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Type: Schemes

  • Air Pollution

    Particulate Matter Emission Trading Scheme in Gujarat

    Schemes | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    A new study highlights the success of Surat’s Particulate Matter Emission Trading Scheme (PM-ETS), the world’s first market-based system for trading particulate emissions.

    The scheme has reduced pollution by 20-30%, providing insights into its potential to improve air quality in industrial areas.

    About Particulate Matter Emission Trading Scheme in Gujarat:

    • This PM ETS was launched in Surat, Gujarat in 2019.
    • It is the world’s first pilot project targeting particulate pollution using a market-based emissions trading system.
    • It is India’s first emissions trading initiative for any pollutant.
    • The scheme aims to reduce emissions from industries using solid (coal, lignite) and liquid fuels (diesel) by controlling fine particulate matter (PM).
    • How It Works?
      • Cap-and-Trade: Regulators set a cap on total emissions, and industries are issued permits (1 kg of particulate matter per permit).
      • Permit Allocation: 80% of permits are given for free; 20% are sold via auctions.
      • Market Trading: Permits can be bought or sold to meet emission targets. A ceiling price (Rs 100/kg) and floor price (Rs 5/kg) are set.
      • Compliance: Non-compliant industries face fines double the ceiling price for each excess emission.

    Successes of PM-ETS:

    • Reduction in Emissions: Participating plants cut emissions by 20-30% compared to traditional methods.
    • Improved Compliance: 99% compliance in participating plants.
    • Cost-Effective: The system allowed industries to choose the most cost-effective methods for compliance.

    Limitations of PM-ETS:

    • Over-reliance on Free Permits: Smaller plants may struggle as the number of free permits decreases.
    • Supply Chain Limitations: Tightened caps could increase costs for industries not reducing emissions.
    • Market Manipulation: Concerns over unfair permit trading.
    • Geographical Constraints: Limited to Surat, restricting broader impact.
    [UPSC 2011] Regarding “carbon credits’’, which one of the following statements is not correct?

    (a) The carbon credit system was ratified in conjunction with the Kyoto protocol.

    (b) Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota.

    (c) The goal of the carbon credit system is to limit the increase of carbon dioxide emission.

    (d) Carbon credits are traded at a price fixed from time to time by the United Nations environment programs. *

     

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

    PM-Vidyalaxmi Scheme

    Schemes | Indian Society | Mains Paper 2: Health & Education

    Why in the News?

    The PM Vidyalaxmi scheme, aimed at supporting meritorious students, is facing slow uptake due to technical issues, including login failures and frequent auto logouts

    About the PM Vidyalaxmi Scheme:

    Details
    Objective A Central Sector Scheme to provide financial assistance to meritorious students pursuing higher education in quality institutions.
    Eligible Students Students gaining admission to the top 860 Quality Higher Education Institutions (QHEIs), including government and private institutions.
    Annual Family Income Criteria Up to ₹8 lakh for students who do not qualify for other government scholarships or interest subsidies.
    Eligibility Based on NIRF Rankings • Top 100 institutions in overall, category-specific, and domain-specific NIRF lists.
    • State government-run institutions ranked 101-200.
    • All Central government-governed institutions.
    Loan Amounts • Loans up to ₹7.5 lakh with a 75% credit guarantee.
    • For loans up to ₹10 lakh, 3% interest subvention during the moratorium period.
    Target Beneficiaries Approximately 1 lakh students each year, with preference for students in technical or professional courses from government institutions.
    Financial Outlay ₹3,600 crore for the period from 2024-25 to 2030-31.
    Expected Impact Benefit for 7 lakh new students through interest subvention during the scheme’s duration.
    Application Process Applications can be submitted via the PM-Vidyalaxmi portal for loans and interest benefits.
    Payment Processing Interest support payments through e-vouchers and Central Bank Digital Currency (CBDC) wallets.

     

    [UPSC 2017] What is the purpose of Vidyanjali Yojana’?

    1. To enable the famous foreign campuses in India.

    2. To increase the quality of education provided in government schools by taking help from the private sector and the community.

    3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.

    Select the correct answer using the code given below:

    (a) 2 only* (b) 3 only (c) 1 and 2 only (d) 2 and 3 only

     

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  • Hunger and Nutrition Issues – GHI, GNI, etc.

