Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

Expansion of Agricultural Infrastructure Fund (AIF) Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Agricultural Infrastructure Fund (AIF) Scheme

Why in the News?

  • The Union Cabinet has approved the expansion of the Agricultural Infrastructure Fund (AIF) scheme.
    • It will now include financial support for Farmers’ Producers Organizations (FPOs) to enhance their financial security and creditworthiness.

About Agriculture Infrastructure Fund (AIF) Scheme:

Details
Launch  July 2020, Central Sector Scheme
Nodal Ministry Ministry of Agriculture and Farmers Welfare, Government of India
Fund Allocation Rs. 1 lakh crore, with disbursements planned until 2025-26; interest subvention and credit guarantee assistance extended till 2032-33.
Aim To mobilize medium to long-term debt financing for investment in viable projects relating to post-harvest management infrastructure and community farming assets, to enhance agricultural infrastructure in India.
Key Features Interest Subvention: 3% on loans up to Rs. 2 crore, with additional rate reductions for NABARD loans for PACS.
Credit Guarantees: Under the CGTMSE scheme for loans up to Rs. 2 crore.
Fund Usage: Supports up to 25 projects per beneficiary across different locations.
Target Beneficiaries Farmers, Farmer Producer Organizations (FPOs), Primary Agricultural Credit Societies (PACS), entrepreneurs, startups, Self Help Groups, Agricultural Produce Market Committees, and federations.
Management Managed through an online MIS platform with national, state, and district level monitoring committees for real-time monitoring and feedback.
Lending Institutions Includes 24 commercial banks, 40 cooperative banks, and NABARD among others.
Hassle-Free Process Supported by a user-friendly online portal to facilitate speedy loan sanctions.

 

Key changes introduced: 

Description
Support for FPOs Includes financial support for Farmers’ Producers Organizations (FPOs) to improve financial security and creditworthiness.
Broader Eligible Projects Expand the scope to cover more types of agricultural infrastructure projects.
Community Farming Assets Allows the creation of community farming assets to enhance productivity and sustainability.
Integrated Processing Projects Adds integrated primary and secondary processing projects as eligible activities; standalone secondary projects remain under MoFPI schemes.
Alignment with PM-KUSUM Converges AIF with PM-KUSUM Component-A for joint development of agricultural infrastructure and clean energy solutions.
Extended Credit Guarantee Extends credit guarantee coverage to FPOs through NABSanrakshan, in addition to CGTMSE, to boost investment confidence.

 

PYQ:

[2015] With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?

1. It is an organ of NITI Aayog.

2. It has a corpus of 4,00,000 crore at present.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

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Financial Inclusion in India and Its Challenges

[pib] 10 Years of Jan Dhan Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Pradhan Mantri Jan Dhan Yojana (PMJDY)

Why in the News?

PM Modi launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) on 28th August 2014.  It has now completed a decade of successful implementation.

About PMJDY

Details
Objective Banking the Unbanked: Open basic savings bank deposit (BSBD) accounts with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges.
Securing the Unsecured: Issue Indigenous Debit cards with free accident insurance coverage of ₹2 lakh.
Funding the Unfunded: Provide micro-insurance, overdraft, micro-pension, and micro-credit facilities.
Initial Features Universal Access to Banking Services: Access through branches and BCs.
Basic Savings Bank Accounts: With an overdraft facility of up to ₹10,000 for every eligible adult.
Financial Literacy Program: Promote savings and credit usage.
Insurance: Accident cover up to ₹1 lakh and life cover of ₹30,000 for accounts opened between Aug 2014 to Jan 2015.
Pension Scheme: For the unorganized sector.
Creation of Credit Guarantee Fund.
Key Provisions Inter-operability: Through RuPay debit card or Aadhaar-enabled Payment System (AePS).
• Fixed-point Business Correspondents.
• Simplified KYC / e-KYC.
Extension and New Features (Post-2018) Focus Shift: From ‘Every Household’ to ‘Every Unbanked Adult’.
RuPay Card Insurance: Increased accidental insurance cover to ₹2 lakh for new accounts.
Overdraft Facilities Enhanced: Limit doubled from ₹5,000 to ₹10,000; up to ₹2,000 without conditions.
Increase in upper age limit for OD: From 60 to 65 years.
Eligibility for Other Programs  PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY).

Successes of PMJDY

  • Financial Inclusion: PMJDY is recognized as the largest financial inclusion initiative globally, with over 53 crore bank accounts opened as of August 2024. 
    • It has facilitated access to credit for individuals without a formal financial history, as evidenced by the rise in Mudra loan sanctions at a compounded annual rate of 9.8% from FY 2019 to FY 2024.
  • Social Empowerment: 55.6% of Jan Dhan account holders are women, and 66.6% of accounts are in rural and semi-urban areas, demonstrating the program’s reach among marginalized communities.
  • Deposit Growth: The total deposits in PMJDY accounts have reached Rs. 2.31 lakh crore, showing a 15-fold increase since August 2015.
  • Digital Transaction Growth: Digital transactions under PMJDY have surged, with UPI financial transactions growing from 535 crore in FY 2018-19 to 13,113 crore in FY 2023-24.
  • Effective DBT Mechanism: The Jan-Dhan Aadhaar Mobile (JAM) trinity has enabled a diversion-proof subsidy delivery mechanism, with subsidies and social benefits directly transferred into the bank accounts of the underprivileged.
  • Savings and Financial Discipline: The average deposit in the PMJDY account has increased 4 times since August 2015, indicating improved saving habits among account holders.

PYQ:

[2015] ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for

(a) Providing housing loan to poor people at cheaper interest rates.

(b) Promoting women’s Self-Help Groups in backward areas.

(c) Promoting financial inclusion in the country.

(d) Providing financial help to the marginalized communities.

[2016] Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.

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Pension Reforms

What is the Unified Pension Scheme?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Unified Pension Scheme (UPS)

Why in the News?

The Union Cabinet approved the Unified Pension Scheme (UPS) for 23 lakh central government employees.

About Unified Pension Scheme (UPS):

Explanation
Implementation Date Effective from April 1, 2025.
Eligibility Central government employees with at least 10 years of service.
Assured Pension
  • 50% of average basic pay over the last 12 months prior to retirement for employees with 25+ years of service.
  • Proportionate benefits for 10-25 years of service.
Assured Minimum Pension ₹10,000 per month for employees with at least 10 years of service.
Assured Family Pension 60% of the pension that the employee was drawing before their death.
Inflation Protection
  • Pensions indexed to inflation;
  • Dearness Relief (DR) based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Government Contribution 18.5% of basic pay and DA, increased from 14% under the National Pension System (NPS).
Employee Contribution 10% of basic pay and DA (same as under NPS).
Lump Sum Payment on Superannuation One-tenth of the last drawn monthly pay (including DA) for every 6 months of completed service, in addition to gratuity.
Option to Choose Employees can choose between UPS and NPS starting from the upcoming financial year; the choice is final once made.
Beneficiaries
  • Initially benefits 23 lakh central government employees;
  • May extend to 90 lakh if adopted by state governments.
Difference from NPS Unlike the market-dependent NPS, UPS provides a guaranteed pension amount, a minimum pension, increased government contribution, fixed family pension, and a lump sum payment at superannuation.

