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The Modinomics of Aatmanirbhar Bharat 3.0

From industrial production to MSMEs, national infrastructure to fertilisers for farmlands, real estate to employment for the poor—Prime Minister Narendra Modi’s economic policies and schemes under Aatmanirbhar Bharat 3.0 are set to lift up stressed sectors and see the nation thrive amid the current global crisis.

Sanju Verma

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Prime Minister Narendra Modi
Prime Minister Narendra Modi

Snapdeal, founded by Kunal Bahl in 2010, notched up a valuation of $6.5 billion in just six years. However, by 2017, it was on the cusp of being wiped out forever, thanks to mounting debt, reckless expansion and massive cash burnout due to an overleveraged business model. Hence, it is indeed commendable that Snapdeal has risen from the ashes like a phoenix in the last three years. Today, Snapdeal has reduced its losses by 95%, while revenues have risen by 85%, aided by traffic that has seen a 100% growth. Last year, more than 27 million unique buyers bought things on the platform. Amidst the pandemic, it added over six million users and 20,000 new sellers, apart from the existing 500,000 sellers. Snapdeal’s humble beginnings, meteoric rise, debilitating fall and magical turnaround have many lessons to teach. The most important one is: Never lose focus and never go overboard.

Comparisons are most often odious, but Prime Minister Narendra Modi’s outstanding handling of the Covid-19 crisis and resultant challenges also have the same message—focus, calibrate and move forward without over-indulgence. The plan for a self-reliant India, or “Aatmanirbhar Bharat”, aims to focus on land, labour, liquidity and laws. Similarly, PM Modi’s “Vocal for Local” is not about import substitution or exclusion—it is about being self-sustaining and self-generating, but without the trappings of an outdated Nehruvian model, that had been steeped in isolationism.

In September 2020, echoing the above mantra, the index of Industrial Production (IIP) grew by 0.2% with a reading of 123.2, reversing six months of decline. Electricity, mining, consumer durables and non-durables jumped by 4.9%, 1.4%, 2.8% and 4.1%, respectively. The improvement was broad-based and three out of six use-based categories were able to display a growth in September 2020, which is very encouraging. It is unfair to say that the good performance was only due to a favourable base effect and inventory build-up prior to the festive season. The positive growth in infrastructure and construction was, for instance, driven by higher government spending.

Again, PM Modi’s “Vocal for Local” call led to record festive season sales. According to the Confederation of All India Traders (CAIT), sales of around Rs 72,000 crore were recorded this year on Diwali, a 10.8% growth over last year’s figures. Equally, China lost almost Rs 40,000 crore in business. The other positive news was that foreign portfolio investors (FPIs) invested a massive of over Rs 32,777 crore into Indian markets in November 2020, while that number was Rs 21,826 crore in October. The last high in terms of FPI inflows in a single month had been in March 2019, amounting to Rs 36,927 crore. Clearly, corporate earnings and the reforms undertaken by the Modi government have kept investor sentiment upbeat.

Amidst the ensuing slew of positive data flows, the Modi government has announced a stimulus of Rs 2.65 lakh crore under Aatmanirbhar Bharat 3.0, taking the total stimulus till date, since the onset of Covid, to Rs 29.88 lakh crore, which is akin to almost 15% of GDP. The government’s contribution to the stimulus is 9%, with the remaining 6% coming from the RBI. It is true that the Rs 1.46 lakh crore expenditure in the form of production-linked incentives (PLIs) to ten new sectors will be over five years. That said, there is no denying the fact that Aatmanirbhar Bharat 3.0 will have a multiplier impact on consumption, especially across stressed sectors, accelerate economic recovery and incentivise job creation through a virtuous cycle. The Modi government has already approved PLI schemes for three sectors at a cost of Rs 51,355 crore, debunking claims by naysayers, who falsely alleged that the government has been stingy in spending.

Earlier, the Rs 1.93 lakh crore allocated for the Pradhan Mantri Garib Kalyan Package (PMGKP), Rs 11.03 lakh crore allocated towards the Aatmanirbhar Bharat Abhiyaan 1.0, Rs 82,911 crore for the PMGKP Anna Yojana (which was extended till November) and Rs 12.71 lakh crore infused via RBI measures, announced till 31 October 2020, have not only injected liquidity into money markets, but also increased purchasing power via direct benefit transfer (DBT), improved cash flows by recalibrating EMIs and provided access to cheap credit for MSMEs, migrants and farmers. Processing 13.78 lakh applications from the 26.62 lakh received to sanction Rs 1373.33 crore under the SVANidhi scheme to hawkers and street vendors is a ringing endorsement for how Prime Minister Modi’s Aatmanirbhar Bharat agenda is both holistic and inclusive.

Since jobs have been at the forefront of every recent debate, the Modi government will provide subsidy for two years in view of the newly eligible employees engaged on or after 1 October 2020 under the Aatmanirbhar Bharat Rozgar scheme, at an additional cost Rs 6,000 crore. The overall allocation under this scheme is Rs 36,000 crore. Employee contributions (12% of wages) and employer contributions (12% of wages), totaling 24% of wages, would be given to Employees› Provident Fund Organisation (EPFO) registered establishments employing up to 1,000 people. The 24% subsidy covers 95% of EPFO establishments. Those employing more than 1,000 employees would get only 12% employees› subsidy. The addition of new employees would have to be above the base of September’s employee count. Also, if a company has up to 50 workers by the end of September, then it needs to create at least two jobs to become eligible for the EPFO subsidy and it will be an addition of “five new employees if reference base is more than 50 employees”. New employees have been classified as those with a monthly wage of less than Rs 15,000, who have never been registered with EPFO earlier. But companies who hire workers who lost their jobs between 1 March 2020 and 30 September 2020, with a salary cap of Rs 15,000 per month, shall also be eligible for getting this subsidy. The Aatmanirbhar Bharat Rozgar Yojana will be operational until 30 June 2021. Besides, under the stimulus package, an additional Rs 10,000 crore have been set aside for the PM Garib Kalyan Rozgar Yojana in the current financial year. It is to be noted that this scheme is in progress in 116 Indian districts and Rs 37,543 crore have already been spent.

