All posts by : Anand Daga

PM Matsya Sampada Yojana (PMMSY) Fisheries scheme Key features:

1. Pradhan Mantri Matsya Sampada Yojana (PMMSY) is a Fisheries scheme to bring about Blue Revolution through sustainable and responsible development of fisheries sector in India under two components namely, Central Sector Scheme (CS) and Centrally Sponsored Scheme (CSS).
2. The Scheme will be implemented during a period of 5 years from FY 2020-21 to FY 2024-25.
3. Nodal Ministry: Ministry of Fisheries, Animal Husbandry and Dairying. – Fisheries scheme

Implementation:

Central Sector Scheme (CS) – The entire project/unit cost will be borne by the Central government (i.e. 100% central funding).

The Centrally Sponsored Scheme (CSS) Component is further segregated into Non-beneficiary oriented and Beneficiary orientated sub­components/activities under the following three broad heads:

1. Enhancement of Production and Productivity.
2. Infrastructure and Post-Harvest Management.
3. Fisheries Management and Regulatory Framework.

Structure of Pradhan Mantri Matsya Sampada Yojana (PMMSY):

PMMSY is a umbrella scheme constituting two separate components such as: Central Sector Scheme and Centrally Sponsored Scheme. PMMSY has been approved at a total estimated investment of Rs 20,050 crores. The composition of investment is as follows:

• Central Share of Rs 9407 crore
• State Share of Rs 4880 crore
• Beneficiaries Share of Rs 5763 crore

Major Benefits of PMMSY:

1. Address the critical gaps in the fisheries sector and realize its potential.
2. Augmenting fish production and productivity at a sustained average annual growth rate.
3. Improving availability of certified quality fish seed and feed, traceability in fish and including effective aquatic health management.
4. Creation of critical infrastructure including modernisation and strengthening of value chain.
5. Creation of direct gainful employment opportunities to about 15 lakh fishers, fish farmers, fish workers, fish vendors and other rural/urban populations in fishing and allied activities.
6. Boost to investments in fisheries sector and increase of competitiveness of fish and fisheries products.
7. Social, physical and economic security for fishers and fish workers.

Intended Beneficiaries:

Fishers, Fish farmers,  Fish workers, Fish vendors, SCs/STs/Women/Differently abled persons, Fisheries cooperatives/Federations, FFPOs, Fisheries Development corporations, Self Help Groups (SHGs)/Joint Liability Groups (JLGs) and  Individual Entrepreneurs.

The Indian aerospace industry is one of the fastest growing aerospace markets in the world. the country has an excellent pool of resources matching global standards. India’s liberalized economy offers sound opportunities for international companies that look to outsource Manufacturing and Maintenance, Repair and Overhaul (MRO) activities. India’s aerospace sector is at an inflection point. Various estimates put Aerospace & defence expenditure on acquisitions at around Rs. 5 lakh Crore (US$ 100 Billion) over the next 10 years. Robust growth potential of the industry is attracting original equipment manufacturers (OEMs) in this sector to setup facilities in India thereby providing tremendous opportunity for all stakeholders. With a size of US$ 16 Billion, – investment opportunity in india

The Indian civil aviation industry is ranked amongst the top 10 globally. It is in the space industry that India has made even more significant strides – it is one of the six countries in the world that undertakes space launches with commendable work put in by Indian Space Research Organisation (ISRO). ISRO has successfully ope rationalized two major satellite systems mainly Indian National Satellite for communication services and Indian Remote Sensing (IRS) Satellite for management of natural resource –

GROWTH PROSPECTS

The Defence Procurement Policy (DPP-2011) has included civil aviation equipment in the list of direct offsets. This has boosted the Indian aviation market and by 2017 the same is projected to be among the three largest markets globally.

i) The MRO segment in India is envisioned to attain Rs. 1300 Crore by way of 2020. Given the labour extensive nature of MRO, severalmain MRO companies, OEMs and worldwideairlines have outsourced heavy preservation work to India

ii) The u . S . A . has been upgrading its airports to international standards, catering to heavier cargo and passenger visitors. Private airways now account for 75% of domestic aerospace market

iii) Growth in air visitors is predicted to outperform the worldwide average till 2025. In navy aviation, India is predicted to spend about $35 billion over the next 20 years because it replaces its present fleet. Indian MRO section has been growing at 11 percent and has not been affected substantiallyby means of the slowdown. This market is expected to grow at a mean of 10% and reach $ 2.6 billion by way of 2020.

