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Press Information Bureau

Government of India

Date

December 12, 2018

Initiatives and Programmes of Niti Aayog during the year 2018

Year End Review 2018-NITI Aayog

INITIATIVES AND PROGRAMMES

(i)   Measuring performance and ranking States on outcomes in critical sectors

With emphasis on outcomes, NITI finalized indices to measure incremental annual outcomes in critical social sectors like health, education, water and Sustainable Development Goals (SDG).

The District Hospital Index was developed to measure and monitor the performance of hospitals with a focus on outputs and outcomes. A guidebook was released on World Health Day 2016. Presently, the implementation phase is underway in collaboration with MoHFW and the Indian Statistical Institute is assisting in data analytics.

NITI Aayog has developed the ‘Healthy States, Progressive India’ Report also known as the ‘Health Index’ in February 2018. The Composite Water Management Index was also launched in June 2018. The ‘School Education Quality Index (SEQI)’, ‘SDG India Index’ and the ‘Digital Transformation Index’ (DTI) which will measure states’ progress in respective sectors are in the works.

(ii) Sustainable Action for Transforming Human Capital (SATH)

SATH is aimed at initiating transformation in two key social sectors—education and health, by hand-holding States towards improving their social sector indicators and providing technical support over three years. It was launched with selection of states through an unique challenge method.  Roadmaps for State transformation have been finalised with quarterly milestones for each initiative.

A major school consolidation and integration programme has been initiated with over 26,000 schools merged for better efficiencies and utilisation of resources. Uttar Pradesh, Assam, and Karnataka were selected to improve their healthcare delivery and key health indicators. In education, Madhya Pradesh, Odisha, and Jharkhand were selected.

(iii) Ek Bharat Shrestha Bharat 

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EBSB was conceptualized to make our country united, strong and promote excellence in all walks of life by means of long-term inter-state engagements through cultural exchanges and education. MoUs were entered with six paired States/UTs. Dept. of Higher Education, MHRD continued the initiative.

Towards further integration, 100 commonly used conversational sentences throughout India were identified, translated into 22 Indian languages, compiled in a form of book and widely disseminated.

(iv) Development Support Services to States (DSSS) for Development of Infrastructure

To establish a Centre-State partnership model and reignite and establish Private Public Partnership across infrastructure sectors, DSSS was launched to de-risk projects and address key structural issues in project development and build institutional and organizational capacities.

Over 450 projects from 20 States were received, out of which 10 projects from 8 States in 10 sectors were shortlisted using the challenge method, for structuring and implementation.

(v) Public-Private Partnership in Health

To help States achieve the health goals of the government in the area of prevention, diagnosis and treatment of select Non-Communicable processes, viz. Cardiac Sciences, Oncology and Pulmonary Sciences, a guiding framework was developed for States, for implementation at the district hospital level, focusing on tier II/ tier III cities and by engaging services of private/voluntary sector providers.

A model concessionaire agreement was also launched in October 2018 along with the guidelines for promoting PPP in Healthcare.

(vi) Resolution of pending issues of States with Central Ministries

All pending issues with the Central Ministries from all States and UTs have been expeditiously resolved. Issues received from the States of Rajasthan, Himachal Pradesh, Bihar, Odisha and Puducherry have since been resolved.

(vii) State Human Development Report

The State of Maharashtra, Assam, Tamil Nadu, Gujarat, Karnataka, Nagaland, Bundelkhand region and Delhi were supported in the preparation of State Human Development Reports.

(viii) Transforming of 115 identified Aspirational Districts

To realise the vision of ‘SabkaSaath, SabkaVikas’, and ensure that India’s growth process remains inclusive, the ‘Aspirational District Programme (ADP)’ was launched by the Prime Minister on January 5, 2018. It is a special initiative to rapidly transform 115 identified districts that have shown relatively lesser progress in key social areas and have emerged as pockets of under-development, thereby posing a challenge to ensure balanced regional development.

Under ADP, 49 key performance indicators (KPIs) have been identified across such sectors with the aim to improving ease of living, as well as enhancing the economic productivity of citizens residing in these districts. Health and nutrition, education, agriculture and water resources, financial inclusion and skill development and basic infrastructure are main sectors where rapid transformation is envisaged.

On April 1, 2018, NITI Aayog released the baseline ranking of these districts from which the districts can ascertain their status in these sectors, and work to becoming the best district in the State and eventually the best in the country. To realise this vision, district teams have finalised district action plans, following the principle of convergence of efforts of the State and Central government. In addition, the ADP offers a unique platform for different segments of population as well as institutions like civil service organisations, private sector foundations, philanthropies etc.to come together and work with the State and central government to contribute to this important initiative of inclusive development.

An Aspirational Districts Dashboard has been developed, called ‘Champions of Change’, which captures real-time data and ranking across all indicators. The District Collectors/ Magistrates are providing self-reported data through this dashboard to capture progress.

PROMOTING INCLUSIVE GROWTH –GIVING FILLIP TO GOVERNMENT’S GOAL TO ‘SABKA SAATH, SABKA VIKAS’

  • New Guidelines have been issued to Ministry of Panchayati Raj for transparent and equitable allocation of funds amongst the States who were deprived of the central fund under the areas covered under sixth schedule of the Constitution.

 

  • To leverage the pivotal role of Panchayati Raj Institutions (PRIs), the expert committee constituted under the chairmanship of former Vice-Chairman, NITI Aayog recommended restructuring of the Rashtriya Gram Swaraj Abhiyan (RGSA).  RGSA has since became a centrally sponsored scheme from 2018-19 to 2021-22 to address the challenges faced by the States.

 

  • After discontinuation of planning and merger of Plan and Non-Plan Expenditure, new guidelines for earmarking of funds for SCs and STs in the new budgeting system have been prepared and forwarded to the Ministry of Finance for necessary action.

 

  • A report prepared on Revamping of Tribal Research Institutes (TRIs) to promote them as top class research institutes is being examined by NITI Aayog for further necessary actions.

 

  • Monitoring framework for SCSP and TSP has been developed and circulated to the nodal Ministries for online monitoring of SCSP andTSP.

 

  • Gaps in the National Policy for Persons with Disabilities, 2006 have been identified and forwarded to the department of Empowerment of Persons with Disabilities for revision of the Policy.

 

  • A concept paper:“Means of livelihood in LWE Areas: Prospects of Aroma, Honey, Dairying and other Traditional Industries” has been finalised and circulated to the concerned Central Ministries, States and other stakeholders for necessary actions.

 

  • The new NGO-Darpan Portal which went live in April 2017 was developed as a dynamic database of NGOs in the country, and for NGOs to obtain Unique ID to be eligible to apply for grants from any central Ministry/Department. 43,000 NGOs have already registered.

ENABLING EVIDENCE-BASED POLICY MAKING AND ENHANCING PRODUCTIVE EFFICIENCY WITH LONG-TERM VISION

(i) Three Year National Action Agenda and the Strategy for New India @75

NITI Aayog prepared a Three Year Action Agenda covering the period from 2017-18 to 2019-20. The Action Agenda framework allows better alignment of the development strategy with the changed reality of India.

Strategy document for India’s 75th year of independence coveringthe period 2017-18 to 2022-23 is being prepared by NITI Aayog.  It presents goals for 2022-23 as well as a way forward on how to achieve them and shall be launched soon.

(ii)   Reform of Central Public Sector Enterprises (CPSEs)

NITI Aayog in consultation with administrative ministries has made recommendations in four tranches for strategic disinvestment in PSUs. So far, based on NITI Aayog’s recommendations, more than 30 CPSEs have been approved by the Cabinet Committee on Economic Affairs for in-principle strategic disinvestment. The process of divestment is being carried out by DIPAM and the first transactions are expected in the current financial year after a long gap of 14 years.

A report was submitted to the Government on 74 sick/loss-making/non-performing CPSEs. The recommendations are under implementation and so far more than 15 CPSEs are undergoing closure.

(iii) Balanced Regional Development

  • Release of Special Funds: To promote regional development NITI Aayog recommended release of balance funds to States namely Odisha, Bihar and West Bengal under the Special Plan (BRGF-State component) approved during the 12th Five Year Plan period, and release of one-time special assistance to the States namely Assam, Meghalaya, Mizoram and Tripura for the areas covered under sixth schedule of the Constitution.

 

  • Development support to the North East: A Committee was constituted under the Chairmanship of CEO, NITI Aayog to examine and suggest a road map for a new industrial policy for the North Eastern and the Himalayan States. The Committee finalized its recommendations after having consultations with the NE States and other stakeholders. Based upon those recommendations, the Department of Industrial Policy and Promotion (DIPP) prepared North East Industrial Development Scheme (NEIDS) 2017, with an outlay of INR 3,000 crore up to March 2020, which was approved by the Cabinet in March, 2018.

 

  • NITI Forum for North East: It is the first ever regional forum constituted by NITI Aayog with representation from all the NE States and the concerned Central Ministries/Departments. This forum was constituted to identify various constraints in the way of accelerated, inclusive but sustainable economic growth in the North East Region of our country, and also to recommend suitable interventions for addressing the identified constraints. The forum also has eminent experts and reputed institutions (IIT, IIM, NERIST, RIS, RFRI etc.) as members.

 

  • Holistic Development of Islands:NITI Aayog has been mandated to steer the process of holistic development of identified islands as unique models of sustainable development. Accordingly, in consultation with key stakeholders, NITI Aayog has shortlisted 10 islands in the first phase. Final Site Potential Development Reports have been prepared for all the Islands. Carrying capacity of these islands have been determined and environmental zoning have been carried out to ensure sustainable development.  A Global Investor’s Conference was held in August 2018 to showcase Lakshadweep and Andaman & Nicobar Islands as hubs for self-sustaining eco-tourism projects, provide fillip to local employment and grow maritime economy.

 

  • Island Development Agency (IDA):The IDA was set up in June 2017 under the Chairmanship of the Home Minister of India, with the CEO, NITI Aayog as the Convener. It undertakes reviews on the progress relating to holistic development of identified islands. So far, three meeting of the IDA have been held. The last meeting of the IDA was held on 24th April, 2018.

 

  • UNDP Projects – GIS Based Planning:NITI Aayog has, identified the possibility of using the Geographical Information Systems (GIS) in the planning, management and monitoring of government service delivery, based on the innovative GIS model, “Village Profile and Talukka Planning Atlas” developed at BISAG Gujarat. BISAG is developing the customized software based on the actual requirement of             each State/UT separately. NITI Aayog organized the in-depth capacity development programme of State Officials at BISAG in November 2017 for customized State softwares prepared by BISAG.

 

(iv) Health & Nutrition Sector ReformsNITI has been initiating radical reforms in the health sector.

  • National Commission for Homoeopathy (NCH) Bill, 2017 and the National Commission for Indian Systems of Medicine Bill, 2017 have been finalized after extensive deliberations.

 

  • Evolving the National Nutrition Strategy: NITI formulated the National Nutrition Strategy through an extensive consultative process. The strategy provides the rationale and roadmap for policy makers to bring nutrition to the centre of the stage in India’s Development Agenda. It focuses on inter-sectoral convergence and identifies priority districts to tackle malnutrition and meet the country’s nutrition needs and targets.

 

  • Launch of the POSHAN Abhiyaan: The POSHAN Abhiyaan has been launched with the aim of improving nutrition outcomes in India in the next three years.download.png The National Council responsible for steering of the programme is anchored in NITI Aayog and is chaired by the Vice-Chairman, NITI Aayog. September 2018 was designated as the POSHAN Maah, a massive awareness and outreach campaign launched across the country to make nutrition a true janandolan.

 

  • Pushing Reforms in Pharmaceuticals Sector: NITI provided policy inputs for making available affordable drugs and devices.
  • National Institute for Pharmaceutical Education and Research(NIPER) – Evaluation of NIPERs was conducted and a way forward for pharmaceutical education suggested.
  • An ordinance was promulgated in September 2018 to establish a Board of Governors under the Chairmanship of NITI Aayog Member Dr V K Paul, to replace the Medical Council of India (MCI).

(v) Driving India’s Energy Sector

  • India Energy Security Scenario (IESS), 2047 was revamped in 2015 and was used to determine INDC targets. NITI also supported Andhra Pradesh, Gujarat and Assam for the “Development of State Energy Calculator”. On 16th November, 2017, Andhra Pradesh State Energy Calculator 2050 was launched while the other two states are ready with their respective first draft. In the second phase, three more states- Karnataka, Tamil Nadu and Maharashtra have been taken up.

 

  • In a stakeholder-driven, roadmap development exercise, NITI has prepared and launched a report on ‘India’s Renewable Electricity Roadmap 2030.’ The report summarizes the opportunities and barriers in the sector.

 

  • NITI Aayog had engaged Deloitte and PwC to prepare the state action plan (SAP) for re-integration in eight states. These SAPs have now been finalized.

 

  • Draft National Energy Policy (NEP) developed by NITI following large scale consultation with other departments and public feedback is being finalized.

 

  • NITI Aayog has developed the State Energy Index to measure the status and the efforts undertaken by the States towards ensuring accessibility and affordability, of energy, as well as gauging its sustainability and environment friendliness. The Index has been sent to concerned Central Ministries and to the States for their feedback and to start developing the same.

 

  • NITI Aayog is also developing a dynamic GIS Energy Map of India in collaboration with Indian Space Research Organization (ISRO). The consolidated energy map would provide requisite energy related information to all stakeholders which would help in better decision making.