Moreover, Rs 73,504 crore have already been released by the Modi government for rural jobs under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), leading to the creation of 251 crore man-days of employment. Rs 65,000 crore support for agriculture, in the form of fertiliser subsidy, Rs 18,000 under PM Awaas Yojana-Urban (PMAY-U), that will help 12 lakh houses to be grounded and 18 lakh houses to be completed, besides generating 78 lakh jobs, are all indicative of the Modi government›s commitment to empower weaker sections. An estimated increase in fertiliser usage of 17.8%, over the actual usage of 571 lakh metric tonnes in 2019-20, has also been noted. In 2016-17, the fertilizer consumption was 499 lakh metric tonnes, which is slated to rise to 673 lakh metric tonnes in 2020-21, showcasing how the rural growth story under Prime Minister Modi has had a big head start.

Again, Rs 10,200 crore for industrial infrastructure and domestic defence equipment, Rs 10,000 crore towards rural employment and Rs 6,000 crore for equity infusion in national infrastructure investment fund (NIIF)›s debt platform have been significant steps. NIIF›s debt platform has a loan book of Rs 8,000 crores and a deal pipeline of Rs 10,000 crore. NIIF and its investors/affiliates will raise debt of Rs 95,000 crore from the market and will provide infra project financing of over Rs. 1.10 lakh crore by the year 2025. NIIF funds have already invested in downstream funds and companies to the tune of Rs 19,676 crore, showcasing how infrastructure development is a continued focus area for the Modi government. Additionally, replacing earnest money deposit (EMD) with bid security declaration (BSR) and relaxing performance security fees on contracts, to 3% from 5-10%, should hasten project completion.

A Rs 3,000 crore boost for project exports under the IDEAS scheme and Rs 900 crore as R&D grant for Covid Suraksha and vaccine development are the other defining features of Aatmanirbhar Bharat 3.0. Exim Bank has extended lines of credit (LOC) to provide assistance to developing countries under IDEAS, which promotes Indian exports by mandating recipient countries to import at least 75% value of the LOC. It is to be noted that till date, 811 export contracts aggregating $10.50 billion are being financed under LOC.

MSMEs have always been a focus area for the Modi government and the emergency credit line guarantee scheme (ECLGS) 2.0 proves this. ECLGS 2.0, for supporting stressed sectors, by giving collateral-free loans with a tenor of five years, including a one-year moratorium on principal repayment, is a clear example of how a targeted and calibrated approach is paying rich dividends. The scheme will be available till 31 March 2021. ECLGS 1.0 has been a resounding success, with Rs 2.05 lakh crore sanctioned to 61 lakh borrowers and Rs 1.52 lakh crore already disbursed. The eligible entities under this scheme are MSMEs, business enterprises, individual loans for business purposes and MUDRA borrowers. 

To fuel demand in the residential housing sector, the Modi government has raised the differential from 10% to 20% (under section 43CA of Income Tax Act) for the period from the date of the announcement to 30 June 2021 in the case of primary sale of residential units of value up to Rs 2 crore. A consequential relief up to 20% shall also be allowed to buyers of these units under Section 56(2)(x) of IT Act for the said period. Focus on real estate sector is also evident from SWAMIH scheme, where 135 projects with an outlay of Rs 13,200 crore, have already been approved. This will result in the completion of 87,000 stuck houses.

In the movie, The Curious Case of Benjamin Button, there is a quote which goes: “Our lives are defined by opportunities, even the ones that we miss.” Well, the last one year for the Modi government has been extraordinary for the sheer number of opportunities that were seized to create new milestones. India trumped France in 2019 and then surpassed the United Kingdom in early 2020 to become the world’s fifth largest economy. Goldman Sachs, as if on cue, recently revised India’s real GDP growth forecast to 13% in FY22, well above consensus expectations of 10.9%. “When the world is in crisis, we must pledge—a pledge which is bigger than the crisis itself. We must strive to make the 21st century India’s century. And the path to do that is self-reliance”—this powerful quote by PM Modi sums up the ethos of Modinomics in more ways than one.

The writer is an economist, national spokesperson of the BJP and the bestselling author of ‘Truth & Dare: The Modi Dynamic’. The views expressed are personal.

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Opinion

THE ‘CONGRESSISATION’ OF BHARATIYA JANATA PARTY

Priya Sahgal

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With the renaming of a cricket stadium (of course it had to be the world’s largest) after Prime Minister Narendra Modi, the BJP has completed its final step towards its ‘Congressisation’. Of course, various BJP spokespersons are arguing that the Congress has no right to criticise considering the number of buildings, schemes, airports and chowks that have been named after the Nehru-Gandhi family. And it is right when it makes that point but now has lost the moral right to lecture the Congress. The fact that the said stadium has an Ambani-end and an Adani-end of course gives a delicious twist to the Opposition, which has for long been claiming that the BJP is a party of “Hum Do, Hamare Do” (run by PM Modi and Union Home Minister Amit Shah for the benefit of Adani and Ambani). Rahul Gandhi was the first to tweet this.

It’s not just the naming and renaming game. There is much more to it. With PM Modi we are also seeing the centralisation of power in the BJP, of the same kind that exists (or is it existed?) in the Congress. The culture of High Command is not new to the Congress but certainly new to the BJP. Even during Atal Bihari Vajpayee’s prime ministership there were comparisons to Jawaharlal Nehru but they were related to the kind of secular brand of Hindutva he espoused than anything else. In fact, the Vajpayee-Advani era saw its fair share of revolts from state leaders, the most famous being when Uma Bharti stormed out of a party meeting in full camera glare. Today no one would have the nerve to contradict the Modi-Shah duo, let alone plot a revolt.

In fact, we see the opposite happening in the Congress where a group of 23 leaders got together and wrote a letter to the party high command complaining about the lack of leadership. This would never have happened to a Congress led by Indira Gandhi or even Sonia Gandhi in her earlier stint as Party President (recall what happened when Pawar & Co raised the banner of revolt). But sadly, today, it’s a very different Congress; and it’s also a very different BJP.

