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Type: Schemes

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

    [pib] PLI Scheme for White Goods

    17 September 2021 | PIBSchemes | 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: White Goods, PLI Scheme

    Mains level: Success of the PLI Scheme

    A total of  52 companies have filed their application with a committed investment of Rs 5,866 crore under the PLI scheme to incentivize the domestic manufacturing of components of White Goods.

    What are White Goods?

    • White goods refer to heavy consumer durables or large home appliances, which were traditionally available only in white.
    • They include appliances such as washing machines, air conditioners, stoves, refrigerators, etc. The white goods industry in India is highly concentrated.

    Why PLI scheme for white goods?

    • Indian appliance and consumer electronics (ACE) market reached INR 76,400 crore (~$10.93 bn) in 2019.
    • Appliances and consumer electronics industry is expected to double to reach INR 1.48 lakh crore (~$21.18 bn) by 2025.
    • The PLI Scheme on White Goods is designed to create complete component ecosystem for Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains.
    • Only manufacturing of components of ACs and LED Lights will be incentivized under the Scheme.

    What is PLI Scheme?

    • As the name suggests, the scheme provides incentives to companies for enhancing their domestic manufacturing apart from focusing on reducing import bills and improving the cost competitiveness of local goods.
    • PLI scheme offers incentives on incremental sales for products manufactured in India.
    • The scheme for respective sectors has to be implemented by the concerned ministries and departments.

    Criteria laid for the scheme

    • Eligibility criteria for businesses under the PLI scheme vary based on the sector approved under the scheme.
    • For instance, the eligibility for telecom units is subject to the achievement of a minimum threshold of cumulative incremental investment and incremental sales of manufactured goods.
    • The minimum investment threshold for MSME is Rs 10 crore and Rs 100 crores for others.
    • Under food processing, SMEs and others must hold over 50 per cent of the stock of their subsidiaries, if any.
    • On the other hand, for businesses under pharmaceuticals, the project has to be a greenfield project while the net worth of the company should not be less than 30 per cent of the total committed investment.

    What are the incentives offered?

    • An incentive of 4-6 per cent was offered last year on mobile and electronic components manufacturers such as resistors, transistors, diodes, etc.
    • Similarly, 10 percent incentives were offered for six years (FY22-27) of the scheme for the food processing industry.
    • For white goods too, the incentive of 4-6 per cent on incremental sales of goods manufactured in India for a period of five years was offered to companies engaged in the manufacturing of air conditioners and LED lights.

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  • Textile Sector – Cotton, Jute, Wool, Silk, Handloom, etc.

    PLI Scheme for Textiles

    10 September 2021 | 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: PLI scheme for various sectors

    Mains level: Textile sector of India

    The Union Government has approved Production Linked Incentive (PLI) Scheme for Textiles.  This move is a part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22.

    What is PLI Scheme?

    • As the name suggests, the scheme provides incentives to companies for enhancing their domestic manufacturing apart from focusing on reducing import bills and improving the cost competitiveness of local goods.
    • PLI scheme offers incentives on incremental sales for products manufactured in India.
    • The scheme for respective sectors has to be implemented by the concerned ministries and departments.

    Criteria laid for the scheme

    • Eligibility criteria for businesses under the PLI scheme vary based on the sector approved under the scheme.
    • For instance, the eligibility for telecom units is subject to the achievement of a minimum threshold of cumulative incremental investment and incremental sales of manufactured goods.
    • The minimum investment threshold for MSME is Rs 10 crore and Rs 100 crores for others.
    • Under food processing, SMEs and others must hold over 50 per cent of the stock of their subsidiaries, if any.
    • On the other hand, for businesses under pharmaceuticals, the project has to be a greenfield project while the net worth of the company should not be less than 30 per cent of the total committed investment.

    What are the incentives involved?

    • An incentive of 4-6 per cent was offered last year on mobile and electronic components manufacturers such as resistors, transistors, diodes, etc.
    • Similarly, 10 percent incentives were offered for six years (FY22-27) of the scheme for the food processing industry.
    • For white goods too, the incentive of 4-6 per cent on incremental sales of goods manufactured in India for a period of five years was offered to companies engaged in the manufacturing of air conditioners and LED lights.

    What is in the box for Textiles?