CROSS SECTORAL INTERVENTIONS

  • Task Force on Employment and Exports: In September 2017, NITI Aayog constituted a high level Task Force under the chairmanship of Vice Chairman, NITI Aayog on employment and exports. The Task Force comprises senior secretary-level officials of the government of India and external experts. The Task Force has made several sector-wise recommendations to give an impetus to jobs and exports to the Union Minister of Commerce.

 

  • Rural Drinking Water – Rs 1000 crore was released for developing water resources in 19 arsenic and fluoride affected States for providing safe drinking water. More than 3100 arsenic/fluoride affected habitations of 14 States have been covered so far with safe drinking water.

 

  • Swachh Bharat Mission (SBM)The mission was launched on 2 October 2014. Since then then about 3.64 lakh villages, 385 districts and 13 States and 4 Union Territories have also declared themselves Open Defecation Free (ODF). Coverage of rural households with toilets has increased from 39% to 84%. The coverage of rural households with individual household latrines has more than doubled in the last four years. Some of the surveys conducted recently found that now more than 90% of rural households who have access to toilets are using them. In the urban areas, 100 per cent door to door collection of solid waste has been achieved in 62,436 out of 84,049 wards and 2,618 cities have declared themselves ODF out which 2089 cities have been certified as ODF by Ministry of Housing and Urban Affairs through third party verification.

 

  • Short-term measures for reforms – Recommendations have been made for short-term measures for reforms in higher education sector, including proposals for graded autonomy; reforms in accreditation framework and many more targeted recommendations to push for quality and remove out-dated regulatory aspects of UGC and AICTE. Ministry is in advanced stages of implementing these recommendations.

 

  • Providing Efficiency in Port EcosystemNITI drove the Port Ecosystem Efficiency movement through a series of inter-sector meetings. During the review, notable achievements were reported in cutting down delays in customs processing, loading of railway rakes in Jawaharlal Nehru Port Trust and documentation.

 

  • Working of 679 Autonomous Bodies under the Central Government reviewed and the draft report of Phase-I submitted to the Government while the Phase-II is under progress.

 

  • Recommendations to transform India’s gold market has been finalised and submitted to the Finance Minister.
  • Training and practice guide for the social sector – ‘Manual on Gender Inclusive Planning’ and ‘Manual for Social Audit’ has been published for use as training and practice guide for the Social Sector programme facilitators.
  • Strategy reports: Reports on strategies for ‘Self-reliance in critical and strategic resources of rare earths’ andfor effective utilisation and monitoring of ‘Fly Ash and Slag”.
  • Roadmap for revising the National Mineral Policy, 2018 to revitalise the growth of Mineral sector
  • A Challenge Method Guidelines for selection of sites for key Central Government assisted projects has been evolved.
  • Strategic Mobility Framework for tier 2 and tier 3 cities to improve public transport and non-motorised transport is being worked out by NITI Aayog.
  • A sub-group of 10 Chief Ministers on Skill Development was serviced by NITI Aayog which made recommendations for improving access, equity, relevance, quality and enhanced sources of finances. The Ministry of Skill Development is taking forward the key recommendations of the committee.
  • For management of water resources in the North Eastern Region, a high level Committee under Vice Chairman set up. Expert Committee also set up under CEO to examine policy for revitalisation of rivers.
  • The merger of 36 Tribunals to 18 Tribunals is being coordinated and implemented by NITI Aayog with all the concerned Ministries.      

INSTITUIONALISE PROJECT MONITORING TO IMPROVE IMPLEMENTATON AND EFFICACY OF GOVERNMENT SCHEMES

(i) Output Outcome Monitoring Framework 2018-19:

Given the increased focus on outcome-based monitoring, DMEO initiated an exercise to develop well-defined output and outcomes, along with measurable indicators, for all CS and CSS outlays.

The activity started by identifying all the relevant outlays, the number coming to around 600 CS/CSS outlays, covering a budget of about Rs. 8.14 lakh crore for the financial year 2017-18. These outputs, outcomes, and indicators were developed using a standardized process, which was based on international best practices in performance monitoring.

The resultant Output Outcome Monitoring Framework 2018-19 is going to be monitored through a newly developed web-based interactive dashboard. Ministries/Departments have been given access to the dashboard to upload achievement data. Work is in progress to enable the dashboard to automatically fetch performance data from the MIS of Ministries, expenditure details from PFMS, and to also have granular information i.e. State and District level data. Screenshots of the dashboard are given below.

(ii)  Sectoral Reviews by PMO:

As the Government moves towards realising the outcomes of a scheme or a sector, rather than just outputs, outcomes of 15 sectors are being monitored. While the reviews had been on-going for several years, in the last two years, they’ve moved from tracking physical progress to outcome progress. To facilitate this, an interactive dashboard was developed in 2016. For the 2017 PMO reviews, the sectors covered included Road, Railways, Airports, Ports, Digital India, Coal PNG, Power, NRE, Urban Housing, Rural Housing, and PMGSY. The screenshot of the dashboard is given below.

(iii) Outcome Budget

A dashboard for updating progress of Union Outcome Budget, 2017-18, was developed.  Ministries/Departments were given access to this dashboard to upload data.

(iv) Programme Monitoring and Evaluation

DMEO has, based on specific requests, undertaken monitoring and evaluation (M&E) for specific schemes. Following the paradigm shift from outlays to outcome-based governance, efforts have focussed on identifying expected outcomes, measuring progress on the same correctly, and analysing the bottlenecks in their achievement.

In this regard, a web-based interactive dashboard has been developed by DMEO to monitor the progress of houses being sanctioned and constructed under the Pradhan MantriAawasYojana (Rural and Urban). Screenshots of the dashboard are given below.

Additionally, evaluation of selected programmes that are currently being implemented has also been taken up, along with quick assessment studies in order to identify gaps in scheme implementation.

A quick assessment study was carried out for eNAM and submitted to PMO. Evaluation studies and quick assessment studies being finalized are: Prime Minister Employment Generation Programme, National Scheduled Caste Finance Development Corporation, RTE: Harmonized SarvSikshaAbhiyaan, PMAY (Urban), MGNREGA, Pradhan MantriKaushalVikasYojana, Swachh Bharat (Gramin), Pradhan MantriKrishiSinchayeeYojana (Integrated Watershed Management), Pradhan MantriFasalBimaYojana, BharatNet, and Pradhan Mantri Gram SadakYojana.

(v) Implementation and Monitoring Progress on Sustainable Development Goals (SDGs)

(a) In the light of the global SDG indicators endorsed by the UN Statistical Commission, the Ministry of Statistics     and     programme    Implementation (MoSPI)   has   developed   an   elaborate   list   of National SDG indicators. NITI Aayog is entrusted with the task of overseeing the implementation of SDGs in the country. A Task Force on SDGs has been constituted by NITI Aayog involving participation of Central      Ministries, State governments and think tanks to review the progress on implementation of SDGs.

(b) In order to facilitate better understanding and faster implementation, NITI Aayog has mapped out Central Ministries as well as centrally sponsored/central sector schemes and other government initiatives on the SDGs and associated targets. Many States/UTs have also conducted similar mapping of their departments, schemes and initiatives.

(c) NITI Aayog has held 21 National /Regional Consultations on SDGs with Central Ministries, States/UTs, CSOs, academia, international organisations and other stakeholders to improve awareness and coordination. Vice Chairman, NITI Aayog has presented India’s Voluntary National Review Report on the implementation of SDGs on 19th July 2017 at the United Nations High Level Political Forum in New York.

(d) NITI Aayog is developing a comprehensive SDG India Index comprising a set of indicators for measuring performance of States/UTs on SDGs. A dynamic national dashboard on SDGs is also being created to continuously monitor the progress on SDGs in the country.

(e) NITI Aayog CEO Amitabh Kant and the UN Secretary General Antonio Guterres signed the Sustainable Development Framework 2018-22 for India in October 2018.

(vi) Project Appraisal Wing of Govt. of India:

Since 1st January 2015, NITI Aayog has appraised 584 public funded projects with a total cost of Rs. 45,14,389 crore. In addition, 277 Public Private Partnership (PPP) projects with a total cost of Rs. 2,16,703 crore, including 229 Central sector projects and 48 State sector projects have also been appraised.

(vii) Monitoring of performance of Union Territories: Development of UT progress Tracker

NITI Aayog has developed the Dashboard, a progress tracker for Union Territories of India (UTs) to monitor and track the monthly progress of various developmental schemes/ projects/ initiatives of the government. The UTs feed the data, the Ministries verifyit and NITI Aayog/MHA monitor it on a monthly and quarterly basis. Currently, the tracker is monitoring the progress of 42 developmental schemes/ projects/initiatives. This monitoring has helped improve the delivery of services in UTs significantly. The URL is http://progresstracker.in/

       PARTNERSHIPS WITH NATIONAL AND INTERNATIONAL ORGANISATIONS AND PROMOTE STAKEHOLDER CONSULTATION IN POLICY MAKING

NITI has provided the platform to collaborate with national and international think tanks on wide-ranging areas. Through conferences, workshops and joint research projects NITI has enabled expert inputs in the policy making exercise of the government.

  • ‘SAMAVESH’, – a major initiative aimed at networking and partnership with knowledge and research institutions using a hub and spoke model was launched. Thirty four such Institutions have entered into a Memorandum of Understanding with NITI with the aim to share knowledge and link policy with practice.

 

  • Champions of Change – Two workshops of young CEOs and young entrepreneurs were organised to make policy making responsive to stakeholder consultation. This was a unique exercise held for the first time which saw Prime Minister along-with his senior Cabinet Ministers directly interacting with young influencers. The interaction centred around varied themes, viz. New India by 2022; Digital India reaching last mile; Education & Skills; Energizing a Sustainable Tomorrow; Health and Nutrition; and Soft Power Incredible India, Make in India; Doubling Farmers’ Income; World Class Infrastructure; Cities of Tomorrow and Reforming the Financial Sector.

 

  • Conferences organised to build consensus on critical issues relating to judicial systemA Global Conference on Arbitration was organised to discuss dispute resolution mechanisms in the country. Global Arbitration Review (GAR) Awards, the most prestigious arbitration award in the world, declared India as the winner in the category ‘Jurisdiction that has made great progress’. Anotherconference on balancing roles of the threewings of the State towards India’s Development,was organized in association with Law Commission of Indiaon the occasion of the National Law Day, 2017. In October 2018, a training-cum-brainstorming workshop on Best Practices in International Arbitration was organised.

 

  • In partnership with the Government of Singapore, NITI Aayog organized Capacity Building workshops for State urban leaders wherein about 200 officers from seven States attended different workshops in Delhi and Singapore. The Second Phase of the workshop was held in November 2018, with a focus on Water Management in Urban planning.

KNOWLEDGE AND INNOVATION HUB

One of the mandates of NITI is to maintain a state-of-the-art resource centre, be a repository of research on good governance and best practices in sustainable and equitable development, and to help in dissemination of knowledge to stakeholders. Several initiatives have been taken to develop the repository of knowledge:

  • Compendium on exhaustive set of case studies that reflect the best practices of States across all sectors: “States Forward: Best Practices from Our States”
  • Compendium “Skilling for Employability: Best Practices” highlighting best practices addressing challenges of equity, access, quality, relevance and finance by state governments, private sector & civil society was published by NITI.
  • The Good Practices Resource Book (2015) to consolidate the innovative work in social security, infrastructure, child protection and local governance.
  • A real-time knowledge portal to share best practices across sectors and States will be shortly launched. It is reflective of the spirit of cooperative federalism. The portal will give key government officials at State level, including District Magistrate, the right to upload best practices.

PROMOTE ENTREPRENEURIAL ECOSYSTEM

(i) Atal Innovation Mission

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  • Atal Innovation Mission is a flagship initiative of the Government of India, setup under the aegis of NITI Aayog, to promote innovation and entrepreneurship in the country. The programs in the first phase have established a network of innovation institutions, at the school and higher education levels.

Atal Tinkering Labs (ATLs)

  • Under its flagship program of establishing Atal Tinkering Labs (ATLs) at the high school level, AIM has selected 2400+ ATL schools across all states of India. On average, more than 300,000 school students have been engaged in ATLs, over 3500 innovations created, 1000 teachers trained, through multiple series of activities. Under the programme, students from Class VI onwards work with Robots, 3D printers, internet of things.
  • Additionally, 1500+ mentors in early and middle stages of their careers have been engaged on a voluntary basis to expose young innovators to 21st century skills. Some of the top performing Tinkering Labs participated at multiple external events including World Robotic Olympiad, Maker Faire, Nobel Prize series and several other robotic and technology innovation challenges across India. In fact, some of the tinkering labs are also winning innovation challenges at international level.

Atal Incubation Centres (AIC)

  • Under the Atal Incubation Centres (AIC) program, more than 100 institutions have been selected for setting up incubators around the country, in a mix of tier 1, 2 and 3 cities.  Startups incubated at the 19 AICs selected in the first round have already started showing examples of good growth and rapid progress, having created an estimated 6000 jobs in the last one year. Close to 10% of the 500+ startups have a focus on women’s empowerment. These incubators and their incubateestartups have won several awards at various fora, including two at the Economic Times Startup of the Year 2017.

Atal New India Challenges (ANICs)

  • A program titled Atal New India Challenges (ANICs) to support creation of tech products from existing patents and prototypes. In partnerships with five ministries, these challenges will reward innovators looking to develop technologies for Indian priorities in the areas of housing, transport, agriculture, and water and wastewater management. Over time, AIM will assist ministries to deploy these innovations in the field, and create pathways to bring more innovations into the mainstream operations.

Atal Innovation Mission is working at the grassroots level in different parts of the country, to help students and teachers transform into innovators, develop an entrepreneurial mindset, which will pave the way forward for developing a ‘New India’ by 2022.