iv) The Indian Government has recognized the want for massive investment to meet these developing wishes:

The Ministry of Civil Aviation estimates funding of $ 200-three hundred billion over the subsequent 25 years, until 2034. The Airports Authority of India has planned funding of $ 3.04 billion to upgrade airports throughout the united states, at the same time asthe arena is open for public personal partnerships (PPPs). According to Boeing, India desires 856 airplanes worth $ 72.6 billion over the subsequent 20 years to fulfill the surging demand.

v) The Defense Procurement Policy (DPP-2011) has included civil aviation equipment in the list of direct offsets. This has boosted the Indian aviation marketplace and with the aid of 2017 the same is projected to be many of the three biggest markets globally – investment opportunity in India

POLICY INITIATIVES

The Indian Government has liberalized the framework for operating in the aerospace industry considerably:

• Manufacturing and R&D activity is allowed 100% Foreign Direct Investment on automatic route in all areas, except air traffic services.

 • 100% FDI permitted under automatic route for MRO, flying training institutes and technical training institutes.

 • 100% tax exemption for airport projects for a period of 10 years.

• Tax incentives are given for investing in Special Economic Zones.

GROWTH FACTORS

the aerospace industry include both macro and micro factors that provide attractive fiscal benefits for developers and manufacturers:

a. growing domestic aircraft demand,

 b. liberalization of civil aviation policies,  offset requirements,

d. a strong domestic manufacturing base,

e. cost advantages, talent pool, and a liberal Special Economic Zones law,

g. globalization of Maintenance, Repair and Overhaul (MRO) services,

h. manpower cost competitiveness,

 i. availability of talent, & locational advantages,

k. use of technologies such as increased use of composites, modern engine technology, all weather capabilities, etc – investment opportunity in India

FDI POLICY IN AEROSPACE

The defence sector was opened up to 100% for Indian private sector participation, with FDI permissible up to 26%, both subject to licensing and Government approval. However, this cap and the accompanying conditions failed to attract FDI with a mere 5 million USD having come in since 2001. Recognising this, the new Government decided to raise the cap to 49% through the FIPB approval route and has further decided that FDI beyond this will be allowed by the Cabinet Committee on Security only where cutting-edge technology is being transferred.

The Indian aerospace industry is moving into an era of multinational cooperation, or ‘horizontal specialisation’, where original equipment manufacturers as well as 6 service suppliers seamlessly integrate functions such as engineering, manufacturing, and customer support across multiple global locations.

The Ministry of Food Processing Industries (MoFPI) on June 11, 2020, issues Guidelines for short term intervention for all fruits and vegetables under Operation Greens under Atmanirbhar Bharat Abhiyan mofpi scheme

Ministry is implementing a central sector scheme, namely “Operation Greens” Operation Greens will be extended from Tomatoes, Onion and Potatoes (TOP) to ALL fruits and vegetables (TOTAL); value chain with a budgetary allocation of Rs. 500 crores. The scheme has two-pronged strategy of Price stabilisation measures (for short term) and integrated value chain development projects (for long term).- operation greens

The salient features of the guidelines are:

The objective of intervention is to protect the growers of fruits and vegetables from making distress sale due to lockdown and reduce the post -harvest losses.

Subsidy :   

Maximum admissible subsidy amount per applicant will be Rs. 1 crore during the entire period of 6 months and extended;      

Eligible entities:   

Food Processors, FPO/FPC, Co-operative Societies, Individual

farmers, Licensed Commission Agent, Exporters, State Marketing/Co-operative Federation, Retailers etc. engaged in processing/ marketing of fruits and vegetables.- operation greens

 Eligible Crops: –

 fruitsØ & vegetables, on the basis of recommendation received from the Ministry of Agriculture will be eligible under the Scheme

 Pattern of Assistance: –

Ministry will provide subsidy @ 50 % of the cost of the following two components, subject to the cost norms: 

• Transportation of eligible crops from surplus production cluster to consumption center; and/or 
• Hiring of appropriate storage facilities for eligible crops (for maximum period of 3 months)

