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JUNE 15, 2019 RASHTRAPATI BHAVAN, NEW DELHI NATIONAL INSTITUTION FOR TRANSFORMING INDIA FIFTH MEETING OF THE GOVERNING COUNCIL
Transcript
Page 1: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

JUNE 15, 2019RASHTRAPATI BHAVAN, NEW DELHI

NATIONAL INSTITUTION FOR TRANSFORMING INDIA

FIFTH MEETINGOF THEGOVERNINGCOUNCIL

Page 2: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

Page 3: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

Fifth Meetingof the Governing CouncilJune 15, 2019

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

Page 4: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

Page 5: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

INDEX

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

S. No. Topic Page No.

1. AGENDA NOTES FOR THE FIFTH MEETING OF GOVERNING COUNCIL 3

2. AGENDA ITEM 1: RAIN-WATER HARVESTING 8

3. AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURES 12

4. AGENDA ITEM 3: ASPIRATIONAL DISTRICTS PROGRAMME – ACHIEVEMENTS AND CHALLENGES 17

5. AGENDA ITEM 4: TRANSFORMING AGRICULTURE: 20 NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act 20

B. Essential Commodities Act (ECA) 24

6. AGENDA ITEM 5: SECURITY RELATED ISSUES 27 WITH SPECIFIC FOCUS ON LWE DISTRICTS:

7. Annexure I 29

8. Annexure II 38

9. Annexure III 42

10. Annexure IV 47

11. Annexure V 63-86

12. Annexure VI 87-90

Page 6: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

Page 7: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

3

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

Page 8: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

4

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

Page 9: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

5

4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

Page 10: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

6

4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

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The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

7

4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

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AGENDA ITEM 1: RAIN-WATER HARVESTINGIntroduction

With growing population in the country, finite natural and essential resources like water are decreasing and it becomes imperative to address the situation. Historically, Rain water Harvesting has been considered to be a simple, viable and eco-friendly method of water conservation and a sustainable solution to recharge the groundwater.

In India, around 80% of utilizable water resource is used in irrigation itself, the efficiency of which is only about 35-38%. The scarcity of water, very often debated upon, is actually due to inadequate water management. The water productivity of food grains is as low as 0.48kg/m3. The storage efficiency is very low, i.e., we are able to store only 36% of the utilizable resources (253 BCM out of 690 BCM for 1310 million people) as compared to developed countries like USA (736 BCM for 326 million people).

Government of India aims at ensuring piped water supply to every rural household by 2024. At present, only 56.58% of the rural population is covered with Piped Water Supply (PWS) through standpost and only 18.33% households have individual tap connections (as on 31.03.2019). The Government of India is committed to support States to provide piped water connection to every rural households by 2024 through integrated water resources management including rainwater harvesting, groundwater recharge and grey wastewater reuse, as appropriate. The five-year programme, entitled Jal Jeevan Mission – Nal se Jal, will be implemented on challenge mode basis and funding to states will be contingent on achievement of outcomes.

1. Rain-water harvesting can be undertaken at three levels:

a) Household Level: Through Roof catchment, Gutters, Down pipes, Rain water/ Storm water drains, Filter Chamber, Storage Tanks/ Pits/ Sumps, Ground Water recharge structures like pit, trench, tube well or combination of above structure.

b) Community Level: Farm Ponds, renovation of traditional water bodies, watershed structures and other alike structures with the help of MGNREGA/CSR Funds.

c) Large Reservoirs/River Basin Projects with Public Investment: There are 5264 reservoirs in the country and 437 reservoirs are under construction. The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) was launched in 2015 wherein 99 projects were taken up, of which 34 AIBP projects are completed till date.

2. Steps taken up by the Centre to encourage Rain-Water Harvesting and Groundwater Recharge:

(a) The Hon’ble Prime Minister has written to all Sarpanches across the country, stressing the importance of the need for taking up water conservation and related measures to optimize the storage of rainwater. The letter is based on the need for local infrastructure solutions for rainwater harvesting and groundwater recharge to meet drinking water, agriculture and other needs. Ministry of Jal Shakti is coordinating this exercise, and have shared guidelines with States to undertake building and cleaning of small ponds in the village for storing rainwater, to construct/install storage tanks at the community or individual level for rainwater, and to undertake other information, education and communication (IEC) activities for community mobilization.

AGENDA FOR THE FIFTH GOVERNING COUNCIL MEETING 2019 The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

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4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

(b) Ministry of Jal Shakti has circulated a Model Bill to all States/UTs to enable them to enact suitable ground water legislation for its regulation and development which includes provision of rain water harvesting. So far, 15 States/UTs have adopted and implemented the ground water legislation on the lines of Model bill. 30 States/UTs have made roof top rain water harvesting mandatory by enacting laws or by formulating rules & regulations or by including provisions in building bye-laws or through suitable Government Orders. The State Governments have to ensure the compliance to these efforts by all stakeholders.

(c) Ministry of Urban Development has circulated its Model Building Bye-Laws (2016) to all State Governments which, inter-alia, incorporates provisions for Rain Water Harvesting. Atal Mission for Rejuvenation and Urban Transformation (AMRUT) mandates the States to formulate a policy and action plan for rain water harvesting structures in all commercial, public buildings and new buildings on plots of 300 sq.m and above. Under Smart Cities Mission, importance is given to rainwater harvesting. So far, 45 Smart Cities have proposed rainwater harvesting projects costing Rs.1,133.6 crore and these projects are at various stages of implementation.

(d) Ministry of Rural Development in consultation and agreement with the Ministry of Jal Shakti and the Ministry of Agriculture & Farmers’ Welfare has developed an actionable framework for Natural Resources Management (NRM), titled “Mission Water Conservation” to ensure gainful utilization of funds. The Framework strives to ensure synergies in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), Integrated Watershed Management Programme (IWMP) and Command Area Development & Water Management (CAD&WM), given their common objectives. Types of common works undertaken under these programmes/schemes are water conservation and management, water harvesting, soil and moisture conservation, groundwater recharge, flood protection, land development, Command Area Development & Watershed Management.

(e) Central Ground Water Board (CGWB) has prepared a conceptual document titled “Master Plan for Artificial Recharge to Ground Water – 2013” which provides information about area-specific artificial recharge techniques to augment ground water resources based on the availability of source water and capability of subsurface formations to accommodate it. The Master Plan envisages construction of about 1.11 crore artificial recharge/Rainwater harvesting structures in urban and rural areas. The Master Plan is available in public domain and has also been circulated to the State Governments for implementation.

(f) Department of Land Resources is currently implementing 8214 watershed development projects in 28 States covering an area of about 39.07 million ha. under the Watershed Development Component (WDC) of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) principally for development of rainfed portions of net cultivated area and culturable wastelands. The major activities taken up under the WDC-PMKSY, inter-alia, include ridge area treatment, drainage line afforestation, soil and moisture conservation, rain water harvesting, horticulture, and pasture development etc. Since 2015-16, under the scheme, 4.79 lakh water harvesting structures were created / rejuvenated. An additional area of 10.98 lakh ha has been brought under protective irrigation up to 2018-19. The number of farmers benefitted is 21.52 lakh during the said period.

(g) The Ministry of Jal Shakti has suggested all States to adopt water conservation measures like roof top rainwater harvesting, erecting sustainability structures for water conservation etc...

(h) Under MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme), Rainwater Harvesting structures, watershed management works and renovation of traditional water bodies are undertaken to improve the ground water situation. Till date 13,70,174 water related works have been undertaken in the scheme. To bring about the convergence among the schemes-MGNREGS, Pradhan Mantri Krishi Sinchayee Yojna (PMKSY) and Integrated Watershed Management Programme (IWMP), the Ministry of Rural Development has developed Natural Resource Management Framework under MGNREGS within the overall framework of PMKSY.

3. Good Practices of Rainwater Harvesting:

(a) Jabalpur, Indore and Gwalior Municipal Corporations have granted rebate of 6% in property tax in the year in which the construction of rain water harvesting facility has been completed for the owner of the building as an incentive.

(b) NCT Delhi has introduced financial incentives for adopting rainwater harvesting by the Residents Welfare Associations (RWAs) and neighbourhood societies with financial assistance of 50% of the total cost of the project or maximum of Rs. 50,000 on satisfactory completion of the rainwater harvesting structures.

(c) In Hyderabad, Metro Water Supply and Sewerage Board has launched an App "Jalam Jeevam". Consumers already having constructed RWH pits need to download the App and get registered with their respective Consumer Account Numbers (CAN). It provides information about implementation of rainwater harvesting in the city.

(d) Various States are also implementing schemes aimed at water conservation and artificial recharge. Some such schemes are Jalyukt Shivar in Maharashtra, Mukhya Mantri Jal Swavalamban Abhiyan in Rajasthan, NEERU CHETTU in Andhra Pradesh, Mission Kakatiya in Telangana, Sujalam Sufalam in Gujarat, Integrated Water Resource Management and Artificial Recharge Structures Scheme in Karnataka etc.

(e) Under Mukhya Mantri Jal Swavlambhan Abhiyan (MJSA) of Rajasthan more than 4 lakh water harvesting structures are created across the state’s 33 districts. It has resulted in ~5 feet average rise in groundwater levels across 21 districts, a reduction in water tanker dependency, an increase in irrigated area, and a greater focus on water conservation in the largely dry state.

(f) Under Mission Kakatiya, State of Telangana has restored nearly 17,000 minor irrigation tanks which helped in supply of collected rain water to 19 lakh acres of agricultural land. The intervention has helped in increasing the water retention capacity of the sources and also helped in improving the on-farm moisture retention capacity.

(g) Maharasthra under Jalyukt Shivar Abhiyan(JSA) made nearly 11000 villages drought free by creating water harvesting structures. It has also resulted in ground water table rise by 1.5 to 2m.

(h) Other laudable initiatives by States, having a positive impact on the ground water resources include “Punjab Preservation of Subsoil Water Act, 2009” which ban early sowing of paddy nursery and transplantation of saplings and the voluntary scheme of “Pani Bachao, Paisa Kamao (PBPK)” by Government of Punjab to encourage farmers to save electricity and reduce the use of ground water. The ‘Maharashtra Groundwater Development and Management Act, 2009’ prohibits drilling of deep wells within the notified and non-notified areas, for agriculture or industrial usage. It also imposes total prohibition on pumping of ground water from existing deep-wells of depth 60 meters or more in notified areas. However, permission to dig/drill deep well of more than 60 meters’ depth

in notified and non-notified areas for drinking water purpose may be granted by the Maharashtra Ground Water Authority.

4. Way Forward:

(a) Immediate attention on revival and rejuvenation of traditional water bodies and ground water recharge structures may be undertaken in mission mode by removal of encroachments, desiltation, deepening/treatment of catchment area, etc involving all stakeholders including Government, industries, RWAs, individuals, organizations etc.

(b) Provisions for collection and primary treatment of household greywater in small villages through community soak-pits for groundwater recharge. In larger villages, provision for networked collection of household greywater in waste stabilization ponds may be made for further re-use for agriculture. This will have to be accompanied with capacity building of the relevant stakeholders, as well as an IEC Campaign.

(c) Area specific DPRs for artificial recharge of ground water and surface water structures utilizing the master plan for artificial recharge (prepared by Central Ground Water Board) with special focus focused on over-exploited areas may be prepared.

(d) Concerned government functionaries may be asked to effectively enforce provisions relating to rainwater harvesting stipulated in various building by-laws failing which appropriate penal action may be initiated as per the extant provisions/Act. State Governments should ensure that rainwater harvesting structures are just not constructed to get approvals on papers but are fully functional.

(e) Mechanism may be created for incentivizing and awarding the best performing units.

(f) Geo-tagging of water bodies / village ponds may be ensured for enabling the States for taking suitable informed policy intervention.

(g) Bunding of agricultural field to retain rain water.

(h) Water Conservation Awareness activities may be launched to promote water harvesting and water conservation.

(i) To implement drinking water supply schemes as single-village, community managed groundwater based piped water supply in all blocks which are safe from both quality and quality perspective. Each of these schemes to mandatorily have inbuilt point recharge infrastructure, rainwater harvesting and collection of household greywater for groundwater recharge or reuse for agriculture, as appropriate.

(j) Capacity building of all Sarpanches and Panchayat Sachivs to be carried out on integrated water management and sustainable piped water supply schemes facilitated by Ministry of Jal Shakti.

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

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AGENDA ITEM 1: RAIN-WATER HARVESTINGIntroduction

With growing population in the country, finite natural and essential resources like water are decreasing and it becomes imperative to address the situation. Historically, Rain water Harvesting has been considered to be a simple, viable and eco-friendly method of water conservation and a sustainable solution to recharge the groundwater.

In India, around 80% of utilizable water resource is used in irrigation itself, the efficiency of which is only about 35-38%. The scarcity of water, very often debated upon, is actually due to inadequate water management. The water productivity of food grains is as low as 0.48kg/m3. The storage efficiency is very low, i.e., we are able to store only 36% of the utilizable resources (253 BCM out of 690 BCM for 1310 million people) as compared to developed countries like USA (736 BCM for 326 million people).

Government of India aims at ensuring piped water supply to every rural household by 2024. At present, only 56.58% of the rural population is covered with Piped Water Supply (PWS) through standpost and only 18.33% households have individual tap connections (as on 31.03.2019). The Government of India is committed to support States to provide piped water connection to every rural households by 2024 through integrated water resources management including rainwater harvesting, groundwater recharge and grey wastewater reuse, as appropriate. The five-year programme, entitled Jal Jeevan Mission – Nal se Jal, will be implemented on challenge mode basis and funding to states will be contingent on achievement of outcomes.

1. Rain-water harvesting can be undertaken at three levels:

a) Household Level: Through Roof catchment, Gutters, Down pipes, Rain water/ Storm water drains, Filter Chamber, Storage Tanks/ Pits/ Sumps, Ground Water recharge structures like pit, trench, tube well or combination of above structure.

b) Community Level: Farm Ponds, renovation of traditional water bodies, watershed structures and other alike structures with the help of MGNREGA/CSR Funds.

c) Large Reservoirs/River Basin Projects with Public Investment: There are 5264 reservoirs in the country and 437 reservoirs are under construction. The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) was launched in 2015 wherein 99 projects were taken up, of which 34 AIBP projects are completed till date.

2. Steps taken up by the Centre to encourage Rain-Water Harvesting and Groundwater Recharge:

(a) The Hon’ble Prime Minister has written to all Sarpanches across the country, stressing the importance of the need for taking up water conservation and related measures to optimize the storage of rainwater. The letter is based on the need for local infrastructure solutions for rainwater harvesting and groundwater recharge to meet drinking water, agriculture and other needs. Ministry of Jal Shakti is coordinating this exercise, and have shared guidelines with States to undertake building and cleaning of small ponds in the village for storing rainwater, to construct/install storage tanks at the community or individual level for rainwater, and to undertake other information, education and communication (IEC) activities for community mobilization.

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

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4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

(b) Ministry of Jal Shakti has circulated a Model Bill to all States/UTs to enable them to enact suitable ground water legislation for its regulation and development which includes provision of rain water harvesting. So far, 15 States/UTs have adopted and implemented the ground water legislation on the lines of Model bill. 30 States/UTs have made roof top rain water harvesting mandatory by enacting laws or by formulating rules & regulations or by including provisions in building bye-laws or through suitable Government Orders. The State Governments have to ensure the compliance to these efforts by all stakeholders.

(c) Ministry of Urban Development has circulated its Model Building Bye-Laws (2016) to all State Governments which, inter-alia, incorporates provisions for Rain Water Harvesting. Atal Mission for Rejuvenation and Urban Transformation (AMRUT) mandates the States to formulate a policy and action plan for rain water harvesting structures in all commercial, public buildings and new buildings on plots of 300 sq.m and above. Under Smart Cities Mission, importance is given to rainwater harvesting. So far, 45 Smart Cities have proposed rainwater harvesting projects costing Rs.1,133.6 crore and these projects are at various stages of implementation.

(d) Ministry of Rural Development in consultation and agreement with the Ministry of Jal Shakti and the Ministry of Agriculture & Farmers’ Welfare has developed an actionable framework for Natural Resources Management (NRM), titled “Mission Water Conservation” to ensure gainful utilization of funds. The Framework strives to ensure synergies in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), Integrated Watershed Management Programme (IWMP) and Command Area Development & Water Management (CAD&WM), given their common objectives. Types of common works undertaken under these programmes/schemes are water conservation and management, water harvesting, soil and moisture conservation, groundwater recharge, flood protection, land development, Command Area Development & Watershed Management.

(e) Central Ground Water Board (CGWB) has prepared a conceptual document titled “Master Plan for Artificial Recharge to Ground Water – 2013” which provides information about area-specific artificial recharge techniques to augment ground water resources based on the availability of source water and capability of subsurface formations to accommodate it. The Master Plan envisages construction of about 1.11 crore artificial recharge/Rainwater harvesting structures in urban and rural areas. The Master Plan is available in public domain and has also been circulated to the State Governments for implementation.

(f) Department of Land Resources is currently implementing 8214 watershed development projects in 28 States covering an area of about 39.07 million ha. under the Watershed Development Component (WDC) of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) principally for development of rainfed portions of net cultivated area and culturable wastelands. The major activities taken up under the WDC-PMKSY, inter-alia, include ridge area treatment, drainage line afforestation, soil and moisture conservation, rain water harvesting, horticulture, and pasture development etc. Since 2015-16, under the scheme, 4.79 lakh water harvesting structures were created / rejuvenated. An additional area of 10.98 lakh ha has been brought under protective irrigation up to 2018-19. The number of farmers benefitted is 21.52 lakh during the said period.

(g) The Ministry of Jal Shakti has suggested all States to adopt water conservation measures like roof top rainwater harvesting, erecting sustainability structures for water conservation etc...

(h) Under MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme), Rainwater Harvesting structures, watershed management works and renovation of traditional water bodies are undertaken to improve the ground water situation. Till date 13,70,174 water related works have been undertaken in the scheme. To bring about the convergence among the schemes-MGNREGS, Pradhan Mantri Krishi Sinchayee Yojna (PMKSY) and Integrated Watershed Management Programme (IWMP), the Ministry of Rural Development has developed Natural Resource Management Framework under MGNREGS within the overall framework of PMKSY.

3. Good Practices of Rainwater Harvesting:

(a) Jabalpur, Indore and Gwalior Municipal Corporations have granted rebate of 6% in property tax in the year in which the construction of rain water harvesting facility has been completed for the owner of the building as an incentive.

(b) NCT Delhi has introduced financial incentives for adopting rainwater harvesting by the Residents Welfare Associations (RWAs) and neighbourhood societies with financial assistance of 50% of the total cost of the project or maximum of Rs. 50,000 on satisfactory completion of the rainwater harvesting structures.

(c) In Hyderabad, Metro Water Supply and Sewerage Board has launched an App "Jalam Jeevam". Consumers already having constructed RWH pits need to download the App and get registered with their respective Consumer Account Numbers (CAN). It provides information about implementation of rainwater harvesting in the city.

(d) Various States are also implementing schemes aimed at water conservation and artificial recharge. Some such schemes are Jalyukt Shivar in Maharashtra, Mukhya Mantri Jal Swavalamban Abhiyan in Rajasthan, NEERU CHETTU in Andhra Pradesh, Mission Kakatiya in Telangana, Sujalam Sufalam in Gujarat, Integrated Water Resource Management and Artificial Recharge Structures Scheme in Karnataka etc.

(e) Under Mukhya Mantri Jal Swavlambhan Abhiyan (MJSA) of Rajasthan more than 4 lakh water harvesting structures are created across the state’s 33 districts. It has resulted in ~5 feet average rise in groundwater levels across 21 districts, a reduction in water tanker dependency, an increase in irrigated area, and a greater focus on water conservation in the largely dry state.

(f) Under Mission Kakatiya, State of Telangana has restored nearly 17,000 minor irrigation tanks which helped in supply of collected rain water to 19 lakh acres of agricultural land. The intervention has helped in increasing the water retention capacity of the sources and also helped in improving the on-farm moisture retention capacity.

(g) Maharasthra under Jalyukt Shivar Abhiyan(JSA) made nearly 11000 villages drought free by creating water harvesting structures. It has also resulted in ground water table rise by 1.5 to 2m.

(h) Other laudable initiatives by States, having a positive impact on the ground water resources include “Punjab Preservation of Subsoil Water Act, 2009” which ban early sowing of paddy nursery and transplantation of saplings and the voluntary scheme of “Pani Bachao, Paisa Kamao (PBPK)” by Government of Punjab to encourage farmers to save electricity and reduce the use of ground water. The ‘Maharashtra Groundwater Development and Management Act, 2009’ prohibits drilling of deep wells within the notified and non-notified areas, for agriculture or industrial usage. It also imposes total prohibition on pumping of ground water from existing deep-wells of depth 60 meters or more in notified areas. However, permission to dig/drill deep well of more than 60 meters’ depth

in notified and non-notified areas for drinking water purpose may be granted by the Maharashtra Ground Water Authority.

4. Way Forward:

(a) Immediate attention on revival and rejuvenation of traditional water bodies and ground water recharge structures may be undertaken in mission mode by removal of encroachments, desiltation, deepening/treatment of catchment area, etc involving all stakeholders including Government, industries, RWAs, individuals, organizations etc.

(b) Provisions for collection and primary treatment of household greywater in small villages through community soak-pits for groundwater recharge. In larger villages, provision for networked collection of household greywater in waste stabilization ponds may be made for further re-use for agriculture. This will have to be accompanied with capacity building of the relevant stakeholders, as well as an IEC Campaign.

(c) Area specific DPRs for artificial recharge of ground water and surface water structures utilizing the master plan for artificial recharge (prepared by Central Ground Water Board) with special focus focused on over-exploited areas may be prepared.

(d) Concerned government functionaries may be asked to effectively enforce provisions relating to rainwater harvesting stipulated in various building by-laws failing which appropriate penal action may be initiated as per the extant provisions/Act. State Governments should ensure that rainwater harvesting structures are just not constructed to get approvals on papers but are fully functional.

(e) Mechanism may be created for incentivizing and awarding the best performing units.

(f) Geo-tagging of water bodies / village ponds may be ensured for enabling the States for taking suitable informed policy intervention.

(g) Bunding of agricultural field to retain rain water.

(h) Water Conservation Awareness activities may be launched to promote water harvesting and water conservation.

(i) To implement drinking water supply schemes as single-village, community managed groundwater based piped water supply in all blocks which are safe from both quality and quality perspective. Each of these schemes to mandatorily have inbuilt point recharge infrastructure, rainwater harvesting and collection of household greywater for groundwater recharge or reuse for agriculture, as appropriate.

(j) Capacity building of all Sarpanches and Panchayat Sachivs to be carried out on integrated water management and sustainable piped water supply schemes facilitated by Ministry of Jal Shakti.

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

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AGENDA ITEM 1: RAIN-WATER HARVESTINGIntroduction

With growing population in the country, finite natural and essential resources like water are decreasing and it becomes imperative to address the situation. Historically, Rain water Harvesting has been considered to be a simple, viable and eco-friendly method of water conservation and a sustainable solution to recharge the groundwater.

In India, around 80% of utilizable water resource is used in irrigation itself, the efficiency of which is only about 35-38%. The scarcity of water, very often debated upon, is actually due to inadequate water management. The water productivity of food grains is as low as 0.48kg/m3. The storage efficiency is very low, i.e., we are able to store only 36% of the utilizable resources (253 BCM out of 690 BCM for 1310 million people) as compared to developed countries like USA (736 BCM for 326 million people).

Government of India aims at ensuring piped water supply to every rural household by 2024. At present, only 56.58% of the rural population is covered with Piped Water Supply (PWS) through standpost and only 18.33% households have individual tap connections (as on 31.03.2019). The Government of India is committed to support States to provide piped water connection to every rural households by 2024 through integrated water resources management including rainwater harvesting, groundwater recharge and grey wastewater reuse, as appropriate. The five-year programme, entitled Jal Jeevan Mission – Nal se Jal, will be implemented on challenge mode basis and funding to states will be contingent on achievement of outcomes.

1. Rain-water harvesting can be undertaken at three levels:

a) Household Level: Through Roof catchment, Gutters, Down pipes, Rain water/ Storm water drains, Filter Chamber, Storage Tanks/ Pits/ Sumps, Ground Water recharge structures like pit, trench, tube well or combination of above structure.

b) Community Level: Farm Ponds, renovation of traditional water bodies, watershed structures and other alike structures with the help of MGNREGA/CSR Funds.

c) Large Reservoirs/River Basin Projects with Public Investment: There are 5264 reservoirs in the country and 437 reservoirs are under construction. The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) was launched in 2015 wherein 99 projects were taken up, of which 34 AIBP projects are completed till date.

2. Steps taken up by the Centre to encourage Rain-Water Harvesting and Groundwater Recharge:

(a) The Hon’ble Prime Minister has written to all Sarpanches across the country, stressing the importance of the need for taking up water conservation and related measures to optimize the storage of rainwater. The letter is based on the need for local infrastructure solutions for rainwater harvesting and groundwater recharge to meet drinking water, agriculture and other needs. Ministry of Jal Shakti is coordinating this exercise, and have shared guidelines with States to undertake building and cleaning of small ponds in the village for storing rainwater, to construct/install storage tanks at the community or individual level for rainwater, and to undertake other information, education and communication (IEC) activities for community mobilization.

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The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

(b) Ministry of Jal Shakti has circulated a Model Bill to all States/UTs to enable them to enact suitable ground water legislation for its regulation and development which includes provision of rain water harvesting. So far, 15 States/UTs have adopted and implemented the ground water legislation on the lines of Model bill. 30 States/UTs have made roof top rain water harvesting mandatory by enacting laws or by formulating rules & regulations or by including provisions in building bye-laws or through suitable Government Orders. The State Governments have to ensure the compliance to these efforts by all stakeholders.

(c) Ministry of Urban Development has circulated its Model Building Bye-Laws (2016) to all State Governments which, inter-alia, incorporates provisions for Rain Water Harvesting. Atal Mission for Rejuvenation and Urban Transformation (AMRUT) mandates the States to formulate a policy and action plan for rain water harvesting structures in all commercial, public buildings and new buildings on plots of 300 sq.m and above. Under Smart Cities Mission, importance is given to rainwater harvesting. So far, 45 Smart Cities have proposed rainwater harvesting projects costing Rs.1,133.6 crore and these projects are at various stages of implementation.

(d) Ministry of Rural Development in consultation and agreement with the Ministry of Jal Shakti and the Ministry of Agriculture & Farmers’ Welfare has developed an actionable framework for Natural Resources Management (NRM), titled “Mission Water Conservation” to ensure gainful utilization of funds. The Framework strives to ensure synergies in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), Integrated Watershed Management Programme (IWMP) and Command Area Development & Water Management (CAD&WM), given their common objectives. Types of common works undertaken under these programmes/schemes are water conservation and management, water harvesting, soil and moisture conservation, groundwater recharge, flood protection, land development, Command Area Development & Watershed Management.

(e) Central Ground Water Board (CGWB) has prepared a conceptual document titled “Master Plan for Artificial Recharge to Ground Water – 2013” which provides information about area-specific artificial recharge techniques to augment ground water resources based on the availability of source water and capability of subsurface formations to accommodate it. The Master Plan envisages construction of about 1.11 crore artificial recharge/Rainwater harvesting structures in urban and rural areas. The Master Plan is available in public domain and has also been circulated to the State Governments for implementation.

(f) Department of Land Resources is currently implementing 8214 watershed development projects in 28 States covering an area of about 39.07 million ha. under the Watershed Development Component (WDC) of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) principally for development of rainfed portions of net cultivated area and culturable wastelands. The major activities taken up under the WDC-PMKSY, inter-alia, include ridge area treatment, drainage line afforestation, soil and moisture conservation, rain water harvesting, horticulture, and pasture development etc. Since 2015-16, under the scheme, 4.79 lakh water harvesting structures were created / rejuvenated. An additional area of 10.98 lakh ha has been brought under protective irrigation up to 2018-19. The number of farmers benefitted is 21.52 lakh during the said period.

(g) The Ministry of Jal Shakti has suggested all States to adopt water conservation measures like roof top rainwater harvesting, erecting sustainability structures for water conservation etc...

(h) Under MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme), Rainwater Harvesting structures, watershed management works and renovation of traditional water bodies are undertaken to improve the ground water situation. Till date 13,70,174 water related works have been undertaken in the scheme. To bring about the convergence among the schemes-MGNREGS, Pradhan Mantri Krishi Sinchayee Yojna (PMKSY) and Integrated Watershed Management Programme (IWMP), the Ministry of Rural Development has developed Natural Resource Management Framework under MGNREGS within the overall framework of PMKSY.

3. Good Practices of Rainwater Harvesting:

(a) Jabalpur, Indore and Gwalior Municipal Corporations have granted rebate of 6% in property tax in the year in which the construction of rain water harvesting facility has been completed for the owner of the building as an incentive.

(b) NCT Delhi has introduced financial incentives for adopting rainwater harvesting by the Residents Welfare Associations (RWAs) and neighbourhood societies with financial assistance of 50% of the total cost of the project or maximum of Rs. 50,000 on satisfactory completion of the rainwater harvesting structures.

(c) In Hyderabad, Metro Water Supply and Sewerage Board has launched an App "Jalam Jeevam". Consumers already having constructed RWH pits need to download the App and get registered with their respective Consumer Account Numbers (CAN). It provides information about implementation of rainwater harvesting in the city.

(d) Various States are also implementing schemes aimed at water conservation and artificial recharge. Some such schemes are Jalyukt Shivar in Maharashtra, Mukhya Mantri Jal Swavalamban Abhiyan in Rajasthan, NEERU CHETTU in Andhra Pradesh, Mission Kakatiya in Telangana, Sujalam Sufalam in Gujarat, Integrated Water Resource Management and Artificial Recharge Structures Scheme in Karnataka etc.

(e) Under Mukhya Mantri Jal Swavlambhan Abhiyan (MJSA) of Rajasthan more than 4 lakh water harvesting structures are created across the state’s 33 districts. It has resulted in ~5 feet average rise in groundwater levels across 21 districts, a reduction in water tanker dependency, an increase in irrigated area, and a greater focus on water conservation in the largely dry state.

(f) Under Mission Kakatiya, State of Telangana has restored nearly 17,000 minor irrigation tanks which helped in supply of collected rain water to 19 lakh acres of agricultural land. The intervention has helped in increasing the water retention capacity of the sources and also helped in improving the on-farm moisture retention capacity.

(g) Maharasthra under Jalyukt Shivar Abhiyan(JSA) made nearly 11000 villages drought free by creating water harvesting structures. It has also resulted in ground water table rise by 1.5 to 2m.

(h) Other laudable initiatives by States, having a positive impact on the ground water resources include “Punjab Preservation of Subsoil Water Act, 2009” which ban early sowing of paddy nursery and transplantation of saplings and the voluntary scheme of “Pani Bachao, Paisa Kamao (PBPK)” by Government of Punjab to encourage farmers to save electricity and reduce the use of ground water. The ‘Maharashtra Groundwater Development and Management Act, 2009’ prohibits drilling of deep wells within the notified and non-notified areas, for agriculture or industrial usage. It also imposes total prohibition on pumping of ground water from existing deep-wells of depth 60 meters or more in notified areas. However, permission to dig/drill deep well of more than 60 meters’ depth

in notified and non-notified areas for drinking water purpose may be granted by the Maharashtra Ground Water Authority.

