Why in the news-

• The NITI Aayog launched the ‘Vocal for Local’ initiative under its Aspirational Blocks Programme (ABP).

About Vocal for Local Initiative

• Under this program, indigenous local products from 500 Aspirational Blocks have been mapped and consolidated for sale.
• District collectors and block-level officials will collaborate with partners such as Government e-Marketplace (GeM) and Open Network for Digital Commerce (ONDC) to facilitate sustainable growth of microenterprises in Aspirational Blocks.
• To facilitate this, a dedicated window for Aspirational Blocks Programme under the brand name ‘Aakanksha’ on GeM portal has been established.

What is Aspirational Blocks Programme (ABP)?

• The ABP is set on the lines of the Aspirational District Programme that was launched in 2018 and covers 112 districts across the country.
• The Centre had announced its intention to launch this initiative in the Union Budget 2022-23.
• The programme will cover 500 districts across 31 states and Union Territories initially.
• Over half of these blocks are in 6 states—Uttar Pradesh (68 blocks), Bihar (61), Madhya Pradesh (42), Jharkhand (34), Odisha (29) and West Bengal (29).
• However, states can add more blocks to the programme later.

Back2Basics:  Aspirational Districts Programme (ADP)

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In the news

• The Union Cabinet approved the proposal for Uttar Poorva Transformative Industrialization (UNNATI) Scheme, 2024.

What is the UNNATI Scheme?

• The UNNATI is a significant initiative aimed at fostering industrial development and generating employment opportunities in the North East Region of India.
• With a focus on promoting manufacturing and services sectors, the scheme aims to stimulate economic growth and uplift the socio-economic landscape of the region.

Objectives

• Employment Generation: UNNATI aims to create productive economic activities that generate gainful employment opportunities, thereby contributing to the overall socio-economic development of the North East Region.
• Industrial Development: The scheme seeks to encourage the establishment of industries and the expansion of existing ones, fostering growth and development across various sectors.

Expenditure Allocation

• UNNATI will operate as a Central Sector Scheme, with funds allocated for both incentives to eligible units (Part A) and implementation and institutional arrangements (Part B).
• Part A of the scheme will receive Rs. 9,737 crores, while Rs. 300 crores will be allocated for Part B.

Salient Features

• Scheme Period: Effective from the date of Notification until March 31, 2034, along with 8 years of committed liabilities.
• Commencement of Production: Eligible industrial units must commence production or operation within 4 years from the grant of registration.
• Categorization of Districts: Districts are categorized into Zone A (Industrially Advanced Districts) and Zone B (Industrially Backward Districts) to ensure targeted development.
• Funds Allocation: 60% of Part A outlay is earmarked for the 8 North Eastern states, while the remaining 40% follows a First-In-First-Out (FIFO) basis.
• Eligibility: New and expanding industrial units are eligible for incentives under the scheme.

Implementation and Oversight

• The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, will oversee the implementation of UNNATI.
• National and state-level committees, including the Steering Committee and State Level Committee, will monitor implementation, ensure transparency, and facilitate the registration and claims process for incentives.

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In the news

• In pretext of the upcoming Lok Sabha elections, the Union Cabinet approved the extension of the subsidy under the Pradhan Mantri Ujjwala Yojana (PMUY) for LPG cylinders, offering a subsidy of ₹300 (earlier ₹200) per cylinder for up to 12 refills per year.

About Ujjwala Scheme

Try a similar PYQ from CSE Prelims 2018:

With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:

1. It is the flagship scheme of the Ministry of Labour and Employment.
2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.
3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.

Which of the statements given above is/are correct?

(a) 1 and 3 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

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In the news

• The Kerala government’s decision to introduce ‘Sabari K-Rice’ is seen as a response to the Union government’s distribution of ‘Bharat Rice.’

Sabari K-Rice

• Objective: It aims to provide good quality rice at affordable rates, presenting an alternative to the existing subsidized rice scheme.
• Distribution: K-Rice will be made available through Supplyco outlets, alongside the existing subsidized rice supply of 10 kg per card.
• Quality and Pricing: K-Rice offers high-quality varieties at subsidized rates, contrasting with Bharat Rice sold by NAFED and NCCF at different prices.
• Price Discrepancy: While Bharat Rice sells at ₹29 per kg, K-Rice aims to provide affordable rates, with the state government incurring additional costs to distribute it.

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Introduction

• In a significant move towards women’s safety and empowerment, the Union Minister for Women and Child Development recently announced the establishment of One Stop Centres (OSCs) in over 700 districts across the nation.