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Opinion

Chabahar Port, North-South Transport Corridor & Uzbek deal: A game-changing trio

India’s operations in Chabahar Port, development of the International North-South Transport Corridor and partnership with Uzbekistan will not only strengthen New Delhi’s influence over the region and improve connectivity with the larger Eurasian space, but will also counter China’s attempts at gaining ground in the region.

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We all love our great country India and we believe in our Bhartiyata. We are people with 20,000 years of grand history, culture and civilisational values with us, which we are proud of, cherish and are in love with. We had been contributing almost 25 percent of the global GDP just before the British came. Our clout was known around the world for centuries and has been responsible for shaping our history to a great extent.

But, change is a constant factor as time passes by, and we were no exception to it. We all know about recent occurrences in history and how we have been a part of it. Today, India has emerged as a global powerhouse, with an over 800 million youth population, the fastest growing economy in the world, the third most powerful military force, the fifth biggest economy by GDP and third by PPP, and the contributions of its 1.3 billion people, who make India the largest democracy in the world. Believe it or not, this has all happened in the last 70 years.

India’s influence is increasing by the day and we are seen as a global player and powerhouse. So, it is important for us to increase our sphere of influence within Asia and around the world. Let there be no mistake about this, as this is sacrosanct and not optional. The emergence of India on the world stage has been noted but some people are still reluctant to acknowledge and accept this fact. A wonderful thing is that time is on our side and we are progressing in leaps and bounds this time. Whether one acknowledges it or not, it makes no difference in the scale of our plans and ambitions.

Our imminent focus is Asia. When we talk of Asia, Central Asia takes centre stage as it is the gateway to Europe. Most often, in the noise created by our domestic politics, international issues and achievements get lost unfortunately. Just look at a few weeks back when, in the middle of the Covid crisis, we achieved a few breathtaking milestones and checkmated our arch rivals with our multifaceted, robust and aggressive diplomacy under PM Modi ji and Dr Jaishankar ji.

Chabahar is one of the biggest ports in the region which gives us our desired gateway to Central Asia, the Persian Gulf and its warm waters. Chabahar is no ordinary port – it has a handling capacity of 12 lakh tons of cargo and 82,000 containers. The Chabahar port is operational today and has been run by an Indian company since August last year.

We already have partners like Afghanistan who are going to use this port. It also cements our ties with Iran. At the peak of the Covid crisis, we have shipped more than 75,000 tons of wheat to Afghanistan as humanitarian assistance and sent other help during the pandemic through this port. It might be worth it to mention that China has been trying hard, along with Pakistan, to stop our access to and influence on Central Asia, but has failed at it after we took over the operations of the Chabahar port successfully. We all recall how China tried to woo Iran and ruin our investments there, which we managed to overcome without too much noise and chest thumping.

Chabahar helps us to balance the influence of China on the Gwadar port which is just a few nautical miles away. China has been seen recently fortifying Gwadar, and, if the need arises, Chabahar will be a great balance of power and military paradigms and help to offset the relevance of the CPEC, which is anchored around Gwadar and has already hit serious roadblocks in the GB and Balochistan provinces of Pakistan. However, looking at the current state of things, I doubt if Gwadar will ever be a viable commercial option and how far it will pull down the OBOR.

India is also working on the INSTC, i.e., International North South Transport Corridor, which will be an MMTC, i.e., multimodal transport network or corridor with ship, rail and road links. It will start from Mumbai and pass through India, Iran, Afghanistan, Russia, Oman, Iran, Turkmenistan, Uzbekistan, Kazakhstan and Europe. This route is 7,200 kms in length and will start from Mumbai and end in Baku, Russia and will have the potential to be extended to Europe. It will help reduce both freight time and costs. To give you an idea, it will cost USD 2,500 per 15 tons of cargo, which is quite an amount, looking at the quantity of cargo which can pass through this route in a year.

Recently, India signed a $440 million deal with Uzbekistan which was announced by the MEA on 11 December, immediately after PM Modi’s meeting with Uzbekistan President Shavkat Mirziyoyev. This is a strategic win as this has been done for the first time in the history of India. Uzbekistan has agreed to use the Chabahar port and also be a part of the INSTC which makes it a more potent and viable option. We all know that Uzbekistan is land-locked and needs reliable port access. It is also a land full of petroleum, coal and uranium with some sizable reserves of mica and other minerals. I won’t be reluctant to say that we as a country need these resources. So, this deal gets us trade, minerals, and a partner for Chabahar and INSTC, which is a great achievement and also counter balances a few things.

We have countered the Iran-China petroleum deal worth $480 million with a better deal where we stand to gain as explained above. Moreover, the INSTC will only get stronger with more partners joining, ultimately strengthening the Chabahar port and increasing our influence in the region. Needless to say, we also managed to do it without China and Pakistan being involved.

Thus, PM Modi’s visit to the land of Timur and Babur was a phenomenal geopolitical milestone in terms of long-term strategic gains, and something to be proud of, especially if we consider the fact that it was achieved during the Covid-19 pandemic with the ongoing tensions on the LAC and LoC.

Chabahar helps us to balance the influence of China on the Gwadar port which is just a few nautical miles away. China has been seen recently fortifying Gwadar, and, if the need arises, Chabahar will be a great balance of power and military paradigms and help to offset the relevance of the CPEC, which is anchored around Gwadar and has already hit serious roadblocks in the GB and Balochistan provinces of Pakistan.

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Opinion

Transforming agriculture through village-level infrastructure

With agricultural reforms under the spotlight currently, the government needs to consider a massive village-level infrastructure project with measures like enhancing the storage of produce and establishing gram mandis or haats. Not only would this add value to the agricultural supply chain, it would also empower rural units and the farmer community, ultimately leading to a quicker post-Covid recovery for the Indian economy.

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The Government of India has set in motion reforms which will lead to the eventual development of a very large number of private markets near the agricultural produce growing regions. The village level agri-marketing infrastructure is the last remaining piece in this giant jigsaw puzzle which has remained unfixed in India for the last 70 years. This missing link at the bottom of the pyramid, which would be in the form of storage and transportation and other agriculture-related infrastructure at the panchayat level, has to be plugged in.