Significance of the UPS

  • Financial Security: Guarantees a pension and family pension for stable post-retirement income.
  • Minimum Pension: Ensures at least ₹10,000 per month for retirees, supporting lower-income employees.
  • Inflation Protection: Indexes pensions to inflation, maintaining purchasing power over time.
  • Increased Benefits: Raises government contribution to 18.5%, enhancing employee retirement benefits.
  • Flexibility: Allows choice between UPS and NPS based on personal financial needs.
  • Family Support: Provides 60% of the pension to the spouse if the employee passes away.
  • Employee Welfare: Aligns with government goals to improve employee welfare and post-retirement life quality.

PYQ:

[2017] Who among the following can join the National Pension System (NPS)?

(a) Resident Indian citizens only.

(b) Persons of age from 21 to 55 only.

(c) All State Government employees joining the services after the date of notification by the respective State Governments.

(d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004.

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Innovation Ecosystem in India

[pib] REACHOUT Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: REACHOUT Scheme

Why in the News?

The Indian student team, supported by the REACHOUT (Research, Education, Training and Outreach) scheme, achieved remarkable success at the 17th edition of the International Earth Sciences Olympiad (IESO) held in Beijing, China.

What is the REACHOUT Scheme?

  • It is an initiative by the Ministry of Earth Sciences (MoES) under the broader PRITHVI (PRITHvi Vigyan) program. 
  • The scheme aims to enhance the understanding and dissemination of Earth system sciences through research, education, and outreach activities.

About the International Earth Sciences Olympiad (IESO)

  • The IESO was established in 2003 during the International Geoscience Education Organization Council Meeting in Calgary, Canada.
  • The competition focuses on promoting interest in earth system sciences, particularly in addressing climate change, environmental challenges, and natural disasters.

India’s Participation:

  • India has participated in the IESO since 2007 and hosted the 10th edition in Mysore.
  • The Indian National Earth Science Olympiad (INESO) serves as a national-level prelude to the IESO, held across schools in India.
  • Top-performing students from INESO represent India at the IESO, with support from MoES and the Geological Society of India.

PYQ:

[2019] Atal Innovation Mission is set up under the

(a) Department of Science and Technology

(b) Ministry of Labour and Employment

(c) NITI Aayog

(d) Ministry of Skill Development and Entrepreneurship

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Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

Jiyo Parsi Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Jiyo Parsi Scheme

Why in the News?

The Minister for Minority Affairs has launched a dedicated portal for Jiyo Parsi Scheme.

What is the Jiyo Parsi Scheme?

  • It is a Central Sector Scheme launched in 2013-14 by the Ministry of Minority Affairs.
  • It aims to arrest the population decline of the Parsis, a minority community in India.
  • It focuses on stabilizing and increasing the Parsi population through scientific protocols and structured interventions.
  • Features of the Scheme:
    • Financial support for infertility treatments and related medical care in empanelled hospitals.
    • Assistance for childcare and support for elderly Parsis.
    • Programs to raise awareness and encourage participation within the Parsi community.
  • Target Groups:
    • Parsi married couples of childbearing age needing assistance.
    • Young adults and adolescents in the Parsi community for disease detection, with parental/legal guardian consent.

Significance of the scheme:

  • This scheme has successfully facilitated the birth of over 400 Parsi children.
  • It preserves the cultural heritage and identity of the Parsi community.
  • It ensures the long-term sustainability of the community in India.
  • It demonstrates government commitment to supporting minority communities and promoting diversity.

PYQ:

[2011] In India, if a religious sect/community is given the status of a national minority, what special advantages it is entitled to?

  1. It can establish and administer exclusive educational institutions.
  2. The President of India automatically nominates a representative of the community to Lok Sabha.
  3. It can derive benefits from the Prime Minister’s 15-Point Programme.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

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Solar Energy – JNNSM, Solar Cities, Solar Pumps, etc.

[pib] Operational Guidelines for Implementation of ‘Model Solar Village’

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Model Solar Village

Why in the news?

  • The Ministry of New and Renewable Energy has issued operational guidelines for the Implementation of ‘Model Solar Village’ under PM-Surya Ghar Muft Bijli Yojana.
    • The centre recently allocated ₹800 crore for the same.

About PM Surya Ghar Muft Bijli Yojana

Description
Purpose To provide 300 units of free electricity per month to beneficiaries through an investment of ₹75,000 crores.
Deadline Extended the deadline from 2022 to 2026.
Announcement Initially announced in an Interim Budget 2024-25 speech by the Finance Minister.
Target Aimed to light up 1 crore households.
Implementation Urban Local Bodies and Panchayats are incentivised to promote rooftop solar systems.
Financial Support
Average Monthly Electricity Consumption (units) Suitable Rooftop Solar Plant Capacity Subsidy Support
0-150 1-2 kW ₹ 30,000  to ₹ 60,000
150-300 2-3 kW ₹ 60,000  to ₹ 78,000
> 300 Above 3 kW ₹ 78,000

 

Features of the ‘Model Solar Village’ Initiative:

Details
Comprehensive Solarization
  • Solarize all households and public areas with home lighting, water systems, pumps, and streetlights.
  • Seeks to create one Model Solar Village per district.
Implementing Agency State Renewable Energy Development Agency (SREDA) or another entity nominated by the State/UT Government will implement the scheme.
24×7 Solar-Powered Village Develop villages powered entirely by solar energy, promoting self-reliance in meeting energy needs.
Central Financial Assistance (CFA)
  • ₹1 crore grant per village based on a Detailed Project Report (DPR) by the Implementing Agency.
  • The total financial allocation for this initiative is ₹800 crore.
Eligibility Criteria
  • Revenue village with a population over 5,000 (or 2,000 in special category states).
  • Based on installed renewable energy capacity, overseen by the District Level Committee (DLC) 6 months after the declaration.
Fund Disbursement 40% on the award of works, 40% after completion, 20% after 6 months of operation.

 

PYQ:

[2018] With reference to solar power production in India, consider the following statements:

1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.

2. The solar power tariffs are determined by the Solar Energy Corporation of India.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

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Women empowerment issues – Jobs,Reservation and education

[pib] Nandini Sahakar Yojana

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Nandini Sahakar Yojana

Why in the News?

