NITI Aayog gives scooter, bike makers 2 weeks to draw up EV plan: Report

India’s central think-tank has asked scooter and motorbike manufacturers to draw up a plan to switch to electric vehicles, days after they publicly opposed the government’s proposals saying they would disrupt the sector, two sources told Reuters.
NITI Aayog officials met with executives from companies including Bajaj Auto, Hero MotoCorp and TVS late on Friday, giving them two weeks to come up with the plan, according to one of the executives.

The think-tank, which is chaired by Prime Minister Narendra Modi and plays a key role in policymaking, had recommended that only electric models of scooters and motorbikes with engine capacity of more than 150cc must be sold from 2025, sources have told Reuters.
Automakers opposed the proposal and warned that a sudden transition, at a time when auto sales have slumped to a two-decade low, would cause market disruption and job losses.
India is one of the world’s largest two wheeler markets with sales of more than 20 million scooters and motorbikes last year.
During Friday’s meeting government officials argued that switching to EVs is of national importance so India does not miss out on the global drive towards environmentally cleaner vehicles, one of sources said. But industry executives responded that a premature switch with no established supply chain, charging infrastructure or skilled labour in India, could result in India losing its leadership position in scooters and motorbikes, the second source said.
“There were clearly drawn out positions,” said the source, adding there were “strong opinions” at the meeting.

NITI Aayog to draw up list of CPSEs' non-core assets for monetisation

Niti Aayog has been tasked with drawing up a list of non-core assets of various CPSEs, both healthy and sick ones, as the first step towards finance ministry's plan to monetise such assets and unlock value to shareholders.
This is part of the overall plans of the government to lay down procedure and mechanism for monetisation of non-core assets of central public sector undertakings (CPSEs), which include mainly land and building.

"Niti Aayog will draw up the list of non-core assets owned by CPSEs which can be sold separately after discussion with a consultative group comprising officials from administrative ministries, Department of Economic Affairs, Department of Investment and Public Asset Management (DIPAM)," an official told PTI.
The process would take about six months' time, the official added.
The report of Niti Aayog will be taken up by the alternative mechanism on disinvestment, headed by Finance Minister Arun Jaitley, following which the CPSE and the respective administrative ministry will further proceed with the monetisation process, the official added.
"So far the disinvestment process was confined to a corporate level. Now, it will go one step down and monetise non-core assets of CPSEs to unlock wealth and generate value on equity for shareholders," the official added.
It is pertinent to mention here that in 2016 Niti Aayog was also asked to draw up a list of CPSEs which could go in for a strategic sale. It has already identified about 35 CPSEs which could go in for outright sale.
The Union Cabinet had last week approved laying down of an institutional framework for monetisation of identified non-core assets of the CPSEs under strategic disinvestment and assets relating to immovable enemy property under the custody of Custodian of Enemy Property for India (CEPI).
Explaining the process, the official said the Cabinet approval for asset management framework would be applicable in four cases -- the sale of non-core assets of CPSEs identified for strategic disinvestment, sale of immovable enemy property land which are not under litigation. Enemy property refers to the assets which were left behind by people who migrated to Pakistan or China and are no longer citizens of India.
It includes the sale of non-core assets of any other CPSE after approval of competent authority or the administrative ministry and sale of such assets of sick or loss-making CPSE.
With regard to those CPSEs which are candidates for strategic disinvestment, the official said such companies would have to first list out the non-core assets which are to be hived off separately before the strategic disinvestment process starts.
"The enlistment of the land assets would have to happen first before the strategic disinvestment process starts. Once the non-core assets are carved out, the sale of such assets and strategic disinvestment process can go on simultaneously," the official said.
DIPAM, after consulting ministries and CPSEs, has already identified a huge tract of land and other assets of nine state-owned companies which will be hived off before they are put on the block for strategic sale.
The nine CPSEs whose non-core assets have been identified for hiving off are Pawan Hans, Scooters India, Air India, Bharat Pumps & Compressors, Project & Development India Ltd (PDIL), Hindustan Prefab, Hindustan Newsprint, Bridge and Roof Co and Hindustan Fluorocarbons.
In the current financial year, the government has set a disinvestment target of Rs 80,000 crore, which includes strategic and minority stake sale in CPSEs.
The government already had already given in-principle approval for the strategic sale of 24 state-owned companies.
These include Dredging Corporation of India, HLL Lifecare, Bharat Earth Movers Ltd, Units/JVs of ITDC, Bhadrawati, Salem and Durgapur units of SAIL, Nagarnar Steel Plant of NMDC, Central Electronics and Ferro Scrap Nigam.
The independent external monitor set up for strategic disinvestment shall oversee the process of asset monetisation.
The approved framework shall be reviewed after two years for instituting any change including delegations on financial limits.
So far this fiscal, the government has raised over Rs 56,064 crore by divesting stakes in state-owned companies.

