tech manufacturing sectors.
What strategies can be implemented to stimulate growth in manufacturing? (Way forward)
Expand PLI Scheme Scope: To further stimulate growth, the PLI scheme should be extended to include labour-intensive sectors such as apparel and furniture, as well as emerging industries like aerospace and space technology. This could unlock new growth opportunities and reduce import dependency.
Streamline Import Regime: Implementing a simplified three-tier tariff system for imports—0–2.5% for raw materials, 2.5%–5% for intermediates, and 5%–7.5% for finished goods—could help lower input costs and enhance competitiveness.
Focus on MSMEs: Tailoring PLI incentives for micro, small, and medium enterprises (MSMEs) by lowering capital investment thresholds could empower these businesses to scale up and innovate.
Mains PYQ:
Q Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)
The Ministry of Agriculture & Farmers Welfare has provided state-wise details of farmers registered under the Pradhan Mantri Kisan Maan Dhan Yojana (PMKMY).
Top Three States: Haryana (5,74,467), Bihar (3,45,038), Chhattisgarh (2,02,734).
Bottom Three States/UT: Lakshadweep (72), Ladakh (114), Goa (150).
Recently, the PMKMY (launched on 12th September 2019) has completed 5 successful years.
About Pradhan Mantri Kisan Maan Dhan Yojana (PMKMY)
Details
Type: Central Sector Scheme Objective: To provide a voluntary, contributory pension scheme for farmers aged 18–40 years, ensuring ₹3,000/month pension after they turn 60 years of age.
Implementation & Structural Mandate
Implemented by: Ministry of Agriculture and Farmers Welfare Pension Fund Manager: Life Insurance Corporation (LIC) of India State-wise Registration: Registered farmers are managed by the respective state governments in collaboration with LIC. The scheme encourages a structured approach involving the collection of contributions and government matching funds. Contribution: Farmers contribute between ₹55 and ₹200 per month, depending on their entry age.
Beneficiaries & Benefits
Beneficiaries: Farmers aged 18–40 years. Benefits: Assured pension of ₹3,000 per month post-60 years, matching contribution by the Government of India, administered by LIC. Exclusions: Income taxpayers, members of government pension schemes, and those already enrolled in other pension schemes.
PYQ:
[2020] In India, which of the following can be considered as public investment in agriculture? (2020)
Fixing Minimum Support Price for agricultural produce of all crops
Computerization of Primary Agricultural Credit Societies
Social Capital development
Free electricity supply to farmers
Waiver of agricultural loans by the banking system
Setting up of cold storage facilities by the governments
Select the correct answer using the code given below:
The Rajya Sabha passed the Oilfields (Regulation and Development) Amendment Bill, 2024, aimed at boosting domestic petroleum and mineral oil production while encouraging private investment to reduce reliance on imports.
What is the Oilfields Bill?
The Oilfields Bill amends the Oilfields (Regulation and Development) Act of 1948, which originally governed both oil and mineral operations. The amendment seeks to delineate the regulation of petroleum from mining activities, aligning it more closely with contemporary needs in the oil and gas sector. By doing so, it aims to boost domestic production and reduce reliance on imports.
What are the major proposed changes?
Definition of Mineral Oils: The Bill expands the definition of “mineral oils” to include naturally occurring hydrocarbons such as crude oil, natural gas, coal bed methane, and shale gas/oil. However, it explicitly excludes coal, lignite, and helium from this definition.
Introduction of Petroleum Leases: The Bill replaces references to “mining leases” with “petroleum leases,” defining these leases as agreements for various activities including exploration and production of mineral oils. Existing mining leases will remain valid under this new framework.
Decriminalization of Offences: The Bill removes criminal penalties for violations of the Oilfields Act, replacing them with financial penalties. For instance, violations that previously could lead to imprisonment will now incur fines up to ₹25 lakh, with additional daily penalties for ongoing violations.
Central Government Powers: The Bill empowers the central government to create rules regarding the granting and regulation of petroleum leases, including aspects like environmental protection and dispute resolution mechanisms.
Encouragement of Private Investment: It includes provisions aimed at attracting private investment into the sector by ensuring stable lease terms and clarifying regulatory frameworks.
What are the criticisms and concerns?