The Government of India needs to move away from schemes which dole out subsidies to individual rich farmers. It is time to make the intellectual and philosophical shift to building infrastructure on the post-production storage, logistics and marketing fronts and leave individual economic agents, including farmers, to function on the basis of the demand and supply of various commodities. A production mindset creates perverse incentives for the production of certain commodities including what is happening in the case of wheat, paddy, sugarcane and some other commodities which suffer the overhang of this mindset. Having said that, risk mitigation mechanisms like MSP procurement and PDS distribution systems would need to continue for a long time to accord protection to growers as well as consumers from a food and nutrition security perspective.

The Standing Committee on Agriculture (Chair: Hukumdev Narayan Yadav) submitted its report on ‘Agriculture Marketing and Role of Weekly Gramin Haats’ on January 3, 2019, and recommended that the Central Government (i) increase the number of haats being targeted under the scheme and ensure presence of a haat in each panchayat of the country, and (ii) make the scheme a fully funded central scheme. As against the 22,000 haats mentioned in the Committee report, other sources quote there being 47,000 haats across India with no or very rudimentary infrastructure with produce lying on the ground for sale, etc. The presence of such vast numbers of unregulated village cluster level markets establishes the need for panchayat-level infrastructure as also recommended by the Committee.

According to a National Centre for Cold-Chain Development (NCCD), GoI report, there is a very large gap in the case of pre-cooling/pack-houses (99% gap in demand – 70,080 vs supply – 249), reefer transport (85%) and ripening units (91%) at the level of villages/village clusters. Currently, the post-harvest losses in fruits and vegetables are huge, with a substantial chunk being contributed by potatoes, onions, tomatoes and mangoes which contribute to more than 60% of the overall losses. The lack of cold chain facilities in India is a major reason for losses besides a host of other factors. The percentage movement of fruits and vegetables through cold chain infrastructure in India is near zero, while in the US it is around 80-85% with countries like Thailand being of the order of 30-40%. The orientation of farmers in all states is geared towards production. Not enough attention and steps have been taken to mitigate post-harvest losses. Because of the low number of reefer transportation vehicles in India and the lack of backhaul loads, the cost of cold chain transportation is very high (about 2/3 times) than the normal transportation trucking infrastructure. We have negligible pre-cooling of fruits and vegetables at the village level since infrastructure is non-existent.

WHAT IS THE SOLUTION?

Given both the recommendations and the ground level needs, the Government of India may consider a gigantic infrastructure project to ensure that there would be adequate infrastructure for storage and basic value addition. In larger villages, there would also be a need for auctioning platforms, weighing systems, quality assaying machines, training centres and transportation vehicles in the form of reefer vans as well as normal trucks for movement of agriculture produce. The core of this infrastructure which will also provide it with a self-sustainability revenue stream would be the pre-cooling, ripening, micro cold storage, dry storage and transportation infrastructure. This would be like an advanced version of a haat and more like a full-fledged mandi at the level of every Gram Panchayat in the country with infrastructure as required by fruits/vegetables (@315 million tons) which today exceed the production of grain/pulses/oilseeds (@280 million tons) in India. This requires an integrated pan-India cold chain infrastructure starting from the villages of India without which it makes no sense to have a cold chain infrastructure in just the towns and cities with no such facilities at the growing centres where most of the value destruction and wastage happens in case of fruits and vegetables. Starting a basic cold chain from the Gram Panchayats needs an analysis of the type of cold chain infrastructure that is viable and needed in the villages. There have been incentives and a bias in favour of larger cold storages in India with the trade and industry, which needs to be corrected in favour of micro cold storages at village or village cluster levels.

WHY ARE SMALL OR MICRO COLD STORAGES NEEDED?

It is not viable to store common fruits and vegetables in large cold storages, so small or micro cold storages are required at the farm level. There is a dire need for micro cold storages (MCS) despite the fact that they have a higher capital cost per ton of storage and have a higher running cost per ton of storage. This is because their usage is very different compared to a large cold storage.

The MCS can be used to aggregate and store fruits and vegetables for a few days until a financially viable transport quantity is available. Buyers typically need a truck load every few days. Demand keeps fluctuating according to which harvest of produce from given geographies in season is huge. There is a need for storage so that there are short time windows in which they can be stored during times of crashes in prices. The MCS also allows for longer term storage of two to three months, wherein prices can increase by five to ten times in cases of items like lemons and many other commodities.

MCS can also be used as ripening centres, whenever required. MCS can also become a spoke for large cold storages to ensure value preservation at the time of harvest. Since storage in MCS is normally in 20 kg crates which allow farmers to sell the produce at a higher rate in semi retail using his own or hired transportation. The MCS can also double up as village level pack house, which is nonexistent in Indian villages today, for sorting, cleaning, grading, packing and some basic value addition for vegetables and fruits.

SUGGESTED COMPONENTS OF GRAM MANDI/HAAT

The built area of each GMH unit may be a maximum of 5000 ft² which would make it one of the most imposing structures in each panchayat. There may be another thousand square feet which may be added in the form of training centres and rooms for other community activities. Part of the facility may also serve as a banquet hall for weddings and such functions at the village level. The concept of lawn marriages with the entire integrated package of services being provided by a third-party service provider has also taken root in the villages of India.

The GMH will serve as a one-stop shop for the farmers that cater to a range of relevant services and activities. They would be designed in a way so as to be equipped to locally deliver the immediate needs of the farmers. The promotion of best cultivation practices to enhance production and productivity of major field crops, vegetables, fruits and fodder crops of the region, including the introduction of new and useful plant species, can also be accessed at the GMH.

In addition to agri business units, the project can also initiate social development units including a Primary Health Centre, Women’s Skill Development Centre, Computer Education Centre and Children’s Recreation Centre.

These GMH would serve farmers through a range of services and facilities:

• Micro cold storage and dry storage for non-perishables

• Sorting, cleaning, grading, packing, and some basic value addition for fruits, vegetables and also non-perishable goods.

• Business/processing unit like seed processing units, a honey processing unit, daal mills, spice grinding units, etc.

• Provision of farm machinery on custom hiring (pay and use) basis

• Technical and expert support for cultivation of different crops

• Strengthening product value and its market integration through pulses milling facility, apiary processing and seed procurement

• Social development units such as Skill Development Centre, Computer Training Centre and Children’s play area, Primary Health Centre, etc.