(ii) Global Entrepreneurship Summit 2017: Women First: Prosperity for All

  • NITI hosted the GES 2017 at Hyderabad inNovember 2017. Itwas launched by the Prime Minister and the US Delegation was led by the Advisor to the US President Ms. Ivanka Trump. GES connected top entrepreneurship talent with investors and the start-up ecosystem across the globe to develop innovate solutions to the challenges facing the world. Over 2500 entrepreneurs, investors and speakers from over 150 countries participated in the 53 sessions held over three days with the theme‘Women First: Prosperity for all’.
  • In the run-up to GES, more than 50 events centring around entrepreneurship and innovation were organised in collaboration with various partner organisations all over the country. As a follow-up to GES it was announced that NITI Aayog would set up a Women Entrepreneurship Cell.

(iii) Women Entrepreneurship Platform

NITI Aayog launched the Women Entrepreneurship Platform (WEP), on the occasion of International Women’s Day, aimed at building an ecosystem for women across India. It aims to help women realize their entrepreneurial aspirations, scale-up innovative initiatives and chalk-out sustainable, long-term strategies for their businesses.

The portal http://wep.gov.in launched on the occasion, is an informative, interactive website that is also acts as a dedicated resource and knowledge base. WEP aims to address the bottlenecks faced by both aspiring and established women entrepreneurs by streamlining information across government and private sector schemes and initiatives.

CATALYSING REFORMS IN AGRICULTURE

In view of the goal of the government to double farmer’s income by 2022, a series of initiatives have been taken by NITI to usher in critical reforms in the agriculture sector. Some major initiatives are:

(i) Model Act on Agricultural Land Leasing, 2017

To recognize the rights of the tenant and safeguard interest of landowners NITI Aayog formulated a Model Agricultural Land Leasing Act, 2016 that would enable investment, technology, economy and employment in agriculture. Several States like Uttar Pradesh, Uttarakhand, Madhya Pradesh, Odisha, Karnataka, Telangana and Andhra Pradesh have either already adopted or have initiated work to amend their respective laws.

(ii) Reforms of the Agricultural Produce Marketing Committee Act

NITI Aayog in consultation with the Ministry of Agriculture, States and other stakeholders launched in February, 2017 the Model Agricultural Produce and Livestock Marketing Committee (APLMC) Act 2017. States are being asked to adopt the APMC Act.

(iii) Agricultural Marketing and Farmer Friendly Reforms Index:

NITI Aayog developed the first ever ‘Agriculture Marketing and Farmer Friendly Reforms Index’ to sensitise States about the need to undertake reforms in three key areas of agriculture market, land lease and forestry on private land (felling and transit of trees). The aim of the index is to induce healthy competition between States.

(iv) Pradhan Mantri Krishi Sinchayee Yojana:

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A roadmap for Pradhan MantriKrishiSinchayeeYojana was prepared and shared with the concerned Central Ministries/Departments, the States and other stakeholders.

(v) Price Deficiency Payments

Concept of price deficiency payments as an alternative to physical procurement of agricultural produce by the government under Minimum Support Price (MSP) has been proposed by NITI. Pilots are being proposed in Maharashtra and Madhya Pradesh for cotton and pulses, respectively.

(vi) Rejuvenating Fertilizer Sector

To achieve the aim of India becoming self-sufficient in the production of urea by 2022, NITI steered several committees for revival of new plants at Gorakhpur, Sindri, Barauni and Ramagundam, and selection of technology for Talcher plant. Pilot project of introduction of Direct Benefit Transfer (DBT) in fertilizer was successfully completed in several States and taken forward for implementation across all States.

(vii) Alternative Mechanisms for Implementation of Minimum Support Price (MSP):

Consequent to the announcement made under the Budget 2018-19, NITI Aayog has been tasked with developing alternative mechanisms for implementation of MSP for different agricultural crops. NITI Aayog, in consultation with the Central Ministries, States and other stakeholders, has laid down a mechanism comprising three options: Market Assurance Scheme, Price Deficiency Payment Scheme, and Private Procurement and Stockist Scheme.

(viii) TASK FORCE ON PILOTING BUSINESS MODEL FOR DOUBLING FARMERS’ INCOME

NITI Aayog has constituted a task force to develop a business model that will focus on the implementation of the pilot projects to demonstrate the doubling of farmer’s income. The initiative will promote 10 pilot projects in different agro-climatic regions of India, preferably through social entrepreneurs. The key principlesdriving the initiative are market driven approach, encouraging application of science and technology in agriculture production, minimizing farmer’s risks and using of modern business practices for value addition in agriculture sector.

PROMOTING ADOPTION OF FRONTIER TECHNOLOGY

(i) Promoting Digital India

NITI acted as the key driver of the digital payment movement post-demonetisation. It undertook an extensive advocacy and outreach programme to promote pan-India digital payment. A mass literary movement across Ministries, industry bodies, educational institutions and States was undertaken. 100 DigiDhanMelas were organised over 100 days in 100 cities. Undertaking information, education and communication to incentivize States/UTs,five crore Jan Dhan accounts were brought to digital platform. The Lucky GrahakYojana and the DigiDhanVyaparYojana schemes were also launched to promote digital payments across all sections of society. Over 16 lakh consumers and merchants won cashback rewards amounting to Rs. 256 crore under these two schemes.

NITI constituted a Committee of Chief Ministers on digital payments with Chief Minister of Andhra Pradesh, as the convener to make recommendations on promoting digital payments. Several of the recommendations of the interim report submitted to the Prime Minister in January 2017 have since been implemented.

NITI also promoted the development of the BHIM App to enable ease of digital payments, especially in remote areas.

NITI launched the Less-Cash Townships Scheme and based on third party verification. 75 townships certified as less-cash townships were where more than 80 percent of transactions within the townships were through digital mode. ThePrime Minister declared these as less-cash townships on April 14, 2017.

(ii) Shared, Connected and Clean Mobility Solutions

NITI has been extensively working on shared, connected and clean mobility solutions for the country to be adopted readily in smart cities. It came out with the report ‘India Leaps Ahead: Transformative Mobility Solutions for All’ and policy briefs on ‘India’s Energy Storage Mission: A Make in India Opportunity for Globally Competitive Battery Manufacturing’ and ‘Valuing Society First: an Assessment of the Potential for a Feebate Policy in India’.

EV Charging Stations were setup at NITI to provide charging services to electric vehicles.

NITI Aayog has formed six inter-ministerial committees in February, 2018 to decide on the matters and issues related to strategies to scale up transformative mobility.

The MOVE: Global Mobility Summit was held in September 2018. The focus of the summit was on raising awareness about various aspects of Mobility and bringing various stakeholders involved in enhancing mobility across different platforms. Representatives from various Intergovernmental Organizations, Academia, Policy Think tanks from India and abroad, Global leaders from across the mobility sector such as OEMs, Battery Manufacturers, Charging Infrastructure Providers, technology Solution Providers participated in the summit.

(iii) Adoption of frontier technologies in governance

Artificial Intelligence: NITI Aayog has been mandated to develop the National Program on Artificial Intelligence (AI) and assess their impact on India’s economy, society and governance. In order to understand the development, adoption and impact of these technologies, NITI is engaging with ministries, academia, industry, researchers and startups. Based on these, a draft discussion paper on National Strategy for AI is being prepared.

In partnership with IBM and ISRO, a pilot project to develop a crop yield prediction model using AI to provide real time advisory to farmers is being implemented in 10 aspirational districts across the States of Assam, Bihar, Jharkhand, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh. Similar pilot projects in the areas of healthcare and re-skilling in collaboration with various developers are being finalised.

A National Strategy on Artificial Intelligence was released in the month of June 2018, detailing core strategies and recommendations on promoting the use of AI in key areas of governance.

Blockchain: NITI is preparinga discussion paper on IndiaChain, a proposal on India specific infrastructural platform leveraging elements of India Stack such as Aadhaar, UPI and eSign. This paper will delineate the conceptual framework and architectural design of India Chain.

Projects under consideration where technical partners have been identified are pharmaceutical supply chain for identification of spurious drugs, fertilizer supply chain eliminating subsidy leakage and digitisation of land records.

To promote AI and Blockchain, NITI Aayog has entered into several collaborations with governments of other countries, State Governments, companies involved in developing AI and academic institutions.

(iv)Methanol Economy:

To reduce dependency on fossil fuel and to minimize imports, an apex committee and fivetask forces are working on a roadmap for implementation of methanol economy. Initiatives identified include production of methanol from high ash coal and municipal solid waste, storage, transportation and R&D on methanol engines. Minister of Shipping has decided use of methanol blended fuel for inland waterways transportation. Government is contemplating a ‘Methanol Economy Fund’ to promote indigenously-produced methanol that could reduce 10 percent of India’s crude oil imports, thereby reducing the fuel bill by around 30 percent by 2030.

(v) Roadmap for ‘Make in India’ in Body Armour:

A NITI Aayog committee has prepared a roadmap for making the body armour in India and submitted the same to the Prime Minister’s Office. The major recommendations made include, promotion of indigenous manufacturing of body armours including raw materials, creating more testing facilities, adopting Indian standards in body armours, setting up of Centres of Excellence to pursue R&D in nano-technology materials for lightweight body armours and simplification of the procurement process. All these initiatives would help in indigenous production of body armour and meet the requirements of defence, para military and security agencies. The PMO has accepted all the recommendations made in the report.

INTERNATIONAL ENGAGEMENTS

  1. 4th India-China Strategic Economic Dialogue (SED) was hosted by India under the co-chair of NITI Aayog and National Development & Reform Commission, People’s Republic of China on October 6-7th, 2016
  2. Energy Data Management meetings of US DOE-Energy Information Administration (EIA) with Indian Energy Ministries and Departments held on October 24-27th, 2016 in New Delhi.
  3. The NITI Aayog- Development Research Centre (DRC) Dialogue, People’s Republic of China was formalised in 2016, the Second edition and Third Edition of which was held in New Delhi in November 2016 and in Beijing in December 2017. The Fourth NITI-DRC dialogue was held in Mumbai in November 2018.

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Achievements of Ministry of Power during the year 2018

Year End Review 2018 – Ministry of Power

9 States achieve 100 % household electrification under Saubhagya; total 16 states have 100 % household electrification now

More than 2 crore electricity connections released under Saubhagya and 100 per cent village electrification achieved under DDUGJY

Energy deficit reduced to almost zero and India emerges as net exporter of electricity to Nepal, Bangladesh and Myanmar

31.68 crore LED bulbs distributed under UJALA scheme and 74.79 lakh LED street lights have been installed

India’s rank improved to 24 in 2018 from 137 in 2014 on World Bank’s Ease of doing business – “Getting Electricity” Ranking

Access to reliable and affordable energy supply is an important factor affecting the quality of life and economic development in any country. Therefore, the Government is committed to ensure 24*7 power supply for all by 31st March, 2019. Towards this goal, many important milestones have been achieved and the year 2018 has been historic for electricity reached every village on 28th April, 2018 under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY). Now focus is on electrifying every household under Saubhagya. With 9 states already reaching 100 % household electrification, this target will also be achieved well before its deadline.

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Several steps have been taken to reform and strengthen the power sector as a whole including power generation, transmission and distribution. These also include not only achievements in capacity addition but also important reforms being undertaken on increasing energy efficiency and increasing accountability and transparency by launching Mobile applications like PRAAPTI, Ash Track etc.

Year-long achievements for Ministry of Power 

SAUBHAGYA

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  • Launched for universal electrification in September, 2017
  • Camps organised at village level. Minimum documentation required
  • Special drive for economically weaker sections under Gram Swaraj Abhiyan
  • Over 2.1 crore households electrified since 11th Oct, 2017
  • 9 States have achieved 100% saturation in household electrification under Saubhagya namely Madhya Pradesh, Tripura, Bihar, J&K, Uttarakhand, Mizoram, Sikkim, Telangana and West Bengal.
  • Thus total 16 States in the country now have 100 % household electrification.
  • Many more State like Maharashtra, Manipur, Arunachal Pradesh, Chhattisgarh etc. are left with small number of un-electrified households and expected to achieve saturation any time.
  • Nation expected to achieve 100 % household electrification by 31st December, 2018

Achievement under Saubhagya during January to November 2018

  • Number of households electrified – more than 2 Crore

Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGKY)

Rural-Electrification-IE.jpg

  • 100 per cent village electrification achieved
  • Outlay of Rs. 75,893 crore
  • 2,58,870 km HT and LT lines
  • 4.10.146 distribution transformers

Generation capacity

  • Around 1,07,000 MW Generation Capacity has been added till October 2018 since April 2014.
  • All India Generation Installed Capacity has increased by 39.2% from 2,48,554 MW as on 31.3.2014 to 3,46,048 MW as on 31.10.2018.
  • India emerges as net exporter of electricity. 7203 MU supplied to Nepal, Bangladesh and Myanmar in FY 2017-18 and 4628 MU in current year 2018-19 (Upto October 2018).
  • Energy deficit reduced from 4.2% in FY 2013-14 to 0.6% in Current FY 2018-19 (Upto October 2018). Peak Deficitalso reduced from 4.5% in FY 2013-14 to 0.8% in Current FY 2018-19 (Upto October 2018).
  • Peak Demand Met has increased by 35.2% to 1,75,528 MW during the current year (April-October 2018) from 1,29,815 MW during same period in 2013-14.
  • Energy Availability has also increased by 35.2% to 764.627 BU during the current year (April-October 2018) from 565.698 BU during same period in 2013-14.

