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Type: Schemes

  • Skilling India – Skill India Mission,PMKVY, NSDC, etc.

    [pib] Grameen Udyami Scheme

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Grameen Udyami Scheme

    Mains level: Not Much

    grameen

    The Ministry of Skill Development and Entrepreneurship the felicitation program of 200 tribal women under the Grameen Udyami Scheme.

    Grameen Udyami Scheme

    • It was launched to augment skill training in tribal communities for their inclusive and sustainable growth.
    • It is a unique multiskilling project, funded by National Skill Development Corporation (NSDC) that aims to train tribal students in select states.
    • It is implemented under Sansadiya Parisankul Yojana.
    • Under the program, 49 ST clusters in 15 states of India have been selected by 40 tribal MPs of Lok Sabha and Rajya Sabha.
    • Under their leadership, the scheme in respective clusters is being implemented.
    • One development associate is appointed by the MPs in each cluster.

    Stated objectives

    • Increase in Rural/Local Economy
    • Enhance employment opportunities
    • Reduce forced migration due to lack of local opportunities
    • Conservation of natural resources

    Scope of the project

    • The project is being implemented in six states – Maharashtra, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Gujarat.

    Benefits

    • Transportation, boarding & lodging during the learning period is provided to candidates
    • The training under the project will be conducted in the job roles which are relevant to the local economy.

     

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  • Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

    Free foodgrain scheme named ‘PM Garib Kalyan Anna Yojana’

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NFSA, PMGKAY

    Mains level: Schemes related to food security

    The Centre has named its new free foodgrain scheme under the National Food Security Act, 2013, as ‘Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)’.

    PM Garib Kalyan Anna Yojana

    • PM had approved the new integrated food security scheme for providing free foodgrains for a year beginning January 1, 2023 to beneficiaries under the NFSA –
    1. Antyodaya Anna Yojana (AAY)
    2. Primary Household (PHH)

    How is it different from earlier scheme?

    • The difference between the two schemes is that about 81 crore NFSA beneficiaries were entitled to get free of cost 5 kg foodgrain per person in a month over and above their monthly entitlements.
    • However, they were required to pay the subsidised rate of foodgrains (Rs 3 per kg rice, Rs 2 per kg wheat and Rs 1 per kg coarse grains) to purchase the quantity for which they were entitled–35 kg per Antyoday Anna Yojana Household and 5kg per person to a Priority Household in a month.
    • In the new scheme, the government has done away with the subsided prices and is providing foodgrains free of cost for a year.
    • Now the additional quantity, which was available during the Covid pandemic, will not be provided to these beneficiaries.
    • They will receive as much quantity of foodgrains, for which they are entitled under the NFSA.

    Implementation strategy

    • For effective and uniform implementation of NFSA 2013, PMGKAY will subsume the two subsidy schemes of Department of Food & Public Distribution –
    1. Food Subsidy to FCI and
    2. Food Subsidy for decentralized procurement states dealing with procurement, allocation and delivery of free foodgrains to the states under NFSA

    National Food Security (NFS) Act

    • The NFS Act, of 2013 aims to provide subsidized food grains to approximately two-thirds of India’s 1.2 billion people.
    • It was signed into law on 12 September 2013, retroactive to 5 July 2013.
    • It converts into legal entitlements for the existing food security program of the GoI.
    • It includes the Midday Meal Scheme, Integrated Child Development Services (ICDS) scheme and the Public Distribution System (PDS).
    • Further, the NFSA 2013 recognizes maternity entitlements.
    • The Midday Meal Scheme and the ICDS are universal in nature whereas the PDS will reach about two-thirds of the population (75% in rural areas and 50% in urban areas).
    • Pregnant women, lactating mothers, and certain categories of children are eligible for daily free cereals.

    Key provisions of NFSA

    • The NFSA provides a legal right to persons belonging to “eligible households” to receive foodgrains at a subsidized price.
    • It includes rice at Rs 3/kg, wheat at Rs 2/kg, and coarse grain at Rs 1/kg — under the Targeted Public Distribution System (TPDS).
    • These are called central issue prices (CIPs).

