RBI panel pitches for federal body like GST Council in farm sector

Agencies
September 14, 2019

Mumbai, Sept 14: An RBI panel on Friday suggested setting up of a federal body on the lines of the GST Council to implement reforms and boost credit flow in the agriculture sector, besides pitching for direct transfer of subsidy and no farm loan waivers.

Among other recommendations, the panel said banks should develop a management information system (MIS) to flag loans sanctioned against gold as collateral in core banking solution (CBS) platform for effective monitoring of end use of funds.

In February this year, the RBI had set up the 'Internal Working Group' to understand the reasons for regional disparity and other agricultural credit related aspects and suggest workable solutions to address constraints in accessing institutional agricultural credit.

Recommending solutions to improve farm credit flow, the panel said, "Government of India (GoI) should set up a federal institution, on the lines of GST Council, having participation from both the Centre as well as the states to suggest and implement reforms in the field of agriculture."

The Goods and Services Tax (GST) Council, that consists of the finance ministers of Centre and all the states, decides on tax rates.

The panel said farm loan waivers should be "avoided" and interest subvention or subsidy given on farm loans should be replaced with Direct Benefit Transfer (DBT), which is being implemented in host of government schemes like subsidy on LPG and fertiliser.

It also stressed that banks should increase credit for allied farm activities as well and give consumption loans to farmers up to a sanctioned limit of Rs 1 lakh.

The panel further said that the Centre should push state governments to complete the digitisation process and updation of land records in a time bound manner.

That apart, state governments should give access to banks to digitised land records in order to verify land title and create charge online. In such states, banks should not insist on submission of land title documents, it added.

The panel also said state governments having a highly restrictive legal framework should be encouraged to reform their legal framework on the basis of Model Land Leasing Act proposed by NITI Aayog/ Land Licensed Cultivators' Act, 2011 of Andhra Pradesh so that formal lending to tenant farmers can improve.

On farm loan waiver, the panel said it should be "avoided" and both the Centre and state governments should undertake a "holistic review" of the agricultural policies and their implementation, as well as evaluate the effectiveness of current subsidy policies.

Among other recommendations, the panel said the interest subvention scheme should be replaced with DBT to targeted beneficiaries with an overall limit of Rs 3 lakh per individual farmer.

To curb the misuse of interest subsidy, banks should provide crop loans, eligible for interest subvention, only through Kisan Credit Card (KCC) mode.

To address regional disparity in agri-credit flow, the panel said priority sector lending (PSL) guidelines should be revisited and the National Bank for Agriculture and Rural Development (NABARD) should gradually increase the allocation of Rural Infrastructure Development Fund (RIDF) in central, eastern and north eastern states over a period of time.

Also, the corpus of RIDF should be increased and state governments should be sensitised to allocate a larger portion of their borrowing from RIDF for the purpose of absorbing funds for rural infrastructure development in their state.

To increase credit flow to allied farm activities, the panel suggested that the Centre should set separate targets for working capital and term loan towards allied activities under ground-level credit flow (GLC).

The panel also suggested easier norms for making available credit for allied activities of up to Rs 2 lakh.

Besides, banks should be allowed to give consumption loans to farmers up to a sanctioned limit of Rs 1 lakh under PSL provided banks are able to obtain collateral security and are satisfied with their repayment capacity based on the cash flows of the borrowers. However, such loans will not classify for PSL-Agri.

Stating that there is no guarantee scheme available to banks to cover the default risk of the borrowers, the panel said that the Centre in partnership with state governments should set up a credit guarantee fund for the agriculture sector on the lines of credit guarantee schemes implemented in the MSME sector.

It also stressed on the need to develop a centralised database of the Indian agriculture sector which will help in planning policy formulation.

To improve ease of credit, the limit of Rs 3 lakh for waiving collateral security by the banks in case of tie-up arrangements should be revised to Rs 5 lakh under the existing KCC guidelines subject to the condition that the tie-up arrangements are between the producers and processing units without any intermediaries.

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News Network
May 15,2020

New Delhi, May 15: Microsoft founder Bill Gates on Friday thanked Prime Minister Narendra Modi for the interaction and stressed that combating the coronavirus pandemic requires global collaboration.

"Thank you for the conversation and partnership PM Narendra Modi. Combating the pandemic requires global collaboration. India's role is key as the world works to minimize social and economic impact, and pave the way to vaccine, testing, and treatment access for all," Bill Gates said.

Prime Minister Narendra Modi on Thursday interacted with philanthropist and Microsoft co-founder Bill Gates and discussed the global response to Covid-19 and the importance of global coordination on scientific innovation to combat the pandemic.

The Prime Minister underlined the conscious approach that India has adopted in its fight against the health crisis - an approach based on ensuring public engagement through appropriate messaging, a PMO release said.

He explained how this people-centric bottom-up approach has helped win acceptability for physical distancing, respect for frontline workers, wearing of masks, maintaining proper hygiene, and respecting lockdown provisions.

They agreed that given India's willingness and capacity to contribute to global efforts, particularly for benefit of fellow developing countries, it was important for India to be included in the ongoing global discussions for coordinating responses to the pandemic.

The Prime Minister also suggested that the Gates Foundation could take the lead in analyzing the necessary changes in lifestyles, economic organisation, social behaviour, modes of disseminating education and healthcare, that would emerge in the post-Covid world, and the associated technological challenges that would need to be addressed.

He said that India would be happy to contribute to such an analytical exercise based on its own experiences.

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News Network
May 1,2020

Jeddah, May 1: The government of India and its diplomatic missions in the Gulf Cooperation Council (GCC) States have begun elaborate preparations for the massive evacuation of their nationals stranded or needing to return once the lockdown travel restrictions are lifted.