One Grid One Nation (Achievements till Oct, 2018)

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  • Expansion of transmission grid by 1,11,433 ckm from 2014-15 to 2018-19 (11,799 ckm added in FY 2018-19)
  • Transformation capacity addition of 3,38,202 MVA from 2014-15 to 2018-19 (41,790 MVA added in FY 2018-19)
  • 26 projects worth Rs. 48,426 crore awarded through Tariff Based Competitive Bidding from 2014-15 to 2018-19.
  • Inter-regional transfer capacity addition more than tripled from 16,000 MW in FY 2010-14 to 54,700 MW during FY 2014-15 to 2018-19 (4,200 MW added in FY 2018-19).

Integrated Power Development Scheme (IPDS)

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  • Outlay of Rs. 65,424 crore
  • 1378 towns IT enabled
  • 1900 additional towns under progress
  • Installation of 43,449 Km HT and LT lines completed out of the total 1,30,348 Km of awarded quantity
  • Installation of 28,193 distribution transformers completed out of the total 58,145 no. of awarded quantity

UDAY

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  • More than Rs.34,000 Crores interest cost saved by DISCOMs under UDAY within two years.
  • Reduction in AT&C losses in 22 States within two years of operation. AT&C losses have come down to 18.76% in FY18 as compared to 20.77% in FY16.
    Revenue gaps bridged by 72 per cent within two years operation of UDAY. The national level ACS-ARR gaps are at 17 paise/unit  in FY18 as compared to 60 paise/unit in FY16.
  • India’s rank improved to 24 in 2018 from 137 in 2014 on World Bank’s Ease of doing business – “Getting Electricity” Ranking.

Focus on North-East region

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  • Rs. 9865.75 crore projects in progress for strengthening / development of intra-state transmission & distribution systems in NER (including Sikkim).
  • Electrification of 6379 villages and intensive electrification of 9822 villages completed.
  • 130 towns IT enabled.
    • 68.76 lakh LED bulbs distributed under UJALA scheme
    • 99,895 LED streetlights installed under the SLNP scheme
  • Rs. 9866 crore projects undertaken for strengthening/development of intra-state transmission

4376 MW hydel capacity addition (FY 2014-18)

Energy Efficiency and Energy Conservaton

Unnat Jyoti by Affordable LED for All (UJALA)

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  • 31.68 crore LED bulbs distributed under UJALA scheme resulting in estimated cost saving of INR 16,457 crore per year, estimated energy savings of 41.14 billion kWh per year with avoided peak demand of 8,237 MW and GHG emission reduction of 33.32 million t CO2 per year.
  • 88 percent reduction in LED bulb procurement cost through demand aggregation

Street Lighting National Programme (SLNP)

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  • To replace 1.34 crore conventional streetlights with smart and energy efficient LED street lights by March, 2019.
  • 74.79 lakh LED street lights have been installed resulting in estimated energy savings of 5.02 billion kWh per year with avoided peak demand of 837 MW and GHG emission reduction of 3.46 million t COper year

The current progress of implementation of the National LED programme since its launch on 5th January 2015 is as follows:

Parameters UJALA SLNP
No. of LED bulbs distributed/Streetlights installed 31.68 crore 74.79 lakh

 

Estimated energy saved per year 41,142 million kWh 5,023 million kWh
Avoided peak demand/avoided capacity 8,237 MW

 

837 MW

 

GHG emission CO2 reductions per year 33.32 million t CO2 3.46 million t CO2

Transport Sector

National E-Mobility Programme launched to provide an impetus to the entire e-mobility ecosystem including vehicle manufacturers, charging infrastructure companies, fleet operators, service providers, etc.

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  • No licence required for charging stations
  • Procurement of 10,000 e-cars concluded for Government institutions
  • 902 e-cars have been deployed/under registration

BEE Star Labelling

  • The Chiller Star Labelling Program has been launched by Bureau of Energy Efficiency (BEE) to encourage the deployment of Energy Efficient chiller systems. The program envisages providing star rating in terms of its energy performance. Initially, the program is launched on voluntary basis and will be valid upto 31′ December 2020.
  • LED and inverter AC have been notified under mandatory regime. Star labelling program for Variable speed Air Conditioners and LED lamps were notified in mandatory domain during the year 2017. The implementation of the same has begun w.e.f 1st January, 2018.
  • Star labelling program saved energy worth INR 22,500 crore during the year 2017-18

Industrial Energy Efficiency

  • Energy efficiency measures through PAT in large industries saved energy worth Rs. 9500 crore annually.
  • Notification of PAT cycle IV for 846 DCs from 13 sectors has been issued

Building Energy Efficiency

  • Energy Conservation Guidelines launched for large scale industries to promote equipment efficiency by reducing energy consumption with the help of standardizing the energy performance values of various energy-consuming equipment and systems deployed for the manufacturing process.

Digital initiatives

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  • Enabling payments through NPCI platforms such as BHIM, BBPS, Bharat QR etc. More than 24 crore digital transactions in FY 2017-18 for electricity bill payments.
  • To bring transparency and to disseminate information to public at large following Apps are launched by the Ministry of Power:

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  • PRAAPTI: A Web portal and an App namely PRAAPTI (Payment Ratification And Analysis in Power procurement) for bringing Transparency in Invoicing of generators), www.praapti.in, has been officially launched.
  • Ash Track– linking fly ash users and power plants for better ash utilisation. A Web based monitoring System and a Fly Ash mobile application named ASH TRACK. These platforms will enable better management of the ash produced by thermal power plants by providing an interface between fly ash producers (Thermal Power Plants) and potential ash users such as – road contractors, cement plants etc.

Fighting pollution:

  • Ministry of Power has issued a policy to use 5-10% of biomass pellets along with coal for power generation in thermal power plants.
  • To promote use of the Biomass pellets, the Central Electricity Authority (CEA) has written to all Central/State Utilities, State Governments, Power Equipment Manufacturers/Integrated Power Producers/Generating Companies that all fluidized bed and pulverized coal units of power generating utilities (coal based thermal power plants) except those having ball and tube mill, shall endeavour to use 5-10% blend of Biomass pellets made, primarily, of agro residue along with coal after assessing the technical feasibility, viz., the safety aspects etc.

Reforms

  • In order to encourage Renewable Generation, Ministry of Power extended the waiver of ISTS Transmission charges and losses for Solar and Wind based Projects upto March 2022.

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  • In order to achieve the Renewable target of 1,75,000 MW of Renewable capacity by 2022, MOP issued Long Term Growth trajectory Renewable Purchase Obligation (RPO) for Solar as well as Non-Solar till the year 2022.
  • With the aim of promoting renewable generation and reduction of emission, MOP issued a scheme on Flexibility in generation and scheduling of Thermal Power Stations to reduce emissions.
  •  MoP has issued a direction to the CERC under section 107 of the Electricity Act, 2003 on 30th May, 2018 for implementation of new Environmental Norms for Thermal Power Plants suggested by MOEF&CC.
  • In order to reduce the overall cost of generation as well as cost of power to consumer (Company level merit order operation), MOP issued a scheme on Flexibility in generation and scheduling of Thermal Power Stations to reduce cost of power to consumers.
  • In our endeavor for revival of the stressed assets, a Pilot Scheme was introduced by MOP in April 2018 to facilitate procurement of aggregated power of 2500 MW for 3 (three) years (covered under medium term) from the generating companies having coal based Power Plants which are already commissioned without having a power purchase agreement for the quantum of power the Bidder is willing to bid.
  • Major reform initiatives are being taken by Ministry of Power which includes addressing various issues being faced by electricity sector through draft amendments proposed in Electricity Act 2003 and Tariff Policy, 2016. Draft amendments to Electricity Act were circulated for stakeholder comments on 7.9.2018 and draft Amendments to Tariff Policy were circulated for Stakeholder comments on 30.5.2018.

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Achievements of Ministry of Petroleum & Natural Gas during 2018

Year End Report 2018: Ministry of Petroleum & Natural Gas

 

Under OALP Bid Round I, 55 Blocks having area of 59,282 sq. Km awarded; 


Second Bidding Round under DSF Policy offering 59 discoveries launched;


Development of additional 13500 Km long gas pipeline under way;


More than 5.83 crore LPG connections released under Ujjawala scheme;


Supply of BS-VI fuel commences in NCT of Delhi;


Remunerative price fixed for ethanol procurement based on raw material utilized for ethanol production

 

Energy is a key driver of economic growth and the Government’s focus has been to bring about transformational changes in the energy landscape of India to fulfil the twin objectives of energy justice and climate justice. The Petroleum and Natural Gas Ministry has endeavored to “Reform, Perform and Transform’ the sector. The government has taken several reforms and accomplished major task with far-reaching impacts in the sectors of Exploration and Production, Refinery, Marketing, Natural Gas and international cooperation.

Exploration & Production

A number of new initiatives have been taken in the last one year to promote Exploration and Production activities in the country. In a major policy drive to give a boost to petroleum and hydrocarbon sector, the Government has unveiled a series of policy reforms. Some of the notable Policy reforms are listed as under:

i. Hydrocarbon Exploration and Licensing Policy (HELP)/ Open Acreage Licensing Policy (OALP) – This is a paradigm shift from Production Sharing Contract (PSC) regime to Revenue Sharing Contract (RSC) regime based on the principle of ease of doing business. It provides for single License for exploration and production of conventional as well as non-conventional Hydrocarbon resources; Pricing and Marketing Freedom; reduced rate of royalty for offshore blocks, Open Acreage Licensing Policy that means option to select the exploration blocks without waiting for formal bid round. Expression of Interest can be submitted round the year and Bidding is carried out every 6 months.

Under OALP Bid Round I, 55 Blocks having area of 59,282 sq. Km have been awarded on 1st October, 2018. OALP Bid Round II with 14 blocks is in the offering.

ii.  Policy Framework to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas– The Government has approved the Policy framework to promote and encourage adoption of Enhanced Recovery (ER)/Improved Recovery (IR)/Unconventional Hydrocarbon (UHC) production Methods/techniques through fiscal incentives and an enabling ecosystem to improve productivity of existing fields and enhance overall production of domestic hydrocarbons. The Policy provides for systemic assessment of every field for its ER potential, appraisal of appropriate ER techniques and fiscal incentives to de-risk the cost involved in ER Projects and to make it economically viable.

iii. Discovered Small Field Policy (DSF) Policy, Round I & II – For early monetization of unmonetized discoveries of National Oil Companies (NoCs), Cabinet in September, 2015 approved 69 marginal fields for offer under Discovered Small Fields Policy. These contract areas are awarded under the new regime of Revenue Sharing Model. Award of contract is expected to provide faster development of fields and facilitate production of oil and gas.

The First bidding round under the Discovered Small Field Policy was launched on 25th May 2016, thereby offering 67 discovered small fields in 46 contract areas of ONGC and OIL for international bidding. Total 30 contracts for 43 discovered small fields were signed with 20 companies in March, 2017. It is expected that in-place locked hydrocarbons volume of 40 MMT oil and 22.0 BCM of gas will be monetised over a period of 15 years.

On 7th February, 2018, Cabinet has approved the Discovered Small Field Policy Bid Round-II, an extension of the Discovered Small Field Policy notified on 14.10.2015. Under DSF-II, 59 discovered small fields/unmonetized discoveries estimated to have 194.65 Million Metric Ton (MMT) Oil and Oil equivalent gas in place are offered for bidding.

The Second Bidding Round under DSF Policy offering 59 discoveries clubbed into 25 new Contract Areas was launched on 9th August, 2018.                       

iv.  National Seismic Programme of Un-appraised areas – The Government has taken up programme of undertaking 2D seismic survey of entire un-apprised areas. National Seismic Programme was launched on 12thOctober, 2016. Under the programme, Government has approved the proposal for conducting 2D seismic survey for data Acquisition, Processing and Interpretation (API) of 48,243 Line Kilo Metres (LKM).  The estimated cost of the project is Rs.2932.99 crore and the project is proposed to be completed by 2019-20.

As on 31st October, 2018, surface coverage of 28485 LKM, out of 48,243 LKM has been achieved under 2D Seismic data acquisition under National Seismic Programme.

v. Policy Framework for streamlining the working of the Production Sharing Contracts–  Under this Policy, Government has allowed  2 years  extension in exploration period  and  1 year in Appraisal period for operational blocks in NER besides allowing marketing including pricing freedom for natural gas produced in future in NER; sharing of the statutory levies including royalty & cess in Pre-NELP Exploration Blocks and to be cost recoverable with prospective effect; extending tax benefits under Section 42 of Income Tax, 1961 to operational blocks under Pre-NELP discovered fields prospectively.

vi. Re-assessment of Hydrocarbon Resources – A Multi Organisation Team (MOT) comprising of representatives of ONGC, OIL and DGH has carried out estimation of hydrocarbon resource potential in thecountry.  The prognosticated conventional hydrocarbon resources in 26 sedimentary basins of the country are of the order of 41.87 billion tones (oil and oil equivalent of gas), which is about 49% increase as compared to earlier estimates of 28.08 billion tones.

vii. Policy Framework for Exploration & Exploitation of Unconventional Hydrocarbons under Existing Production Sharing Contracts (PSCs), Coal Bed Methane (CBM) Contracts & Nomination Fields– Government has approved the policy to encourage the existing Contractors in the licensed/leased area to unlock the potential of unconventional hydrocarbons in the existing acreages. Under this policy, an area of 72,027 sq. km. held under PSCs and 5269 sq. km area under CBM contracts has been opened up for simultaneous exploration and exploitation of conventional or unconventional hydrocarbons.

