Minimum Support Prices for Kharif Crops for 2015-16 season
Minimum Support Prices for Kharif Crops for 2015-16 season
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the Minimum Support Prices (MSPs) for Kharif Crops of 2015-16 Season. The decision is based on recommendations of Commission for Agricultural Costs and Prices (CACP) for the Price Policy for Kharif Crops for the Marketing Season 2015-16. CACP takes into account the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect of the Price Policy on the rest of economy, besides ensuring rational utilization of production resources like land and water, while recommending MSPs.
The CACP being the expert body, its recommendations are generally accepted as such. However, in view of a large surplus of cereals in contrast to huge deficit of pulses, the Cabinet made an exception and decided to give a bonus of Rs.200/- per quintal for pulses over and above the recommendations of the CACP. This is expected to give a strong price signal to farmers to increase acreage and invest for increase in productivity of pulses.
(Rupees per quintal)
The prices would be effective from 1.10.2015 and would increase investment and production through assured remunerative prices to farmers.
Various reports have shown that the Eastern belt of the country gets neglected in so far as procurement is concerned. Also, while the procurement mechanism is strong for rice and wheat, it needs to be improved for pulses and oilseeds. The Cabinet directed that the arrangements for procurement in the Eastern India be strengthened. The Cabinet also directed that a credible procurement mechanism for pulses and oilseeds be put in place if the need arises. Last week, a decision to import pulses was taken. These measures are expected to complement efforts to keep a check on the price rise in pulses.
Besides increase in MSP, Government has taken several farmer friendly initiatives over the last one year. These, amongst other things, include the following:
· A Scheme to issue Soil Health Card to every farmer has been introduced. Soil health management in the country is being promoted through setting up of soil & fertilizer testing laboratories and implementation of organic farming.
· A new Scheme, Pradhan Mantri Krishi Sinchai Yojana, has been launched with the objective of creating sources of assured irrigation.
· A dedicated Kisan Channel has been started by the Doordarshan to address various issues concerning farmers.
· An initiative is being taken to set up a National Agriculture Market (NAM). This would enable farmers to overcome the impediments in marketing of agricultural produce and get better price discovery. A common e-market platform is being created and would be provided free of cost to the States/UTs.
· Government is also encouraging formation of Farmer Producer Organisations.
· To help the farmers afflicted by natural calamities, assistance was increased by 50 percent. Further, norms were relaxed to provide assistance to farmers who suffered a loss of 33 percent or more from the previous norm of 50 percent or more loss.
Despite deficient rainfall of 12 percent during Kharif during 2014-15 and unseasonal rain and hailstorm in the Rabi season the total foodgrain production in the country has declined by only 5.3 percent in 2014-15. This reflects the resilience of Indian agriculture and success of their Government’s efforts in managing shortfall of rain in last kharif. This year also Government is fully prepared to meet contingency arising out of any shortfall in Monsoon. Contingency plans for 650 districts will be operationalised depending on progress of the Monsoon. ICAR, State Agriculture Universities and Department of Agriculture are working in close collaboration.
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Implementation of scheme for setting up over 2,000 MW of Grid-Connected Solar PV Power Projects with Viability Gap Funding (VGF) under Batch-Ill of Phase II of the JNNSM.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for setting up of over 2,000 MW of Grid-Connected Solar PV Power Projects on Build, Own and Operate basis by Solar Power Developers (SPDs) with Viability Gap Funding (VGF) under Batch-III of Phase-II of the Jawaharlal Nehru National Solar Mission (JNNSM).
This would help in:
o Creation of additional 2000 MW capacity of Grid-connected solar PV power generation projects.
o Employment generation of about 12,000 people in rural and urban areas.
o Reduction of about 3.41 Million T of CO2 emissions into the environment every year.
The total investments expected under this scheme is about Rs 12,000 crore. The estimated requirement of funds to provide VGF for 2,000 MW capacity solar projects is estimated to be Rs. 2100 crore [Rs 1 crore / MW for open category and Rs 1.31 crore / MW for Domestic Content Requirement (DCR) Category]. This includes handling charges to SECI @ 1 percent of the total grant disposed.