     

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  • Prime Minister’s Office : Important Updates

    PM launches Aspirational Block Programme

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Aspirational Block Programme (ABP)

    Mains level: Read the attached story

    aspirational

    Prime Minister has launched the government’s Aspirational Block Programme (ABP), which is aimed at improving the performance of blocks lagging on various development parameters.

    Aspirational Block Programme (ABP)

    • The Aspirational Blocks Programme is on the lines of the Aspirational District Programme that was launched in 2018 and covers 112 districts across the country.
    • The Centre had announced its intention to launch this initiative in the Union Budget 2022-23.
    • The programme will cover 500 districts across 31 states and Union Territories initially.
    • Over half of these blocks are in 6 states—Uttar Pradesh (68 blocks), Bihar (61), Madhya Pradesh (42), Jharkhand (34), Odisha (29) and West Bengal (29).
    • However, states can add more blocks to the programme later.

    About Aspirational Districts Programme (ADP)

    • Launched in January 2018, the ‘Transformation of Aspirational Districts’ initiative aims to remove this heterogeneity through a mass movement to quickly and effectively transform these districts.
    • The broad contours of the program are Convergence (of Central & State Schemes), Collaboration (of Central, State level ‘Prabhari’ Officers & District Collectors), and Competition among districts driven by a spirit of mass Movement.
    • With States as the main drivers, this program will focus on the strength of each district, identify low-hanging fruits for immediate improvement, measure progress, and rank districts.

    Behind the name

    • PM then negated the idea of naming any scheme based on their backwardness.
    • Rather the name ‘Aspirational’ presents a more affirmative action-based execution of the scheme.

    Selection of districts

    • A total of 117 Aspirational districts have been identified by NITI Aayog based upon composite indicators.
    • The objective of the program is to monitor the real-time progress of aspirational districts based on 49 indicators (81 data points) from the 5 identified thematic areas.

    Weightage has been accorded to these districts as below:

    • Health & Nutrition (30%)
    • Education (30%)
    • Agriculture & Water Resources (20%)
    • Financial Inclusion & Skill Development (10%)
    • Basic Infrastructure (10%)

    Strategy of the ADP

    The core Strategy of the program may be summarized as follows.

    • Making development a mass movement in these districts
    • Identify low hanging fruits and the strength of each district, to act as a catalyst
    • for development.
    • Measure progress and rank districts to spur a sense of competition.
    • Districts shall aspire to become State’s best to Nation’s best.

    Features of the ADP

    • It has transformed into a Jan Andolan.
    • The ADP is different in trying to monitor the improvement of these districts through real-time data tracking.
    • The programme seeks to develop convergence between selected existing central and state government programmes.
    • District performance in the public domain and experience building of the district bureaucracy is another notable feature.
    • The programme is targeted, not towards any single group of beneficiaries, but rather towards the population of the district as a whole.

    What makes this program special?

    The program reflects what has become of the development project in India under neoliberalism, especially after the end of planning.

    • Long overdue sectors have been given more emphasis.
    • It is not a tailor-made program with one-size-fit strategy. More onus has been laid on the districts. It has a district-intervention strategy.
    • It works on the principle of SWOT (strength, weakness, opportunity and threats) model and comparison with national best parameters for effective resource management.
    • It is the most reviewed programme by the Prime Minister.
    • A general idea behind the idea is that a good work never goes un-noticed. It is duly appreciated on social media as well as by the officials.

    Programmatic Strengths

    • A key strength of the ADP is the collection of baseline data and follow-ups at regular intervals.
    • Sustaining this effort would create a robust compilation of statistics for use by both researchers and policy-makers.
    • In doing this, the government also brings much-needed attention to human development and a willingness to meet the Sustainable Development Goals (SDGs).
    • Incremental progress being made in the chosen districts as reflected in the rankings.
    • The programme also claims to be “non-partisan and unbiased” and geared towards all-India growth.
    • The selection of districts indeed suggests that the programme has not favored any bias either regional, political or any other.
    • The programme seeks convergence of central and state schemes anchored around specific activities.