About One Stop Centre Scheme

• Central Sponsorship: The One Stop Centre scheme is a Centrally Sponsored Scheme developed under the aegis of the Union Ministry of Women and Child Development (MWCD).
• Inception: The scheme has been in operation since April 1, 2015, with a primary focus on addressing Gender-Based Violence.
• Universal Reach: The One Stop Centre Scheme is committed to aiding all women, including girls below 18 years, who have suffered violence. Regardless of caste, class, religion, region, sexual orientation, or marital status, all women are eligible for support.
• Protection for Minors: For girls below 18 years of age, the scheme collaborates with institutions and authorities established under the Juvenile Justice (Care and Protection of Children) Act, 2000, and the Protection of Children from Sexual Offenses Act, 2012.

Objectives of the One Stop Centre Scheme

• Holistic Support: The core objective is to provide comprehensive and integrated support to women who have endured violence, whether in private or public spaces. All assistance is conveniently accessible under one roof.
• Immediate Access: These centres ensure immediate access to a wide array of services encompassing medical, legal, psychological, and counseling support. This collective approach stands resolute against all forms of violence targeting women.

Funding and Administration

• Financial Backing: The Scheme receives its funding through the Nirbhaya Fund, with the Central Government providing 100% financial assistance.
• Local Administration: Day-to-day implementation and administrative responsibilities rest with the District Collector/District Magistrate.

Services Offered by OSCs

The One Stop Centres serve as a lifeline for women in need, offering an array of essential services:

• Emergency Response and Rescue Services
• Medical Assistance
• Assistance with lodging FIR/ NCR/DIR
• Psycho-social Support and Counseling
• Legal Aid and Counseling
• Shelter
• Video Conferencing Facility

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Introduction

• Revival of NYAY: A mainstream political party has revived its 2019 manifesto center-piece, the NYAY scheme (Nyuntam Aay Yojana or Minimum Income Scheme), ahead of the 2024 general election.
• Promised Benefits: The party announced that if elected, the party would implement NYAY, providing women with an annual income of Rs 60,000-70,000.

Background of NYAY and PM-KISAN

• NYAY’s 2019 Proposal: Its 2019 manifesto promised NYAY to the poorest 20% of Indian families, guaranteeing Rs 72,000 annually to each eligible family.
• Comparison with PM-KISAN: Around the same time, the incumbent government launched PM-KISAN, providing Rs 6,000 per year to farmer families, showcasing the appeal of direct benefit transfers (DBTs).

Understanding Universal Basic Income (UBI) vs. Targeted Schemes

• UBI Definition: UBI involves providing a basic income to every citizen, from the wealthiest to the poorest, with the simultaneous removal of all subsidies.
• Differences with NYAY/PM-KISAN: These schemes are not UBI as they don’t remove existing subsidies, offer a smaller amount than a basic income, and are targeted rather than universal.

Challenges and Questions Surrounding UBI and DBTs

• Affordability: No country has been able to afford UBI due to its high costs and the population size, especially in countries like India.
• Political Backlash: Removing existing subsidies to fund UBI could lead to significant political backlash.
• Effectiveness of DBTs: Despite criticisms of being mere doles or freebies, DBTs have been seen as effective in alleviating economic distress in various situations.

Rationale behind Direct Benefit Transfers

• Economic Arguments: Direct cash transfers can stimulate local economies and create a virtuous cycle of development.
• Empowerment: Providing cash can empower individuals to make their own decisions and invest in their futures.

A Radical Policy Solution: Direct Cash Transfers

• Provocative Proposition: In their 2010 book, “Just give money to the poor: The Development Revolution from the Global South,” authors Joseph Hanlon, Armando Barrientos, and David Hulme advocate for unconditional cash transfers to the poor.
• Historical Shifts in Welfare Thinking: The book outlines four paradigm shifts in welfare policies:
  1. 16th-century England’s collective responsibility for subsistence.
  2. Increased social spending and introduction of pensions in late-19th-century Europe.
  3. Mid-20th-century recognition of an adequate standard of living as a human right.
  4. Early 21st-century trend in the Global South of using cash transfers to combat poverty and promote development.

Case for Unconditional Cash Transfers

• Argument for Simplicity and Effectiveness: The authors argue that providing money directly to the poor, without conditions, is a promising approach for reducing poverty and fostering long-term development.
• Global Examples: They cite successful examples from Mexico, South Africa, Namibia, Brazil, Indonesia, and India (NREGA), where governments have implemented such policies.