    • The PLI scheme for textiles aims to promote the production of high value Man-Made Fibre (MMF) fabrics, garments and technical textiles.
    • Any person or company willing to invest a minimum of Rs 300 crore in plant, machinery, equipment and civil works (excluding land and administrative building cost) to produce products of MMF fabrics, garments and products of technical textiles will be eligible.
    • Investors willing to spend a minimum of Rs 100 crore under the same conditions shall be eligible.

    Benefits offered

    • PLI scheme for Textiles will promote production of high value MMF Fabric, Garments and Technical Textiles in country.
    • The incentive structure has been so formulated that the industry will be encouraged to invest in fresh capacities in these segments.
    • This will give a major push to the growing high-value MMF segment which will complement the efforts of the cotton and other natural fiber-based textiles industry.
    • This will help to generate new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade.

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    Back2Basics: India’s textile sector

    • The textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labour.
    • The domestic textiles and apparel industry contributes 5% to India’s GDP, 7% of industry output in value terms, and 12% of the country’s export earnings.
    • The textile industry continues to be the second-largest employment generating sector in India. It offers direct employment to over 35 million in the country.
    • India is first in global jute production and shares 63% of the global textile and garment market. India is second in global textile manufacturing and also second in silk and cotton production.
    • 100% FDI is allowed via automatic route in textile sector.

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

    What is Glue Grant Scheme?

    4 September 2021 | Schemes | Governance
    Mains Paper 2: Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Glue Grant Scheme

    Mains level: Not Much

    Forty Central universities will kick off the implementation of innovative measures such as the academic credit bank and the glue grant meant to encourage multidisciplinary in UG courses.

    Glue Grant Scheme

    • Under the glue grant, announced in this year’s budget, institutions in the same city would be encouraged to share resources, equipment and even allow their students to take classes from each other.
    • This is the first step for multidisciplinary.
    • We intend to start this from the second semester of the current academic year.
    • Ultimately, faculty will be able to design joint courses.
    • This also meant that institutions need not duplicate work by developing the same capacities, but would be able to build on each other’s expertise.

    Credit bank

    • The first step would be the academic credit bank, which would have to be adopted separately by the academic council of each university to kick off implementation.
    • To start with, the system would allow students to attain qualifications by amassing credits rather than specific durations on campus.
    • A certain number of credits would add up to a certificate, then a diploma and then a degree, allowing for multiple entries and exit points.
    • Students can earn up to 40% of their credits in online Swayam classes, rather than in the physical classroom. In the future, these credits will hold validity across different institutions.

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  • MGNREGA Scheme

    [pib] Bhuvan Yuktdhara Portal

    24 August 2021 | Schemes | Governance
    Mains Paper 2: Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Bhuvan Yuktdhara Portal

    Mains level: MGNREGA

    A new portal under Bhuvan “Yuktdhara” has been released to facilitate planning of new MGNREGA assets using Remote Sensing and GIS based information.

    Bhuvan Yuktdhara Portal

    • Yuktdhara is a geospatial planning portal meant for facilitating Gram Panchayat level planning of MGNREGA activities across India.
    • Portal integrates a wide variety of spatial information contents to enable a holistic approach towards planning using open-source GIS tool.
    • Subsequent to pan Indian initiative of geo-tagging assets created under Mahatma Gandhi NREGA, harnessing the strength of GIS for identifying upcoming activities and their locations was a natural corollary.

    Features of the portal

    • The current level of integration under Yuktdhara, as part of Bhuvan, incorporates multi-temporal IRS satellite data of better than 3M detail in natural color, digital terrain, thematic layers as wed as locations of MGNREGA works and watershed management assets.
    • The interface currently has a Gram Panchayat-specific logo to address planning as well as approval mechanisms intended to ensure the evaluation and acceptance of proposed activities.
    • This will be enhanced for other levels of users gradually.
    • Access for other Gram Panchayat will be facilitated at the earliest, by addressing the case multiple logins created for geotagging and moderation.

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    Back2Basics: MGNREG Scheme

    • 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 P.V. Narasimha Rao.

    The objectives of the MGNREGA are:

    • To enhance the livelihood security of the rural poor by generating wage employment opportunities.
    • To create a rural asset base that would enhance productive ways of employment, augment and sustain a rural household income.

    Features of the program

    • 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.
    • 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.

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    What is RoDTEP Scheme?

    18 August 2021 | Prelims OnlySchemes | 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: MEIS, RODTEP Scheme

    Mains level: Export promotion schemes in India

    The Centre has notified the rates and norms for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme asserting that it would put ‘direct cash in the pockets of exporters’ soon.