    PM-POSHAN Scheme

    Schemes | Governance | Mains Paper 2: Government Scheme/Policies

    Why in the News?

    The material cost for the PM-POSHAN (Pradhan Mantri Poshan Shakti Nirman) Scheme has been increased by 9.5%, resulting in an additional cost of ₹954 crore to be incurred by the Centre in the 2025-26 financial year.

    About PM-POSHAN Scheme:

    • The PM-POSHAN Scheme, formerly known as the Mid-Day Meal Scheme, is a centrally sponsored initiative aimed at providing a hot, cooked meal to children studying in government and government-aided schools across India.
    • Launched under the Ministry of Education, it focuses on improving children’s nutritional status, school participation, retention, and attendance.
    • The scheme complements POSHAN Abhiyan and Mission POSHAN 2.0 to improve nutrition among children and mothers.

    Key Features:

    • Target Group: It serves 11.20 crore children in Balvatikas (pre-primary classes) and Classes 1-8 in 10.36 lakh schools. Special focus is placed on disadvantaged children from low-income backgrounds.
    • Nutritional Goals: The scheme provides balanced meals to meet children’s nutritional needs.
      1. Primary Students: 20g pulses, 50g vegetables, 5g oil.
      2. Upper Primary Students: 30g pulses, 75g vegetables, 7.5g oil.
    • Model: The Centre provides 100% funding for food grains through the Food Corporation of India (FCI), while States contribute to meal implementation.
    • Funding Pattern:
      • 60:40 between Centre and States/UTs with the legislature.
      • 90:10 for Northeastern and Himalayan States.
      • 100% central funding for UTs without legislature.
    • 26 lakh metric tonnes of food grains are provided annually, with transportation costs covered by the Centre.
    • It also has a component to promote the development of School Nutrition Gardens in schools
    • Social Audit of the scheme is made mandatory in all the districts.
    [UPSC 2014] Which of the following can be said to be essentially the parts of Inclusive Governance?

    1 Permitting the Non-Banking Financial Companies to do banking

    2 Establishing effective District Planning Committees in all the districts

    3 Increasing the government spending on public health

    4 Strengthening the Mid-Day Meal Scheme

    Select the correct answers using the codes given below:

    (a) 1 and 2 only (b) 3 and 4 only (c) 2, 3 and 4 only (d) 1, 2, 3 and 4

     

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

    [pib] Electronics Components Manufacturing Scheme

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

    Why in the News?

    The Ministry of Electronics and Information Technology (MeitY) has notified the Electronics Components Manufacturing Scheme to expand the manufacturing capabilities of passive electronic components in India.

    About Electronics Components Manufacturing Scheme:

    • The scheme is designed to promote the manufacturing of select electronic components in India, such as resistors, capacitors, relays, switches, sensors, and connectors.
    • It focuses particularly on passive electronic components, while active components like semiconductors fall under the India Semiconductor Mission (ISM).
    • The scheme has a tenure of 6 years, with a 1-year gestation period.
    • The scheme offers 3 types of incentives:
      1. Turnover-linked incentive: Based on revenue.
      2. Capex-linked incentive: For investments in plants and machinery.
      3. Hybrid incentive model: A combination of both turnover and capex incentives.

    Achievements and Growth in the Electronics Sector:

    • Domestic Production Growth: India’s electronics production has grown from ₹1.90 lakh crore in FY 2014-15 to ₹9.52 lakh crore in FY 2023-24, at a compound annual growth rate (CAGR) of over 17%.
    • Export Growth: Electronics exports have increased from ₹0.38 lakh crore in FY 2014-15 to ₹2.41 lakh crore in FY 2023-24, reflecting a CAGR of over 20%. India is now the second-largest mobile phone producer globally.
    • Future Projections: By 2026, India’s electronics production is projected to reach USD 300 billion.

