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Type: Schemes

  • North-East India – Security and Developmental Issues

    PM’s Development Initiative for North East (PM-DevINE)

    2 February 2022 | Schemes | Economics
    Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: PM-DevINE

    Mains level: Infra push for NE region

    Union Budget 2022-23 provided for a new scheme, Prime Minister’s Development Initiative for North East (PM-DevINE) will be implemented through the North-Eastern Council.

    PM-DevINE

    • It will fund infrastructure, in the spirit of PM GatiShakti, and social development projects based on felt needs of the northeast.
    • This will enable livelihood activities for youth and women, filling the gaps in various sectors.
    • While the Central Ministries may also pose their candidate projects, priority will be given to those posed by the States.

    Some of the projects to be implemented are:

    1. Dedicated Services for the Management of Paediatric and Adult Haemotolymphoid Cancers in North East India, Guwahati
    2. Construction of Aizawl bypass on western side, gap funding for passenger ropeway system for Pelling to Sanga-Choeling in West Sikkim
    3. Gap funding for eco-friendly Ropeway (Cable Car) from Dhapper to Bhaleydhunga in South Sikkim
    4. Pilot project for the construction of Bamboo Link Road at different locations in various districts in Mizoram

     

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  • Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

    What is Design Linked Incentive (DLI) Scheme?

    1 February 2022 | Schemes | Economics
    Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: DLI scheme

    Mains level: Electronic manufacturing in India

    India has invited applications from 100 domestic companies, startups, and small and medium enterprises to become a part of the design-linked incentive (DLI) scheme.

    What is the DLI scheme?

    • Aims to provide financial and infrastructural support to companies setting up fabs or semiconductor making plants in India.
    • It aims to attract existing and global players as it will support their expenditures related to design software, IP rights, development, testing, and deployment.
    • Centre for Development of Advanced Computing (CDAC), a scientific society operating under MeitY, will serve as the nodal agency for the implementation of the DLI scheme.

    Components of the scheme

    It has three components which are

    1. Chip Design infrastructure support: C-DAC will set up the India Chip Centre to host the state-of-the-art design infrastructure (viz. EDA Tools, IP Cores, and support for MPW (Multi Project Wafer fabrication) & post-silicon validation) and facilitate its access to supported companies.
    2. Product Design Linked Incentive: Reimbursement of up to 50% of the eligible expenditure subject to a ceiling of Rs. 15 Crore per application will be provided as financial support to the approved applicants who are engaged in semiconductor design.
    3. Deployment Linked Incentive: An incentive of 6% to 4% of net sales turnover over 5 years subject to a ceiling of Rs. 30 Crore per application will be provided to approved applicants whose semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design are deployed in electronic products.

    Why need such a scheme?

    Ans. Growing semiconductor demand in India

    • The semiconductor industry is growing fast and can reach $1 trillion dollars in this decade. India can grow fast and reach $64 billion by 2026 from $27 billion today.
    • Mobiles, wearables, IT, and industrial components are the leading segments in the Indian semiconductor industry contributing around 80% of the revenues in 2021.
    • The mobile and wearables segment is valued at $13.8 billion and is expected to reach $31.5 billion in 2026.

    A boost to semiconductor manufacturing

    • The sudden surge in demand for chips and semiconductor components has underpinned the need to establish a robust semiconductor ecosystem in India.
    • Several sectors, including auto, telecom, and medical technology suffered due to the unexpected surge leading to the scarcity of chips manufactured by only a few countries.
    • The inception of new companies will help in meeting the demand and supply and encourage innovation in India.

    What are other countries doing to be dominant in the race of chip-making?

    • Currently, semiconductor manufacturing is dominated by companies in the U.S., Japan, South Korea, Taiwan, Israel, and the Netherlands.
    • They are also making efforts in solving the chip shortage problem.
    • The US wants to bring manufacturing back to America and reduce the country’s reliance on a small number of chipmakers based largely in Taiwan and South Korea.
    • These chipmakers produce up to 70% of the world’s semiconductors.

    Challenges in India

    • No incubation: In India, more than 90% of global companies already have their R&D and design centers for semiconductors but never established their fabrication units.
    • Strategic sector: Although India has semiconductor fabs in Mohali and Bangalore, they are purely strategic for defense and space applications only
    • Capital requirement: Setting up fabs is capital intensive and needs investment in the range of $5 billion to $10 billion.
    • Lack of supportive policies: Lack of investments and supportive government policies are some of the challenges to setting up fabs in India.
    • Geopolitical limitations: A combination of capital and the geopolitical situation comes into play to build new fabs.