NITI unveils 'New India' strategy paper to achieve $5-trn economy by 2030

NITI Aayog on Wednesday unveiled its much awaited 'Strategy for New India @ 75' document with an aim to accelerate growth to 8-9 per cent and make the country a $5-trillion economy by 2030.
Laying down a multi-pronged strategy to promote the country's overall development, the document said the annual growth rate of 9 per cent by 2022-23 would be essential for generating sufficient growth and achieving prosperity for all.
Independent India will turn 75 on August 15, 2022.
Unveiling the much-awaited document, Finance Minister Arun Jaitley said, "Sound policy will always put economy on track in which it will get perpetually people out of poverty and give them better quality of life."
The development strategy includes doubling of farmers' income, boosting 'Make in India', upgrading the science, technology and innovation ecosystem, and promoting sunrise sectors like fintech and tourism.
"Steadily accelerate the gross domestic product (GDP) growth rate to achieve a target of about 8 per cent during 2018-23. This will raise the economy's size in real terms from $2.7 trillion in 2017-18 to nearly $4 trillion by 2022-23."
"Besides having rapid growth, which reaches 9-10 per cent by 2022-23, it is also necessary to ensure that growth is inclusive, sustained, clean and formalised," the document said.

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The Indian economy grew at 6.7 per cent in 2017-18.
It also called for increasing the investment rate as measured by gross fixed capital formation (GFCF) from present 29 per cent to 36 per cent of GDP by 2022.
Noting that the country is now within sight of completing its economic transition as well, the document said, "India will see per capita incomes rising from about $1,900 in 2017-18 to around $3,000 in 2022-23."
According to the document, in agriculture, emphasis must shift to converting farmers to 'agripreneurs' by further expanding e-National Agriculture Markets (e-NAMs) and replacing the Agricultural Produce Marketing Committee (APMC) Act with the Agricultural Produce and Livestock Marketing (APLM) Act.
"The creation of a unified national market, a freer export regime and abolition of the Essential Commodities Act are essential for boosting agricultural growth," it noted.
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The document also suggested that to ensure maximum employment creation, codification of labour laws must be completed and a massive effort must be made to upscale apprenticeships.
It also made a case for successfully implementing the Ayushman Bharat programme, including the establishment of 150,000 health and wellness centres across the country, and rolling out the Pradhan Mantri Jan Arogya Abhiyaan.
The document pitched for implementing the recommendations of the Second Administrative Reforms Commission as a prelude to appointing a successor for designing reforms in the changing context of emerging technologies and growing complexity of the economy.
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It also called for expanding the scope of Swachh Bharat Mission to cover initiatives for landfills, plastic waste and municipal waste and generating wealth from waste.
According to the document, a new autonomous body, viz, the Arbitration Council of India, may be set up to grade arbitral institutions and accredit arbitrators to make the arbitration process cost-effective and speedy, and to preempt the need for court intervention.
The Strategy for New India @ 75 document, prepared after extensive consultations with over 800 stakeholders from within the government, central and state, and district levels.
ALSO READ: Loan waivers little help to farmers, says Niti Aayog after Rahul statement
The Aayog had earlier planned to come out with three documents -- 3-year action agenda, seven-year medium-term strategy paper and 15-year vision document.
The forty-one chapters in the document have been disaggregated under four sections: Drivers, Infrastructure, Inclusion and Governance. 