4. Way Forward:

(a) Immediate attention on revival and rejuvenation of traditional water bodies and ground water recharge structures may be undertaken in mission mode by removal of encroachments, desiltation, deepening/treatment of catchment area, etc involving all stakeholders including Government, industries, RWAs, individuals, organizations etc.

(b) Provisions for collection and primary treatment of household greywater in small villages through community soak-pits for groundwater recharge. In larger villages, provision for networked collection of household greywater in waste stabilization ponds may be made for further re-use for agriculture. This will have to be accompanied with capacity building of the relevant stakeholders, as well as an IEC Campaign.

(c) Area specific DPRs for artificial recharge of ground water and surface water structures utilizing the master plan for artificial recharge (prepared by Central Ground Water Board) with special focus focused on over-exploited areas may be prepared.

(d) Concerned government functionaries may be asked to effectively enforce provisions relating to rainwater harvesting stipulated in various building by-laws failing which appropriate penal action may be initiated as per the extant provisions/Act. State Governments should ensure that rainwater harvesting structures are just not constructed to get approvals on papers but are fully functional.

(e) Mechanism may be created for incentivizing and awarding the best performing units.

(f) Geo-tagging of water bodies / village ponds may be ensured for enabling the States for taking suitable informed policy intervention.

(g) Bunding of agricultural field to retain rain water.

(h) Water Conservation Awareness activities may be launched to promote water harvesting and water conservation.

(i) To implement drinking water supply schemes as single-village, community managed groundwater based piped water supply in all blocks which are safe from both quality and quality perspective. Each of these schemes to mandatorily have inbuilt point recharge infrastructure, rainwater harvesting and collection of household greywater for groundwater recharge or reuse for agriculture, as appropriate.

(j) Capacity building of all Sarpanches and Panchayat Sachivs to be carried out on integrated water management and sustainable piped water supply schemes facilitated by Ministry of Jal Shakti.

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

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AGENDA ITEM 1: RAIN-WATER HARVESTINGIntroduction

With growing population in the country, finite natural and essential resources like water are decreasing and it becomes imperative to address the situation. Historically, Rain water Harvesting has been considered to be a simple, viable and eco-friendly method of water conservation and a sustainable solution to recharge the groundwater.

In India, around 80% of utilizable water resource is used in irrigation itself, the efficiency of which is only about 35-38%. The scarcity of water, very often debated upon, is actually due to inadequate water management. The water productivity of food grains is as low as 0.48kg/m3. The storage efficiency is very low, i.e., we are able to store only 36% of the utilizable resources (253 BCM out of 690 BCM for 1310 million people) as compared to developed countries like USA (736 BCM for 326 million people).

Government of India aims at ensuring piped water supply to every rural household by 2024. At present, only 56.58% of the rural population is covered with Piped Water Supply (PWS) through standpost and only 18.33% households have individual tap connections (as on 31.03.2019). The Government of India is committed to support States to provide piped water connection to every rural households by 2024 through integrated water resources management including rainwater harvesting, groundwater recharge and grey wastewater reuse, as appropriate. The five-year programme, entitled Jal Jeevan Mission – Nal se Jal, will be implemented on challenge mode basis and funding to states will be contingent on achievement of outcomes.

1. Rain-water harvesting can be undertaken at three levels:

a) Household Level: Through Roof catchment, Gutters, Down pipes, Rain water/ Storm water drains, Filter Chamber, Storage Tanks/ Pits/ Sumps, Ground Water recharge structures like pit, trench, tube well or combination of above structure.

b) Community Level: Farm Ponds, renovation of traditional water bodies, watershed structures and other alike structures with the help of MGNREGA/CSR Funds.

c) Large Reservoirs/River Basin Projects with Public Investment: There are 5264 reservoirs in the country and 437 reservoirs are under construction. The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) was launched in 2015 wherein 99 projects were taken up, of which 34 AIBP projects are completed till date.

2. Steps taken up by the Centre to encourage Rain-Water Harvesting and Groundwater Recharge:

(a) The Hon’ble Prime Minister has written to all Sarpanches across the country, stressing the importance of the need for taking up water conservation and related measures to optimize the storage of rainwater. The letter is based on the need for local infrastructure solutions for rainwater harvesting and groundwater recharge to meet drinking water, agriculture and other needs. Ministry of Jal Shakti is coordinating this exercise, and have shared guidelines with States to undertake building and cleaning of small ponds in the village for storing rainwater, to construct/install storage tanks at the community or individual level for rainwater, and to undertake other information, education and communication (IEC) activities for community mobilization.

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

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4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

(b) Ministry of Jal Shakti has circulated a Model Bill to all States/UTs to enable them to enact suitable ground water legislation for its regulation and development which includes provision of rain water harvesting. So far, 15 States/UTs have adopted and implemented the ground water legislation on the lines of Model bill. 30 States/UTs have made roof top rain water harvesting mandatory by enacting laws or by formulating rules & regulations or by including provisions in building bye-laws or through suitable Government Orders. The State Governments have to ensure the compliance to these efforts by all stakeholders.

(c) Ministry of Urban Development has circulated its Model Building Bye-Laws (2016) to all State Governments which, inter-alia, incorporates provisions for Rain Water Harvesting. Atal Mission for Rejuvenation and Urban Transformation (AMRUT) mandates the States to formulate a policy and action plan for rain water harvesting structures in all commercial, public buildings and new buildings on plots of 300 sq.m and above. Under Smart Cities Mission, importance is given to rainwater harvesting. So far, 45 Smart Cities have proposed rainwater harvesting projects costing Rs.1,133.6 crore and these projects are at various stages of implementation.

(d) Ministry of Rural Development in consultation and agreement with the Ministry of Jal Shakti and the Ministry of Agriculture & Farmers’ Welfare has developed an actionable framework for Natural Resources Management (NRM), titled “Mission Water Conservation” to ensure gainful utilization of funds. The Framework strives to ensure synergies in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), Integrated Watershed Management Programme (IWMP) and Command Area Development & Water Management (CAD&WM), given their common objectives. Types of common works undertaken under these programmes/schemes are water conservation and management, water harvesting, soil and moisture conservation, groundwater recharge, flood protection, land development, Command Area Development & Watershed Management.

(e) Central Ground Water Board (CGWB) has prepared a conceptual document titled “Master Plan for Artificial Recharge to Ground Water – 2013” which provides information about area-specific artificial recharge techniques to augment ground water resources based on the availability of source water and capability of subsurface formations to accommodate it. The Master Plan envisages construction of about 1.11 crore artificial recharge/Rainwater harvesting structures in urban and rural areas. The Master Plan is available in public domain and has also been circulated to the State Governments for implementation.

(f) Department of Land Resources is currently implementing 8214 watershed development projects in 28 States covering an area of about 39.07 million ha. under the Watershed Development Component (WDC) of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) principally for development of rainfed portions of net cultivated area and culturable wastelands. The major activities taken up under the WDC-PMKSY, inter-alia, include ridge area treatment, drainage line afforestation, soil and moisture conservation, rain water harvesting, horticulture, and pasture development etc. Since 2015-16, under the scheme, 4.79 lakh water harvesting structures were created / rejuvenated. An additional area of 10.98 lakh ha has been brought under protective irrigation up to 2018-19. The number of farmers benefitted is 21.52 lakh during the said period.

(g) The Ministry of Jal Shakti has suggested all States to adopt water conservation measures like roof top rainwater harvesting, erecting sustainability structures for water conservation etc...

(h) Under MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme), Rainwater Harvesting structures, watershed management works and renovation of traditional water bodies are undertaken to improve the ground water situation. Till date 13,70,174 water related works have been undertaken in the scheme. To bring about the convergence among the schemes-MGNREGS, Pradhan Mantri Krishi Sinchayee Yojna (PMKSY) and Integrated Watershed Management Programme (IWMP), the Ministry of Rural Development has developed Natural Resource Management Framework under MGNREGS within the overall framework of PMKSY.

3. Good Practices of Rainwater Harvesting:

(a) Jabalpur, Indore and Gwalior Municipal Corporations have granted rebate of 6% in property tax in the year in which the construction of rain water harvesting facility has been completed for the owner of the building as an incentive.

(b) NCT Delhi has introduced financial incentives for adopting rainwater harvesting by the Residents Welfare Associations (RWAs) and neighbourhood societies with financial assistance of 50% of the total cost of the project or maximum of Rs. 50,000 on satisfactory completion of the rainwater harvesting structures.

(c) In Hyderabad, Metro Water Supply and Sewerage Board has launched an App "Jalam Jeevam". Consumers already having constructed RWH pits need to download the App and get registered with their respective Consumer Account Numbers (CAN). It provides information about implementation of rainwater harvesting in the city.

(d) Various States are also implementing schemes aimed at water conservation and artificial recharge. Some such schemes are Jalyukt Shivar in Maharashtra, Mukhya Mantri Jal Swavalamban Abhiyan in Rajasthan, NEERU CHETTU in Andhra Pradesh, Mission Kakatiya in Telangana, Sujalam Sufalam in Gujarat, Integrated Water Resource Management and Artificial Recharge Structures Scheme in Karnataka etc.

(e) Under Mukhya Mantri Jal Swavlambhan Abhiyan (MJSA) of Rajasthan more than 4 lakh water harvesting structures are created across the state’s 33 districts. It has resulted in ~5 feet average rise in groundwater levels across 21 districts, a reduction in water tanker dependency, an increase in irrigated area, and a greater focus on water conservation in the largely dry state.

(f) Under Mission Kakatiya, State of Telangana has restored nearly 17,000 minor irrigation tanks which helped in supply of collected rain water to 19 lakh acres of agricultural land. The intervention has helped in increasing the water retention capacity of the sources and also helped in improving the on-farm moisture retention capacity.

(g) Maharasthra under Jalyukt Shivar Abhiyan(JSA) made nearly 11000 villages drought free by creating water harvesting structures. It has also resulted in ground water table rise by 1.5 to 2m.

(h) Other laudable initiatives by States, having a positive impact on the ground water resources include “Punjab Preservation of Subsoil Water Act, 2009” which ban early sowing of paddy nursery and transplantation of saplings and the voluntary scheme of “Pani Bachao, Paisa Kamao (PBPK)” by Government of Punjab to encourage farmers to save electricity and reduce the use of ground water. The ‘Maharashtra Groundwater Development and Management Act, 2009’ prohibits drilling of deep wells within the notified and non-notified areas, for agriculture or industrial usage. It also imposes total prohibition on pumping of ground water from existing deep-wells of depth 60 meters or more in notified areas. However, permission to dig/drill deep well of more than 60 meters’ depth

in notified and non-notified areas for drinking water purpose may be granted by the Maharashtra Ground Water Authority.

4. Way Forward:

(a) Immediate attention on revival and rejuvenation of traditional water bodies and ground water recharge structures may be undertaken in mission mode by removal of encroachments, desiltation, deepening/treatment of catchment area, etc involving all stakeholders including Government, industries, RWAs, individuals, organizations etc.

(b) Provisions for collection and primary treatment of household greywater in small villages through community soak-pits for groundwater recharge. In larger villages, provision for networked collection of household greywater in waste stabilization ponds may be made for further re-use for agriculture. This will have to be accompanied with capacity building of the relevant stakeholders, as well as an IEC Campaign.

(c) Area specific DPRs for artificial recharge of ground water and surface water structures utilizing the master plan for artificial recharge (prepared by Central Ground Water Board) with special focus focused on over-exploited areas may be prepared.

(d) Concerned government functionaries may be asked to effectively enforce provisions relating to rainwater harvesting stipulated in various building by-laws failing which appropriate penal action may be initiated as per the extant provisions/Act. State Governments should ensure that rainwater harvesting structures are just not constructed to get approvals on papers but are fully functional.

(e) Mechanism may be created for incentivizing and awarding the best performing units.

(f) Geo-tagging of water bodies / village ponds may be ensured for enabling the States for taking suitable informed policy intervention.

(g) Bunding of agricultural field to retain rain water.

(h) Water Conservation Awareness activities may be launched to promote water harvesting and water conservation.

(i) To implement drinking water supply schemes as single-village, community managed groundwater based piped water supply in all blocks which are safe from both quality and quality perspective. Each of these schemes to mandatorily have inbuilt point recharge infrastructure, rainwater harvesting and collection of household greywater for groundwater recharge or reuse for agriculture, as appropriate.

(j) Capacity building of all Sarpanches and Panchayat Sachivs to be carried out on integrated water management and sustainable piped water supply schemes facilitated by Ministry of Jal Shakti.

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

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The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare has been continuously pursuing the States for promotion of e-NAM in the States which are without or non-functional APMC Act including the State of Bihar. The State of Kerala has no APMC Act and now moved ahead in integrating six wholesale markets with e-NAM portal. These States/UTs have been suggested to identify institutional mechanism for promotion of e-NAM and to formulate guidelines for promotion and integration of E-NAM.

E-National Agriculture Market (e-NAM) was launched on 14th April, 2016 with the objective to integrate regulated wholesale market in the country so as to enhance transparency in the trade transaction, ensure better price discovery to the farmers and improve out reach of the farmers to multiple markets and buyers offering the better bids for their produce. The Targeted 585 markets were integrated with e-NAM platform by March 2018. Presently, the Ministry of Agriculture and Farmers Welfare is implementing the project to integrate additional 415 markets with e-NAM portal by 2020, with a target to achieve 1000 E-NAMs by 2020.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

Finance Minister of States or Minister nominated by the State are Members to the GST Council. So far 34 GST Council Meetings, total 1064 decisions were taken by the GST Council. Out of them, 1035 decisions have been implemented while 29 decisions are under implementation. A list of 10 outstanding issues raised by the States is at Annexure III.

(viii) Ministry of Environment, Forest and Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

Subsequent to cancellation of allocation by Hon’ble Supreme Court (vide judgment dated 25th August, 2014, read with order dated 24th September, 2014), the coal mine blocks were duly reallocated by the Ministry of Coal. In the light of the relevant Notification S.O.811 (E) dated 23rd March 2015, MoEF&CC transferred environmental clearances (EC) of 44 nos. of coal mining projects to the fresh allottees/ successful bidders. In case of projects involving forest land and having no stage-I forest clearance for diversion for non-forestry purposes, ECs were not transferred in view of the judgment of Hon’ble Supreme Court in Lafarge Case in July, 2011.

With regard to mine leases (non-coal) expiring in 2020, a draft Notification dated 27th February 2019 has been issued in view of the direction of the Hon’ble Supreme Court to expedite the grant of ECs to the new lessees. The Ministry of Mines has furnished their comments on the draft notification requesting for an interim EC to facilitate seamless transfer of the ECs. After further discussions with the Ministry of Mines, final comments along with the list of the mines to be auctioned are awaited from the Ministry of Mines so that MoEF&CC would be better prepared to address the requirements of issuing EC.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis Free (TB-Free) India by 2025.

An ambitious National Strategic Plan (NSP) 2017-25 is being implemented with a view to identifying all incidences of TB, providing high-quality treatment, achieving epidemiological control and strengthening support systems including enabling policies, empowered institutions and trained human resources. Access to TB care services is being universalized by increasing the Designated TB Microscopy Centres (DMCs) and engaging all clinical establishments. Emergence of drug-resistant

TB is a major concern, which is addressed through expanding and decentralizing Drug Resistant TB Services across the country.

Financial support through Direct Benefit Transfer is being extended to TB patients for improved nutrition under the Nikshay Poshan Yojana (NPY). Comprehensive future plans with well-defined targets are being pursued by the Ministry of Health & Family Welfare through close collaboration and coordination with other ministries, States/UTs, private sector, communities as well as other partners and stakeholders.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

Status Note on Implementation of provisions of AP Reorganisation Act, 2014 is given in Annexure IV.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to States

The Finance Commission receives memoranda in this regard from every State Government. The Finance Commission also visits the States to discuss the same. However, the Department of Expenditure, Ministry of Finance and the NITI Aayog have not received any suggestions from State Governments in this regard.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

• Status of Street Lighting National Programme (SLNP): As on date, EESL has installed over 90 lakh LED street lights across India. 1,502 Urban Local Bodies (ULBs) have been enrolled under SLNP, out of which LED street light installation work in 849 ULBs have been completed and is under progress in 172 ULBs. In total, EESL (0.9 crore) and private LED industry (1 crore) have installed over 1.9 crore LED street lights, thereby exceeding the target of 1.34 crore LED street lights.

State-wise status of LED Street lighting project in Gram Panchayats is as follows:

o Andhra Pradesh: EESL has implemented 20.67 lakh LED Street lights in Gram Panchayats.

o Andaman & Nicobar Islands: EESL has implemented 21,450 LED Street lights in rural areas of the Islands.

o Goa: EESL has implemented 1.66 lakh LED Street lights in Gram Panchayats and Municipalities.

o Telangana: EESL has implemented 30,795 LED street lights in Gram panchayats.

• Installation of LED based lightings in Government Buildings: Till date, EESL has signed agreement for 10,865 Government buildings. Work has been completed in 10,236 buildings and is under progress in 612 buildings.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

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4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

NITI Aayog(Governing Council Secretariat)

Agenda notes for the Fifth Meeting of Governing Council 15th June 2019

1. Confirmation of Minutes of the Fourth Governing Council Meeting held on 17th June 2018 (Annexure-I).

2. Action Taken Report on decisions taken at the Fourth Governing Council Meeting held on 17th June 2018.

The following decisions were taken in the Fourth Governing Council meeting:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State Governments and Union Ministries.

(iii) NITI Aayog to hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

(iv) States to identify 100 steps needed to further enhance Ease of living. NITI Aayog to formalise the Ease of Living Index after consulting States.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management (FRBM) Act, taking a more holistic approach and for further streamlining.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of e-NAM and resolve issues with respect to States without the Agriculture Produce Market Committee (APMC) Act.

(vii) GST Council to compile a list of issues raised by the Chief Ministers and look into them.

(viii) Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

(ix) Ministry of Health & Family Welfare and all States to work in close coordination to achieve a Tuberculosis-Free (TB-Free) India by 2025.

(x) Ministry of Home Affairs to follow up on all commitments made as per the States Reorganisation Act and resolve issues of States of Andhra Pradesh and Telangana.

(xi) States to suggest innovative ideas and outcome-based formulae for the consideration of the Finance Commission for better devolution of funds to the States.

(xii) States to work towards switching to 100% LED lighting for all street lights and in all government buildings, and aim to achieve it by 15th August 2018 or 2nd October 2018.

The Action taken/progress on the above decisions is as follows:

(i) Constitution of a Sub-Group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post-harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be the convener of the group.

NITI Aayog constituted a Sub-Group of Chief Ministers on 19th June, 2018 to suggest the policy approach on coordination of agriculture sector and Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The first meeting of the Sub-Group was held on 12th July 2018. Thereafter, five Regional Workshops were organised by NITI Aayog at Hyderabad, New Delhi, Guwahati and Patna.

Inputs from the Ministry of Rural Development on the draft report were also incorporated and the revised report was submitted on 2nd October, 2018 to the Principal Secretary of the then Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chauhan, who was the Convener of the Sub-Group. However, the report could not be finalised before the Chief Minister demitted office.

(ii) NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

NITI Aayog had compiled the list of issues raised by the Chief Ministers. These were subsequently segregated Ministry-wise and State-wise and circulated to the respective Ministries. NITI Aayog has since been following up with various Ministries/Departments.Wherever feasible, the Ministries/Departments have taken appropriate action on the suggestion of the States both in terms of policy and specific projects.

Keeping in view the suggestions, steps have been taken by NITI Aayog and Central Ministries/ Departments across the entire spectrum of agriculture, animal husbandry, skill development, water conservation, infrastructure projects including irrigation and connectivity, setting up medical and other educational institutions, disaster relief measures, and special initiatives for aspirational districts. Ministries are in touch with the respective State Governments to sort out issues pertaining to specific projects. NITI Aayog continues to pursue with the Ministries/ Departments for action on remaining issues.

(iii) NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top 50 on Ease of Doing Business rankings.

The Department for Promotion of Industry and Internal Trade (DPIIT) handles the matter related to Ease of Doing Business, including improving India’s rank in the World Bank’s Doing Business rankings. India was ranked 142 in 2014 and improved its rank to 77 (a jump of 65 positions in 4 years) in Doing Business report, 2019 released on 31st October, 2018. These rankings are based on the study of Delhi and Mumbai only.

DPIIT also prepares an annual plan on Ease of Doing Business for States and UTs covering a much larger number of reforms and geographical area. This plan is shared with States with a request to implement the same in the States/UT. States/UTs are then ranked based on implementation of this plan. The last rankings were released by DPIIT on 10th July 2018. DPIIT has prepared State Reforms Action Plan for year 2018-19 and shared the same with the States/UTs. A number of Workshops have been organised with States and Union Territories to build their capacity for implementation of these reforms. In year 2018-19 the evaluation will be based solely on the feedback received from industry.

(iv) States to form a committee and identify 100 steps needed to further enhance Ease of living, NITI Aayog to formalise the Ease of Living Index after consulting States.

To further the goal of enhancing the ease of living of citizens, NITI Aayog has developed an Ease of Living Index which is a tool to measure the performance of a district, based on indicators crucial for ensuring a decent living standard. 44 measurable indicators have been divided into three major categories – Basic Needs, Elements of Welfare and Scope of Human Betterment.

The ‘Basic Needs’ pillar includes indicators referring to factors necessary for human survival such as safe and livable housing facilities. Under ‘Elements of Welfare’, the Index covers factors that are important building blocks like economic empowerment and higher education. The third pillar ‘Scope of Human Betterment’ encompasses elements that provide greater opportunities to individuals for living a dignified life, including personal rights and governance.

(v) Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

Based on the recommendations of the N K Singh Committee, the FRBM Act, 2003 has been amended (vide the Act 13 of 2018). The key amendments include – putting medium-term ceilings for government debt by 31st March 2025; limiting fiscal deficit to 3.0 percent of GDP by 31st March 2021; removing Revenue Deficit and Effective Revenue Deficit as parameters for fiscal outcomes; providing for flexibility for necessary deviations from fiscal deficit targets; etc.

It has been decided to include Extra-Budgetary Resources (EBR) in Central Government Debt. EBRs are raised by Public Sector Undertakings, which are repaid from Government budget. A robust accounting and reporting mechanism is also being developed to estimate outstanding EBRs. It has also been decided to impose a cap on EBRs and progressively phase it out. Efforts were made to streamline expenditure planning in medium term. Consultations were held with Ministries to understand their expenditure commitments and unavoidable expenditure commitments of Ministries/ Departments were sought to be incorporated in their Medium Term Expenditure Framework (MTEF) Statements. Several recommendations were also made to the Fifteenth Finance Commission on Fiscal Management, Borrowings, Disclosure of financial information etc. Some of the key recommendations are as follows:

• The Commission should define the Debt and GDP both clearly for the purpose of working out Debt to GDP ratio consistently for both the Centre and the States, and also its consolidation in the General Government. Some adjustments would also be needed on the States’ Debt and Liabilities. Needless to say, the States’ liabilities to the Centre need to be excluded from the general Government debt to avoid double counting.

• States will need to amend their FRBM acts to provide for bringing the Debt to GDP ratio to 20% of their GSDP by 2024-25.

• Some suggestions for States’ borrowing made to Finance Commission- publication of monthly accounts; incentivising setting up their Debt Management Offices; an institutional system to coordinate their market borrowings with that of the Centre including transfer of responsibility of approval under Article 293(3) to Department of Economic Affairs; tight definition of States’ borrowings to include any borrowings made by their agencies for public expenditure; and authorizing Centre to regulate.

(vi) Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

Page 17: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

13

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

Ministry/Department RoleMinistry of Drinking Water Provision of drinking water in drought affected areasand Sanitation Department of Food and Ensuring implementation of National Food Security Act Public Distribution (NFSA) and functioning of Public Distribution System (PDS)Department of Rural Development Employment - Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and other Rural Development works.Ministry of Jal Shakti Overall Water Resources management inter-alia surface and groundwater management, irrigation, flood control and rural drinking water & sanitationMinistry of Women & Child Integrated Child Development Services (ICDS) SchemeDevelopment Ministry of Finance Agriculture credit and release of assistance from State Disaster Response Fund (SDRF)/National Disaster Response Fund (NDRF)Ministry of Health & Family Welfare Support maintenance of health and hygiene standards in drought affected districts/areasDepartment of Animal Husbandry, Animal health and related relief measuresDairying & Fisheries

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

Page 18: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

14

4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

Page 19: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

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4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

Page 20: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

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4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

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AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

17

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

3. Development as mass movement:

a) The programme has successfully turned development into a mass movement within a short span of one year. The programme has become a platform for philanthropies and civil society organisations to make a difference. Apart from capacity building, these organisations focus on improving outcomes through focussed social and behavioural change communication.

b) The Central Ministries have worked on Aspirational Districts Programme in close coordination with NITI Aayog in the last one year. Special initiatives have been taken such as Extended Gram Swaraj Abhiyan (EGSA) by the Ministry of Rural Development for the saturation of seven pro-poor schemes, viz. PM Ujjwala Yojana, PM Sahaj Bijli Har Ghar Yojana, Ujala Scheme, PM Jan-Dhan Yojana, PM Jeevan-Jyoti Bima Yojana and PM Suraksha Bima Yojana in a time bound manner in the Aspirational Districts during June-August 2018. Nearly 750 officers of the Central Government were put on the ambitious job of saturating almost 49,000 villages in 112 ‘Aspirational Districts’.

c) Central Ministries have accorded priority to these districts and have taken series of initiatives to improve performance in indicators in respective sectors. For instance, the Ministry of Agriculture and Farmer’s Welfare launched the Krishi Kalyan Abhiyaan from 1st June, 2018 till 31st July, 2018 in 25 villages in each district and replicated the same in October December 2018; Ministry of Women and Child Development has special focus on these districts under on-going Poshan Abhiyaan: Ministry of Health and Family Welfare has identified them as high priority districts in National Health Mission (NHM) and is also setting up community wellness centre in these districts. Ministry of School Education has focussed on learning outcomes and basic facilities in schools. Similarly, different programmes aimed at providing basic infrastructure like sanitation, road, rural electricity etc. have a focused approach towards these districts.

4. Programme Impact

a) During last one year, good progress was recorded by the Districts in the key performance indicators, ranging from Uttar Pradesh (56%) to Maharashtra (32%). For instance, in the share of Pregnant Women Registered in 1st Trimester, the top five districts have registered an increase from an average 35-40% to 80%. The share of Institutional Deliveries rose from an average 50% to 93%. For new-borns breast-fed within one hour of birth, the share increased from 45-50% to close to 100%. The share of fully immunized increased from 20-50% share previously to close to 90%.

b) In education, the focus has been on improving learning outcomes. The average score for language and mathematics for class 3, 5 and 8 has shown remarkable increase. This has been made possible due to surprise tests being conducted by third parties on a quarterly basis. This had led to teachers and parents actively participating in the learning process.

c) In the agriculture and water resources, water bodies rejuvenated under MGNREGA and area under micro-irrigation has increased substantially.

d) Likewise, for financial inclusion, the beneficiaries for MUDRA loan disbursement and for Atal Pension Yojana have doubled.

e) Lastly, on creating basic infrastructure, almost all districts have reached universal access to household electricity connection, 100+ districts have individual household latrines and 40 districts have 100% access to drinking water.

5. Additional Special initiatives for Aspirational Districts

a) In February 2019, Government of India approved a special initiative of Rs. 974 cr under this programme where districts would receive additional allocation every month on challenge method for taking innovative and critical projects in sectors under focus. The additional allocation under challenge method would be allocated to Districts on the basis of rank secured in making progress to improve the key performance indicators.

b) In addition to this, Central Public Sector Enterprises (CPSEs) have been advised to spend their CSR fund in the thematic areas of Health and education with preference to Aspirational Districts.

6. Role of States

In view of above, States may adopt appropriate measures to rapidly transform the aspirational districts, especially in the following areas:

a) Filling up of vacancies: For improving outcomes in health, nutrition and education etc. it is important that vacancies existing in these districts are filled up on priority. Similarly, for agriculture transformation, it is imperative that existing vacancies in district and block level officials are filled up.

b) Posting of dynamic officers in these districts with stable tenure: These districts are relatively remote and difficult and hence posting of dynamic officials with stable tenure is of utmost necessity to undertake the transformation that has been envisaged.

c) Close coordination between Central and the State Prabhari Officers: The experience of State and central Prabhari officers is required to assist the DMs for rapid progress. State Prabhari officers are important link in this programme as many constraints can be addressed through them. State Prabhari officers may closely guide the districts in selection and implementation of projects funded by CSR/special programme of Niti Aayog.

d) Allocation of untied fund to districts and providing requisite flexibility to districts: A few States like Jharkhand, Maharashtra have taken initiative to allocate untied funds to Aspirational districts in view of challenges faced by them. Similarly, since the launch of these initiatives, States have accorded flexibility to district administration concerned to meet their challenges like temporary filling up of posts through short time hiring etc. States are requested to review the challenges faced in these districts with a view to impart requisite resources and flexibility.

e) Use of Aspirational District Programme template to transform most under-developed blocks: as the programme with a robust monitoring mechanism has emerged as a successful template for development, the same can be used for identification of under-developed block/ Panchayat for calibrating the development effort. A few States have already taken steps towards this. States may expand this template at block level with a resolve to quickly transform the most challenging block.

f) Raising awareness of the programme: Initiatives like VHS&D or setting up of Community Wellness Centre, construction/ installation of smart classrooms, toilet and electricity in all schools etc. would have maximum impact if local community is involved and people at large are aware of the benefit of the programme. For this, States may create a robust rural communication strategy in consultation with Niti Aayog.

g) Monitoring performance of Aspirational Districts: Each State may ensure a robust arrangement for monitoring the performance of these districts under the leadership of Hon’ble Chief Ministers and take appropriate policy measures to address the challenges faced by them.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

AGENDA ITEM 3: ASPIRATIONAL DISTRICTS PROGRAMME – ACHIEVEMENTS AND CHALLENGES

Introduction

Aspirational Districts Programme launched in January 2018, is based on the core principle of ‘Sabka Saath, Sabka Vikas’ i.e. ‘development for all’. The initiative aims to rapidly transform the lives of people in the under-developed pockets of the country in a time bound manner. 117 such districts across 28 states were identified in a transparent manner where a rapid transformation in the field of health and nutrition, education, agriculture and water management, financial inclusion, skill development and basic infrastructure is currently underway. West Bengal, where 5 districts were identified, has not joined the programme and as such, it is being implemented in 112 districts. This includes 35 districts affected by Left Wing Extremism. List of districts is at Annexure-II. Detailed presentation on performance in aspirational districts is at Annexure V.

1. Focus Areas

The programme focuses on following sectors (weight attached to each sector in measuring progress and ranking the districts are also indicated:

• Health & Nutrition (30%)

• Education (30%)

• Agriculture & Water Resource Management (20%)

• Financial inclusion & Skill development (10%)

• Basic infrastructure. (10%)

There are 49 indicators across these sectors on which emphasis have been laid. In basic infrastructure, road connectivity, sanitation, housing electricity to rural household, internet connectivity at Gram Panchayat level, and availability of potable water in rural areas are included.