Essential conditions:

The subsidy will be disbursed to the eligible entities, in case of fulfilment of the following conditions: – 

Price in the notified production clusters meets any one of the following conditions: 

• Price fall below preceding 3 years’ average market price at the time of harvest; 
• Price fall more than 15% compared to last year market price at the time of harvest;
• Price fall less than the benchmark price for procurement, if any, fixed by the State/Central Government for a specified period – operation greens mofpi scheme

     Many may be surprised with my topic but its fact that Corona has led to bringing Govt of India unprecedented reforms under “Atmanirbhar Bharat” which would have taken decades to come in our democratic country due to political reasons. It is true that Covid-19 has done immense damage to world economy, health & social security of all human beings. And it is Pandemic but may become Endemic diseases considering world history & current scenario, it is predicated that getting vaccination, Production& then It’s application to the furthest corners of world would take many years.- business opportunity in corona era

Thus, “Stay Home, Stay Safe” only would not work but we have live with corona and work around this by taking extreme precautions as directed by WHO & Governments from time to time. Thus, in my opinion every business should form specific strategy to come out & grow by addressing various challenges & disruptions caused & convert them into Opportunities.

Now, coming to Specific Opportunities created due to changed lifestyle due to Covid-19 &Atmanirbhar Bharat package for MSME, Large Corporates & others to make Self Reliant India & Support Make in India Policies to be dealt in parts.

For MSME-

Firstly,as per New MSME Definition which is with composite criteria of Investment & Annual Turnover for both Manufacturing & Services sector is as under: – Business opportunity in corona era

Classification	Investment in Plant & Machinery or Equipment	Composite	Annual Turnover Rs In Cr
Micro	Less than 1	and	Less than 5
Small	1-10	and	5-50
Medium	10-20	and	50-100

Many of business may not have registered as MSME even earlier, should obtain Udyog Aadhar to avail benefits under the Package & other government incentives. However, PurelyTrading companies are not covered by the scheme.

The Major announcement are-

1. Collateral-free Automatic Loans: –

• Eligible borrowers will be Existing Bank’s & NBFC borrowers companies having outstanding loans of up to Rs. 25 crores outstanding and turnover up to Rs.100 crore. The borrower should have a “Standard” rating.
• Credit Line AmountTop Up of 20% of entire outstanding credit as on 29.2.2020
• Loan Tenure of 4 years with Moratorium period of 12 months on principal payment
• Last date of avail the benefit: 31st October 2020
• 100% credit guarantee cover by Government

2.      Subordinate Debt for Stressed MSMEs-

• Eligible borrowers will beFunctioning MSME which are NPA or Stressed
• The Promoters of the MSME will be given debt by banks, which will then be infused by the promoter as equity in the Unit.
• CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)will provide partial credit guarantee support to bank

3. Equity infusion for MSMEs through Fund of Funds (FoF)

• As MSME’s have inability of raising debt beyond a particular level due to promoters’ Margin requirements by banks.
• Those with Growth potential and viability canget equity infusion from this.
• FoF will be operated through a Mother Fund and few daughter funds
• Will Encourage MSME’s to get Listed on SME Stock Exchanges

4. Other Measures for MSME’s:-

• MSME Receivables from Government & Central Public Sector Undertaking’s will be released in 45 days.
• E-market Linkage will be promoted as a replacement for Trade fairs & Exhibitions.

 5. Common Relief/ Measures: –

• Global tenders will be disallowed in Government procurement tenders upto Rs 200 crores
• 24% EPF Contribution of monthly wages will be given for wage earners below Rs.15000 p.m. in business having less than 100 workers for 6 months (Mar to Aug’20) under PMGKP. Other than these, EPF Contribution at reduced rate of 10% for both Employer & Employee for 3 Months (June to Aug’20).
• TDS/TCS Rates reduced by 25% of existing rate from 14.05.20 to 31.03.21.
• 6 Month extension to contractors by all central agencies (like Railways, Roads, PWD). Govt Agencies will partially release Bank Guarantees to the extent of work completed to ease cash flows.
• Extension of 6 months of Registration & Completion date under RERA for projects expiring on or after 25.03.20.
• For loans by NBFC to Commercial Real Estate, extension of 1 year for Date of Commencement of commercial operation (DCCO)