    RoDTEP Scheme

    • RoDTEP is a scheme for Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market.
    • It has been kicked in from January 2021, replacing the earlier Merchandise and Services Export Incentive Schemes (MEIS and SEIS) that were in violation of WTO norms.
    • The new RoDTEP Scheme is a fully WTO compliant scheme.
    • It will reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.

    Answer this PYQ:

    Q.With reference to the international trade of India at present, which of the following statements is/are correct?

    1. India’s merchandise exports are less than its merchandise imports.
    2.  India’s imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years.
    3.  India’s exports of services ye more than its imports of services.
    4.  India suffers from an overall trade/current account deficit.

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 2 and 4 only

    (c) 3 only

    (d) 1, 3 and 4 only

     

    Post your answers here (You need to sign-in for that).

    Why need such a scheme?

    • The scheme was announced last year as a replacement for the Merchandise Export from India Scheme (MEIS), which was not found not to be compliant with the rules of the World Trade Organisation.
    • Following a complaint by the US, a dispute settlement panel had ruled against India’s use of MEIS as it had found the duty credit scrips awarded under the scheme to be inconsistent with WTO norms.

    Coverage of the scheme

    • It covers about 75% of traded items and 65% of India’s exports.
    • To enable zero-rating of exports by ensuring domestic taxes are not exported, all taxes, including those levied by States and even Gram Panchayats, will be refunded under the scheme.
    • Steel, pharma, and chemicals have not been included under the scheme because their exports have done well without incentives.

    Back2Basics: Merchandise Exports from India Scheme (MEIS)

    • MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
    • This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and was in existence till 2020.
    • It intended to incentivize exports of goods manufactured in India or produced in India.
    • The incentives were for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive.
    • The MEIS covered almost 5000 goods notified for the purpose of the scheme.

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  • Oil and Gas Sector – HELP, Open Acreage Policy, etc.

    Ujjwala 2.0 Scheme

    11 August 2021 | Schemes | Governance
    Mains Paper 2: Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Ujjwala Scheme

    Mains level: Not Much

    Prime Minister has launched the second phase of the Ujjwala gas connection scheme for the poor and said it would provide the biggest relief to lakhs of migrant worker families in the country.

    Ujjwala 2.0

    • Under Ujjwala 2.0 migrant workers would no longer have to struggle to get address proof documents to get the gas connections, Mr. Modi said.
    • Now migrant workers would only be required to submit a self-declaration of their residential address to get the gas connection.
    • Along with a deposit-free LPG connection, Ujjwala 2.0 will provide the first refill and a hotplate free of cost to the beneficiaries.

    About the PM Ujjwala Yojana

    • Pradhan Mantri Ujjwala Yojana (PMUY) was launched in 2016, with the aim to provide Liquefied petroleum gas (LPG) connections to five crore women members of below poverty line (BPL) households in the first phase.
    • he scheme was expanded in April 2018 to include women beneficiaries from seven more categories (SC/ST, PMAY, AAY, Most backward classes, tea garden, forest dwellers, Islands).
    • In the second phase the target was expanded to eight crore LPG connections.

    Significance of Ujjwala 2.0

    • LPG infrastructure has expanded manifold in the country due to the Ujjwala scheme.
    • In the last six years, more than 11,000 new LPG distribution centres have opened across the country.
    • The LPG coverage in India is now very close to becoming 100 per cent.

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  • Food Processing Industry: Issues and Developments

    National Mission on Edible Oil-Oil Palm (NMEO-OP)

    11 August 2021 | Schemes | Agriculture
    Mains Paper 3: Food Processing & Related Industries In India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NMEO-OP

    Mains level: Oilseeds and India

    The Centre has increased the financial outlay for the National Mission on Edible Oil-Oil Palm (NMEO-OP).

    About NMEO-OP

    • National Mission on Oilseeds and Oil Palm (NMOOP) was implemented during the 12th Five Year Plan, to expand the oil palm areas and increase the production of edible oils.
    • It was later merged with the National Food Security Mission.
    • NMEO-OP aims to resolve to allow India to be independent or self-reliant in edible oil production.
    • Through this mission, more than ₹11,000 crores will be invested in the edible oil ecosystem.
    • The government will ensure that farmers get all the needed facilities, from quality seeds to technology.
    • Along with promoting the cultivation of oil palm, this mission will also expand the cultivation of our other traditional oilseed crops.

    Why such a mission?