• Every module within the GMH must be available on demand to the respective Gram Panchayat except for the core modules like cold storage, the dry storage, sorting/packaging/grading stations, processing unit and the training centre which should be compulsory with every GMH.

• One acre of land near the GMH should be dedicated to a technology demonstration unit which should have the latest technologies as well as the ICAR system demonstrating their technologies directly to the village. Start-ups as well as ICAR are struggling with the challenge of taking technologies from POC or subscale to mass scale implementation in the villages. The GMH could be a mechanism to facilitate this lab to land transfer system which has broken down today.

The micro cold storages could also function as bulk milk chillers at the village level which would add value to 180 odd million tons of milk which is produced all across India and whose supply chain also suffers from a lack of BMC infrastructure at the village level.

Assuming a production of 2500 tons per panchayat, storage may need to be built around 250 tons which would require a warehousing space of around 3000 sq ft.² for dry storage. Micro cold storage unit of the capacity of 30 tons rotated 12 times a year would provide storage for almost 360 tons of fruits and vegetables.

In order to fill this gap, market storage and logistic infrastructure should be built at every Gram Panchayat level in India which is at 250,000 odd locations with slightly bigger infrastructure at the block level which number around 6,600 in India.

The GMH should also provide physical space for village level workers in extension, livestock, healthcare (ANM), CSC, digital/physical training centre to ensure footfall and ensure that the facilities become a hub for all community activities in the village and the surrounding feeder villages.

Infrastructure under the SWAN Initiative of the GoI and the Common Service Centre Initiative of the GoI could also be converged for physical location within the same facilities.

FOLLOWING MODALITIES COULD BE FOLLOWED FOR ROLLING OUT GMH

Every Gram Panchayat would need to submit a proper DPR to the GoI for grant funding to set up a GMH in the respective village. The various criteria and the guidelines of the scheme would ensure the automatic self-selection of capable Gram Panchayats and would be the first off the blocks in rolling out the infrastructure first in the villages which would be capable of monetising the assets built under the project. This process would take time just like what has been envisaged for the Agriculture Infrastructure Fund scheme of Rs 100,000 crore from the GoI. GMH implementation would follow the same trajectory and may take three years to roll out to all the Gram Panchayats of India.

Gram Panchayats may need to give a written commitment to contribute two acres of land to this project and offer labour time to the project as a contribution of the villagers. This facility should include both dry storage and micro cold storage.

Gram Panchayats would also necessarily have to house the management (including the revenues and expenses) of these entities into a pre-existing village level primary agricultural cooperative society or create a new one with broad representation from the local communities for the purpose of the administration and management of these units. Some revenue rich Gram Panchayats may also opt for setting up a Farmer Producer Company with members drawn from the Gram Panchayat village as well as the feeder villages (two to every Gram Panchayat) which are in proximity to every Gram Panchayat. The entities (PACS or other COOPs) which would be engaged in management of the GMH infrastructure should be given the status of FPOs as being set up under a large programme by the GoI.

The Gram Sabha in each village would need to pass a resolution handing over a minimum of two acres of land for the GMH project. The Gram Sabha could upload all the details required directly onto a GoI portal along with the request for construction of the GMH complex in their village. These requests should be made by them directly to the Prime Minister of India.

This entire project needs to be tendered out all over India so good infrastructure companies take up the execution of creating great on-ground infrastructure. The nature and design may be customised depending on the geography. For example, the GMH in Ladakh and the GMH in Kerala would not be the same.

FUNDING FOR GMH

Presence in 250,000 Gram Panchayats and 6600 blocks would require funds to the order of 2.5 lakh crores (Rs1 crore per Gram Panchayat) for the GMH infrastructure at the panchayat level and @ 33,000 crores at the block level (@ Rs 5 crore per block). There could be direct financial support of INR 75 lakhs from the GoI coffers to every eligible Gram Panchayat in India with labour and land being contributed by the local communities under each Gram Panchayat. The GoI would raise another Rs 25 lakhs for each Gram Panchayat from CSR/grants/individual donations from domestic and international sources, making this a USD 40 billion project with the GoI funding it to the tune of USD 30 billion. The project could be implemented over three financial years from FY 21-22, 22-23 and 23-24.

The money for the scheme can be pulled in from schemes like MPLADS, Rashtriya Krishi Vikas Yojana, National Mission on Horticulture, NFSM, Krishi Bhandaran Yojana and other such major/minor schemes under MoRD and MoFPI. MGNREGA may be used to partly fund the labour cost component of the project which will be rolled out in all Gram Panchayats of India.

The GoI could also appeal to PSUs and private companies with CSR budgets to help in building this infrastructure between 1 to 100 villages depending on the CSR budgets of each corporate. There are also large international donor organisations which could be approached to provide very substantial funds to a project of this scale. Non-resident Indians as well as persons of Indian origin can also contribute towards building this infrastructure in the villages of their ancestors. The GMH will provide a structured platform to ensure that any PIO/NRI with emotional connections to their villages would be able to donate for changing the lives of their brethren in the villages in a tangible way.

ECONOMIC OUTCOMES OF BUILDING VILLAGE LEVEL INFRASTRUCTURE

All the village level infrastructure needs to be connected institutionally with the new private markets coming up all over India which may be in the form of physical private markets or even electronic markets functioning on a regional or national basis.

The infrastructure on the ground could feed into these private markets where buyers from all over India could be attracted. Private markets could be run by the FPO or cooperative societies in partnership with organisations like NAFED, GCMMF or any such successful federation or public body with large-scale interfaces with farmers. This will revive the thousands of defunct or dormant Primary Agriculture Societies across India. It would give a fillip to the FPO movement if they have the status of being FPOs with the attendant benefits as available to FPOs through various State Government and GoI schemes and facilities.

Anything monetisable by the hands of the local communities through the mechanism of the bodies owned and controlled by them creates business models and economic opportunities for millions who would be engaged with the facilities built all over India. Many Indian companies including startups would be major beneficiaries of the GMH which would mean thousands of crores of rupees as revenue for these Indian-owned organizations.