2. Data Driven Governance

a) A real-time monitoring dashboard has been developed to capture data on 49 indicators with 81 data-points. The dashboard under the domain name ‘Champions of Change’ is live since 1st April 2018 for the district administration to enter the data. This 24* 7 web based application is dynamic in nature and calculates the delta ranking of performance of the district over the previous period. The idea is to promote competition among the districts so that they strive for rapid transformation and improved rankings.

b) On April 1, 2018, NITI Aayog released the baseline ranking of these districts which allowed the districts to ascertain their status in these sectors so that they can aspire to become the best district in the State and eventually the best in the country. The dynamic dashboard captures the performance of districts and shows their ranking in real time basis.

c) In order to maintain the credibility of the data entered in the dashboard, the programme envisages 3rd party data validation. In addition to data validation, tests are conducted to assess the learning outcomes of children in Languages and Mathematics.

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

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AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

3. Development as mass movement:

a) The programme has successfully turned development into a mass movement within a short span of one year. The programme has become a platform for philanthropies and civil society organisations to make a difference. Apart from capacity building, these organisations focus on improving outcomes through focussed social and behavioural change communication.

b) The Central Ministries have worked on Aspirational Districts Programme in close coordination with NITI Aayog in the last one year. Special initiatives have been taken such as Extended Gram Swaraj Abhiyan (EGSA) by the Ministry of Rural Development for the saturation of seven pro-poor schemes, viz. PM Ujjwala Yojana, PM Sahaj Bijli Har Ghar Yojana, Ujala Scheme, PM Jan-Dhan Yojana, PM Jeevan-Jyoti Bima Yojana and PM Suraksha Bima Yojana in a time bound manner in the Aspirational Districts during June-August 2018. Nearly 750 officers of the Central Government were put on the ambitious job of saturating almost 49,000 villages in 112 ‘Aspirational Districts’.

c) Central Ministries have accorded priority to these districts and have taken series of initiatives to improve performance in indicators in respective sectors. For instance, the Ministry of Agriculture and Farmer’s Welfare launched the Krishi Kalyan Abhiyaan from 1st June, 2018 till 31st July, 2018 in 25 villages in each district and replicated the same in October December 2018; Ministry of Women and Child Development has special focus on these districts under on-going Poshan Abhiyaan: Ministry of Health and Family Welfare has identified them as high priority districts in National Health Mission (NHM) and is also setting up community wellness centre in these districts. Ministry of School Education has focussed on learning outcomes and basic facilities in schools. Similarly, different programmes aimed at providing basic infrastructure like sanitation, road, rural electricity etc. have a focused approach towards these districts.

4. Programme Impact

a) During last one year, good progress was recorded by the Districts in the key performance indicators, ranging from Uttar Pradesh (56%) to Maharashtra (32%). For instance, in the share of Pregnant Women Registered in 1st Trimester, the top five districts have registered an increase from an average 35-40% to 80%. The share of Institutional Deliveries rose from an average 50% to 93%. For new-borns breast-fed within one hour of birth, the share increased from 45-50% to close to 100%. The share of fully immunized increased from 20-50% share previously to close to 90%.

b) In education, the focus has been on improving learning outcomes. The average score for language and mathematics for class 3, 5 and 8 has shown remarkable increase. This has been made possible due to surprise tests being conducted by third parties on a quarterly basis. This had led to teachers and parents actively participating in the learning process.

c) In the agriculture and water resources, water bodies rejuvenated under MGNREGA and area under micro-irrigation has increased substantially.

d) Likewise, for financial inclusion, the beneficiaries for MUDRA loan disbursement and for Atal Pension Yojana have doubled.

e) Lastly, on creating basic infrastructure, almost all districts have reached universal access to household electricity connection, 100+ districts have individual household latrines and 40 districts have 100% access to drinking water.

5. Additional Special initiatives for Aspirational Districts

a) In February 2019, Government of India approved a special initiative of Rs. 974 cr under this programme where districts would receive additional allocation every month on challenge method for taking innovative and critical projects in sectors under focus. The additional allocation under challenge method would be allocated to Districts on the basis of rank secured in making progress to improve the key performance indicators.

b) In addition to this, Central Public Sector Enterprises (CPSEs) have been advised to spend their CSR fund in the thematic areas of Health and education with preference to Aspirational Districts.

6. Role of States

In view of above, States may adopt appropriate measures to rapidly transform the aspirational districts, especially in the following areas:

a) Filling up of vacancies: For improving outcomes in health, nutrition and education etc. it is important that vacancies existing in these districts are filled up on priority. Similarly, for agriculture transformation, it is imperative that existing vacancies in district and block level officials are filled up.

b) Posting of dynamic officers in these districts with stable tenure: These districts are relatively remote and difficult and hence posting of dynamic officials with stable tenure is of utmost necessity to undertake the transformation that has been envisaged.

c) Close coordination between Central and the State Prabhari Officers: The experience of State and central Prabhari officers is required to assist the DMs for rapid progress. State Prabhari officers are important link in this programme as many constraints can be addressed through them. State Prabhari officers may closely guide the districts in selection and implementation of projects funded by CSR/special programme of Niti Aayog.

d) Allocation of untied fund to districts and providing requisite flexibility to districts: A few States like Jharkhand, Maharashtra have taken initiative to allocate untied funds to Aspirational districts in view of challenges faced by them. Similarly, since the launch of these initiatives, States have accorded flexibility to district administration concerned to meet their challenges like temporary filling up of posts through short time hiring etc. States are requested to review the challenges faced in these districts with a view to impart requisite resources and flexibility.

e) Use of Aspirational District Programme template to transform most under-developed blocks: as the programme with a robust monitoring mechanism has emerged as a successful template for development, the same can be used for identification of under-developed block/ Panchayat for calibrating the development effort. A few States have already taken steps towards this. States may expand this template at block level with a resolve to quickly transform the most challenging block.

f) Raising awareness of the programme: Initiatives like VHS&D or setting up of Community Wellness Centre, construction/ installation of smart classrooms, toilet and electricity in all schools etc. would have maximum impact if local community is involved and people at large are aware of the benefit of the programme. For this, States may create a robust rural communication strategy in consultation with Niti Aayog.

g) Monitoring performance of Aspirational Districts: Each State may ensure a robust arrangement for monitoring the performance of these districts under the leadership of Hon’ble Chief Ministers and take appropriate policy measures to address the challenges faced by them.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

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4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

AGENDA ITEM 3: ASPIRATIONAL DISTRICTS PROGRAMME – ACHIEVEMENTS AND CHALLENGES

Introduction

Aspirational Districts Programme launched in January 2018, is based on the core principle of ‘Sabka Saath, Sabka Vikas’ i.e. ‘development for all’. The initiative aims to rapidly transform the lives of people in the under-developed pockets of the country in a time bound manner. 117 such districts across 28 states were identified in a transparent manner where a rapid transformation in the field of health and nutrition, education, agriculture and water management, financial inclusion, skill development and basic infrastructure is currently underway. West Bengal, where 5 districts were identified, has not joined the programme and as such, it is being implemented in 112 districts. This includes 35 districts affected by Left Wing Extremism. List of districts is at Annexure-II. Detailed presentation on performance in aspirational districts is at Annexure V.

1. Focus Areas

The programme focuses on following sectors (weight attached to each sector in measuring progress and ranking the districts are also indicated:

• Health & Nutrition (30%)

• Education (30%)

• Agriculture & Water Resource Management (20%)

• Financial inclusion & Skill development (10%)

• Basic infrastructure. (10%)

There are 49 indicators across these sectors on which emphasis have been laid. In basic infrastructure, road connectivity, sanitation, housing electricity to rural household, internet connectivity at Gram Panchayat level, and availability of potable water in rural areas are included.

2. Data Driven Governance

a) A real-time monitoring dashboard has been developed to capture data on 49 indicators with 81 data-points. The dashboard under the domain name ‘Champions of Change’ is live since 1st April 2018 for the district administration to enter the data. This 24* 7 web based application is dynamic in nature and calculates the delta ranking of performance of the district over the previous period. The idea is to promote competition among the districts so that they strive for rapid transformation and improved rankings.

b) On April 1, 2018, NITI Aayog released the baseline ranking of these districts which allowed the districts to ascertain their status in these sectors so that they can aspire to become the best district in the State and eventually the best in the country. The dynamic dashboard captures the performance of districts and shows their ranking in real time basis.

c) In order to maintain the credibility of the data entered in the dashboard, the programme envisages 3rd party data validation. In addition to data validation, tests are conducted to assess the learning outcomes of children in Languages and Mathematics.

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

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AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

3. Development as mass movement:

a) The programme has successfully turned development into a mass movement within a short span of one year. The programme has become a platform for philanthropies and civil society organisations to make a difference. Apart from capacity building, these organisations focus on improving outcomes through focussed social and behavioural change communication.

b) The Central Ministries have worked on Aspirational Districts Programme in close coordination with NITI Aayog in the last one year. Special initiatives have been taken such as Extended Gram Swaraj Abhiyan (EGSA) by the Ministry of Rural Development for the saturation of seven pro-poor schemes, viz. PM Ujjwala Yojana, PM Sahaj Bijli Har Ghar Yojana, Ujala Scheme, PM Jan-Dhan Yojana, PM Jeevan-Jyoti Bima Yojana and PM Suraksha Bima Yojana in a time bound manner in the Aspirational Districts during June-August 2018. Nearly 750 officers of the Central Government were put on the ambitious job of saturating almost 49,000 villages in 112 ‘Aspirational Districts’.

c) Central Ministries have accorded priority to these districts and have taken series of initiatives to improve performance in indicators in respective sectors. For instance, the Ministry of Agriculture and Farmer’s Welfare launched the Krishi Kalyan Abhiyaan from 1st June, 2018 till 31st July, 2018 in 25 villages in each district and replicated the same in October December 2018; Ministry of Women and Child Development has special focus on these districts under on-going Poshan Abhiyaan: Ministry of Health and Family Welfare has identified them as high priority districts in National Health Mission (NHM) and is also setting up community wellness centre in these districts. Ministry of School Education has focussed on learning outcomes and basic facilities in schools. Similarly, different programmes aimed at providing basic infrastructure like sanitation, road, rural electricity etc. have a focused approach towards these districts.

4. Programme Impact

a) During last one year, good progress was recorded by the Districts in the key performance indicators, ranging from Uttar Pradesh (56%) to Maharashtra (32%). For instance, in the share of Pregnant Women Registered in 1st Trimester, the top five districts have registered an increase from an average 35-40% to 80%. The share of Institutional Deliveries rose from an average 50% to 93%. For new-borns breast-fed within one hour of birth, the share increased from 45-50% to close to 100%. The share of fully immunized increased from 20-50% share previously to close to 90%.

b) In education, the focus has been on improving learning outcomes. The average score for language and mathematics for class 3, 5 and 8 has shown remarkable increase. This has been made possible due to surprise tests being conducted by third parties on a quarterly basis. This had led to teachers and parents actively participating in the learning process.

c) In the agriculture and water resources, water bodies rejuvenated under MGNREGA and area under micro-irrigation has increased substantially.

d) Likewise, for financial inclusion, the beneficiaries for MUDRA loan disbursement and for Atal Pension Yojana have doubled.

e) Lastly, on creating basic infrastructure, almost all districts have reached universal access to household electricity connection, 100+ districts have individual household latrines and 40 districts have 100% access to drinking water.

5. Additional Special initiatives for Aspirational Districts

a) In February 2019, Government of India approved a special initiative of Rs. 974 cr under this programme where districts would receive additional allocation every month on challenge method for taking innovative and critical projects in sectors under focus. The additional allocation under challenge method would be allocated to Districts on the basis of rank secured in making progress to improve the key performance indicators.

b) In addition to this, Central Public Sector Enterprises (CPSEs) have been advised to spend their CSR fund in the thematic areas of Health and education with preference to Aspirational Districts.

6. Role of States

In view of above, States may adopt appropriate measures to rapidly transform the aspirational districts, especially in the following areas:

a) Filling up of vacancies: For improving outcomes in health, nutrition and education etc. it is important that vacancies existing in these districts are filled up on priority. Similarly, for agriculture transformation, it is imperative that existing vacancies in district and block level officials are filled up.

b) Posting of dynamic officers in these districts with stable tenure: These districts are relatively remote and difficult and hence posting of dynamic officials with stable tenure is of utmost necessity to undertake the transformation that has been envisaged.

c) Close coordination between Central and the State Prabhari Officers: The experience of State and central Prabhari officers is required to assist the DMs for rapid progress. State Prabhari officers are important link in this programme as many constraints can be addressed through them. State Prabhari officers may closely guide the districts in selection and implementation of projects funded by CSR/special programme of Niti Aayog.

d) Allocation of untied fund to districts and providing requisite flexibility to districts: A few States like Jharkhand, Maharashtra have taken initiative to allocate untied funds to Aspirational districts in view of challenges faced by them. Similarly, since the launch of these initiatives, States have accorded flexibility to district administration concerned to meet their challenges like temporary filling up of posts through short time hiring etc. States are requested to review the challenges faced in these districts with a view to impart requisite resources and flexibility.

e) Use of Aspirational District Programme template to transform most under-developed blocks: as the programme with a robust monitoring mechanism has emerged as a successful template for development, the same can be used for identification of under-developed block/ Panchayat for calibrating the development effort. A few States have already taken steps towards this. States may expand this template at block level with a resolve to quickly transform the most challenging block.

f) Raising awareness of the programme: Initiatives like VHS&D or setting up of Community Wellness Centre, construction/ installation of smart classrooms, toilet and electricity in all schools etc. would have maximum impact if local community is involved and people at large are aware of the benefit of the programme. For this, States may create a robust rural communication strategy in consultation with Niti Aayog.

g) Monitoring performance of Aspirational Districts: Each State may ensure a robust arrangement for monitoring the performance of these districts under the leadership of Hon’ble Chief Ministers and take appropriate policy measures to address the challenges faced by them.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

19

4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

AGENDA ITEM 3: ASPIRATIONAL DISTRICTS PROGRAMME – ACHIEVEMENTS AND CHALLENGES

Introduction

Aspirational Districts Programme launched in January 2018, is based on the core principle of ‘Sabka Saath, Sabka Vikas’ i.e. ‘development for all’. The initiative aims to rapidly transform the lives of people in the under-developed pockets of the country in a time bound manner. 117 such districts across 28 states were identified in a transparent manner where a rapid transformation in the field of health and nutrition, education, agriculture and water management, financial inclusion, skill development and basic infrastructure is currently underway. West Bengal, where 5 districts were identified, has not joined the programme and as such, it is being implemented in 112 districts. This includes 35 districts affected by Left Wing Extremism. List of districts is at Annexure-II. Detailed presentation on performance in aspirational districts is at Annexure V.

1. Focus Areas

The programme focuses on following sectors (weight attached to each sector in measuring progress and ranking the districts are also indicated:

• Health & Nutrition (30%)

• Education (30%)

• Agriculture & Water Resource Management (20%)

• Financial inclusion & Skill development (10%)

• Basic infrastructure. (10%)

There are 49 indicators across these sectors on which emphasis have been laid. In basic infrastructure, road connectivity, sanitation, housing electricity to rural household, internet connectivity at Gram Panchayat level, and availability of potable water in rural areas are included.

2. Data Driven Governance

a) A real-time monitoring dashboard has been developed to capture data on 49 indicators with 81 data-points. The dashboard under the domain name ‘Champions of Change’ is live since 1st April 2018 for the district administration to enter the data. This 24* 7 web based application is dynamic in nature and calculates the delta ranking of performance of the district over the previous period. The idea is to promote competition among the districts so that they strive for rapid transformation and improved rankings.

b) On April 1, 2018, NITI Aayog released the baseline ranking of these districts which allowed the districts to ascertain their status in these sectors so that they can aspire to become the best district in the State and eventually the best in the country. The dynamic dashboard captures the performance of districts and shows their ranking in real time basis.

c) In order to maintain the credibility of the data entered in the dashboard, the programme envisages 3rd party data validation. In addition to data validation, tests are conducted to assess the learning outcomes of children in Languages and Mathematics.

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

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AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

AGENDA ITEM 2: DROUGHT SITUATION AND RELIEF MEASURESIntroduction

Drought affects the overall economy of the country at macro and micro levels, both directly and indirectly. Direct impacts are usually visible in fall in agricultural production, loss of work opportunities, and heightened food insecurity among poor and vulnerable sections; depleted water levels; higher livestock and wildlife mortality; cattle and animal migration; damage to ecosystem from indiscriminate exploitation.

Indirect impacts of drought can be gauged from the reduction in incomes for farmers, labour, and agribusinesses, increased prices for food and fodder, reduction in purchasing capacity and slump in consumption, default on agricultural loans, distress sale of family assets like agricultural land, livestock and jewelry, rural unrest etc. These deleterious impulses have huge negative multiplier effects in the economy and society. The impacts of drought are generally categorized as economic, environmental, and social.

1. Impact of rainfall situation

South-West Monsoon (June to September) contributes to more than 73% of annual rainfall in the country. Timely onset, spatial distribution and total amount of rainfall during the South-West Monsoon are crucial for cultivation of Kharif crops. Monsoon rainfall also replenish ground water and reservoir and thus affect agricultural output in whole of the year. Rainfall, during the months of June and July, is crucial for sowing of Kharif crops. About 56% of the net cultivated area of the country is rainfed, accounting for 44% of food production. Rainfed area is highly prone to pattern and amount of rainfall. Thus, South-West Monsoon rainfall is crucial not only for agriculture production and food security of the country but also for overall economy.

2. Forecast for Monsoon Season 2019+:

Highlights of the Second IMD Long Range Forecast, released on 31.05.2019, are given below:

• Rainfall over the country as a whole for the 2019 South-West Monsoon Season (June to September) is likely to be NORMAL (96% to 104% of the Long Period Average).

• Quantitatively, the monsoon seasonal rainfall for the country a whole is likely to be 96% of LPA, with model error of +4%.

• Region-wise, the seasonal rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over North-East India, all with a model error of +8%.

• The monthly rainfall over the county as whole is likely to be 95% of its LPA during July and 99% of LPA during August – both with a model error of +9%.

• The current weak El Nino conditions over Pacific are likely to continue during the monsoon season with some possibility of these conditions to turn to neutral El Nino Southern Oscillation ( ENSO) condition during the latter part of the monsoon season.

• The South-West Monsoon is likely to set over Kerala on 6th June, 2019.

3. Rainfall during South-West Monsoon (June to September) in 2015-18:

It is a matter of concern that India has received less than normal rainfall continuously for the last five years. This has led to built up of moisture stress and stress on water resources in the country. The situation is severe in some States.

National Disaster Response Fund (NDRF) for natural calamities of severe nature, in accordance with the established procedure and also keeping in view the items and norms in vogue for assistance from SDRF and NDRF(issued by the Ministry of Home Affairs), on receipt of Memorandum from the State Government.

5.2 The allocation of funds under SDRF was substantially increased from Rs. 33580.93 crore during 2010-15 to Rs. 61220.00 crore during 2015-20.

6. Revised Norms for assistance from SDRF/NDRF

The items and norms provide for assistance to the farmers affected by notified natural calamities, including drought. Government of India has comprehensively reviewed the guidelines for norms of assistance under SDRF/NDRF dated 28.11.2013 of Ministry of Home Affairs (MHA) and MHA had issued revised guidelines on 8th April, 2015. In the revised norms, the assistance towards input subsidy for crop loss was enhanced from Rs.4500/- per hectare to Rs.6800/- per hectare under rainfed conditions, from Rs.9000/- to Rs.13500/- per hectare under assured irrigated conditions and from Rs.12000/- to Rs.18000/- per hectare for perennial crops. In addition, farmers having suffered crop loss of 33% or more are now entitled to receive financial assistance in place of a minimum threshold of crop loss of 50% and above, which was applicable earlier.

7. National Disaster Response Fund (NDRF)

On receipt of Memorandum from State Government for central assistance for drought relief, Inter-Ministerial Central Team (IMCT) is constituted, which undertakes visit to the State for assessment of the drought situation and requirement of financial assistance and submits its report. Thereafter, the Sub-Committee of National Executive Committee (SC-NEC), headed by Secretary, DAC&FW, considers the report and recommends financial assistance. The recommendation of SC-NEC is placed before the High Level Committee (HLC), for consideration. HLC comprises of Home Minister, Finance Minister, Agriculture Minister and Planning Minister/VC-NITI Aayog and is serviced by the Disaster Management Division of Ministry of Home Affairs.

8. Manual for Drought Management

8.1 Keeping in view the directions of the Hon’ble Supreme Court in WP(C) No. 857 of 2015 filed by M/s Swaraj Abhiyan on drought related issues, DAC&FW updated and revised the Manual for Drought Management of 2009 and brought out a new Manual for Drought Management in December, 2016, which was applicable from Kharif 2017 season. The Manual, inter-alia, contains Chapter 3 on Drought Declaration, wherein Mandatory and Impact Indicators for declaration of drought have been indicated.

8.2 Some of the State Governments expressed difficulty in implementing the provisions of the Manual, mainly relating to declaration of drought.

8.3 A one-day workshop was organized with the State Governments on 12.03.2018 and the issues raised by the State Governments in implementing the provisions of the Drought Manual were deliberated extensively, followed by a meeting with the Experts. On the basis of the workshop held on 12.03.2018 and with the assistance of Experts, several amendments in the Drought Manual 2016 have been carried out and all the State Governments have been informed of this amendment, vide letter dated 29.05.2018. Further, a separate chapter on Rabi Drought Declaration has also been added as Annexure to Chapter 3 of the Drought Manual on 23.07.2018.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

20

4. Role of Central and State Governments

4.1 Responsibility for monitoring, declaration, relief and mitigation

Drought monitoring, drought declaration, drought relief and drought mitigation involve different agencies at Central and State Government levels. At Central level, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is responsible for drought monitoring and management. A Crisis Management Group (CMG) functions under the chairpersonship of Central Drought Relief Commissioner (Officer of Additional Secretary rank) in the DAC&FW. CMG reviews the drought situation in the country and progress of relief. In addition to this, Crop Weather Watch Group (CWWG) in DAC&FW meets on a weekly basis, during the South-West monsoon period, to review the parameters relating to Agriculture.

4.2 The Manual for Drought Management clearly defines the roles and responsibilities of Central and State Governments. While the role of Central Government is to monitor, review the situation and provide assistance in case of additional requirement of funds requested for by the State Governments, the State and District Administration are responsible for implementation of drought relief and mitigation measures, at ground level.

4.3 Role of other Central Government Ministries/Departments

5. State Disaster Response Fund (SDRF)

5.1 The State Governments are primarily responsible for providing necessary relief in the wake of all natural calamities, including drought. Government of India supplements efforts of State Governments with financial assistance and logistic support. For undertaking relief measures, funds are available with the State Governments in the form of SDRF, which is contributed by the Government of India and State Governments concerned. Central share of SDRF is normally released in two half-yearly installments. Additional financial assistance, over and above SDRF, is considered from

9. Preparedness for Kharif 2019

(a) States have been made aware about the latest know how/ technology during National Conference on Kharif-2019 (25-26 April, 2019).

(b) Area coverage is monitored weekly through Weather Watch Group Meetings as well as Video Conferencing advising the States to take steps according to the prevailing situation.

(c) District Agriculture Contingency Plans for 648 districts have been prepared by ICAR-Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas.

(d) There is a provision of distribution of seeds of contingent crops such as, pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in Rain fed/ drought affected areas under National Food Security Mission (NFSM).

(e) Farmers are being encouraged to insure their crops under Pradhan Mantri Fasal Bima Yojana (PMFBY).

(f) Based on the first stage forecast of IMD for South-West Monsoon, a detailed advisory has been issued to all States/UTs on 25th April, 2019, for reviewing the State’s preparedness in managing any weather related contingency for mitigating the adverse impacts of an aberrant monsoon.

(g) A Review Meeting was held on 30th May, 2019 between DAC&FW and DARE –ICAR for better preparedness.

(h) Second Advisory was issued to the States on 1st June, 2019.

10. Expectations from the States

(a) States to update/fine tune the District Agriculture Contingency Plans.

(b) States to tie-up the availability of seeds and other inputs for implementing the Contingency Plans.

(c) States to select suitable crops and cultivars for promoting less water consuming crops.

(d) States to promote agronomic practices for conservation of moisture.

(e) States to make necessary arrangements for life saving irrigation.

(f) States to restore irrigation infrastructure.

(g) States to make use of technological interventions towards water conservation.

(h) States to extend support to farmers in the form of inputs, credit and extension.

(i) States are at liberty to undertake necessary interventions under flexi funds/local initiatives (up to 25% of funds under Centrally Sponsored Schemes) for distribution of stress tolerant seeds/varieties, in situ conservation, mulching, Pusa hydrogel, lifesaving irrigation, second crop sowing.

(j) States can also keep aside 5-10% of Flexi-Funds under RKVY, for undertaking interventions to minimise the adverse impact of aberrant monsoon on agriculture.

(k) States to line up availability of fodder, water and medicines for Livestock and Poultry.

(l) States must establish Drought Monitoring Centres at State Headquarters, as provided in the Drought Manual.

(m) States to organize district level meetings with line Departments in the first week of June 2019 for reviewing the steps taken towards actual implementation of the District Agriculture Contingency Plans.

(n) States to hold interface meetings with Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) and Indian Council of Agriculture Research (ICAR) in the first fortnight of June, 2019 for better coordination during Kharif season of 2019.

(o) States to sensitize field functionaries of State Agriculture Departments for effective implementation of contingency measures.

(p) States, through effective strategies and timely implementation, and in coordination with Centre, shall endeavour to ensure high production/productivity, inspite of adverse seasonal conditions, if any.

11. Long Term Strategy and Expectations from the States

(a) Need to make concerted efforts for drought proofing with focus on cropping system recommended for drought prone districts/areas, particularly in 151 districts identified by ICAR under National Innovations in Climate Resilient Agriculture’ (NICRA) project.

(b) Create awareness amongst the farmers to avoid water guzzling crops in water scarce areas especially in over exploited areas.

(c) More focused approach is needed for watershed development/ farm ponds/ check dams etc

(d) The Farmers must be educated and demonstrated water conservation technologies in agriculture and conservation of water bodies should be encouraged.

(e) The tube wells, in phased manner, should be converted as precision irrigation systems instead of flood irrigation.

(f) Integrated Farming System (IFS) models developed by the scientists for drought prone areas need to be popularized.

(g) Massive plantation of traditional trees on all type of available land.

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

Page 25: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

21

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

Page 26: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

22

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

Page 27: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

24

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

23

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

Page 28: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

24

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

Page 29: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

25

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

Page 30: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

26

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

Page 31: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

AGENDA ITEM 5: SECURITY RELATED ISSUES WITH SPECIFIC FOCUS ON LWE DISTRICTS:

Background

The Left Wing Extremism (LWE) has been an area of concern for internal security of the country for past several decades. To combat the LWE menace in a holistic manner, Government of India formulated a National Policy and Action Plan in January 2015, which envisages a multi-pronged approach comprising security measures, development measures, ensuring Rights and Entitlements of local communities etc.

The steadfast implementation of the policy has resulted in consistent decline in LWE violence and geographical spread. Violent incidents have declined from a high of 2258 in 2009 to 833 in 2018. The resultant deaths have also declined steadily from 1005 in 2010 to 240 in 2018. The reduction in geographical spread of Left Wing Extremism is reflected in decline in number of SRE districts from 126 districts to just 82.

In spite significant improvement over the years, LWE remains an area of serious concern for internal security of the country. Core areas of LWE influence have gaps in governance, development and lack in basic infrastructure. The Government of India assists the State Governments in every manner possible for strengthening the security apparatus and infrastructure development.

1. Security Interventions by the Ministry of Home Affairs

On the security front, the MHA is supporting the State Governments extensively by way of CAPF Battalions, Helicopter support and India Reserve Battalions (IRBs)/Special India Reserve Battalions (SIRBs) etc. For the purpose funds are provided under Modernisation of Police Force (MPF), Security Related Expenditure (SRE) Scheme and Special Infrastructure Scheme (SIS). Also, along with providing training assistance, intelligence sharing framework has been strengthened and is being upgraded consistently.

2. Development initiatives by various Ministries

(a) Development interventions are made through provision of resources and focused implementation of schemes through line Ministries of the Govt. of India. Huge efforts have been made for improving infrastructure in LWE affected areas. Government envisages construction of around 11000 km of roads in LWE areas with an expenditure of about Rs. 18,000 Crore. Of this, 5500 km of roads have already been constructed. For improving telecom connectivity 2335 mobile towers have been installed and 4072 mobile towers will be installed in the next phase of the project involving an expenditure of around Rs.11000 crore.

(b) To provide further impetus to development and fill critical infrastructure gaps, in the most affected LWE districts, funds are provided to the State Governments under “Special Central Assistance Scheme” at Rs.33.33 crore per annum.

3. Role of the States

The fight against the LWE menace is now in crucial stage and the LWE problem can be reduced to insignificant levels through sustained actions. With the constriction in LWE influence, the Bastar region with contiguous area of Gadchiroli now accounts for 80% Security Forces deaths, 63% civilian deaths and 55% of incidents of LWE violence. The States should now take the responsibility and make a determined effort to deal a death blow to the LWE menace in a time bound manner.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

27

h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

The areas where special thrust from the States is required are:

(a) Capacity Building of Special Forces and State Intelligence Branches (SIBs) of the States so as to be capable of carrying out intelligence-based operations.

(b) Redeployment of CAPFs to fill security vacuum in core areas

(c) Reduce dependence on CAPFs and rely increasingly on State Special Forces, IR Battalions and State Armed Police for counter-LWE operations.

(d) Improved inter-state co-ordination to deny extension and growth opportunities to left wing extremists along inter-state borders.

(e) Separate verticals in CID for speedy and focused investigation of important cases, and also to identify, seize/forfeit illicit properties of LWE cadres.

(f) Posting competent officers with stable tenures.

(g) Improved governance along with continuous efforts for better rail/road communication, education, telecommunication, skill development opportunities, health and other services.

Page 32: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

AGENDA ITEM 4: TRANSFORMING AGRICULTURE: NEED FOR STRUCTURAL REFORMS WITH SPECIAL EMPHASIS ON:

A. Agriculture Produce Marketing Committee (APMC) Act; and

B. Essential Commodities Act, 1955

A. Agriculture Produce Marketing Committee (APMC) Act

1. Transforming Agriculture:

With the target of Doubling Farmers’ Income by the year 2022, Government has been reorienting the agriculture sector by focusing on an income-centeredness which goes beyond achieving merely the targeted production. The income approach focuses on achieving high productivity, reduced cost of cultivation through innovations and adoption of technologies, and remunerative price on the produce, with a view to earn higher profits from farming.

1.1 Initiatives by Union Government

The policy drive by the Government is well represented through various schemes and policies such as:

a) 'Per drop, more crop' initiative under which micro-irrigation is being encouraged for optimal utilization of water.

b) Paramparagat Krishi Vikas Yojana (PKVY) under which organic farming is being promoted.

c) Comprehensive crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) has been launched.

d) To simplify the leasing of farm land, NITI Aayog prepared Model Land Leasing Act, to facilitate states to enact their leasing laws and put the land under productive use by farmers, the idea is to improve farm incomes and ensure greater flow of credit.

e) A progressive and facilitative model APLM Act, 2017, which provides, inter alia , (i) notifying whole state as one unified market; (ii) allowing setting up of private market, farmer-consumer market, direct marketing ; (iii) declaring warehouses/cold storages as market yard; (iv) rationalizing market fee and commission charges ;(v) demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions; (vi) clear provision for e-trading, single point levy of market fee and unified single trading licence. The Government has approved scheme for Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.

f) Keeping with its commitment and dedication for the Annadata, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched in September 2018 with the aim to ensure remunerative prices to the farmers for their produce and more flexibility to the States.

g) And to provide an assured income support to the small and marginal farmers, Government has launched Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Besides, the Government has made several reform in dairying and fisheries sectors and achieved record growth and production of milk and fish during last five years.

