Yojana Magazine Analysis March 2020 – Free PDF Download

 

• Contents

1. Introduction
2. Tax Proposals
3. Urban Landscape
4. Transport Infrastructure
5. Industries
6. Financial Sector
7. Water & Sanitation
8. Universal Health Coverage
9. Education
10. Skills, Employment & HRD
11. Agriculture
12. Environment & Forest
13. Gender Budgeting & Elderly
14. Northeast Development

 Introduction

Tax Proposals

 

 

Others | Direct Tax

• Dividend Distribution Tax (DDT) removedmaking India a more attractive investment destination
• Start-ups with turnover up to Rs. 100 crore to enjoy 100% deduction for 3 consecutive assessment years out of 10 years.
  • Tax payment on ESOPs deferred
• Cooperative societies exempted from Alternate Minimum Tax (AMT) just like Companies are exempted from the Minimum Alternate Tax (MAT).
• Tax concession for foreign investments:
  • 100% tax exemption to the interest, dividend and capital gains income on investment made in infrastructure and priority sectors before 31^stMarch, 2024 with a minimum lock-in period of 3 years by the Sovereign Wealth Fund of foreign governments.

Others | Indirect Tax

• Excise duty proposed to be raised on Cigarettes and other tobacco products, no change made in the duty rates of bidis.
• Customs Act being amended to enable proper checks of imports under FTAs.
• Anti-dumping duty on PTA abolished to benefit the textile sector.
• Provisions for checking dumping of goods and imports of subsidized goods being strengthened.
• Q #1
• Vivad Se Vishwas’ scheme is aimed at reducing litigations in:
  • direct taxes
  • indirect taxes
  • Both 1 & 2
  • Neither 1 nor 2

3. Urban Landscape

• Story in numbers
• Urban Population
  • Currently – 34%
  • By 2030 – 40%
  • By 2050 – 50%
• Urban share of GDP
  • 2009-10 – 62-63%
  • 2030 – 75%

Urbanization Strategy of India

 

• Overall Investment in Urban Rejuvenation

Progress | SBM

• B/w 2014 & 2020
  • 10 Cr toilets in rural areas
  • 65 L household toilets + 6 L public toilets in urban areas
  • 60% municipal wards practice source segregation (from 41%)
• All cities of 35 States/UTs => ODF
• 699 districts, 2.5 L GPs and 6 L villages => ODF

AMRUT

• Focuses on ensuring:
  • water supply, sewerage and septage management
  • storm water drainage
  • urban transport
  • availability of green and open spaces
  • reform management and support
  • capacity building

Progress |AMRUT

Key figures:

• More than 5000 projects under construction/completion
• 64% urban households have tap water supply
• On track to achieve 62% sewerage coverage by 2020

Key reforms:

• Online Building Permission System in more than 1500 ULBs
• Replacement of streetlights with LED lights (74 Lakh)
• Credit Rating (36 cities have A and higher rating)
• Municipal Bonds worth Rs. 3300 Cr issued
  • Ahmedabad, Amravati, Bhopal, Hyderabad, Pune, Surat & Vizag
• Jal Shakti Abhiyan – Urban (July 2019) – for water conservation

Progress | SCM

 

Progress | SCM

 

PMAY (U)

 

Progress | PMAY (U)

• It is rapidly moving towards achieving the vision for providing a pucca house to every household by 2022.
• Out of 1.03 crore houses approved, 60 lakhs have been grounded for construction, of which 32 lakh houses have been completed and delivered.