The phasing of investment is estimated as under:
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Year Amount (Rs. Cr.)
2016-17 1000
2017-18 260
2018-19 210
2019-20 210
2020-21 210
2021-22 210
Total 2100
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The tenders will be State-specific based on the demand from particular State. States/Union Territories/Discomes/State Utilities are the beneficiaries. This will also facilitate to create employment and infrastructure in the States. Installation of 2000 MW Solar PV plants will generate about 3,320 Million Units per year, which caters power to almost one Million Households.
The Viability Gap Funding (VGF) scheme will be implemented for setting up over 2000 MW capacity of grid connected solar power projects by solar power developers on Build, Own and Operate basis through open and transparent competitive bidding to provide solar power at a pre-defined tariff of Rs. 5.43 per kWh for the first year, with escalation of 5 paisa per kWh each year till the tariff reaches the level of Rs. 6.43 per kWh. This would take 21 years and the tariff, thereafter, would remain fixed at Rs. 6.43 per kWh. The levelized tariff would be Rs. 5.79 per kWh. The overall effort is to continuously reduce Government financial support for grid connected solar power as the prices of solar power comes down.
The Scheme will be implemented by Solar Energy Corporation of India (SECI) as per Ministry of New and Renewable Energy (MNRE) Guidelines. Solar Energy Corporation of India (SECI) shall prepare necessary bidding documents for inviting the proposals for setting up of projects on a competitive bidding through e-bidding. SECI will enter into Power Purchase Agreement (PPA) with the selected developers and the Power Sale Agreement (PSA) with the buying entities.
Requisite funds for provision of the VGF support will be made available to MNRE from the National Clean Energy Fund (NCEF), operated by Ministry of Finance.
Out of 2000 MW, 250 MW will be developed with mandatory condition of solar PV cells and modules made in India. This will be called the DCR category and remaining 1,750 MW will be in open category. Some other important features are as follows:
a) Project Locations: Projects could be set up in the Solar Parks being developed under a separate MNRE Scheme and also at other locations, which could be selected by bidders on their own.
b) Commissioning period would be 13 months from the date of signing of PPAs.
c) The VGF is to be disbursed in six trenches; 50 percent after commissioning and balance 50 percent at the rate of 10 percent at the end of each year subsequently for the next 5 years,
d) Tenders will be State-specific based on the demand from particular a State.
e) Due to competitive bidding, there may be savings in the VGF amount of Rs 2100 crore. In that case, the total capacity will be increased from 2000 MW, so that, maximum capacity can be set up in the VGF of Rs 2100 crore after accounting for grant to be given for payment security mechanism.
f) Bidders will be free to avail fiscal incentives like Accelerated Depreciation (AD), concessional customs and excise duties, tax holidays, etc. available for such projects. However, no bidders will be allowed to claim both AD and VGF.
Background:
The Jawaharlal Nehru National Solar Mission (JNNSM) was launched in January 2010 by the Government of India with a target to setup 20,000 MW of grid connected solar power by 2022.
In addition to Government of India, several States have taken initiatives and come out with solar policies to support setting up solar power projects. Amongst others Andhra Pradesh, Karnataka, Tamil Nadu, Telangana, Uttar Pradesh and Uttarakhand have come out with tenders for procurement of solar power recently.
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Four laning of Amravati-Chikhli, Chikhli-Fagne and Fagne-Gujarat/Maharashtra border section on national highway NH-6 in Maharashtra
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for development of the four laning of the 'Amravati-Chikhli, Chikhli-Fagne and Fagne-Gujarat/Maharashtra border' section of National Highway NH-6 in Maharashtra. This is under the National Highways Development Project (NHDP) Phase IV in BOT (Toll) mode on Design, Build, Finance, Operate and Transfer (BOT/DBFOT) basis. The total project cost (TPC) estimated of the project for implementation under DBFOT pattern will be as follows:-
The project is covered in the region of Amravati-Chikhli-Fagne-Gujarat/ Maharashtra border in Maharashtra.