AGENDA ITEM 5: SECURITY RELATED ISSUES WITH SPECIFIC FOCUS ON LWE DISTRICTS:

Background

The Left Wing Extremism (LWE) has been an area of concern for internal security of the country for past several decades. To combat the LWE menace in a holistic manner, Government of India formulated a National Policy and Action Plan in January 2015, which envisages a multi-pronged approach comprising security measures, development measures, ensuring Rights and Entitlements of local communities etc.

The steadfast implementation of the policy has resulted in consistent decline in LWE violence and geographical spread. Violent incidents have declined from a high of 2258 in 2009 to 833 in 2018. The resultant deaths have also declined steadily from 1005 in 2010 to 240 in 2018. The reduction in geographical spread of Left Wing Extremism is reflected in decline in number of SRE districts from 126 districts to just 82.

In spite significant improvement over the years, LWE remains an area of serious concern for internal security of the country. Core areas of LWE influence have gaps in governance, development and lack in basic infrastructure. The Government of India assists the State Governments in every manner possible for strengthening the security apparatus and infrastructure development.

1. Security Interventions by the Ministry of Home Affairs

On the security front, the MHA is supporting the State Governments extensively by way of CAPF Battalions, Helicopter support and India Reserve Battalions (IRBs)/Special India Reserve Battalions (SIRBs) etc. For the purpose funds are provided under Modernisation of Police Force (MPF), Security Related Expenditure (SRE) Scheme and Special Infrastructure Scheme (SIS). Also, along with providing training assistance, intelligence sharing framework has been strengthened and is being upgraded consistently.

2. Development initiatives by various Ministries

(a) Development interventions are made through provision of resources and focused implementation of schemes through line Ministries of the Govt. of India. Huge efforts have been made for improving infrastructure in LWE affected areas. Government envisages construction of around 11000 km of roads in LWE areas with an expenditure of about Rs. 18,000 Crore. Of this, 5500 km of roads have already been constructed. For improving telecom connectivity 2335 mobile towers have been installed and 4072 mobile towers will be installed in the next phase of the project involving an expenditure of around Rs.11000 crore.

(b) To provide further impetus to development and fill critical infrastructure gaps, in the most affected LWE districts, funds are provided to the State Governments under “Special Central Assistance Scheme” at Rs.33.33 crore per annum.

3. Role of the States

The fight against the LWE menace is now in crucial stage and the LWE problem can be reduced to insignificant levels through sustained actions. With the constriction in LWE influence, the Bastar region with contiguous area of Gadchiroli now accounts for 80% Security Forces deaths, 63% civilian deaths and 55% of incidents of LWE violence. The States should now take the responsibility and make a determined effort to deal a death blow to the LWE menace in a time bound manner.

Accordingly, as of now there are no stringent controls over these commodities by the Government. Nevertheless, since they are the part of ECA, the possibility of re-imposing restrictions cannot be ruled out if the circumstances warrant. Non-compliance of the same invite stringent punishments including imprisonments which deters large scale investments in the sector. This situation needs to be corrected paving way for greater market forces to ensure supply of essential commodities to the public.

3. Need for amending ECA

As stated earlier, there is a need for strengthening supply chains and encouraging private investment so that wastages are minimal and economies of scale can be achieved. This can be enabled by encouraging modern food processing and retailing chains from across the country/ world. While India has allowed 100% FDI in food retail, this has not resulted in corresponding increases in investments, due to the restrictive and deterring nature of the ECA and its related statutes.

In the present scenario, given the thrust on doubling farmer’s income, storage, processing and value chain distribution mechanisms in scale must be improved by corporatizing and eliminating impediments. All food items should be free for trading, marketing, distribution across the country with Central or State Governments having minimal role in regulating any movement and storage of commodities.

4. Proposal for consideration of States

Although the 2016 order has eased certain aspects that were previously regulated by the ECA, a complete overhaul is required to enable growth and ease of doing business. One way of doing this can be by classifying commodities into two priority categories viz. Priority one, covering drugs, petroleum/ petroleum products and fertilizers; and Priority two, covering foodstuffs and seeds of agriculture produce. While priority one products would continue to witness some controls, priority two commodities may be decontrolled with a caveat that controls may be imposed by Central Government in exceptional circumstances only such as war, matters relating to national security, severe natural calamities/ disasters and inordinate steep fall in production (say 10% or more in a given year) or sharp rise in prices (say 100% or more over previous year). In this context, views of the Governing Council is sought on the following issues:-

a) Whether Essential Commodities Act 1955 and Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 be scrapped altogether and replaced with a modern statute balancing the interests of farmers, consumers and supply chain participants?

b) Alternatively, whether the above categorization (priority one and priority two) of essential commodities may be attempted?

c) Whether emphasis of punishments for contraventions the Statute should be more inclined towards fines/ monetary penalties/ confiscation of goods instead of imprisonment?

Governing Council is requested to kindly give their suggestions on above.

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h) In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive 'Agriculture Export Policy' aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The target is to double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime, strive to double India’s share in world agri exports by integrating with global value chain at the earliest and thereby enable farmers to get benefit of export opportunities in overseas market.

2. Agricultural Marketing:

Agriculture markets in the States/ UTs have been constituted through various state specific legislation. As of now, there are 6946 (as on 31.3.2018) regulated wholesale markets. These markets are not sufficient to meet dynamically changing marketing requirements and meeting the aspirations of farmers for better and competitive price realization. Besides, these APMCs over period of time have become non-transparent & monopolistic.

2.1 Market Regulation and Changes in Agriculture

Agriculture production is becoming increasingly commercialized and marketable surplus is showing more than 3% growth every year since 2001. Despite sizable increase in marketable surplus, change in demand side factors, progress of ICT in all fields and new technologies in logistics and commerce, system of agri-marketing in the country has not changed much in last four decades. It continues to be governed by Agricultural Produce Market Regulation Act (APMRA) during 1960s. It is argued that the Act was relevant when private trade was highly underdeveloped, exploitative, and totally controlled by mercantile power. Marketing monopoly provided to the state under this Act is considered to prevent private investments in agricultural markets. The restrictive legal provisions of the act have prevented new entrants and thus reduced competition.

Consequently, private corporate sector investments in agriculture have remained meager 2.4 per cent of total investments in agriculture. Though agriculture has 17% share in national output but corporate sector invest only 0.4% into agriculture out of their total annual investments in Indian economy. Growth in food processing sector remained below growth in production. During 2011-12 to 2016-17 the sector showed only 0.96% annual increase – with negative growth in years 2012-13 and 2013-14.

2.2 Agriculture Produce Marketing Committee (APMC) Act

In order to overcome the limitations and constraints of present agricultural marketing system, Government of India formulated and circulated model APMC Act, 2003 for adoption by the States /UTs on the recommendation of Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002). The rationale behind direct marketing is that farmers should have the option to sell their produce directly to agribusiness firms, like processor or bulk buyer, at lower transaction cost and in the quality/form as required by the buyers. The Model Act also allowed for contract farming and direct marketing by private trade. Over the last 15 years since circulation of Model APMC Act 2003, most of the States moved ahead to make only partial and minimal reforms, thus there was no noticeable progress in States, except a few States like Maharashtra, Gujarat, Karnataka and Rajasthan.

2.3 Model Act “The---- State/ Union Territory Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017”:

Ministry of Agriculture & Farmers Welfare in consultation with States and NITI Aayog formulated a progressive and facilitative model APLM Act, 2017 and circulated to the States/UTs for adoption to reform the marketing of Agriculture and livestock sectors.

The Model APLM Act 2017 has provision for following changes in APMC Act of the States,

(i) Notifying Whole state as one unified market;

(ii) Allowing setting up of private market, farmer-consumer market, direct marketing;

(iii) Declaring warehouses/cold storages as market yard;

(iv) Rationalizing market fee and commission charges;

(v) Demarcation of powers and functions between Direct of Marketing and MD of Board respectively to carry out regulatory and developmental functions;

(vi) Clear provision for e-trading, single point levy of market fee and unified single trading license.

2.4 Present Status of Model APLM Act 2017

The Model APLM Act, 2017 was circulated to all the States/ UTs in April 2017 for adoption. As on date, the State of Arunachal Pradesh has completely adopted the Model APLM Act, 2017 and rest of the States/ UTs are in various stages of adoption. In the interest of the farmers and creating competitive marketing ecosystem with robust market structure, States/UTs Governments need to complete the adoption process at the earliest.

The Governing Council is requested to give their views on implementation of Model APLM Act 2017 in various states.

3. Development of Rural Haats into Gramin Agricultural Markets (GrAMs)

3.1 Background

A large part of farm produce is sold in Rural haats, known by varied names like haats, shandies, painths and fairs, etc. the number of such haats in the country. These haats numbering 22941 are located in rural and interior areas and serve as focal points to a great majority of the farmers – mostly small and marginal ones, constituting more than 86 % of the total landholdings. Out of existing 22,941 rural haats, 12,760 are under the control of local bodies and Marketing Boards.

As per Union Budget Announcement, 2018-19, Government would develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using Government Schemes such as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act). These GrAMs are to be exempted from regulations of Agriculture Produce Marketing Committee (APMCs) and linked to e-NAM to provide farmers facility to make direct sale to consumers and bulk consumers.

As per budgetary announcement, physical infrastructures are to be developed from the fund of MGNREGS and other Government schemes. Road connectivity from inhabitation to GrAM is to be developed under PMGSY- Phase-III. It was also proposed to set up an Agri-Market Infrastructure Fund (AMIF) with corpus of Rs. 2000 crores.

3.2 Progress

a) Setting up of AMIF for Rs. 2000 crores with NABARD is at the stage of finalisation. Scheme guidelines have already been circulated to the states.

b) To effectively manage, operate and supervise the GrAMs and create institutional mechanism from state down the line to GrAMs, a model guidelines have already been circulated to the states for its adoption.

3.3 Expectations from the State Governments.

a) States need to identify the potential rural haats to develop into GrAMs and also get the DPRs prepared for availing the assistance under AMIF.

b) States need to identify nodal officer and communicate DAC & FW.

c) States may also consider to develop the rural haats by utilising its own fund or the fund available with the Marketing Board, as done in UP.

4. Contract Farming and Adoption of Model Contract Farming Act, 2018

Modernisation of agriculture and small-scale farming require infusion of capital, skill, knowledge and technology into production and risk free marketing. Further, bulk buyers and food processors prefer assured and reliable supply of specific quality. These changes are possible through Contract farming. The concept of Contract Farming (CF) refers to a system of farming in which agro-processing/exporting or trading units enter into a contract with farmer(s) to purchase a specified quantity of any agricultural commodity at a pre-agreed price, although varied forms of contract farming existed in pockets in the country. In the absence of a system of registration of contracts with any authorized agency of the State for verification of the credentials/track record of the sponsoring companies, there are reported cases of farmers being exploited.

4.1 The State/UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 :

To promote and expand Contract farming in the country, a holistic, facilitative and promotional Model Contract Farming Act titled “ The -------- State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” was formulated and released in May, 2018 by Central Ministry of Agriculture for adoption by the States/UTs. The Model Act, inter alia, provides for:

i. Setting up of unbiased state level agency or identifying existing organization/ institution;

ii. Constitution of a “Registering and Agreement Recording Committee” or “designating officer” at district/block/taluka level;

iii. Keeping Contract Farming activity outside the ambit of APMC Act regulation;

iv. Engaging FPOs/FPCs;

v. No change/transfer of farmers’ rights, title ownership, etc ;

vi. Provisioning Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village /panchayat level; and

vii. Catering to a dispute settlement mechanism at the lowest level possible for quick disposal of disputes.

4.2 Advantages of Contract Farming

a) Ensures availability of technologies and capital to contracted farmers, to increase production and productivity of contracted produce.

b) Ensures availability of quality inputs, technical guidance and management skills for farmers.

c) Firms/ Companies, to be assured of the desired quality and quantity of raw agricultural produce.

d) To function as a tool to minimize price risk of farmers, as farmers are assured of the prices to get at the time of harvest.

4.3 Role of States/UTs

a) State of Tamil Nadu has legislated a separate Contract Farming Act.

b) Other States/UTs may consider to adopt the Model Contract Farming and Services Act, 2018.

B. Essential Commodities Act (ECA), 1955

The Essential Commodities Act, 1955 empowers the Government to regulate production, distribution, supply, movement, transportation, prices, storage, trade and commerce etc., in essential commodities by an order which may include provisions for licenses, permits, etc. The Act is enacted under Entry 33 of List 3 (Concurrent) in the Seventh Schedule of the Constitution of India. It regulates essential commodities to maintain or increase their supplies, and for securing their equitable distribution and availability at fair price. At present, there are seven commodities included in the Schedule under the Act- (i) Drugs; (ii) Fertilizer, whether organic, inorganic or mixed; (iii) Foodstuffs, including edible oilseeds and oils; (iv) Hank yarn made wholly from cotton; (v) Petroleum and petroleum products; (vi) Raw jute and jute textiles; (vii) seeds of food-crops, fruits and vegetables, cattle fodder, jute and cotton.

Section 5 of the Act empowers the Central Government to delegate its powers provided under Section 3, to States/UTs and it has been done so since 1978. The Central Government exercises its powers by way of notifying its decisions as orders through the concerned Ministries as per the extant Allocation of Business Rules. Such an order may provide for- regulating the production and manufacture; controlling the sale prices; regulating by licenses, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption; prohibiting the withholding from sale; collecting any information or statistics from producers, manufacturers and dealers; maintaining and producing for inspection such books, accounts and records by any producer/ manufacturer/ dealer relating to their business, etc. The license requirements, renewals thereof and other controls vary from State to State and there is no uniformity.

1. Current Scenario on ECA

Over a period of time, ECA has proved to be a useful tool in making available and curbing inflation in essential commodities (including by preventing hoarding of commodities). This Act provided a tool to regulate various aspects of essential commodities and prescribed stringent punishment to persons engaged in unscrupulous practices. Subsequently, another statute viz. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMSEC) Act, 1980 was enacted. This Act is being implemented by the States/ UTs for prevention of unethical trade practices like hoarding and black-marketing.

The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community. While this helped in preventing such practices, it also resulted in misuse and rent seeking behavior especially as stringent punishments including jail terms were prescribed under the Act which deterred private sector in making large scale investments in transportation and storage of essential commodities especially food items.

However, with a host of measures taken over the last few decades, green revolution, etc., India is today self-sufficient in most commodities including food products. Over the last few years, there is a problem of plenty rather than shortages. Lack of investments in cold storages, food supply chain has resulted in large scale wastages of food items especially in perishable products like fruits and vegetables. As a result, farmers are unable to get remunerative prices of their produce and consumers are saddled with high prices due to inefficient supply chain. ECA has also acted as an impediment in free movement of commodities and impacted ease of doing business. By limiting the freedom to produce, hold, move, distribute and supply, the true economies of scale can never be reached, and significant private sector/ foreign direct investment cannot be attracted.

2. Reforms in ECA

With economic liberalization and implementation of WTO norms, Governments over the last few decades have recognized the need of removing unnecessary restrictions on movement of goods across the country. Accordingly, in order to promote consumer interest and free trade, the number of essential commodities which stood at 70 in 1989 have been reduced to Seven as at present.

Further, as per decisions taken at the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the ECA should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities except rice, wheat, pulses, edible oils/ oilseeds, where States have been permitted to impose some temporary restrictions in order to contain price increase in these commodities.

Subsequently, an order was issued in February 2002 viz. “Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) On Specified Foodstuffs Order, 2002” under which any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products (Namely maida, rava, suji, atta, resultant atta and bran) and hydrogenated vegetable oil or vanaspathi] and would not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955. However, in the wake of sharp rise of prices of certain food items in 2006 and following representation from States, Government kept in abeyance certain provisions of this order for specific commodities from time to time.

In September 2016, the February 2002 order was superseded by another order titled “Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016”. This order allowed for the removal of licensing requirements, stock limits and movement restrictions on certain foodstuffs whereby dealers may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products, paddy, rice, coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato without requiring a permit or license.

The areas where special thrust from the States is required are:

(a) Capacity Building of Special Forces and State Intelligence Branches (SIBs) of the States so as to be capable of carrying out intelligence-based operations.

(b) Redeployment of CAPFs to fill security vacuum in core areas

(c) Reduce dependence on CAPFs and rely increasingly on State Special Forces, IR Battalions and State Armed Police for counter-LWE operations.

(d) Improved inter-state co-ordination to deny extension and growth opportunities to left wing extremists along inter-state borders.

(e) Separate verticals in CID for speedy and focused investigation of important cases, and also to identify, seize/forfeit illicit properties of LWE cadres.

(f) Posting competent officers with stable tenures.

(g) Improved governance along with continuous efforts for better rail/road communication, education, telecommunication, skill development opportunities, health and other services.

Page 33: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

ANNEXURE IMinutes of the Fourth meeting of the Governing Council of NITI Aayog held under the Chairmanship of Prime Minister on 17th June 2018.

The fourth Meeting of the Governing Council of NITI Aayog held under the Chairmanship of the Prime Minister on 17 June 2018 at RBCC, President Secretariat, New Delhi. The meeting was attended by Minister of Home Affairs, Minister of Finance/Railways, Minister of Agriculture & Farmers’ Welfare, Minister of State (I/C) of Planning – as exofficio members; Minister of Road Transport & Highway, Minister of Social Justice & Empowerment, Minister of Human Resource Development as Special Invitees; Minister of Women & Child Development, Minister of Health & Family Welfare, Minister of Rural Development, Minister of State (I/C) of Culture / Environment, Forest and Climate Change, as invitees; Vice Chairman, full time members, CEO, NITI Aayog and senior officials of the Government of India. [Detailed list of participants-Annexure-A]

2. The Agenda Note as circulated in advance to all members of the Governing Council is as follows:

1) Action taken report of last Governing Council Meeting

2) Agriculture Sector – Measures contributing towards doubling of Farmer’s Income

a) E-NAM & Agriculture Marketing reforms

b) Soil Health Card

c) Rural / Agriculture haat

d) MGNREGS and its contribution towards water conservation

3) Ayushman Bharat

a) Health and Wellness Centre

b) Pradhanmantri Rashtriva Swasthya Suraksha Mission

4) Poshan Mission

5) Mission Indradhanush

6) Addressing special development needs of Aspirational Districts

7) Discussion on suggestions received for celebration of 150th birth anniversary of Mahatma Gandhi

3. At the outset, Vice Chairman NITI Aayog, welcomed the Hon’ble Prime Minister, all the Chief Ministers and distinguished guests to the Fourth Governing Council Meeting of the NITI Aayog.

3.1 He wished to place on record the contributions made by his predecessor, Dr. Arvind Panagariya as VC, NITI Aayog. He shared that as Vice Chairman he had visited 19 State capitals over the past nine months, and is committed to visiting all remaining capitals.

3.2 Talking about the extensive work undertaken by NITI during the past year, he mentioned the development of the State indices in three critical sector – water, education and health; establishment of the NITI Forum for the North East; work done on management of water resources in the region; development of the model Act on Land Leasing and the bouquet of measures to ensure MSP procurement in the Kharif season. He also mentioned the framing of the National Medical Council Bill, the National Nutrition Strategy, and Policy papers for Artificial

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Intelligence and Electric Mobility; and work done on promoting innovation across the country through the Atal Innovation Mission which is located inside NITI Aayog.

3.3 He reiterated Government of India and NITI Aayog’s commitment to ensuring farming’s welfare and doubling farmer’s income in the coming years, providing health security to all and correcting social imbalances. He then briefly elucidated some of the measures taken to achieve this.

4. The Prime Minister welcomed all dignitaries. He especially welcomed all new Chief Ministers and other attending the NITI Aayog meeting for the first time. He thanked all those present for taking the time out from their State duties and commitments to come to Delhi. He was happy to note that his conviction that NITI Aayog would become a platform for bringing about transformational Change had been proved right. He congratulated NITI Aayog on the instrumental role it is playing in bringing about structural reforms through various initiatives, as a result of which India is today the world’s fastest growing major economy.

4.1 The Prime Minister said that the Governing Council has approached complex issues of governance as “Team India”, in the spirit of cooperative, competitive federalism. He described the smooth rollout and implementation of GST as a prime example of this.

4.2 The Prime Minister said that Chief Ministers of States had played a key role in policy formulation, through sub-groups and committees on issues such as Swachh Bharat Mission, Digital Transactions, and Skill Development. The recommendations of these sub-groups have been incorporated by various Ministries of the Union Government, and the whole nation is benefiting from their inputs, he said.

4.3 Stating that the country has unique opportunities, even though some challenges remain, the Prime Minister said that the Indian Economy has grown at a healthy rate of 7.7 percent in the fourth quarter of 2017-18. He added that the challenge now is to take this growth rate to double digits, for which many more important steps have to be taken. He said that the vision of a New India by 2022, is now a resolve of the people of our country. In this context, he mentioned the issues on the agenda today, including doubling of farmers income, development of aspirational districts, Ayushman Bharat, Mission Indradhanush, Nutrition Mission and celebrations of the 150th birth anniversary of Mahatma Gandhi.

4.4 The Prime Minister said that 1.5 lakh Health and Wellness Centres are being constructed under Ayushman Bharat. He said about 10 crore families will be provided health assurance worth Rs. 5 lakhs every year. He said a comprehensive approach is being adopted for education, under the Samagra Shiksha Abhiyan.

4.5 The Prime Minister said that schemes such as Mudra Yojana. Jan Dhan Yojana and Stand Up India, are helping in greater financial inclusion. He emphasized the need for tackling economic imbalances on priority. He said that all aspects and parameters of human development need to be addressed and improved upon in the 115 aspirational districts.

4.6 The Prime Minister shared that the Gram Swaraj Abhiyan has emerged as a new model for implementation of schemes and that this has so far been extended to 45,000 villages in the Aspirational Districts. He mentioned the seven important schemes under which universal coverage is targeted: Ujjwala, Saubhagya, Ujala, Jan Dhan, Jeevan Jyoti Yojana, Suraksha Bima Yojana, and Mission Indradhanush. He said this target was recently accomplished in about 17,000 villages and is being extended to the 45,000 villages, under Gram Swaraj Abhiyan now.

4.7 Stating how Sabka Saath, Sabka Vikas attempts to achieve inclusive growth and how Mudra, Jan

Dhan and Stand up India further this goal, he said that India has no shortage of capabilities, capacities and resources, but there is a need to ensure that processes are transparent and the common man is not caught in the net of corruption. He said that in the current financial year, States are receiving over 11 lakh crore rupees from the Centre, which represents an increase of about 6 lakh crore rupees, from the last year of the previous Government.

4.8 The prime Minister said that this gathering today represents the hopes and aspirations of the people of India. He said it is also the responsibility of this gathering to make all efforts to fulfil them

5. The gist of oral submissions and the written speeches of the Chief Ministers are taken on record.

6. The Prime Minister in his closing remarks acknowledged the excellent suggestions made by all Chief Ministers during the discussion.

6.1 He directed NITI Aayog to identify the actionable points for each State as raised by the CMs. He further directed that if required meetings with State officials may he held by NITI Aayog for follow-up on suggestions and further action to be undertaken by respective ministries.

6.2 The issue of implementing eNAM in States which have abolished the APMC Act, as raised by CM Bihar, Should be resolved by NITI Aayog and Department of Agriculture, Cooperation arid Farmers’ Welfare.

6.3 He suggested that just as NITI Aayog has identified 115 aspirational districts in the country, each State should create their own parameters and identify 20 percent most backward blocks in their States. The States should then work towards bringing these aspirational blocks too into the fold of development.

6.4 Speaking on the effects of global warming and the importance Mahatma Gandhi gave to the environment, the Prime Minister appealed that we embrace a zero defect. Zero effect approach and move towards 100% LED lighting for street lights and in all government buildings. He said that we should strive to do this in a time bound manner aiming to achieve it by 15th August or 2nd October.

6.5 He assured all States that the government is committed to fulfilling the provisions under the States’ Reorganisation Act in letter and in spirit.

6.6 Praising the expeditious implementation of GST, the PM said that it will take some time to settle fully, and remaining issues may be taken up by the GST Council.

6.7 The Prime Minister appreciated the progress being made by all States on the metro rail project and said that the government would continue to support it by way of policy.

6.8 Reiterating the issue of falling water table and the importance of micro-irrigation, the Prime Minister suggested that CMs of Gujarat and Punjab, who will be visiting Israel later in the year, should on their return, share insight on the innovative ways for micro-irrigation and water conservation.

6.9 The Prime Minister said that celebrating Guru Nanak Devji’s 550th birthday would be a matter of great inspiration and the government should plan for it.

6.10 The Prime Minister remarked that States may also take initiatives to celebrate their major events linked to the country’s freedom struggle, so that the youth are aware of the same and enriched by it.

6.11 Regarding the suggestion to categorize States based on level of development and incentivizing developed States for work done by them, the Prime Minister said the suggestion may be considered seriously.

6.12 With respect to Fiscal Responsibility and Budget Management Act (FRBM), he asked the Finance Ministry to look into the guidelines and further streamline the same.

6.13 The Prime Minister directed that a Committee comprising CMs of Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim be constituted to explore how MGNREGS can be linked to agriculture, focusing specifically on pre-sowing and post-harvest phases with respect to water conservation and conversion of waste to wealth respectively. CM Madhya Pradesh shall he the convener of the Committee. The recommendations of the committee be shared with NITI Aayog.

6.14 Highlighting the progress made under the flagship schemes – Jan Dhan, Saubhagya Yojana, Ujjwala Yojana and Mission Indradhanush, The Prime Minister called for 100 percent coverage, especially in the 45,000 additional villages under the extended Gram Swaraj Abhiyan and 115 Aspirational Districts, by 15 August 2018. He appealed to CM to extend their support in this endeavor.

6.15 He called upon all CMs to work towards making India free of TB by 2025.

6.16 The Prime Minister reiterated the difference that RuPay cards had made and emphasized on the need to promote them further.

6.17 He mentioned about the need for farmers to be trained on the use and benefits of Soil Health Cards and urged CMs to think further about how soil testing facilities could be upscaled.

6.18 The Prime Minister said that Swachh Bharat Mission is being discussed around the world. In the last four years, 7.70 crore toilets have been constructed. He called upon all present to work towards 100 percent sanitation coverage by 2nd October, 2019, the 150th birth anniversary of Mahatma Gandhi, which would be a “Kaaryanjali” to him.

6.19 He also asked States to consider if an annual “Kachra Utsav” may be held in all schools and cities to promote ‘Waste of Wealth”.

6.20 Speaking on the economy, the Prime Minister said that the world expects India to become a USD 5 trillion economy soon. To realize this goal he suggested that States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

6.21 He encourage States to continue working on improving “Ease of Doing Business” and Stated that NITI may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50.

6.22 He further emphasized on “ease of living” for the common man, as the need of the hour, and appealed to States to form a committee and identify 100 steps needed to further enhance Ease of Living.

6.23 With respect to the Finance Commission, the Prime Minister remarked that States should suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States. For example, suggestions may be provided on incentivizing

reduction in expenditure, reduction in urea consumption or innovative use of technology by States.

6.24 On agriculture, the Prime Minister said that corporate investment in this sector is very low in India. He said States should formulate policies that promote corporate investment in areas such as warehousing, transportation, value addition and food processing etc.

6.25 The Prime Minister said that after agriculture, the mining sector has tremendous potential to generate employment. He said that the mining blocks which have been successfully auctioned, should start production at the earliest. Similarly the central ministries like Ministry of Environment and Forest, should expedite the approval process. He also said District Mineral Fund should be utilized for the upliftment of the poor and the tribals in a big way.

6.26 The Prime Minister called for further debate and consultations on holding simultaneous elections for Lok Sabha and Vidhan Sabhas, in the interest of development, expenditure reduction and better logistics. He urged the States to look into the possibility of having a common voter list for Lok Sabha, Vidhan Sabha and Local Bodies.

6.27 The Prime Minister concluded by thanking the Chief Ministers for their valuable suggestions and time.

7. Decisions taken during the meeting

The following decisions were taken during the deliberations at the meeting:

7.1 Construction of a sub-group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post – harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be convener of the group. The recommendations of the committee shall be acted upon by NITI Aayog and concerned ministries.

7.2 NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

7.3 NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50 on Ease of Doing Business rankings.

7.4 States to form a committee and identify 100 steps needed to further enhance Ease of Living. NITI Aayog to formalize the Ease of Living Index after consulting States.

7.5 Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

7.6 Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

7.7 GST Council to compile a list of issues raised by the Chief Ministers and look into them.

7.8 Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

7.9 Ministry of Health & Family Welfare and all States to work in close coordination to achieve a tuberculosis (TB) free India by 2025.

7.10 Ministry of Home Affairs to follow up on all commitments made in the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

7.11 States to suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States.

7.12 States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

713 State to create their own parameters and identify 20 percent most backward blocks in their States and then work towards bringing these aspirational blocks too into the fold of development.

7.14 States to work towards switching to 100% LED lighting for all street lights and in all government buildings and aim to achieve it by 15th August, 2018 or 2nd October, 2018.

The meeting concluded with a Vote of Thanks to the Chair.

Page 34: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

ANNEXURE IMinutes of the Fourth meeting of the Governing Council of NITI Aayog held under the Chairmanship of Prime Minister on 17th June 2018.

The fourth Meeting of the Governing Council of NITI Aayog held under the Chairmanship of the Prime Minister on 17 June 2018 at RBCC, President Secretariat, New Delhi. The meeting was attended by Minister of Home Affairs, Minister of Finance/Railways, Minister of Agriculture & Farmers’ Welfare, Minister of State (I/C) of Planning – as exofficio members; Minister of Road Transport & Highway, Minister of Social Justice & Empowerment, Minister of Human Resource Development as Special Invitees; Minister of Women & Child Development, Minister of Health & Family Welfare, Minister of Rural Development, Minister of State (I/C) of Culture / Environment, Forest and Climate Change, as invitees; Vice Chairman, full time members, CEO, NITI Aayog and senior officials of the Government of India. [Detailed list of participants-Annexure-A]

2. The Agenda Note as circulated in advance to all members of the Governing Council is as follows:

1) Action taken report of last Governing Council Meeting

2) Agriculture Sector – Measures contributing towards doubling of Farmer’s Income

a) E-NAM & Agriculture Marketing reforms

b) Soil Health Card

c) Rural / Agriculture haat

d) MGNREGS and its contribution towards water conservation

3) Ayushman Bharat

a) Health and Wellness Centre

b) Pradhanmantri Rashtriva Swasthya Suraksha Mission

4) Poshan Mission

5) Mission Indradhanush

6) Addressing special development needs of Aspirational Districts

7) Discussion on suggestions received for celebration of 150th birth anniversary of Mahatma Gandhi

3. At the outset, Vice Chairman NITI Aayog, welcomed the Hon’ble Prime Minister, all the Chief Ministers and distinguished guests to the Fourth Governing Council Meeting of the NITI Aayog.

3.1 He wished to place on record the contributions made by his predecessor, Dr. Arvind Panagariya as VC, NITI Aayog. He shared that as Vice Chairman he had visited 19 State capitals over the past nine months, and is committed to visiting all remaining capitals.