    Way forward

    • Further incentivization: Schemes like the DLI are crucial to avoid high dependencies on a few countries or companies.
    • Raw material supply: Several gases and minerals which are a part of the global semiconductor supply chain are produced in India.
    • Large talent pool: Availability of highly-skilled engineers for semiconductor manufacturing.

    Conclusion

    • The 21st century will be an era of Digital revolution signifying an increased use of mobile phones and computer devices. This enhanced usage can be met only with a robust availability of semiconductor chips that sustains their functioning. Therefore India needs to focus on the indigenous development of semiconductors in order to realize its digital potential and emerge as a strong power in the present era.

     

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    [pib] One District One Product (ODOP) Initiative

    25 January 2022 | Schemes | Economics
    Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: One District One Product (ODOP)

    Mains level: Not Much

    As a major boost to Centre and State collaboration in promoting products under the ODOP Initiative – a State Conference was recently held by the Department for Promotion of Industry and Internal Trade (DPIIT).

    One District One Product (ODOP)

    • ODOP spearheaded by the Uttar Pradesh government in 2018, is an important initiative that is being adopted all over India to realize the true potential of each district.
    • ODOP is an initiative which is seen as a transformational step forward towards realizing the true potential of a district, fuel economic growth and generates employment and rural entrepreneurship.
    • It is operationally merged with ‘Districts as Export Hub’ initiative being implemented by DPIIT as a major stakeholder.
    • The main philosophy is to select, brand and promote one product from each district of India that has a specific characteristic feature to enable profitable trade in that product and generate employment.

    Why need this scheme?

    • India is home to several agricultural and non-agricultural (including manufacturing) products that are region-specific.
    • Every district has products that are unique and provide livelihoods and generate income.
    • This scheme is in tune with the PM’s call to transform every district into an export hub and realize the goal of Atmanirbhar Bharat.

    What needs to be done for its success?

    The important aspect that the policy initiatives in India should thus be mindful of are:

    • Ownership of the initiative should lie at the center of implementation.
    • The stakeholders irrespective of the sector along the value chain need to be identified and provided information and awareness.
    • It is important to streamline other initiatives such as registration of Geographical Indications (GI), formation and development of farmer producer organizations etc.

     

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  • Child Rights – POSCO, Child Labour Laws, NAPC, etc.

    Desh Ke Mentor Programme and the Controversy

    17 January 2022 | Schemes | Governance
    Mains Paper 2: Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Desh Ke Mentor Programme, NCPCR

    Mains level: Child rights issue

    A controversy recently broke out after the National Commission for Protection of Child Rights (NCPCR) recommended that the Delhi government suspend its flagship ‘Desh ke Mentor’ programme.

    What is the Desh Ke Mentor Programme?

    • The programme was launched in October 2021 and is aimed at connecting students in classes IX to XII with voluntary mentors.
    • People between the ages of 18 and 35 can sign up to be mentors through an app created by a team at the Delhi Technological University and will be connected with students based on mutual interests.
    • The mentorship entails regular phone calls for a minimum of two months, which can optionally be carried on for another four months.
    • The idea is for the young mentors to guide students through higher education and career options, preparation for higher education entrance exams, and dealing with the pressure of it all.

    How is a person selected to be a mentor?

    • The registration process takes place on the Desh ke Mentor app.
    • The volunteer has to fill in information about themselves such as their date of birth, education qualification, profession, organisation they work with and so on.
    • However, it is optional for them to upload any proof of identity.
    • Once the registration is complete, the mentor is connected to a set of children of the same gender as themselves whose interests align with theirs.
    • Students have to take parental consent before becoming a part of the programme.

    What are the concerns raised by the NCPCR regarding this process?

    • It has stated that assigning children to a mentor of the same gender as them does not necessarily assure their safety from abuse.
    • It has also expressed concern over the lack of police verification of the mentors.
    • It has a psychometric test which has not been scrutinized by professional practising experts.
    • It has also stated that limiting interactions to phone calls also does not ensure the safety of children since “child-related crime can be initiated through phone calls as well.”

    Back2Basics:  National Commission for Protection of Child Rights (NCPCR)

    • The NCPCR is an Indian statutory body established by an Act of Parliament, the Commission for Protection of Child Rights (CPCR) Act, 2005.
    • It works under the aegis of the Ministry of Women and Child Development and began operational on 5 March 2007.
    • It works to ensure that all Laws, Policies, Programmes, and Administrative Mechanisms are in consonance with the Child Rights perspective as enshrined in the Constitution of India and the UN Convention on the Rights of the Child.
    • As defined by the commission, a child includes a person up to the age of 18 years.