  • The Minister of Cooperation has provided some information about the Nandini Sahakar Yojana.
    • NCDC has cumulatively disbursed financial assistance amounting to Rs. 6426.36 crore for the development of cooperative societies exclusively promoted by women across the country.

About Nandini Sahakar Yojana

  • The Nandini Sahakar Scheme was initiated by the National Cooperative Development Corporation (NCDC) in 2010.
  • It is a women-focused framework providing financial assistance, project formulation, hand-holding, and capacity development.
  • The scheme aims to assist women cooperatives in undertaking business model-based activities under the purview of NCDC.

Features of the Scheme

  • Any cooperative society with at least 50% women as primary members and a minimum of three months in operation is eligible to apply.
  • Assistance is provided in the form of credit linkage for infrastructure term loans and working capital, along with subsidies or interest subvention from other government schemes.
  • There is no minimum or maximum limit on financial assistance for projects by women cooperatives.
  • NCDC offers a 2% interest subvention on its rate of interest on term loans for new and innovative activities.
  • A 1% interest subvention is provided on term loans for all other activities, resulting in lower borrowing costs for women cooperatives.

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Corporate Social Responsibility: Issues & Development

[pib] CIL ASHIS Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: CIL ASHIS Scheme; CSR Initiatives

Why in the News?

Coal India Limited (CIL) has launched a CSR initiative named CIL ASHIS to provide scholarships to children who lost their parents to COVID-19 and were unable to continue their studies.

What is CIL ASHIS Scheme?

  • The CIL ASHIS Scheme, launched by Coal India Limited (CIL), stands for Ayushman Shiksha Sahayata.
  • The scheme aims to provide financial support for the education of children who lost their parents to COVID-19, ensuring they can continue their studies and achieve their dreams.

Features of the CIL ASHIS Scheme

  • Each eligible child receives a scholarship worth ₹45,000 per year.
  • The scholarship is provided for a period of 4 years.
  • The scheme targets 1,645 children who have been identified as needing assistance.
  • Compassionate Appointment for:
    • Dependents of CIL employees who lost their lives while in service.
    • Beneficiaries need to apply for compassionate appointments through CIL’s established procedures.

PYQ:

[2024] With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements:

  1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
  2. CSR rules do not specify minimum spending on CSR activities.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

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Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

[pib] Update on Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Features of the Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA)

Why in the News?

  • An Extended Pradhan Mantri Surakshit Matritva Abhiyan (E-PMSMA) strategy was launched to ensure quality Antenatal Care (ANC) for pregnant women.
    • The strategy focuses on individual tracking of high-risk pregnancies (HRP) and provision of additional PMSMA sessions beyond the 9th of every month.

About High-Risk Pregnancy: 

  • A high-risk pregnancy involves greater risk of health complications for the mother, the foetus, or both, due to pre-existing medical conditions, conditions that develop during pregnancy, or foetal issues.
  • Common Factors:
    • Maternal Health Conditions: Pre-existing diabetes, hypertension, HIV, kidney disease, or conditions arising during pregnancy like gestational diabetes and preeclampsia.
    • Obstetric Factors: Previous caesarean section, history of preterm labor, multiple pregnancies, and congenital malformations.

About Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA)

Details
About An initiative to provide quality antenatal care (ANC) to all pregnant women.
Launch  October 2016
Target Group All pregnant women, especially those in their second and third trimesters.
Frequency Services provided on the 9th of every month at government health facilities.
Objective Ensure safe motherhood by providing comprehensive and quality antenatal care universally.
Key Functions
  • General Check-Up: Physical and clinical examinations by medical professionals.
  • Laboratory Investigations: Routine blood tests, urine tests, and other necessary laboratory investigations.
  • Ultrasound: Ultrasound examination to monitor foetal growth and development.
  • Counseling: Nutritional and lifestyle counseling to ensure a healthy pregnancy.
  • High-Risk Identification: Screening and identification of high-risk pregnancies and appropriate referrals for specialized care.
Key Features
  • Free of Cost: All services under PMSMA are provided free of cost.
  • Fixed Day ANC Services: Antenatal care services are provided on a fixed day every month.
  • Lab Investigations: Basic investigations like Hb, urine albumin, RBS, malaria test, VDRL test, blood grouping, CBC, ESR, and USG.
  • Public-Private Partnership: Encourages participation of private sector healthcare providers in providing ANC services.
  • Incentives: Incentives for healthcare providers who participate in the program.
Categorization of Pregnant Women 
  • Green Sticker – for women with no risk factor detected
  • Red Sticker – for women with high risk pregnancy
  • Blue Sticker – for women with Pregnancy Induced Hypertension
  • Yellow Sticker – pregnancy with co-morbid conditions such as diabetes, hypothyroidism, STIs
Benefits
  • Improved Maternal Health: Regular and comprehensive ANC helps in early detection and management of complications, improving maternal health outcomes.
  • Reduced Mortality Rates: Timely and quality care reduces maternal and infant mortality rates.
  • Health Education: Provides health education and counseling to pregnant women, promoting better health practices.
  • High-Risk Management: Identifies and manages high-risk pregnancies effectively, ensuring specialized care for those who need it.

PYQ:

[2024]  With reference to the ‘Pradhan Mantri Surakshit Matritva Abhiyan’, consider the following statements:

1. This scheme guarantees a minimum package of antenatal care services to women in their second and third trimesters of pregnancy and six months post-delivery health care service in any government health facility.

2. Under this scheme, private sector health care providers of certain specialities can volunteer to provide services at nearby government health facilities.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

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Capital Markets: Challenges and Developments

What is the Sovereign Gold Bond Scheme?                                                        

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SGB Scheme

Why in the News?

Recent reports suggest that the government might reduce or discontinue the Sovereign Gold Bond (SGB) scheme due to its high cost.

Decline in Popularity of SGB:

  • This speculation follows the Union budget’s decision to slash customs duties on gold and silver from 15% to 6%.
  • The reduction in customs duties is expected to decrease demand for SGBs, which has already led to a 2-5% drop in their prices on the National Stock Exchange (NSE).

About Sovereign Gold Bonds (SGBs)

Details
Launch 2015
Nature
  • Government securities denominated in grams of gold.
  • Issued by RBI.
Objective Reduce dependence on gold imports and shift savings from physical gold to paper form.
Eligibility Resident in India, including individuals, HUFs, trusts, universities, and charitable institutions.
Denomination and Tenor
  • Denominated in multiples of grams of gold, with a basic unit of 1 gram.
  • Tenor of 8 years with an exit option from the 5th year on interest payment dates.
Investment Limits
  • Minimum: 1 gram of gold.
  • Maximum: 4 kg for individuals and HUFs,
    • 20 kg for trusts and similar entities per fiscal year.
Benefits
  • Quantity of gold protected, receiving market price at redemption.
  • Eliminates storage risks and costs.
  • Assured market value at maturity and periodic interest.
  • Free from making charges and purity issues.
  • Held in RBI books or demat form, eliminating scrip loss risk.
Add-ons
  • Can be used as collateral for loans.
  • Loan-to-value (LTV) ratio set equal to ordinary gold loans.

