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Cabinet approved Sugar Export Subsidy Cabinet approved Sugar Export Subsidy Cabinet approved Sugar Export Subsidy

The government on Wednesday  approved a subsidy of Rs 3,500 crore to sugar mills for the export of 60 lakh tonnes of sweetener  during the ongoing marketing year 2020-21 as part of its    effort to help them clear  outstanding due  to sugarcane farmers  briefing the media after  meeting   information and broadcasting  ministry  said the cabinet  commited on economic affairs   has approved  a subsidy of rs 3500 crore  on export of 60 lakh tonnes  of sweetener and subsidy amount  will directly given to  farmer

The CCEA  has approved the subsidy  at the rate of  rs  6 per kg  for the current year much lower than about rs 10.50 per kg in the 19-20 marketing year keeping view favourable international prices.        

Javadekar said both “sugar industry as well as sugarcane farmers  are in crisis”  because of high domestic production in the last two-three years. This year too, production is expected to be 310 lakh tonnes as against the annual demand of 260 lakh tonnes.

The  decision will benefit five core farmers and five lakh workers employed in sugar mills and related ancillary activities. Sugar mills will be able to earn rs 18000 crore revenue from the export, said javadekar, who is also union environment minister.

In a separate statement, the food ministry said farmers sell their sugarcane to sugar  mills, however, farmers are not getting their dues from sugar mill owners as they have surplus sugar stock

“To address this concern, the government is facilitating the evacuation of surplus sugar stock . this will enable payment of dues of the sugarcane farmers. Government will incur about rs 3500 crore for this purpose,”it said.

And this assistance  would be directly credited into farmers’ accounts on behalf of sugar mills against cane price dues and subsequent balance, if any, would be credited to mill’s account, it added.

The subsidy aims at covering expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport  and freight charges on export of up to 60 lakh tonnes of sugar limited to Maximum Admissible  Export Quota (M AEQ) allocated to sugar mills for sugar season 2020-2021.

In the previous marketing year 2019-20 (October-September),  the  government provided a lump sum export subsidy of rs 10448 per tonne,  costing the exchequer Rs 6268 crore.

Mills exported 5.7 million tonnes of sugar against the mandatory quota of 6 million tonnes set for the 2019-20 season( October-september), according to official data.

India the world’s second-largest sugar-producing  country, had  to offer export subsidies during the past two years  to reduce surplus stocks and help cash-starved sugar mills  clear cane payment to growers.

Last month, food secretary Sudhanshu Pandey  said the government is reconsidering extension of sugar export subsidies as india has got good opportunity to sell the sweetener in the international market.

“Thailand”s  production is expected to be down this year, while Brazil’s crushing will only start in April 2021. From now till April, there is good export opportunity for india, “ the secretary had said.

This is the opportunity the industry has to encash upon, we are doing our best given that india is expected to have a bumper  sugar  production this year,” he added.

The Union Finance Minister Nirmala Sitharaman has announced the much awaited Atmanirbhar Bharat 3.0 package to boost economy today.

The Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs has been extended till March 31, 2021. The scheme provides for 20% of outstanding loan amount collateral-free fully guaranteed loan by the government.

The MSMEs including the business enterprises, individual loans for business purposes, MUDRA borrowers are eligible for this scheme.

The Rs 2.05 lakh crore have already been sanctioned and Rs. 1.4 lac crore disbursed to 61 lakh borrowers under this scheme as of November 12.

The new package also includes announcement that Rs. 3,000 crore will be given to EXIM Bank for promotion of project exports through Lines of Credit under IDEAS Scheme.

Another major job scheme is announced called ‘Atma Nirbhar Rozgar Yojana’ to create jobs to be effective from 1 October 2020. Under the scheme if new employees of requisite number are recruited from October 1, 2020 to June 30, 2021, the establishments will be covered for the next two years

ECLGS for MSMEs extended ECLGS for MSMEs extended

Another major job scheme is announced called to create jobs to be effective from 1 October 2020. Under the scheme if new employees of requisite number are recruited from October 1, 2020 to June 30, 2021, the establishments will be covered for the next two years