    Government Initiatives for Electronics Growth:

    • Make in India (2014): Aimed at boosting India’s manufacturing sector and transforming it into a global hub for design and manufacturing.
    • Phased Manufacturing Programme (2017): Focused on increasing domestic value addition in mobile phones and their parts.
    • Production Linked Incentive (PLI) Scheme (2020): Aimed at boosting domestic manufacturing in mobile phones, electronic components, and semiconductor packaging, offering 3-6% incentives on incremental sales.
    • Semicon India Program (2021): With a financial outlay of ₹76,000 crore, this scheme promotes the domestic semiconductor industry.
    • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) (2021): Provides a 25% financial incentive for capital expenditure in electronic goods manufacturing.
    • Increased Budget for 2025-26: The allocation for electronics manufacturing has been raised from ₹5,747 crore in FY 2024-25 to ₹8,885 crore in FY 2025-26.
    [UPSC 2016] Recently, India’s first ‘National Investment and Manufacturing Zone’ was proposed to be set up in:

    (a) Andhra Pradesh (b) Gujarat (c) Maharashtra (d) Uttar Pradesh

     

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  • Microfinance Story of India

    [pib] 10 years of the Pradhan Mantri MUDRA Yojana (PMMY)

    Schemes | Economics | Mains Paper 3: Mobilization Of Resources

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Pradhan Mantri MUDRA Yojana (PMMY)

    Why in the News?

    April 8, 2025, marks the 10th anniversary of Pradhan Mantri MUDRA Yojana (PMMY), launched to fund micro and small enterprises.

    About the Pradhan Mantri MUDRA Yojana (PMMY)

    • The PMMY, launched in 2015 is a Central Sector Scheme designed to provide financial support to non-corporate, non-farm small and micro-entrepreneurs previously excluded from the formal financial system.
    • MUDRA stands for Micro Units Development & Refinance Agency Ltd., a financial institution established to support the development and refinancing of micro-enterprises
    • It aims to foster grassroots entrepreneurship and remove barriers to accessing loans, especially for businesses that lack collateral.

    Loan Categories:

      1. Shishu: Loans up to ₹50,000 for new or small businesses.
      2. Kishore: Loans ranging from ₹50,000 to ₹5 lakh for growing enterprises.
      3. Tarun: Loans from ₹5 lakh to ₹10 lakh for more established businesses with greater capital needs.
      4. TarunPlus: Loan limit up to ₹20 lakh for more established and larger businesses (since July 2024).

    Key Features:

    • Collateral-Free Loans: PMMY loans do not require any collateral, making them accessible to those without assets.
    • Member Lending Institutions (MLIs): These include Public Sector Banks, Private Sector Banks, Regional Rural Banks, Micro Finance Institutions (MFIs), Non-Banking Financial Companies (NBFCs), and Small Finance Banks (SFBs).
    • Credit Guarantee: Loans are backed by the Credit Guarantee Fund for Micro Units (CGFMU), which was established in 2015 to provide security to financial institutions offering loans under PMMY.
    • MUDRA Card: A MUDRA card is issued to manage the working capital portion of the loan, providing convenience to the borrower.

    MUDRA 2.0:

    • MUDRA 2.0 (launched in Union Budget 2024) is an upgraded version of the original PMMY, designed to extend its outreach, particularly in rural and semi-urban areas.
    • This version introduces additional services such as financial literacy programs, business mentorship, and comprehensive business support, aiming to improve the overall impact of the scheme.
    • Enhanced Credit Guarantee Scheme (ECGS) is a new feature introduced to encourage more lending to small and microenterprises by reducing the risk for financial institutions.

    Successes of PMMY:

    • Massive Loan Disbursement: Over ₹32.61 lakh crore disbursed through 52 crore loans, benefitting millions.
    • Inclusivity: 69% of loans are held by women, 51% by SC/ST and OBC entrepreneurs.
    • Job Creation: Promoted self-employment and business growth in rural and semi-urban areas.
    • MSME Credit Growth: Lending increased from ₹8.51 lakh crore in FY14 to ₹27.25 lakh crore in FY24.
    • International Recognition: Praised by IMF for expanding financial access, especially for women-led businesses.

    Challenges:

    • Increase in NPAs: Rising defaults due to lack of collateral.
    • Disbursement Delays: Some banks face challenges in meeting loan targets.
    • Fraud Risk: Collateral-free loans are susceptible to misuse and fraud.
    • Larger Loan Limits: Higher limits under TarunPlus raise default risks for banks.
    • Default Risk: Some borrowers exploit the system through “evergreening” tactics.
    [UPSC 2016] Pradhan Mantri MUDRA Yojana is aimed at

    (a) bringing small entrepreneurs into the formal financial system.