 

PYQ: 

[2016] What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

  1. To bring the idle gold lying with Indian households into the economy
  2. To promote FDI in the gold and jewellery sector
  3. To reduce India’s dependence on gold imports

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

https://indianexpress.com/article/business/commodities/gold-customs-duty-may-take-some-shine-off-sovereign-gold-bonds-9485686/

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RBI Notifications

RBI Circular on Liberalised Remittance Scheme (LRS)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Liberalised Remittance Scheme (LRS), IFSC.

Why in the News?

The Reserve Bank of India (RBI) has broadened the regulations governing remittances to International Financial Services Centres (IFSCs) under the Liberalised Remittance Scheme (LRS). The RBI’s circular authorizes “authorised persons” to facilitate remittances for all permissible purposes under LRS to IFSCs.

About Liberalised Remittance Scheme (LRS)

  • LRS is governed by the Foreign Exchange Management Act (FEMA) 1999, regulated by the Reserve Bank of India (RBI).
  • The scheme was introduced by the RBI in 2004 to facilitate outward remittances from India.
  • LRS allows resident individuals, including minors, to remit a specified amount of money abroad each financial year (April – March).
  • Currently, individuals are allowed to remit up to USD 250,000 per financial year under LRS.
  • Funds remitted under LRS can be used for permissible current or capital account transactions, or a combination of both.
  • Permissible Uses:
    • Expenses related to travel (private or for business).
    • Medical treatment abroad.
    • Payment of fees for education abroad.
    • Gifts and donations.
    • Maintenance of close relatives.
    • Investment in shares, debt instruments, and immovable properties overseas.
  • Accounts: Individuals can open and maintain foreign currency accounts with banks outside India for transactions permitted under LRS.
  • Exclusions: LRS is NOT available to corporations, partnership firms, Hindu Undivided Families (HUFs), trusts, etc.

Prohibited Transactions:

  • Remittances for activities prohibited under Schedule-I of FEMA, such as purchase of lottery tickets, sweepstakes, proscribed magazines, etc.
  • Trading in foreign exchange abroad.
  • Remittances to countries identified as non-cooperative by the FATF.
  • Remittances to individuals/entities identified as posing a terrorism risk by the RBI.

Significance of the move

  • The RBI’s decision reinforces GIFT IFSC’s position as a prominent international financial services hub.
  • By broadening the scope of LRS, GIFT IFSC aims to attract more diverse investments and transactions, contributing to the growth of India’s financial sector.

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Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

[pib] GRSE Accelerated Innovation Nurturing Scheme (GAINS 2024)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: GAINS Scheme

Why in the News?

The Defence Ministry has launched the “GRSE Accelerated Innovation Nurturing Scheme (GAINS 2024)” of Garden Reach Shipbuilders & Engineers Limited (GRSE) in Kolkata.

About GAINS 2024

  • GAINS aims to address challenges in shipyards and promote technology development through startups nurtured in the country.
  • It aligns with the ‘Make in India’ and ‘Start-up India’ policies of the Government of India.
    • Objective: To seek solutions for shipyard-related problems and promote technological advancements.
    • Target Audience: MSMEs and Start-Ups encouraged to develop innovative solutions.

Significance of the Scheme

  • GAINS aims to strengthen maritime security and air defence through technological advancements.
  • It leverages MSMEs and Start-Ups to achieve self-reliance in ship design and construction.

Various defence production indigenisation initiatives in India:

  • ADITI Scheme (2024): The scheme targets the development of approximately 30 deep-tech critical and strategic technologies within the proposed timeframe.
  • Defence Acquisition Procedure (DAP) 2020: Requires 50% indigenous content in procurement contracts.
  • Positive Indigenisation Lists: Mandates domestic procurement for nearly 5,000 items.
  • Srijan Indigenisation Portal (2020): Lists over 34,000 items for indigenisation.
  • Domestic Procurement Budget: Increased from 40% (₹52,000 crore) in 2020-21 to 75% (₹99,223 crore) in 2023-24.

Innovations and R&D support:

  • iDEX Initiative (2018): Involves MSMEs, start-ups, and academia in defence innovation.
  • iDEX Prime (2022): Provides grants up to ₹10 crore for high-end solutions.
  • Technology Development Fund (TDF): Funding increased from ₹10 crore to ₹50 crore per project.

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Foreign Policy Watch- India-Central Asia

[pib] Cabinet approves Central Sector Scheme “National Forensic Infrastructure Enhancement Scheme” (NFlES)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NFlES Scheme

Why in the News?

The Union Cabinet, chaired by PM Narendra Modi, approved the National Forensic Infrastructure Enhancement Scheme (NFIES).

Do you know?

  • Central sector schemes: They are 100% funded by the Union government and implemented by the Central Government machinery. It covers subjects from Union List (central subjects).
  • Centrally Sponsored Scheme (CSS): It has a certain percentage of the funding borne by the States and the implementation is by the State Governments.It covers subjects from Concurrent List (shared subjects).
    • States have some flexibility to modify schemes to suit local needs within central guidelines.

About National Forensic Infrastructure Enhancement Scheme (NFlES)

  • The Central Sector Scheme NFIES aims to strengthen national forensic infrastructure, expand NFSU’s reach, and establish CFSLs to meet growing forensic demands.
  • It aligns with India’s goals of enhancing forensic capabilities and securing robust criminal justice outcomes.

Key Components of NFlES:

  • Campuses of NFSU: Establishing campuses of the National Forensic Sciences University (NFSU) across India.
  • Central Forensic Science Laboratories (CFSLs): Setting up new CFSLs nationwide.
    • Delhi Campus Enhancement: Upgrading infrastructure at the Delhi Campus of NFSU.
    • Financial outlay: Rs. 2254.43 crore for 2024-25 to 2028-29, funded by the Ministry of Home Affairs.
  • Objectives:  
    • Enhancing the criminal justice system with timely and scientific forensic examinations.
    • Addressing the increased workload due to new criminal laws requiring forensic investigation for serious offences.
    • Mitigating the shortage of trained forensic professionals in Forensic Science Laboratories (FSLs).

Impact and Benefits

  • Improved Efficiency: Ensuring high-quality forensic examinations for efficient criminal justice processes.
  • Technology Integration: Leveraging advancements to handle evolving crime methods effectively.
  • Capacity Building: Training more forensic professionals to reduce case backlogs and support a high conviction rate exceeding 90%.