    Issues with the programme

    • Using the case of Bihar, they argue that the programmes selection of districts itself is problematic.
    • In fact, it actually excludes the most backward districts because per capita income, the most basic measure of development, has not been considered.
    • There seems to be some ambiguity around the issue of whether the programme is concerned only with improved access or also with the quality of service provided.
    • The indicators used are not defined relationally, rather they are static human development indicators that do not see people mired in dynamic social relations.
    • It is also accused that the state is not making any new or focused public investment (except for possible use of Flexi-funds) into these districts, on the other hand, it is moralizing about their inability to improve (through rankings).
    • The programme is carrying the burden of proving the government’s “developmental” work without addressing any of the fundamental issues around achieving equitable development.
    • Yet, the NITI Aayog justifies the overall approach as capitalizing on “low-hanging fruit.”

    Way forward

    • The program has been able to make difference in the lives of citizens of India, in education, health, nutrition, financial inclusion, skill development and this has made a difference to some most backward and most geographically far-flung districts of the nation.
    • ADP is ‘aligned to the principle of “leave no one behind—the vital core of the SDGs. Political commitment at the highest level has resulted in the rapid success of the program the report said.
    • UNDP has recommended revising a few indicators that are slightly close to reaching their saturation or met by most districts like ‘electrification of households’ as an indicator of basic infrastructure.

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  • Housing for all – PMAY, etc.

    In news: Affordable Rental Housing Complexes

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: AHRC

    Mains level: Housing for All

    A Parliamentary panel has asked the government to clarify how many of the 66 proposals received under the Affordable Rental Housing Scheme launched for the urban poor, especially migrant workers, during the COVID-19 pandemic have been approved by their respective local urban bodies.

    Affordable Rental Housing Scheme

    • AHRC is a sub-scheme under PM Awas Yojana – Urban.
    • Under the scheme, existing vacant government-funded housing complexes will be converted in ARHCs through Concession Agreements for 25 years.
    • The concessionaire will make the complexes livable by repair/retrofit and maintenance of rooms and filling up infrastructure gaps like water, sewer/ septage, sanitation, road etc.
    • States/UTs will select concessionaire through transparent bidding.
    • Complexes will revert to ULB after 25 years to restart next cycle like earlier or run on their own.

    Beneficiaries of the scheme

    • A large part of the workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students etc. who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.

    Benefits of AHRCs

    • Usually, these migrants live in slums, informal/ unauthorized colonies or peri-urban areas to save rental charges.
    • They spend a lot of time on roads by walking/ cycling to workplaces, risking their lives to cut on the expenses.
    • ARHCs will create a new ecosystem in urban areas making housing available at affordable rent close to the place of work.
    • Investment under ARHCs is expected to create new job opportunities.
    • ARHCs will cut down unnecessary travel, congestion and pollution.

    Back2Basics: Pradhan Mantri Awas Yojana (PMAY)

    PMAY-Urban

    The PMAY- Urban Programme launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in Mission mode envisions provision of Housing for All by 2022. The Mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals:

    • Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource
    • Promotion of Affordable Housing for weaker section through credit linked subsidy
    • Affordable Housing in Partnership with Public & Private sectors
    • Subsidy for beneficiary-led individual house construction /enhancement.

    PMAY-Rural

    • In pursuance to the goal – Housing for all by 2022, the rural housing scheme Indira Awas Yojana has been revamped to Pradhan Mantri Awaas Yojana – Gramin and approved during March 2016.
    • Under the scheme, financial assistance is provided for construction of a pucca house to all houseless and households living in dilapidated houses.
    • It is proposed that one crore households would be provided assistance for construction of pucca house under the project during the period from 2016-17 to 2018-19.
    • The scheme would be implemented in rural areas throughout India except for Delhi and Chandigarh. The cost of houses would be shared between the Centre and States.

     

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  • Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

    81 crore people to get free foodgrains for one year under NFSA

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NFSA, PMGKAY

    Mains level: Schemes related to food security

    The government discontinued the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and has decided to provide free foodgrains to all 81 crore beneficiaries covered under the National Food Security Act (NFSA) for one year.

    About PMGKAY

    • PMGKAY is a food security welfare scheme announced by the GoI in March 2020, during the COVID-19 pandemic in India.
    • The program is operated by the Department of Food and Public Distribution under the Ministry of Consumer Affairs, Food and Public Distribution.
    • The scale of this welfare scheme makes it the largest food security program in the world.