Impact on State Rights: Critics, including members from the DMK party, argue that the Bill undermines state rights regarding taxation on mining activities. They fear that redefining leases could shift regulatory power away from states to the central government, potentially affecting state revenue from royalties.
Legal Challenges: There are concerns that framing petroleum operations under a different legal category could lead to conflicts with existing judicial rulings that affirm state powers over mining taxes. A recent Supreme Court ruling emphasized that states have exclusive rights to tax mining activities.
Environmental Concerns: Opposition members have raised alarms about the potential environmental impacts of allowing greater private sector involvement in petroleum extraction. They advocate for prioritizing public sector companies like ONGC over private entities.
Way forward:
Balanced Federal Approach: Establish a collaborative mechanism between the Centre and states to address concerns over taxation and royalties, ensuring equitable revenue sharing while maintaining clear regulatory roles.
Sustainable Exploration Framework: Mandate robust environmental safeguards and prioritize public sector leadership alongside private investment to balance economic growth with ecological preservation.
Mains PYQ:
Q “In spite of adverse environmental impact, coal mining is still inevitable for Development”. Discuss. (UPSC IAS/2017)
Six out of the 14 Production-Linked Incentive (PLI) schemes, including textiles, solar modules, IT hardware, automobiles, advanced chemical cells (ACC), and speciality steel, are progressing at a relatively slower pace.
What are the primary reasons for the slow implementation of PLI schemes?
Stringent Eligibility Norms: Many industries have reported that the eligibility criteria for participation in PLI schemes are too stringent, which limits the number of companies that can benefit from the incentives.
Initial Setup Challenges: Establishing a domestic manufacturing base from scratch is a monumental task. Industries such as solar modules and advanced chemistry cells (ACC) require substantial time—ranging from one-and-a-half to three years—to set up manufacturing operations, delaying employment generation.
Access to Resources: Companies face difficulties in accessing critical resources, including Chinese machinery and skilled technicians, which can hinder their ability to ramp up production quickly.
Market Dependency: Some sectors remain heavily reliant on imports and have not yet transitioned to a self-sufficient manufacturing model, impacting their growth under the PLI framework.
Slow Disbursement of Funds: The initial years of the scheme saw minimal disbursement of funds, with only a small percentage of the total incentive outlay being paid out in the first two years.
Which sectors are experiencing the most significant slowdowns, and why?
Textiles: This sector is struggling due to high competition and stringent norms that have slowed down participation and growth.
Solar Modules: Despite being a strategic sector for renewable energy, delays in establishing manufacturing capabilities have led to slow progress.
As of June 2024, India’s solar module manufacturing capacity reached 77.2 GW, but the solar cell capacity was only 7.6 GW, leading to supply shortages that delayed projects.
Automobiles: While some companies are making progress, the automobile sector overall is hindered by initial setup challenges and fluctuating market conditions.
Factors such as rising raw material costs and shifts in consumer preferences towards electric vehicles are creating a complex environment for traditional automakers.
Advanced Chemical Cells (ACC): Similar to solar modules, this sector faces long commissioning periods that delay employment outcomes. Because of the lengthy development timelines for manufacturing facilities and the need for substantial investment in technology are contributing to slower growth in this strategic area.
IT Hardware: Although recently upgraded with increased funding, it still lags behind in implementation compared to more successful sectors like mobile manufacturing.
What measures can be taken to enhance the effectiveness of PLI schemes? (Way forward)
Revising Eligibility Criteria: Simplifying the eligibility requirements could encourage more companies, especially smaller firms, to participate in the schemes and benefit from incentives.
Increasing Support for Supply Chains: Establishing robust supply chains is crucial. The government could provide additional support to smaller suppliers who are essential for scaling up production across sectors.
Streamlining Resource Access: Facilitating easier access to necessary machinery and skilled labor can help companies ramp up production more effectively and reduce dependency on imports.
Regular Reviews and Adjustments: Continuous monitoring and adjustments based on sector performance can help identify bottlenecks early and allow for timely interventions.
Encouraging Ancillary Industries: Promoting the establishment of ancillary industries around larger beneficiaries could create additional jobs and enhance local manufacturing capabilities.
Mains PYQ:
Q Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)