Loan waivers little help to farmers, says Niti Aayog after Rahul statement

Waiving off farmers’ loans is a “palliative” and not a solution for India's agrarian distress, said the Niti Aayog on Wednesday, reacting after three newly elected Congress state governments announced such measures.
Congress president Rahul Gandhi has said his party will scrap loans of all farmers in the country if it wins the 2019 Lok Sabha elections. He has said he would not let Prime Minister Narendra Modi “sleep or rest” till he gave a reprieve to farmers.
Gandhi’s statements came made after the Congress chief ministers of Madhya Pradesh, Rajasthan and Chhattisgarh waived off farm loans immediately after taking charge last week.
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On Wednesday, Niti Aayog cautioned against such policies. "Farm loan waiver is not a solution to farm sector distress. It is not a solution but is palliative," said Niti Aayog vice chairman Rajiv Kumar at a press conference after the release of its 'Strategy for New India @ 75' document.
Agriculture policy expert Ramesh Chand, a Niti Aayog member, agreed with Kumar. "In poorer states, only 10-15 per cent of farmers are benefited from loan waiver as few number of farmers get institutional loans in such states. In many states, not even 25 per cent of farmers avail institutional credit," Chand said.
"Even a CAG report says that farm loan waivers do not help. Loan waivers is no solution to address distress in farm sector," said Chand, referring to the Comptroller and Auditor General of India.
Kumar and Chand said the Aayog will advise the agriculture ministry to link allocations to states to reform measures undertaken by them in the farm sector.

ALSO READ: Keep farm loan waivers out of poll promise: Ex-RBI Governor Raghuram Rajan
Replying to a query on GST, Kumar said the average rate will gravitate towards 15 per cent with increased resources and widening of the tax base.
To a question on job creation, the Niti Aayog vice chairman said, "On the employment front, I am not sure crisis is appropriate word to use." "We are concerned with the employment situation. In fact, I am one of those economists who has said our policy targets could well be in terms of employment maximisation and growth will come out of that," he added.
Kumar also noted that aspirational levels are much higher today among the youth than what it was earlier.
Noting that the government wants to look at regional inequality, Kumar said, "We are not following Washington Consensus." He also said after the release of 'Strategy for New India @ 75', the Aayog will now start working on the 15-year vision document.

New GDP back-series data hurts credibility: Ex-CEA Arvind Subramanian

Former chief economic advisor Arvind Subramanian said on Sunday the new gross domestic product back-series data, released late last month by the Central Statistics Office and NITI Aayog, raised a lot of questions and hurt the credibility of official data.
“As an economist I have to say it (the new series) has created a lot of questions. If you look at the other indicators during that period, you see a difference between what those indicators show and what the recent back-series shows. It demands an explanation,” Subramanian said.
Currently a visiting lecturer at Harvard University, Subramanian is in New Delhi for the launch of his new book.
“This is a very technical subject, and we should have more technical experts examining it. It becomes a matter not just of the credibility of this data but the data-generating capacity of the state. We have to convince ourselves and the world that we are a nation whose numbers are credible, and therefore we need to get as many experts as we can, and then have an expert technical view,” Subramanian said.
When the moderator pointed out that the NITI Aayog and CSO officials also call themselves experts, Subramanian said in jest: “That’s an excessive claim.”
ALSO READ: Arvind Subramanian calls for review of GDP back-series data to clear doubts
After the junking of the GDP numbers released by a panel of the National Statistical Commission, the Centre last month came out with official back-series data that shows economic growth was higher under Prime Minister Narendra Modi’s government than under the previous Congress-led United Progressive Alliance (UPA) regime.
According to this set of data, India’s GDP grew at an average of 6.7 per cent in nine years of the UPA regime, 2005-06 to 2013-14, in comparison to growth under the current National Democratic Alliance government, which stands at 7.3 per cent. GDP growth for all years prior to 2010-11 has been revised downwards.
Subramanian said India needed to brace for an economic slowdown because of a combination of local factors — like the electoral cycle preventing major reforms — and a general global downturn.