     

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  • Higher Education – RUSA, NIRF, HEFA, etc.

    [pib] Target Olympic Podium Scheme (TOPS)

    8 January 2022 | PIBSchemes | Governance
    Mains Paper 2: Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: TOP Scheme

    Mains level: Not Much

    The Union Ministry of Youth Affairs and Sports (MYAS) has approved the inclusion of Alpine Skiing athlete Mohammad Arif Khan in the Target Olympic Podium Scheme (TOPS) Core group.

    Target Olympic Podium Scheme

    • In order to improve India’s performance at the Olympics and Paralympics, the MYAS started the Target Olympic Podium Scheme (TOPS) in September 2014.
    • It includes foreign training, international competition, equipment, and coaching camp besides a monthly stipend of Rs. 50,000/- for each athlete.
    • It was particularly launched for India’s Olympic medal dream, at the 2016 (Rio) and 2020 (Tokyo) Olympics.

    How does it function?

    • The Mission Olympic Cell is a dedicated body created to assist the athletes who are selected under the TOP Scheme.
    • The MOC is under the Chairmanship of the Director-General, Sports Authority of India (DG, SAI).
    • The idea of the MOC is to debate, discuss and decide the processes and methods so that the athlete receives the best assistance.
    • The MOC also focuses on the selection, exclusion, and retention of athletes, coaches, training institutes that can receive TOPS assistance.

     

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  • Direct Benefits Transfers

    Rythu Bandhu: Telangana DBT scheme for farmers’ assistance

    30 December 2021 | Schemes | Agriculture
    Mains Paper 3: Inclusive Growth & Issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Rythu Bandhu Scheme

    Mains level: DBT schemes for farmers

    The total funds disbursed under Rythu Bandhu, Telangana government’s direct benefit transfer scheme for farmers, will soon touch Rs 50,000 crore in the coming days.

    What is Rythu Bandhu?

    • Rythu Bandhu is a scheme under which the state government extends financial support to land-owning farmers at the beginning of the crop season through direct benefit transfer.
    • The scheme aims to take care of the initial investment needs and do not fall into a debt trap.
    • This in turn instills confidence in farmers, enhances productivity and income, and breaks the cycle of rural indebtedness.

    DBT under the Scheme

    • Each farmer gets Rs 5,000 per acre per crop season without any ceiling on the number of acres held.
    • 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.
    • The grant helps them cover the expenses on input requirements such as seeds, fertilizers, pesticides, and labour.

    How much does it cost the state exchequer?

    • Since the Kharif season of 2018, the state government has been crediting Rythu Bandhu assistance to farmers.
    • As of date, it has credited Rs 43,036.64 crore into the bank accounts of beneficiaries.
    • This season, the state government will disburse another Rs 7638.99 crore, taking the total sum disbursed so far to over Rs 50,000 crore.

    Comparing with the PM-KISAN scheme

    • The state government has often said that the Centre’s PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) scheme is a “copy” of Rythu Bandhu.
    • Under PM-KISAN, a land-holding family receives an income support of 6,000 per year in three equal installments.
    • Rythu Bandhu is based on anticipated input expenditure for each acre of land and there is no restriction on the number of acres owned by a farmer.
    • PM-KISAN only provides support to the family and not to the farm units.

    Criticisms of the Rythu Bandhu Scheme

    • The scheme does not cover the landless or tenant farmers.
    • Farmer bodies have been demanding that the state government should extend the agriculture assistance to tenant farmers as well.
    • They have pointed out that those who work on lands taken on lease from landowners also need government assistance at the beginning of a crop season.
    • It is difficult to bring tenant farmers under the ambit of the scheme because of the informal nature of the agreements they enter into.

     

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  • Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

    UDAN scheme

    22 December 2021 | Schemes | Economics
    Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: UDAN Scheme

    Mains level: Aviation infrastructure in India

    PM launched the UDAN scheme nearly five years back with the aim to take flying to the masses. However, many routes have launched by airlines have been discontinued.

    UDAN Scheme

    • The Ude Desh Ka Aam Nagrik (UDAN) scheme is a low-cost flying scheme launched with the aim of taking flying to the masses.
    • The first flight under UDAN was launched by the PM in April 2017.
    • It is also known as the regional connectivity scheme (RCS) as it seeks to improve air connectivity to tier-2 and tier-3 cities through revival of unused and underused airports.