Another major job scheme is announced called to create jobs to be effective from 1 October 2020. Under the scheme if new employees of requisite number are recruited from October 1, 2020 to June 30, 2021, the establishments will be covered for the next two years Another major job scheme is announced called to create jobs to be effective from 1 October 2020. Under the scheme if new employees of requisite number are recruited from October 1, 2020 to June 30, 2021, the establishments will be covered for the next two years Another major job scheme is announced called ‘ to create jobs to be effective from 1 October 2020. Under the scheme if new employees of requisite number are recruited from October 1, 2020 to June 30, 2021, the establishments will be covered for the next two years

The union cabinet headed by PM approved the introduction of the productive – Linked Incentives (PLI) scheme in 10 key sector under which businesses will get incentives worth over Rs 1.46 lakh crore in 5 years . The approval comes with an aim to enhance India’s manufacturing capabilities and enhance export under Atmanirbhar bharat  .

Highlights

• The PLI scheme will be implemented by the concern union minister
• The scheme will be within the overall financial limits prescribed
• The PLI scheme across the  10, newly added , key specific sector will make Indian manufactures globally competitive
• The  move also aim to attract investment in the areas of core competency and cutting edges technology. it will also   ensure efficiencies , create economies of scale and enhance export and make India an integral part of the global supply chain

Sectors	Implementing Ministry/Department	Approved financial outlay over a five-year period Rs. In crore
Advance Chemistry Cell (ACC) Battery	NITI Aayog and Department of Heavy Industries	18100
Electronic/Technology Products	Ministry of Electronics and Information Technology	5000
Automobiles & Auto Components	Department of Heavy Industries	57042
Pharmaceuticals drugs	Department of Pharmaceuticals	15000
Telecom & Networking Products	Department of Telecom	12195
Textile Products: MMF segment and technical textiles	Ministry of Textiles	10683
Food Products	Ministry of Food Processing Industries	10900
High Efficiency Solar PV Modules	Ministry of New and Renewable Energy	4500
White Goods (ACs & LED)	Department for Promotion of Industry and Internal Trade	6238
Speciality Steel	Ministry of Steel	6322
Total		6322

The PLI scheme across these 10 key specific sectors will make Indian manufacturers globallycompetitive, attract investment in the areas of core competency and cutting-edge technology; ensureefficiencies; create economies of scale; enhance exports and make India an integral part of the globalsupply chain.

• ACC battery manufacturing represents one of the largest economic opportunities of the twenty-first century for several global growth sectors, such as consumer electronics, electric vehicles, and renewable energy

• India is expected to have a USD 1 trillion digital economy by 2025. Additionally, theGovernment’s push for data localization, Internet of Things market in India, projects such as SmartCity and Digital India are expected to increase the demand for electronic products.

• The above will be in addition to the already notified PLI schemes in the following sectors

Sector Wise Product Lines

Sector	Product Lines
Advance Chemistry Cell(ACC) BatteryManufacturing	ACC Batteries
Electronic/TechnologyProducts	Semiconductor FabDisplay FabLaptop/ NotebooksServersIoT DevicesSpecified Computer Hardware
Automobile and Auto Components	Automobile and Auto Components
Automobile and Auto Components	Category 1 BiopharmaceuticalsComplex generic drugsPatented drugs or drugs nearing      patent expiryCell based or gene therapy productsOrphan drugsSpecial empty capsulesComplex excipients     Category 2   Active Pharma Ingredients (APIs) /Key Starting Intermediaries (Dls)Materials(KSMs) and /Drug   Category 3 Repurposed DrugsAuto-immune drugs, Anti-cancer drugs, Anti diabetic drugs, AntiInfective drugs, Cardiovascular drugs,Psychotropic drugs andAnti-Retroviral drugsIn-vitro Diagnostic Devices (IVDs)PhytopharmaceuticalsOther drugs not manufactured in IndiaOther drugs as approved
Telecom Products	Core Transmission Equipment4G/5G, Next Generation Radio Access Network and WirelessEquipmentAccess & (IoT) Access Devices and Other WirelessEquipment Customer Premises Equipment (CPE), Internet ofThingsEnterprise equipment: Switches, Router
Textiles	Man-Made Fiber SegmentTechnical Textiles
Food Processing	Ready to Eat / Ready to Cook (RTE/ RTC)Marine ProductsFruits & VegetablesHoneyDesi GheeMozzarella CheeseOrganic eggs and poultry meat
Solar PV manufacturing	Solar PVs
White Goods	Air conditionersLED
Steel Products	Coated SteelHigh Strength SteelSteel RailsAlly Steel Bars & Rods

The government”s subsidy scheme for transportation of notified fruits and vegetables is a big step towards making the country self-reliant, Agriculture and Food Processing Minister Narendra Singh Tomar said on Wednesday.