    (b) providing loans to poor farmers for cultivating particular crops.

    (c) providing pensions to old and destitute persons.

    (d) funding the voluntary organizations involved in the promotion of skill development and employment generation.

     

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

    Palna Scheme under Mission Shakti

    Schemes | Governance | Mains Paper 2: Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Palna Scheme

    Why in the News?

    The Ministry of Women and Child Development has informed that 1,761 Anganwadi-cum-Creches are operational across the country under the Palna Scheme.

    About the Palna Scheme

    • Launched to address childcare needs for working mothers, the Palna Scheme provides day-care facilities for children aged 6 months to 6 years.
    • In 2022, the National Creche Scheme was reorganized and renamed Palna Scheme under the Samarthya sub-scheme of Mission Shakti.
    • It is a Centrally Sponsored Scheme, with a 60:40 funding ratio between the Centre and State/UT Governments (90:10 for North-Eastern and Special Category States). UTs without legislature receive 100% funding.
    • Target Audience: Provides services for all mothers (irrespective of their employment status), offering a safe, hygienic, and supportive environment for children.
    • Creche Services: Includes day-care, early stimulation, preschool education, nutrition, health check-ups, and immunization support.

    Other Creche Schemes:

    • Standalone Creches: Independent creches are providing care for children aged 6 months to 6 years. They include provisions for one Creche Worker and one Creche Helper. Services include sleeping arrangements, health monitoring, and education.
    • Anganwadi-cum-Creches (AWCC): A key component of Palna Scheme, these creches combine Anganwadi services with daycare for working mothers.
      • Staffing: Includes an Anganwadi Worker, Helper, and Creche Worker and Helper.
      • Target: Establish 17,000 new AWCCs by 2024-25, with 11,395 already approved as of March 2025.
      • Objective: To provide childcare in rural and semi-urban areas, ensuring last-mile delivery.
      • Honorarium: ₹6,500 for Creche Workers in standalone crèches and ₹5,500 for AWCC Workers.

    About Mission Shakti

    • Mission Shakti is the Ministry of Women and Child Development’s flagship scheme, designed to strengthen women’s safety, security, and empowerment in India. 
    • The scheme supports women-led development by addressing issues affecting women across their life-cycle.
    • Components:
      1. Sambal: Focuses on women’s safety, with initiatives like the One Stop Centre (OSC), Women Helpline (WHL), and Beti Bachao Beti Padhao (BBBP).
      2. Samarthya: Empowering women through sub-schemes like Ujjwala, Swadhar Greh, and the Palna Scheme. It integrates support for childcare and maternal health.
      3. Gap Funding for Economic Empowerment: A new initiative to support financial gaps in women’s enterprises.
    [UPSC 2019] With reference to the Maternity Benefit Amendment Act, 2017, consider the following statements:

    1. Pregnant women are entitled for three months pre-delivery and three months post-delivery paid leave

    2. This act applies to all organisations with 20 or more employees

    3. It has made it mandatory for every organisation with 50 or more employees to have a crèche.

    Which of the given statements is/are correct?

    (a) 1 and 2 only (b) 2 only (c) 3 only (d) 1, 2 and 3

     

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  • AYUSH – Indian Medicine System

    Central Sector Scheme for Promotion of International Cooperation for AYUSH 

    Schemes | Indian Society | Mains Paper 2: Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Central Sector Scheme for Promotion of International Cooperation for AYUSH

    Why in the News?

    The Ministry of Ayush is implementing the Central Sector Scheme for Promotion of International Cooperation for AYUSH to enhance global recognition and development of AYUSH systems, including Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy.

    About the Scheme

    • The scheme focuses on promoting AYUSH systems internationally, contributing to their global growth.
    • The scheme is announced on the AYUSH website, and applications are invited through open advertisements.
    • Proposals are screened by a committee and approved for financial assistance based on needs and activity limits.
    • Key Components of the Scheme:
      1. International Exchange of Experts & Officers: Facilitates deputation of AYUSH experts for international conferences and training.
      2. Incentives for Drug Manufacturers: Provides financial support for international propagation and product registration.
      3. Market Development Support: Supports exhibitions, conferences, and market surveys for international market development.
      4. Promotion through Young Postgraduates: Deploys young postgraduates to promote AYUSH abroad through NGOs.
      5. Translation and Publication: Funds the translation and publication of AYUSH literature in foreign languages.
      6. AYUSH Information Cells/Health Centres: Establishes AYUSH cells and health centers in foreign countries through Indian missions.
      7. International Fellowship Programme: Offers fellowships to foreign nationals to study AYUSH courses in India.

