Category: Business

SAMVAAD App launched to connect with employees and stakeholders digitally

Coal India Subsidiary Western Coalfields Ltd (WCL) opened 3 new coal mines in Maharashtra and Madhya Pradesh today having combined annual production capacity of 2.9 million tonnes (MT). The company will infuse total capital expenditure (Capex) of Rs. 849 crores on these projects and generate direct employment for 647 persons. Madhya Pradesh Chief Minister Shri Shivraj Singh Chouhan, Maharashtra Chief Minister Shri Uddhav Thackeray, Union Minister of Road Transport & Highways Shri Nitin Gadkari and Union Minister of Coal and Mines Shri Pralhad Joshi inaugurated the mines through video conference.

“WCL has to produce 75 MT of coal by financial year 2023-24. Opening of these mines will certainly add in the efforts of the company reaching this milestone and also help Coal India achieve 1 billion tonnes (BT) coal production target by financial year 2023-24.” Union Minister of Coal and Mines Shri Pralhad Joshi said on the occasion.

The three mines which WCL has opened, are a) Adasa Mine, an underground to open cast mine, in Nagpur Area of Maharashtra, b) Sharda underground Mine in Kanhan Area and c) Dhankasa underground mine in Pench Area of Madhya Pradesh. The annual coal production capacity of Adasa mine is 1.5 MT whereas Sharda and Dhankasa mines are having annual coal production capacities of 0.4 MT and 1 MT respectively.

The company launched a surveillance System named WCL EYE for monitoring of its mining operations and an App named SAMVAAD to connect with its employees and stakeholders on this occasion. WCL EYE will monitor operations of 15 major mines of the company round the clock that account for 70% of the company’s coal production. It will also help monitor coal stocks and availability of coal at sidings, keep a tab on placement of rakes and loading at railway sidings and ensure accountability.

SAMVAAD is a Mobile and Desktop App for employees & stakeholders, which will provide a virtual platform for suggestion/feedback/experience sharing. Quick Response Teams will respond to the queries and feedbacks in 7 days mandated period.

Shri Joshi announced that different subsidiaries of Coal India have given Rs. 20 crores to the Government of Madhya Pradesh to strengthen its fight against COVID-19 pandemic in the state. Coal India will also give Rs. 20 crores in a day or two to the Government of Maharashtra for strengthening its cause against COVID-19. 

WCL has launched “Mission 100 Days” a roadmap to achieve targets for the current fiscal. This mission will also help the company accomplish mid and long-term goals. The company’s coal production and offtake target for the current fiscal is 62 MT.

“Opening of these 3 Mines is a part of WCL’s future plan to start 20 new Projects by financial year 2023-24 including 14 in Maharashtra and 6 in Madhya Pradesh. The company will make total capital expenditure of Rs. 12753 crores on these projects and generate direct employment of over 14000” Shri Joshi said.

The company has already opened 20 new and expansion projects in the last 6 years with over Rs. 5300 crores of capital expenditure and 5250 direct employment to land losers.

WCL had produced 57.64 MT of Coal in financial year 2019-20, up over 8% in comparison to the last fiscal.

Designer masks: the new fashion statement

If we have to live with a face mask in the foreseeable future, let it be a designer one. Luxury brands to corporate fashion, artisanal communities to even turban designers are redefining the face mask into a fashion accessory, albeit one that follows all the norms of WHO safety protocols.

The bizarre situation arising out of the COVID-19 pandemic has sparked an amazing amount of creativity among designers and artisans. Glamorous to the artistic, the range of masks flooding the market is exhilarating.

While the initial intention of designers and brands was to create masks for a more altruistic purpose — to rush supplies to frontline workers as a contribution to the fight against the pandemic, it is turning into another vertical of their business. For artisans, on the other hand, it is a means to survive the financial constraints imposed by the lockdown and tide over these uncertain times.

Globally, fashion brands such as Dior, Prada, Gucci and Louis Vuitton recalibrated their manufacturing units to make masks, protective gear and sanitizers. Their masks initiative has moved from public-spirited to a fashion offering. Indian designers and savvy artisans are fast catching up. Face masks are a canvas for self-expression and a means of survival at a time when most business has come to a halt. According to the book History of Surgical Face Masks by John L. Spooner, masks first made an appearance as protective gear for medical practitioners in the 19th century. They were adapted in China in 1910 to prevent spread of pneumonic plague.

Fashion in Asian countries such as China, Korea and Japan included designer face masks as a shield to deal with rising pollution. The rest of the world is waking up to the fact that your mask does not have to be boring or surgical if you aren’t a frontline healthcare worker or afflicted by COVID-19.

The Savile Row mask

huntsman

Established tailors on this iconic London street are handcrafting and retailing face masks, which is now an essential accessory in our fight against the coronavirus. Huntsman, a big name on Savile Row, handcrafts soft masks made using 100 percent Egyptian cotton. The double-layered masks are embroidered with their signature alphabet ‘H’ and are sold in a classic box pleat design with elasticated straps.

The luxury monogrammed masks

lv-mask

LVMH, owner of brands such as Louis Vuitton, Dior, Givenchy and Fendi, has employed 300 additional artisans to make non-surgical face masks. The LV masks feature the classic brown monogram pattern in tan suede with gold rivets reinforcement and costs up to $1800. Pretty much like LV, Fendi has put out a logo-monogrammed mask in deep tan/brown shade that has been designed and hand-stitched by artisans in their Paris atelier.

The signature pattern face masks

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Most designers have signature prints that they are known for. Priyanka Modi, creative Director of AMPM, an edgy fashion brand has dovetailed their prints with some colour “added keeping in mind the universal dreariness, to lift up the spirits of the people who end up wearing them”. The result is a collection of snug textured, patterned masks with contemporary aesthetics and angular lines. Functional to the tee, these masks can be bought online as well as at AMPM stores, and retail between Rs 4,000 to Rs 5,000.

The quilted ones

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Leconet Hemant’s dreamy signature patterns and prints make way on to their 3-and-5 ply face masks. “We have used cotton poplin with polyester interlining, which feature prints and light quilting with fabric. Each mask undergoes UV-ray sterilisation before being packed in a fabric pouch made from the off cuts,” says designer and co-founder Hemant Sagar. The prices of the masks range from Rs 999 and Rs 1499 and they are being sold via the brand’s stores.