The subsidy under the Operation Greens TOP to TOTAL is a big step towards Aatmanirbhar Bharat, an official statement said.

The minister said the Ministry of Food Processing Industries (MoFPI) has brought out various schemes for farmers.

Under Aatmanirbhar Bharat Abhiyan, Operation Greens Scheme TOP to TOTAL provides a 50 per cent subsidy on transport and storage of notified fruits and vegetables, if prices of such fruits or vegetables are below the trigger price.

In addition to direct submission of the online claim to the MoFPI, the transportation subsidy would also be available under the Kisan Rail Scheme under a very simplified way.

“Any person, including farmers, can transport any notified fruits and vegetable crops through Kisan Rails.

“Railways would charge only 50 per cent of freight charges on these fruits and vegetables. Remaining 50 per cent of the freight charges will be provided as subsidy under Operation Greens Scheme by MoFPI to the Indian Railways,” the statement said.

The revised scheme guidelines have been uploaded on the ministry”s website.

All consignments of notified fruits and vegetables irrespective of quantity and price would be eligible for 50 per cent freight subsidy.

At present, the Railways is operating three Kisan Rails between Devlali (Maharashtra) and Muzaffarpur (Bihar), Anantapur in Andhra Pradesh to Delhi, and Bangalore to Delhi.

It also plans to start fourth Kisan Rail from Nagpur and Warud Orange City in Maharashtra to Delhi.

As many as 19 fruits are eligible under the scheme — Mango, Banana, Guava, Kiwi, Litchi, Mousambi, Orange, Kinnow, Lime, Lemon, Papaya, Pineapple, Pomegranate, Jackfruit, Apple, Aonla, Passion fruit and Pear.

In vegetables, 14 crops are eligible — French beans, Bitter Gourd, Brinjal, Capsicum, Carrot, Cauliflower, Chillies (Green), Okra, Cucumber, Peas, Onion, Potato and Tomato.

msme loans – Public and Private Sector banks have sanctioned loans worth Rs 1.58 lakh crore under the 100% Emergency Credit Line Guarantee Scheme (ECLGS), the Finance Ministry informed on Thursday 3.09.2020

Finance Minister Nirmala Sitharaman on Thursday reviewed the progress made by various lenders under ECLGS, PCGS 2.0 and Sub-ordinate Debt Schemes announced as part of the ‘Aatmnirbhar Bharat Abhiyaan’. 

An amount of Rs 1.58 lakh crore has been sanctioned as on August 31 2020 under ECLGS, out of which more than Rs 1.11 lakh crore has also been disbursed. Under PCGS 2.0, Bonds/CPs of Rs 25,055.5 crore have been approved for purchase by Public Sector Banks so far, out of which Rs 13,318.5 crore amounting to more than 53% of the portfolio pertains to Bonds/CPs rated below AA-, the Finance Ministry statement said.

FM Sitharaman has advised lenders to try and extend the maximum possible relief to borrowers before the festive season. 

The ECLGS was announced by the Government as a part of Aatma Nirbhar Bharat Package, to mitigate the distress caused by lockdown due to COVID-19 by providing credit to different sectors, especially MSMEs.

The top lenders under the Scheme are State Bank of India (SBI), Canara Bank, Punjab National Bank (PNB), Bank of India, Union Bank of India and HDFC Bank Ltd- .msme loans

As part of the Aatmanirbhar Bharat package, government had announced its plans for Rs 3 lakh crore as additional credit to MSMEs and small businesses. Such enterprises were to be eligible to receive up to 20 percent of their existing borrowing as additional loans at interest rates which were capped.- msme loans

The minister also said distress must not impact the lenders’ assessment of their creditworthiness as and when the moratorium on loan repayments is lifted.

also focused on ensuring banks putting in place Board-approved policy for resolution, identifying eligible borrowers and reaching out to them.”