3.2 Talking about the extensive work undertaken by NITI during the past year, he mentioned the development of the State indices in three critical sector – water, education and health; establishment of the NITI Forum for the North East; work done on management of water resources in the region; development of the model Act on Land Leasing and the bouquet of measures to ensure MSP procurement in the Kharif season. He also mentioned the framing of the National Medical Council Bill, the National Nutrition Strategy, and Policy papers for Artificial

30

Intelligence and Electric Mobility; and work done on promoting innovation across the country through the Atal Innovation Mission which is located inside NITI Aayog.

3.3 He reiterated Government of India and NITI Aayog’s commitment to ensuring farming’s welfare and doubling farmer’s income in the coming years, providing health security to all and correcting social imbalances. He then briefly elucidated some of the measures taken to achieve this.

4. The Prime Minister welcomed all dignitaries. He especially welcomed all new Chief Ministers and other attending the NITI Aayog meeting for the first time. He thanked all those present for taking the time out from their State duties and commitments to come to Delhi. He was happy to note that his conviction that NITI Aayog would become a platform for bringing about transformational Change had been proved right. He congratulated NITI Aayog on the instrumental role it is playing in bringing about structural reforms through various initiatives, as a result of which India is today the world’s fastest growing major economy.

4.1 The Prime Minister said that the Governing Council has approached complex issues of governance as “Team India”, in the spirit of cooperative, competitive federalism. He described the smooth rollout and implementation of GST as a prime example of this.

4.2 The Prime Minister said that Chief Ministers of States had played a key role in policy formulation, through sub-groups and committees on issues such as Swachh Bharat Mission, Digital Transactions, and Skill Development. The recommendations of these sub-groups have been incorporated by various Ministries of the Union Government, and the whole nation is benefiting from their inputs, he said.

4.3 Stating that the country has unique opportunities, even though some challenges remain, the Prime Minister said that the Indian Economy has grown at a healthy rate of 7.7 percent in the fourth quarter of 2017-18. He added that the challenge now is to take this growth rate to double digits, for which many more important steps have to be taken. He said that the vision of a New India by 2022, is now a resolve of the people of our country. In this context, he mentioned the issues on the agenda today, including doubling of farmers income, development of aspirational districts, Ayushman Bharat, Mission Indradhanush, Nutrition Mission and celebrations of the 150th birth anniversary of Mahatma Gandhi.

4.4 The Prime Minister said that 1.5 lakh Health and Wellness Centres are being constructed under Ayushman Bharat. He said about 10 crore families will be provided health assurance worth Rs. 5 lakhs every year. He said a comprehensive approach is being adopted for education, under the Samagra Shiksha Abhiyan.

4.5 The Prime Minister said that schemes such as Mudra Yojana. Jan Dhan Yojana and Stand Up India, are helping in greater financial inclusion. He emphasized the need for tackling economic imbalances on priority. He said that all aspects and parameters of human development need to be addressed and improved upon in the 115 aspirational districts.

4.6 The Prime Minister shared that the Gram Swaraj Abhiyan has emerged as a new model for implementation of schemes and that this has so far been extended to 45,000 villages in the Aspirational Districts. He mentioned the seven important schemes under which universal coverage is targeted: Ujjwala, Saubhagya, Ujala, Jan Dhan, Jeevan Jyoti Yojana, Suraksha Bima Yojana, and Mission Indradhanush. He said this target was recently accomplished in about 17,000 villages and is being extended to the 45,000 villages, under Gram Swaraj Abhiyan now.

4.7 Stating how Sabka Saath, Sabka Vikas attempts to achieve inclusive growth and how Mudra, Jan

Dhan and Stand up India further this goal, he said that India has no shortage of capabilities, capacities and resources, but there is a need to ensure that processes are transparent and the common man is not caught in the net of corruption. He said that in the current financial year, States are receiving over 11 lakh crore rupees from the Centre, which represents an increase of about 6 lakh crore rupees, from the last year of the previous Government.

4.8 The prime Minister said that this gathering today represents the hopes and aspirations of the people of India. He said it is also the responsibility of this gathering to make all efforts to fulfil them

5. The gist of oral submissions and the written speeches of the Chief Ministers are taken on record.

6. The Prime Minister in his closing remarks acknowledged the excellent suggestions made by all Chief Ministers during the discussion.

6.1 He directed NITI Aayog to identify the actionable points for each State as raised by the CMs. He further directed that if required meetings with State officials may he held by NITI Aayog for follow-up on suggestions and further action to be undertaken by respective ministries.

6.2 The issue of implementing eNAM in States which have abolished the APMC Act, as raised by CM Bihar, Should be resolved by NITI Aayog and Department of Agriculture, Cooperation arid Farmers’ Welfare.

6.3 He suggested that just as NITI Aayog has identified 115 aspirational districts in the country, each State should create their own parameters and identify 20 percent most backward blocks in their States. The States should then work towards bringing these aspirational blocks too into the fold of development.

6.4 Speaking on the effects of global warming and the importance Mahatma Gandhi gave to the environment, the Prime Minister appealed that we embrace a zero defect. Zero effect approach and move towards 100% LED lighting for street lights and in all government buildings. He said that we should strive to do this in a time bound manner aiming to achieve it by 15th August or 2nd October.

6.5 He assured all States that the government is committed to fulfilling the provisions under the States’ Reorganisation Act in letter and in spirit.

6.6 Praising the expeditious implementation of GST, the PM said that it will take some time to settle fully, and remaining issues may be taken up by the GST Council.

6.7 The Prime Minister appreciated the progress being made by all States on the metro rail project and said that the government would continue to support it by way of policy.

6.8 Reiterating the issue of falling water table and the importance of micro-irrigation, the Prime Minister suggested that CMs of Gujarat and Punjab, who will be visiting Israel later in the year, should on their return, share insight on the innovative ways for micro-irrigation and water conservation.

6.9 The Prime Minister said that celebrating Guru Nanak Devji’s 550th birthday would be a matter of great inspiration and the government should plan for it.

6.10 The Prime Minister remarked that States may also take initiatives to celebrate their major events linked to the country’s freedom struggle, so that the youth are aware of the same and enriched by it.

6.11 Regarding the suggestion to categorize States based on level of development and incentivizing developed States for work done by them, the Prime Minister said the suggestion may be considered seriously.

6.12 With respect to Fiscal Responsibility and Budget Management Act (FRBM), he asked the Finance Ministry to look into the guidelines and further streamline the same.

6.13 The Prime Minister directed that a Committee comprising CMs of Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim be constituted to explore how MGNREGS can be linked to agriculture, focusing specifically on pre-sowing and post-harvest phases with respect to water conservation and conversion of waste to wealth respectively. CM Madhya Pradesh shall he the convener of the Committee. The recommendations of the committee be shared with NITI Aayog.

6.14 Highlighting the progress made under the flagship schemes – Jan Dhan, Saubhagya Yojana, Ujjwala Yojana and Mission Indradhanush, The Prime Minister called for 100 percent coverage, especially in the 45,000 additional villages under the extended Gram Swaraj Abhiyan and 115 Aspirational Districts, by 15 August 2018. He appealed to CM to extend their support in this endeavor.

6.15 He called upon all CMs to work towards making India free of TB by 2025.

6.16 The Prime Minister reiterated the difference that RuPay cards had made and emphasized on the need to promote them further.

6.17 He mentioned about the need for farmers to be trained on the use and benefits of Soil Health Cards and urged CMs to think further about how soil testing facilities could be upscaled.

6.18 The Prime Minister said that Swachh Bharat Mission is being discussed around the world. In the last four years, 7.70 crore toilets have been constructed. He called upon all present to work towards 100 percent sanitation coverage by 2nd October, 2019, the 150th birth anniversary of Mahatma Gandhi, which would be a “Kaaryanjali” to him.

6.19 He also asked States to consider if an annual “Kachra Utsav” may be held in all schools and cities to promote ‘Waste of Wealth”.

6.20 Speaking on the economy, the Prime Minister said that the world expects India to become a USD 5 trillion economy soon. To realize this goal he suggested that States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

6.21 He encourage States to continue working on improving “Ease of Doing Business” and Stated that NITI may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50.

6.22 He further emphasized on “ease of living” for the common man, as the need of the hour, and appealed to States to form a committee and identify 100 steps needed to further enhance Ease of Living.

6.23 With respect to the Finance Commission, the Prime Minister remarked that States should suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States. For example, suggestions may be provided on incentivizing

reduction in expenditure, reduction in urea consumption or innovative use of technology by States.

6.24 On agriculture, the Prime Minister said that corporate investment in this sector is very low in India. He said States should formulate policies that promote corporate investment in areas such as warehousing, transportation, value addition and food processing etc.

6.25 The Prime Minister said that after agriculture, the mining sector has tremendous potential to generate employment. He said that the mining blocks which have been successfully auctioned, should start production at the earliest. Similarly the central ministries like Ministry of Environment and Forest, should expedite the approval process. He also said District Mineral Fund should be utilized for the upliftment of the poor and the tribals in a big way.

6.26 The Prime Minister called for further debate and consultations on holding simultaneous elections for Lok Sabha and Vidhan Sabhas, in the interest of development, expenditure reduction and better logistics. He urged the States to look into the possibility of having a common voter list for Lok Sabha, Vidhan Sabha and Local Bodies.

6.27 The Prime Minister concluded by thanking the Chief Ministers for their valuable suggestions and time.

7. Decisions taken during the meeting

The following decisions were taken during the deliberations at the meeting:

7.1 Construction of a sub-group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post – harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be convener of the group. The recommendations of the committee shall be acted upon by NITI Aayog and concerned ministries.

7.2 NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

7.3 NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50 on Ease of Doing Business rankings.

7.4 States to form a committee and identify 100 steps needed to further enhance Ease of Living. NITI Aayog to formalize the Ease of Living Index after consulting States.

7.5 Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

7.6 Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

7.7 GST Council to compile a list of issues raised by the Chief Ministers and look into them.

7.8 Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

7.9 Ministry of Health & Family Welfare and all States to work in close coordination to achieve a tuberculosis (TB) free India by 2025.

7.10 Ministry of Home Affairs to follow up on all commitments made in the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

7.11 States to suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States.

7.12 States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

713 State to create their own parameters and identify 20 percent most backward blocks in their States and then work towards bringing these aspirational blocks too into the fold of development.

7.14 States to work towards switching to 100% LED lighting for all street lights and in all government buildings and aim to achieve it by 15th August, 2018 or 2nd October, 2018.

The meeting concluded with a Vote of Thanks to the Chair.

Page 35: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

ANNEXURE IMinutes of the Fourth meeting of the Governing Council of NITI Aayog held under the Chairmanship of Prime Minister on 17th June 2018.

The fourth Meeting of the Governing Council of NITI Aayog held under the Chairmanship of the Prime Minister on 17 June 2018 at RBCC, President Secretariat, New Delhi. The meeting was attended by Minister of Home Affairs, Minister of Finance/Railways, Minister of Agriculture & Farmers’ Welfare, Minister of State (I/C) of Planning – as exofficio members; Minister of Road Transport & Highway, Minister of Social Justice & Empowerment, Minister of Human Resource Development as Special Invitees; Minister of Women & Child Development, Minister of Health & Family Welfare, Minister of Rural Development, Minister of State (I/C) of Culture / Environment, Forest and Climate Change, as invitees; Vice Chairman, full time members, CEO, NITI Aayog and senior officials of the Government of India. [Detailed list of participants-Annexure-A]

2. The Agenda Note as circulated in advance to all members of the Governing Council is as follows:

1) Action taken report of last Governing Council Meeting

2) Agriculture Sector – Measures contributing towards doubling of Farmer’s Income

a) E-NAM & Agriculture Marketing reforms

b) Soil Health Card

c) Rural / Agriculture haat

d) MGNREGS and its contribution towards water conservation

3) Ayushman Bharat

a) Health and Wellness Centre

b) Pradhanmantri Rashtriva Swasthya Suraksha Mission

4) Poshan Mission

5) Mission Indradhanush

6) Addressing special development needs of Aspirational Districts

7) Discussion on suggestions received for celebration of 150th birth anniversary of Mahatma Gandhi

3. At the outset, Vice Chairman NITI Aayog, welcomed the Hon’ble Prime Minister, all the Chief Ministers and distinguished guests to the Fourth Governing Council Meeting of the NITI Aayog.

3.1 He wished to place on record the contributions made by his predecessor, Dr. Arvind Panagariya as VC, NITI Aayog. He shared that as Vice Chairman he had visited 19 State capitals over the past nine months, and is committed to visiting all remaining capitals.

3.2 Talking about the extensive work undertaken by NITI during the past year, he mentioned the development of the State indices in three critical sector – water, education and health; establishment of the NITI Forum for the North East; work done on management of water resources in the region; development of the model Act on Land Leasing and the bouquet of measures to ensure MSP procurement in the Kharif season. He also mentioned the framing of the National Medical Council Bill, the National Nutrition Strategy, and Policy papers for Artificial

31

Intelligence and Electric Mobility; and work done on promoting innovation across the country through the Atal Innovation Mission which is located inside NITI Aayog.

3.3 He reiterated Government of India and NITI Aayog’s commitment to ensuring farming’s welfare and doubling farmer’s income in the coming years, providing health security to all and correcting social imbalances. He then briefly elucidated some of the measures taken to achieve this.

4. The Prime Minister welcomed all dignitaries. He especially welcomed all new Chief Ministers and other attending the NITI Aayog meeting for the first time. He thanked all those present for taking the time out from their State duties and commitments to come to Delhi. He was happy to note that his conviction that NITI Aayog would become a platform for bringing about transformational Change had been proved right. He congratulated NITI Aayog on the instrumental role it is playing in bringing about structural reforms through various initiatives, as a result of which India is today the world’s fastest growing major economy.

4.1 The Prime Minister said that the Governing Council has approached complex issues of governance as “Team India”, in the spirit of cooperative, competitive federalism. He described the smooth rollout and implementation of GST as a prime example of this.

4.2 The Prime Minister said that Chief Ministers of States had played a key role in policy formulation, through sub-groups and committees on issues such as Swachh Bharat Mission, Digital Transactions, and Skill Development. The recommendations of these sub-groups have been incorporated by various Ministries of the Union Government, and the whole nation is benefiting from their inputs, he said.

4.3 Stating that the country has unique opportunities, even though some challenges remain, the Prime Minister said that the Indian Economy has grown at a healthy rate of 7.7 percent in the fourth quarter of 2017-18. He added that the challenge now is to take this growth rate to double digits, for which many more important steps have to be taken. He said that the vision of a New India by 2022, is now a resolve of the people of our country. In this context, he mentioned the issues on the agenda today, including doubling of farmers income, development of aspirational districts, Ayushman Bharat, Mission Indradhanush, Nutrition Mission and celebrations of the 150th birth anniversary of Mahatma Gandhi.

4.4 The Prime Minister said that 1.5 lakh Health and Wellness Centres are being constructed under Ayushman Bharat. He said about 10 crore families will be provided health assurance worth Rs. 5 lakhs every year. He said a comprehensive approach is being adopted for education, under the Samagra Shiksha Abhiyan.

4.5 The Prime Minister said that schemes such as Mudra Yojana. Jan Dhan Yojana and Stand Up India, are helping in greater financial inclusion. He emphasized the need for tackling economic imbalances on priority. He said that all aspects and parameters of human development need to be addressed and improved upon in the 115 aspirational districts.

4.6 The Prime Minister shared that the Gram Swaraj Abhiyan has emerged as a new model for implementation of schemes and that this has so far been extended to 45,000 villages in the Aspirational Districts. He mentioned the seven important schemes under which universal coverage is targeted: Ujjwala, Saubhagya, Ujala, Jan Dhan, Jeevan Jyoti Yojana, Suraksha Bima Yojana, and Mission Indradhanush. He said this target was recently accomplished in about 17,000 villages and is being extended to the 45,000 villages, under Gram Swaraj Abhiyan now.

4.7 Stating how Sabka Saath, Sabka Vikas attempts to achieve inclusive growth and how Mudra, Jan

Dhan and Stand up India further this goal, he said that India has no shortage of capabilities, capacities and resources, but there is a need to ensure that processes are transparent and the common man is not caught in the net of corruption. He said that in the current financial year, States are receiving over 11 lakh crore rupees from the Centre, which represents an increase of about 6 lakh crore rupees, from the last year of the previous Government.

4.8 The prime Minister said that this gathering today represents the hopes and aspirations of the people of India. He said it is also the responsibility of this gathering to make all efforts to fulfil them

5. The gist of oral submissions and the written speeches of the Chief Ministers are taken on record.

6. The Prime Minister in his closing remarks acknowledged the excellent suggestions made by all Chief Ministers during the discussion.

6.1 He directed NITI Aayog to identify the actionable points for each State as raised by the CMs. He further directed that if required meetings with State officials may he held by NITI Aayog for follow-up on suggestions and further action to be undertaken by respective ministries.

6.2 The issue of implementing eNAM in States which have abolished the APMC Act, as raised by CM Bihar, Should be resolved by NITI Aayog and Department of Agriculture, Cooperation arid Farmers’ Welfare.

6.3 He suggested that just as NITI Aayog has identified 115 aspirational districts in the country, each State should create their own parameters and identify 20 percent most backward blocks in their States. The States should then work towards bringing these aspirational blocks too into the fold of development.

6.4 Speaking on the effects of global warming and the importance Mahatma Gandhi gave to the environment, the Prime Minister appealed that we embrace a zero defect. Zero effect approach and move towards 100% LED lighting for street lights and in all government buildings. He said that we should strive to do this in a time bound manner aiming to achieve it by 15th August or 2nd October.

6.5 He assured all States that the government is committed to fulfilling the provisions under the States’ Reorganisation Act in letter and in spirit.

6.6 Praising the expeditious implementation of GST, the PM said that it will take some time to settle fully, and remaining issues may be taken up by the GST Council.

6.7 The Prime Minister appreciated the progress being made by all States on the metro rail project and said that the government would continue to support it by way of policy.

6.8 Reiterating the issue of falling water table and the importance of micro-irrigation, the Prime Minister suggested that CMs of Gujarat and Punjab, who will be visiting Israel later in the year, should on their return, share insight on the innovative ways for micro-irrigation and water conservation.

6.9 The Prime Minister said that celebrating Guru Nanak Devji’s 550th birthday would be a matter of great inspiration and the government should plan for it.

6.10 The Prime Minister remarked that States may also take initiatives to celebrate their major events linked to the country’s freedom struggle, so that the youth are aware of the same and enriched by it.

6.11 Regarding the suggestion to categorize States based on level of development and incentivizing developed States for work done by them, the Prime Minister said the suggestion may be considered seriously.

6.12 With respect to Fiscal Responsibility and Budget Management Act (FRBM), he asked the Finance Ministry to look into the guidelines and further streamline the same.

6.13 The Prime Minister directed that a Committee comprising CMs of Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim be constituted to explore how MGNREGS can be linked to agriculture, focusing specifically on pre-sowing and post-harvest phases with respect to water conservation and conversion of waste to wealth respectively. CM Madhya Pradesh shall he the convener of the Committee. The recommendations of the committee be shared with NITI Aayog.

6.14 Highlighting the progress made under the flagship schemes – Jan Dhan, Saubhagya Yojana, Ujjwala Yojana and Mission Indradhanush, The Prime Minister called for 100 percent coverage, especially in the 45,000 additional villages under the extended Gram Swaraj Abhiyan and 115 Aspirational Districts, by 15 August 2018. He appealed to CM to extend their support in this endeavor.

6.15 He called upon all CMs to work towards making India free of TB by 2025.

6.16 The Prime Minister reiterated the difference that RuPay cards had made and emphasized on the need to promote them further.

6.17 He mentioned about the need for farmers to be trained on the use and benefits of Soil Health Cards and urged CMs to think further about how soil testing facilities could be upscaled.

6.18 The Prime Minister said that Swachh Bharat Mission is being discussed around the world. In the last four years, 7.70 crore toilets have been constructed. He called upon all present to work towards 100 percent sanitation coverage by 2nd October, 2019, the 150th birth anniversary of Mahatma Gandhi, which would be a “Kaaryanjali” to him.

6.19 He also asked States to consider if an annual “Kachra Utsav” may be held in all schools and cities to promote ‘Waste of Wealth”.

6.20 Speaking on the economy, the Prime Minister said that the world expects India to become a USD 5 trillion economy soon. To realize this goal he suggested that States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

6.21 He encourage States to continue working on improving “Ease of Doing Business” and Stated that NITI may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50.

6.22 He further emphasized on “ease of living” for the common man, as the need of the hour, and appealed to States to form a committee and identify 100 steps needed to further enhance Ease of Living.

6.23 With respect to the Finance Commission, the Prime Minister remarked that States should suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States. For example, suggestions may be provided on incentivizing

reduction in expenditure, reduction in urea consumption or innovative use of technology by States.

6.24 On agriculture, the Prime Minister said that corporate investment in this sector is very low in India. He said States should formulate policies that promote corporate investment in areas such as warehousing, transportation, value addition and food processing etc.

6.25 The Prime Minister said that after agriculture, the mining sector has tremendous potential to generate employment. He said that the mining blocks which have been successfully auctioned, should start production at the earliest. Similarly the central ministries like Ministry of Environment and Forest, should expedite the approval process. He also said District Mineral Fund should be utilized for the upliftment of the poor and the tribals in a big way.

6.26 The Prime Minister called for further debate and consultations on holding simultaneous elections for Lok Sabha and Vidhan Sabhas, in the interest of development, expenditure reduction and better logistics. He urged the States to look into the possibility of having a common voter list for Lok Sabha, Vidhan Sabha and Local Bodies.

6.27 The Prime Minister concluded by thanking the Chief Ministers for their valuable suggestions and time.

7. Decisions taken during the meeting

The following decisions were taken during the deliberations at the meeting:

7.1 Construction of a sub-group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post – harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be convener of the group. The recommendations of the committee shall be acted upon by NITI Aayog and concerned ministries.

7.2 NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

7.3 NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50 on Ease of Doing Business rankings.

7.4 States to form a committee and identify 100 steps needed to further enhance Ease of Living. NITI Aayog to formalize the Ease of Living Index after consulting States.

7.5 Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

7.6 Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

7.7 GST Council to compile a list of issues raised by the Chief Ministers and look into them.

7.8 Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

7.9 Ministry of Health & Family Welfare and all States to work in close coordination to achieve a tuberculosis (TB) free India by 2025.

7.10 Ministry of Home Affairs to follow up on all commitments made in the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

7.11 States to suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States.

7.12 States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

713 State to create their own parameters and identify 20 percent most backward blocks in their States and then work towards bringing these aspirational blocks too into the fold of development.

7.14 States to work towards switching to 100% LED lighting for all street lights and in all government buildings and aim to achieve it by 15th August, 2018 or 2nd October, 2018.

The meeting concluded with a Vote of Thanks to the Chair.

Page 36: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

ANNEXURE IMinutes of the Fourth meeting of the Governing Council of NITI Aayog held under the Chairmanship of Prime Minister on 17th June 2018.

The fourth Meeting of the Governing Council of NITI Aayog held under the Chairmanship of the Prime Minister on 17 June 2018 at RBCC, President Secretariat, New Delhi. The meeting was attended by Minister of Home Affairs, Minister of Finance/Railways, Minister of Agriculture & Farmers’ Welfare, Minister of State (I/C) of Planning – as exofficio members; Minister of Road Transport & Highway, Minister of Social Justice & Empowerment, Minister of Human Resource Development as Special Invitees; Minister of Women & Child Development, Minister of Health & Family Welfare, Minister of Rural Development, Minister of State (I/C) of Culture / Environment, Forest and Climate Change, as invitees; Vice Chairman, full time members, CEO, NITI Aayog and senior officials of the Government of India. [Detailed list of participants-Annexure-A]

2. The Agenda Note as circulated in advance to all members of the Governing Council is as follows:

1) Action taken report of last Governing Council Meeting

2) Agriculture Sector – Measures contributing towards doubling of Farmer’s Income

a) E-NAM & Agriculture Marketing reforms

b) Soil Health Card

c) Rural / Agriculture haat

d) MGNREGS and its contribution towards water conservation

3) Ayushman Bharat

a) Health and Wellness Centre

b) Pradhanmantri Rashtriva Swasthya Suraksha Mission

4) Poshan Mission

5) Mission Indradhanush

6) Addressing special development needs of Aspirational Districts

7) Discussion on suggestions received for celebration of 150th birth anniversary of Mahatma Gandhi

3. At the outset, Vice Chairman NITI Aayog, welcomed the Hon’ble Prime Minister, all the Chief Ministers and distinguished guests to the Fourth Governing Council Meeting of the NITI Aayog.

3.1 He wished to place on record the contributions made by his predecessor, Dr. Arvind Panagariya as VC, NITI Aayog. He shared that as Vice Chairman he had visited 19 State capitals over the past nine months, and is committed to visiting all remaining capitals.

3.2 Talking about the extensive work undertaken by NITI during the past year, he mentioned the development of the State indices in three critical sector – water, education and health; establishment of the NITI Forum for the North East; work done on management of water resources in the region; development of the model Act on Land Leasing and the bouquet of measures to ensure MSP procurement in the Kharif season. He also mentioned the framing of the National Medical Council Bill, the National Nutrition Strategy, and Policy papers for Artificial

32

Intelligence and Electric Mobility; and work done on promoting innovation across the country through the Atal Innovation Mission which is located inside NITI Aayog.

3.3 He reiterated Government of India and NITI Aayog’s commitment to ensuring farming’s welfare and doubling farmer’s income in the coming years, providing health security to all and correcting social imbalances. He then briefly elucidated some of the measures taken to achieve this.

4. The Prime Minister welcomed all dignitaries. He especially welcomed all new Chief Ministers and other attending the NITI Aayog meeting for the first time. He thanked all those present for taking the time out from their State duties and commitments to come to Delhi. He was happy to note that his conviction that NITI Aayog would become a platform for bringing about transformational Change had been proved right. He congratulated NITI Aayog on the instrumental role it is playing in bringing about structural reforms through various initiatives, as a result of which India is today the world’s fastest growing major economy.

4.1 The Prime Minister said that the Governing Council has approached complex issues of governance as “Team India”, in the spirit of cooperative, competitive federalism. He described the smooth rollout and implementation of GST as a prime example of this.

4.2 The Prime Minister said that Chief Ministers of States had played a key role in policy formulation, through sub-groups and committees on issues such as Swachh Bharat Mission, Digital Transactions, and Skill Development. The recommendations of these sub-groups have been incorporated by various Ministries of the Union Government, and the whole nation is benefiting from their inputs, he said.

4.3 Stating that the country has unique opportunities, even though some challenges remain, the Prime Minister said that the Indian Economy has grown at a healthy rate of 7.7 percent in the fourth quarter of 2017-18. He added that the challenge now is to take this growth rate to double digits, for which many more important steps have to be taken. He said that the vision of a New India by 2022, is now a resolve of the people of our country. In this context, he mentioned the issues on the agenda today, including doubling of farmers income, development of aspirational districts, Ayushman Bharat, Mission Indradhanush, Nutrition Mission and celebrations of the 150th birth anniversary of Mahatma Gandhi.

4.4 The Prime Minister said that 1.5 lakh Health and Wellness Centres are being constructed under Ayushman Bharat. He said about 10 crore families will be provided health assurance worth Rs. 5 lakhs every year. He said a comprehensive approach is being adopted for education, under the Samagra Shiksha Abhiyan.

4.5 The Prime Minister said that schemes such as Mudra Yojana. Jan Dhan Yojana and Stand Up India, are helping in greater financial inclusion. He emphasized the need for tackling economic imbalances on priority. He said that all aspects and parameters of human development need to be addressed and improved upon in the 115 aspirational districts.

4.6 The Prime Minister shared that the Gram Swaraj Abhiyan has emerged as a new model for implementation of schemes and that this has so far been extended to 45,000 villages in the Aspirational Districts. He mentioned the seven important schemes under which universal coverage is targeted: Ujjwala, Saubhagya, Ujala, Jan Dhan, Jeevan Jyoti Yojana, Suraksha Bima Yojana, and Mission Indradhanush. He said this target was recently accomplished in about 17,000 villages and is being extended to the 45,000 villages, under Gram Swaraj Abhiyan now.

4.7 Stating how Sabka Saath, Sabka Vikas attempts to achieve inclusive growth and how Mudra, Jan

Dhan and Stand up India further this goal, he said that India has no shortage of capabilities, capacities and resources, but there is a need to ensure that processes are transparent and the common man is not caught in the net of corruption. He said that in the current financial year, States are receiving over 11 lakh crore rupees from the Centre, which represents an increase of about 6 lakh crore rupees, from the last year of the previous Government.

4.8 The prime Minister said that this gathering today represents the hopes and aspirations of the people of India. He said it is also the responsibility of this gathering to make all efforts to fulfil them

5. The gist of oral submissions and the written speeches of the Chief Ministers are taken on record.

6. The Prime Minister in his closing remarks acknowledged the excellent suggestions made by all Chief Ministers during the discussion.

6.1 He directed NITI Aayog to identify the actionable points for each State as raised by the CMs. He further directed that if required meetings with State officials may he held by NITI Aayog for follow-up on suggestions and further action to be undertaken by respective ministries.

6.2 The issue of implementing eNAM in States which have abolished the APMC Act, as raised by CM Bihar, Should be resolved by NITI Aayog and Department of Agriculture, Cooperation arid Farmers’ Welfare.

6.3 He suggested that just as NITI Aayog has identified 115 aspirational districts in the country, each State should create their own parameters and identify 20 percent most backward blocks in their States. The States should then work towards bringing these aspirational blocks too into the fold of development.

6.4 Speaking on the effects of global warming and the importance Mahatma Gandhi gave to the environment, the Prime Minister appealed that we embrace a zero defect. Zero effect approach and move towards 100% LED lighting for street lights and in all government buildings. He said that we should strive to do this in a time bound manner aiming to achieve it by 15th August or 2nd October.

6.5 He assured all States that the government is committed to fulfilling the provisions under the States’ Reorganisation Act in letter and in spirit.

6.6 Praising the expeditious implementation of GST, the PM said that it will take some time to settle fully, and remaining issues may be taken up by the GST Council.

6.7 The Prime Minister appreciated the progress being made by all States on the metro rail project and said that the government would continue to support it by way of policy.

6.8 Reiterating the issue of falling water table and the importance of micro-irrigation, the Prime Minister suggested that CMs of Gujarat and Punjab, who will be visiting Israel later in the year, should on their return, share insight on the innovative ways for micro-irrigation and water conservation.

6.9 The Prime Minister said that celebrating Guru Nanak Devji’s 550th birthday would be a matter of great inspiration and the government should plan for it.

6.10 The Prime Minister remarked that States may also take initiatives to celebrate their major events linked to the country’s freedom struggle, so that the youth are aware of the same and enriched by it.

6.11 Regarding the suggestion to categorize States based on level of development and incentivizing developed States for work done by them, the Prime Minister said the suggestion may be considered seriously.

6.12 With respect to Fiscal Responsibility and Budget Management Act (FRBM), he asked the Finance Ministry to look into the guidelines and further streamline the same.

6.13 The Prime Minister directed that a Committee comprising CMs of Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim be constituted to explore how MGNREGS can be linked to agriculture, focusing specifically on pre-sowing and post-harvest phases with respect to water conservation and conversion of waste to wealth respectively. CM Madhya Pradesh shall he the convener of the Committee. The recommendations of the committee be shared with NITI Aayog.