ALSO READ: RBI's supervision of private banks, NBFCs inadequate: Arvind Subramanian
“We have to brace ourselves for slowdown for some time. I say that for a combination of reasons. First of all, the financial system is under stress, conditions are very tight. The agriculture sector remains under stress. This is not conducive for rapid growth,” Subramanian said.
“Europe is slowing, Japan is slowing ... There are political calendars. It is easier to do things at some moments than at other moments. To expect huge reforms that will perk up the economy at this stage would be somewhat ambitious,” he added.
Discussing the goods and services tax (GST) at length, Subramanian pointed out that judging the yearly success of the GST, based on the targets set in the Budget, was unreasonable. “Frankly, the Budget has made unreasonable demands from the GST. It has asked for 16-17 per cent growth. What you should ask of the GST is, if the economy is growing at 11-2 per cent (nominally), are GST revenues showing 12-13 per cent growth or not?” “This year some of the rates were slashed quite a bit. You have to measure it relative to how the much economy is growing, and how much you tweaked GST items, and is the combination giving you enough growth or not,” he said.
ALSO READ: Time ripe for asset quality review of NBFCs, says Arvind Subramanian
The 2018-19 Budget has set a GST target of Rs7.44 trillion, including the central GST, the Centre’s share of the integrated GST, and the compensation due to the states. This compares to the revised estimate of Rs4.44 trillion for 2017-18.
The GST came into effect on July 1, 2017.
Subramanian said Prime Minister Narendra Modi’s stated commitment of doubling farmers’ incomes could not be achieved by the existing process of fertiliser subsidies and setting minimum support prices. He said such a commitment required a new process of direct benefit transfers, perhaps something like the Rythu Bandhu scheme in Telangana, which provides Rs4,000 per acre per season to farmers.
Subramanian connected one of his pet subjects, universal basic income, with the political realities of the day. He acknowledged that unless the Centre and states agreed to share the financial burden, a proper universal basic income scheme could not be implemented, but said he believed that all parties would promise some form of it in the run-up to the general elections in 2019.

Charge of jobless growth on govt false; 7 mn jobs created in FY18: NITI V-C

Terming the criticism of jobless growth during the NDA government as "spurious", NITI Aayog Vice-Chairman Rajiv Kumar has said that 7 million jobs were created in the financial year 2017-18 alone.
Kumar further said that growth in sales of transport vehicles, huge disbursement of Mudra loans and EPFO data show that enough opportunities for employment and self-employment were created during the past four years of the National Democratic Alliance (NDA) government.

Recently, former Prime Minister Manmohan Singh had said the BJP-led government's promise to generate 20 million jobs annually has turned out to be a "gimmick".
"With all due respect, former Prime Minister Manmohan Singh does not put forward the data (on employment generation), I think this is a spurious charge and I think the debate should be much more on further improving the quality of the jobs," Kumar told PTI.
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Noting that production of trucks, three-wheelers and auto rickshaws is rising significantly, Kumar said: "According to EPFO data, 7 million jobs were created in 2017-18".
The Narendra Modi-led NDA government came to power in May 2014.
He further said if unemployment is rising in the country then real wages in both rural and urban regions should decline, but it's not happening.
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"So, what is the basis for this (criticism of jobless growth during the NDA regime)? I think, the purpose is negative discourse for political aims and does not reflect economic reality," Kumar asserted.
Replying to a question on protests by farmers in some parts of the country, he said: "We have increased minimum support price (MSP) for farmers by huge amounts. Rural economy is in good shape, farmers' income is rising".
Asked when the Aayog will finalise the 'New India 2022' document, Kumar said, "It's ready and I am expecting it to be available in public domain in a very short time, it's finalised".
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The government think-tank has been working on the strategy document for a while. The document was sent to states for comments.
Commenting on the rift between the Reserve Bank of India (RBI) and the government, he said that the last board meeting has shown that the RBI's autonomy is intact completely.
"I am sure that everybody accepts that autonomy does not mean a lack or absence of consultation and those consultations will continue as they should continue," Kumar said.

'Discuss, dissect' GDP data: NITI Aayog V-C accepts Chidambaram's challenge

NITI Aayog Vice-Chairman Rajiv Kumar on Thursday accepted the challenge of former finance minister P Chidambaram for a debate on the revised GDP data which showed economic growth during the current NDA regime was better than that in the UPA rule.
"Hon. @PChidambaram_IN Ji,challenge accepted. Let's discuss & dissect back series data. I gave 3 hrs of detailed interview yesterday & it is somewhat disingenuous of you to say that I asked the media to not ask questions. Do give more coherent reasons for ur difficulty with new data," Kumar said in a tweet.