The lenders assured that they are ready with their resolution policies, have started the process of identifying and reaching out to eligible borrowers, and that they will comply with the timelines stipulated by the Reserve Bank of India (RBI).Banks sanction Rs 1.58 lakh crore loans to MSMEs Banks sanction Rs 1.58 lakh crore loans to MSMEs

Make in India programme of the government comes in a full circle when the feasibility of import replacement was deliberated between steel and auto industry. – opportunities for private Investment and FDI

Various agencies are putting forward their estimates for India’s GDP growth in Q1 FY21. That the economy performed much below normal contraction level due to the pandemic and the subsequent lockdown is a foregone conclusion and there is hardly any surprise awaiting on that count. Looking forward, the Q2 is yet to exhibit a sharp U type growth path, although the government is trying its best to help and support the economy within its own limitations of rising fiscal deficit, increasing food prices and unemployment. Unlike in some other advanced countries, specifically China, where massive stimulus measures have been announced out of mounting public debt and issuance of bonds to fund the expenditure.- opportunities for private Investment and FDI

The falling trend in GST collections in the first four months of the current fiscal year (collections of Rs2,72.642 crore— more than 20% shortfall compared to last year) and revenue loss in customs duty due to decline in imports (both oil and non-oil) have led to a limited fiscal space for the government to enhance investment in infrastructure. It is therefore certain that apart from roadways (NHAI for national highways from market borrowing), railways (DFC, Metro from World Bank and other foreign aid), affordable housing (under credit -linked subsidy scheme), pipeline expansion (transportation of gas and petroleum products funded by oil companies), there are other critical sectors left requiring massive private investment.

sources : https://www.financialexpress.com/

Union Minister of Micro, Small and Medium Enterprises (MSMEs) Nitin Gadkari has urged investors including from the US to invest in Indian infrastructure sector, MSMEs, banks, NBFCs and other areas.

Addressing the India Idea Summit organised by the US-India Business Council, jointly with the US Chamber of Commerce, the MSME Minister said,” It is a golden opportunity for you to invest in airports, roads, MSME, railways, waterways and other sectors. There is a huge potential for investment. Returns are very good compared to the USA. I feel Indian situation is good.”

Terming India as the best destination for foreign investment with high returns, the MSME Minister said the country was confident of winning the economic war and the government has taken a number of steps to overcome the crisis while referring to COVID-19 pandemic as a temporary phase.

The minister also said that Foreign Direct Investment (FDI) is the need of the hour for pumping in liquidity into the market.

“It is an opportunity for people like you to invest in MSMEs. You will get very good returns…NHAI is another good opportunity. You can invest in seaplanes as there is much potential in the country,” the minister added.

Gadkari further said that we are focusing on how we can develop MSMSE’s and their growth in India, with nearly 50 per cent of India’s exports coming from the sector.

Msme registration- The new process for registration of Micro, Small and Medium Enterprises (MSMEs) will come into effect in the name of ‘Udyam Registration’ from Wednesday, July 1, the government said.

The Ministry has expressed confidence that this process will be extremely simple, seamless entrepreneur friendly.

”It will set an example in Ease of Doing Business, not only in India but internationally. It will reduce transaction time and costs. Entrepreneurs and Enterprises can focus on their real work and become globally competitive,” the Ministry said in a statement on Tuesday.

”MSME registration process is fully online, paperless and based on self-declaration. No documents or proof are required to be uploaded for registering an MSME,” it added.

The Ministry further asserted that Adhaar Number will be required for registration and a registration number will be given after the registration process is completed. After completion of the process of registration, an Udyam Registration Certificate will be issued, it said.

”This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed. There will be no need for renewal of Registration,” the Ministry avowed.

Registration Process is totally free. No Costs or Fees are to be paid in this regard, it added.

The Ministry also informed that firms having EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will also have to re-register themselves.

Last week, the MSME ministry said that an MSME in the country will now be known as ‘Udyam’ since the term comes closer to the meaning of an enterprise.

Finance Minister Nirmala Sitharaman in May announced the change in definition of MSMEs as part of the relief package for the industry amid the Covid-19 outbreak