The main object of the project is to expedite the improvement of infrastructure in the state of Maharashtra and also in reducing the time and cost of travel for traffic, particularly heavy traffic, plying between Amravati-Chikhli-Fagne-Gujarat/ Maharashtra border section of National Highway NH-6 in Maharashtra. Development of this stretch will also help uplift the socio-economic condition of this region of the State. It will also increase employment potential for the local labourers for project activities.
Background:
Earlier, the Public Private Partnership Appraisal Committee (PPPAC) in its meeting held on 09.03.2012 approved the four laning of two proposals i.e. (i) Amravati-Jalgaon and (ii) Jalgaon-Gujarat/Maharashtra border section of NH-6 on DBFOT basis in BOT (Toll) mode. This was approved by the erstwhile Cabinet Committee on Infrastructure (CCI) in its meeting held on 23.03.2012. Both projects were awarded to M/s L&T Infrastructure at the quoted premium of Rs. 131.04 crore and Rs. 145.08 crore respectively. The Concessionaire had fulfilled majority of its conditions precedent, but NHAI could not procure 80 percent of land after 380 days of signing of the Concession Agreement. Due to increase in cost, the Concessionaire expressed inability to continue the projects. Accordingly, the projects were terminated on mutual consent with forfeiture of bids security equivalent to one percent of Total Project Cost (TPC). Subsequently, it was decided to implement both projects by converting them into three packages which are as follows:-
i. Amravati-Chikhli - 194 km
ii. Chikhli-Fagne - 150 km
iii. Fagne-Gujarat/Maharashtra border - 140 km
PPPAC in its meeting held on 10.04.2015 then approved the four laning of these three packages section of NH-6 in Maharashtra under NHDP Phase IV on DBFOT basis in BOT (Toll) mode.
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Approval for inclusion of Uttarakhand, Jharkhand and Chhattisgarh under National Dairy Plan Phase - I and extension of project period by two years upto 2018-19
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for:
i. Inclusion of Uttarakhand, Jharkhand and Chhattisgarh in the list of States to be covered under the National Dairy Plan- I (NDP-I).
ii. Extended the implementation period upto 2018-19 in order to achieve key outputs of National Dairy Plan- I.
Jharkhand and Chhattisgarh are newly formed States which are primarily inhabited by tribal population having substantial milch animal population and have the potential for coverage under NDP I. Although Uttarakhand was not included for all the approved components under the scheme NDP-I, the Project Implementation Plan document (a part of EFC memo for NDP-I) included sub projects of Animal Breeding and Strengthening of Semen Stations for implementation in Uttarakhand. At present two projects, that is one on Progeny Testing and the other on Strengthening of Semen Station are under implementation. Considering the potential for implementation of Ration Balancing Programme, Fodder Development and Village Based Milk Procurement System, Uttarakhand has also been included under NDP-I; along with Jharkhand and Chhattisgarh.
Due to the time taken in initiating the implementation of sub projects at End Implementing Agencies (EIAs) level and late approval of NDP-I as mentioned above, it is envisaged that the key outputs of NDP-I as planned would be substantially achieved (e.g. bull production target, sustainability of Pilot AI (Artificial Insemination) Delivery services on full cost recovery basis etc.) with the period of NDP I having been extended up to 2018-19.
Background:
NDP-I was approved for implementation in 14 milk potential States by National Dairy Development Board (NDDB) through the EIAs with a total outlay of Rs. 2242 crore for a period of six years from 2011-12 to 2016-17. NDP I is now being implemented in 15 States (after Andhra Pradesh was bifurcated into Andhra Pradesh and Telangana) viz. Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal. This 15 states accounts for more than 90 per cent of the country’s milk production, over 87 per cent of the breedable cattle and buffalo population and 98 per cent of the country’s fodder resources. However, coverage of NDP I is across the country in terms of benefits accruing from the project.
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