Natural Gas

i. Natural Gas Grid

In order to promote the usage of natural gas as a fuel/feedstock across the country and move towards a gas based economy, the development of additional  13500 Km long gas pipeline is under way to complete the Gas Grid.  The status of major under-construction gas pipeline project is as under:

  1. Pradhan Mantri Urja Ganga Project (Jagdishpur – Haldia & Bokaro – Dhamra Pipeline Project (JHBDPL)):The 2655 km. pipeline project is being executed at an investment of Rs.12,940 Crore, which includes 40% capital grant (i.e. Rs.5,176 Cr) from the Government of India and the project is scheduled to be completed progressively by December, 2020. JHBDPL will cater to the energy requirements of five states, namely Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal. Construction work on Section 1 of JHBDPL project (770 Km) is at advanced stage and the same is expected to be commissioned shortly. Part pipeline section upto Varanasi has been operationalized to commence gas supply for Varanasi City Gas Distribution (CGD) network. Further line pipe procurement and pipe laying work for balanced section (except West Bengal) has also been awarded and construction is in progress.
  2. Barauni to Guwahati Pipeline: To extend the Gas Grid upto North East, development of a 729 Km long pipeline from Barauni to Guwahati has been allowed as an integral part JHBDPL project. This pipeline will pass through the Bihar, West Bengal, Sikkim & Assam .Pipe procurement and laying work tenders are under progress. This project is scheduled to be commissioned by December 2021.
  3. North East Region(NER) Gas Grid: To further extend the gas grid to each states of North-East and Sikkim, a Joint Venture (JV) company, named as Indradhanush Gas Grid Ltd, has been formed by five Oil & Gas Central Public Sector Undertakings (CPSUs) i.e. IOCL, ONGC, GAIL, OIL, & NRL on 10.08.2018. This JVC will develop NER Gas Gird of about 1656 Km long in all North Eastern States i.e. Assam, Sikkim, Mizoram, Manipur, Arunachal Pradesh, Tripura, Nagaland and Meghalaya in a phased manner at the total cost of about Rs. 9265 Crore.  PNGRB has also issued provisional authorization to IGGL on 14.09.2018 for the development of North-East gas pipeline grid.  On completion, NER grid will ensure uninterrupted availability of natural gas across the region and boost industrial growth in the region.
  4. Kochi-Koottanad-Bangalore-Mangalore Pipeline (Phase-II)GAIL is developing 872 km long pipeline at the investment of Rs 5150 Crore in the State of Kerala & Tamilnadu. Construction work in the State of Kerala is at advanced stage and is expected to be completed by mid of 2019. Further, pipeline laying work to connect Tamilnadu has also been commenced and work is under progress.
  5. Ennore-Thiruvallur-Bengluru-Puducherry-Nagapatinam-Madurai-Tuticorin Pipeline (ETBPNMTPL):Indian Oil is developing a 1385 Km pipeline at the investment of Rs. 4497 Crore. This pipeline will pass through the State of Tamilnadu, Andhra Pradesh & Karnataka. Part section (Ennore-Manali & Ramanad-Tuticorin) laying work is under progress. Further, award for pipe and laying work for the remaining pipeline sections are under process.
  6. Other gas pipeline projects to complete the Gas Grid are also at various stages of implementation and are being executed in phased manner.

ii.  City Gas Distribution (CGD) Network

To make available natural gas to public at large, Government has put strong emphasis on expansion of City Gas Distribution (CGD) network coverage across the country. CGD networks ensures the supply of cleaner fuel (i.e. PNG) to households, Industrial & commercial units as well as transportation fuel (i.e. CNG) to vehicles. Till 2017, only 19% of the country’s population spreading over 11% of the country’s area was covered for development of CGDs in 96 Geographical areas. To boost the CGD sector, 9th CGD Bidding Round was launched in April, 2018 for 86 Geographical Areas (GAs) covering 174 districts in 22 States/ Union Territories of the country. 38 entities (Public and Private) participated in this round and submitted total 406 bids for all 86 GAs. As of now, 84 GAs has been authorized to the successful bidders for the development of CGD networks. Hon’ble Prime Minister, on 22nd November 2018, has laid the foundation stone for the development of CGD projects in 61 newly authorized GAs covering 129 districts spreading over 17 States/UTs as well as launched the next round (10th) of CGD bidding for 50 GAs. With the conclusion of 10th round, it will expand the coverage of CGD networks to about 70% country’s population spreading over 50% of India’s area. The growth of CGD coverage has potential to attract total investment of more than Rs 1,20,000 Crore in gas value chain with generation of about 3 lakh employment opportunities in coming years.

iii.  Liquid Natural Gas (LNG) Re-gasification

To meet the increased gas demand in the country, different entities are importing Liquefied Natural Gas (LNG) from global gas markets. The import of LNG is being carried out at existing four (4) LNG terminals which have regasification capacity of about 26.3 MMTPA (~ 95 MMSCMD). The terminal-wise details and their expansion plans are as under

Location

Owner Capacity

(MMTPA)

Dahej

PLL

15

Hazira

SHELL

5

Kochi

PLL

5

Dhabol*

GAIL

1.3

Total Capacity  (MMTPA)

26.3

(*Name plate capacity is 5 MMTPA but in absence of the breakwater, the terminal can only operate at 1.3 MMTPA)

On 30th September, 2018, Hon’ble Prime Minister inaugurated the Mundra LNG project which has been developed by GSPC LNG Limited. This terminal has the capacity to handle 5 MMTPA of LNG. In addition, two new LNG terminals of 5 MMTPA capacity each located at Ennore (Tamilnadu) and Dhamra (Odisha) are also under development at present.

Marketing

  1. Pradhan Mantri Ujjwala Yojana (PMUY)

In order to provide clean cooking fuel LPG to BPL households in the country, theUJWAL-GAS.jpg Government has launched “Pradhan Mantri Ujjwala Yojana”(PMUY) scheme to provide to provide 5 Crore deposit-free LPG connections to women belonging to the Below Poverty Line (BPL) families, which were subsequently increased to 8 Crore with a budgetary allocation of Rs. 12800 crore. Beneficiaries are identified through Socio Economic Caste Census (SECC) list and in case the names are not appearing in the SECC list, beneficiaries are identified from categories i.e. SC/STs households, beneficiaries of Pradhan Mantri Awas Yojana (PMAY (Gramin), Antodaya Anna Yojana (AAY), Forest dwellers, Most backward Classes (MBC), Tea & Ex-Tea Garden Tribes and people residing in Islands/ river islands.

The initial target of 5 crore connections was achieved well before the target i.e.31st March, 2019. As on 05.12.2018, more than 5.83 crore connections have been released under the scheme. Implementation of PMUY has resulted in significant increase in national LPG coverage, in general and Eastern States, in particular. The World Health Organization (WHO) has appreciated the efforts of the Government and termed it as a decisive intervention to check the indoor health pollution being faced by the women of the country.

  1. PAHAL

Government, as a measure of Good Governance, has introduced well targeted system of subsidy delivery to LPG consumers through PAHAL. The initiative of the Government was aimed at rationalizing subsidies based on approach to cut subsidy leakages, but not subsidies themselves.

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As on 06.12.2018, more than 23.08 crore LPG consumers have joined the PAHAL Scheme. PAHAL has entered into Guinness book of World record being largest Direct Benefit Transfer scheme. So far, more than Rs. 96,625 crore have been transferred into the bank accounts of consumers.

PAHAL has helped in identifying ‘ghost’ accounts, multiple accounts and inactive accounts. This has helped in curbing diversion of subsidized LPG to commercial purposes. So far, estimated savings due to implementation of Pahal is approximately Rs 50,000 crore.

  1. Automation at OMC ROs

To enhance customer confidence through Q&Q (Quality & Quantity) of fuel and minimizes chance of fraudulent transactions, this Ministry has given target to OMCs to automate all ROs across the country wherever feasible. As on 01.11.2018, 40354 ROs (70%) have been automated across the country.

  1. Promotion of Digital Payments Undertaken by MoP&NG

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There has been a significant expansion of digital payment infrastructure at retail outlets. As on 20.11.2018, 100876 POS terminals and 92408 e-wallet facility have been provided at 53717 (98%) petrol pumps across the country, 52959 retail outlets have been enabled with BHIM UPI. All the LPG Distributors and City Gas distribution companies are enabled with BHIM UPI.

  1. Retail Outlet Dealer Selection Advertisement Released

Expansion of retail outlet network (Petrol Pumps) is undertaken by Oil Marketing Companies primarily to meet the growing fuel needs and convenience of customers in emerging markets like upcoming highways, agricultural pockets and industrial hubs. The Retail Outlet network in Rural, remote and far-flung areas are also being expanded with the intention of reaching product,  ensuring quality and correct price to meet the rural agricultural demand and people living in remote areas. Additionally, the expansion of Retail outlet network is expected to generate employment opportunities also.

Oil Marketing Companies (OMCs) have issued advertisements for 55652 locations across thirty States inviting applications from prospective candidates for setting up of Petrol pumps on 25th November, 2018. Advertisements for the five Assembly poll bound States will be released after the model code of conduct is lifted.

For the first time, computerized “Draw of Lots”/”Bid opening” would be held under the aegis of an independent agency to bring in more transparency. All Retail outlets will be constructed with latest technology including automation.

Refinery

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Out of the 23 refineries operation in the country, 18 are in public sector, 3 are in private sector and two as a joint venture with a total refining capacity of 247.566 MMTPA. Out of the refining capacity of 247.566MMT, 142.066 MMT is in the public sector, 17.30MMT in joint venture and the balance 88.2 MMT is in the private sector. The country is not only self-sufficient in the refining capacity for its domestic consumption but also exports sufficient quantity of petroleum products.

Auto Fuel Vision and Policy

i.  Introduction of BS-IV & BS-VI fuels in the Country:

  1. Ministry of Petroleum & Natural Gas vide order dated 19.01.2015 has notified for implementation of BS-IV Auto Fuels in the entire country w.e.f. 01.04.2017 in a phased manner. Accordingly, BS-IV Auto Fuels has been implemented in the entire country w.e.f 01.04.2017.
  2. It has also been decided that the country will leapfrog directly from BS-IV to BS-VI fuel standards and BS-VI standards will be implemented in the country w.e.f. 01.04.2020.
  3. Considering the serious pollution level in Delhi, Government has commenced supply of BS-VI in NCT of Delhi w.e.f. 01.04.2018.

ii.  Ethanol Blended Petrol (EBP) Programme

For ethanol supply year 2018-19, the Government has fixed remunerative price for ethanol procurement based on raw material utilized for ethanol production as follows:

  1.  From C-heavy molasses at Rs. 43.46 per litre.
  2. From B heavy molasses / partial sugarcane juice at Rs.52.43 per litre.
  3.  Price of ethanol for the mills, who will divert 100% sugarcane juice for production of ethanol thereby not producing sugar, has been fixed at Rs.59.19 per litre. This price will be paid by OMCs to those sugar mills who will divert 100% sugarcane juice for production of ethanol thereby not producing any sugar. If a sugar mill produces ethanol with a combination of B heavy molasses and sugarcane juice, the ethanol price derived from B heavy molasses route shall be payable by OMCs.
  4. Further, the Government has also allowed production of ethanol from damaged food grains. OMCs are offering differential pricing of Rs. 47.13 per litre to incentivize this route.
  5. For the previous ethanol supply year 2017-18, the blending quantity of ethanol with petrol was 149.54 crore litres and the average blend percentage was 4.19 % which is the highest in the history of EBP Programm
  6.  Subsequent to amendment in Industries (Development & Regulation) Act, 1951, giving control on production, movement and storage of ethanol to the Central Government, Central Government has been regularly interacting with the State Governments and other stakeholders to resolve the bottlenecks in smooth implementation of EBP Programme. Till now, Nine States have already implemented the amended provisions.
  7. The proposal to reduce GST on denatured ethanol meant for EBP Programme was initiated by this Ministry with Department of Revenue, Ministry of Finance. Based on the said proposal, Government has reduced the GST rate on ethanol meant for EBP Programme from 18% to 5%.
  8. Department of Food & Public Distribution has introduced a Scheme for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity. This Scheme aims to infuse Rs. 1332 crore via Interest Subvention route. Under this Scheme, 114 proposals worth Rs. 6139.08 crore have been approved which are estimated to add 200 crore litres per annum of ethanol distillation capacity. In furtherance, in line with the decision taken in the meeting of PS to PM dated 21.09.2018 on “Ease of doing business and reduction in time taken for setting up of sugar related Distilleries”, MoP&NG has developed a format to monitor the progress, identify red flags and share it with distilleries. In this regard, Joint meetings with Project Proponents were held on 10.10.2018 and 13.11.2018. Further, MoP&NG has written letter to State Govt. of Karnataka, UP, Maharashtra, Madhya Pradesh and Uttarakhand for facilitating implementation of financial assistance scheme on 16.10.2018.

iii.  Bio-diesel Programme

  1. Purchase Orders have been issued by Oil Marketing Companies for supply of 8.14 crore litres of biodiesel during the period May – October, 2018, with provision for extension for three months.
  2. As on 30.10.2018, OMCs have procured 7.97 crore litres of Biodiesel.

iv.  Second Generation Ethanol

  1. Subsequent to opening up of alternate route i.e. Second Generation (2G) route for ethanol production, Oil Marketing Companies are in the process of setting up 12 2G bio-refineries with an investment of Rs.10,000 crores.
  2. Detailed Feasibility Report (DFR) for some 2G Bio-ethanol plants has been prepared by Oil PSUs. One of the Oil PSU viz. Numaligarh Refinery Ltd. has formed a JV named Assam Bio-refinery Private Limited with M/s Chempolis Oy of Finland and M/s Fortum 3 BV of Netherlands in June, 2018. The ground breaking ceremony of 2G ethanol project in Bargarh, Odisha, proposed to be set up by BPCL, was held on 10.10.2018.