6.14 Highlighting the progress made under the flagship schemes – Jan Dhan, Saubhagya Yojana, Ujjwala Yojana and Mission Indradhanush, The Prime Minister called for 100 percent coverage, especially in the 45,000 additional villages under the extended Gram Swaraj Abhiyan and 115 Aspirational Districts, by 15 August 2018. He appealed to CM to extend their support in this endeavor.

6.15 He called upon all CMs to work towards making India free of TB by 2025.

6.16 The Prime Minister reiterated the difference that RuPay cards had made and emphasized on the need to promote them further.

6.17 He mentioned about the need for farmers to be trained on the use and benefits of Soil Health Cards and urged CMs to think further about how soil testing facilities could be upscaled.

6.18 The Prime Minister said that Swachh Bharat Mission is being discussed around the world. In the last four years, 7.70 crore toilets have been constructed. He called upon all present to work towards 100 percent sanitation coverage by 2nd October, 2019, the 150th birth anniversary of Mahatma Gandhi, which would be a “Kaaryanjali” to him.

6.19 He also asked States to consider if an annual “Kachra Utsav” may be held in all schools and cities to promote ‘Waste of Wealth”.

6.20 Speaking on the economy, the Prime Minister said that the world expects India to become a USD 5 trillion economy soon. To realize this goal he suggested that States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

6.21 He encourage States to continue working on improving “Ease of Doing Business” and Stated that NITI may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50.

6.22 He further emphasized on “ease of living” for the common man, as the need of the hour, and appealed to States to form a committee and identify 100 steps needed to further enhance Ease of Living.

6.23 With respect to the Finance Commission, the Prime Minister remarked that States should suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States. For example, suggestions may be provided on incentivizing

reduction in expenditure, reduction in urea consumption or innovative use of technology by States.

6.24 On agriculture, the Prime Minister said that corporate investment in this sector is very low in India. He said States should formulate policies that promote corporate investment in areas such as warehousing, transportation, value addition and food processing etc.

6.25 The Prime Minister said that after agriculture, the mining sector has tremendous potential to generate employment. He said that the mining blocks which have been successfully auctioned, should start production at the earliest. Similarly the central ministries like Ministry of Environment and Forest, should expedite the approval process. He also said District Mineral Fund should be utilized for the upliftment of the poor and the tribals in a big way.

6.26 The Prime Minister called for further debate and consultations on holding simultaneous elections for Lok Sabha and Vidhan Sabhas, in the interest of development, expenditure reduction and better logistics. He urged the States to look into the possibility of having a common voter list for Lok Sabha, Vidhan Sabha and Local Bodies.

6.27 The Prime Minister concluded by thanking the Chief Ministers for their valuable suggestions and time.

7. Decisions taken during the meeting

The following decisions were taken during the deliberations at the meeting:

7.1 Construction of a sub-group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post – harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be convener of the group. The recommendations of the committee shall be acted upon by NITI Aayog and concerned ministries.

7.2 NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

7.3 NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50 on Ease of Doing Business rankings.

7.4 States to form a committee and identify 100 steps needed to further enhance Ease of Living. NITI Aayog to formalize the Ease of Living Index after consulting States.

7.5 Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

7.6 Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

7.7 GST Council to compile a list of issues raised by the Chief Ministers and look into them.

7.8 Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

7.9 Ministry of Health & Family Welfare and all States to work in close coordination to achieve a tuberculosis (TB) free India by 2025.

7.10 Ministry of Home Affairs to follow up on all commitments made in the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

7.11 States to suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States.

7.12 States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

713 State to create their own parameters and identify 20 percent most backward blocks in their States and then work towards bringing these aspirational blocks too into the fold of development.

7.14 States to work towards switching to 100% LED lighting for all street lights and in all government buildings and aim to achieve it by 15th August, 2018 or 2nd October, 2018.

The meeting concluded with a Vote of Thanks to the Chair.

Page 37: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

ANNEXURE IMinutes of the Fourth meeting of the Governing Council of NITI Aayog held under the Chairmanship of Prime Minister on 17th June 2018.

The fourth Meeting of the Governing Council of NITI Aayog held under the Chairmanship of the Prime Minister on 17 June 2018 at RBCC, President Secretariat, New Delhi. The meeting was attended by Minister of Home Affairs, Minister of Finance/Railways, Minister of Agriculture & Farmers’ Welfare, Minister of State (I/C) of Planning – as exofficio members; Minister of Road Transport & Highway, Minister of Social Justice & Empowerment, Minister of Human Resource Development as Special Invitees; Minister of Women & Child Development, Minister of Health & Family Welfare, Minister of Rural Development, Minister of State (I/C) of Culture / Environment, Forest and Climate Change, as invitees; Vice Chairman, full time members, CEO, NITI Aayog and senior officials of the Government of India. [Detailed list of participants-Annexure-A]

2. The Agenda Note as circulated in advance to all members of the Governing Council is as follows:

1) Action taken report of last Governing Council Meeting

2) Agriculture Sector – Measures contributing towards doubling of Farmer’s Income

a) E-NAM & Agriculture Marketing reforms

b) Soil Health Card

c) Rural / Agriculture haat

d) MGNREGS and its contribution towards water conservation

3) Ayushman Bharat

a) Health and Wellness Centre

b) Pradhanmantri Rashtriva Swasthya Suraksha Mission

4) Poshan Mission

5) Mission Indradhanush

6) Addressing special development needs of Aspirational Districts

7) Discussion on suggestions received for celebration of 150th birth anniversary of Mahatma Gandhi

3. At the outset, Vice Chairman NITI Aayog, welcomed the Hon’ble Prime Minister, all the Chief Ministers and distinguished guests to the Fourth Governing Council Meeting of the NITI Aayog.

3.1 He wished to place on record the contributions made by his predecessor, Dr. Arvind Panagariya as VC, NITI Aayog. He shared that as Vice Chairman he had visited 19 State capitals over the past nine months, and is committed to visiting all remaining capitals.

3.2 Talking about the extensive work undertaken by NITI during the past year, he mentioned the development of the State indices in three critical sector – water, education and health; establishment of the NITI Forum for the North East; work done on management of water resources in the region; development of the model Act on Land Leasing and the bouquet of measures to ensure MSP procurement in the Kharif season. He also mentioned the framing of the National Medical Council Bill, the National Nutrition Strategy, and Policy papers for Artificial

33

Intelligence and Electric Mobility; and work done on promoting innovation across the country through the Atal Innovation Mission which is located inside NITI Aayog.

3.3 He reiterated Government of India and NITI Aayog’s commitment to ensuring farming’s welfare and doubling farmer’s income in the coming years, providing health security to all and correcting social imbalances. He then briefly elucidated some of the measures taken to achieve this.

4. The Prime Minister welcomed all dignitaries. He especially welcomed all new Chief Ministers and other attending the NITI Aayog meeting for the first time. He thanked all those present for taking the time out from their State duties and commitments to come to Delhi. He was happy to note that his conviction that NITI Aayog would become a platform for bringing about transformational Change had been proved right. He congratulated NITI Aayog on the instrumental role it is playing in bringing about structural reforms through various initiatives, as a result of which India is today the world’s fastest growing major economy.

4.1 The Prime Minister said that the Governing Council has approached complex issues of governance as “Team India”, in the spirit of cooperative, competitive federalism. He described the smooth rollout and implementation of GST as a prime example of this.

4.2 The Prime Minister said that Chief Ministers of States had played a key role in policy formulation, through sub-groups and committees on issues such as Swachh Bharat Mission, Digital Transactions, and Skill Development. The recommendations of these sub-groups have been incorporated by various Ministries of the Union Government, and the whole nation is benefiting from their inputs, he said.

4.3 Stating that the country has unique opportunities, even though some challenges remain, the Prime Minister said that the Indian Economy has grown at a healthy rate of 7.7 percent in the fourth quarter of 2017-18. He added that the challenge now is to take this growth rate to double digits, for which many more important steps have to be taken. He said that the vision of a New India by 2022, is now a resolve of the people of our country. In this context, he mentioned the issues on the agenda today, including doubling of farmers income, development of aspirational districts, Ayushman Bharat, Mission Indradhanush, Nutrition Mission and celebrations of the 150th birth anniversary of Mahatma Gandhi.

4.4 The Prime Minister said that 1.5 lakh Health and Wellness Centres are being constructed under Ayushman Bharat. He said about 10 crore families will be provided health assurance worth Rs. 5 lakhs every year. He said a comprehensive approach is being adopted for education, under the Samagra Shiksha Abhiyan.

4.5 The Prime Minister said that schemes such as Mudra Yojana. Jan Dhan Yojana and Stand Up India, are helping in greater financial inclusion. He emphasized the need for tackling economic imbalances on priority. He said that all aspects and parameters of human development need to be addressed and improved upon in the 115 aspirational districts.

4.6 The Prime Minister shared that the Gram Swaraj Abhiyan has emerged as a new model for implementation of schemes and that this has so far been extended to 45,000 villages in the Aspirational Districts. He mentioned the seven important schemes under which universal coverage is targeted: Ujjwala, Saubhagya, Ujala, Jan Dhan, Jeevan Jyoti Yojana, Suraksha Bima Yojana, and Mission Indradhanush. He said this target was recently accomplished in about 17,000 villages and is being extended to the 45,000 villages, under Gram Swaraj Abhiyan now.

4.7 Stating how Sabka Saath, Sabka Vikas attempts to achieve inclusive growth and how Mudra, Jan

Dhan and Stand up India further this goal, he said that India has no shortage of capabilities, capacities and resources, but there is a need to ensure that processes are transparent and the common man is not caught in the net of corruption. He said that in the current financial year, States are receiving over 11 lakh crore rupees from the Centre, which represents an increase of about 6 lakh crore rupees, from the last year of the previous Government.

4.8 The prime Minister said that this gathering today represents the hopes and aspirations of the people of India. He said it is also the responsibility of this gathering to make all efforts to fulfil them

5. The gist of oral submissions and the written speeches of the Chief Ministers are taken on record.

6. The Prime Minister in his closing remarks acknowledged the excellent suggestions made by all Chief Ministers during the discussion.

6.1 He directed NITI Aayog to identify the actionable points for each State as raised by the CMs. He further directed that if required meetings with State officials may he held by NITI Aayog for follow-up on suggestions and further action to be undertaken by respective ministries.

6.2 The issue of implementing eNAM in States which have abolished the APMC Act, as raised by CM Bihar, Should be resolved by NITI Aayog and Department of Agriculture, Cooperation arid Farmers’ Welfare.

6.3 He suggested that just as NITI Aayog has identified 115 aspirational districts in the country, each State should create their own parameters and identify 20 percent most backward blocks in their States. The States should then work towards bringing these aspirational blocks too into the fold of development.

6.4 Speaking on the effects of global warming and the importance Mahatma Gandhi gave to the environment, the Prime Minister appealed that we embrace a zero defect. Zero effect approach and move towards 100% LED lighting for street lights and in all government buildings. He said that we should strive to do this in a time bound manner aiming to achieve it by 15th August or 2nd October.

6.5 He assured all States that the government is committed to fulfilling the provisions under the States’ Reorganisation Act in letter and in spirit.

6.6 Praising the expeditious implementation of GST, the PM said that it will take some time to settle fully, and remaining issues may be taken up by the GST Council.

6.7 The Prime Minister appreciated the progress being made by all States on the metro rail project and said that the government would continue to support it by way of policy.

6.8 Reiterating the issue of falling water table and the importance of micro-irrigation, the Prime Minister suggested that CMs of Gujarat and Punjab, who will be visiting Israel later in the year, should on their return, share insight on the innovative ways for micro-irrigation and water conservation.

6.9 The Prime Minister said that celebrating Guru Nanak Devji’s 550th birthday would be a matter of great inspiration and the government should plan for it.

6.10 The Prime Minister remarked that States may also take initiatives to celebrate their major events linked to the country’s freedom struggle, so that the youth are aware of the same and enriched by it.

6.11 Regarding the suggestion to categorize States based on level of development and incentivizing developed States for work done by them, the Prime Minister said the suggestion may be considered seriously.

6.12 With respect to Fiscal Responsibility and Budget Management Act (FRBM), he asked the Finance Ministry to look into the guidelines and further streamline the same.

6.13 The Prime Minister directed that a Committee comprising CMs of Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim be constituted to explore how MGNREGS can be linked to agriculture, focusing specifically on pre-sowing and post-harvest phases with respect to water conservation and conversion of waste to wealth respectively. CM Madhya Pradesh shall he the convener of the Committee. The recommendations of the committee be shared with NITI Aayog.

6.14 Highlighting the progress made under the flagship schemes – Jan Dhan, Saubhagya Yojana, Ujjwala Yojana and Mission Indradhanush, The Prime Minister called for 100 percent coverage, especially in the 45,000 additional villages under the extended Gram Swaraj Abhiyan and 115 Aspirational Districts, by 15 August 2018. He appealed to CM to extend their support in this endeavor.

6.15 He called upon all CMs to work towards making India free of TB by 2025.

6.16 The Prime Minister reiterated the difference that RuPay cards had made and emphasized on the need to promote them further.

6.17 He mentioned about the need for farmers to be trained on the use and benefits of Soil Health Cards and urged CMs to think further about how soil testing facilities could be upscaled.

6.18 The Prime Minister said that Swachh Bharat Mission is being discussed around the world. In the last four years, 7.70 crore toilets have been constructed. He called upon all present to work towards 100 percent sanitation coverage by 2nd October, 2019, the 150th birth anniversary of Mahatma Gandhi, which would be a “Kaaryanjali” to him.

6.19 He also asked States to consider if an annual “Kachra Utsav” may be held in all schools and cities to promote ‘Waste of Wealth”.

6.20 Speaking on the economy, the Prime Minister said that the world expects India to become a USD 5 trillion economy soon. To realize this goal he suggested that States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

6.21 He encourage States to continue working on improving “Ease of Doing Business” and Stated that NITI may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50.

6.22 He further emphasized on “ease of living” for the common man, as the need of the hour, and appealed to States to form a committee and identify 100 steps needed to further enhance Ease of Living.

6.23 With respect to the Finance Commission, the Prime Minister remarked that States should suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States. For example, suggestions may be provided on incentivizing

reduction in expenditure, reduction in urea consumption or innovative use of technology by States.

6.24 On agriculture, the Prime Minister said that corporate investment in this sector is very low in India. He said States should formulate policies that promote corporate investment in areas such as warehousing, transportation, value addition and food processing etc.

6.25 The Prime Minister said that after agriculture, the mining sector has tremendous potential to generate employment. He said that the mining blocks which have been successfully auctioned, should start production at the earliest. Similarly the central ministries like Ministry of Environment and Forest, should expedite the approval process. He also said District Mineral Fund should be utilized for the upliftment of the poor and the tribals in a big way.

6.26 The Prime Minister called for further debate and consultations on holding simultaneous elections for Lok Sabha and Vidhan Sabhas, in the interest of development, expenditure reduction and better logistics. He urged the States to look into the possibility of having a common voter list for Lok Sabha, Vidhan Sabha and Local Bodies.

6.27 The Prime Minister concluded by thanking the Chief Ministers for their valuable suggestions and time.

7. Decisions taken during the meeting

The following decisions were taken during the deliberations at the meeting:

7.1 Construction of a sub-group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post – harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be convener of the group. The recommendations of the committee shall be acted upon by NITI Aayog and concerned ministries.

7.2 NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

7.3 NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50 on Ease of Doing Business rankings.

7.4 States to form a committee and identify 100 steps needed to further enhance Ease of Living. NITI Aayog to formalize the Ease of Living Index after consulting States.

7.5 Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

7.6 Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

7.7 GST Council to compile a list of issues raised by the Chief Ministers and look into them.

7.8 Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

7.9 Ministry of Health & Family Welfare and all States to work in close coordination to achieve a tuberculosis (TB) free India by 2025.

7.10 Ministry of Home Affairs to follow up on all commitments made in the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

7.11 States to suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States.

7.12 States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

713 State to create their own parameters and identify 20 percent most backward blocks in their States and then work towards bringing these aspirational blocks too into the fold of development.

7.14 States to work towards switching to 100% LED lighting for all street lights and in all government buildings and aim to achieve it by 15th August, 2018 or 2nd October, 2018.

The meeting concluded with a Vote of Thanks to the Chair.

Page 38: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

ANNEXURE IMinutes of the Fourth meeting of the Governing Council of NITI Aayog held under the Chairmanship of Prime Minister on 17th June 2018.

The fourth Meeting of the Governing Council of NITI Aayog held under the Chairmanship of the Prime Minister on 17 June 2018 at RBCC, President Secretariat, New Delhi. The meeting was attended by Minister of Home Affairs, Minister of Finance/Railways, Minister of Agriculture & Farmers’ Welfare, Minister of State (I/C) of Planning – as exofficio members; Minister of Road Transport & Highway, Minister of Social Justice & Empowerment, Minister of Human Resource Development as Special Invitees; Minister of Women & Child Development, Minister of Health & Family Welfare, Minister of Rural Development, Minister of State (I/C) of Culture / Environment, Forest and Climate Change, as invitees; Vice Chairman, full time members, CEO, NITI Aayog and senior officials of the Government of India. [Detailed list of participants-Annexure-A]

2. The Agenda Note as circulated in advance to all members of the Governing Council is as follows:

1) Action taken report of last Governing Council Meeting

2) Agriculture Sector – Measures contributing towards doubling of Farmer’s Income

a) E-NAM & Agriculture Marketing reforms

b) Soil Health Card

c) Rural / Agriculture haat

d) MGNREGS and its contribution towards water conservation

3) Ayushman Bharat

a) Health and Wellness Centre

b) Pradhanmantri Rashtriva Swasthya Suraksha Mission

4) Poshan Mission

5) Mission Indradhanush

6) Addressing special development needs of Aspirational Districts

7) Discussion on suggestions received for celebration of 150th birth anniversary of Mahatma Gandhi

3. At the outset, Vice Chairman NITI Aayog, welcomed the Hon’ble Prime Minister, all the Chief Ministers and distinguished guests to the Fourth Governing Council Meeting of the NITI Aayog.

3.1 He wished to place on record the contributions made by his predecessor, Dr. Arvind Panagariya as VC, NITI Aayog. He shared that as Vice Chairman he had visited 19 State capitals over the past nine months, and is committed to visiting all remaining capitals.

3.2 Talking about the extensive work undertaken by NITI during the past year, he mentioned the development of the State indices in three critical sector – water, education and health; establishment of the NITI Forum for the North East; work done on management of water resources in the region; development of the model Act on Land Leasing and the bouquet of measures to ensure MSP procurement in the Kharif season. He also mentioned the framing of the National Medical Council Bill, the National Nutrition Strategy, and Policy papers for Artificial

34

Intelligence and Electric Mobility; and work done on promoting innovation across the country through the Atal Innovation Mission which is located inside NITI Aayog.

3.3 He reiterated Government of India and NITI Aayog’s commitment to ensuring farming’s welfare and doubling farmer’s income in the coming years, providing health security to all and correcting social imbalances. He then briefly elucidated some of the measures taken to achieve this.

4. The Prime Minister welcomed all dignitaries. He especially welcomed all new Chief Ministers and other attending the NITI Aayog meeting for the first time. He thanked all those present for taking the time out from their State duties and commitments to come to Delhi. He was happy to note that his conviction that NITI Aayog would become a platform for bringing about transformational Change had been proved right. He congratulated NITI Aayog on the instrumental role it is playing in bringing about structural reforms through various initiatives, as a result of which India is today the world’s fastest growing major economy.

4.1 The Prime Minister said that the Governing Council has approached complex issues of governance as “Team India”, in the spirit of cooperative, competitive federalism. He described the smooth rollout and implementation of GST as a prime example of this.

4.2 The Prime Minister said that Chief Ministers of States had played a key role in policy formulation, through sub-groups and committees on issues such as Swachh Bharat Mission, Digital Transactions, and Skill Development. The recommendations of these sub-groups have been incorporated by various Ministries of the Union Government, and the whole nation is benefiting from their inputs, he said.

4.3 Stating that the country has unique opportunities, even though some challenges remain, the Prime Minister said that the Indian Economy has grown at a healthy rate of 7.7 percent in the fourth quarter of 2017-18. He added that the challenge now is to take this growth rate to double digits, for which many more important steps have to be taken. He said that the vision of a New India by 2022, is now a resolve of the people of our country. In this context, he mentioned the issues on the agenda today, including doubling of farmers income, development of aspirational districts, Ayushman Bharat, Mission Indradhanush, Nutrition Mission and celebrations of the 150th birth anniversary of Mahatma Gandhi.

4.4 The Prime Minister said that 1.5 lakh Health and Wellness Centres are being constructed under Ayushman Bharat. He said about 10 crore families will be provided health assurance worth Rs. 5 lakhs every year. He said a comprehensive approach is being adopted for education, under the Samagra Shiksha Abhiyan.

4.5 The Prime Minister said that schemes such as Mudra Yojana. Jan Dhan Yojana and Stand Up India, are helping in greater financial inclusion. He emphasized the need for tackling economic imbalances on priority. He said that all aspects and parameters of human development need to be addressed and improved upon in the 115 aspirational districts.

4.6 The Prime Minister shared that the Gram Swaraj Abhiyan has emerged as a new model for implementation of schemes and that this has so far been extended to 45,000 villages in the Aspirational Districts. He mentioned the seven important schemes under which universal coverage is targeted: Ujjwala, Saubhagya, Ujala, Jan Dhan, Jeevan Jyoti Yojana, Suraksha Bima Yojana, and Mission Indradhanush. He said this target was recently accomplished in about 17,000 villages and is being extended to the 45,000 villages, under Gram Swaraj Abhiyan now.

4.7 Stating how Sabka Saath, Sabka Vikas attempts to achieve inclusive growth and how Mudra, Jan

Dhan and Stand up India further this goal, he said that India has no shortage of capabilities, capacities and resources, but there is a need to ensure that processes are transparent and the common man is not caught in the net of corruption. He said that in the current financial year, States are receiving over 11 lakh crore rupees from the Centre, which represents an increase of about 6 lakh crore rupees, from the last year of the previous Government.

4.8 The prime Minister said that this gathering today represents the hopes and aspirations of the people of India. He said it is also the responsibility of this gathering to make all efforts to fulfil them

5. The gist of oral submissions and the written speeches of the Chief Ministers are taken on record.

6. The Prime Minister in his closing remarks acknowledged the excellent suggestions made by all Chief Ministers during the discussion.

6.1 He directed NITI Aayog to identify the actionable points for each State as raised by the CMs. He further directed that if required meetings with State officials may he held by NITI Aayog for follow-up on suggestions and further action to be undertaken by respective ministries.

6.2 The issue of implementing eNAM in States which have abolished the APMC Act, as raised by CM Bihar, Should be resolved by NITI Aayog and Department of Agriculture, Cooperation arid Farmers’ Welfare.

6.3 He suggested that just as NITI Aayog has identified 115 aspirational districts in the country, each State should create their own parameters and identify 20 percent most backward blocks in their States. The States should then work towards bringing these aspirational blocks too into the fold of development.

6.4 Speaking on the effects of global warming and the importance Mahatma Gandhi gave to the environment, the Prime Minister appealed that we embrace a zero defect. Zero effect approach and move towards 100% LED lighting for street lights and in all government buildings. He said that we should strive to do this in a time bound manner aiming to achieve it by 15th August or 2nd October.

6.5 He assured all States that the government is committed to fulfilling the provisions under the States’ Reorganisation Act in letter and in spirit.

6.6 Praising the expeditious implementation of GST, the PM said that it will take some time to settle fully, and remaining issues may be taken up by the GST Council.

6.7 The Prime Minister appreciated the progress being made by all States on the metro rail project and said that the government would continue to support it by way of policy.

6.8 Reiterating the issue of falling water table and the importance of micro-irrigation, the Prime Minister suggested that CMs of Gujarat and Punjab, who will be visiting Israel later in the year, should on their return, share insight on the innovative ways for micro-irrigation and water conservation.

6.9 The Prime Minister said that celebrating Guru Nanak Devji’s 550th birthday would be a matter of great inspiration and the government should plan for it.

6.10 The Prime Minister remarked that States may also take initiatives to celebrate their major events linked to the country’s freedom struggle, so that the youth are aware of the same and enriched by it.

6.11 Regarding the suggestion to categorize States based on level of development and incentivizing developed States for work done by them, the Prime Minister said the suggestion may be considered seriously.

6.12 With respect to Fiscal Responsibility and Budget Management Act (FRBM), he asked the Finance Ministry to look into the guidelines and further streamline the same.

6.13 The Prime Minister directed that a Committee comprising CMs of Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim be constituted to explore how MGNREGS can be linked to agriculture, focusing specifically on pre-sowing and post-harvest phases with respect to water conservation and conversion of waste to wealth respectively. CM Madhya Pradesh shall he the convener of the Committee. The recommendations of the committee be shared with NITI Aayog.

6.14 Highlighting the progress made under the flagship schemes – Jan Dhan, Saubhagya Yojana, Ujjwala Yojana and Mission Indradhanush, The Prime Minister called for 100 percent coverage, especially in the 45,000 additional villages under the extended Gram Swaraj Abhiyan and 115 Aspirational Districts, by 15 August 2018. He appealed to CM to extend their support in this endeavor.

6.15 He called upon all CMs to work towards making India free of TB by 2025.

6.16 The Prime Minister reiterated the difference that RuPay cards had made and emphasized on the need to promote them further.

6.17 He mentioned about the need for farmers to be trained on the use and benefits of Soil Health Cards and urged CMs to think further about how soil testing facilities could be upscaled.

6.18 The Prime Minister said that Swachh Bharat Mission is being discussed around the world. In the last four years, 7.70 crore toilets have been constructed. He called upon all present to work towards 100 percent sanitation coverage by 2nd October, 2019, the 150th birth anniversary of Mahatma Gandhi, which would be a “Kaaryanjali” to him.

6.19 He also asked States to consider if an annual “Kachra Utsav” may be held in all schools and cities to promote ‘Waste of Wealth”.

6.20 Speaking on the economy, the Prime Minister said that the world expects India to become a USD 5 trillion economy soon. To realize this goal he suggested that States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

6.21 He encourage States to continue working on improving “Ease of Doing Business” and Stated that NITI may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50.

6.22 He further emphasized on “ease of living” for the common man, as the need of the hour, and appealed to States to form a committee and identify 100 steps needed to further enhance Ease of Living.

6.23 With respect to the Finance Commission, the Prime Minister remarked that States should suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States. For example, suggestions may be provided on incentivizing

reduction in expenditure, reduction in urea consumption or innovative use of technology by States.

6.24 On agriculture, the Prime Minister said that corporate investment in this sector is very low in India. He said States should formulate policies that promote corporate investment in areas such as warehousing, transportation, value addition and food processing etc.

6.25 The Prime Minister said that after agriculture, the mining sector has tremendous potential to generate employment. He said that the mining blocks which have been successfully auctioned, should start production at the earliest. Similarly the central ministries like Ministry of Environment and Forest, should expedite the approval process. He also said District Mineral Fund should be utilized for the upliftment of the poor and the tribals in a big way.

6.26 The Prime Minister called for further debate and consultations on holding simultaneous elections for Lok Sabha and Vidhan Sabhas, in the interest of development, expenditure reduction and better logistics. He urged the States to look into the possibility of having a common voter list for Lok Sabha, Vidhan Sabha and Local Bodies.

6.27 The Prime Minister concluded by thanking the Chief Ministers for their valuable suggestions and time.

7. Decisions taken during the meeting

The following decisions were taken during the deliberations at the meeting:

7.1 Construction of a sub-group of Chief Ministers to suggest a coordinated policy approach on linking the agriculture sector and MGNREGS with special thrust on pre-sowing and post – harvest interventions. The sub-group would comprise CMs from Madhya Pradesh, Andhra Pradesh, Bihar, Gujarat, Uttar Pradesh, West Bengal and Sikkim, and CM Madhya Pradesh to be convener of the group. The recommendations of the committee shall be acted upon by NITI Aayog and concerned ministries.

7.2 NITI Aayog to compile a list of issues raised by the Chief Ministers and follow up on them with the respective State governments and Union Ministries.

7.3 NITI Aayog may hold a seminar with States to examine the hurdles preventing India from reaching the Top-50 on Ease of Doing Business rankings.

7.4 States to form a committee and identify 100 steps needed to further enhance Ease of Living. NITI Aayog to formalize the Ease of Living Index after consulting States.

7.5 Finance Ministry to look into the guidelines of the Fiscal Responsibility and Budget Management Act (FRBM), taking a more holistic approach and for further streamlining.

7.6 Ministry of Agriculture to look into the suggestion regarding strengthening of eNAM and resolve issues with respect to States without the APMC Act.

7.7 GST Council to compile a list of issues raised by the Chief Ministers and look into them.

7.8 Ministry of Environment and Forest, Climate Change and States to expedite the process of approvals to enable operationalization of the already auctioned mine blocks at the earliest.

7.9 Ministry of Health & Family Welfare and all States to work in close coordination to achieve a tuberculosis (TB) free India by 2025.

7.10 Ministry of Home Affairs to follow up on all commitments made in the States Reorganisation Act and resolve issues of States of Andhra and Telangana.

7.11 States to suggest innovative ideas and outcome based formulae for the consideration of the Finance Commission for better devolution of funds to States.

7.12 States should explore and focus on further enhancing their export potential. The investment summits being organized by the States may also focus on this aspect.

713 State to create their own parameters and identify 20 percent most backward blocks in their States and then work towards bringing these aspirational blocks too into the fold of development.

7.14 States to work towards switching to 100% LED lighting for all street lights and in all government buildings and aim to achieve it by 15th August, 2018 or 2nd October, 2018.

The meeting concluded with a Vote of Thanks to the Chair.