Since the cold chain and sorting/packing/grading/cleaning would start from the villages, there would be huge savings in supply chain losses which may amount to billions of dollars on an annual basis. Since there would be a sudden boost in the number of reefer transportation assets all over India, the country would reach a tipping point in terms of their usage and also freight costs moving the country from zero to approaching the levels of Thailand at 40% percent of the output being transported in these types of vehicles. Since there would be a massive jump in the number of micro cold storages in India, their unit costs would go down from the current levels of Rs 10-15 lakhs for every 15-30 tons of storage to 1/3rd of that cost, furthering triggering their adoption by even large farmers.

The GMH can also be integrated with the ‘One District, One Product’ initiative of the Government of India with there being some level of value addition at the village level to the specialty produce from the village, which may be the processing of seed spices like cumin, coriander, fennel or other such items which are grown in Rajasthan, Gujarat and Madhya Pradesh. There could be value addition to milk in the form of paneer, ghee and other products.

The project could also change the mindsets of the GoI and state governments from the current production focus to a market-driven approach. As a natural corollary of the One District One Product programme, the GoI could guide the country towards ‘One Village One Product’. There could be village wise commodity specialisation which could become the reason of renown for the village.

This will become a huge pump priming project for the economy which is suffering the effects of Covid and the turmoil in the global environment. The solution for the varied problems of the farm sector and the peasant community lies not in subsidies but in building a robust post-harvest infrastructure. It will help facilitate the journey to the doubling of farmers’ income in India.

The writer is founder and chairman, Indian Society of Agribusiness Professionals and Indigram Labs Foundation. The views expressed are personal.

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THE SUCCESS STORY OF DADRA & NAGAR HAVELI AND DAMAN & DIU

Gopal Goswami

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The administrative services are said to be the permanent government in a democracy, while the elected ones are only for a certain period. In our country, region, religion, caste and many other social and cultural factors determine the outcome of election results. In such a scenario, sometimes non-qualified, undeserving and even criminal individuals get elected. The lack of an enlightened political class creates enough room for the bureaucracy to take undue advantage and rule the roost.

We inherited the bureaucratic system set up by the British rulers to rule its enslaved population. This has led the bureaucracy in free India to become a problem rather than being a solution. In the history of independent India, there have been very few examples of top political bosses who had the sagacity to handle the bureaucratic setup properly for the benefit of governance. Among the present generation of leadership, PM Narendra Modi has the apt understanding to handle this system. His level of knowledge of all strata of society, his journey from a chaiwala to Prime Minister which covered almost all walks and terrains of life, and his connection with ordinary people have empowered him with a proper understanding of the functioning of the system in totality. With such leadership at the helm of affairs, the bureaucracy works efficiently and effectively, not out of fear, but from the fact that the boss knows more and better ways to perform their tasks. As a result, the North and South Blocks of the Central Secretariat annexe are more vigilant and mobile today.

Prime Minister Modi has had the skill to deal with the bureaucracy right from the beginning of his stint as the Chief Minister of Gujarat. Only a few of his fellow politicians in Gujarat could master it while they were in his proximity. One of them is Home Minister Amit Shah and the other Praful Patel, Administrator of Dadra and Nagar Haveli and Daman and Diu and Lakshadweep. Patel was Home Minister in his cabinet after Amit Shah had been framed in fake encounter cases by the then Congress government at the Centre. 

Dadra and Nagar Haveli and Daman and Diu are union territories which were handed over by the Portuguese to India in the late 1960s. Since then, thousands of crores of rupees have been spent as special grants from the Centre each year as Dadra and Nagar Haveli is a tribal-dominated area and Daman is dominated by an OBC population.

Before Patel took over, the Administrator of these areas used to be a senior IAS officer of the UT cadre. Both UTs were under special financial packages and incentives set up for industries to generate employment for the tribal and OBC youth. Half a dozen IAS/IPS officers were put on deputation in each of the UTs and a separate secretariat was created, to run a territory smaller than a taluka, when compared with other states. A huge chunk of the funds was spent on the salaries of the administration. However, the funds were squandered without proper planning and used for personal gain by the bureaucracy and administration along with the elected public representatives. Meanwhile, the tribal and marginalised populations remained underprivileged, uneducated, and without proper road infrastructure and healthcare facilities. 

In the year 2016, Praful Patel was appointed as Administrator of Daman and Diu and Dadra and Nagar Haveli. It has been almost five years since then. The UTs are now unified as one single union territory, with a centralised secretariat in Daman. The layers of the administration have been halved, leading to big savings on recurring expenditures. The whole UT is almost corruption-free today.

Huge development work is being done with the quality and utility of them ensured. The cost of capital-intensive projects has been brought down as there is no corruption and projects are sanctioned by an online tendering process. The best part is that the quality of work has improved, and the Silvassa-Bhilad road connecting to the national highway and roads in Daman is an example of that. Moreover, flyovers are being constructed wherever needed. The administration is working round-the-clock for the welfare of the tribal districts of the UTs. 

Silvassa and Daman, once infamous for its rampant corruption by bureaucrats and politicians, breathes easy today. The public is happy because the system is working for their welfare and their voice is heard. The Administrator visits the projects every month for progress reviews and quality checks. The Collector and his associate officers speak to locals to ensure whether they are getting the benefits of public health, better education, efficient teachers, water supply and roads on a regular basis. Some of the government schools in Daman and Silvassa are better than world-class private schools. The whole UT is open defecation-free, each house has a toilet and the «Har Ghar, Nal Se Jal” scheme is under implementation.

Another major development in these UTs have been the medical and engineering colleges. A state of the art 100-bed medical college was added to the existing Vinoba Bhave Hospital which has more than 5000 in the OPD each day. Given the tiny population of 2.5 lakhs, this shows the efficiency of the medical staff and the belief of the people in government facilities. The Silvassa medical college is also a huge gift for the tribal-dominated DNH, as people there can now see their kids become doctors two to three years from now. The first engineering college has also been sanctioned and will be operational in a few years.