Implementation Challenges and Principles

• Effective Implementation: Successful DBT programs require fairness, assurance, practicality, sufficient payment size, and political acceptability.
• International Examples: Developed countries have implemented various forms of cash transfers, indicating the potential benefits of such policies.

Public Perception and Political Strategy

• Rejection of Higher Cash Transfers: The public’s rejection of 2019 NYAY offer suggests that implementation and trust are as crucial as the policy itself.
• Political Discourse: The debate over DBTs often gets mired in political rhetoric, overshadowing the policy’s potential benefits and challenges.

Conclusion

• Balancing Act: India must balance the immediate relief provided by DBTs with long-term strategies for poverty alleviation and economic empowerment.
• Learning from the Past: The revival of NYAY and the ongoing debate on DBTs provide an opportunity to learn from past experiences and design more effective and inclusive policies.
• Future of Welfare Policies: As India approaches the 2024 general election, the discourse on NYAY, PM-KISAN, and similar schemes will play a crucial role in shaping the country’s welfare policies.

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Central Idea

• The Minister of State for Social Justice and Empowerment recently informed about the Pradhan Mantri Anusuchit Jaati Abhyuday Yojana (PM-AJAY) Scheme during 2023 year-end review.

About PM-AJAY Scheme

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Central Idea

• The Union Women and Child Development Ministry aims to establish 17,000 creches in Anganwadi centres across the country out of which 5,222 have been approved to date under the ‘Palna’ scheme.

What is Palna Scheme?

About National Crèche Scheme (NCS)

Try this PYQ from CSP 2019:

Which of the following statements is/are correct regarding the Maternity Benefit (Amendment) Act, 2017?

1. Pregnant women are entitled for three months pre-delivery and three months post-delivery paid leave.
2. Enterprises with creches must allow the mother minimum six creche visits daily.
3. Women with more than two children get reduced entitlements.

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 2 only

(c) 3 only

(d) 1, 2 and 3

Post your answers here.

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Central Idea

• The Department of Food and Public Distribution has proposed a plan to source rice from the Food Corporation of India (FCI) under the Open Market Sale Scheme (OMSS) for consumer sales.
• The FCI is providing quality rice under OMSS at a reserve price of ₹29 per kg.

About Open Market Sale Scheme (OMSS)

Impact on Rice Inflation

• Current Inflation Rate: The annual inflation rate of rice has been around 12% for the past two years, accumulating over time and raising concerns.
• Objective: The department aims to reduce this inflation rate and make rice more affordable for consumers.

Significances of OMSS

• Enhance the supply of food grains: The OMSS helps to enhance the supply of food grains, especially wheat, during the lean season and moderates the open market prices, especially in deficit regions.
• Prevent wastage and deterioration of food grains: The OMSS also helps to prevent wastage and deterioration of food grains in FCI godowns due to a lack of storage space and proper maintenance.
• Provides an alternative source of food grains: The OMSS provides an alternative source of food grains for bulk consumers, state governments, UTs and private parties who participate in various schemes and programmes such as ethanol production under biofuel policy.
• Generates revenue for the FCI: The OMSS generates revenue for the FCI and reduces its subsidy burden on the central government. The FCI sells food grains under OMSS at pre-determined prices which are higher than the minimum support prices (MSPs) paid to farmers for procurement.

Challenges faced by OMSS

• Low demand from the buyers: The OMSS faces low demand from buyers due to high reserve prices fixed by the FCI, which are often above the market prices.
• Logistical challenges: The OMSS also faces logistical challenges such as transportation, handling and quality issues of food grains, which affect the timely delivery and customer satisfaction. 
• Limited impact on stabilizing the market prices: The OMSS has a limited impact on stabilizing the market prices as it accounts for a small share of the total food grain supply and demand in the country. 
• Does not address the structural problems: The OMSS does not address the structural problems of food grain management such as procurement, distribution and buffer stocking policies, which need to be reformed to ensure food security and fiscal prudence. 

Way forward

• Revise the reserve prices of food grains: The FCI should revise the reserve prices of food grains under OMSS based on the prevailing market conditions and demand-supply situation to attract more buyers and clear the excess stocks.
• Improve logistics and quality management: The FCI should improve its logistics and quality management system to ensure timely delivery and good quality of food grains under OMSS. 
• Diversify product portfolio: The FCI should diversify its product portfolio under OMSS to include coarse grains, pulses and oilseeds, which are also essential for nutrition security and have a higher demand in the market.
• Coordinate with state governments: The FCI should coordinate with state governments, UTs and other stakeholders to ensure effective implementation and monitoring of OMSS and address any grievances or complaints arising from it. 

Back2basics

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