The Indian missions in Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Bahrain, Oman and Qatar have started registration for the return of their nationals. The move coincides with the directive of New Delhi to the Indian Air Force and Navy to get their big engines ready to bring back citizens stuck in the GCC states.

India’s External Affairs Minister S. Jaishankar has stated that the Indian missions in the GCC states have been liaising with local authorities for repatriation of Indians. More than eight millions Indians work and live in the Gulf countries.

The Indian Embassy in Saudi Arabia said that it has issued directives to their nationals who seek repatriation to India to fill an application form so as to facilitate their travel when the authorities lift the travel restrictions. Similar advisories have also been issued by the embassies in other Gulf States.

The Riyadh Embassy said in a press statement that the purpose is only to collect data and no decision has been taken yet regarding resumption of flights to India.

The Embassy will make an announcement with regard to repatriation of Indian nationals when the government of India takes a decision in this regard, the statement said, adding that separate forms have to be filled for each individual, including Indian worker or his or her family members.

The Embassy is in the process of working out the modalities of evacuation of stranded Indians in line with the directions of the government of India, the statement pointed out.

The Embassy and the Consulate General in Jeddah are closely monitoring the situation and are taking all the required measures to ensure the welfare of Indian citizens.

The missions have taken all the necessary measures for the supply of food, medicines and other emergency assistance to Indians in need and that is in coordination and cooperation with volunteers of major community organizations across the Kingdom.

These initiatives have been accelerated following the interactions of Ambassador Dr. Ausaf Sayeed with community volunteers and social workers from all parts of the Kingdom. The Embassy has also been in touch with all major companies in the Kingdom that employed Indian workers to carry out regular monitoring of the workers’ health, especially in labor camps, and take all other precautionary and preventive measures to ensure their health and safety.

According to the plan drawn up by the government of India, the first commercial flights from the Gulf could start after May 3, if the nationwide lockdown restrictions are not extended.

INS Jalashwa, an amphibious assault ship, and two Magar class tank-landing ships are being readied for the evacuation purposes, India’s IANS reported.

These ships, which have a total capacity of 2,000 people, have started making arrangements as per the standard protocols laid out to deal with suspected coronavirus cases like social distancing and sanitization.

The Indian Air Force has been evacuating citizens from coronavirus hit countries such as China, Japan, Iran, Italy and Kuwait since January. The force has stated that it has kept C-17 Globemaster and C-130s on standby which can be used whenever they are required.

Apart from them, Air India flights are also being kept on standby to pick up stranded Indians from the GCC countries.

15 Indian fatalities in western region

Speaking to Saudi Gazette, Indian Consul General Mohammed Noor Rahman Sheikh said that as of Thursday a total of 15 Indian coronavirus fatalities were reported in the western region.

These included seven cases in Makkah, six in Madinah and two in Jeddah. Around 140 Indians have tested positive in the region where most of the coronavirus cases in the Kingdom have been reported.

He said that permission was not accorded from the Ministry of Haj and Umrah to use the Indian Haj mission facility in Makkah as the center to assist the community members with regard to the coronavirus related cases.

“Our medical in charge is in Makkah and with the support of some other staffers, he has been actively involved in lending a helping hand to those Indian nationals who are in distress,” he said.

“We are in regular contact with the Ministry of Health officials in ensuring quick medical assistance to those who are tested positive.” He said preparations are under way for repatriation of Indians once permission is ready to take them home. “We are maintaining a database of all those who contacted the consulate with a request for their repatriation,” he added.

Meanwhile, the bodies of two Indians from the southern state of Kerala who succumbed to the pandemic were buried in Makkah. Naletil Muhammad from Ancharakkandi of Kannoor district, a restaurant worker in Makkah, gave samples at King Faisal Hospital a few days ago after developing symptoms of the disease.

When the hospital authorities advised him to remain in medical isolation, he reportedly preferred to remain in isolation at his residence where he succumbed to the pandemic after a few days.

Muhammad’s two sons, who are working in Riyadh, alerted his colleagues when they failed to contact him over phone. They found him dead at his residence on Monday. Eventually, Ministry of Health officials sent all his six colleagues to medical isolation.

Kottuwala Ippu Musliyar from Thennala, Vengara in Malappuram district, was a well-known social worker in Makkah. He died of coronavirus at Hira Hospital on Wednesday after undergoing treatment for a couple of days.

Mujeeb Pukkottoor, a prominent Indian social worker and general secretary of Makkah chapter of Kerala Muslim Cultural Center, was authorized by their spouses to carry out their burial procedures.

Accordingly Muhammad was buried on Wednesday and Ippu Musliyar on Thursday at the designated area for the coronavirus deceased persons at Sharaie Cemetery in Makkah.

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News Network
April 20,2020

Thiruvananthapuram, Apr 20: The Kerala health department has declared 88 local bodies including the corporation, municipality and panchayats, spread over 14 districts in the state as COVID-19 hotspots.

"The lockdown restrictions in these areas will be continued in the hotspots announced by the state health department," said state DGP Lokanath Behera in a statement.

"Hot spots are being announced based on COVID-19 positive cases, primary contacts and secondary contacts. As the outbreak of the disease increases, hot spots will be revised daily," said State Health Minister KK Shailaja.

However, the Minister said that a particular region will be excluded from the hot spot after a weekly data analysis.

District wise hot spots in the state - Thiruvananthapuram (3) including Thiruvananthapuram Corporation, Kollam (5), Alappuzha (3), Pathanamthitta (7), Kottayam District (1), Idukki (6), Ernakulam (2), Thrissur (3), Palakkad (4), Malappuram (13), Kozhikode (6), Wayanad (2), Kannur (19) and Kasaragod (14).

In Kerala, 400 people have detected positive for coronavirus, including 3 deaths, as per the Union Health Minister.

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