Hundreds of other development projects are being implemented within the UTs. The underground electrical lines in Silvassa and Daman, the skywalk chowpati at Silvassa, and seafront development in Daman and Diu are a few worth mentioning here. The UTs are also a tourist destination and these projects will attract more tourists and add to the income of the locals as a result.

These are the same places where the bureaucracy was treated like gods. Now, under able political leadership, they are the servants of the people. The ring road project of Silvassa, which had been halted for sixteen years, was completed within a year. Illegal occupation of public properties by politicians was rampant, and action was taken against that. The administration removed encroachers, although a few of them were ruling party leaders and people used to think the bigwigs are untouchable.

Sheer willpower has changed the scenario of development and the level of governance in these UTs. Remember, this transformation has come with the same set of people, officers and bureaucracy. People are full of praise for them now whereas they thought that bureaucrats are superhuman and can’t be held responsible for their misdeeds and corruption. But the termination of many officials, the forced retirement of medically unfit officials and voluntary retirement of lazy officials have brought a sense of optimism among locals.

In a nutshell, the moral here is that able leadership can prove the theory of “bureaucrats always overweigh politicians” wrong in a big way. Patel has proved that if you know the core of your business, the bureaucracy will be your slave. Politicians are not one and the same; some people know the art of governance and how to implement it, and Patel is one of them, He is still in his late 50s and has a long political career ahead. He belongs to Gujarat and has served Gujarat as a politician except for these five years.

Today, Gujarat also needs such leaders, who can tame the bureaucracy and get the house in order, especially as Gujarat is seeing its crime rate increase with each passing day and corruption become a big area of concern. The Revenue and Police departments also need to be made to work for the welfare, safety and security of the people, not for indulging in the land-grabbing business.

The turnaround of the two UTs and three districts is evidence of good governance and corruption-free administration in all departments. All this has been possible due to the able leadership of the administrator of the UTs and his team of officers who are working tirelessly day and night. This is the Modi model of governance” which can administer good governance with the same set of officials and bureaucrats.

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Government needs to be an active participant in disaster research

In the wake of the recent Uttarakhand floods, the government needs to hold the hands of researchers and local communities, and encourage open and honest fieldwork and research.

Amita Singh

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The Uttarakhand disaster has once again driven our attention towards the disaster management capacity, understanding and adeptness of the National Disaster Management Authority which is the apex institution one looks up to during such times. The Disaster Management Act 2005 says that NDMA “shall have the responsibility of laying down the policies, plans and guidelines for ensuring timely and effective response to disaster”.It is also responsible for “laying down guidelines to be followed by state authorities in drawing up their plans”. Under Section 6 of the Disaster Management Act 2005, NDMA coordinates the enforcement and implementation of disaster mitigation plans, recommends provision of funds and lays down broad policies and guidelines for the National Institute of Disaster Management which is the apex training body for capacity building in handling disasters in the country. 

However, a legitimate disaster management initiative in India lies in Sec 6 (i) of the Act which says that the NDMA should “take such measures for the prevention of disasters, or mitigation or preparedness and capacity building for dealing with a threatening disaster situation or disaster as it may consider necessary”. The NDMA ought to take this section with greater seriousness and commitment notwithstanding the many challenges it ought to encounter such as an understanding of local environmental and ecological resilience, alertness to law and effective agency coordination from the Centre to the State and local levels. It has been 16 years now since the Disaster Management Act (DMA 2005) was formulated. It has been quite successful in giving visibility to its institutional domain but has repeatedly failed in delivering substantive mitigation.

One would like to seek answers to the manifest deficits of an institution which is headed by none other than the Prime Minister himself and currently by a personality that has not only proved to be an able leader with a large fanbase across the world but who also has exceptional communication skills and makes overt emotional appeals to entice citizens into his policy theatrics like a Pied Piper. At a cursory look, these deficits seem not so much in the intentions or a lack of resources but in institutional failings to match with the spirit of the Hyogo Framework for Action (HFA 2005) in the first place, and as a consequence of it, deviating from the Sendai Framework for Disaster Risk Reduction (SFDRR, 2015-30). The former was brought in immediately after the devastating 2004 tsunami and therefore waded through many philosophical arguments related to man’s existence and the value of progress. It was debated and accepted in the United Nations with a shared concern for human progress and the developmental goals pursued by countries. The HFA demanded that nations focus on preparedness rather than the erstwhile rescue and relief operations. It had a visionary insistence on the fact that an investment in preparedness was an investment in development, as every disaster drains out a substantial percentage of developmental gains in terms of a country’s Gross Domestic Product (GDP), which is the market value of all the goods and services produced by a country, over and above the lives lost and delays in bouncing back to normal. This loss is roughly estimated at more than 2% of the GDP but can be much higher if the continuous externalities of environmental impact related losses are added to it, such as pollution, water loss, climate change related phenomena or a reduction in flora and fauna. The HFA clarified that preparedness builds resilience and incorporates sustainability into developmental policies and plans. If a country’s disaster management authorities and institutions do not value preparedness then they trap the country’s progress into an irretrievable retreat or fait accompli to accepting ruin as an ‘Act of God’.

The spirit of this trendsetting global meeting on disaster management was expressed as the potentially powerful location of DRR (disaster risk reduction) in a nation’s ability “to promote a strategic and systematic approach to reducing vulnerabilities and risks to hazards.” “Reducing vulnerabilities” indicates that communities should not be habiting fragile ecological zones and have good health, education and livelihood to become more resilient to the economic downturns that a disaster brings. Secondly, “reducing risks to hazards” indicates that developmental plans of construction, electricity generation, tourism, mining, oil drilling and port building should not be undertaken at locations which have a well-established scientific and geo-physical finding about a hazard. So, two facts become obviously clear: first, that it is impossible to work against nature, and second, any such policy obduracy may lead to the destruction of development. For implementing this spirit, governments should have focused on ‘communities’, (local governments, local institutions and local culture) and on annual plans based on the identification of ‘red zones’ or hazards which prohibit human trespassing in a particular location. Nonetheless, research is needed continuously for meaningful and cost-effective disaster management and achieving the Hyogo spirit.