Progress | EODB

• Budget announcements
• National Infrastructure Pipeline
  • 103 lakh crore worth projects; launched on 31st December 2019 for the period 2020-2025.
  • More than 6500 projects across sectors, to be classified as per their size and stage of development.
  • 16% has been earmarked for urban rejuvenation
• 1-year internships to fresh engineers in all ULBs in order to enhance the skill of the youth

4. Transport Infra

Context

• To achieve the GDP of $5 trillion by 2024-25, India needs to spend about $1.4 trillion (` 100 lakh crore) over these years on infrastructure

Roads

• Road transport is the dominant mode of transportation in terms of its contribution to Gross Value Added (GVA) and traffic share.
  • As per Govt. report, in 2011-12, road transport is estimated to handle 69% and 90% of the countrywide freight and passenger traffic
• As on Mar 2018, India had a road network of about 59.64 lakh km. The total length of NHs was 1.32 lakh km as on Mar 2019.
• The pace at which roads have been constructed has grown from 17 kms per day in 2015-16 to 29.7 kms per day in 2018-19.
  • However, the pace seems to have moderated to 12 kms per day in 2019-20.

Railways

• Indian Railways (IR) with over 68,000 route kms is the third largest network in the world under single management.
• During 2018-19, it carried 120 crore tonnes of freight and 840 crore passengers making it the world’s largest passenger carrier and 4th largest freight carrier.

Critical Challenges in Railways Modernization

• Fundamentals of how PPPs would be encouraged
• R&D for indigenous manufacturing of Rolling Stock

Aviation

• India is the 3^rd largest domestic market for civil aviation in the world.
• India has 136 commercially-managed airports by AAI and 6 under PPP for Operation, Maintenance and Development of airports.
  • A total of 43 airports have been operationalized under UDAN
• To ease the strain, 100 more airports are to be made operational by FY 2023-24
• To bring in efficiency and resources, 6 airports (Ahmedabad, Guwahati, Jaipur, Lucknow, Mangalore, and Thiruvananthapuram) have been taken up for development under PPP mode

Focus areas in Aviation

• Increasing capacity and service levels in top 30 airports via PPP
• Increasing no. of airports to about 100 and ensuring that all tier II and tier III cities have their own airports
  • Attracting PPPs in lower tier cities is difficult because of viability – may need VGF / subsidies to make workable
  • AAI is fallback option but concerns about AAI managing many loss-making airports is there

Shipping

• Around 95% of India’s trade by volume and 68% in terms of value is transported by sea.
• Despite one of the largest merchant shipping fleet (> 1400) among developing countries, India’s share in total world dead weight tonnage (DWT) is only 0.9% as on January 1, 2019 according to Institute of Shipping Economics and Logistics.

Issues highlighted by Professor G Raghuram

• Sagarmala is not proceeding at the pace envisaged – a part of the problem is environment but there is also a problem of need
  • Capacity additions may not be needed unless for captive purposes
  • There could possibly be a situation of excess capacity in container domain
    • Could also be the case for coal – as power sector moves towards renewables
  • Some earlier PPPs not able to perform well due to restrictive concession agreements
• Need restructuring of regulatory regime
• Connectivity issues on land side, esp. rail, should improve with DFCs and formation of Indian Port Rail Corp. Ltd. (formed in 2015)

 

Air & Rail for Farm

• Krishi Udaanto be launched by the Ministry of Civil Aviation:
  • Both international and national routes to be covered.
  • North-East and tribal districts to realize Improved value of agri-products
• Kisan Railto be setup by Indian Railways through PPP:
  • To build a seamless national cold supply chain for perishables (milk, meat, fish, etc.
  • Express and Freight trains to have refrigerated coaches.

Money?…….National Infrastructure Pipeline

• Launched on 31 Dec 2019, would commence in phases from 2020-21 to 2024-25
• 103 lakh crore worth projects
  • Energy = 24%
  • Urban = 16%
  • Roads = 19% | Railways = 13% | Airports = 1.3% | Ports = 1%
• More than 6500 projects across sectors, to be classified as per their size and stage of development.
• Central Govt. (39%) and State Govt. (39%) will have equal share in funding followed by Private Sector (22%).
  • It is expected that private sector share may increase to 30% by 2025.
• Q #2
• Vivad Se Vishwas’ scheme is aimed at reducing litigations in:
  • direct taxes
  • indirect taxes
  • Both 1 & 2
  • Neither 1 nor 2