He was responding to Chidambaram who sought had a debate with Kumar over the new set of data.
"I wonder if NITI Aayog Vice Chairman Rajiv Kumar will agree to a debate the data than telling journalists that their questions are "undeserving of an answer," Chidambaram had tweeted.
Through more tweets, Kumar also stressed that NITI Aayog uses data extensively for making logical policy recommendations and the data is always based on assessment and quality check by eminent statisticians.
"Therefore, it was logical for @NITIAayog to provide the platform for its release. Pronab Sen would know that MOSPI & Yojana Bhavan worked closely together," he said.
Chidambaram had termed the revision of GDP data as a "hatchet job" by NITI Aayog and said it was time to windup the "utterly worthless body".
"Former Chief Statistician Pronab Sen is absolutely correct. NITI Aayog has nothing to do with tabulation of data," the former finance minister added.
Kumar, later, told PTI that at one point of time the Ministry of Statistics and Programme Implementation (MOSPI) was a department of the erstwhile Planning Commission.
He said NITI Aayog had provided platform to experts and statisticians to examine the GDP back-series) data.
"GDP back-series data is a technical thing, it has a huge macroeconomic impact, so we have done it in a more macroeconomic manner," the vice-chairman said and added he was deeply pained at people who politicised it for no reason at all.
On comments made by the former finance minister, Kumar said: "Chidambaram has done great disfavour to officers of CSO. CSO officials have done amzaningly technically detailed exercise".
In January 2015, the government moved to a new base year of 2011-12 from the earlier 2004-05 for national accounts. The base year of national accounts had been revised earlier in January 2010.
The CSO Wednesday released back-series data with 2011-12 as base year.
The new numbers show India's economic growth rate averaged 6.7 per cent during the Congress-led UPA regime as compared to 7.3 per cent under the present government. Previous numbers had put the average growth rate during the 10-year UPA rule at 7.75 per cent.

India can save about Rs 1.2 tn worth of forex by switching to e-2 wheelers

India can save about Rs 1.2 trillion of forex outgo towards oil imports every year by adopting a policy regime to promote electric two-wheelers, a report by Niti Aayog has said.
India has a lot to gain by converting its internal combustion engine (ICE) vehicles to EVs at the earliest, the report titled 'Zero Emission Vehicles (ZEVs): Towards A Policy Framework' suggested.

The report was presented to Prime Minister Narendra Modi at the Global Mobility Summit 'MOVE'.
India has over 170 million two-wheelers, the report said, adding that if each of these vehicles consumes about half a litre of petrol per day, the total amount of petrol used by such vehicles works out to be about 34 billion litres.
"At Rs 70 per litre, this would cost about Rs 2.4 trillion. Even if we assume that 50 per cent of this is the cost of imported crude (as tax and other may be 50%), one may save Rs 1.2 trillion worth of imported oil," the report said.
It further said that there is a real possibility of getting this done in the next five to seven years.
"This would, however, require innovations, a policy regime that encourages access to latest technologies and a concerted effort by the Indian industry to achieve global competition through acquiring the necessary scale and using cutting edge technology," it noted.

Govt plans to open up to 100 islands for eco-tourism in the next 12 months

The government is willing to give key approvals upfront for investors who wish to invest in developing new islands in the Andaman and Nicobar and Lakshadweep Islands to reduce their risks, NITI Aayog Chief Executive Officer Amitabh Kant said on Friday.
Addressing the first investors’ conference on re-developing new islands, Kant said foreign tourists in India would not need separate permission to visit these islands. This is in accordance with the government’s plan, which would help in increasing their inflow, he said.
Potential investors, mostly from the hotel and tourism sectors, attended the conference. They wanted to explore the possibility of building tourist resorts, along with recreational and adventure sports facilities, in four islands in Andaman and Nicobar and three in Lakshadweep in the first phase.
In Andaman and Nicobar, bids have been invited for developing beach resorts and tree-houses in Long Island, Aves Island, Smith Island and Neil Island, while in Lakshadweep beach resorts are to be developed in Minicoy, Suheli and Kadmat in the first phase.
Officials said around 600 rooms would be constructed in these islands in phases.
Kant said the government was looking to offer 100 islands in Andaman & Nicobar and Lakshadweep for developing eco-tourism on a public private partnership (PPP) basis.