SFDRR recognised this immense need for research by indicating it as “understanding disaster risk”, the first of four priority areas. The other three, i.e., strengthening disaster risk governance, investing in disaster risk reduction and enhancing disaster preparedness, are all located in governance and law. The need for research was passionately recognised as a starting point for DRR by former Minister of State for Disaster Management at the Ministry of Home Affairs Kiren Rijiju who encouraged disaster research as a starting point to divert policies from their dependence on western literature. By locating this research at the country’s premier multi-disciplinary research institution, Jawaharlal Nehru University, he could confidently vouch for capacity building percolation effect upon its own training institute as well. As research took off, reputed international publishers lined up to document its findings. The vibrant energy-filled environment with the young, the seniors, the uniformed forces and the local communities could not hide its inductive inclusivity in the country’s pessimistic periphery. As research teams marched to the fragile eco zones of the Sundarbans bordering Bangladesh or to Manipur’s Churachandpur, Chandel and Thaubal and further to the Teesta catchments of Kalimpong in West Bengal, Munnar hills in Kerala or waded through the flood waters of Alappuzha, local communities continued to join them, learn what they could have done and share what they needed. One evening, as researchers were explaining their day’s field work in the Sundarbans to the team leader, a former Chief Secretary, the West Bengal State Minister of Environment walked into the room to participate and share his knowledge on the subject. He was surprised to see that the State Disaster Secretary was absent. The next day, as news of this spread, not only the Secretary but other Secretaries heading other State Disaster Management Authorities were on high alert. Such was the participatory pull of this research.

While the field-based files were turning pages, parallel documentation was done by young, energetic research teams from universities and government training institutes across the country, which was later published as five continuous international volumes in a famous Palgrave-Macmillan series by Springer Nature. This unmatched information, available at one place for all prospective policymakers not just in India but the whole of South Asia, is indeed a lighthouse with the potential to crack through JNU’s academic council and establish the first trans-disciplinary centre for disaster research and make India a hub for training prospective Asian disaster managers. So strong was the Minister’s commitment to disaster management that he once publicly surprised many by asking the NDMA why they have not asked JNU experts to be part of the committee working to amend the DMA 2005. The young faculty and students still cannot forget their deep thought-provoking discussion with this minister on the DMA 2005 in the lawns of JNU one cold evening. It is worth recollecting that despite a show of willingness by the Secretary and the NDMA members in public, the official invite never came. But a day before the submission of their report, the NIDM-ED did call for expert inputs from the JNU experts, which was regretted. This community spirit displayed by MoS-DM was the key to mutual learning. Alas, both the Minister and the JNU team of researchers were soon replaced and the much-needed continuity in DRR work was lost to black letter office orders.

Wherever there is a lack of understanding of policy, the incapable ones in decision making compensate through a media display of traits other than disciplinary competence, such as charity, ideology, tears, religion and overtime work. It then becomes indispensable for their survival to steer clear of those who question. Therefore, the recent judgement of a Delhi Court in Disha Ravi’s case clarifies the perspective that the government needs to adopt. It says that “citizens are the conscience keepers of the government in any democratic nation” and further opens up the spirit of the Constitution when it uses the words, “…wounded vanity of governments”. Only an incompetent person is wounded, as the competent brightens up every department they touch. It is high time that the government looks at the norms of openness and research, rather than dubbing it as suspicious activity in preparation of overthrowing the government. By relying on such abysmal thinking, the government and academic institutions would only be piled up with incompetent opportunists making the government the biggest obstruction in its own policies. Disaster management needs openness and, more than anything else, to be liberated from the fortress of the NDMA and hold the hands of communities and researchers.

The writer is president, NAPSIPAG Disaster Research Group and a former Professor at Jawaharlal Nehru University, Delhi. The views expressed are personal.

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ASSEMBLY POLL BUGLE DROWNS OUT FARMERS’ PROTESTS, CHINA AND COVID-19

Priya Sahgal

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Modi 1234

Although the dates are still to be announced, preparations for the next round of Assembly polls are well and truly underway. The Prime Minister is getting into campaign mode and is expected to hit West Bengal with a blitzkrieg of rallies from next month. Since Mamata Banerjee’s stronghold is the BJP’s next target, expect to see him concentrate here the most, as well as Assam, a state the BJP hopes to retain despite the anti-CAA and NRC protests

In fact, most analysts agree that the CAA and NRC could backfire against the BJP in the Assam polls (hence the delay in framing the rules), but the Congress still has to get its act together post-Tarun Gogoi’s demise. And therein lies political salvation for the BJP. However, unlike West Bengal, the BJP has an able general leading the campaign in the resourceful Hemanta Biswa Sarma and a tried and tested CM face in Sarbanda Sonowal, hence that state is not high on the PM’s in-tray. West Bengal however is.

Which is why we see the Home Minister literally camping in the state, managing the campaign (along with the many defections from the TMC). And the PM is expected to bring the final push with his spate of rallies. However, from all accounts CM Mamata Banerjee is fighting hard and this would not be an easy state to wrest away. The anti-TMC vote too is divided with the Congress and the Left fighting against her. If—and this is a very big ask—the BJP does manage to wrest the state away from her, it won’t be because of a walk over from Didi. A fifteen-year anti-incumbency may however tilt the balance against her.

In Kerala—another state going to the polls, the BJP has a leader but lacks a campaign. With the “Metro Man” joining the BJP and more or less offering himself as the party’s CM face, the saffron party is back in the reckoning, even if it’s only for the benefit of political pundits. Puducherry has already seen an upset for the Congress even before the elections and there is talk that the Modi-led government at the Centre may impose Governor’s rule and delay the elections by another six months. 

Which leaves us with Tamil Nadu, a state where the BJP has little presence except as a junior partner to whoever rules the AIADMK. Right now, it is a seesaw between OPS and EPS but with Sasikala’s release and return that dynamics may change but perhaps not in time for the state polls. And with the DMK in the driver’s seat, the fate of the AIADMK may or may not matter in the coming Assembly elections. 

So, in the end, amidst all this poll talk—where are the issues that dominated the narrative for all of 2020. I am, of course, referring to Covid, China and the farmers’ protests. The Tikait brothers have said that they will campaign in West Bengal but will it be a poll issue there? Probably not. 

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