 6. Measures for Liquidity Infusion in Market: –

• Moratorium of 3 months on installment & interest on Term Loan & Interest on working capital facilities (Mar to June’20)
• Issuance of all pending Income tax refunds of Non-corporate & Charitable Institutions.
• Rs. 30,000/- Cr’s Issuance of Fully GoI Guaranteed Investment Grade Debt Papers of NBFC’s/HFC’s/ Mutual Funds will be then intern distributed them as loans.
• Rs. 45,000/- Cr’s Issuance of 20% Partial GoI Guaranteed AA Paper and below including unrated Debt Papers of NBFC’s/HFC’s/ Mutual Funds.
• Rs. 90,000/- Cr’s to Power Distribution co. which shall be passed as rebate to final consumers (Industries)- business opportunity in corona ea

• FM announced collateral-free loans worth ₹3 lakhs for Micro, Small & Medium Enterprises (MSMEs) that have a turnover up to ₹100 crores till October 31, 2020.

• To benefit around 2 lakh MSMEs that have the problem of equity, ₹20,000 crores will be provided.

• The definition of MSMEs has been revised. As per the new definition, there is no differentiation between a service sector company and manufacturing company.

• Any company that will have an investment up to ₹1 crore and turnover of ₹5 crores will be a micro company from an investment of ₹10 lakhs for a service sector company and ₹25 lakhs for a manufacturing company.

• A company with an investment of up to ₹20 crores and turnover of ₹100 crores has been defined as a medium company from an investment of ₹10 crores and a turnover of ₹50 crores.

• Central government and PSUs will complete all the pending payments to MSMEs within 45 days.

• The central government will pay EPF contributions for 3 more months to benefit over 72 lakh employees.

• TDS and TCS rates have been slashed by 25 per cent with effect from today till the end of this financial year, i.e. March 31, 2021.

• All pending refunds to non-profit trusts and non-corporate business entities and professions will be issued immediately.

• Due date of all income tax returns has been extended from July 31 and October 31 to November 30, 2020.

• Stressed NBFCs/HFCs/MFIs are announced a special liquidity scheme worth ₹30,000 crores.

• Partial credit guarantee scheme has been announced for NBFCs ₹45,000. The MSMEs government will bear the first 20 per cent loss under this scheme.

• Power Distribution Companies are announced an emergency liquidity support worth ₹90,000.

• Contractors are given an extension of 6 months. Real estate projects registered under RERA have also given an extension of registration and completion date.

Policy Reforms to fast-track Investment – Effort towards Atmanirbhar Bharat 2020 (self supporting)

 • Fast track Investment Clearance through Empowered Group of Secretaries (EGoS).

 • Project Development Cell in each Ministry to prepare investible projects, coordinate with investors and Central/ State Governments

 • Ranking of States on Investment Attractiveness to compete for new investments

• Incentive schemes for Promotion of New Champion Sectors will be launched in sectors such as Solar PV manufacturing; Advanced cell battery storage; etc.- Atmanirbhar bharat 2020

Upgradation of Industrial Infrastructure (Aatmanirbhar Bharat 2020)

Scheme will be implemented in States through Challenge mode for Industrial Cluster Upgradation of common infrastructure facilities and connectivity.

 • Availability of Industrial Land/ Land Bank for promoting new investments and making information available on Industrial Information System (IIS) with GIS mapping.

 • 3376 industrial parks/estates/SEZs in 5 lakh hectares mapped on Industrial Information System (IIS)

• All industrial parks will be ranked in 2020-21

Policy Reforms – Introduction of Commercial Mining in Coal Sector

Policy Reforms – Introduction of Commercial Mining in Coal Sector

Need to reduce import of substitutable coal and increase Selfreliance in coal production. Government will introduce competition, transparency and private sector participation in the Coal Sector through :(aatmanirbhar bharat 2020 self supporting)

 • Revenue sharing mechanism instead of regime of fixed Rupee/tonne

• Earlier, only captive consumers with end-use ownership could bid.

• Now, any party can bid for a coal block and sell in the open market.

• Entry norms will be liberalized • Nearly 50 blocks to be offered immediately.