    Targets of the scheme

    • To feed the poorest citizens of India by providing grain through the Public Distribution System to all the priority households (ration card holders and those identified by the Antyodaya Anna Yojana scheme).
    • PMGKAY provides 5 kg of rice or wheat (according to regional dietary preferences) per person/month and 1 kg of dal to each family holding a ration card.

    Success of the scheme

    • Pandemic mitigation: It was the first step by the government when pandemic affected India.
    • Wide section of beneficiaries: The scheme reached its targeted population feeding almost 80Cr people.
    • Support to migrants: It has proven to be more of a safety net to migrant people who had job and livelihood losses.
    • Food and Nutrition security: This has also ensured nutrition security to children of the migrant workers.

    Limitations of the scheme

    • Corruption: The scheme has been affected by widespread corruption, leakages and failure to distribute grain to the intended recipients.
    • Leakages: Out of the 79.25 crore beneficiaries under the National Food Security Act (NFSA), only 55 crore have so far received their 5 kg.
    • Inaccessibility: Many people were denied their share due to inability to access ration cards.
    • Low consumption: Livelihood losses led to decline in aggregate demand and resulted into lowest ever consumption expenditure by the people owing to scarcity of cash.
    • Resale of subsidized grains: This in turn led to selling of the free grains obtained in the local markets for cash.

    Back2Basics: National Food Security (NFS) Act

    • The NFS Act, 2013 aims to provide subsidized food grains to approximately two-thirds of India’s 1.2 billion people.
    • It was signed into law on 12 September 2013, retroactive to 5 July 2013.
    • It converts into legal entitlements for existing food security programmes of the GoI.
    • It includes the Midday Meal Scheme, Integrated Child Development Services (ICDS) scheme and the Public Distribution System (PDS).
    • Further, the NFSA 2013 recognizes maternity entitlements.
    • The Midday Meal Scheme and the ICDS are universal in nature whereas the PDS will reach about two-thirds of the population (75% in rural areas and 50% in urban areas).
    • Pregnant women, lactating mothers, and certain categories of children are eligible for daily free cereals.

    Key provisions of NFSA

    • The NFSA provides a legal right to persons belonging to “eligible households” to receive foodgrains at a subsidised price.
    • It includes rice at Rs 3/kg, wheat at Rs 2/kg and coarse grain at Rs 1/kg — under the Targeted Public Distribution System (TPDS).
    • These are called central issue prices (CIPs).

     

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  • Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

    Tamil Nadu’s CM Breakfast Scheme

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: CM Breakfast Scheme

    Mains level: Mid-day meal program

    This newscard talks for replicating Tamil Nadu’s CM breakfast scheme in other states.

    CM’s Breakfast Scheme

    • The scheme covers around 1.14 lakh students in 1,545 schools which include 417 municipal corporation schools, 163 municipality schools and 728 taluk and village panchayat-level schools.
    • The inauguration of the scheme marks an important milestone in the State’s history of providing free meals to school students.

    How has the idea evolved?

    (a) Pre-independence

    • In November 1920, the Madras Corporation Council approved a proposal for providing tiffin to the students of a Corporation School at Thousand Lights at a cost not exceeding one anna per student per day.
    • Theagaraya Chetty, the then President of the Corporation and one of the stalwarts of the Justice Party, said the boys studying at the school were poor, which affected the strength of the institution ‘greatly’.
    • The scheme, which was extended to four more schools and facilitated higher enrollment of students.

    (b) Post-independence

    • The concept saw a Statewide application in 1956 when the then CM K. Kamaraj decided to provide free noon meal to poor children in all primary schools across the State.
    • The Budget for 1956-57 contained a provision for supplying mid-day meals to schoolchildren for 200 days a year, initially covering 65,000 students in 1,300 feeding centres.
    • In July 1982, it was left to the then CM MG Ramachandran to extend the programme to children in the 2-5 age group in Anganwadis and those in 5-9 age group in primary schools in rural areas.
    • Subsequently, the scheme now called Puratchi Thalaivar MGR Nutritious Meal Programme — was extended to urban areas as well.
    • Since September 1984, students of standards VI to X have been covered under the scheme.

