Best of BS Opinion: An informed NITI, plugging the infra gaps, and more

Here is awesome of Business Standard's perspective pieces for Tuesday

As Rajiv Kumar chose to venture down last week, business analyst Suman Bery was delegated the new bad habit administrator of the NITI Aayog. A top-down reorganization is generally a decent chance for a foundation to audit its situation and make fundamental acclimations to turn out to be more important.

In this specific circumstance, our lead article noticed that, comprehensively, the NITI Aayog needs to assemble greater ability to have the option to assist the public authority with making the right strategy intercessions. READ HERE

There's business in farming: How companies gain from agri sector reforms

 

Late enactment carry the unregulated economy to agribusiness and permit privately owned businesses to bring efficiency, work and new innovation to the area. The private area would now be able to put resources into current farming exchanging stages or set up post-collect offices like distribution centers and cold stockpiles. The changes unshackle ranchers from limitations on when, where, and to whom to sell. They put make rivalry and make ready for lower charges and better offices for ranchers. An uncommon on where organizations can discover venture openings in farming.

The ongoing homestead bills are seen as generally critical for the advancement of the farming area. They brief a move away from the imposing business model of mandis controlled by Agricultural Produce Market Committees (APMCs) to a more changed system. Be that as it may, the long-past due changes have gotten a subject of talk however conspicuous financial analysts and top agribusiness innovation organizations have grasped them. The idea of an unrestricted economy in horticulture will make ready for corporate area and make it more productive. The development of private venture is required to redo the area by driving profitability, embracing new innovation, producing business, expanding the worth acknowledgment, and in conclusion coordinating gracefully chain "from homestead to fork". We recognized three essential zones where the venture by corporate area could change the course of horticulture.

Initially, there is a need to improve the current immature advertising framework for better access. It is generally accepted that directed discount mandis oversaw by APMCs need framework and are lacking to oblige surplus creation. The Dalwai council report (2017) gauges that the nation requires 10,130 horticulture markets dependent on populace, creation, and geological territory. Presently, there are 6,676 business sectors in the nation and subsequently have a space for extra 3,568 business sectors. With the death of Farmers' Produce Trade and Commerce (Promotion and Facilitation) FPTC Bill, boundary deregulation outside the physical premises of APMC markets is allowed. The enactment makes an open door for the private area to intercede and put resources into isolated modernized exchanging stages. Electronic exchanging stages are additionally as vital as physical exchanging stages. The e-NAM made in 2015 by the administration expects to interface all APMC mandis for all intents and purposes. The goal was to encourage value disclosure through an electronic serious offering framework with between mandi and between state cooperation of merchants. Nonetheless, the genuine capability of e-NAM conspire has not been tapped at this point generally because of the presence of infrastructural holes like deficient admittance to nonstop power and web offices in country zones. The lawful mental soundness of FTPC bill has opened new channels for private area to put resources into building vigorous electronic stages by diminishing the escape clauses of the current framework. One such activity is as of late dispatched e-Kisan mandi of Pune. It will empower direct advertising of produce from rancher to customer at negligible or no cost and give brief installment. The bills make an intensity of decision and advance all the more such creative elective showcasing channels.

Switching to batteries won't reduce an iota of pollution, says TVS MD

Company News

India’s big three two-wheeler makers on Monday hit out at NITI Aayog’s plan to push for 100 per cent electric vehicle, saying such a transition is completely uncalled for and could jeopardise the industry.
Arguing that changing from conventional two-wheelers to 100 per cent electric is “not like Aadhaar, not a software and print cards”, the companies said concerns of all stakeholders must be taken into consideration instead of imposing adoption of EVs. “This is not like Aadhaar, not a software and print cards. You have to set up a whole supply chain, and migrate from the current supply chain,” TVS Motor Chairman and Managing Director Venu Srinivasan said. He said targeting “two- and three-wheelers but not cars makes it an incomplete initiative”.
Srinivasan asserted that “changing to batteries running on thermal power will not reduce one iota of pollution”. Right now, he said,”the two-wheeler contribute to 20 per cent of automotive pollution”. Hero MotoCorp said it was “deeply concerned by the potential repercussions of NITI Aayog’s approach of completely banning two-wheelers up to 150cc that are powered by Internal Combustion Engines”.
Last week, NITI Aayog had asked auto industry body Society of Indian Automobile Manufacturers (Siam) along with conventional two-and three-wheeler makers to suggest within two weeks, concrete steps towards transition to electric mobility keeping in mind the 2025 deadline.
Hero MotoCorp said the move by NITI Aayog is being at a time “when two-wheelers manufactured in India will have the world’s cleanest emissions, along with the world’s highest fuel-efficiencies, effective April 1, 2020”.

 “Instead of imposing the adoption of EVs (electric vehicles), it would be ideal to have a healthy mix of policy, market dynamics, and customer acceptability,” the country’s largest two-wheeler maker said.

National artificial intelligence unit stuck for lack of anchor department

Current Affairs

The government’s plan to set up a national artificial intelligence centre is stuck because it is unclear which department will spearhead the initiative.
The Ministry of Electronics and Information Technology (MeitY) said in January such a centre would be set up by July.
The then finance minister, Piyush Goyal, announced in February the centre would be developed as a hub along with centres of excellence, for which nine priority areas had been identified. However, he did not mention who would execute the larger plan.
Last month, it was reported that the NITI Aayog had circulated a Cabinet note, asking for Rs 7,500 crore for three years to set up an AI framework. Last year, four panels set up by MeitY evaluated the use of AI for citizens, such as setting up a data platform, skilling and reskilling, research and development, and examining the challenges involving legal, regulatory, ethical and cybersecurity aspects.
“Based on what the four committees gave us, we sent a proposal to implement a national programme at Rs 470-480 crore. For approval it went to expenditure (finance committee), which asked us about the difference between NITI Aayog and our estimate. We have requested them to resolve this,” said a senior official at MeitY.
The NITI Aayog released a discussion paper in June last year on the “National Strategy for Artificial Intelligence”.

 MeitY’s reports have not been made public. A senior finance ministry official who was part of the Expenditure Finance Committee meetings related to the requests made by the NITI Aayog and MeitY on the AI centre said both the departments had been told to get clarity on the matter.

Modi govt's minimum income guarantee scheme was for landless farmers too

Economy & Policy:
The Narendra Modi government had intended the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) — its latest flagship scheme — as a minimum income guarantee programme for all farm sector workers, whether they hold land or not. The plan was scrapped as the Centre realised it will be difficult to identify landless farmers.

Officials involved with 2019-20 interim Budget told Business Standard that discussions on an income or price support scheme for an ailing agricultural sector started around August 2018. Initially, the discussion was held among central government departments, including the Prime Minister’s Office, finance ministry and Niti Aayog. Then, discussions widened to include agricultural experts, economists and other stakeholders.

The decision to scrap the plan for landless workers and focus only on small and marginal farmers was made as there was no proper method to find out who qualify as landless labourers, an official said.
“The discussions centred around whether it will be for all and if everyone will be included to make it a sector-specific minimum income guarantee programme, or will it be for small and marginal farmers,” the official said.


 As reported earlier, various models were discussed, including income support scheme and price support scheme. The official said a price support scheme, on the lines of Bhawantar of the Madhya Pradesh government, gained backers in the government. The Centre was even considering a “retrospective price support scheme”, wherein farmers would be paid the difference between the minimum support price and the market price for a produce, not only for the current season, but also for a few past seasons. This plan was also deemed unworkable.