    Significance of Yoga and AYUSH in India’s International Outreach

    • The International Day of Yoga (IDY) was declared by the United Nations in 2014, with ₹161 crore spent on its promotion. IDY celebrations spread Yoga’s global message.
    • Yoga is now part of the National Curriculum Framework (NCF), making it compulsory for students from Class I to Class X.
    • The Yoga Certification Board (YCB) under the Ministry of Ayush certifies yoga professionals and accredits institutions, ensuring quality and standards in Yoga practice.
    • The Ministry of Ayush has signed 24 Country-to-Country MoUs and 51 Institute-to-Institute MoUs to promote Indian traditional medicine systems globally.

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  • MGNREGA Scheme

    Centre hikes MGNREGS wages by 2-7% for FY26

    Prelims OnlySchemes | Governance | Mains Paper 2: Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: MGNREGS

    Why in the News?

    The Centre has announced a hike in the wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the financial year 2025-26, with an increase ranging from 2-7%.

    Wage Revision Under MGNREGS:

    • 2025-26 Wage Hike:
      • Wage increase: 2.33%-7.48%, with ₹7 to ₹26 rise.
      • Haryana records the largest hike of ₹26, bringing the wage to ₹400 per day (highest in India).
    • Wage Calculation:
      • Wages are linked to the Consumer Price Index for Agricultural Labourers (CPI-AL).
    • Previous Hikes:
      • Goa had the largest hike of 10.56% in 2024-25.
      • Uttar Pradesh and Uttarakhand had the smallest at 3.04%.

    About MGNREGS

    • The MGNREGS, launched in 2005, guarantees 100 days of wage employment annually for rural households.
    • It provides a legal right to work, focusing on unskilled manual labour.
    • Unique Features:
      • 100 days of employment for rural households, with adult members volunteering for unskilled work.
      • If employment isn’t provided within 15 days, an unemployment allowance is paid.
      • Work must be offered within 5 km of the applicant’s residence.
      • The Centre funds 100% of unskilled labour costs, 75% of skilled labour and materials, and 6% of administrative costs.
    • Key Provisions under MGNREGS
      • Rural households are entitled to 100 days of employment. Additional days are allowed during natural calamities or for Scheduled Tribe households.
      • Citizens can conduct social audits to ensure transparency, with all records open to public scrutiny.
      • Worksites must provide crèches, drinking water, and first aid.
      • Workers more than 5 km from the worksite receive a travel allowance of 10% of the wage rate.

    Recent Challenges surrounding MGNREGS:

    • Delayed Payments: ₹11,423 crore owed for wages and administrative costs as of January 2025, with workers facing delays of weeks or months.
    • Inadequate Wage Rates: Wage rates are not linked to inflation, with the highest wage for 2024-25 at ₹374 in Haryana, below the national minimum wage.
    • Technological Challenges: Issues with Aadhaar-based payments and mobile monitoring systems have led to non-payment or misdirected funds.
    • Budget Constraints: Budget allocations have decreased from 0.4% of GDP in FY22 to 0.2% in FY25, impacting workdays and payments.
    • Social Audit Irregularities: Irregular audits by Gram Sabhas raise concerns about accountability and transparency.

     

    [UPSC 2011] 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

     

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  • Gold Monetisation Scheme

    Govt discontinues Gold Monetization Scheme

    Schemes | Economics | Mains Paper 3: Investment Models

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Gold Monetisation Scheme (GMS)

    Why in the News?

    The Centre has decided to discontinue the Gold Monetization Scheme (GMS) starting from March 26, 2025, considering evolving market conditions.

    The short-term deposits (1-3 years) will continue at the discretion of individual banks based on commercial viability, highlighting a shift towards flexible, shorter-term options.