PYQ:

[2017] ‘Recognition of Prior Learning Scheme’ is sometimes mentioned in the news with reference to:

(a) Certifying the skills acquired by construction workers through traditional channels.

(b) Enrolling the persons in Universities for distance learning programmes.

(c) Reserving some skilled jobs to rural and urban poor in some public sector undertakings.

(d) Certifying the skills acquired by trainees under the National Skill Development Programme.

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Direct Benefits Transfers

PM-Kisan Samman Nidhi Yojana

Note4Students

From UPSC perspective, the following things are important :

Prelims level: PM-KISAN, Rythu Bandhu Scheme

Why in the News?

The Prime Minister will release the 17th installment of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), amounting to over ₹20,000 crore, for 92.6 million beneficiary farmers across the country.

About the PM-KISAN Scheme

  • The PM-KISAN is a Central Sector Scheme with 100% funding from the Government of India.
  • It is being implemented by the Ministry of Agriculture and Farmer’s Welfare.
  • Launched: In February 2019.
  • Aim: To help procure various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of each crop cycle.
  • Objective: To provide eligible farmers with an annual financial assistance of ₹6,000.
    • This assistance is distributed in three equal instalments of ₹2,000 each every 4 months, via Direct Benefit Transfer (DBT) into beneficiaries’ bank accounts.
  • Beneficiaries:
    • Farmer families that hold cultivable land can apply for the benefits of this plan.
    • Small and Marginal Farmers (SMFs) (a farmer who owns cultivable land up to 2 hectare as per land records of the concerned State/UT.).
    • The entire responsibility of identification of beneficiary farmer families rests with the State / UT Governments.

Do you know?

The PM-KISAN scheme was first conceived and implemented by the government of Telangana as the Rythu Bandhu scheme.

Rythu Bandhu Scheme

  • It is also known as the Farmer’s Investment Support Scheme (FISS).
  • It is a welfare programme for farmers started in 2018 by the Telangana government.
  • Under the scheme, the state government provided the 58 lakh farmers in Telangana with ₹5,000 per acre of their land as a farm investment for two crops.
  • There is no ceiling on the number of acres held by a farmer.
  • So, a farmer who owns two acres of land would receive Rs 20,000 a year, whereas a farmer who owns 10 acres would receive Rs 1 lakh a year from the government.
  • This investment is made twice a year, once for the kharif harvest and once for the Rabi harvest.
  • It is the country’s first direct farmer investment support scheme where cash is paid directly to the beneficiary.

Impact of the Scheme

  • Beneficiaries outreach: Over 11 crore farmers (with more than 3 crore women farmers) across the country have availed of the PM-Kisan scheme, indicating its widespread reach and impact.
  • Financial Support: This financial aid helps farmers meet their agricultural expenses, purchase seeds, fertilizers, and other inputs, and support their families’ livelihoods.
  • Improved Agricultural Practices: This contributes to food security and boosts the agricultural sector’s growth.
  • Poverty Alleviation: The scheme plays a crucial role in alleviating poverty among small and marginal farmers by providing them with a steady source of income just like Universal Basic Income (UBI).
  • Enhanced Livelihoods: PM-Kisan supports farmers’ livelihoods, by providing a safety net during times of agricultural distress or economic uncertainties, ensuring a better quality of life for rural communities.

PYQ:

[2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

  1. Working capital for maintenance of farm assets.
  2. Purchase of combine harvesters, tractors and mini trucks.
  3. Consumption requirements of farm households.
  4. Post-harvest expenses.
  5. Construction of family house and setting up of village cold storage facility.

Select the correct answer using the code given below:

(a) 1, 2 and 5 only

(b) 1, 3 and 4 only

(c) 2, 3, 4 and 5 only

(d) 1, 2, 4 and 5

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Direct Benefits Transfers

PM-KISAN Scheme: Boosting Farmer Welfare

Note4Students

From UPSC perspective, the following things are important :

Prelims level: PM-KISAN Scheme

Why in the News?

Prime Minister has approved the 17th instalment of the PM Kisan scheme. This move will benefit 9.3 crore farmers, amounting to a distribution of approximately Rs 20,000 crore.

About the PM-KISAN Scheme

  • The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a Central Sector Scheme with 100% funding from the Government of India.
  • It is being implemented by the Ministry of Agriculture and Farmer’s Welfare.
  • Launched: In February 2019.
  • Aim: To help procure various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of each crop cycle.
  • Objective: To provide eligible farmers with an annual financial assistance of ₹6,000.
    • This assistance is distributed in three equal instalments of ₹2,000 each every 4 months, via Direct Benefit Transfer (DBT) into the bank accounts of beneficiaries.
  • Beneficiaries:
    • Farmer families that hold cultivable land can apply for the benefits of this plan.
    • Small and Marginal Farmers (SMFs) (a farmer who owns cultivable land up to 2 hectares as per land records of the concerned State/UT.).
    • The entire responsibility of identification of beneficiary farmer families rests with the State / UT Governments.

Significance for Farmers

  • Beneficiaries outreach: Over 11 crore farmers (with more than 3 crore women farmers) across the country have availed of the PM-Kisan scheme, indicating its widespread reach and impact.
  • Financial Support: This financial aid helps farmers meet their agricultural expenses, purchase seeds, fertilizers, and other inputs, and support their families’ livelihoods.
  • Improved Agricultural Practices: This contributes to food security and boosts the agricultural sector’s growth.
  • Poverty Alleviation: The scheme plays a crucial role in alleviating poverty among small and marginal farmers by providing them with a steady source of income just like Universal Basic Income (UBI).
  • Enhanced Livelihoods: PM-Kisan supports farmers’ livelihoods, by providing a safety net during times of agricultural distress or economic uncertainties, ensuring a better quality of life for rural communities.

PYQ:

[2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

  1. Working capital for maintenance of farm assets.
  2. Purchase of combine harvesters, tractors and mini trucks.
  3. Consumption requirements of farm households.
  4. Post-harvest expenses.
  5. Construction of family house and setting up of village cold storage facility.

Select the correct answer using the code given below:

(a) 1, 2 and 5 only

(b) 1, 3 and 4 only

(c) 2, 3, 4 and 5 only

(d) 1, 2, 4 and 5

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Housing for all – PMAY, etc.

A door to a housing scheme, tribals find hard to open

Note4Students

From UPSC perspective, the following things are important :

Prelims level: PM-JANMAN Scheme

Mains level: Government initiatives and Programs; Technical Challenges in the implementation; PM JANMAN Housing Scheme;

Why in the News?

The PM JANMAN presents a new opportunity to transform the lives of India’s Particularly Vulnerable Tribal Groups.