    Working of the Scheme

    • Airlines are awarded routes under the programme through a bidding process and are required to offer airfares at the rate of ₹2,500 per hour of flight.
    • At least 50% of the total seats on an aircraft have to be offered at cheaper rates.
    • In order to enable airlines to offer affordable fares they are given a subsidy from the govt. for a period of three years.

    Present status of working

    • A total of nine rounds of bidding have taken place since January 2017.
    • The Ministry of Civil Aviation has set a target of operationalizing as many as 100 unserved and underserved airports and starting at least 1,000 RCS routes by 2024.
    • So far, the Airports Authority of India (AAI) has awarded 948 routes under UDAN, of which 403 routes have taken off that connect 65 airports.
    • Out of the total 28 seaplane routes connecting 14 water aerodromes, only two have commenced.

    Issues with the working

    • Discontinuance: In reality, some of the routes launched have been discontinued as most of the routes awarded under UDAN are not active.
    • On-paper Ambitions: UDAN was expanded to provide improved connectivity to hilly regions and islands through helicopters and seaplanes. However, they mostly remain on paper.
    • The reasons include:
    1. Failure to set up airports or heliports due to lack of availability of land
    2. Airlines unable to start flights on routes awarded to them or finding the routes difficult to sustain
    3. Adverse impact of the COVID-19 pandemic

    Various challenges

    • Lack of funds: Many small airlines await infusion of funds, to be able to undertake maintenance of aircraft, pay rentals to lessors, give salaries to its staff, etc.
    • Maintenance issue: Many players don’t have more than one or two planes and they are often poorly maintained. New planes are too expensive for these smaller players.
    • Availability of pilots: Often, they also have problems with the availability of pilots and are forced to hire foreign pilots which costs them a lot of money and makes the business unviable.
    • Competition: Only those routes that have been bagged by bigger domestic players such as IndiGo and SpiceJet have seen a better success rate.

    Way forward

    • The govt offers subsidies for a route for a period of three years and expects the airline to develop the route during this time so that it becomes self-sufficient.
    • Airlines need an extension of the subsidy period for their operational continuity.
    • Due to the rise in COVID cases, travel restrictions and passenger safety too needs to be taken into consideration in the loss-making of such airlines.

     

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  • Irrigation In India – PMKSY, AIBP, Watershed Management, Neeranchan, etc.

    Extension for PM Krishi Sinchai Yojana

    17 December 2021 | Schemes | Agriculture
    Mains Paper 3: Major Crops & Cropping Patterns

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: PMKSY

    Mains level: Not Much

    The Cabinet has given its approval to extend its umbrella scheme Pradhan Mantri Krishi Sinchayee Yojana for irrigation, water supply, groundwater and watershed development projects for another five years till 2026.

    PM Krishi Sinchai Yojana

    • The PMKSY was launched on 1st July, 2015 with the motto of “Har Khet Ko Paani”.
    • It is being implemented to expand cultivated area with assured irrigation, reduce wastage of water and improve water use efficiency.

    The scheme has basically combined three active projects under various ministries which is as follows:

    1. Accelerated Irrigation Benefit Program (Ministry of Water Resources)
    2. Integrated Watershed Management Program (Ministry of Rural Development)
    3. Farm Water Management Project of the National Mission on Sustainable Agriculture

    Components of PMKSY

    PMKSY seeks to provide a complete solution to farm level irrigation and assured irrigation for every farm

    • It aims to integrate irrigation with the latest technological practices and cover more cultivable areas under assured irrigation
    • Increase the implementation of water-saving technologies and precision irrigation which in other words can be said as More Crop Per Drop.
    • PMKSY also targets the promotion of micro-irrigation in the form of sprinklers, rain-guns, drips, etc.

    Advantages of Micro Irrigation

    • Higher Profits
    • Water Saving & Water Use Efficiency (WUE)
    • Less Energy Costs
    • Higher fertilizer-use efficiency (FUE)
    • Reduced Labour Costs
    • Reduce Soli Loss
    • Marginal Solis & Water
    • Efficient & Flexible
    • Improved Crop Quality
    • Higher Yields

    Implementation of PMKSY

    • Everything from planning and execution of plans is regionalized in PMKSY.
    • District Irrigation Plans (DIPs) will identify the areas that require improved facilities in irrigation at block levels and district levels.
    • State Irrigation Plan consolidates all the DIPs and it oversees the agricultural plans developed under the Rashtriya Krishi Vikas Yojana.