v.   National Policy on Biofuels – 2018

  • The Government has notified National Policy on Biofuels 2018 on 8.6.2018 which is expected to give boost to the biofuel programme of the country. The major features of the Policy are as below:
  1. Categorization of biofuels as “Basic Biofuels” viz. First Generation (1G) bio ethanol & biodiesel and “Advanced Biofuels” – Second Generation (2G) ethanol, bio-CNG etc. to enable extension of appropriate financial and fiscal incentives under each category.
  2. Expanding the scope of raw material for ethanol production by allowing use of sugarcane Juice, sugar containing materials like sugar beet, sweet sorghum, starch containing materials like corn, cassava, damaged food grains like wheat, broken rice, rotten potatoes, unfit for human consumption for ethanol production.
  3. The Policy allows use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.
  4. With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries of Rs.5000 crores in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G biofuels.

vi.  Joining of Advanced Motor Fuels

Ministry of Petroleum and Natural Gas joined Advanced Motor Fuels (AMF), a Technology collaboration programme (TCP) under International Energy Agency (IEA) as Member on 9.5.2018. It is an international platform to promote collaboration in R&D for developing advanced motor fuels / alternate fuels with greater focus on improving fuel efficiency and reduced GHG emissions.

viii.  SATAT Initiative

  1. The Ministry has decided to give vide publicity to the initiative of Sustainable Alternative Towards Affordable Transportation (SATAT initiative) by organising Road Shows at Bhubaneswar, Chandigarh and Lucknow to promote Compressed Bio Gas (CBG) production and use.
  2. Accordingly, First Road Show was organised at Chandigarh on 17.11.2018 by Public Sector Oil Marketing Companies IOCL, BPCL and HPCL. The event was attended by prospective entrepreneurs, technology providers, representatives of Punjab Energy Development Agency (PEDA), Haryana Renewable Energy Development Agency (HAREDA), financial institutions, FICCI, CII, ASSOCHAM along with interested dealers / distributors and officers of OMCs. In the Road Show, the participants were informed about the SATAT initiative and entrepreneurs were encouraged to setup CBG plants and supply CBG to OMCs.

International Cooperation

i.  Overseas  sourcing

  1. In February 2018, an Indian Consortium of OVL, IOCL and BPRL acquired 10% participating interest in Abu Dhabi’s offshore Lower Zakum oil field.
  2. The first long term LNG cargo from US arrived at Dhabol on 30th March 2018.
  3. In April 2018, IOCL acquired 17% stake in the Mukhaizna Oilfield, Oman.
  4. The first long term LNG cargo from Russia arrived at Dhahej on 4th June 2018.

ii.  Important Agreements / Contracts

  1. Saudi Aramco and ADNOC signed a MoU in June 2018 to jointly develop and build an integrated refinery and petrochemicals complex promoted by Ratnagiri Refinery & Petrochemicals Ltd. (RRPCL) at Ratnagiri in Maharashtra.
  2. India and USA launched Strategic Energy Partnership Ministerial level Energy Dialogue process on 17th April 2018.
  3. PMs of India and Nepal launched the ground-breaking ceremony of India-Nepal petroleum products pipeline from Motihari to Amlekhgunj through live-streaming in New Delhi on 7th April 2018.
  4. A tripartite MoU was signed between Petronet LNG of India, Sri Lanka Ports Authority, and a Japanese company in April, 2018 to set up LNG terminal at Colombo.
  5. ISPRL and ADNOC (of UAE) signed a restated Definitive Agreement on Oil Storage and Management on 10th February 2018 for filling 5.86 million barrels of crude oil in the Mangalore SPR facility.
  6. On 18 September, 2018, India-Bangladesh Friendship Pipeline was inaugurated by the Prime Ministers of India and Bangladesh.
  7. On 12th November, 2018 a MoU was signed between ISPRL and ADNOC for exploring participation of ADNOC in Padur SPR.

iii.  Major International Conferences / Meetings:

  1. India hosted the 16th International Energy Forum (IEF) Ministerial Meeting from 10-12th April 2018 in New Delhi.
  2. The 2nd meeting of the International Think Tank (ITT) was held on 13th October 2018 to discuss the challenges and the way forward for the Indian Oil and Gas sector for the future.
  3. 3rd meeting of India-OPEC Energy Dialogue was held on 17th October 2018
  4. Minister PNG inaugurated the 2nd annual India Energy Forum by CERAWeek in New Delhi, from 14 – 16 October 2018.
  5. In October, 2018 Road Shows were held by ISPRL in New Delhi, Singapore and London to finalize PPP model for construction and filling of Phase-II Strategic Petroleum Reserves facilities proposed for construction.

Swachh Bharat Abhiyan

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i. Ministry of Petroleum & Natural Gas received Swachh Bharat National Award for Swachhata Action Plan (SAP) 2017-18 in Swachh Bharat National Award ceremony held on Gandhi Jayanti, 02ndOctober, 2018. MoPNG allocated a budget of Rs. 335.68 crore for SAP 2017- 18 and continuous monitoring through various apex level review meetings, MoPNG including Oil & Gas CPSEs, has achieved an expenditure figure of around Rs. 402 crore, showing an achievement of around 120%.

ii. As a precursor to the launch of the 150th birth year celebrations of Mahatama Gandhi, MoPNG observed Swachhata Hi Seva 2018 (SHS) from 15th September to 2nd October, 2018. MoPNG led the SHS campaign from the front. Ministry has undertaken various initiatives which inter-alia include organizing Shramdaan at various locations, conducting rallies/walkathon/cyclothons to generate awareness about sanitation; distribution of jute bags to general public to make plastic free zone; organizing cleaning drives at tourist places; constructing toilets in schools, public places, etc., distributing sanitary and hygiene products and organizing health talks and health camps.

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Achievements of Ministry of Commerce & Industry during 2018

Year End Review: Ministry of Commerce & Industry

Vision of a New India – USD 5 Trillion Economy 

First ever agriculture export policy launched 

India shines in Ease of Doing Business Rankings

VISION OF A NEW INDIA

The Ministry of Commerce & Industry is creating an action-oriented plan which will highlight specific sector level interventions to bolster India’s march towards becoming a USD 5 trillion economy before 2025. The focused plans will be on boosting services sector contribution to USD 3 trillion, manufacturing to USD 1 trillion and Agriculture to USD 1 trillion.

The Ministry has created a corpus of USD 1 billion to boost 12 champion sectors in services and it is working on releasing the New Industrial Policy keeping in mind the demands of the future. Further all efforts of both the Department of Commerce and Department of Industrial Policy and Promotion have been towards achieving the goal of India becoming USD 5 trillion economy.

12 Champion Sectors

The Union Cabinet chaired by the Prime Minister approved the proposal of the Department of Commerce to give focused attention to 12 identified Champion Services Sectors for promoting their development, and realizing their potential. These include Information Technology & Information Technology enabled Services (IT &ITeS), Tourism and Hospitality Services, Medical Value Travel, Transport and Logistics Services, Accounting and Finance Services, Audio Visual Services, Legal Services, Communication Services, Construction and Related Engineering Services, Environmental Services, Financial Services and Education Services.

This initiative will enhance the competitiveness of India’s service sectors through the implementation of focused and monitored Action Plans, thereby promoting GDP growth, creating more jobs and promoting exports to global markets.

Services sector in India has immense employment potential,it will enhance the competitiveness of India’s service sectors through the implementation of focused and monitored Action Plans, thereby creating more jobs in India, contributing to a higher GDP and exports of services to global markets.

As the Services sector contributes significantly to India’s GDP, exports and job creation, increased productivity and competitiveness of the Champion Services Sectors will further boost exports of various services from India. Embedded services are substantial part of ‘Goods’ as well. Thus, competitive services sector will add to the competitiveness of the manufacturing sector as well.

The share of India’s services sector in global services exports was 3.3% in 2015 compared to 3.1% in 2014. Based on this initiative, a goal of 4.2 % has been envisaged for 2022.

The share of services in Gross Value Added (GVA) was about 5 3% for India in 2015-16 (61 % including construction services). A goal of achieving a share of services in GVA of 60 % (67% including construction services) has also been envisaged by the year 2022

Agriculture Export Policy, 2018

The Commerce Ministry has formulated India’s first ever Agricultural Export Policy with a focused plan to boost India’s agricultural exports to USD 60 billion by 2022 thereby assisting the Agriculture Ministry in achieving its target of USD 100 billion and to integrate Indian farmers and the high quality agricultural products with global value chains and to double India’s share in world agriculture.

The vision of the Agriculture Export Policy is to harness the export potential of Indian agriculture through suitable policy instruments and to make India a global power in agriculture and raise farmers’ income.

Elements of Agriculture Export Policy

The recommendations in the Agriculture Export Policy are in two categories – Strategic and Operational:

Strategic

Policy measures
Infrastructure and logistics support
Holistic approach to boost exports
Greater involvement of State Governments in agri exports

Operational

Focus on Clusters
Promoting value added exports
Marketing and promotion of “Brand India”
Attract private investments into production and processing
Establishment of strong quality regimen
Research & Development
Miscellaneous

PROMOTION OF TRADE

Commerce Ministry is working closely with the Finance Ministry to ease credit flow to the export sector, especially small exporters to ensure adequate availability of funds to them.

The Commerce Minister has identified 15 strategic overseas locations where the Trade Promotion Organisations (TPOs) are proposed to be created. India has great potential to generate greater volumes of export with these countries but at present trade with them stands as single digit numbers. The locations where TPOs are proposed:

Astana (Kazakhstan), Beijing (China) Cape town (South Africa), Dubai (UAE), Frankfurt (Germany), Ho Chi Minh City (Vietnam), Jakarta (Indonesia) Lima (Peru), London (U.K.),  Melbourne (Austrialia), Mexico City (Mexico), Moscow (Russia), New York (USA), Sao Paulo (Brazil) and Tokyo (Japan).

EXPORTS ON THE RISE

India’s exports clocked highest growth in last 6 years. Sector specific interventions, focused export promotion initiatives, greater transparency and quick resolution of issues have led to an impressive export growth of 14.76% in 2017-18 (Oct-Sept) over previous year.

The Department of Commerce is making all efforts to diversify India’s export basket region wise and commodity wise. Free Trade Agreements (FTAs) are a means of correcting India’s balance of trade.With the USA bilateral negotiations are on and with China, India has held three inter-ministerial delegations in June, August and November 2018 led by the Department of Commerce to pursue market access issues with Ministry of Commerce China (MOFCOM). General Administration of Custom China (GACC) has approved total 24 Indian rice mills for exporting non-basmati rice to China and the first consignment of 100 tonnes of white rice (5% broken) was shipped on 28.09.2018 and 30.09.2018. In October 2018 another 23 tonnes of rice was exported to China followed by 260 tonnes in November 2018. Export of rapeseed meal to China, which was discontinued in 2012, has been opened up now with consistent and continuous efforts of Department of Commerce and GACC has approved five rapeseed mills to supply rapeseed meal to China. The GACC teams have also visited India to inspect soybean meal mills and pomegranate orchards and pack houses in December 2018. China will also begin importing 50,000 tonnes of raw sugar from India early next year.

METALS AND MINERALS TRADING CORPORATION (MMTC)

MMTC is one of the two highest earners of foreign exchange for India and the largest250px-MMTCLtd.Logo.png public sector trading body. During the first half of the year, MMTC has achieved revenue from operations of Rs.12511 crore as against Rs. 9969 crore during the corresponding period last year registering a growth of 26% over the same period last year on year on year basis. The company has posted a Net Profit of Rs 41.62 crore during the period as compared to Rs. 29.76 crore during the same period last year registering an increase of 40%. The performance of the company during the second half of FY 2018-19 is likely to improve further.

Trade Infrastructure for Export Scheme

The Trade Infrastructure for Export Scheme (TIES) provides assistance for setting up and up-gradation of infrastructure projects with overwhelming export linkages like the Border Haats, Land customs stations, quality testing and certification labs, cold chains, trade promotion centres, dry ports, export warehousing and packaging, SEZs and ports, airports cargo terminuses. The Central and State Agencies, including Export Promotion Councils, Commodities Boards, SEZ authorities and apex trade bodies recognised under the EXIM policy of Government of India, are eligible for financial support under this scheme.

Ease of doing business for exporters – steps taken by DGFT

Director General of Foreign Trade (DGFT) has taken several measures to strengthen the IT platform and create ease of doing business for exporters:

  1. DGFT has upgraded the existing IT-hardware this year.
  2. An online grievance redressal service was launched on DGFT website in September 2017: Contact@DGFT. It’s single point contact for all foreign trade related issues of the exporters and importers. In the last year, over 60,000 grievances have been received on this platform, 97% of the grievances have been addressed.
  3. DGFT’s EDI system provides facility for online application by exporters-importers for most of it’s schemes and authorisations – IEC, Advance Authorization Scheme, Annual Advance Authorization Scheme, DFIA, EPCG Scheme, Annual EPCG Scheme, MEIS, SEIS, a FPS, FMS, MLFPS, VKGUY, SFIS, SHIS, Incremental Export Incentivisation Scheme, Authorization for import and export of restricted items. The interface with other agencies (Customs and RBI) is also through EDI system.
  4. An online view of Shipping Bill data, electronically received form Customs, has been created for all Shipping Bills issued since 1.4.2016 for regional offices. Now, the exporters will not require to file physical copy of shipping bill for redemption of EODC. DGFT regional Offices can use electronically transmitted SB data from Customs for various other purposes also.
  5. Exporters can self-generate Importer Exporter Code (IEC) on online platform.
  6. Online auto approval of MEIS benefit has been introduced since September 2018 for 97% of product lines under MEIS. Now, MEIS applications are system approved and scrips are released within 3 days of the approval.
  7. Call centre has been strengthened and now all telephone calls received on the help desk are closely monitored. An IVRS system has also been deployed.