    Beneficiaries of the programme

    • As of now, there are nearly 7 lakh beneficiaries spread over 43,190 nutritious meal centres.
    • This includes around 3,500 students of National Child Labour Project (NCLP) special schools.
    • Besides, as a consequence of the collaborative implementation of the Integrated Child Development Scheme (ICDS) and the nutritious meal programme, around 15.8 lakh children in the age group of 2+ to 5+ years receive nutritious meals.

    Impact on school education

    • Rise in enrolment: After the improved version of the mid-day meal scheme in 1982, the Gross Enrollment Ratio (GER) at primary level (standards I to V) went up by 10% during July-September, 1982 as compared to the corresponding period in 1981.
    • Girls’ enrolment: The rise in boys’ enrollment was 12% and in the case of girls, 7%, according to a publication brought out by the Tamil Nadu government on the occasion of the launch of the Scheme.
    • Increase in attendance: Likewise, attendance during July-September 1982 rose by 33% over the previous year’s figure.

    Focus areas programme

    • Anaemia is a major health problem in Tamil Nadu, especially among women and children, says the 2019-21 National Family Health Survey (NFHS)-5’s report.
    • From 50% during the period of the 2015-16 NFHS-4, the prevalence of anaemia in children now went up to 57%.
    • This and many other health issues can be addressed through the combined efforts of the departments of School Education, Public Health and Social Welfare and Women Empowerment.
    • Besides, a continuous and rigorous review of the progress of the scheme and nutritious meal programme should be carried out in a sustained manner.

    Why it can be implemented in other states?

    • An interesting feature of this scheme is the cost-effective delivery of the service as it is complementary to the existing schemes.
    • Further, the income of the Anganwadi workers substantially increased on account of multiple roles played by them.
    • In the same way, the morning breakfast scheme makes use of the physical infrastructure (like cooking place and utensils) built for mid-day meals scheme.

    Conclusion

    • In other words, with small additional expenditure, the government is able to provide substantial benefits to the children
    • The scheme must be extended to all the schools in the state.
    • Further, the scheme is worth replicating in other states in India.

     

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  • MGNREGA Scheme

    Government forms panel to look into MGNREGA’s efficacy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: MGNREGA

    Mains level: Read the attached story

    mgnrega

    The Central government has constituted a panel to review the implementation and assess efficacy as a poverty alleviation tool of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.

    About the review committee

    • The committee is headed by former Rural Development secretary Amarjeet Sinha.
    • It had its first meeting on November 21, 2022, and has been given three months to submit its suggestions.
    • It is tasked to study the various factors behind demand for MGNREGA work, expenditure trends and inter-State variations, and the composition of work.
    • It will suggest what changes in focus and governance structures are required to make MGNREGA more effective.

    What is MGNREGA?

    • The MGNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act of 2005.
    • This is labour law and social security measure that aims to guarantee the Right to Work’.
    • The act was first proposed in 1991 by V. Narasimha Rao.

    What is so unique about it?

    • MGNREGA is unique in not only ensuring at least 100 days of employment to the willing unskilled workers, but also in ensuring an enforceable commitment on the implementing machinery i.e., the State Governments, and providing a bargaining power to the labourers.
    • The failure of provision for employment within 15 days of the receipt of job application from a prospective household will result in the payment of unemployment allowance to the job seekers.
    • Any Indian citizen above the age of 18 years who resides in rural India can apply for the NREGA scheme. The applicant should have volunteered to do unskilled work.
    • Employment is to be provided within 5 km of an applicant’s residence, and minimum wages are to be paid.
    • Thus, employment under MGNREGA is a legal entitlement.

    Why is MGNREGS under fire these days?

    • Not enough work: Bihar despite its levels of poverty, does not generate enough work to make a concrete difference, and on the other end of spectrum we have Kerala which is economically better but has been utilising it for asset creation.
    • No asset creation: There is a lack of tangible asset creation. The committee will study if the composition of work taken up presently under the scheme should be changed.