The Rajput-style masks

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Rajputs are famous for their swag and their style, on display even in the most stressful of situations. Udaipur-based safa and turban designer Harendra Jodha, who studied the Rajput lifestyle at Chopasin School (they teach you how to live a life of leisure like a Rajput!) created a range of beautiful handloom cotton 3-ply masks to match the safas that the men wear, particularly at weddings or important ceremonies.

 

Agroecology and Natural Farming Could Accelerate Inclusive Economic Growth in India

International experts in a convention organized on 29 May by NITI Aayog endorsed efforts to significantly boost agroecological and natural farming approaches in India.

Speaking to an audience of senior international and national experts and policymakers, Minister of Agriculture Shri Narendra Singh Tomar stated, “Natural farming is our indigenous system based on cow dung and urine, biomass, mulch and soil aeration [. . .]. In the next five years, we intend to reach 20 lakh hectares in any form of organic farming, including natural farming, of which 12 lakh hectares are under BPKP [Bharatiya Prakritik Krishi Paddhati Programme].’

He further noted that the Paramparagat Krishi Vikas Yojana launched in 2015 to promote organic farming among small and marginal farmers has in the last four years covered 7 lakh hectares and 8 lakh farmers. He pointed out that Andhra Pradesh, Karnataka, Himachal Pradesh, and Kerala have taken up natural farming on a large scale. Andhra Pradesh alone has brought 2 lakh hectares under natural farming under this scheme. He concluded by highlighting that the need of the hour, in light of the covid-19 pandemic, was to have ‘food free from chemical fertilisers and pesticides’, while not ignoring the need to feed and nourish the country.

Setting the scene for the online High-level Roundtable, the first of its kind in India, NITI Aayog Vice Chairman Dr Rajiv Kumar established a high bar for the transformation and renewal of agriculture in India when he asked whether agroecology and natural farming can ‘avoid excessive and wasteful use of water, prevent farmer indebtedness, contribute to mitigating greenhouse gases while supporting farmer incomes and their ability to adapt to climate change’.

International experts from the US, UK, Netherlands, CGIAR, Australia, Germany, and of UN acknowledged India’s pioneering leadership in the arena of agroecology—the science of applying ecology to agriculture for sustainable outcomes that are more resilient to climate shocks such as droughts or flooding and pest attacks, but are still productive and support farmer’s livelihoods—and especially natural farming, which is a form of agroecology. Natural farming avoids use of synthetic fertilisers and pesticides, while focusing on reviving the beneficial soil organisms that contribute to fertility and good nutrition of the plants. Experts explained that well-nourished plants lead to well-nourished human beings.

The gathered experts provided evidence from latest studies, cutting-edge research, and science as well as practical experience from economics, finance and markets. The overwhelming conclusion was to support the Minister’s conclusion that natural farming and other agroecological approaches, such as organic agriculture, have great promise for a renaissance of Indian agriculture, so that farming is not just productive but truly regenerative and sustainable.

Experts concluded that it would be a mistake to view natural farming as a step backwards to the farming techniques of our forefathers, but rather, as the high level panel of experts report on Agroecology to the Committee on Food Security of FAO so clearly demonstrated, it is based on cutting-edge science of the future that recognises the need for systemic approaches to dealing with complex adaptive systems that are the basis of a healthy natural world. Working with nature, understanding how to do so will help us ‘build back better’ as one expert noted.

Others noted the huge interest, to the scale of hundreds of billions of dollars, in investing in natural farming and agroecology as they were systems of the future. Prof. Ramesh Chand, Member (Agriculture) of NITI Aayog, called for more research to ensure that natural farming could truly live up to its expectations. The need for innovation, science and technology was endorsed by experts who noted the importance of regenerating soils and building on biodiversity as two key elements, along with use of natural inputs readily available to farmers in this knowledge intensive approach.

Commenting on the presentations made by assembled experts, Principal Scientific Adviser to the Government of India Prof. K. Vijayraghavan remarked, ‘We are running behind yields at the cost of diversity and nutrition. To protect our planet there is need for change in our attitude towards use of chemical fertilisers and pesticides. Technology can help in changing the way we farm and will enable the poorest of the poor to enhance their nutrition status and livelihoods.’

In his concluding remarks Dr Rajiv Kumar emphasized that agroecology is the only option to save the planet and is in line with Indian traditions said, ‘[. . .] it is not man vs nature, but man in nature or man with nature. Humans need to realize their responsibility in protecting other species and nature. We need knowledge-intensive agriculture and the metrics need to be redefined where production is not the only criterion for good performance. It has to include the entire landscape and the positive and negative externalities that are generated by alternative forms of agriculture practices.’

Participants & Programme: Notable participants, other than Union Agriculture Minister Narendra Singh Tomar, included the host, NITI Aayog Vice Chairman Dr Rajiv Kumar; Principal Scientific Adviser Prof. K. Vijayraghavan; Mr Satya S. Tripathi, UN Assistant Secretary General; Mr Pavan Sukhdev, President of WWF International; Mr Alexander Mueller, Managing Director of TMG: Think Tank for Sustainability; Dr Ramesh Chand, Member NITI Aayog; as well as a host of very senior officials from the GoI and state governments, leading experts, researchers, specialists and thought leaders.

List of speakers is available below along with the programme.

Programme & Speakers

Welcome remarks:

Dr Rajiv Kumar, Vice Chairman of NITI Aayog, Government of India

Opening remarks:

Mr Narendra Singh Tomar, Minister of Agriculture and Farmers Welfare; Minister of Rural Development, Government of India

Panel Discussion on Environment and Ecology:

Moderator: Mr Pavan Sukhdev. This session focused on the challenges and potential benefits for India by adopting a system-scale transition to natural farming.

Speakers: Prof. Philip Landrigan, founding director, Global Public Health Program, Boston College; Dr Pushpam Kumar, Chief Environmental Economist of UNEP; and Mr Walter Jehne, Climate Scientist and Microbiologist. 