INDIA IMPROVES RANKING IN EASE OF DOING BUSINESS

India has made a leap of 23 ranks in the World Bank’s Ease of Doing Business Ranking this year to be ranked at 77. Upward move of 53 ranks in the last two years is the highest improvement in 2 years by any large country since 2011. India now ranks first in Ease of Doing Business Report among South Asian countries compared to 6th in 2014.

India has improved its rank in 6 out of 10 indicators and has moved closer to international best practices (Distance to Frontier score) on 7 out of the 10 indicators. The most dramatic improvements have been registered in the indicators related to construction permits and trading across borders. In grant of construction permits, India’s rank improved from 181 in 2017 to 52 in 2018, an improvement of 129 ranks in a single year. In trading across borders, India’s rank improved by 66 positions, moving from 146 in 2017 to 80 in 2018.

S. No.

Indicator

2017 2018

Change

1

Construction Permits

181 52 +129

2

Trading Across Borders

146 80

+66

3

Starting a Business

156 137

+19

4

Getting Credit

29 22

+7

5

Getting Electricity

29 24

+5

6

Enforcing Contracts

164 163

+1

Overall rank 100 77

+23

Ranking of States

Department of Industrial Policy and Promotion (DIPP),Ministry of Commerce and Industry, in collaboration with the World Bank conducts an annual reform exercise for all States and Union Territories (UTs) under the Business Reform Action Plan (BRAP) to improve delivery of various Central Government regulatory functions and services in an efficient, effective and transparent manner. States and UTs have conducted reforms to ease their regulations and systems in areas like labour, environmental clearances, construction permits, contract enforcement, registering property and inspections. States have also enacted Public Service Delivery Guarantee Acts to enforce the timelines on registrations and approvals.

Improvement in Ease of Doing Business ranking have been possible because of the transformative measures taken by the Government of India which includes legislative and regulatory reforms. To support start-ups and lower tax rates for MSMEs quicker environmental clearances from 600 days to 140 days has been implemented, abolition of inter-state check post after implementation of GST has been done, enhanced input tax credit and electronic GST network has been put in place and the creation of commercial courts to fast track enforcement of contracts and faster security clearances has lent support to the start-ups in the country.

India has improved its rank among BRICS countries from 5th in 2010 to 3rd in 2018. The measures undertaken to ensure this improved ranking is issuance of construction permits where India’s rank is 52, in getting electricity connection India’s rank is 24 and in Trading Across Borders India now ranks at 84. In paying taxes India’s ranking is 121 and in resolving insolvency India’s ranking stands at 108.

Twenty-One regulatory changes have been made for ease of doing business for start-ups.

To optimise resource utilisation and enhance the efficiency of the manufacturing sector, DIPP launched the Industrial Information System (IIS), a GIS-enabled database of industrial areas and clusters across the country in May 2017. The portal serves as a one-stop solution to the free and easy accessibility of all industrial information including availability of raw material – agriculture, horticulture, minerals, natural resources, distance from key logistic nodes, layers of terrain and urban infrastructure.

IPRS is proposed to be translated into an annual exercise covering all the parks across India. Coverage would be widened and updated to bring in deeper qualitative assessment feedback, bring in technological intervention and develop it as a tool that helps effectively for demand driven and need based interventions both by policy makers and investors.

District Level Development- Ushering progress one District at a time

Department of Industrial Policy and Promotion of the Ministry of Commerce has also developed a District level reforms plan. It has been shared with the State and UT Governments for implementation by Districts. The State and UT Governments have been requested to evaluate districts on the basis of achievements in implementation of this plan on the basis of users’ feedback.

With a focus on a bottom-up approach, the Ministry has identified six districts across five states to build the capacity of the district level administration. Whilst National Council of Applied Economic Research (NCAER) has been given the mandate to work closely with the District Administration of Solan in Himachal Pradesh, Ratnagiri and Sindhudurg in Maharashtra, IIM Lucknow is working closely with the District Administration of Varanasi in Uttar Pradesh, Muzaffarpur in Bihar and Vishakhapatnam in Andhra Pradesh. The action-oriented plan will aim at increasing district level output by 3% with a focus on enhancing EODB at the district level which will give a massive boost to India’s overall GDP growth.

FDI IN NEW GROWTH TRAJECTORY

Q1FY19 FDI inflows saw a 23% growth over Q1FY18 with Q1FY19 FDI inflow at USD 12.7 billion. India for the first time received FDI of more than highest ever FDI inflow of USD 61.96 billion in FY 2017-18. FDI equity inflows in automobiles & auto components increased by 13% during FY 2017-18, as compared to FY 2016-17. FDI equity inflows in textiles sector have increased by 18% during FY 2017-18, as compared to FY 2016-17.

MAKE IN INDIA

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Launched by Prime Minister of India, Narendra Modi, on 25th September 2014 to make India the hub of manufacturing, India has emerged as one of the fastest growing economies.

India has jumped 15 places on the Global Innovation Index (2015-16) (Source: World intellectual Property Organization) and moved 19 places ahead on the Logistics Performance Index (2015-16) (Source: World Bank).

In the Global Competitiveness Index (2014-16) India has jumped 32 places (Source: World Economic Forum).

Ministry of Commerce is making all efforts to ensure that in public procurement preference is given to Make in India:

  1. Exemption is given where estimated value of procurement is less than Rs. 5 lakhs.
  2. The minimum local content shall ordinarily be 50%. The Nodal Ministry may prescribe a higher or lower percentage in respect of any particular item and may also prescribe the manner of calculation of local content.
  3. The margin of purchase preference shall be 20%.
  4. A Standing Committee in Department of Industrial Policy and Promotion, under the chairmanship of Secretary, DIPP oversee the implementation of the 2017 order giving preference to Make in India products.

So far, 14 Nodal Ministries and Departments have issued notifications for minimum local content for various product categories.State Governments have been requested to implement Public Procurement Order in their States.Implementation of the Order is being monitored vigorously. A Public Procurement Cell has been created in DIPP. Regular meetings of the Standing Committee are being held, apart from industry-specific meetings to sensitise and take feedback from industry.

Purchasing Managers’ Index signals a sparkling continuous expansion

Purchasing Managers’ Index (PMI) is an indicator of business activity both in the manufacturing and services sectors. PMI in October 2018 stood at 53.1 as against 50.3 in October 2017. October 2018 is the 15thconsecutive month of PMI>50, indicating growth in the manufacturing sector.

Massive growth of Start-ups

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Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of start-up businesses, to drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower start-ups to grow through innovation and design.

The number of DIPP recognised start-ups touched 14,545 in November 18 as compared to 4610 on October 2017 generating total employment for 130,424 persons.

Several programmes have been undertaken since the launch of the initiative on 16th of January, 2016 by Prime Minister, to transform India into a country of job creators instead of job seekers.

The 19-Point Start-up India Action Plan envisages several incubation centres, easier patent filing, tax exemptions, ease of setting-up of business, a Rs. 10,000 crore corpus fund and a faster exit mechanism.

Some of the achievements of the Start-up India action plan are (i) simplification and handholding for compliance regime based on self-certification, rolling out of mobile app and portal, setting up of Start-up India hub, legal support and fast-tracking patent examination at lower costs, relaxed norms of public procurement for start-ups and faster exit for start-ups, (ii) providing funding support through fund of funds with a corpus of Rs. 10,000 crore, tax exemption on capital gains, tax exemption to start-ups for 3 years, removal of angel tax, (iii) promoting industry-academia partnership and incubation through launch of Atal Innovation Mission, harnessing private sector expertise for incubator setup, building 11 Technology Business Incubators, setting up of 7 new research parks modelled on the research park setup at IIT Madras, promoting start-ups in the biotechnology sectors and (iv) launching of innovation focused programmes for students.

Support and outreach campaign for MSMEs by Department of Commerce (DoC)

Due to the efforts of the Ministry of Commerce, interest subvention was enhanced by 2% for MSMEs and an exhibition on GeM and export promotion schemes was set up by DoC in 80 districts on 2nd November 2018 which was attended by nodal officers appointed by DoC from DGFT and GeM.gem.jpg

Department of Commerce has identified the following deliverables for MSMEs: Ease of excess to markets by bringing MSMEs on GeM platform and procurement from MSMEs via GeM, Quality certification by quality control of India to MSMEs products and districts identified for sectoral intervention so that MSMEs or rubber in Kottyam, gems and jewellery in Cuttack and Hyderabad and large cardamom plantations in West Sikkim are incentivised.

Further benefits of DGFT export promotion schemes are to be extended to MSMEs like MEIS, AA, EPCG, DFIA and interest equalisation. New exporters will be trained and guided on how to export and IOEC registration and workshops will be conducted for MSMEs on export opportunities under the FTA route and familiarization with portals like the FIEO managed India Trade Portal.

LOGISTICS MOVING TOWARDS A NEW HORIZON

Multi -Modal Logistics Parks Policy

The Multi-Modal Logistics Parks (MMLPs) are a key policy initiatives of Government of India to improve the country’s logistics sector by lowering over freight costs, reducing vehicular pollution and congestion and cutting warehouse costs with a view to promoting moments of goods for domestic and global trade. At present there is no specific definition, specification and standardisation of multi-modal logistics parks.

Different Ministries like Railways, Shipping and Department of Industry Policy and Promotion are developing parks at the same location. This duplication is happening due to the lack of a comprehensive policy. The Commerce Ministry is consulting different stakeholders, States and UTs on the proposal on the multi-modal logistics park policy.

Developing Logistics Portal

India has improved its global rankings on trading across borders from 146th rank in 2017 to 80th rank in 2018. Department of Commerce is working on reducing the logistics cost from the current 14% of GDP to 10% by 2022 through an integrated approach. A National Logistics Portal is being developed which will serve as a transactional e-marketplace by connecting buyers, logistics service providers and relevant government agencies. The portal will be a single window market place to link all stakeholders.

Logistics Data Bank

A technology innovation project of India-Japan bilateral cooperation, Logistics Data Bank Project has already been commissioned to track containers on a ‘near-real-time’ basis. This is one of the initiatives of Government of India as part of its Ease of Doing Business initiative wherein RFID tags are placed on every container coming out of the ports to track its movement. The project has already expanded to various ports (JNPT, Mundra, Hazira, Chennai, Paradip, Kattupalli, Ennore, Krishnapatnam, Mumbai, Murmogao, Visakhapatnam, New Mangalore and Kolkata) in India and has covered around 90% of total container volumes in India.

SEZ POLICY

The Baba Kalyani led committee constituted by the Ministry of Commerce& Industry to study the existing SEZ policy of India has submitted its report to the Union Minister for Commerce & Industry and Civil Aviation, Suresh Prabhu.

The objectives of the committee were to evaluate the SEZ policy and make it WTO compatible, suggest measures for maximizing utilisation of vacant land in SEZs, suggest changes in the SEZ policy based on international experience and merge the SEZ policy with other Government schemes like coastal economic zones, Delhi-Mumbai industrial corridor, national industrial manufacturing zones and food and textiles parks.

While submitting the report to the Commerce Minister, Baba Kalyani, Chairman, Bharat Forge Ltd., said that if India is going to become a USD 5 trillion economy by 2025 then the current environment of manufacturing competitiveness and services has to undergo a paradigm shift. The success seen by services sector like IT and ITeS has to be promoted in other services sector like health care, financial services, legal, repair and design services.

The Government of India has set a target of creating 100 million jobs and achieving 25% of GDP from the manufacturing sector by 2022, as part of its flagship ‘Make in India’ programme. Furthermore, the Government plans to increase manufacturing value to USD 1.2 trillion by 2025. While these are ambitious plans to propel India into a growth trajectory, it requires evaluation of existing policy frameworks to catalyse manufacturing sector growth. At the same time, policy needs to be complied with the relevant WTO regulations.

Industrial Corridors

Industrial corridor programme envisages creation of world class infrastructure, connectivity and new greenfield smart cities as global manufacturing hubs which will create large employment opportunities. The Delhi Mumbai Industrial Corridor (DMIC) Project has made substantial progress with trunk infrastructure development activities nearing completion at four locations in Gujarat, Maharashtra, Uttar Pradesh and Madhya Pradesh. Allotment of developed land to industries has begun in these places and 56 plots constituting 335.51 acres have already been allotted. This is expected to bring an investment of about Rs. 8354 crore over a period of 3-5 years.

Based on the initial success of DMIC project, the Government has also started planning and development activities in four other industrial corridor projects i.e. Amritsar Kolkata Industrial Corridor (AKIC), Chennai Bengaluru Industrial Corridor (CBIC), Bengaluru Mumbai Economic Corridor (BMEC) and East Coast Economic Corridor (ECEC) from Kolkata to Chennai. Trunk infrastructure activities in these corridor projects are planned to be initiated from next year.

TRADE PROMOTION ORGANISATIONS

India Trade Promotion Organisation

India Trade Promotion Organisation (ITPO) is the trade promotion agency of the Ministryitponewlogo.png of Commerce and Industry and is a venue for exhibitions and conventionsat its ground in PragatiMaidan in New Delhi. It has an area of nearly 150 acres and 625,000 square metres exhibition space. It was demolished in April, 2017 for re-development and after completion will be the biggest exhibition centre in Delhi. The ITPO holds the India International Trade Fair (IITF) since 1980 every year. It is a premier international trade fair and has evolved as a major event for business community.