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Private players, apart from organising banquets and conferences in the resorts, could use the islands to develop other tourism sources such as scuba-diving, snorkeling, kayaking, and game fishing. Private players, along with resorts, will also have to arrange for water desalination plants, solar power generation facilities, and the infrastructure for beach operations and floating jetty.
“We are opening up 10 islands, and in the next 12 months we should be opening up close to 100 islands,” Kant said.
Kant said the government's objective was to ensure a sustainable and eco-friendly development of island projects.
"We will keep in mind the carrying capacity of these pristine islands to ensure they are never under burden," he noted.
To attract investors, the government is building a ro-ro facility for greater connectivity in the Andaman Islands. The Island Development Agency (IDA) an apex body under the chairmanship of the home minister, was constituted in June last year, while the NITI Aayog, along with the respective UT administration/state governments, has been mandated to steer the holistic development of the islands programme. The government has done a detailed land survey and demarcation of project sites.
Officials said many private parties including big hotel chains in India and abroad had shown an interest in developing resorts.
The partners will be selected through a two-stage transparent international competitive bidding process.

10% GDP growth not possible without improving HDI: NITI Aayog CEO

Niti Aayog CEO Amitabh Kant has said the country needs to improve its human development index (HDI) to achieve a growth of around 10 per cent.
“We are growing at around 7.5 per cent and if our ambition is to grow at high rates like 10 per cent over a three-decade period, (then) it is not possible to do this if we don't improve the HDI for India,” Kant said at an event by child-rights organisation Plan India here on Friday.

Such growth, Kant said, was not possible if infant-mortality and maternal mortality rates were at very high rates and if one in three children was stunted.
In the 2016 UN Human Development Report, India had slipped one place to rank 131st among 188 countries in the HDI.
Stating that there were around 200 backward districts in India, Kant underlined that it was not possible for the government alone to transform. Therefore, non-governmental organisations (NGOs) play a very important role, he added.
Speaking at the event, veteran actor and social activist Shabana Azmi said since India is a multi-religious, multi-cultural and multi-lingual society, any effort for the country's development needs to be made by all stakeholders, like the government, NGOs and community workers.
But, above all, to actually impact change at the level where it is required, it cannot happen without the last-mile frontline workers, the actor added.

Amid political heat, Centre, states meet for NITI Governing Council

After economic growth recovered to a seven-quarter high of 7.7 per cent during January-March of 2017-18, Prime Minister Narendra Modi is now aspiring to take it to double digits with the cooperation of states but cautioned that it is a challenge to do so.
The prime minister said this in his opening remarks at the fourth meeting of the Governing Council of NITI Aayog in Rashtrapati Bhawan here, which started amid political heat over impasse between the Delhi government and the Lt Governor, terms of reference (ToR) for the 15th finance commission among other issues.
Modi said the Indian economy has grown at a healthy rate of 7.7 per cent in the fourth quarter of 2017-18.
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"The challenge now is to take this growth rate to double digits, for which many more important steps have to be taken," he said.
He said the Council has approached complex issues of governance as "Team India", in the spirit of cooperative, competitive federalism. He described the smooth rollout and implementation of GST as a prime example of this.
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Besides, the political logjam in Delhi, states are also likely to raise the controversial issue of terms of reference of the 15th finance commission, mainly the base year of the population census. ToRs say that the base year would be 2011, which states, particularly those from south India, want to change it to 1971, as has been the practice for the years.
The prime minister included issues of doubling of farmers income, development of aspirational districts, Ayushman Bharat, mission Indradhanush, nutrition mission and celebrations of the 150th birth anniversary of Mahatma Gandhi in the agenda for the Council meeting.
The prime minister said that 1,50,000 health and wellness centres are being constructed under Ayushman Bharat. He said about 100 million families will be provided health assurance worth Rs 5,00,000 every year.
The prime minister said that schemes such as Mudra Yojana, Jan Dhan Yojana and Stand Up India, are helping in greater financial inclusion. He emphasized the need for tackling economic imbalances on priority.
He said that all aspects and parameters of human development need to be addressed and improved upon in the 115 aspirational districts.