Page 39: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

S.No. Name Designation

ANNEXURE A

35

List of Participants4th Governing Council Meeting held on 17th June, 2018

Page 40: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

36

S.No. Name Designation

30. Maharashtra Shri Devendra Fadnavis

31. Meghalaya Shri Conrad Kongkal Sangma

32. Nagaland Shri Neiphiu Rio

33. Punjab Capt. Amarinder Singh

34. Rajasthan Smt. Vasundhara Raje Scindia

35. Tamil Nadu Shri Edappadi K Palaniswami

36. Telangana Shri K . Chandrashekar Rao

37. Uttar Pradesh Shri Yogi Adityanath

38. Uttarakhand Shri Trivendra Singh Rawat

39. West Bengal Km. Mamata Banerjee

40. Andaman & Nicobar Islands Admiral (Retd.) Devendra Kumar Joshi

(Lieutenant Governor)

41. Puducherry Shri V. Narayanasamy

Cabinet Secretary / PMO/ Secretaries of Ministries / Departments

42 Shri P.K. Sinha Cabinet Secretary

43 Shri Nripendra Misra Principal Secretary to PM44 Dr. P.K. Mishra Addl. Principal Secretary to PM

45 Dr. Hasmukh Adhia Secretary, Ministry of Finance

46 Shri Rakesh Srivastava Secretary, Women and Child Development

47 Ms Preeti Sudan Secretary, Health and Family Welfare

48 Shri Amarjeet Sinha Secretary, Rural Development49 Shri Shobana K Pattanayak Secretary, Department of Agriculture, Cooperation & Farmers’ Welfare

50 Shri Raghvendra Singh Secretary, Ministry of Culture

51 Ms. Debashree Mukherjee JS, PMO

52 Shri Brajendra Navnit JS, PMO

53 Ms. Aishvarya Singh JS, PMO

54 Shri Indu Bhushan CEO, Pradhan Mantri Rashtriya Swasthya Suraksha Mission (PMRSSM)

Officers of NITI Aayog

55 Shri Amitabh Kant Chief Executive Officer, NITI Aayog

56 Shri Ratan P. Watal Principal Adviser, NITI Aayog

57 Shri Yaduvendra Mathur Addl. Secretary, NITI Aayog

58 Shri Rameshwar Prasad Gupta Addl. Secretary, NITI Aayog

59 Shri Anil Srivastava DG(DMEO), NITI Aayog

60 Shri Vikram Singh Gaur Joint Secretary (SC & DP), NITI Aayog

Page 41: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

37

61 Shri Ashok Kumar Jain Adviser(RD), NITI Aayog

62 Ms Sanyukta Samaddar OSD(GCS), NITI Aayog

63 Dr. J P Mishra Adviser(Agri.), NITI Aayog

64 Dr. Yogesh Suri Adviser(G&R), NITI Aayog

65 Shri Alok Kumar Adviser(Health), NITI Aayog

66 Shri Rakesh Ranjan Sr. Consultant, NITI Aayog

S.No. Name Designation

Page 42: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

38

ANNEXURE IIList of Aspirational Districts

S.No. State District1 Jammu & Kashmir Kupwara

2 Jammu & Kashmir Baramula

3 Himachal Pradesh Chamba

4 Punjab Moga

5 Uttarakhand Udham Singh Nagar

6 Uttarakhand Haridwar

7 Haryana Mewat

8 Rajasthan Dholpur

9 Rajasthan Karauli

10 Rajasthan Jaisalmer

11 Rajasthan Sirohi

12 Rajasthan Baran

13 Gujarat DAHOD

14 Gujarat Narmada

15 Uttar Pradesh Chitrakoot

16 Uttar Pradesh Fatehpur

17 Uttar Pradesh Bahraich

18 Uttar Pradesh Shrawasti

19 Uttar Pradesh Balrampur

20 Uttar Pradesh Siddharthnagar

21 Uttar Pradesh Chandauli

22 Uttar Pradesh Sonebhadra

23 Assam Goalpara

24 Assam Barpeta

25 Assam Hailakandi

26 Assam Baksa

27 Assam Darrang

28 Assam Udalguri

29 Bihar Sitamarhi

30 Bihar Araria

31 Bihar Purnia

32 Bihar Katihar

33 Bihar Muzaffarpur

34 Bihar Begusarai

35 Bihar Khagaria

36 Bihar Banka

37 Bihar Sheikhpura

38 Bihar Aurangabad

39 Bihar Gaya

40 Bihar Nawada

41 Bihar Jamui

42 Sikkim West Sikkim

43 Jharkhand Garhwa

44 Jharkhand Chatra

45 Jharkhand Giridih

46 Jharkhand Godda

47 Jharkhand Sahibganj

48 Jharkhand Pakur

49 Jharkhand Bokaro

50 Jharkhand Lohardaga

51 Jharkhand Purbi Singhbhum

52 Jharkhand Palamu

53 Jharkhand Latehar

54 Jharkhand Hazaribagh

55 Jharkhand Ramgarh

56 Jharkhand Dumka

57 Odisha Dhenkanal

58 Odisha Gajapati

59 Odisha Kandhamal

60 Odisha Balangir

61 Odisha Kalahandi

62 Odisha Rayagada

63 Odisha Koraput

64 Odisha Malkangiri

65 Odisha Nawarangpur

66 Odisha Nuapada

67 Maharashtra Nandurbar

68 Maharashtra Washim

69 Maharashtra Gadchiroli

70 Maharashtra Osmanabad

71 Chhattisgarh Korba

72 Chhattisgarh Rajnandgaon

73 Chhattisgarh Mahasamund

74 Chhattisgarh Kanker

75 Chhattisgarh Narayanpur

76 Chhattisgarh Dantewada

77 Chhattisgarh Bijapur

78 Chhattisgarh Bastar

79 Chhattisgarh Kondagaon

80 Chhattisgarh Sukma

81 Andhra Pradesh Vizianagaram

82 Andhra Pradesh Visakhapatnam

83 Andhra Pradesh Y.S.R. Kadapa

84 Karnataka Raichur

85 Karnataka Yadgir

86 Madhya Pradesh Chhatarpur

87 Madhya Pradesh Damoh

88 Madhya Pradesh Barwani

89 Madhya Pradesh Rajgarh

90 Madhya Pradesh Vidisha

91 Madhya Pradesh Guna

92 Madhya Pradesh Singrauli

93 Madhya Pradesh Khandwa

94 Jharkhand Ranchi

95 Jharkhand Khunti

96 Jharkhand Gumla

97 Jharkhand Simdega

98 Jharkhand Pashchimi Singhbhum

99 Kerala Wayanad

100 Tamil Nadu Virudhunagar

101 Tamil Nadu Ramanathapuram

102 Punjab Firozpur

103 Arunachal Pradesh Namsai

104 Assam Dhubri

105 Telangana Asifabad

106 Telangana Bhopapalli

107 Telangana Bhadadri- Kothagudem1

108 Nagaland Kiphire

109 Manipur Chandel

110 Mizoram Mamit

111 Tripura Dhalai

112 Meghalaya Ribhoi

113 West Bengal2 Murshidabad

114 West Bengal Nadia

115 West Bengal Maldah

116 West Bengal Dakshin Dinajpur

117 West Bengal Birbhum

Page 43: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

39

S.No. State District

1 Jammu & Kashmir Kupwara

2 Jammu & Kashmir Baramula

3 Himachal Pradesh Chamba

4 Punjab Moga

5 Uttarakhand Udham Singh Nagar

6 Uttarakhand Haridwar

7 Haryana Mewat

8 Rajasthan Dholpur

9 Rajasthan Karauli

10 Rajasthan Jaisalmer

11 Rajasthan Sirohi

12 Rajasthan Baran

13 Gujarat DAHOD

14 Gujarat Narmada

15 Uttar Pradesh Chitrakoot

16 Uttar Pradesh Fatehpur

17 Uttar Pradesh Bahraich

18 Uttar Pradesh Shrawasti

19 Uttar Pradesh Balrampur

20 Uttar Pradesh Siddharthnagar

21 Uttar Pradesh Chandauli

22 Uttar Pradesh Sonebhadra

23 Assam Goalpara

24 Assam Barpeta

25 Assam Hailakandi

26 Assam Baksa

27 Assam Darrang

28 Assam Udalguri

29 Bihar Sitamarhi

30 Bihar Araria

31 Bihar Purnia

32 Bihar Katihar

33 Bihar Muzaffarpur

34 Bihar Begusarai

35 Bihar Khagaria

36 Bihar Banka

37 Bihar Sheikhpura

38 Bihar Aurangabad

39 Bihar Gaya

40 Bihar Nawada

41 Bihar Jamui

42 Sikkim West Sikkim

43 Jharkhand Garhwa

44 Jharkhand Chatra

45 Jharkhand Giridih

46 Jharkhand Godda

47 Jharkhand Sahibganj

48 Jharkhand Pakur

49 Jharkhand Bokaro

50 Jharkhand Lohardaga

51 Jharkhand Purbi Singhbhum

52 Jharkhand Palamu

53 Jharkhand Latehar

54 Jharkhand Hazaribagh

55 Jharkhand Ramgarh

56 Jharkhand Dumka

57 Odisha Dhenkanal

58 Odisha Gajapati

59 Odisha Kandhamal

60 Odisha Balangir

61 Odisha Kalahandi

62 Odisha Rayagada

63 Odisha Koraput

64 Odisha Malkangiri

65 Odisha Nawarangpur

66 Odisha Nuapada

67 Maharashtra Nandurbar

68 Maharashtra Washim

69 Maharashtra Gadchiroli

70 Maharashtra Osmanabad

71 Chhattisgarh Korba

72 Chhattisgarh Rajnandgaon

73 Chhattisgarh Mahasamund

74 Chhattisgarh Kanker

75 Chhattisgarh Narayanpur

76 Chhattisgarh Dantewada

77 Chhattisgarh Bijapur

78 Chhattisgarh Bastar

79 Chhattisgarh Kondagaon

80 Chhattisgarh Sukma

81 Andhra Pradesh Vizianagaram

82 Andhra Pradesh Visakhapatnam

83 Andhra Pradesh Y.S.R. Kadapa

84 Karnataka Raichur

85 Karnataka Yadgir

86 Madhya Pradesh Chhatarpur

87 Madhya Pradesh Damoh

88 Madhya Pradesh Barwani

89 Madhya Pradesh Rajgarh

90 Madhya Pradesh Vidisha

91 Madhya Pradesh Guna

92 Madhya Pradesh Singrauli

93 Madhya Pradesh Khandwa

94 Jharkhand Ranchi

95 Jharkhand Khunti

96 Jharkhand Gumla

97 Jharkhand Simdega

98 Jharkhand Pashchimi Singhbhum

99 Kerala Wayanad

100 Tamil Nadu Virudhunagar

101 Tamil Nadu Ramanathapuram

102 Punjab Firozpur

103 Arunachal Pradesh Namsai

104 Assam Dhubri

105 Telangana Asifabad

106 Telangana Bhopapalli

107 Telangana Bhadadri- Kothagudem1

108 Nagaland Kiphire

109 Manipur Chandel

110 Mizoram Mamit

111 Tripura Dhalai

112 Meghalaya Ribhoi

113 West Bengal2 Murshidabad

114 West Bengal Nadia

115 West Bengal Maldah

116 West Bengal Dakshin Dinajpur

117 West Bengal Birbhum

Page 44: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

40

S.No. State District

1 Jammu & Kashmir Kupwara

2 Jammu & Kashmir Baramula

3 Himachal Pradesh Chamba

4 Punjab Moga

5 Uttarakhand Udham Singh Nagar

6 Uttarakhand Haridwar

7 Haryana Mewat

8 Rajasthan Dholpur

9 Rajasthan Karauli

10 Rajasthan Jaisalmer

11 Rajasthan Sirohi

12 Rajasthan Baran

13 Gujarat DAHOD

14 Gujarat Narmada

15 Uttar Pradesh Chitrakoot

16 Uttar Pradesh Fatehpur

17 Uttar Pradesh Bahraich

18 Uttar Pradesh Shrawasti

19 Uttar Pradesh Balrampur

20 Uttar Pradesh Siddharthnagar

21 Uttar Pradesh Chandauli

22 Uttar Pradesh Sonebhadra

23 Assam Goalpara

24 Assam Barpeta

25 Assam Hailakandi

26 Assam Baksa

27 Assam Darrang

28 Assam Udalguri

29 Bihar Sitamarhi

30 Bihar Araria

31 Bihar Purnia

32 Bihar Katihar

33 Bihar Muzaffarpur

34 Bihar Begusarai

35 Bihar Khagaria

36 Bihar Banka

37 Bihar Sheikhpura

38 Bihar Aurangabad

39 Bihar Gaya

40 Bihar Nawada

41 Bihar Jamui

42 Sikkim West Sikkim

43 Jharkhand Garhwa

44 Jharkhand Chatra

45 Jharkhand Giridih

46 Jharkhand Godda

47 Jharkhand Sahibganj

48 Jharkhand Pakur

49 Jharkhand Bokaro

50 Jharkhand Lohardaga

51 Jharkhand Purbi Singhbhum

52 Jharkhand Palamu

53 Jharkhand Latehar

54 Jharkhand Hazaribagh

55 Jharkhand Ramgarh

56 Jharkhand Dumka

57 Odisha Dhenkanal

58 Odisha Gajapati

59 Odisha Kandhamal

60 Odisha Balangir

61 Odisha Kalahandi

62 Odisha Rayagada

63 Odisha Koraput

64 Odisha Malkangiri

65 Odisha Nawarangpur

66 Odisha Nuapada

67 Maharashtra Nandurbar

68 Maharashtra Washim

69 Maharashtra Gadchiroli

70 Maharashtra Osmanabad

71 Chhattisgarh Korba

72 Chhattisgarh Rajnandgaon

73 Chhattisgarh Mahasamund

74 Chhattisgarh Kanker

75 Chhattisgarh Narayanpur

76 Chhattisgarh Dantewada

77 Chhattisgarh Bijapur

78 Chhattisgarh Bastar

79 Chhattisgarh Kondagaon

80 Chhattisgarh Sukma

81 Andhra Pradesh Vizianagaram

82 Andhra Pradesh Visakhapatnam

83 Andhra Pradesh Y.S.R. Kadapa

84 Karnataka Raichur

85 Karnataka Yadgir

86 Madhya Pradesh Chhatarpur

87 Madhya Pradesh Damoh

88 Madhya Pradesh Barwani

89 Madhya Pradesh Rajgarh

90 Madhya Pradesh Vidisha

91 Madhya Pradesh Guna

92 Madhya Pradesh Singrauli

93 Madhya Pradesh Khandwa

94 Jharkhand Ranchi

95 Jharkhand Khunti

96 Jharkhand Gumla

97 Jharkhand Simdega

98 Jharkhand Pashchimi Singhbhum

99 Kerala Wayanad

100 Tamil Nadu Virudhunagar

101 Tamil Nadu Ramanathapuram

102 Punjab Firozpur

103 Arunachal Pradesh Namsai

104 Assam Dhubri

105 Telangana Asifabad

106 Telangana Bhopapalli

107 Telangana Bhadadri- Kothagudem1

108 Nagaland Kiphire

109 Manipur Chandel

110 Mizoram Mamit

111 Tripura Dhalai

112 Meghalaya Ribhoi

113 West Bengal2 Murshidabad

114 West Bengal Nadia

115 West Bengal Maldah

116 West Bengal Dakshin Dinajpur

117 West Bengal Birbhum

Page 45: Uttarakhandspc.uk.gov.in/upload/contents/File-88.pdf · 2019-07-02 · The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

41

1 Jammu & Kashmir Kupwara

2 Jammu & Kashmir Baramula

3 Himachal Pradesh Chamba

4 Punjab Moga

5 Uttarakhand Udham Singh Nagar

6 Uttarakhand Haridwar

7 Haryana Mewat

8 Rajasthan Dholpur

9 Rajasthan Karauli

10 Rajasthan Jaisalmer

11 Rajasthan Sirohi

12 Rajasthan Baran

13 Gujarat DAHOD

14 Gujarat Narmada

15 Uttar Pradesh Chitrakoot

16 Uttar Pradesh Fatehpur

17 Uttar Pradesh Bahraich

18 Uttar Pradesh Shrawasti

19 Uttar Pradesh Balrampur

20 Uttar Pradesh Siddharthnagar

21 Uttar Pradesh Chandauli

22 Uttar Pradesh Sonebhadra

23 Assam Goalpara

24 Assam Barpeta

25 Assam Hailakandi

26 Assam Baksa

27 Assam Darrang

28 Assam Udalguri

29 Bihar Sitamarhi

30 Bihar Araria

31 Bihar Purnia

32 Bihar Katihar

33 Bihar Muzaffarpur

34 Bihar Begusarai

35 Bihar Khagaria

36 Bihar Banka

37 Bihar Sheikhpura

38 Bihar Aurangabad

39 Bihar Gaya

40 Bihar Nawada

41 Bihar Jamui

42 Sikkim West Sikkim

43 Jharkhand Garhwa

44 Jharkhand Chatra

45 Jharkhand Giridih

46 Jharkhand Godda

47 Jharkhand Sahibganj

48 Jharkhand Pakur

49 Jharkhand Bokaro

50 Jharkhand Lohardaga

51 Jharkhand Purbi Singhbhum

52 Jharkhand Palamu

53 Jharkhand Latehar

54 Jharkhand Hazaribagh

55 Jharkhand Ramgarh

56 Jharkhand Dumka

57 Odisha Dhenkanal

58 Odisha Gajapati

59 Odisha Kandhamal

60 Odisha Balangir

61 Odisha Kalahandi

62 Odisha Rayagada

63 Odisha Koraput

64 Odisha Malkangiri

65 Odisha Nawarangpur

66 Odisha Nuapada

67 Maharashtra Nandurbar

68 Maharashtra Washim

69 Maharashtra Gadchiroli

70 Maharashtra Osmanabad

71 Chhattisgarh Korba

72 Chhattisgarh Rajnandgaon

73 Chhattisgarh Mahasamund

74 Chhattisgarh Kanker

75 Chhattisgarh Narayanpur

76 Chhattisgarh Dantewada

77 Chhattisgarh Bijapur

78 Chhattisgarh Bastar

79 Chhattisgarh Kondagaon

80 Chhattisgarh Sukma

81 Andhra Pradesh Vizianagaram

82 Andhra Pradesh Visakhapatnam

83 Andhra Pradesh Y.S.R. Kadapa

84 Karnataka Raichur

85 Karnataka Yadgir

86 Madhya Pradesh Chhatarpur

87 Madhya Pradesh Damoh

88 Madhya Pradesh Barwani

89 Madhya Pradesh Rajgarh

90 Madhya Pradesh Vidisha

91 Madhya Pradesh Guna

92 Madhya Pradesh Singrauli

93 Madhya Pradesh Khandwa

94 Jharkhand Ranchi

95 Jharkhand Khunti

96 Jharkhand Gumla

97 Jharkhand Simdega

98 Jharkhand Pashchimi Singhbhum

99 Kerala Wayanad

100 Tamil Nadu Virudhunagar

101 Tamil Nadu Ramanathapuram

102 Punjab Firozpur

103 Arunachal Pradesh Namsai

104 Assam Dhubri

105 Telangana Asifabad

106 Telangana Bhopapalli

107 Telangana Bhadadri- Kothagudem1

S.No. State District

108 Nagaland Kiphire

109 Manipur Chandel

110 Mizoram Mamit

111 Tripura Dhalai

112 Meghalaya Ribhoi

113 West Bengal2 Murshidabad

114 West Bengal Nadia

115 West Bengal Maldah

116 West Bengal Dakshin Dinajpur

117 West Bengal Birbhum

1) Bhadadri- Kothagudem is taken as Aspirational District in place of Khammam district according to File no. 14072/34/2018-ADP dated 9th January 2019

2) at this stage, 5 districts of West Bengal have not joined the programme

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1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

S. GST Council Description of Decision Action Taken No. Meeting No. the Agenda and Agenda Item No.

20th Meeting held on 05.08.2017, Agenda Item 7(xi)

Taxation of rectified spirit/Extra Neutral Alcohol (ENA) under GST

State Ministers were insisting that ENA is not different from potable alcohol and not taxable under GST.The Council agreed that till an opinion is obtained from the Learned Attorney General of India on the subject, the status quo shall continue, i.e. Extra Neutral Alcohol supplied for industrial purpose shall attract GST at the rate of 18%.

TRU Replied that the opinion of Learned Attorney General of India on this issue, has since been received that ENA is different from potable alcohol and taxable under GST. Matter to be placed before GST Council for final decision.

1

26th GST Council Meeting held on 10 March, 2018, Agenda Item 14(iv)

Minutes of meeting on GST on Liquor license fee convened on 20th February, 2018

The Council approved that GST was not leviable on "licence fee" and "application fee" by whatever name it is called for alcoholic liquor for human consumption and that this would also apply mutatis mutandis to the demand raised by Service Tax/Excise authorities on licence fee for alcoholic liquor for human consumption in the pre-GST era i.e. for the period from 1 April, 2016 to 30 June, 2017. Agenda for issuing exemption to "Liquor Licence Fee" taken up in further GST council meeting but later withdrawn due to technical reasons.

TRU II has informed on 14.05.2019. that It has been decided to take up the issue to the GST Council Meeting to be held before the Union Budget of 2019-20 as both prospective and retrospective exemptions would be needed to be examined to settle the issue.

2

ANNEXURE IIIList of issues raised by States in GST Council

42

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1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

43

S. GST Council Description of Decision Action Taken No. Meeting No. the Agenda and Agenda Item No.

28th Meeting held on 21.07.18, Agenda Item 8(ii)

Recommendations of the Committee on IGST

To set up a Committee under Chairman, CBIC consisting of Finance Secretaries of Delhi, Puducherry, Tamil Nadu, and one each from the States of North East and West along with Principal CCA, CBIC and Joint Secretary, DoR, to address the concerns raised regarding treatment of IGST amount vis-à-vis the Consolidated Fund of India

Meeting held on 12.12.2018 under the chairmanship of Chairman, CBIC to discuss issues related to IGST apportionment with the States. Later, it was suggested that the Ministers of these states had a meeting with Hon'ble FM.

3

28th Meeting held on 21.07.18, Agenda Item 8(vi)

Recommendations of the Group of Ministers on Reverse Charge Mechanism

The Law Committee may consider the issue of exclusion of Brick Kilns, Menthol and Sand Mining activities from the benefit of flat rate of tax i.e. Composition scheme. (as suggested by UP)

In 31st Meeting LC had updated that the details/inputs had been received from only 17 States. Details/inputs from all States were received from remaining States after GST Council secretariat had written to them in this regard. The recommendations would now be placed before the GST Council in next meeting.

4

28th Meeting held on 21.07.18, Agenda Item 7

Rate of services Fitment Committee to examine relaxation regarding increasing the cap on minimum room rent from which the rate of 28% shall apply (Goa and Rajsthan); exemption of tax on custom milling of paddy; charging of tax on coaching for sports activities (AP)

Status awaited from Fitment Committee.

5

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1. Shri Narendra Modi Prime Minister, Chairman

2. Shri Rajiv Kumar Vice Chairman, NITI Aayog

Full Time Members

3. Dr. Bibek Debroy Member, NITI Aayog4. Dr. V.K. Saraswat Member, NITI Aayog

5. Prof. Ramesh Chand Member, NITI Aayog

6. Dr. Vinod Kumar Paul Member, NITI Aayog

Ex Officio Members

7. Shri Rajnath Singh Minister of Home Affairs

8. Shri Piyush Goyal Minister of Railways, Minister of Finance & Corporate Affairs

9. Shri Radha Mohan Singh Minister of Agriculture & Farmers’ Welfare

Special Invitees

10. Shri Nitin Jairam Gadkari Minister of Road Transport & Highways, Shipping

11. Shri Thaawarchand Gehlot Minister of Social Justice & Empowerment

12. Shri Prakash Javadekar Minister of Human Resources Development

13. Shri J P Nadda Minister of Health and Family Welfare

14. Ms. Maneka Gandhi Minister of Women and Child Development

15. Shri Narendra Singh Tomar Minister of Rural Development

16. Shri Rao Inderjit Singh Minister of Planning (I/C)

17. Dr. Mahesh Sharma Minister of Culture/Environment, Forest and Climate Change

Chief Ministers / Lt. Governors of State / UTs

18. Andhra Pradesh Shri N. Chandrababu Naidu

19. Arunachal Pradesh Shri Pema Khandu

20. Assam Shri Sarbananda Sonowal

21. Bihar Shri Nitish Kumar

22. Chhattisgarh Dr. Raman Singh

23. Gujarat Shri Vijay Rupani

24. Haryana Shri Manohar Lal Khattar

25. Himachal Pradesh Shri Jai Ram Thakur

26. Jharkhand Shri Raghubar Das

27. Karnataka Shri H D Kumarswamy

28. Kerala Shri Pinarayi Vijayan

29. Madhya Pradesh Shri Shivraj Singh Chouhan

44

S. GST Council Description of Decision Action Taken No. Meeting No. the Agenda and Agenda Item No.

29th Meeting Dt. 04.08.2018, Agenda Item 1

Confirmation of the Minutes of 28th GST Council Meeting held on 21st July, 2018. (Para 5.8)

The Fitment Committee to study the impact of rate reduction on those products where tax had earlier been reduced from 28% to 18% in terms of its impact on growth in the number of taxpayers and the quantum of tax payment;

The study has been conducted and received in GST Council Secretariat in March, 2019. It would be placed before GST Council.

6

31st meetingheld on 22.12.2018, Agenda Item 5

Review of Revenue position (concern raised by States that their revenues are not rising but for compensation and they would be in crisis after year 2022)

Council agreed to constitute a 7-Member Group of Ministers along with experts from Central and State Governments and research organisations like National Institute of Public Finance and Policy (NIPFP) to analyse revenue related issues and the structural reasons for shortfall keeping in view the suggestions made by the Members

GoM Constituted under the Chairmanship of Dy. CM of Bihar vide OM dated 01.01.2019 File No 844/GoM for Revenue Analysis/GSTC/2018 making JS, DOR as Secretary to the GoM. Meeting expected to be held after elections

7

31st meetingheld on 22.12.2018, Agenda Item 12 (v)

Proposal for removal of differential rate of GST on lottery run by State Government and lottery authorized by the State Government

Council approved that the issue shall be discussed in the joint meeting of the Fitment Committee and the Law Committee and their recommendations shall be placed before the Council in its next meeting. The issue was Rediscussed in 33rd Meeting of GST Council where Council agreed that the issue be considered further by the GoM on Lottery and its recommendations be brought before the Council

GoM on Lottery was constituted and its report was placed in 33rd GST Council Meeting but no decision could be taken and it was again deferred with suggestion that GoM on Lottery should consider it on priority and recommend a suitable solution. Meeting expected to be held shortly after elections

8

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S. GST Council Description of Decision Action Taken No. Meeting No. the Agenda and Agenda Item No.

32nd meetingheld on 10.01.2019, Agenda Item 11

Report of GoM on Revenue Mobilisation

Council approved the following recommendations of GoM on Revenue Mobilisation (vis a vis Disaster) i. The NDRF norms should be considered for revision after due consultation with State Governments. ii. The Council might consider allowing levy of a cess on intra-State supply of goods and services within the State of Kerala at a rate not exceeding 1% for a period not exceeding two years. iii. Regarding FRBM limits of fiscal deficit, GoM felt that for the purposes of reconstruction after the initial impact of natural calamities, Central Government might consider allowing States to incur a fiscal deficit higher than the FRBM without impacting their ongoing development programmes. GoM felt that this could either be done by excluding the reconstruction expenditure outside the FRBM limits or by providing additional borrowings over and above the FRBM target over a specified number of years.

GoM will forward these recommendations after finalisation of minutes of GST Council Meeting to NDRF and FC.

9

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S. GST Council Description of Decision Action Taken No. Meeting No. the Agenda and Agenda Item No.

33rd meeting

held on 20 &24.02.2019, Agenda Item 1

Confirmation of the Minutes of 32nd GST Council Meeting held on 10th January 2019

Council decided to adopt the Minutes of the 32nd Meeting of the GST Council with minor changes. UP has requested to exempt Dry Singhara , Kalpvasis and to reduce tax rate on handmade soap i.e. 18% , which is quite high. Chairperson observed that these requests should be examined by the Fitment Committee.

Status awaited from Fitment Committee.

10

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S. Section of Provision(s) of Section StatusNo. the Act

3 & 4 Territories of Successor States

Territories of the successor States were decided vide Amendment Act issued vide notification dated 17.07.2014, order dated 23.04.2015 for removal of difficulties and Election Commission’s notification dated 22/09/2018 in Delimitation Order. Action Completed

1

6 Constitution of an expert committee to study various alternatives regarding the new capital for the successor State of Andhra Pradesh.

The Expert Committee was constituted by the GoI on 28-03-2014. The Committee submitted its report on 30-08-2014, which was sent to GoAP on 01-09-2014. Subsequently, GoAP decided its Capital as Amaravati. Action Completed

2

7 Governor for the Successor States.

On 28.05.2014, Governor of Andhra Pradesh was appointed to discharge the functions of Governor of Telangana also.Action Completed

3

8 (4) The Governor shall be assisted by two advisors to be appointed by the Central Government.

Two advisors (Sh A P V N Sarma, Retd IAS and Sh A.K. Mohanty, Retd IPS) were appointed by GoI and both of them assumed their charges on 11-06-2014.Action Completed

4

9(1) The Central Government shall assist the successor States of Andhra Pradesh and Telangana to raise additional police forces

4 Indian Reserve (IR) Battalions each for AP and Telangana were sanctioned by MHA in Dec’2014. In AP, 3 IR Bns have been raised and administrative process for 4th IR Bns is under process. In Telangana, all the 4 IR Bns were raised and started functioning from 01.02.2018.Action Completed

5

9(3) The Central Government shall assist the successor State of Andhra Pradesh to set up a similar state-of the-art training centre at such place as the State Government of Andhra Pradesh may by order notify.

The proposal for setting up of State-of-the-art Greyhounds Training Centre in Andhra Pradesh at a cost of Rs. 219.16 crore has been approved on 18.04.2018. Stage-II approval from Ministry of Environment, Forest & Climate Change is in final stage. An amount of Rs. 9.08 crore has been released to AP on 29.03.2019.In Progress

6

ANNEXURE IVStatus note on Implementation of provisions of A P Reorganisation Act, 2014

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48

S. Section of Provision(s) of Section StatusNo. the Act

26(1) Subject to the provisions contained in article 170 of the Constitution and without prejudice to section 15 of this Act, the number of seats in the Legislative Assembly of the successor States of Andhra Pradesh and Telangana shall be increased from 175 and 119 to 225 and 153, respectively, and delimitation of the constituencies may be determined by the Election Commission

Ld. Attorney General opined that unless and until Article 170 of the Constitution is amended to bring it up in line with Section 26 of the AP Reorganisation Act, 2014, the increase in the number of seats of Legislative Assemblies of Andhra Pradesh and Telangana cannot be given effect to.The draft Cabinet Note to amend Article 170(3) of the Constitution of India as well as the Representation of People Act was prepared and ECI was requested to fill 2nd Schedule in the Representation of People Act. On 09.11.2018 ECI intimated that seats for reservation can only be decided during the actual process of delimitation exercise and the same cannot be decided before hand. In Progress

7

31(1) Subject to the provisions of section 30, there shall be a separate High Court for the State of Andhra Pradesh…

A separate High Court has been constituted for the State of Andhra Pradesh, namely, the High Court of Andhra Pradesh from 01/01/2019 with the principal seat of the High Court at Amaravati in Andhra Pradesh and the High Court of Judicature at Hyderabad shall become the High Court for the State of Telangana vide Gazette notification dated 27/12/2018. Action Completed

8

46(1) The award made by the Thirteenth Finance Commission to the existing State of Andhra Pradesh shall be apportioned… the President shall make a reference to the Fourteenth Finance Commission to take into account the resources available to the successor States and make separate awards for each of the successor States.

…the Central Government may, having regard to the resources available to the successor State of Andhra Pradesh, make appropriate grants and also ensure that adequate benefits and incentives in the form of special development package are given to the backward areas of that State.

The action on the matter has been completed by Ministry of Finance.Action Completed

10

46(2) Rs. 3979.50 crores released out of Rs. 4117.89 crores assessed as resource gap for the period from 2nd June, 2014 to 31st March, 2015.

Further an amount of Rs. 19613 (15969+3644) crore has been released as Post Devolution Revenue Deficit Grant during the year during 2015-19 out of Rs. 22,113 crore recommended by 14th Finance Commission for the period 2015-2020.

11

31(2) The principal seat of the High Court of Andhra Pradesh shall be at such place as the President may, by notified order, appoint.

9

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S. Section of Provision(s) of Section StatusNo. the Act

46(3) & 94(2)

The Central Government shall, while considering the special development package for the successor State of Andhra Pradesh, provide adequate incentives, in particular for Rayalaseema and north coastal regions of that State.