    Issues in implementation

    • Insufficient budgetary allocations: Increase in the nominal budget but actual budget (after adjusting inflation) decreased over the years.
    • Approved Labour Budget Constraints: The Centre through the arbitrary “Approved Labour Budget” has reduced the number of days of work and put a cap on funds through the National Electronic Fund Management System
    • Not so attractive wages rate: Currently, MGNREGA wage rates of 17 states are less than the corresponding state minimum wages.
    • Delay in wage payments: Under the MGNREGA, a worker is entitled to get his or her due wages within a fortnight of completion of work, failing which the worker is entitled to the compensation.
    • No-work situations are rising: None of the states was able to provide full 100 days employment as mentioned in the scheme.
    • Data manipulations by authorities: A recent study has found that data manipulation in the MGNREGA is leading to gross violations in its implementation.
    • Non-purposive spending and corruptions: Many works sanctioned under MGNREGA often seem to be non-purposive. Quite often, they are politically motivated hotspots to create rampant corruption.
    • Centralization weakening local governance: A real-time MIS-based implementation and a centralised payment system has further left the representatives of the Panchayati Raj Institutions with literally no role in implementation.

    Conclusion

    • Large scale social security programmes like MGNREA are subjected to undergo several stumbling blocks in the times of ongoing pandemic.
    • Government and NGOs must study the impact of MGNREGA in rural areas so as to ensure that this massive anti-poverty scheme is not getting diluted from its actual path.
    • We must view MGNREGA as an opportunity and explicitly include it in a broad-based strategy to tackle any socie-economic crisis.

     

    Answer this PYQ in the comment box:

    Q. Among the following who are eligible to benefit from the “Mahatma Gandhi national rural employment guarantee act”?

    (a) Adult members of only the scheduled caste and scheduled tribe households.

    (b) Adult members of below poverty line (BPL) households.

    (c) Adult members of households of all backward communities.

    (d) Adult members of any household.

     

    Post your answers here.

     

     

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

    What are Rythu Bharosa Kendras?

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Rythu Bharosa

    Mains level: Read the attached story

    rythu

    Ethiopian Agricultural Minister is in Andhra Pradesh (AP) to study the first-of-its-kind Rythu Bharosa Kendras (RBKs).

    What are Rythu Bharosa Kendras?

    • Set up for the first time in the country, the RBKs are unique seeds-to-sales, single-window service centres for farmers that have been set up across the state.
    • They are a one-stop solution to all farmers’ needs and grievances. RBKs sell pre-tested quality seeds, certified fertilisers and animal feed.
    • Farmers can purchase or hire farm equipment, and even sell their produce at the prevailing MSP in the RBKs.
    • The RBKs provide services like soil testing and make recommendations — on which crops to sow, and quantity and type of fertiliser to be used.
    • The state government also pays crop insurance, procures grains and makes payments to farmers through the RBKs.

    Have the RBKs proved to be helpful to farmers?

    • RBKs facilitate interaction between farmers, agriculture scientists, and agriculture extension officers right at the village level.
    • Apart from providing services and items for sale, RBK officials demonstrate new farm equipment and provide training to farmers.
    • Based on inputs provided by officials after soil testing and weather conditions, many farmers have changed their cropping patterns and benefited immensely.
    • The RBKs have been responsible for elimination of spurious seeds and uncertified and dangerous fertilisers, which can cause crop damage and failures.
    • The RBKs, staffed by agriculture and horticulture graduates, help farmers decide the crops they should cultivate in a scientific manner.

    How has it been received by the Centre?

    • The Centre has recently nominated the RBK concept for the Food and Agriculture Organisation’s “Champion’’ award.

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  • Coronavirus – Economic Issues

    Centre raises credit limit under ECLGS

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: ECLGS Scheme

    Mains level: Not Much

    The Ministry of Finance has raised the credit limit for airlines under the Emergency Credit Line Guarantee Scheme (ECLGS), making them eligible for a sum equivalent to 100% of their outstanding debt, up to a maximum of ₹1,500 crore.

    Boost for Aviation sector

    • Earlier, airlines were eligible to borrow up to 50% of their credit outstanding up to ₹400 crore.
    • This is the second time the government has liberalized the scheme for the aviation sector.
    • The scheme introduced for medium and small enterprises during the outbreak of the COVID-19 pandemic was extended till March 2023 and its guarantee cover expanded by ₹50,000 crore to ₹5 lakh crore.