About PVTGs:

India has numerous Adivasi groups, with 75 identified as Particularly Vulnerable Tribal Groups (PVTGs). These comprise around 14.6 lakh households and live in scattered, remote, and often inaccessible areas. Their livelihoods rely on methods and tools that predate agriculture. PVTGs have low literacy rates, economic backwardness, and stagnant populations.

In 1960-61, the Dhebar Commission identified disparities among Scheduled Tribes, leading to the creation of the “Primitive Tribal Groups” (PTG) category.
In 2006, this category was renamed Particularly Vulnerable Tribal Groups (PVTGs).

Government Initiatives:

  • Pradhan Mantri PVTG Development Mission. Announced for the fiscal year 2023-24 to improve socio-economic conditions of PVTGs.
  • Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) launched in November 2023.
  •  Pradhan Mantri Adi Adarsh Gram Yojana, Integrated Tribal Development Project (ITDP) and Tribal Sub-Plan (TSP).

PM JANMAN Objectives:

  • Provide essential services to PVTGs, including safe housing, clean drinking water, and sanitation.
  • The largest Direct Benefit Transfer (DBT) scheme in the initiative.
  • Aims to reach 4.90 lakh PVTG households by 2026.
  • Households to receive ₹2.39 lakh each in three instalments.

Technical Challenges in the PM JANMAN Housing Scheme

App Functionality and Data Gathering:

  • Data Collection Areas: The ‘Awaas+’ app records geographical locations, household profiles with geo-tagging, and bank account details for cash transfers.
  • Mandatory Jobcard: Registration requires a jobcard, but many have been deleted, affecting PVTGs’ eligibility.

Jobcard Issues:

  • Deletion of Jobcards: Widespread deletion of over eight crore MGNREGA jobcards in the past two years has led to many PVTGs being ineligible for the scheme.
  • Jobcard Misuse: Cases of fraudulent registrations with someone else’s job cards further complicate the registration process.

Village List Discrepancies:

  • Inconsistent Data: The pre-populated list of villages in the app does not match the MGNREGA Management Information System (MIS). For example, the app lists 22 villages while the MIS lists 31 villages for ‘Vanjari’ Panchayat in Andhra Pradesh, causing confusion.

Aadhaar-related Issues:

  • Name Matching: The app requires names as per Aadhaar records but does not guide what to do if Aadhaar is absent.
  • PVTG Identification: The app does not explicitly identify PVTGs, using a default ‘ST’ option, leading to non-PVTG registrations.

Certification Issues:

  • Local Certification: Ineligible registrations prompt local officials to ask PVTGs for certification from sarpanches/mukhiyas.
  • Conflict of Interest: Non-PVTG sarpanches/mukhiyas in mixed communities may act against the interests of PVTGs, complicating the certification process.

Geo-tagging Problems:

  • Network Issues: Geo-tagging required for planned construction locations faces chaos due to poor network connectivity, hindering accurate data capture.

Bank Selection Complexity:

  • Overwhelming Options: The app’s dropdown lists for banks are excessively long. For example, selecting ‘Commercial Bank’ shows over 300 options, and choosing ‘State Bank of India’ in Andhra Pradesh presents over 500 branches, adding unnecessary complexity for both PVTGs and officials.

Opportunity/Way Forward for PM JANMAN Housing Scheme

  • Simplify App Interface: Update the ‘Awaas+’ app to have a more user-friendly interface and reduce unnecessary complexities, such as the long dropdown lists for banks.
  • Clear Guidelines for Aadhaar: Provide explicit instructions on what names to use in the absence of Aadhaar, ensuring all eligible PVTGs can register.
  • Verify Jobcard Authenticity: Introduce robust mechanisms to prevent fraudulent registrations using others’ jobcards.
  • Improve Network Infrastructure: Invest in better network infrastructure in remote areas to support the geo-tagging feature.

Mains PYQ:

Q Given the diversities among tribal communities in India, in which specific contexts should they be considered as a single category? (UPSC IAS/2022)

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RBI Notifications

RBI to launch Mobile App for Retail Direct scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Retail Direct Scheme

Mains level: NA

Why in the news?

The RBI has decided to introduce a Mobile App of its RBI Retail Direct scheme aimed at facilitating seamless investment in government securities by retail investors.

What is Retail Direct Scheme?

  • Retail Direct Scheme was rolled out in November 2021, giving access to individual investors to maintain gilt accounts with RBI and invest in government securities.
  • Using this app, investors can buy central and state government bonds as well as Treasury bills.
  • It enables investors to buy securities in primary auctions as well as buy/sell securities through the Negotiated Dealing System-Order Matching system (NDS-OM) platform.
  • A Gilt Account can be compared with a bank account, except that the account is debited or credited with treasury bills or government securities instead of money.

Treasury Bills:

  • They are promissory notes issued by the RBI on behalf of the government as a short term liability and sold to banks and to the public.
  • The maturity period ranges from 14 to 364 days.
  • They are the negotiable instruments, i.e. they are freely transferable.
  • No interest is paid on such bills but they are issued at a discount on their face value.

 How does it work?

  • Under the scheme, small investors can buy or sell government securities (G-Secs), or bonds, directly without an intermediary like a mutual fund.
  • However, the same tax rules apply to income from G-Secs.
  • The minimum amount for a bid is ₹10,000 and in multiples of ₹10,000 thereafter.
  • Payments may be made through Net banking or the UPI

Benefits of RDS

  • With the government being the borrower, there is a sovereign guarantee for the funds and hence zero risk of default.
  • Also, government securities may offer better interest rates than bank fixed deposits, depending on prevailing interest rate trends.

How can individuals access G-Sec offerings?

  • Investors wishing to open a Retail Direct Gilt account directly with the RBI can do so through an online portal set up for the purpose of the scheme.
  • Once the account is activated with the aid of a password sent to the user’s mobile phone, investors will be permitted to buy securities either in the primary market or in the secondary market.

PYQ:

[2018] Consider the following statements:

1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.

2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.

3. Treasury bills offer are issued at a discount from the par value.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

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Women empowerment issues – Jobs,Reservation and education

The long, bumpy road from ‘drone didis’ to ‘lakhpati didis’

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Lakhpati Didi Scheme

Mains level: Modernization of Agriculture and Role of Women

Why in the news? 

Efforts of fertilizer companies in supporting a Central government program aimed at training women to operate drones for spraying pesticides.

Context-

  • This initiative represents a broader trend of encouraging women’s entrepreneurship in India and empowering them to participate in traditionally male-dominated sectors such as agriculture and technology.
  • The involvement of fertilizer companies in funding and facilitating this program underscores the importance of public-private partnerships in driving social and economic development initiatives

Scheme Details-

Under the Namo Drone Didi scheme, 15,000 women-led Self-Help Groups (SHGs) will receive agricultural drones to assist in crucial tasks such as crop monitoring, fertiliser spraying, and seed sowing.