    Funding pattern

    • Funds will be allocated by the centre only if the state has prepared the district irrigation plans and the state irrigation plans.
    • The state government’s share under PMKSY is 25% and rest is borne by the centre, with an exception for north-eastern states where contribution by the state government is 10%.

     

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  • Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

    Program for Development of Semiconductors and Display Manufacturing Ecosystem in India

    16 December 2021 | Schemes | Science and Technology
    Mains Paper 3: Awareness in various sc and tech fields

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Read the attached story

    Mains level: Semiconductor industry in India

    The Union Cabinet has approved a ₹76,000 crore scheme to boost semiconductor and display manufacturing in the country.

    About the Program

    • The scheme would provide financial support of up to 50% of the project cost for setting up semiconductor and display fabrication units.
    • The scheme was aimed at making India a global hub of electronic system design and manufacturing, the statement noted.
    • In addition, the Centre would work with the States to set up high-tech clusters with the necessary infrastructure such as land and semiconductor-grade water.

    Components of the mission

    [1] Semiconductor Fabs and Display Fabs

    • This shall extend fiscal support of up to 50% of project cost to eligible applicants.
    • The govt will work closely with the states establish High-Tech Clusters with requisite infrastructure in terms of land, semiconductor grade water, high quality power, logistics and research.

    [2] Semi-conductor Laboratory (SCL):

    • The Ministry of Electronics and Information Technology will take requisite steps for the modernization and commercialization of the Semi-conductor Laboratory (SCL).
    • MeitY will explore the possibility for the Joint Venture of SCL with a commercial fab partner to modernize the brownfield fab facility.

    [3] Semiconductor Design Companies:

    • The Design Linked Incentive (DLI) Scheme shall extend product design linked incentive of up to 50% of eligible expenditure and product deployment linked incentive of 6% – 4% on net sales for five years.
    • Support will be provided to 100 domestic companies of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores.

    [4] India Semiconductor Mission:

    • In order to drive the long-term strategies for developing sustainable semiconductors and display ecosystem, a specialized and independent ISM will be set up.
    • The ISM will be led by global experts in the semiconductor and display industry.
    • It will act as the nodal agency for efficient and smooth implementation of the schemes on Semiconductors and Display ecosystem.

    [5] Chips to start-ups Program

    • This program would develop 85,000 well-trained engineers, he claimed. Semiconductor designers would be given the opportunity to launch start-ups.
    • The government would bear 50% of the expense under the design-linked incentive scheme.
    • The entire programme would lead to 35,000 high-quality direct jobs and 1 lakh indirect employment.

    Significance of the scheme

    • In the current geopolitical scenario, trusted sources of semiconductors and displays hold strategic importance and are key to the security of critical information infrastructure.
    • The approved program will propel innovation and build domestic capacities to ensure the digital sovereignty of India.
    • It will also create highly skilled employment opportunities to harness the demographic dividend of the country.
    • Development of semiconductor and display ecosystem will have a multiplier effect across different sectors of the economy with deeper integration to the global value chain.

     

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  • Banking Sector Reforms

    Bank Deposit Insurance Programme

    13 December 2021 | Schemes | Economics
    Mains Paper 3: Mobilization Of Resources

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Bank Deposit Insurance Programme

    Mains level: Bank distress and failure

    The PM has addressed depositors during a programme titled ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to ₹5 Lakh’.

    Deposit Insurance Programme

    • The bank savings are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act providing full coverage to around 98 per cent of bank accounts.
    • Earlier, account holders had to wait for years till the liquidation or restructuring of a distressed lender to get their deposits that are insured against default.
    • Last year, the government raised the insurance amount to Rs 5 lakh from Rs 1 lakh.
    • Prior to that, the DICGC had revised the deposit insurance cover to Rs 1 lakh on May 1, 1993 — raising it from Rs 30,000, which had been the cover from 1980 onward.

    What are new changes?

    • Earlier, out of the amount deposited in the bank, only Rs 50,000 was guaranteed, which was then raised to Rs 1 lakh.
    • Understanding the concern of the poor, understanding the concern of the middle class, we increased this amount to Rs 5 lakh.
    • If a bank is weak or is even about to go bankrupt, depositors will get their money of up to Rs five lakhs within 90 days.

    Significance of the scheme

    • Earlier account holders could not access their own money for up to 8-10 years after financial stress at banks.
    • The new changes would give confidence to depositors and strengthen the banking and financial system.
    • Now, depositors can get insurance money within 90 days, without waiting for the eventual liquidation of the distressed banks.

     

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