    What is ECLGS?

    • Under the Scheme, 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. 3 lakh crore to eligible MSMEs and interested MUDRA borrowers.
    • The credit will be provided in the form of a Guaranteed Emergency Credit Line (GECL) facility.
    • The Scheme would be applicable to all loans sanctioned under GECL Facility during the period from the date of announcement of the Scheme to 31.10.2020.

    Aims and objectives

    • The Scheme aims at mitigating the economic distress faced by MSMEs by providing them additional funding in the form of a fully guaranteed emergency credit line.
    • The main objective is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and NBFCs to increase access to, and enable the availability of additional funding facility to MSME borrowers.
    • It aims to provide a 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.

    Salient features of ECGLS

    • The entire funding provided under GECL shall be provided with a 100% credit guarantee by NCGTC to MLIs under ECLGS.
    • Tenor of the loan under Scheme shall be four years with a moratorium period of one year on the principal amount.
    • No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
    • Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.

     

     

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  • Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

    Centre extends Free Ration Scheme PMGKAY for 3 months

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: PMGKAY

    Mains level: Schemes related to food security

    The Union government has extended the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for another three months from October 1.

    What is PMGKAY?

    • PMGKAY is a food security welfare scheme announced by the GoI in March 2020, during the COVID-19 pandemic in India.
    • The program is operated by the Department of Food and Public Distribution under the Ministry of Consumer Affairs, Food and Public Distribution.
    • The scale of this welfare scheme makes it the largest food security program in the world.

    Targets of the scheme

    • To feed the poorest citizens of India by providing grain through the Public Distribution System to all the priority households (ration card holders and those identified by the Antyodaya Anna Yojana scheme).
    • PMGKAY provides 5 kg of rice or wheat (according to regional dietary preferences) per person/month and 1 kg of dal to each family holding a ration card.

    At what rate are food grains provided under the NFSA?

    • NFSA beneficiaries are entitled to receive foodgrains at highly subsidised rates.
    • Under the food law, rice is provided at Rs 3 per kg, wheat at Rs 2 per kg, and coarse grains at Re 1 per kg.

    Why was such a scheme needed?

    • The devastation by pandemic has increased manifold in the second wave resulting into localized restrictions and lockdowns from the States.
    • This resulted in massive jobs losses in urban areas since the largest employers being construction and hospitality sectors have been completely shut down.
    • The virus penetrated deeper in the countryside in rural areas halting almost every sources of livelihood.
    • These areas are such where 60% of the income was earned from non-pharm activities. This resulted in livelihood losses of large section of population.

    Success of the scheme

    • It was the first step by the government when pandemic affected India.
    • The scheme reached its targeted population feeding almost 80Cr people.
    • It has proven to be more of a safety net to migrant people who had job and livelihood losses.
    • This has also ensured nutrition security to children of the migrant workers.

    Failures

    • The scheme has been affected by widespread corruption, leakages and failure to distribute grain to the intended recipients.
    • Several of the states above have claimed that the ineffective distribution has been caused by the beneficiaries, especially migrant workers, not being available to receive their rations.
    • Out of the 79.25 crore beneficiaries under the National Food Security Act (NFSA), only 55 crore have so far received their 5 kg.
    • However, almost 90% of beneficiaries have received their regular subsidized grain for the month, raising questions over why the free grain has reached fewer beneficiaries.
    • Many people were denied their share due to inability to access ration cards.
    • Livelihood losses led to decline in aggregate demand and resulted into lowest ever consumption expenditure by the people owing to scarcity of cash.
    • This in turn led to selling of the free grains obtained in the local markets for cash.

    Way forward

    • There should be an all-encompassing database for migrant workers and their family. This should accurately capture the data on migration.
    • The One Nation One Ration Card should be implemented in true spirit by all the states.
    • Along with food security, there should be a sustainable income support through schemes like MGNREGS accompanied by free vaccines in nearest future.
    • The leakages in PDS should be minimized through modernize PDS.
    • To avoid leakages, there should be food-token system.

     

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