 • No eligibility conditions, only upfront payment with a ceiling.

Policy Reforms – Introduction of Commercial Mining in Coal Sector

Exploration-cum-production regime for partially explored blocks

• Against earlier provision of auction of fully explored coal blocks, now even partially explored blocks to be auctioned.

 • Will allow private sector participation in exploration.

 • Production earlier than scheduled will be incentivized through rebate in revenue-share

Policy Reforms – Diversified Opportunities in Coal Sector – Investment of Rs 50,000 crores

• Coal Gasification / Liquefication will be incentivised through rebate in revenue share.

 • Will result in significantly lower environment impact

• Will assist India in switching to a gas-based economy

 • Infrastructure development of Rs. 50,000 crores

 • For evacuation of enhanced CIL’s target of 1 billion tons coal production by 2023-24 plus coal production from private blocks.

 • Includes Rs 18,000 cr worth of investment in mechanized transfer of coal (conveyor belts) from mines to railway sidings.

 • This measure will also help reduce environmental impact

Enhancing Private Investments in the Mineral Sector (Atmanirbhar Bharat 2020)

Structural reforms to boost growth, employment and bring state-of-the-art technology especially in exploration through:

 • Introduction of a seamless composite exploration-cum-mining-cum-production regime.

 • 500 mining blocks would be offered through an open and transparent auction process

• Introduce Joint Auction of Bauxite and Coal mineral blocks to enhance Aluminum Industry’s competitiveness. Will help aluminium industry reduce electricity costs.

Enhancing Self Reliance in Defence Production (Aatmanirbhar Bharat 2020)

• ‘Make in India’ for Self-Reliance in Defence Production:

 • Notify a list of weapons/platforms for ban on import with year wise timelines;

• Indigenisation of imported spares;

• Separate budget provisioning for domestic capital procurement.

• Will help reduce huge Defence import bill.

 • Improve autonomy, accountability and efficiency in Ordnance Supplies by Corporatisation of Ordnance Factory Board.

Policy Reforms – Defence Production

FDI limit in the defence manufacturing under automatic route will be raised from 49% to 74%

 • Time-bound defence procurement process and faster decision making will be ushered in by :

 • Setting up of a Project Management Unit (PMU) to support contract management;

 • Realistic setting of General Staff Qualitative Requirements (GSQRs) of weapons/platforms;

• Overhauling Trial and Testing procedures

India to become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO)

Tax regime for MRO ecosystem has been rationalized.

• Aircraft component repairs and airframe maintenance to increase from Rs 800 crores to Rs 2000 crores in three years.

• Major engine manufacturers in the world would set up engine repair facilities in India in the coming year.

• Convergence between defence sector and the civil MROs will be established to create economies of scale.

• Maintenance cost for airlines will come down.

For those of you who have never started a business before, it can sound like an intimidating task.Don’t get us wrong – We are not saying that getting your startup company up and running is an easy mission by any stretch.It will take hard work, dedication, money, some sleepless nights, and even some failure  before you succee

I . A BUSINESS PLAN

A proper business plan gives you a significant advantage.So how do you make a business plan?In simple terms, a business plan is the written description of your company’s future.You outline what you want to do and how you’re planning to do it. Typically, these plans outline the first 3 to 5 years of your business strategy. The business plan needs to be the first thing on your list because you’ll use it to help you with some of the remaining steps.

 II. Secure appropriate funding

You’ll need adequate capital to get yourself off the ground.There’s no magic number that applies to all businesses.The startup costs will obviously vary from industry to industry, so your company may require more or less funding depending on the situation.For a small, part-time startup with no equipment, employee salaries, or overhead to worry about, it may only cost you less than $10,000.Other ventures may cost millions. The cost of doing business is much higher than people initially think.Let’s circle back to our business plan for a minute.All business plans contain a financial plan.

This plan usually includes:

• Balance sheet
• Sales forecast
• Profit and loss statement
• Cash-flow statement

III. How To Get Funding For Startups

You need to learn the best options to get funding for a startup. Not only that, you don’t . Following are some ways to acquire a funding

• Bank Loans

You can grow your small or large scale company with business loans from any trusted bank. These Business loans come with a host benefits and are tailormade to meet your unique business needs with competitive interest rates. See if you have what it takes to qualify to find the best lender for you. You will need to have a good Credit card history and credit score for the loan and there you are.