Costs to companies-

  • Financial Commitment by Fertilizer Companies: Fertilizer companies such as Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Coromandel International Limited (CIL) are shouldering significant costs for the “drone didi” program.
  • IFFCO is investing ₹42 crore to support the training and equipment for 300 drone didis, while CIL is backing another 200.
  • Expense Breakdown: The approximate cost per woman participating in the program is ₹14 lakh. This covers expenses like the drone, four battery sets, a generator, and an electric autorickshaw for transportation.
  • IFFCO has categorized this expenditure as “benefits to farmers” in its financial records.
  • Contribution of Other Companies: Several additional fertilizer companies, including Krishak Bharati Cooperative (KRIBHCO), Indian Potash Limited (IPL), Matix, Indorama India Private Limited, Brahmaputra Valley Fertilizer Corporation Limited, and National Fertilizers Limited, are collectively providing an extra 500 drones.
  • Funding Arrangement: The Ministry of Agriculture and Farmers Welfare has agreed to provide financial assistance of up to ₹8 lakh for each set of equipment. The remaining ₹2 lakh is to be sourced by the participating Self-Help Groups (SHGs).

Farmer trials-

  • Online Portal Enrollment: Haryana’s Agriculture Department, along with fertilizer companies, introduced online enrollment via the Meri Fasal Mera Byora portal to encourage farmers to apply for crop spraying through drones.
  • Subsidized Nano Urea Bottle: Farmers are offered a 1-litre nano urea bottle at ₹100, discounted from the market price of ₹225. This nano urea, when mixed with water, serves one acre.
  • Manual vs. Drone Spraying: Farmers weigh the costs of the manual application, which include subsidized granular urea and labor costs, against the higher charges of drone didis.
  • Viability for Small Landholders: Small landholders express concerns about the affordability and practicality of drone services due to limited financial resources and smaller land holdings.
  • Usefulness of Drones: Drones are seen as more cost-effective for larger plantations like coffee, tea, or sugarcane, rather than smaller-scale agricultural operations.
  • Financial Constraints: Farmers highlight financial constraints, including the inability to afford necessities like housing, education, and farm equipment, which diminishes the feasibility of investing in drone technology.

The women’s challenges-

  • Fuel Costs:  significant daily expenses (₹500 to ₹600) on fuel to run the generator required to charge the battery sets for the drone, raising concerns about the economic feasibility of the job in the long run.
  • Battery Set Limitations: Each day, exhausts one charged battery set after covering three acres with the drone. This necessitates simultaneous charging of another set in her electric vehicle (EV) to continue her work, resulting in additional time and fuel costs.
  • Economic Viability: Despite the potential earnings mentioned on paper, there are doubts about the economic viability of the job due to high fuel costs, the need for additional assistance, and uncertainties regarding the longevity of the scheme’s benefits
  • Safety Concerns and Need for Assistance: There is safety concerns while operating the drone and the necessity of having an assistant to drive the electric autorickshaw and assist with unloading and handling the heavy drone equipment.
  • Lack of Provision for Helpers: There is no provision for hiring assistants or helpers in the scheme, leading to additional expenses

Limitation of this scheme- 

  • Current Urea Usage and Subsidy: India uses 3.5 lakh metric tonnes (MT) of granular urea annually, with a significant portion subsidized by the government to make it affordable for farmers. Liquid nano urea, an alternative, is produced in limited quantities.
  • Government’s Vision for Nano Urea Production: The government aims to increase the production capacity of liquid nano urea to reduce dependence on expensive imported granular urea. The goal is to produce 48.5 crore bottles annually by 2026-27.
  • Limitations of Nano Urea: While liquid nano urea can supplement traditional granular urea, it cannot entirely replace it due to specific requirements in different stages of crop growth.
  • Ownership and Earnings Concerns: There are uncertainties regarding the ownership of drones and the distribution of earnings from drone operations among individuals, Self-Help Groups (SHGs), village organizations (VOs), or cluster-level federations (CLFs).
  • Need for Clarity and Coordination: Questions are raised about the lack of clarity on ownership, earnings distribution, and coordination among stakeholders involved in drone operations.
  • Challenges with Previous Proposals: Issues regarding the implementation of previous drone-related schemes, such as the procurement of drones under Krishi Vigyan Kendras (KVKs), and concerns about competition from individual farmers purchasing their drones are highlighted.

To overcome the challenges outlined regarding drone operations and nano urea production, several measures can be considered:

  • Clarity in Ownership and Earnings Distribution: Establish clear guidelines and agreements on drone ownership and revenue sharing among individuals, SHGs, VOs, and CLFs. Ensure transparency in decision-making processes and consult all stakeholders involved.
  • Enhanced Coordination: Facilitate better coordination among government agencies, agricultural organizations, and drone operators to streamline operations, address concerns, and ensure effective implementation of schemes. Regular meetings, feedback mechanisms, and communication channels can aid in coordination efforts.
  • Capacity Building: Provide training and capacity-building programs for drone operators, farmers, and other stakeholders to enhance their skills in drone operation, maintenance, and data interpretation. This can improve the efficiency and effectiveness of drone-based agricultural activities.
  • Promotion of Nano Urea: Invest in research and development to improve the efficacy and availability of liquid nano urea. Conduct awareness campaigns to educate farmers about the benefits and proper usage of nano urea, emphasizing its role as a supplement to traditional fertilizers.
  • Policy Reforms: Review existing policies related to drone operations, urea subsidy, and agricultural initiatives to address loopholes and inconsistencies. Introduce new policies or amendments to support the expansion of nano urea production and drone technology adoption in agriculture.
  • Collaborative Partnerships: Foster partnerships between government agencies, private companies, research institutions, and farmer groups to leverage expertise, resources, and innovation in addressing challenges related to drone operations and urea production.
  • Monitoring and Evaluation: Implement robust monitoring and evaluation mechanisms to assess the impact of drone-based agricultural initiatives and nano urea production efforts. Collect data on key performance indicators and stakeholders’ feedback to identify areas for improvement and make informed decisions.

Conclusion-

The initiative to train women as “drone didis” for agricultural tasks faces challenges of economic viability, ownership clarity, and coordination. Solutions include clear guidelines, capacity building, policy reforms, and collaborative partnerships to ensure sustainable implementation and overcome limitations in nano urea production.

Mains PYQ-

Q- The Self Help Group (SHG) Bank Linkage Program (SBLP), which is India’s own innovation , has proved to be one of the most effective poverty alleviation and women empowerment programme. Elucidate.(UPSC IAS/2015)

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Food Processing Industry: Issues and Developments

Mission Palm Oil: Achieving Self-sufficiency in Edible Oil Production

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Mission Palm Oil, Key stats on India's Edible Oil Imports

Mains level: NA

Why in the news-

  • The Prime Minister highlighted the National Mission on Edible Oils – Oil Palm (NMEO-OP) during his visit to Arunachal Pradesh, inaugurating the first oil mill under this mission.