Panel Discussion on Regenerative Agriculture:

Moderator: Mr Alexander Mueller, Managing Director of TMG Thinktank in Germany, is former German State Secretary and Assistant Director-General of FAO. This session focused on the tremendous opportunities in harnessing India’s ancient agricultural practices and wisdom in rolling out a sustainability revolution based on regenerative agriculture improving livelihoods and health of people and the planet.

Speakers: Prof. Ramesh Chand, Member (Agriculture), NITI Aayog; Dr Ravi Prabhu, Deputy Director General, World Agroforestry (ICRAF); Mr Sanjay Agarwal, Secretary, Agriculture, Government of India; and Mr Daniel Moss, Executive Director of AgroEcology Fund.  

Panel Discussion on Market Access and Sustainable Finance:

Moderator: Mr Satya S. Tripathi, UN Assistant Secretary-General. This session focused on expanding market access for naturally farmed agricultural commodities and sustainable financing options for a system-scale transition to natural farming.

Speakers: Mr Sean Kidney, CEO, Climate Bonds Initiative; Mr Craig Cogut, Chairman and CEO, Pegasus Capital Advisers, Mr Joost Oorthuizen, CEO of Sustainable Trade Inititiative (IDH); and Mr David Rosenberg, CEO of Aerofarms. 

Odisha under “Jal Jeevan Mission (Har Ghar Jal)

Through ‘Jal Jeevan Mission’, Government of India is making all efforts to provide every rural household in the country a Functional Household Tap Connection for water in adequate quantity of prescribed quality on regular and long-term basis. Following the true spirit of cooperative federalism, State Governments are steering this flagship programme to realise the objectives of the Mission so as to bring cheers in the lives of rural people by providing potable water at their doorstep and ensure ‘ease of living’. It is envisaged that through this life changing Mission, each household will get potable water supply of 55 lpcd of prescribed quality on regular and long-term basis.

The estimated outlay of the mission is Rs 3.60 Lakh Crore with Central and State share of Rs. 2.08 Lakh Crore and Rs.1.52 Lakh Crore respectively.

Odisha state presented their Annual Action Plan before the National Committee headed by Secretary, Drinking Water & Sanitation, Ministry of Jal Shakti for consideration and approval for 2020-21. Govt of India approved Rs 812 Crores for implementation of the Mission in the State for the financial year. This allocation is a significant jump from last year’s allocation of Rs 297 Crore. Out of 81 lakh rural households in the State, Govt of Odisha plans to provide 16.21 lakh household connections in 2020-21. The State is planning 100% household tap connections by the year 2024. Priority is being given for 100% coverage of villages under water scare areas, quality-affected areas, Sansad Adarsh Gram Yojna villages, villages in aspirational districts and SC/ ST dominated habitations.

Laying emphasis on capitalising on ‘low-hanging fruits’ i.e. in the villages/ habitations where piped water supply schemes already exist, State is making all out efforts to immediately provide household tap connections to remaining households belonging to weaker and marginalised sections on priority. A roadmap is prepared for the effective implementation of Village Action Plan (VAP) with the active participation of the rural community. Strengthening of existing drinking water sources for long-term sustainability of drinking water supply systems through convergence of various programmes like MGNREGS, SBM (G), 15th FC Grants to PRIs, District Mineral Development Fund, CAMPA, Local Area Development Fund, etc. at village level is planned for judicious use of all available resources. The State has been allocated Rs. 2,258 Crore under 15th Finance Commission Grants to PRIs during 2020-21; 50% of this amount has to be mandatorily spent on water and sanitation.

To implement the mission, institutional arrangements at various levels have been made and State’s PHE Department is to play a critical role. To instil sense of ownership among the village community, Mission strives to involve the community in planning, managing, implementing, operation and maintaining the water supply schemes meant for them for long-term sustainability. State Government will start engaging the Self Help Groups and voluntary organisations for community mobilization.

Jal Jeevan Mission encourages participation of local community in surveillance of water quality. For this, action plan carried out to incorporate the timely procurement of kits, supply of kits to the community, identification of at least five women in every village, training women for use of Field Test Kits and reporting and collating the reports with laboratory-based findings of the water sources. State also proposed taking NABL accreditation for 18 of its water testing labs. At present, it has one state-level lab and 32 district level labs. 

Odisha state reels under two extreme conditions of water scarcity and also excess of it. There is one part which is water-stressed for most of the year, while the other part is marooned in monsoon. With the mercury soaring above 40 degrees Celsius, and during the prevailing Covid–19 pandemic, it is important that people don’t crowd public stand posts/ drinking water sources to fetch drinking water. Therefore, State was advised for taking up water supply works in villages to provide household tap connections, which will help in practicing social distancing, and will additionally help local people in getting employment and boost rural economy.

In the present context, when lot of migrants are returning to the State, it has become very important to provide livelihood to them. These personnel could be utilized in water supply related works especially plumbing, fitting, water conservation works, etc. in every village to ensure sufficient ground water availability leading to water security, water availability for agriculture and most importantly will help in provision of drinking water to every rural household as per the objective of Jal Jeevan Mission.

Kisan Credit Cards (KCC) campaign launched for 1.5 crore dairy farmers

The Government will provide Kisan Credit Card (KCC) to 1.5 crore dairy farmers belonging to Milk Unions and Milk producing Companies within the next two months (1st June-31st July 2020) under a special drive. The Department of Animal Husbandry and Dairyingin association with Department of Financial Services has already circulated relevant circulars and KCC application format to all State Milk Federation and Milk Unions for implementing the same on a mission mode.

Under the dairy cooperative movement, approximately 1.7 crore farmers are associated with 230 Milk Unions in the country.

In the first phase of this campaign, the target is to cover all farmers who are members of dairy cooperative societies and associated with different Milk Unions and who do not have KCC. Farmers who already have KCC based on their land ownership, can get their KCC credit limit enhanced, though interest subvention shall be available only to the extent of Rs 3 lakhs. Although the general limit for KCC credit without collateral remains Rs. 1.6 lakh, but the case of farmers whose milk is directlyprocured by Milk Unions falls under tie up arrangements between the producers and processing units without any intermediaries, and hence the credit limits without Collateral can be upto Rs.3 lakh.This will ensure more credit availabilityfordairy farmers associated with Milk Unions as well as assuring repayment of loans to banks.