• Angel Investor

Get yourself financed by Angel investors who are often retired entrepreneurs or executives, who may be interested in angel investing for reasons that go beyond pure monetary return. Angel investors can often provide valuable management advice and important contacts.

Because there are no public exchanges listing their securities, private companies meet angel investors in several ways, including referrals from the investors’ trusted sources and other business contacts, at investor conferences and symposia, and at meetings organized by groups of angels where companies pitch directly to investor in face-to-face meetings.

• Venture-capital investors

It is a private equity which is a form of financing, provided by firms or funds to small to large scale business. Venture Capitalists take the risk of financing risky start-ups in the expectation that some of the firms they support will become successful. You can fund your business with the help of these Venture Capitalists if you have an attractive idea to impress them and urge them to trust you.

• Equity Share

It is a main source of finance for any company giving investors right to vote, share profits and claim on assets. In the world of financial and investment management, ‘equity share’ is a big word frequently used in every next discussion. We call it stock, ordinary share, or shares, all are one and the same.

There are different types of Equity shares that are classifies based on various things and those are Authorized share capital, Issued share capital, Subscribed share capital and Paid up capital.

• Join a startup incubator or accelerator

There is small difference between these terms as Incubators start-ups that are new and are at very early stage of their business whereas Accelerators accelerates the growth of an existing idea and business. So all you have to do is choose the right one for your business.

 

MUDRA Loans

Micro-units Development and Refinance Agency (MUDRA) is an organisation established by the government of India to provide business finance to micro-business units. The loans under the scheme are given on the pretext of ‘funding the unfunded’. Since small companies and startups are often left to their own devices for financing their venture, the government has created the concept of low-cost credit to such under takings. MUDRA Loans are also a refinanced business loans  approved and disbursed through public sector banks, private sector banks, co-operative societies, small banks, scheduled commercial banks and rural banks that come under the scheme. The loans are generally given to micro or small businesses operating in the manufacturing, trading and services sector. -Government loan scheme

The MUDRA Loans  are structured as under,

• Sishu Loans up to Rs. 50,000/-
• Kishor Loans up to Rs. 5,00,000/-
• Tarun Loans up to Rs. 10,00,000/-

Credit Guarantee Fund Scheme for Micro and Small Enterprises

The CGMSE was first launched in the year 2000 as a monetary support scheme for micro and small enterprises. It offers collateral-free credit for both new and existing business units that satisfy its eligibility criteria. The scheme provides working capital loans up to ₹ 10 lakhs without any collateral. However, for all credit facilities above ₹ 10 lakhs and up to ₹ 1 crore only primary security or mortgage of land and building associated with the building is obtained and such eligible accounts are covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Asset created through the credit facility which are associated with the business unit are also considered as security when the loan amount exceeds ₹ 10 lakhs.

The business loans under this scheme are financed by various public and private sector banks covered under the scheme.- government loan scheme

National Small Industries Corporation Subsidy

The NSIC subsidy for small businesses offers two kinds of financial benefits – Raw Material Assistance and Marketing Assistance. Under the raw material assistance scheme of NSIC, both indigenous and imported raw materials are covered. Under the marketing support, funds are given to SMEs for enhancing their competitiveness and the market value of their products and services. The NSIC is mainly focused on funding small and medium enterprises  who wish to improve / grow their manufacturing quality and quantity.

Credit Link Capital Subsidy Scheme for Technology Upgradation

This scheme allows small businesses to upgrade their process by financing technological up gradation. The technological up gradation can be related to numerous processes within the organization, such as manufacturing, marketing, supply chain etc. Through the CLCSS scheme, the government aims to reduce the cost of production of goods and services for small and medium enterprises, thus allowing them to remain price competitive in local and international markets.

The scheme is run by the Ministry of Small-Scale Industries. The CLCSS offers an up-front capital subsidy of 15% for eligible business. However, there is a cap to the maximum amount that can be availed as subsidy under the scheme, which is set at ₹ 15 lakhs. Sole proprietorship, partnership firms, co-operative, private and public limited companies come under the ambit of this business loan scheme.- Government loan schemes