M/o Finance released an amount of Rs.1050 Crore to the Government of AP under Special Development Package @ Rs. 50 Crore/District/Annum for seven backward districts of Andhra Pradesh for the developmental activities covering Rayalaseema and North Coastal Region during 2014-15, 2015-16 & 2016-17.

Further, the Central Government has agreed to give a special assistance to the State of Andhra Pradesh to make up for the additional Central share the State might have received during 2015-16 to 2019-20, if the funding of Centrally Sponsored Schemes (CSS) would have been shared in the ratio of 90:10 between the Centre and the State. The special assistance is to be provided by way of repayment of loan and interest for the Externally Aided Projects (EAPs) signed and disbursed during the period 2015-2016 to 2019-20 by the State.

In progress

12

The provisional strength, composition and allocation of AIS officers to the State Cadres shall be such as the Central Government may, by order, determine on or after the appointed day.

76(3) On the recommendations of Pratyush Sinha Committee, based on the approved principles of distribution, the All India Services (AIS) officers, have been distributed (including 2014 batch officers) between residual A.P. and Telengana and notified on 05-03-2015.Action Completed.

14

The members of each of the said services borne on the Andhra Pradesh cadre immediately before the appointed day shall be allocated to the successor State cadres of the same service constituted under sub-section (2) in such manner and with effect from such date or dates as the Central Government may, by order, specify.

76(4)15

68 & 71 ...the assets, rights and liabilities of the companies and corporations referred to in sub-section (1) shall be apportioned between the successor States in the manner provided.....

An Expert Committee headed by Smt. Sheela Bhide has given its recommendations on apportionment of assets, liabilities and employees of institutions listed in Schedule IX of AP Reorganisation Act, 2014. Action Completed.

13

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S. Section of Provision(s) of Section StatusNo. the Act

77(2) As soon as may be after the appointed day, the Central Government shall, by general or special order, determine the successor State to which every person referred to in sub-section (1) (State Govt. employee) shall be finally allotted for service…..

The Committee has recommended final allocation in respect of approximately 56400 employees of 90 departments and allocation orders have been issued by GOI. (Cases of about 750 employees pending on account of legal/administrative reasons.)Action Completed

16

80(1) The Central Government may, by order, establish one or more Advisory Committees, within a period of thirty days from the date of enactment of the Andhra Pradesh Reorganisation Act, 2014, for the purpose of assisting it…

The Pratyush Sinha Committee and Kamalnathan Committee were appointed, for AIS and State Cadre officers respectively, by DoPT in 2014. Action Completed

17

80(2) The allocation guidelines shall be issued by the Central Government on or after the date of enactment of the APR Act, 2014 and the actual allocation of individual employees shall be made by the Central Government on the recommendations of the Advisory Committee….

The guidelines for allocation of staff were issued by DoPT on 29.10.2015.Action Completed

18

There shall be constituted a Public Service Commission in accordance with article 315 of the Constitution by the successor State of Telangana, and until such Commission is constituted, the Union Public Service Commission may, with the approval of the President, agree to serve the needs of the State of Telangana in terms clause (4) of that Article.

83(2) Separate Public Service Commission has been constituted vide Govt. of Telengana’s GOMs.No.43, General Administration (Service-A) Department dated 8-8-2014.Action Completed

19

The Central Government shall, on and from the appointed day, constitute an Apex Council for the supervision of the functioning of the Godavari River Management Board and Krishna River Management Board.

84(1) Notification for constitution of the Committee was issued on 29th May 2014 by the M/o Water Resources.Action Completed

20

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S. Section of Provision(s) of Section StatusNo. the Act

85(1) The Central Government shall constitute two separate Boards to be called the Godavari River Management Board and Krishna River Management Board (to be known as the Board), within a period of sixty days from the appointed day….

Notification for constitution of Godavari River Management Board and Krishna River Management Board was issued on 28th May 2014 by the M/o Water Resources. Action Completed

21

85(4) A Chairperson not below the rank or level of Secretary or Additional Secretary to the GoI, one expert, full time Member Secretary to be appointed/nominated by the Central Government;

One post of Chairperson, two post of Member and one post of Expert Power were created from Central Services in the Boards. Two posts each of the rank of Chief Engineer in the Central Water Commission have also been created for KRMB & GRMB. Action Completed

22

85(6) The Central Government shall create such number of posts of the rank of Chief Engineer in the Central Water Commission, as it considers necessary.

23

Each Board shall be assisted in the day to day management of reservoirs by the Central Industrial Security Force constituted under the Central Industrial Security Force Act, 1968, on such terms and conditions as the Central Government may specify.

85(7) The issue of deployment of CISF would be taken up only after jurisdiction of two Boards are notified.In progress

24

The Government of the successor States shall at all times provide the necessary funds to the Board to meet all expenses (including the salaries and allowances of the staff) required for the discharge of its functions and such amounts shall be apportioned between the States concerned in such proportion as the Central Government may, having regard to the benefits to each of the said States, specify.

86(2) The Union Cabinet approved on 3.4.2014, that the Governments of Andhra Pradesh and Telangana shall at all times provide the necessary funds to the Boards on 50:50 basis to meet all expenses (including the salaries and allowances of the staff).However, the M/o WR has allocated in 2014-15 a sum of Rs.1 crore each for KRMB & GRMB as Grants-in-aid-General as an initial payment to be reimbursed by State Government of Andhra Pradesh and Telangana. The same has been released to KRMB and GRMB.Action Completed

25

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S. Section of Provision(s) of Section StatusNo. the Act

87(1) The Board shall ordinarily exercise jurisdiction on Godavari and Krishna rivers in regard to any of the projects …. as may be notified by the Central Government, having regard to the awards…

AP and Telangana have divergent views regarding notification of the jurisdiction of Board. AP is of the view that pending allocations to be made by Krishna Water Dispute Tribunal-II (KWDT-II), jurisdiction of KRMB may be notified by the GOI as there is no linkage between jurisdiction and project wise allocation by KWDT-II. However, Telangana is of the view that only after the final KWDT-II award, jurisdiction of KRMB may be finalised and notified. In case of GRMB AP is of the view that jurisdiction of GRMB may be notified whereas Telangana is of the view that status quo may be maintained. It was decided in a meeting taken by Secretary, M/o WR, RD & GR that the final decision in this regard will be taken by the Apex Council in its meeting.In progress

26

The term of the Krishna Water Disputes Tribunal shall be extended….

89 Term of Krishna Water Dispute Tribunal has been extended for another year w.e.f. 01.08.2018.Action Completed

27

The Polavaram Irrigation Project is hereby declared to be a national project.

90(1) Notification of Polavaram Project Authority issued on 28th May 2014. Action Completed

28

….the Union should take under its control the regulation and development of the Polavaram Irrigation Project for the purposes of irrigation.

90(2) Polavaram Project Authority and Governing Body of Polavaram Project Authority have been constituted vide MoWR notification dated 28.05.2014.Action Completed

29

The Central Government shall execute the project and obtain all requisite clearances including environmental, forests, and rehabilitation and resettlement norms.

90(4) On the request of the State Government, execution of Polavaram Project has been assigned to Govt. of AP. Govt. of India will fund 100% of the remaining cost of the irrigation component only of the project for the period starting from 01.04.2014 i.e. the date on which this project was declared as National Project under the Act, to the extent of the cost of the irrigation component on the date. Since 01.04.2014, against the irrigation component of Rs. 7,158.53 crores (at 2011 cost index) an amount of Rs. 6764.16 crores has been released; only one bill amounting to Rs. 393.51 crores submitted by Polavaram Project Authority (PPA) is pending for payment. GoAP submitted updated second Revised Cost

30

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S. Section of Provision(s) of Section StatusNo. the Act

Estimates of Rs. 57941 crore at 2013-14 price level to CWC. After appraisal in CWC, revised Cost Estimates of the project for an amount of Rs. 55548.87 crore at 2017-18 Price Level have been approved by Advisory Committee of M/o WR, RD & GR in its meeting on 11.02.2019. The cost of irrigation component is Rs. 50987.96 crore.In Progress

The principles, guidelines, directions and orders issued by the Central Government.....on matters relating to coal, oil and natural gas, and power generation, transmission and distribution as enumerated in the Twelfth Schedule shall be implemented by the successor States.

92 Necessary Orders have been issued by the concerned Ministries.Action completed

31

The Central Government shall take all necessary measures as enumerated in the Thirteenth Schedule for the progress and sustainable development of the successor States within a period of ten years

93 Status in respect of Schedule XIII institutions and infrastructural project is annexed.

32

The Central Government shall take appropriate fiscal measures, including offer of tax incentives, to the successor States, to promote industrialisation and economic growth in both the States.

94(1) Section 32 of Income Tax Act, 1961 (the Act) has been amended to, inter-alia provide for higher additional depreciation @ 35% (instead of 20%) in respect of the actual cost of new specified machinery or plant acquired and installed by a manufacturing undertaking/enterprises which is set up in the notified backward area of certain States including State of Andhra Pradesh, Telangana, on or after 1st April, 2015.Further a new Section 32 AD has been inserted in the Act to provide for additional investment allowance of 15% on the cost of specified plant and machinery acquired and installed by any person during the period 01.04.2015 to 31.03.2020 to set up a manufacturing/production undertaking/enterprise after 01.04.2015 in any notified backward area of certain State which included State of Telangana/AP.Action Completed

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S. Section of Provision(s) of Section StatusNo. the Act

An amount of Rs.2,500 crore has already been released as support for creation of new capital of State of Andhra Pradesh and Rs.1,000 crore more would be paid in due course. In this regard, a proposal for release of 1st instalment of Rs.333 crore to meet immediate expenditure on the ongoing works of the new Capital city of the State has been submitted for consideration.In Progress

The Central Government shall provide special financial support for the creation of essential facilities in the new capital of the successor State of Andhra Pradesh….

94(3)34

Concerned Name of the Institution StatusMinistry

The State Government handed over possession of land admeasuring 530.49 acres in November 2015/ September 2016. Due to certain issues, Collector, Chittoor district issued revised order on 17.04.2017. The academic session of the Institute has commenced in a temporary campus from 2015-16. An amount of Rs. 172.79 crore has been released. Construction for main campus has started under phase A. Student strength of 628 and faculty strength of 69.

The Institute has started functioning from its temporary campus since 2015. State Government has provided land at Tadepalligudem, West Godavari District for construction of permanent campus. An amount of Rs.104.5 crore has been released. Based on approved norms, M/o HRD has sanctioned 67 faculty post and 73 non faculty post. Institute has already filled 28 regular faculty positions. SFC amounting Rs. 460.50 crore approved for construction of permanent campus for a period of three years from 2017-18 to 2019-20.

Indian Institute of Technology (IIT), Andhra Pradesh

National Institute of Technology (NIT), Andhra Pradesh

Ministry of Human Resource Development

It has been established at Dinnidevarapadu village Jaganathagattu, Kurnool, Andhra Pradesh (land measuring 151.51 acres). Rs. 38.92 crore has been released. Institute is functioning from temporary campus since 2015 with total strength of 414 students. IIITDM Kurnool has been declared as an Institute of National Importance through IIIT(Amendment) Act, 2017.

Indian Institute of Information Technology (IIIT), Andhra Pradesh

Status of implementation of provisions of AP Reorganisation Act, 2014 in respect of Institutions/Projects given in Schedule- XIII.

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Concerned Name of the Institution StatusMinistry

Cabinet has given its in-principle approval on 16/05/2018 for establishing a Central University in Janthaluru Village, Anantpur District. Land has not been transferred by the State Govt. The same will be transferred in the name of Central University when it comes into existence after amendment of CU Act. The University has already started functioning from temporary campus at IT Incubation Building, Jawaharlal Nehru Technological University Campus, Anantpur from academic session 2018-19. The Central Universities (Amendment) Bill 2018 has been introduced in Lok Sabha on 14.12.2018 but it is still pending.

Central University (CU), Andhra Pradesh

Govt. of AP allotted 255.09 acres of land for the Institute in Jaganpelle village, Yerpudu-Mandal, Tirupati for setting up permanent campus.Rs. 115.02 crore has been released. It has been operating from temporary campus. Construction of boundary wall of permanent campus completed in July 2018. Construction of permanent campus is targeted to be complete by December 2021. IISERs has been declared as an Institute of National Importance under NITSER Act, 2007 as amended from time to time.

Indian Institute of Science Education and Research (IISER), Andhra Pradesh

The academic session of the Institute commenced from 2015 at its temporary campus i.e Andhra Pradesh University. Govt. of AP has allotted land (230.25 acres) for the Institute at Village Gambheeram, Visakhapatnam on 08.03.2018. Construction of phase-1 of permanent campus is expected to be completed by June, 2021. Rs.55.97 crore has been released. Institute has 166 students.

Indian Institute of Management (IIM), Andhra Pradesh

For Andhra Pradesh – Union Cabinet on 08.11.18 gave approval for establishment of Central Tribal University. The Central Universities (Amendment) Bill 2018 has been introduced in Lok Sabha on 14.12.2018. M/o HRD has requested AP to identify and provide suitable transit campus for operationalisation of proposed University.For Telangana-Site at Bhupalpally District has been

Tribal University each in Andhra Pradesh and Telangana.

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Concerned Name of the Institution StatusMinistry

Govt. of India has approved the establishment of National Institute of Disaster Management (Southern Campus) at Kondapavuluru village, Gannavaram Mandal, Krishna District in Andhra Pradesh at a revised cost of Rs.36.76 crores. Southern campus became operational on 17/08/2016 in a rented building in Vijayawada. NBCC has started the construction work of the building as well as boundary wall of Southern Campus of NIDM and projected time-line for completion of this project is November, 2019. The Govt. of India has released Rs. 13.43 cr to NIDM so far.

National Institute of Disaster Management, Andhra Pradesh

Ministry of Home Affairs

Ministry of Petroleum and Natural Gas

Indian Institute of Petroleum and Energy Act has been notified in the Gazette on 8th Jan, 2018. Rs.256.40 Crores have been released so far (57 crores from GBS & 199.40 Crore by Oil PSUs). Temporary Campus has started functioning from 2016-17. GoAP has provided the land (200 acres) to the Institute in Visakhapatnam.

Indian Institute Of Petroleum And Energy (IIPE), Andhra Pradesh

Ministry of Health & Family Welfare

The proposal for setting up of AIIMS at Mangalagiri in Andhra Pradesh at a cost of Rs. 1618 crores has been approved. Possession of 193 acres of land given by the State Government in December, 2015. An amount of Rs. 245.36 crores has been released. Executing agency (M/s HSCC) has been appointed for the project. Design consultant appointed. Master plan and Concept Plan finalised. First batch of MBBS course of 50 students has started from the session 2018-19 from a temporary campus. Construction of boundary wall is in progress.

One AIIMS-type Super-Specialty Hospital cum-Teaching Institution, Andhra Pradesh.

Ministrty of Agriculture and Farmer’s Welfare

• After bifurcation, the already existing Agriculture University came under the jurisdiction of Telangana. The Agriculture colleges exist in the State of AP and there is a need to establish a University to which these colleges can be affiliated. Thus, the University has now been established at Lam village in Guntur district very close to Capital city Amaravati with support from Central Government.

• Central Government has released Rs. 135.00 crores so far.

• No further amount is payable by the Ministry.

The DARE has released Rs. 135 crore so far to the Sri Konda Laxman Telangana State Horticultural University, Hyderabad. Land admeasuring 12.5 acres has been handed over to the University Authorities in 27.07.2015.

Agricultural University Andhra Pradesh.

Horticulture University Telangana

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Concerned Name of the Institution StatusMinistry

NITI Aayog has informed that the project will not be viable due to strong competition from the nearby ports of Krishnapatnam, Ennore and Chennai which are respectively 40, 80 and 80 kms away from the proposed port. It was also noted by NITI Aayog that there will be an adverse impact on nearby Ports as these Ports are currently operating at 65% capacity only. NITI Aayog has suggested to come up with possible alternatives in the interest of the State. The Expert Committee constituted for examining the proposal for a major port in AP will submit its report in July 2019. State Govt. of Andhra Pradesh has been requested to forward its comments on the report of the NITI Aayog and also to suggest alternate site(s) for development of a Major Port in the State of Andhra Pradesh. Reply from State Govt. is awaited.

Develop a new major port at Duggirajupatnam in the successor State of Andhra Pradesh to be completed in phases with Phase I By end-2018;

Ministry of Shipping

Ministry of Steel

The feasibility of setting up of Steel Plant with the proposed configurations was prima facie not found financially viable in Andhra Pradesh and Telangana. For much deeper analysis, Ministry of Steel constituted a Task Force comprising representatives from the Central & State Govt., SAIL, RINL and NDMC on 04.08.2015 and 06.02.2015 for Andhra Pradesh and Telangana respectively to suggest ways and means to make the project financially viable.

In the meeting of the Task Force (constituted for Andhra Pradesh) on 18/03/2016, it was decided that the Govt. of Andhra Pradesh will furnish the report prepared by KPMG and also provide information on concessions/incentives which can be made available for the project to SAIL. SAIL re-worked the feasibility report on receipt of inputs from GoAP and found that there was no appreciable change in Internal Rate of Return, even after taking into account the financial incentives offered by GoAP. In the meeting of the Task Force (constituted for Telangana) on 18.03.2016, Govt. of Telangana informed that an MoU was signed between Govt. of Telangana and Geological Survey of India for comprehensive survey of Iron Ore reserve. It was decided that the Task Force will consider the matter further after the survey report on availability of iron ore is made available by the Govt. of Telangana.

The Task Force was re-constituted and Ministry of Steel formed a Joint Task Force comprising representatives from the Central and State Governments, SAIL, Rashtriya Ispat Nigam Ltd.,

Feasibility of establishing an integrated steel plant each in Khammam district of the successor state of Telangana and YSR district of the successor state of AP.

National Mineral Development Corporation Limited, MECON Ltd. And MSTC Ltd to consider the feasibility issues and to prepare a road map for setting up of Steel Plants in Andhra Pradesh and Telangana.

In the last meeting of the Task Force held on 17/12/2018, following points were decided:

(a) GoAP would urgently make available the data confirming G2 level availability of iron ore resources of the requisite quality and quantity to MECON.

(b) GoAT to make data available about the land at the proposed site to MECON for finalizing the report.

As per updated status from MECON, details of eight iron ore mines from GoAP is still awaited. In the last meeting of MECON and Telangana on 10.01.2019, revenue map with topsheets of additional sites in Bayaram area were handed over by Telangana to MECON. However, Telangana is exploring option to shift the plant site towards western side of the State i.e. in Mahbubnagar district nearer to Karnataka. They are yet to take final call between Bayaram and some site in western part.

After receiving relevant information from the State Governments, MECON would complete the Draft Feasibility Report (DFR).

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The feasibility of setting up of Steel Plant with the proposed configurations was prima facie not found financially viable in Andhra Pradesh and Telangana. For much deeper analysis, Ministry of Steel constituted a Task Force comprising representatives from the Central & State Govt., SAIL, RINL and NDMC on 04.08.2015 and 06.02.2015 for Andhra Pradesh and Telangana respectively to suggest ways and means to make the project financially viable.

In the meeting of the Task Force (constituted for Andhra Pradesh) on 18/03/2016, it was decided that the Govt. of Andhra Pradesh will furnish the report prepared by KPMG and also provide information on concessions/incentives which can be made available for the project to SAIL. SAIL re-worked the feasibility report on receipt of inputs from GoAP and found that there was no appreciable change in Internal Rate of Return, even after taking into account the financial incentives offered by GoAP. In the meeting of the Task Force (constituted for Telangana) on 18.03.2016, Govt. of Telangana informed that an MoU was signed between Govt. of Telangana and Geological Survey of India for comprehensive survey of Iron Ore reserve. It was decided that the Task Force will consider the matter further after the survey report on availability of iron ore is made available by the Govt. of Telangana.

The Task Force was re-constituted and Ministry of Steel formed a Joint Task Force comprising representatives from the Central and State Governments, SAIL, Rashtriya Ispat Nigam Ltd.,

Concerned Name of the Institution StatusMinistry

National Mineral Development Corporation Limited, MECON Ltd. And MSTC Ltd to consider the feasibility issues and to prepare a road map for setting up of Steel Plants in Andhra Pradesh and Telangana.

In the last meeting of the Task Force held on 17/12/2018, following points were decided:

(a) GoAP would urgently make available the data confirming G2 level availability of iron ore resources of the requisite quality and quantity to MECON.

(b) GoAT to make data available about the land at the proposed site to MECON for finalizing the report.

As per updated status from MECON, details of eight iron ore mines from GoAP is still awaited. In the last meeting of MECON and Telangana on 10.01.2019, revenue map with topsheets of additional sites in Bayaram area were handed over by Telangana to MECON. However, Telangana is exploring option to shift the plant site towards western side of the State i.e. in Mahbubnagar district nearer to Karnataka. They are yet to take final call between Bayaram and some site in western part.

After receiving relevant information from the State Governments, MECON would complete the Draft Feasibility Report (DFR).

Ministry of Petroleum & Natural Gas

• In accordance with the Act feasibility study has been completed by Oil Companies and the report submitted to AP. It envisages Viability Gap Funding of Rs 5615 crores.

• CM, Andhra Pradesh seeking one time grant of Rs.5615 crore for funding of VGF from M/o Petroleum & Natural Gas.

• The Minister of Petroleum and Natural Gas vide communication dated 29.12.207 sent a reply to the CM of AP, inter alia stating that refinery and Petrochemical Projects are capital intensive projects and require huge amount of investment and the State Government may take appropriate decision in the matter in the overall interest of the State.

• Project is feasible when the State Govt provides VGF.

Examine the feasibility of establishing a Greenfield crude oil refinery and Petrochemical complex in the Successor State of Andhra Pradesh

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In Telangana, there are 4 districts viz. Mancherial, Kumarambheem Asifabad, Adilabad and Jayashankar Bhupalapally, which are backward. These are already connected with National Highways (NHs) viz. NH-363, NH-44 and NH-365.

NHAI shall take necessary steps to improve the road connectivity in the backward regions of the successor State of Telangana

Ministry of Road Transport & Highways

Concerned Name of the Institution StatusMinistry

Road Transport: (i) Presently, there exist 4-lane connectivity between Hyderabad and Vijayawada through NH-9 (new NH-65) in Telangana and Andhra Pradesh with a length of 181.5 kms.(approx), which is on BOT basis. As per the Concession Agreement, the Concessionaire shall undertake-6 laning of this NH section on or before April, 2024.

(ii) Outer Ring Road around Vijayawada-Guntur-Tenail urban agglomeration in Andhra Pradesh on green field alignment:Development of Ring Road around Vijayawada has been envisaged under Bharatmala Pariyojana. The work for Detailed Project Report (DPR) of the stretch is in progress. Final feasibility report has been submitted by the consultant. The tentative length for this stretch is 189 km and approximate cost is around Rs. 20, 000 cr. The competent authority for land acquisition in Krishna and Guntur district have been appointed. Other pre-construction activities such as various statutory clearances etc are in progress.

(iii) Regarding the development of an Access Controlled Greenfield Expressway connecting the new capital city of Amaravathi to Anantapuramu in Andhra Pradesh. The alignment of the aforesaid road stretch has been finalized with a length of approx. 384 km and tentative cost as Rs. 13000 cr. It has been envisaged to develop the expressway initially as 4 lane expressway with a provision of upgradation/expansion to 8 lane in future depending upon the traffic requirement. GoAP has agreed to transfer the govt. land free of cost and bear 50 % of the cost of land to be acquired. GoAP has committed to obtain requisite statutory clearance so that the approval/award of civil work/execution of work for the aforesaid expressway is taken up expeditiously. NHAI would be implementation agency for this work.

The Central Govt. shall take measures to establish rapid rail and road connectivity from the new capital of the successor State of Andhra Pradesh to Hyderabad and other important cities of Telangana

Ministry of Road Transport & HighwaysAndMinistry of Railways

Railways: With respect to rapid Rail Connectivity from new Capital concerning Ministry of Railways, the new line project of Vijayawada-Guntur via Amaravati was included in Pink book of 2017-18 subject to requisite approvals. DPR of Errupalem-Nambur via Amaravati single new line (56.53 km) costing Rs. 1732.56 cr is under inter-ministerial consultation.

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Road Transport: (i) Presently, there exist 4-lane connectivity between Hyderabad and Vijayawada through NH-9 (new NH-65) in Telangana and Andhra Pradesh with a length of 181.5 kms.(approx), which is on BOT basis. As per the Concession Agreement, the Concessionaire shall undertake-6 laning of this NH section on or before April, 2024.

(ii) Outer Ring Road around Vijayawada-Guntur-Tenail urban agglomeration in Andhra Pradesh on green field alignment:Development of Ring Road around Vijayawada has been envisaged under Bharatmala Pariyojana. The work for Detailed Project Report (DPR) of the stretch is in progress. Final feasibility report has been submitted by the consultant. The tentative length for this stretch is 189 km and approximate cost is around Rs. 20, 000 cr. The competent authority for land acquisition in Krishna and Guntur district have been appointed. Other pre-construction activities such as various statutory clearances etc are in progress.

(iii) Regarding the development of an Access Controlled Greenfield Expressway connecting the new capital city of Amaravathi to Anantapuramu in Andhra Pradesh. The alignment of the aforesaid road stretch has been finalized with a length of approx. 384 km and tentative cost as Rs. 13000 cr. It has been envisaged to develop the expressway initially as 4 lane expressway with a provision of upgradation/expansion to 8 lane in future depending upon the traffic requirement. GoAP has agreed to transfer the govt. land free of cost and bear 50 % of the cost of land to be acquired. GoAP has committed to obtain requisite statutory clearance so that the approval/award of civil work/execution of work for the aforesaid expressway is taken up expeditiously. NHAI would be implementation agency for this work.

Concerned Name of the Institution StatusMinistry

Department of Industrial Policy & Promotion (DIPP)

• Asian Development Bank (ADB) submitted the final report on Conceptual Development Plan (CDP) of Vizag-Chennai Industrial Corridor (VCIC).

• ADB approved a loan of $631 million to support projects and policy reforms for the VCIC in Sept, 2016.

• Master planning of VCIC is in the final stage, and ADB has submitted its Final Report in June 2018.

• Govt. of AP has submitted proposal in Oct., 2018 for consideration of National Industrial Corridor Development and Implementation Trust.

Examine the feasibility of establishing a Vizag-Chennai industrial corridor along the lines of Delhi-Mumbai Industrial Corridor

Ministry of Civil Aviation

• Tirupati and Vijayawada airports have been declared as international airports in 2017.

• At Tirupati Airport, new Integrated Terminal Building having 700 peak hour passengers at a cost of Rs. 174 crore has been commissioned on 21.11.2015.

• International flight operations from Vijaywada airport have commenced wef 4.12.2018.

• In-principle approval to Bhogapuram International Airport Company Ltd., (BIACL) for development of a Greenfield Airport at Bhogapuram in Vizianagram district for public use granted on 07.10.2016. Development of airport depends upon BIACL.

• AAI has awarded work for linear expansion of Integrated Passenger Terminal Building for 1050 peak hour capacity at the existing Visakhapatnam CE.

Examine the feasibility of expanding the existing Visakhapatnam, Vijayawada and Tirupati airports to international standards.

Railways: With respect to rapid Rail Connectivity from new Capital concerning Ministry of Railways, the new line project of Vijayawada-Guntur via Amaravati was included in Pink book of 2017-18 subject to requisite approvals. DPR of Errupalem-Nambur via Amaravati single new line (56.53 km) costing Rs. 1732.56 cr is under inter-ministerial consultation.

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Concerned Name of the Institution StatusMinistry

• NTPC is setting up a power project of 4000 MW in two phases, 1600 MW in Phase-I and 2400 MW in Phase-II.

• Phase-I : Telangana Phase-I is being set up in the available land in NTPC’s existing Ramagundam STPS at Karimnagar. Prime Minister inaugurated the Ist phase of NTPC’s Telangana Super Thermal Power Project on 07.08.2016. Rs.2117 crore spent till June, 2018.

• Phase-II: Revised layout for Phase-II finalized. No additional land required for the main Plant and Ash Dyke. Ministry of Power has intimated that it is not being taken up at present due to lack of demand of power in the State of Telangana.

• Coal linkage for 4000 MW:Mandakini-B coal mine in Odisha has been allotted to NTPC for 4000 MW Telangana Super Thermal Power Plant. As an interim arrangement till the development of this mine, LOA for tapering coal linkage for Telangana Phase-I (2x800 MW) has been issued from Western Coal Fields Limited for a quantity of 5.688 MTPA. Similarly, Bridge coal linkage for Telangana Phase-II (2400 MW) shall also be required to meet its coal requirement till allotted Mandakini-B coal block achieves its full capacity

Ministry of Coal and Power.

NTPC shall establish a 4000 MW power facility in the successor State of Telangana after establishing necessary coal linkages;

Ministry of Railways

Railway Zone and Rail connectivity: Ministry of Railways has announced a new Southern Coast Railway Zone for Andhra Pradesh which will have its headquarter in Visakhapatnam.Rail Coach Factory: There is a sufficient wagon manufacturing capacity existing in the country. Therefore, progress on this work could not take place. However, setting up of wagon Periodic Overhauling Workshop at Kazipet was subsequently sanctioned in 2016-17 at an estimated cost of Rs. 269.78 crore. Land (approx. 160 acres) for the work is to be provided by GoT free of cost basis.

Indian Railways shall, within six months from the appointed day, examine establishing a new railway zone in the successor State of Andhra Pradesh

Ministry of Railways

The Indian Railways shall, within six months from the appointed day,examine the feasibility of establishing a Rail Coach Factory in the successor State of Telangana and improve rail connectivity in the State.

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Concerned Name of the Institution StatusMinistry

DPRs for Metro Rail Projects in Visakhapatnam and Vijayawada in line with Metro Rail Policy, 2017 are awaited from State Government. furtherVisakhapatnam Metro Rail ProjectGovt. of AP in September, 2018 conveyed its intention to build 42.55 km of light rail project in Visakhapatnam at a cost of Rs. 8300 cr and requested for external aid of Rs. 4200 cr from Korea. Proposal has been recommended to DEA by M/o H&UA. Korea has, however, shown its inability to finance the said project proposal. Further, Ministry requested GoAP to submit their proposal for ODA loan for the Visakhapatnam Metro Rail Project through the web-portal of DEA as per latest guidelines of DEA. This Ministry is yet to receive the proposal of State Govt. on the DEA's web-portal w.r.t. Visakhapatnam Metro Rail Project.

Vijayawada Metro Rail Project The Detailed Project Report (DPR) of Vijayawada Metro Rail Project for approx. 26 kms of length was received in the Ministry in June, 2015. As per DPR, the project was proposed on 50:50 equity partnership of Central and State Government with the estimated project cost of Rs. 5815 crore excluding land cost and State Taxes. Public Investment Board (PIB) considered the project in its meeting held on 20.3.2017 and had asked this Ministry to resubmit the proposal after the new Metro Rail Policy of Government of India come into force. The new Metro Rail Policy came into force w.e.f 16.8.2017. On 1.9.2017 the State Government was requested to formulate the proposal in accordance with the provisions of Metro Rail Policy, 2017. This Ministry is yet to receive the revised proposal from the State Govt.

Ministry of Housing & Urban Affairs.

Feasibility of Metro Rail Facility In Vishakhapatnam And Vijayawada-Guntur-Tenali Metropolitan Urban Development Authority.

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