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Modi said the Gram Swaraj Abhiyan has emerged as a new model for implementation of schemes. He said that this has so far been extended to 45,000 villages in the aspirational districts.
He said that the target is universal coverage in seven important welfare schemes: Ujjwala, Saubhagya, Ujala, Jan Dhan, Jeevan Jyoti Yojana, Suraksha Bima Yojana, and Mission Indradhanush.
He said this target was recently accomplished in about 17,000 villages.
The Prime Minister said that India has no shortage of capabilities, capacities and resources. He said that in the current financial year, states are receiving over Rs 11 trillion from the Centre, which represents an increase of about Rs 6 trillion, from the last year of the previous government.

Days of 'what US does today, world does tomorrow' over now: NITI Aayog VC

NITI Aayog Vice-Chairman Rajiv Kumar favours the setting up of a bank investment company that would hold government shares in public-sector banks, an idea suggested by P J Nayak Committee. Rajiv Kumar, in an interview with Indivjal Dhasmana, says this is part of the solution but not a complete one to improve the functioning of public-sector undertakings (PSUs). Edited excerpts:
Now, there is a chorus of demands for privatisation of public sector banks (PSBs) in the aftermath of Punjab National Bank fraud. What advice will you give to the government on this issue?
This is not such a simple issue. First, there is a law that prevents the government from diluting its equity in the PSBs below 50 per cent. That law has to be amended and given the parliamentary arithmetic of the political parties, it is not as simple to do that. It is easier said than done. Former finance minister Yashwant Sinha considered it in the previous NDA (National Democratic Alliance) government. I don't see this happening, given its practicality and due to the fact that all stakeholders of PSBs are not up for it. I think, the solution to improve the functioning of these banks has to be found within the framework that we have got.
So, what is your idea of a solution? Is it the recommendation by P J Nayak committee to set up the Bank Investment Company (BIC)?
That is one part of the solution. BIC will at least mean that you have a body of domain experts who can supervise the PBSs on a day-to-day basis. I am in support of BIC. That will help make an arm's length distance between the government and operations of banks, improving the corporate governance. Secondly, what has come out in the PNB fraud is that there is not a complete grasp of digital banking. So, we should set up a group of well-known information technology (IT) experts who can do IT audit of banks. Ideally, each of these banks should be restructured around digital backbone. At the moment, digital framework is laid over the existing structure. Now, there are new banks such as one from Singapore, which is opening all digital branches. You need that kind of restructuring for PSBs to be in sync with the current technologies. IT audit would not require much time.
Was banning LoUs by RBI a right step to curb such frauds?
I can't really comment on Reserve Bank of India's (RBI) step. I grant them that expertise.
Who do you think is right in the blame-game between the RBI and the finance ministry over PNB fraud?
I don't wish to be dragged into this.
Experts say we are reverting to protectionism ourselves by increasing customs duties in the Budget, while posturing that we are anti-protectionists. Do you agree with this proposition?
I don't think that is true. After all, import duties were hiked on only a few commodities at a disaggregated level. We are very much abiding by free trade agreements that we have been signed. World Trade Organisation's (WTO) mini-ministerial showed India's commitment to rule-based world trading system. The Budget measure is intended to give a breathing space to those industries that have been facing an onslaught. The breathing space was given to enable them meet infrastructure, logistics, skill requirements so that they can face global competition and indigenous capacities are created. You have to give some breathing space to industries such as electronics, but you don't do the same for the auto industry. In the auto industry, local preferences being given in the past has enabled the players to export. Similar success can be achieved in electronics as well. We still are the liberal and open economy.
What about United States (US) President Donald Trump's reciprocal tax? Won't it lead to protectionism and trade war?
I don't think so. Days of "what America does today, the world does tomorrow" have gone. Days when America has overwhelming dominance in the world, markets and trade are no longer there. As I see it, Europe, China and Japan will not follow the suit of what Trump is doing. It's not that we are entering into a protectionist world.
This has been the old American habit. It settles issues bilaterally. They want to correct trade surplus in favour of China. China will have to relent a little bit.
What about India?
Our trade surplus with the US is hardly anything compared to what China has with that country. I don't think we will negotiate bilaterally. Though US is a large market for us, what will we relent on? I don't see India retaliating, buckling down or relenting. We have taken a stand that we are for multilateral trading order and not for such measures. I think we will stick to our stand.
But, this undermines WTO. Does it not?
US has done it in the past. Liberal world order is there. This is a blip. I don't think this has a lasting impact on the world.
Critics take on the government for not creating enough jobs. However, recent job data in a survey by the Labour Bureau show a jump in jobs in the manufacturing sector. What is the exact job situation in the country?
I have never believed in the charges of less jobs. I am a strong believer in the results that Ghosh and Ghosh have come out in their study by analysing EPFO data. However, I want to add that even that data doesn't include figures from new employers such as Ola, Uber and Amazon. These are not covered in any job data. Therefore, NITI Aayog is trying to put together a unit that will collect payroll data from new employers. Labour Bureau data that you people believed in the past when it showed a decline in jobs should be believed now as well as labour intensive and manufacturing sectors are showing a rise in jobs. There is a lot of upsides left in labour-intensive sectors because of which you would see growth in these sectors in coming months.
NITI Aayog is also involved in designing MSPs for farmers. What kind of design will it be — will it be Bhavantaran Yojna on the lines of Madhya Pradesh government's initiative or the Centre's existing model?
We had called a big meeting of all the states agriculture secretaries. We are in the process of designing the packages as soon as possible. There are three packages one of which is Bhavantaran, which has been tried. Another is market assurance scheme and then private participation along with price stabilisation scheme. All the three are being examined. We will present them as options to states because agriculture is primarily states' responsibility.
The Cabinet has cleared ModiCare. When do you think it will be rolled out across India? Will it be introduced in a phased manner? What will be the premium and the Centre-state funding pattern?
Please don't call it ModiCare and make it appear like a copy-paste of ObamaCare. It is certainly not that. The scheme is designed to cover over 400 million persons — the scale is quite staggering. Due to this, its premium levels will remain relatively lower at less than Rs 1,200 per family a year. It includes hospitalisation and will substantially cover a large number of protocols and treatments. Details of these are being worked out and will be rolled out by the proposed National Health Authority Agency. Costs of the premium will be shared on well established existing model for centrally sponsored schemes. This will be a historical shift as henceforth, the poor will not have to suffer the trauma that presently comes with a medical emergency.