5. Industries

Industry, Commerce & Investment

• Investment Clearance Cellproposed to be set up:
  • To provide “end to end” facilitation and support
  • To work through a portal
• National Technical Textiles Missionto be set up:
  • With four-year implementation period from 2020-21 to 2023-24.
  • At an estimated outlay of Rs 1480 crore.
  • To position India as a global leader in Technical Textiles.
• New scheme NIRVIKto achieve higher export credit disbursement

 

Industry, Commerce & Investment

• Turnover of Government e-Marketplace (GeM) proposed to be taken to Rs 3 lakh crore.
• Scheme for Revision of duties and taxes on exported products to be launched.
  • Exporters to be digitally refunded duties and taxes levied at the Central, State and local levels, which are otherwise not exempted or refunded.
• All Ministries to issue quality standard orders as per PM’s vision of “Zero Defect-Zero Effect” manufacturing.

 

Infrastructure

• 100 lakh crore to be invested on infrastructure over the next 5 years
• National Logistics Policy to be released soon:
  • To clarify roles of the Union Government, State Governments and key regulators.
  • A single window e-logistics market to be created
  • Focus to be on generation of employment, skills and making MSMEs competitive.
• National Skill Development Agency to give special thrust to infrastructure-focused skill development opportunities.
• Project preparation facility for infrastructure projects proposed.
  • To actively involve young engineers, management graduates and economists from Universities.
• infrastructure agencies to involve youth-power in start-ups.

Infrastructure | Connectivity

• To take advantage of new technologies:
  • Policy to enable private sector to build Data Centre parks throughout the country to be brought out soon
  • Fibre to the Home (FTTH) connections through Bharatnet to link 100,000 GPs this year
  • 6000 crore proposed for Bharatnet programme in 2020-21

Startups

• A digital platform to be promoted to facilitate seamless application and capture of IPRs.
• Knowledge Translation Clusters to be set up across different technology sectors including new and emerging areas.
• Mapping of India’s genetic landscape- Two new national level Science Schemes to be initiated to create a comprehensive database.
• Early life funding proposed, including a seed fund to support ideation and development of early stage Start-ups.

Financial Sector

 

• Q #3
• Vivad Se Vishwas’ scheme is aimed at reducing litigations in:
  • direct taxes
  • indirect taxes
  • Both 1 & 2
  • Neither 1 nor 2

7. Water & Sanitation

 

 

Protocols

• ODF protocol – independent third party certifies a city as ODF on satisfying certain requirements. To prevent it from slippage, the certification has to be renewed every 6 months.
• ODF+ protocol – to track maintenance of acceptable levels of cleanliness in community/public toilets so that they are functional and actually used by citizens. 739 cities are ODF+.
• ODF++ protocol – to track what was happening to faecal sludge being discharged from the toilets => for complete sewage and faecal sludge management. 292 cities are ODF++.
• SBM Water+ focuses on ensuring that no untreated wastewater is discharged into the open environment.

8. Universal Health Coverage

• Q #4
• Vivad Se Vishwas’ scheme is aimed at reducing litigations in:
  • direct taxes
  • indirect taxes
  • Both 1 & 2
  • Neither 1 nor 2

9. Education

10. Skills, Employment & HRD

• Q #5
• Vivad Se Vishwas’ scheme is aimed at reducing litigations in:
  • direct taxes
  • indirect taxes
  • Both 1 & 2
  • Neither 1 nor 2

11. Agriculture

12. Environment & Forest

Q #6

• Vivad Se Vishwas’ scheme is aimed at reducing litigations in:
  • direct taxes
  • indirect taxes
  • Both 1 & 2
  • Neither 1 nor 2

13. Gender Budgeting & Elderly

14. NE Development

• Q #7
• Vivad Se Vishwas’ scheme is aimed at reducing litigations in:
  • direct taxes
  • indirect taxes
  • Both 1 & 2
  • Neither 1 nor 2

 
 

 

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