    About Gold Monetization Scheme (GMS) and its Features

    • The GMS was launched in November 2015 as an enhanced version of the Gold Deposit Scheme (GDS) and Gold Metal Loan (GML) Scheme.
    • The main goal was to mobilize idle gold from households and institutions into the formal economy, thereby reducing the country’s reliance on gold imports and improving the current account deficit (CAD).
    • Objectives: Aimed at mobilizing gold, reducing gold imports, and utilizing gold to generate interest as a financial asset, thereby strengthening the economy.
    • The GMS included three deposit options:
      • Short-Term Gold Deposit (STGD): 1-3 years
      • Medium-Term Gold Deposit (MTGD): 5-7 years
      • Long-Term Gold Deposit (LTGD): 12-15 years
    • Interest and Redemption:
      • Short-Term Deposits: Interest rates determined by individual banks; redemption could be in cash or gold.
      • Medium- and Long-Term Deposits: Fixed interest rates at 2.25% (medium-term) and 2.5% (long-term), with cash redemption only.
    • Eligibility Criteria:
      • Open to individuals, institutions, and government entities.
      • Gold tendering accepted only at designated Collection and Purity Testing Centres (CPTC) or through GMS Mobilisation Agents.
      • Deposits were accepted only if the value exceeded ₹1 lakh.

    Reasons for Discontinuation  

    • The Finance Ministry discontinued the Medium-Term and Long-Term Deposits due to changes in the gold market.
    • Gold prices surged by 41.5% from ₹63,920 per 10 grams in January 2024 to ₹90,450 per 10 grams by March 2025.
    • This rise in gold value reduced the attractiveness of schemes like GMS for both depositors and the government.
    • With the closure of the Sovereign Gold Bond Scheme, the government aims to shift towards more market-oriented solutions for gold-related financial products.
    [UPSC 2016] What is/are the purpose/purposes of the Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

    1. To bring the idle gold lying with Indian households into the economy.

    2. To promote FDI in the gold and jewellery sector

    3. To reduce India’s dependence on gold imports

    Select the correct answer using the code given below:

    (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

     

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  • Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

    [pib] Revised National Program for Dairy Development (NPDD)

    PIBSchemes | Agriculture | Mains Paper 3: Agriculture and related issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: National Program for Dairy Development (NPDD)

    Why in the News?

    The Union Cabinet has approved the Revised National Programme for Dairy Development (NPDD), enhancing its scope and funding to modernize and expand the dairy sector across India.

    About the National Programme for Dairy Development (NPDD)

    • It is implemented by the Department of Animal Husbandry & Dairying (DAHD).
    • The scheme has been operational since February 2014, initially targeting the development of dairy cooperatives and expanding infrastructure to support dairy activities.
      • In July 2021, the scheme was restructured to align with the goals of the 15th Finance Commission cycle (2021-2026), to run from 2021 to 2026 with an enhanced budget.
    • It focuses on providing technical and financial assistance to improve the dairy infrastructure in India, including enhancing milk procurement, processing, and marketing capabilities.
    • It also aims to provide training facilities for dairy farmers, improving their skills and fostering rural development.

    Revised Components of NPDD Scheme:

    The Revised NPDD, a Central Sector Scheme, is designed with two primary components that focus on dairy infrastructure development and cooperative strengthening:

    Component A: Dairy Infrastructure Improvement

    • This component focuses on improving essential dairy infrastructure, such as the installation of milk chilling plants, advanced milk testing laboratories, and certification systems for quality assurance.
    • Special attention is given to the North Eastern Region (NER), hilly areas, and Union Territories (UTs), where support is provided for the formation of new dairy cooperative societies and the strengthening of milk procurement and processing systems.
    • Grant support will be provided for the formation of 2 Milk Producer Companies, ensuring a more efficient procurement system.

    Component B: Dairying through Cooperatives (DTC)

    • This component focuses on fostering dairy development through cooperative models in partnership with the Government of Japan and Japan International Cooperation Agency (JICA).
    • It aims to sustainably develop dairy cooperatives, improve production, processing, and marketing infrastructure in 9 key states: Andhra Pradesh, Bihar, Madhya Pradesh, Punjab, Rajasthan, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal.
    • This component seeks to introduce international best practices in cooperative management and dairy technologies.

    PYQ:

    [UPSC 2013] Which of the following grants direct credit assistance to the households?

    1. Regional Rural Banks

    2. National Bank for Agriculture and Rural Development

    3. Land Development Banks

    Select the correct answer using codes given below.

    (a) 1 and 2 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

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