Kerala tops NITI Aayog Health Index, UP worst performer among large states

Uttar Pradesh was among the top three states to show incremental improvement in health care and family welfare during 2014-15 and 2015-16.
The state was ranked last on the health index released by the NITI Aayog on Friday.
Kerala, Punjab and Tamil Nadu topped in overall performance, while Jharkhand, Jammu and Kashmir, and Uttar Pradesh showed the most incremental improvement.
The index ranked the states and Union Territories on the basis of 23 key health outcomes, health systems and service delivery indicators. The outcomes were sourced from Health Management Information Systems (HMIS), National Family Health Survey–4, and data from the health ministry.
The states were segregated into large and small, while Union Territories were given a separate category.
The World Bank, experts in public health and economics and state governments helped the NITI Aayog draft the index. The index, in turn, will help the Centre assess the impact and reach of various social sector programmes.
Kerala tops NITI Aayog Health Index, UP worst performer among large states According to an official statement, states starting at lower levels of development were at an advantage in notching up incremental progress over states with high scores.
And, it was a challenge for the latter to maintain their performance.
Kerala topped in terms of overall performance but had shown the least incremental change. With the state achieving low neo-natal and under-five mortality rates, it did not have much room for further improvement.
According to the index, one-third of the states had registered a decline in their performance in 2016, underlining the need for domain-specific and targeted inventions. For most states, the common challenges included vacancies in key staff, quality accreditation of public health facilities and institutionalisation of a human resources management information system.
Health Secretary Preeti Sudan said the government plans to link the index to all incentives and funds the states receive for health and family welfare.
World Bank Country Director (India) Junaid Ahmad said the bank might shift some of its funding based on the index in the future.
A second part of the report will be released in June, along with a ranking of 730 district hospitals in the country.