Around 800 participants from States, government departments, domestic and international companies are taking part with considerable participation of rural artisans, craftsmen and SME entrepreneurs.The Fair received foreign participation from Afghanistan, China, Hong Kong, Kyrgyzstan, Iran, Myanmar, Nepal, Netherlands, South Africa, South Korea, Thailand, Turkey, Tunisia, Vietnam and UAE.

India International Convention and Expo Centre

The Department of Industrial Policy & Promotion of the Ministry of Commerce is developing India International Convention and Expo Centre as a world class facility over an area of 221.37 acres in Sector 25 Dwarka, New Delhi at an estimated cost of Rs. 25,703 crore.

The foundation stone for the Project was laid by the Prime Minister of India on 20th September 2018. Phase-I will be completed by December 2019 and the Phase-II will be completed by December 2024.

Trade Promotion Council of India

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In January 2018, Trade Promotion Council of India (TPCI) and Department of Commerce, Ministry of Commerce & Industry organized a two-day international food and beverage expoIndusfood which saw Indian exporters bagging orders worth over USD 500 million.

Indus food was able to find new markets for Indian tea and spices, besides getting huge orders for rice, soybean oil, fish products, fruits, vegetables, organic food and various other commodities. TPCI also organised exhibitions in Bangkok, Hanover, Johannesburg, Mexico City and Paris.

TPCI is organising Indusfood-II in Greater Noida, NCR, Delhi on 14th – 15th January, 2019. 600 global buyers from 50 countries and over 350 Indian exporters and producers are expected to participate at this World Food Supermarket.

Indian Footwear, Leather & Accessories Development Programme (IFLADP)

The Central Government has approved a special package for employment generation in leather and footwear sector. The package involves implementation of Central Sector Scheme “Indian Footwear, Leather & Accessories Development Programme” with an approved expenditure of Rs. 2600 crore over the three financial years from 2017-18 to 2019-20.

The scheme would lead to development of infrastructure for the leather sector, address environment concerns specific to the leather sector, facilitate additional investments, generate employment and increase production. Enhanced tax incentive would attract large scale investments in the sector and reform in labour law, in view of seasonal nature of the sector, will support economies of scale. Government has approved Rs. 328.43 crore for upgradation of 9 Common Effluent Treatment Plants (CETPs) for leather industry in Tamil Nadu and Rs. 129.62 crores for upgradation of seven Footwear Design and Development Institute (FDDI) centers into Centres for Excellence (CoEs) and has given in-principle approval for setting up of Mega Leather, Footwear and Accessories Clusters (MLFACs) at Bantala, Kolkata.

A target for providing primary skill development training to 1,40,000 unemployed persons and skill upgradation training to 20,000 workers during each year 2018-19 and 2019-20 has been assigned under Human Resource Development (HRD) sub-scheme of IFALDP.

During 2017-18, primary skill development training has been provided to 94,232 unemployed persons in leather & footwear sector and of them 71,125 trainees have been provided placement in the industry during 2017-18 under Human Resource Development (HRD) sub-scheme of IFLADP. Further, 25,643 persons have been trained under primary skill development training programme during 2018-19.

North East Industrial and Investment Promotion Policy (NEIIPP), 2007/ Freight Subsidy Scheme,2013(FSS) and North East Industrial Development Scheme (NEIDS), 2017.

With the purpose to boost industrialization of the States of North East region including Sikkim, the Government has been implementing industrial subsidy schemes such as North East Industrial Policy, (NEIP) (1997-2007), North East Industrial and Investment Promotion Policy, (NEIIPP) (2007-2017), Transport Subsidy Scheme(TSS) (1971-2013) and Freight Subsidy Scheme(FSS) (2013-2016). Under NEIIPP cash subsidies aggregating to Rs.2045 crore have been released since inception. Rs.1598.53 crore has been released under NEIIPP and Rs.1455.59 crore under TSS and FSS in the last 4 years.

To continue extending benefits for the industrial units situated in the North Eastern Region, a new policy “North East Industrial Development Scheme” (NEIDS),2017 was notified on 01.04.2017 for a period of five years.

Special Package Scheme for Himachal Pradesh, Uttarakhand and J&K and Industrial Development Scheme for Himalayan States -2017 (IDS-2017)

Department of Industrial Policy & Promotion (DIPP) had introduced various concessions for the State of Jammu & Kashmir namely, J&K package-I and J&K package-II. from June, 2002 to till 14th June, 2017 to boost up industrialization. For the States of Himachal Pradesh and Uttarakhand various concessions were introduced from June 2003 to 31st March, 2017. Resultant to these concessions, 75118 units were set up generating 6,52,757 employment and creating investment of Rs. 55,550.42 crore. Under the Special Package Scheme Rs.380.65 crore has been released during the last 4 years and total amount of Rs. 119.11 crore got released during the financial year 2018-19 (up to 30.09.2018).

Industrial Development Scheme for J&K from 15.06.2017 to 31.03.2022 and Industrial Development Scheme for Himachal Pradesh and Uttarakhand from 01.04.2017 to 31.03.2022 has been notified on 23.04.2018 with financial outlay of Rs. 194.90 crore.

Scheme of Budgetary Support Under GST Regime

The Scheme of Budgetary Support to the eligible units located in the states of J&K, Uttarakhand, Himachal Pradesh and North Eastern States including Sikkim under GST regime was notified in October 2017 to continue committed liability for the residual period out of a total of 10 years. The scheme will remain in force from 01-07-2017 till 30-06-2027.

Under the scheme 1673 units have been registered. Rs 1500 crore has been authorized to CBIC for payment to the eligible units. Budget of Rs 4000 crorefor 2019-20 has also been sought.

GOVERNMENT E-MARKETPLACE (GeM) ADDS SPARKLE

Number of users (buyer & sellers) on GeM, the national e-public procurement portal, have grown 186% during last one year. Transactions have increased 772% in volume terms and 599% in value terms. More than 26% of vendors in GeM are MSMEs accounting for 56% of transactions by value, making it a truly open and inclusive platform. During the 6-week National Mission of GeM (NMG) launched recently by Commerce Minister, GeM organized training in more than 220 districts and 180 towns, covering about 50,000 buyers and sellers.

During the mission, 1617 organizations have been on-boarded and 1405 new organizations have started transactions. As per road map emerging out of the national mission, railways have set a target to carry out annual procurement of Rs. 10,000 crore through GeM provision in IREPS during the next year.

MORE POWER TO INDIA’S ETHNIC GEOGRAPHICAL INDICATIONS (GI)

Gl logo and tagline have been launched by Union Commerce and Industry Minister, Suresh Prabhu for recognition of GI’s in India. 312 GI’s have been registered in past 1 year including famous GI like Bangla Rasgulla and Alphonso. It is one of the world’s most popular fruit and is exported to countries like Japan and Korea and in Europe. New markets such as USA and Australia have recently opened up.

Alphonso from Ratnagiri, Sindhudurg and other adjoining areas in Maharashtra gets GI Tag

Darjeeling Tea, Mahabaleshwar Strawberry, Blue Pottery of Jaipur, Banarasi Sarees and TirupatiLaddus are some of the GIs. The first product to get a GI tag in India was the Darjeeling tea in 2004. There are a total of 325 products from India that carry this indication.

A massive GI campaign has been launched for increasing awareness of the GI. Farmers, artisans and craftsmen are the direct beneficiaries of this initiative.

GI products can benefit the rural economy in remote areas, by supplementing the incomes of artisans, farmers, weavers and craftsmen. Our rural artisans possess unique skills and knowledge of traditional practices and methods, passed down from generation to generation, which need to be protected and promoted.

REFORMS FOR STRENGTHENING AND MODERNISING THE WTO

The recent unilateral measures and counter measures by some members, the deepening impasse regarding the appointment of members in the appellate body and contentious debate on development has led the Department of Commerce to propose major initiatives on WTO reforms like the enhanced role of the secretariat and strengthening of Dispute Settlement Mechanism which India has co-sponsored with EU. India desires for a more participatory engagement in the WTO with likeminded countries in order to defend India’s interest.

RCEP

Second RCEP leaders’ summit was held on 14th November 2018, where leaders acknowledged substantial progress in the negotiations. During the RCEP Ministerial Round meeting on 12-13 November 2018, 3 more chapters were concluded, taking the total chapters successfully concluded so far to 7 out of 16.

As per Commerce Minister’s directions, 3 think-tanks are being engaged for undertaking comprehensive study on India’s approach to RCEP. ICRIER, CRT and IIM (Bangalore) and CWTOS have been selected for the purpose.

THINK TANKS AND CONSULTATIONS

High Level Advisory Group(HLAG)

A HLAG has been set up DoC to make recommendations on pursuing opportunities addressing challenges and finding a way forward amidst emergent issues in the contemporary global trade scenario.

The HLAG will consider ways for boosting India’s share and importance in global merchandise and services trade, managing pressing bilateral trade relations and mainstreaming new age policy making.

The terms of reference (ToR) of the HLAG are to examine the prevailing international trade dynamics, including, but not confined to, the rising protectionist tendencies, especially on the part of major economies, non-engagement by some countries on outstanding trade negotiation issues and commitments, including the Doha Development Agenda, and their insistence on pursuing negotiating mandates, in many cases prematurely and without efforts, to build consensus and common understanding.

On new issuesand in light of this examination,the HLAG will suggest a way forward for India, taking into account its interests and sensitivities, and provide options for a balanced approach for the global community to build on achievements thus far, in creating a conducive global trade framework and move forward in a harmonious and consensual manner that is acceptable to the larger global community.

The Group may consider possible approaches and suggest a pragmatic framework for India’s future engagement in international trade, and the manner in which it can play a proactive and constructive role in working with the community of Nations in exploring and building consensus on resolving emergent trade related issues. The group has met five times since October 2018 and will submit its report to the Commerce Minister by the end of this year.

INDIAN INSTITUTE OF FOREIGN TRADE (IIFT)

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IIFT is an autonomous public business school under the Ministry of Commerce and Industry to help professionalize the country’s foreign trade management and increase exports by developing human resources, generating, analyzing and disseminating data and conducting research.

Centre for WTO Studies

The Centre for WTO Studies was set up in the year 1999 to be a permanent repository of WTO negotiations-related knowledge and documentation. It was also envisaged that the Centre would evolve into a research unit with interest in trade in general and WTO in particular to finally develop into an independent think tank in the area.

Over the years, the Centre has conducted a robust research programme with a series of papers in all spheres of interest at the WTO. It has also created a specialized e-repository of important WTO documents, especially related to India, in its Trade Resource Centre.

It has been regularly called upon by the Government of India to undertake research and provide independent analytical inputs to help it develop positions in its various trade negotiations, both at the WTO and other forums such as Free and Preferential Trade Agreements and Comprehensive Economic Cooperation Agreements.

Centre for Regional Trade (CRT)

CRT is an autonomous Think-Tank established by the Department of Commerce under the Centre for Research on International Trade (CRIT) at the Indian Institute of Foreign Trade.

It undertakes research in economics with a focus on trade and investment related issues relevant to international cooperation of India with specific regions and countries, including Latin America, Africa, South Asia, ASEAN, China, EU, Japan, Korea and USA.

The Centre for Trade and Investment Law (CTIL)

Established in the year 2016 by the Ministry of Commerce and Industry, at the Indian Institute of Foreign Trade (IIFT)its primary objective is to provide sound and rigorous analysis of legal issues pertaining to international trade and investment law to the Government of India and other governmental agencies. The Centre aims to create a dedicated pool of legal experts that who could provide technical inputs for enhancing India’s participation in international trade and investment negotiations and dispute settlement. The Centre also aims to be a thought leader in the various domains of international economic law such as WTO law, international investment law and legal issues relating to economic integration.

Quality Council of India

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Quality Council of India (QCI) is a non-profit autonomous society registered under Societies Registration Act to establish an accreditation structure in the country and to spread quality movement in the country by undertaking a National Quality Campaign. The QCI is engaged in coal quality testing, assessment under Swachh Bharat Mission, Grievance analysis study and subsequent reform recommendations for the top 40 grievance receiving Ministries and Departments. The Council is also creating a dashboard to monitor quality of project implementation in CPSEs.

NEW INDUSTRIAL POLICY

The Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, has initiated the process of formulation of a new Industrial Policy in May 2017 and may get Cabinet approval soon. This will replace the 27-year-old existing policy. Since the last Industrial Policy announced in 1991, India has transformed into one of the fastest growing economies in the world. With strong macro-economic fundamentals and several path breaking reforms in the last three years, India is equipped to deploy a different set of ideas and strategies to build a globally competitive Indian industry. The new Industrial Policy will subsume the National Manufacturing Policy.

A consultative approach was taken for the formulation of the new policy wherein six thematic focus groups and an online survey on DIPP website have been used to obtain inputs from stakeholders. Focus groups, with members from government departments, industry associations, academia, and think tanks were setup to examine the challenges faced by the industry in specific areas. The six thematic areas include manufacturing and MSME,technology and innovation, Ease of Doing Business,infrastructure, investment, trade and fiscal policy, and skills and employability for the future. A Task Force on artificial intelligence for India’s economic transformation was also been constituted to provide inputs for the policy.

It is proposed that the new Industrial Policy will aim at making India a manufacturing hub by promoting Make in India. It will also suitably incorporate the use of modern smart technologies such as IOT, artificial intelligence and robotics for advanced manufacturing.

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