The special drive to provide KCC to 1.5 crore dairy farmers is part of the Prime Minister’s Atma Nirbhar Bharat package for Farmers. Finance Minister on 15 May 2020 has announced to cover 2.5 crore new farmers under the KCC scheme. This will provide an additional liquidity of Rs.5 lakh crore in the hands of farmers, who are suffering from the recent downturn of economy.

As, dairy is among the fastest growing sectors of the economy with a CAGR of above 6% in the last 5 years, providing short term credit to dairy farmers for meeting their requirements for working capital, marketing etc. will boost their productivity tremendously.

Issue of GST late fee for the past period (August 2017 to January 2020)

In the recent past, tweets have been noticed by the Government on the issue of waiver of late fee applicable on non-filing of GSTR 3B returns. The demands are largely for the waiver of late fee for the returns which were required to be filed from the beginning of Goods & Services Tax (GST) i.e. August, 2017.

It may be noted that for helping the small businesses having turnover less than Rs 5 crore in the current situation arising out of COVID-19, Finance Minister Smt. Nirmala Sitharaman had already announced extension of GST returns of February, March, April and May 2020 till June 2020. No late fee will be charged for this period.

The current requests for waiver of late fee pertain to the old period (August 2017 to January 2020). It may be appreciated that the late fee is imposed to ensure that the taxpayers file return in time and pay taxes on the amount collected from buyers and due to the Government. This is a step to ensure that a certain discipline is maintained regarding compliance. Honest and compliant taxpayers would be discriminated negatively in the absence of such a provision.

In GST, all decisions are taken by the Centre and the State with the approval of the GST Council. It would not be possible or desirable for the Central Government to unilaterally take a view on this issue and therefore, the trade is informed that the issue of late fee would be taken up for discussion in the next GST Council meeting.

20 States under ONOC to commence national/ inter-State portability transactions to benefit migrants

The Union Minister of Consumer Affairs, Food & Public Distribution Shri Ram Vilas Paswan today announced the inclusion of three more states namely – Odisha, Sikkim and Mizoram in the scheme on ‘Integrated Management of Public Distribution System’ (IM-PDS).Under this system nation-wide portability of the benefits under NFSA through “One Nation One Ration Card” plan is implemented to enable the NFSA ration card holders to lift their entitled quota of subsidised foodgrains from any ePoS enabled FPS of their choice anywhere in the country, by using the existing/same ration card after Aadhaar authentication on ePoS device.

The facility so far is enabled in 17 States/UTs, namely – Andhra Pradesh, Bihar, Dadra & Nagar Haveli and Daman & Diu, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Kerala, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Punjab, Telangana, Tripura and Uttar Pradesh. Further, constant efforts are being made by this Department of Food & Public Distribution to expand the reach of national portability to the beneficiaries of other States/UTs also in association with respective State/UT Governments. In this endeavour, necessary preparatory activities to integrate these three new States with the national cluster viz. upgradation of ePoS software, integration with central IM-PDS and Annavitran portals, availability of ration cards/beneficiaries data in Central Repository, requisite testing of national portability transactions has also been completed with the support of central NIC team. After completing all these arrangements, the national/ inter-State portability transactions under ‘One Nation One Ration Card’ plan has been enabled in these States w.e.f distribution month of June 2020. By August 2020 three more States namely – Uttarakhand, Nagaland and Manipur will also be added to the national cluster. Department is doing all necessary arrangements to include remaining all 13 States namely – West Bengal, Arunachal Pradesh, Assam, Meghalaya, Delhi, J&K, Ladakh, Chandigarh, Puducherry, Tamil Nadu, Chhattisgarh, Andaman&Nicobar and Lakshadweep island to the national cluster. It is confirmed that by 31st March 2021 all States will be added to One Nation One Ration Card scheme and the scheme will be operational all over India.

Shri Paswan highlighted that central technical team has imparted the requisite orientation trainings to the technical team and concerned officers of these States/UTs through Video Conferencing and necessary guidelines/ instructions for the implementation of national/inter-State portability were also provided to them. It is reiterated that those NFSA ration cards which have recorded atleast one Aadhaar authenticated transaction during the last 6-months shall be eligible for the national portability transactions under this plan. This feature has been enabled through the central repository of ration cards/beneficiaries maintained by NIC. Further, it is mentioned that requisite web-services for reporting of portability transaction details to central dashboard are also enabled for these States with immediate effect and the central NIC team shall be continuously assisting the State Governments in seamless rollout of ‘One Nation One Ration Card’ plan.

Shri Paswan requested all these States to commence the national/ inter-State portability transactions in June 2020. This would also enable the beneficiaries of these States anywhere in the national cluster of States/UTs to access their quota of foodgrains through national portability with immediate effect. In this regard, efforts/activities to generate necessary awareness among the NFSA beneficiaries and FPS dealers may also be undertaken on priority.

Energising the MSME Sector through entire gamut of ‘Atmanirbhar Bharat Package’

In line with Government of India’s top focus on energising MSMEs in the country, a special meeting of Cabinet Committee on Economic Affairs (CCEA) was convened under the Chairmanship of Prime Minister Shri Narendra Modi, here today, which approved the upward revision of MSME definition and modalities/ road map for laying down effective implementation mechanism for the remaining two announcements under the Atmanirbhar Bharat Package. These include:

  • In the package announcement, the definition of micro manufacturing and services unit was increased to Rs. 1 crore of investment and Rs. 5 crore of turnover. The limit of small unit was increased to Rs. 10 crore of investment and Rs 50 crore of turnover. Similarly, the limit of a medium unit was increased to Rs 20 crore of investment and Rs. 100 crore of turnover. It may be noted that this revision was done after 14 years since the MSME Development Act came into existence in 2006. After the package announcement on 13th May, 2020, there were several representations that the announced revision is still not in tune with market and pricing conditions and it should be further revised upwards. Keeping in mind these representations, it was decided to further increase the limit for medium manufacturing and service units. Now it will be Rs. 50 crore of investment and Rs. 250 crore of turnover. It has also been decided that the turnover with respect to exports will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium. This is yet another step towards ease of doing business. This will help in attracting investments and creating more jobs in the MSME sector. The following table provides the details of revised limits:
 CategoryOldCapitalOldTurnoverNewCapitalNewTurnover
Micro25 Lakh10 Lakh1 Crore5 Crore
Small5 Crore2 Crore10 Crore50 Crore
Medium10 crore5 Crore50 Crore250 Crore
  • Approval for provisioning of Rs 20,000 crore as subordinate debt to provide equity support to the stressed MSMEs. This will benefit 2 lakh stressed MSMEs.
  • Approval for equity infusion of Rs. 50,000 crore for MSMEs through Fund of Funds (FoF). This will establish a framework to help MSMEs in capacity augmentation. This will also provide an opportunity to get listed in stock exchanges.