    • India is one of the major oilseeds growers and importers of edible oils.
    • India’s vegetable oil economy is the world’s fourth-largest after the USA, China & Brazil.
    • The oilseed accounts for 13% of the Gross Cropped Area, 3% of the Gross National Product, and 10% value of all agricultural commodities.
    • During the last few years, the domestic consumption of edible oils has increased substantially and has touched the level of 18.90 million tonnes in 2011-12 and is likely to increase further.
    • A substantial portion of our requirement of edible oil is met through the import of palm oil from Indonesia and Malaysia.
    • It is, therefore, necessary to exploit domestic resources to maximize production to ensure edible oil security for the country.

    Alternative sources

    • Oil Palm is comparatively a new crop in India and is the highest vegetable oil yielding perennial crop.
    • With quality planting materials, irrigation, and proper management, there is a potential of achieving 20-30 MT Fresh Fruit Bunches (FFBs) per ha after attaining the age of 5 years.
    • Therefore, there is an urgent need to intensify efforts for area expansion under oil palm to enhance palm oil production in the country.
    • Tree Borne Oilseeds (TBOs), like Sal, Mahua, Simarouba, kokum, Olive, Karanja, Jatropha, Neem, Jojoba, Wild Apricot, Walnut, tung etc. are cultivated/grown in the country under different agro-climatic conditions.
    • These TBOs are also good sources of vegetable oil and therefore need to be supported for cultivation.

    Try answering this PYQ:

    Q.An objective of the National Food Security Mission is to increase the production of certain crops through area expansion and productivity enhancement in a sustainable manner in the identified districts of the country. What are those crops?

    (a) Rice and wheat only

    (b) Rice, wheat, and pulses only

    (c) Rice, wheat, pulses, and oilseeds only

    (d) Rice, wheat, pulses, oilseeds, and vegetables

     

    Post your answers here:

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  • Panchayati Raj Institutions: Issues and Challenges

    [pib] Saansad Adarsh Gram Yojana

    10 August 2021 | PIBSchemes | Polity
    Mains Paper 2: Panchayats & Local Bodies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Saansad Adarsh Gram Yojana

    Mains level: Not Much

    The Ministry of Rural Development has taken several measures for the successful implementation of the Sansad Adarsh Gram Yojana (SAGY) Gram Panchayats.

    Saansad Adarsh Gram Yojana (SAGY)

    • SAGY is a village development project launched in October 2014, under which each Member of Parliament will take the responsibility of developing physical and institutional infrastructure in three villages by 2019.
    • SAGY aims at instilling certain values in the villages and their people so that they get transformed into models for others.

    These values include:

    • Adopting people’s participation as an end in itself – ensuring the involvement of all sections of society in all aspects related to the life of village, especially in decision- making related to governance
    • Adhering to Antyodaya – enabling the “poorest and the weakest person” in the village to achieve well being
    • Affirming gender equality and ensuring respect for women
    • Guaranteeing social justice
    • Instilling dignity of labour and the spirit of community service and voluntarism
    • Promoting a culture of cleanliness
    • Living in consonance with nature – ensuring a balance between development and ecology
    • Preserving and promoting local cultural heritage
    • Inculcating mutual cooperation, self-help and self-reliance
    • Fostering peace and harmony in the village community
    • Bringing about transparency, accountability and probity in public life
    • Nurturing local self-governance
    • Adhering to the values enshrined in the Fundamental Rights and Fundamental Duties of the Indian Constitution

    Identification of an Adarsh Gram

    • A Gram Panchayat would be the basic unit.
    • It will have a population of 3000-5000 in plain areas and 1000-3000 in hilly, tribal and difficult areas.
    • In districts where this unit size is not available, Gram Panchayats approximating the desirable population size may be chosen.
    • The MP would be free to identify a suitable Gram Panchayat for being developed as Adarsh Gram, other than his/her own village or that of his/her spouse.
    • Lok Sabha MP has to choose a Gram Panchayat from within his/her constituency and Rajya Sabha MP a from the rural area of a district of his/her choice in the State from which he/she is elected.
    • Nominated MPs may choose a Gram Panchayat from the rural area of any district in the country.
    • In the case of urban constituencies, (where there are no Gram Panchayats), the MP will identify a Gram Panchayat from a nearby rural constituency.
    • The newly elected MPs will have the option to select the GP of their choice.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Members of Parliament Local Area Development Scheme (MPLADS)

    5 August 2021 | Schemes | Governance
    Mains Paper 2: Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: MPLAD Scheme

    Mains level: Not Much

    Virtually, 50% of funds allotted for ongoing MPLADS projects have lapsed.