Why discuss this?

  • This results in a substantial outflow of $20.56 billion in foreign exchange, the need for self-reliance in edible oil production has become paramount.

Edible Oil Consumption in India: Key Facts

  • India, the world’s biggest importer of vegetable oils, is likely to buy 15.6 million metric tons of cooking oils in the 2023-24 oil year, down from 16.6 million in the current year to Oct.
  • With India imports 57% of its vegetable oil demand.
  • These imports have shown a declining trend in recent months.
  • This decline is attributed to various factors such as reduced availability of palm oil for edible oil requirements due to producers diverting it for biodiesel production.
  • Additionally, the import of soyabean oil from Argentina increased sharply in February 2024, while imports from Brazil declined.
  • The top three vegetable oil importspalm, soybean, and sunflower seed oil.
  • India’s vegetable oil sector accounts for 13% of the Gross Cropped Area, 3% of the Gross National Product, and 10% of the value of all agricultural commodities.
  • A substantial portion of India’s edible oil requirement is fulfilled through palm oil imports from Indonesia and Malaysia.

Mission Palm Oil: A Catalyst for Self-Reliance

  • It is a Centrally Sponsored Scheme launched in 2021 targeting a substantial increase in oil palm cultivation and crude palm oil production.
  • It has been introduced with a particular emphasis on the Northeast region and the Andaman and Nicobar Islands.

Objectives:

  1. Expand oil palm acreage by an additional 6.5 lakh hectares by 2025-26
  2. Increase crude palm oil production to 11.2 lakh tonnes by 2025-26, reaching up to 28 lakh tonnes by 2029-30.
  3. Increase consumer awareness to maintain a consumption level of 19.00 kg/person/annum till 2025-26.

Focus Areas

(1)  Fixing of Viability Price

  • Oil palm farmers currently produce Fresh Fruit Bunches (FFBs), from which the industry extracts oil.
  • Presently, FFB prices fluctuate with international Crude Palm Oil (CPO) prices.
  • The Government of India will now assure price stability for FFBs, known as Viability Price (VP), shielding farmers from international CPO price fluctuations.
  • A Formula Price (FP), set at 14.3% of CPO and adjusted monthly, will be established. Viability gap funding will be the difference between VP and FP, directly disbursed to farmers’ accounts via Direct Benefit Transfer (DBT) when necessary.

(2) Input Assistance

  • The scheme’s second major focus is to significantly enhance input assistance/interventions, including:
    1. Increasing assistance for oil palm planting material from Rs. 12,000 to Rs. 29,000 per hectare.
    2. Boosting support for maintenance and intercropping interventions.
    3. Providing special assistance of Rs. 250 per plant for replanting old gardens to rejuvenate them.
    4. Offering special assistance tailored for the North-East and Andaman regions, including provisions for half-moon terrace cultivation, bio-fencing, land clearance, and integrated farming.

Try this PYQ from CSE Prelims 2019:

Among the following, which one is the largest exporter of rice in the world in the last five years?

(a) China

(b) India

(c) Myanmar

(d) Vietnam

 

Practice MCQ:

Consider the following statements:

  1. India is the world’s biggest importer of vegetable oils.
  2. The top three vegetable oil imports include – soybean, palm and groundnut oil.

Which of the given statements is/are correct?

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

 

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

[pib] Integration of Kisan Credit Card (KCC) Fisheries Scheme and JanSamarth Portal

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Kisan Credit Cards (KCC) Scheme, JanSamarth Portal

Mains level: NA

Why in the news-

  • The Department of Fisheries inaugurated the integration of the Kisan Credit Card (KCC) Fisheries scheme onto the JanSamarth Portal, marking a revolutionary step in providing credit facilities to fishers and fish farmers nationwide.

JanSamarth Portal

  • It is a first-of-its-kind online platform for directly connecting lenders with beneficiaries. Citizens can avail loans under 13 Central government schemes under 4 loan categories.
  • The one-stop portal allows citizens to check eligibility, apply online and get digital approval.

About KCC Fisheries Scheme

  • The GoI, in the year 2018-19, extended KCC facility to fisheries and animal husbandry farmers to help them to meet their working capital requirements.
  • Bank authorities have been instructed to issue KCC within 14 days of receipt of the completed application from the fish farmers.
  • Benefits Include:
  1. For the existing KCC holders the benefits of interest subvention and prompt repayment incentive will be admissible up to the credit limit of Rs. 3 lakhs including fisheries activities.
  2. In the case of new card holders, the credit limit is Rs. 2 lakhs to meet their working capital requirements for fisheries activities.
  3. In the KCC scheme @7% is the lending rate to farmers including @2% interest subvention per annum by GoI. Also, another @3% per annum is provided in case of prompt repayment as an additional incentive as per the existing guidelines.
  4. This implies that the farmers repaying promptly as above would get a loan @ 4% per annum effectively for loan amount upto Rs 2 lakhs.

Kisan Credit Cards (KCC) Scheme

  • The KCC scheme was introduced on the recommendation of R.V. Gupta of the National Bank for Agriculture and Rural Development.
  • The scheme was launched in 1998 to provide adequate and timely credit support from the banking system to the farmers.
  • It provides a single window with flexible and simplified procedures to the farmers for their cultivation and other needs like purchasing agriculture inputs such as seeds, fertilizers, pesticides etc. and drawing cash for their production needs.
  • The scheme was further extended for the investment credit requirement of farmers viz. allied and non-farm activities in the year 2004.
  • In 2018-19, it was extended to fisheries and animal husbandry farmers.

Objectives include:

  1. To meet the short-term credit requirement for cultivation
  2. To manage post-harvest expenses
  3. To meet the consumption requirement of farmer’s household
  4. Working capital for maintaining the farm assets and activities allied to agriculture
  5. Investment credit requirement for agriculture-allied activities

KCC scheme is implemented by:

  1. Commercial banks
  2. Regional Rural Banks (RRBs)
  3. Small Financial Banks, and
  4. Cooperative banks

Try this PYQ from CSE Prelims 2020:

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

  1. Working capital for maintenance of farm assets
  2. Purchase of combine harvesters, tractors and mini trucks
  3. Consumption requirements of farm households
  4. Post-harvest expenses
  5. Construction of family house and setting up of village cold storage facility

Select the correct answer:

(a) 1, 2 and 5 only

(b) 1, 3 and 4 only

(c) 2, 3, 4 and 5 only

(d) 1, 2, 4 and 5

 

Practice MCQ:

The JanSamarth Portal often seen in the news is related to:

(a) Lending Facility

(b) E-KYC

(c) Consumer Grievances

(d) Right to Information

 

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