With today’s approval, implementation Modalities and Road Map for entire components of the Atmnirbhar Bharat Abhiyan package are in place. This will help in attracting investments and creating more jobs in the MSME sector.

In the aftermath of COVID-19 pandemic, Prime Minister Shri Modi was quick to recognise the role of MSMEs in building the Nation. As such, MSMEs formed a very prominent part of the announcements made under the Atmanirbhar Bharat Abhiyaan. Under this package, the MSME sector has not only been given substantial allocation but has also been accorded priority in implementation of the measures to revive the economy. To provide immediate relief to MSME sector, various announcements have been made under the Package. The most important ones also included:

  • Rupees Three lakh crore collateral-free automatic loans for MSMEs to meet operational liabilities, buy raw material and restart businesses.
  • Revision of MSME definition to render maximum benefits to the sector;
  • Disallowing global tenders in procurements uptoRs. 200 crores- to create more opportunities for domestic players,
  • And clearing of MSME dues by the Government and Public Sector Units within 45 days.

Government of India has been taking all necessary steps to ensure that the benefit of these landmark decisions reaches to the MSMEs at the earliest. In this regard, following necessary policy decisions have been already taken and the implementation strategy has been put in place.

  • The scheme for Rs. Three lakh crore col lateral-free automatic loans was earlier approved by CCEA and has been formally launched.
  • Modalities have been worked out for Upward revision of MSME Definition making it more inclusive broad-based providing greater avenues to MSMEs to harness their potentials.
  • Similarly, amendments in General Financial Rules mandating no global tenders for procurement upto 200 crore have been carried out. The new rules have already been issued and effected. This will open up new business avenues for Indian MSMEs.
  • To ensure that MSME payments are released within the timeframe of 45 days, directions have been issued at the level of Cabinet Secretary, Expenditure Secretary and Secretary, MSME.
  • To further ease the burden on MSMEs, RBI has extended moratorium on repayment of loans for another three months.

To manage all this, a robust ICT based system called CHAMPIONS has also been launched by the Ministry of MSME. The portal is not only helping and handholding MSMEs in the present situation, but is also providing guidance to grab the new business opportunities and in the long run, become national and international Champions.

MSME Ministry is committed to support the MSMEs, and the people who depend on them. All efforts are being made to encourage MSMEs to take benefit of the initiatives under the Atmanirbhar Bharat package and our other schemes.

Background:

Micro, small and Medium Enterprises (MSMEs) popularly called as MSMEs are the backbone of Indian economy. Silently operating in different areas across the country, more than 6 crore MSMEs have a crucial role to play in building a stronger and self-reliant India. These small economic engines have a huge impact on the country’s GDP-making a contribution of 29 percent. They contribute to almost half of exports from the country. Additionally, more than 11 crore people are employed in the MSME sector.

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Extension of repayment date for short term loans for agriculture and allied activities by banks

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to extend repayment date upto 31.08.2020 for Standard Short-Term loans upto Rs.3 lakh advanced for agriculture and allied activities by banks, which have become due or shall become due between 1st March, 2020 and 31st August, 2020 with continued benefit of 2% Interest Subvention (IS) to Banks and 3% Prompt Repayment Incentive (PRI) to farmers.

Benefit:

Extension of repayment date upto 31.08.2020 for Standard Short-Term loans upto Rs.3 lakh for agriculture and allied activities by banks falling due between 1st March, 2020 and 31st August, 2020 with continued benefit of 2% IS to Banks and 3% PRI to farmers, shall help the farmers to repay/renew such loans upto the extended repayment date of 31.08.2020 at 4% p.a., interest without attracting any penalty and thus help them in avoiding travelling to banks for such renewal during this COVID pandemic period.

Background

Govt. is providing concessional Standard Short-Term Agri-loans to farmers through banks with 2% p.a, interest subvention to banks and 3% additional benefit on timely repayment to farmers thus providing loans upto Rs,3 lakh at 4% p.a. interest on timely repayment.

In the wake of lockdown due to ongoing Covid 19 pandemic, there have been restrictions imposed on movement of people. Many farmers are not able to travel to bank branches for payment of their short term crop loan dues. Moreover, due to restrictions on movement of people, difficulty in timely sale, receipt of payment of their produce and the necessity of adhering to social distancing norms, farmers are finding it difficult to arrange the amount to be deposited for renewal and are unable to visit the banks to deposit and draw fresh loans.

Historic decisions for MSME sector, street vendors and farmers taken

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi met on Monday, 1st June 2020. This was the first meeting of the Union Cabinet after the Central Government entered into its second year in office.

During the meeting, historic decisions were taken that will have a transformative impact on the lives of India’s hardworking farmers, MSME sector and those working as street vendors.

Helping hand to MSMEs:

Micro, small and Medium Enterprises popularly called as MSMEs are the backbone of Indian economy. Silently operating in different areas across the country, more than 6 crore MSMEs have a crucial role to play in building a stronger and self-reliant India.

In the aftermath of COVID-19 pandemic, PM Shri Narendra Modi was quick to recognise the role of MSMEs in building the Nation. That is why MSMEs formed a very prominent part of the announcements made under the Atmanirbhar Bharat Abhiyaan. 

Under this package, the MSME sector has not only been given substantial allocation but has also been accorded priority in implementation of the measures to revive the economy. Implementation relating to several of the key announcements have been made already.