    What is the MPLAD scheme?

    • The Members of Parliament Local Area Development Scheme (MPLADS) is a program first launched during the Narasimha Rao Government in 1993.
    • It was aimed towards providing funds for developmental works recommended by individual MPs.

    Funds available

    • The MPs then were entitled to recommend works to the tune of Rs 1 crore annually between 1994-95 and 1997-98, after which the annual entitlement was enhanced to Rs 2 crore.
    • The UPA government in 2011-12 raised the annual entitlement to Rs 5 crore per MP.

    Implementation

    • To implement their plans in an area, MPs have to recommend them to the District Authority of the respective Nodal District.
    • The District Authorities then identify Implementing Agencies that execute the projects.
    • The respective District Authority is supposed to oversee the implementation and has to submit monthly reports, audit reports, and work completion reports to the Nodal District Authority.
    • The MPLADS funds can be merged with other schemes such as MGNREGA and Khelo India.

    Guidelines for MPLADS implementation

    • The document ‘Guidelines on MPLADS’ was published by the Ministry of Statistics and Programme Implementation in June 2016 in this regard.
    • It stated the objective of the scheme to enable MPs to recommend works of developmental nature with emphasis on the creation of durable community assets based on the locally felt needs in their Constituencies.
    • Right from the inception of the Scheme, durable assets of national priorities viz. drinking water, primary education, public health, sanitation, and roads, etc. should be created.
    • It recommended MPs to works costing at least 15 percent of their entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 percent for areas inhabited by ST population.
    • It lays down a number of development works including construction of railway halt stations, providing financial assistance to recognized bodies, cooperative societies, installing CCTV cameras etc.

    Answer this PYQ in the comment box:

    Q. With reference to the funds under the Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct? (CSP 2020)

    1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc.
    2. A specified portion of each MP’s fund must benefit SC/ST populations.
    3. MPLADS funds are sanctioned on a yearly basis and the unused funds cannot be carried forward to the next year.
    4. The district authority must inspect at least 10% of all works under implementation every year.

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 3 and 4 only

    (c) 1, 2 and 3 only

    (d) 1, 2 and 4 only

    “Post your answers here”

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  • Microfinance Story of India

    Telangana’s Dalit Bandhu Scheme

    29 July 2021 | SchemesStates | Economics
    Mains Paper 3: Inclusive Growth & Issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Dalitha Bandhu Scheme

    Mains level: Not Much

    Telangana CM has recently been informed to spend Rs 80,000 crore to Rs 1 lakh crore for Dalit Bandhu Scheme, touted as the country’s biggest direct benefit transfer scheme, to empower Dalits across the state.

    Dalit Bandhu Scheme

    • Dalit Bandhu is the latest flagship program of the Telangana government.
    • It is envisioned as a welfare scheme for empowering Dalit families and enable entrepreneurship among them through a direct benefit transfer of Rs 10 lakh per family.
    • This is, once implemented on the ground, going to be the biggest cash transfer scheme in the country.
    • Apart from monetary assistance, the government plans to create a corpus called the Dalit Security Fund permanently to support the beneficiary in the event of any adversities.
    • This fund will be managed by the district collector concerned, along with a committee of beneficiaries.
    • The beneficiary would be issued an identity card with an electronic chip, which will help the government monitor the progress of the scheme.

    Where is the scheme being implemented?

    • The CM decided to implement it on a pilot basis in the Huzurabad Assembly constituency.
    • Based on the experiences of implementation in Huzurabad, the scheme will be rolled out across the state in a phased manner.
    • Officials were asked to visit Dalit colonies and interact with Dalit families to find out their views and opinions before preparing guidelines for the scheme.
    • The pilot project will focus on monitoring the implementation of the scheme, evaluating the results, and also creating a safety fund for the beneficiaries with the government’s participation.

    How is Dalitha Bandhu being implemented?

    • The CM has ensured that the Dalit Bandhu is free.
    • The governments in the past came out with some schemes and asked for bank guarantees.
    • This is not a loan. There is no need to repay it. There is no chance of any involvement of middlemen.
    • To promote Dalit entrepreneurship, the government has decided to start a system of reservations for Dalits in sectors where the government issues licenses.
    • The government will provide reservations for Dalits in issuing licenses for wine shops, medical shops, fertilizer shops, rice mills, etc.

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