Today, Government of India has laid down the road map for effective implementation of other announcements under the Atmanirbhar Bharat Package too. These include:

  • Upward revision of MSME Definition. This is yet another step towards ease of doing business. This will help in attracting investments and creating more jobs in the MSME sector;
  • Proposal for provisioning of Rs 20,000 crore as subordinate debt to provide equity support to the stressed MSMEs has been formally approved by the cabinet today. This will benefit 2 lakh stressed MSMEs.
  • Proposal for equity infusion of Rs. 50,000 crores for MSMEs through fund of funds has also been approved by the Cabinet today.   This will establish a framework to help MSMEs in managing the debt-equity ratio and in their capacity augmentation. This will also provide an opportunity to get listed in stock exchanges.

Further upward revision of MSME definition:

The Government of India today decided for further upward revision of MSME definition. In the package announcement, the definition of micro manufacturing and services unit was increased to Rs. 1 crore of investment and Rs. 5 crore of turnover. The limit of small unit was increased to Rs. 10 crore of investment and Rs 50 crore of turnover. Similarly, the limit of a medium unit was increased to Rs 20 crore of investment and Rs. 100 crore of turnover. It may be noted that this revision was done after 14 years since the MSME Development Act came into existence in 2006. After the package announcement on 13th May, 2020, there were several representations that the announced revision is still not in tune with market and pricing conditions and it should be further revised upwards. Keeping in mind these representations, Prime Minister decided to further increase the limit for medium manufacturing and service units. Now it will be Rs. 50 crore of investment and Rs. 250 crore of turnover. It has also been decided that the turnover with respect to exports will not be counted in thelimits of turnover for any category of MSME units whether micro, small or medium.

Supporting our hardworking street vendors:

The Ministry of Housing and Urban Affairs has launched a Special Micro-Credit Facility Scheme – PM SVANidhi (PM स्वनिधि ) – PM  Street  Vendor’s AtmaNirbharNidhi,for providing affordable loans to street vendors. This scheme will go a long way in enabling them to resume work and earn livelihoods.

Over 50 lakh people, including vendors, hawkers, thelewalas, rehriwala, theliphadwala etc. in different areas/ contexts are likely to benefit from this scheme.

The goods supplied by them range from vegetables, fruits, ready-to-eat street foods, tea, pakodas, breads, eggs, textiles, apparel, footwear, artisan products, books/ stationaries etc. The services include barber shops, cobblers, pan shops, laundry services etc.

The Government of India is sensitive towards the problems they have faced in the wake of the COVID-19 crisis. In such a time, there is an urgent need to provide affordable credit to them to ensure their business gets a boost.

Urban Local Bodies will play pivotal role in the implementation of the scheme.

This scheme is special due to a number of reasons:

1- A historic first:

This is for the first time in India’s history that street vendors fromperi- urban/ rural areas have become beneficiaries of an urban livelihood programme.

The vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year. On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on six monthly basis. There will be no penalty on early repayment of loan.

The scheme provides for escalation of the credit limit on timely/ early repayment of loan to help the vendor achieve his ambition of going up on the economic ladder.

It is for the first time that MFIs/ NBFCs/ SHG Banks have been allowed in a scheme for the urban poor due to their ground level presence and proximity to the urban poor including the street vendors.

2- Harnessing technology for empowerment:

In line with the Government’s vision of leveraging technology to ensure effective delivery and transparency, a digital platform with web portal/ mobile app is being developed to administer the scheme with end-to-end solution. The IT platform will also help in integrating the vendors into the formal financial system. This platform will integrate the web portal/ mobile app with UdyamiMitra portal of SIDBI for credit management and PAiSA portal of MoHUA to administer interest subsidy automatically.

3- Encouraging digital transactions:

The scheme incentivises digital transactions by the street vendors through monthly cash back.

4- Focus on capacity building:

MoHUA in collaboration with State Governments, State Missions of DAY-NULM, ULBs, SIDBI, CGTMSE, NPCI and Digital Payment Aggregators will also launch a capacity building and financial literacy programme of all the stakeholders and IEC activities throughout the country during the month of June and loaning will commence in the month of July.

Igniting the spirit of Jai Kisan:

For the Kharif season 2020-21, the government has kept its promise of fixing the MSP at a level of at least 1.5 times of the cost of production. Today, the MSP of 14 crops for the Kharif season 2020-21 has been announced, based on the recommendation of CACP. The return over cost for theses 14 crops ranges from 50% to 83%.

The Government of India has also decided to extend repayment date up to 31.08.2020 for all Short-Term loans up to Rs.3 lakh advanced for agriculture and allied activities by banks. Farmers will also get benefit of interest subvention and prompt repayment incentive.

The agricultural short-term loan due between 1st March 2020 and 31stAugust 2020 will continue to get benefit of 2% Interest Subvention (IS) to Banks and 3% Prompt Repayment Incentive (PRI) to farmers.

Government of India’s decision of providing such loans to farmers through banks @ 7% per annum, with 2% per annum interest subvention to banks and 3% additional benefit on timely repayment by farmers thus provides loans upto Rs.3 lakh at 4% per annum interest.

Interest Subvention Scheme (ISS) wasstarted toprovideconcessionalshort-term crop loansincludingloans availedthroughKisan Credit Cards tothefarmers. In the last few weeks, many farmers are not able to travel to bank branches for payment of their short-term crop loan dues. Hence the cabinet decision would help crores of farmers.

Caring for the poor the Government’s top focus:

The poor and vulnerable are at the top of the priorities of the Government led by the Prime Minister. During the Coronavirus pandemic, right from the day of announcement of the lockdown, the government has been sensitive to the needs of the poorest of the poor. This was seen in the announcement of the Pradhan MantriGaribKalyanYojana package on 26th of March 2020, within just two days of the start of lockdown.

From ensuring coverage of around 80 crore people with food security to direct cash transfers into the bank accounts of 20 crore women, from putting money into the hands of senior citizens, poor widows and poor Divyangs to front-loading of the PM-KISAN instalment to crores of farmers, steps were announced. These covered a wide range of vulnerable sections who would have borne the brunt of the lockdown if not for the immediate intervention of the government. Moreover, these were not mere announcements. Within days, assistance reached crores of people directly, either in cash or kind.

As part of the Atmanirbhar Bharat initiative, One Nation One Ration card, free food grains even for those without ration cards, a new affordable rental scheme for their housing and many more measures have been announced for the welfare of the migrant labourers.

Massive reforms were announced for farmer welfare, freeing farmers from the chains that bound them and giving their income prospects a significant boost. Along with this, more investments into farm infrastructure were proposed. Allied activities such as fisheries too received a financial package.

At every step, the Government of India has shown compassion and alacrity in serving the needs of the most vulnerable.

PM Modi Launches CHAMPIONS: Technology Platform to empower MSMEs

Prime Minister Shri Narendra Modi today launched the technology platform CHAMPIONS which stands for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength.

As the name suggests,the portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding.It is a real one-stop-shop solution of MSME Ministry.

This ICT based system is set up to help the MSMEs in present difficult situation and also to handhold them to become national and international champions.

Detailed objectives of CHAMPIONS:

  1. Grievance Redressal: To resolve the problems of MSMEs including those of finance, raw materials, labor, regulatory permissions etc particularly in the Covid created difficult situation;
  2. To help them capture new opportunities:  including manufacturing of medical equipments and accessories like PPEs, masks, etc and supply them in National and International markets;
  3. To identify and encourage the sparks:  i.e. the potential MSMEs who are able to withstand the current situation and can become national and international champions.

It is a technology packed control room-cum-management information system. In addition to ICT tools including telephone, internet and video conference, the system is enabled by Artificial Intelligence, Data Analytics and Machine Learning. It is also fully integrated on real time basis with GOI’s main grievances portal CPGRAMS and MSME Ministry’s own other web based mechanisms.The entire ICT architecture is created in house with the help of NIC in no cost. Similarly, the physical infrastructure is created in one of ministry’s dumping rooms in a record time.

As part of the system a network of control rooms is created in a Hub & Spoke Model. The Hub is situated in New Delhi in the Secretary MSME’s office. The spokes are in the States in various offices and institutions of MSME Ministry. As of now, 66 state level control rooms are createdand made functional. They are connected through video conference also in addition to the portal of Champions. A detailed standard operating procedure (SOP) has been issue to the officers and staff have been deployed and training has been conducted for them.

On this occasion, Minister of MSME and Road Transport and Highways Shri Nitin Gadakari was also present.

Pharmaceutical industry has an important role in Aatamnirbhar Bharat

The Commerce and Industry Minister Shri Piyush Goyal today interacted with the captains of the Pharmaceutical industry, and Office-bearers of the Pharma Associations, through the Video Conference. The meeting was attended by the Ministers of State Shri H.S.Puri and Shri Som Parkash, Secretaries of the Department of Commerce, and Pharmaceuticals, and Officers from Departments of Commerce, Pharmaceuticals and Health.

During his interaction, Shri Goyal lauded the pharma industry for making India proud, by rising to the occasion during the Covid crisis. He said that India has been recognized as the ‘Pharmacy of the World’, as over 120 countries got some essential medicines, during the last two months, including 40 of them getting them in the form of grant, free of cost. He said that during the crisis, the officials of DGFT, MEA, Health and DoP burnt midnight oil to ensure that the export consignments are delivered at the earliest. The whole world appreciated India’s gesture, and this has swelled India’s goodwill and reputation. He said that India had adequate production capacity and abundant stock of HCQ and PCM for its projected domestic requirements, and putting restrictions on their exports was to ensure that the medicines are made available to all the needy nations, and no unscrupulous element stocks them for unwarranted gains.

The Pharma industry received accolades from the Minister for their extra-ordinary performance, in ensuring that the Country did not face any type of shortage of medicines during this period.  Shri Goyal said that early announcement of the Lockdown helped the country in preventing and containing the scourge of pandemic, and also scaling up the health infrastructure and build capacity, besides generating awareness among the people about the precautions and preventive measures. He said that India has set an example, under the able guidance and leadership of the Prime Minister Shri Narendra Modi, in being pro-active in management of Covid-19, and also following it up with welfare and relief packages for mitigating its consequences.

Shri Goyal assured the industry that the Government will fully support the industry in its expansion, diversification and strengthening. He said that the industry has an important role to play in the Aatamnirbhar Bharat campaign. The country should become Aatmanirbhar in APIs as early as possible, as the government has taken a number of steps in this regard. It has already approved the scheme on Promotion of Bulk Drug Parks for financing Common Infrastructure Facilities in 3 Bulk Drug Parks. Also, Production Linked Incentive Scheme for promotion of domestic manufacturing of critical KSMs/Drug Intermediates and APIs in the country has been given a go ahead.

The Minister said that anti-dumping investigation process has been expedited. The Minister said that in case of ongoing bilateral FTAs, if any roadblock or unfair competition is being noticed, the Government may be informed and prompt remedial action will be taken. He said they should look at large untapped market in Eastern Europe and Russia. Calling upon a collaborative route in the R&D efforts, Shri Goyal said the Academicians, Universities, ICMR and private sector should join hands. Informing the gathering that the Government has decided to disinvest in certain Pharma PSUs, the Minister invited the Indian companies to use PSUs for plug and play model of manufacturing. The Minister assured the industry that all suggestions presented in the meeting will be quickly examined and wherever required, the inter-ministerial consultations will be completed at the earliest.

FREE MARKET CAPITALISM

The existence of a free market does not of course eliminate the need for government. On the contrary, government is essential both as a forum for determining the ‘rules of the game’ and as an umpire to interpret and enforce the rules decided on.

The debate over free market capitalism generally pits those in favor of economic regulation against those who believe markets are strongest when left to function without regulatory intervention.

One one side of the debate, regulatory advocates believe that free markets are inherently unstable, unequal, and prone to the traditional “business cycle” of booms and busts. Known as Keynesians in economic circles, these individuals believe that free markets need to be controlled by the government in the form of fiscal policy and monetary policy, in order to soften the impact of yhe business cycle and prevent painful recessions.

On the other end of the spectrum, free market economists argue that government interference in the economy is what causes the business cycle in the first place.

In practical terms this debate also pits those who believe the government is best suited to distribute economic resources through social programs and infrastructure projects against those who believe that unregulated private enterprises are best suited to stimulate progress and wealth growth. Central issues within this debate include the privatization of public resources or utilities, the legislative push and pull over regulatory oversight, and the outsize role that money plays in our political system.

Phased re-opening of all activities outside Containment Zones; Unlock 1 to have an Economic focus

Union Ministry of Home Affairs (MHA) issued new guidelines to fight COVID-19 and for phased re-opening of areas outside the Containment Zones, today.  The guidelines would come into effect from June 1, 2020 and would be effective till June 30, 2020.  The current phase of re-opening, Unlock 1, will have an economic focus. The new guidelines have been issued based on extensive consultations held with States and UTs. 

A strict lockdown was imposed throughout the country since March 24, 2020.  All activities were prohibited except essential activities. Subsequently, in a graded manner and keeping the overarching objective of containing the spread of COVID-19 in view, the lockdown measures have been relaxed.

Salient features of the new guidelines

Lockdown measures would continue to be implemented strictly in the containment zones. These will be demarcated by the State/ UT Governments, after taking into consideration the guidelines issued by the Health Ministry. Within the containment zones, strict perimeter control shall be maintained and only essential activities allowed. 

All activities that were prohibited earlier would be opened up in areas outside Containment Zones in a phased manner, with the stipulation of following Standard Operating Procedures (SOPs), to be prescribed by the Health Ministry:

Phase I (permitted to open from June 8, 2020)

  • Religious places and places of worship for public;
  • Hotels, restaurants and other hospitality services; and
  • Shopping malls. 

Health Ministry would issue SOPs for the above activities, in consultation with the Central Ministries/ Departments concerned and other stakeholders, for ensuring social distancing and to contain the spread of COVID-19.

Phase II

Schools, colleges, educational/ training/ coaching institutions etc., will be opened after consultations with States and UTs.  State Governments/ UT administrations are being advised to hold consultations at the institution level with parents and other stakeholders.  Based on the feedback, a decision on the re-opening of these institutions will be taken in the month of July, 2020.  MoHFW will prepare SOP for these institutions. 

Limited number of activities to remain prohibited throughout the country

  • International air travel of passengers;
  • Operation of Metro Rail; 
  • Cinema halls, gymnasiums, swimming pools, entertainment parks, theatres, bars and auditoriums, assembly halls and similar places; and,
  • Social/ political/ sports/ entertainment/ academic/ cultural/ religious functions/ and other large congregations. 
  • Dates for the opening of above activities would be decided in Phase III, based on assessment of the situation. 

Unrestricted Movement of Persons and Goods

  • No restriction on inter-State and intra-State movement of persons and goods.  No separate permission/ approval/ e-permit would be required for such movements.
  • However, if a State/ UT, based on reasons of public health and its assessment of the situation, proposes to regulate movement of persons, it would give wide publicity in advance regarding the restrictions to be placed on such movement, and the related procedures to be followed. 

Night curfew would continue to remain in force, on the movement of individuals, for all non-essential activities.  However, the revised timings of the curfew will be from 9 pm to 5 am. 

National Directives for COVID-19 management would continue to be followed throughout the country, with a view to ensure social distancing.    

States to decide on activities outside Containment Zones

States and UTs, based on their assessment of the situation, may prohibit certain activities outside the Containment zones or impose such restrictions, as deemed necessary. 

Protection for vulnerable persons

Vulnerable persons, i.e., persons above 65 years of age, persons with co-morbidities, pregnant women, and children below the age of 10 years, are advised to stay at home, except for meeting essential requirements and for health purposes.

Use of Aarogya Setu

The Aarogya Setu mobile application is a powerful tool built by Government of India to facilitate quick identification of persons infected by COVID-19, or at risk of being infected, thus acting as a shield for individuals and the community.  With a view to ensure safety, various authorities are advised to encourage the use of the application.

Click here to see the MHA Guidelines

Credit benefit announced under the Aatamnirbhar package for the MSMEs

Minister of Commerce and industry Shri Piyush Goyal on Thursday met the representatives of traders associations, via video conferencing. He said that during the lockdown period, the nation geared itself to fight against the Covid-19 pandemic and built capacities. The domestic manufacturing of the protection equipment (like masks, sanitizers, gloves, PPE) got a boost, health infrastructure was scaled up, and awareness was generated among the people. He said that people responded to the Prime Minister’s call to work unitedly to face the unprecedented crisis, by adhering to the Government’s guidelines and directions. Aarogya Setu has been developed during the period, which acts as a shield, friend and messenger in such crisis. People changed their lifestyles and adapted quickly to live, work, study differently under the circumstances. Shri Goyal said that timely and correct decisions taken by the Prime Minister, and adhered to by the people, have helped the country, as we are in a better position compared to many other nations of the world, with more resources and lesser population. 

            Regarding some of the hardships being faced by the Retail traders even after the relaxations of the guidelines, the Minister said that a majority of shops have been allowed to be opened, without any distinction of essential and non-essential. The decision to open the remaining shops in the malls, will be taken soon, after taking into account the guidelines of the Health Ministry. He said that Aatmanirbhar package announced by the Union Finance Minister to fight Covid-19 provided for Rs 3 lakh crore credit guarantee for MSME, and it also covers traders. He said that the changes made in the definition of the MSME sector will also help them.  He said that the Finance Minister has also indicated that she has an open mind on finding solutions for the problems that may have remained unresolved. Shri Goyal told the retail traders not to feel threatened by the e-commerce juggernaut, as the Common person has now realized that the Brick and Mortar kirana neighbourhood shopkeepers only helped them in their hour of crisis. He said that the Government is working on mechanism to facilitate B2B for the retail traders and providing technical support to them to expand their reach. He said that under the Prime Minister Narendra Modi, the Government has taken transformational initiatives, which will help India become a strong nation. Regarding other problems of the trader community pertaining to term loans, Mudra loans and other issues, Shri Goyal said that the matter will be taken up with the finance ministry to find a solution. 

            The Minister said that several indicators show that the economic recovery is on the anvil. The power consumption this month is almost at par with the corresponding period last year, Oxygen production has come up. The Exports, which went down in April by almost 60%, have started showing upward trend, and the preliminary figures indicate decline this month will be smaller. The Services exports, on the other hand, went up even the last month. He indicated that more than the fall in merchandise exports, the imports showed sharper decline last month, lowering the trade deficit.

 The Minister said that during the last two months, the government has taken measures to ameliorate the hardships of the traders and Indian manufacturers, and in future also, will support them. He called upon the traders to use, promote and support the Indian goods. The Minister exhorted them to work with confidence, boldness and determination, and the success will be there to achieve.