Current Affair 1:

OVERVIEW OF AGRI CLINIC AND AGRI-BUSINESS CENTRES SCHEME (ACABC)

 

The Ministry of Agriculture and Farmers’ Welfare, Government of India in association with the National Bank for Agriculture and Rural Development (NABARD), implemented the scheme of “Agri-Clinics and Agri-Business Centres” (ACABC) on 9th April 2002. This centrally sponsored scheme was launched with the vision of taking better farming methods to each farmer across the country.

This unique program aims to expertise the available pool of eligible unemployed agricultural graduates with two-month of training, followed by a bank loan and a back-ended composite subsidy to assist them in setting up their own Agri Clinic or Agri-Business Centres and offer professional extension services to innumerable farmers.

Progress Of Agri-clinics and Agribusiness Centres Scheme (01-04-2002 to 18-11-2022)

The below table represents the number of beneficiaries benefitting from the scheme state-wise. The total number of candidates trained is 82,776, and the number of Agri ventures established is 36,265. Maharashtra ranked at the top in terms of trained candidates and number of ventures established with 21,823 and 11,209 respectively.

Uttar Pradesh was in the second position with 18,196 trained candidates and 8,763 ventures established.

Current Affair 2:

First-ever "surety bond" insurance product

 

Road, transport and highways minister Nitin Gadkari on 19th Dec 2022 launched the country's first-ever "surety bond" insurance product, a move that would reduce the dependence of infra developers of bank guarantee. Insurance Regulatory Development Authority of India (IRDAI) recently allowed issuance of 'surety bonds' by insurance companies and have issued guidelines for the same.

About bonds:

Surety bonds are a contract or a three-way agreement that are guarantees of payment, which insurers issue. The surety (insurance companies/banks) provides the financial guarantee to the obligee (government) that the principal (contractor) will fulfil their obligations as per the agreed terms.

Surety bonds will aid in developing an alternative to bank guarantees for the construction of infrastructure projects. However, these are different from bank guarantees as in this a considerable amount of the project funds of contractors does not get frozen.

Surety bonds will ensure the efficient use of working capital and reduce the requirement of collateral, which construction companies need to provide.

Insurers will work in tandem with financial institutions to share risk information. This will assist in releasing liquidity in the infrastructure space without compromising on risk aspects.

Surety Bond Insurance will act as a security arrangement for infrastructure projects and will insulate the contractor as well as the principal.

The Surety Bond Insurance is a risk transfer tool for the Principal and shields the Principal from the losses that may arise in case the contractor fails to perform their contractual obligation.

The product gives the principal a contract of guarantee that contractual terms and other business deals will be concluded in accordance with the mutually agreed terms.

In case the contractor doesn’t fulfil the contractual terms, the principal can raise a claim on the surety bond and recover the losses they have incurred.

Unlike a bank guarantee, the Surety Bond Insurance does not require large collateral from the contractor thus freeing up significant funds for the contractor, which they can utilize for the growth of the business.

The product will also help in reducing the contractors’ debts to a large extent thus addressing their financial worries. The product will facilitate the growth of upcoming infrastructure projects in the country.

Current Affair 3:

Connectivity between Andaman & Nicobar Islands (ANI) and Aceh Province

 

News:

The second edition of the Joint Task Force (JTF) meeting on development of connectivity between Andaman & Nicobar Islands (ANI) and Aceh Province, Indonesia took place in Port Blair on 19 December 2022.

It was envisaged that the shipping link would boost the economy of Andaman Islands with that of western Sumatra (Aceh province).

In less than a year of the announcement of the joint statement, the Aceh Chamber of Commerce dispatched an Indonesia merchant vessel with 150 tonnes of assorted cargo of “coffee, vegetables, spices, vegetable oils, furniture and construction materials (sand, rocks and cement)” for exhibition at Port Blair. Although these are low value products, the shipment was hugely symbolic and signalled the viability of such a shipping link.

The construction material is particularly important given that it is transported from mainland India (over 700 nautical miles from Kolkata and Chennai) to Port Blair which is not only expensive but takes a long time.

Also see,

Sabang port in Aceh is around 90 nautical miles from the Indian islands of Andaman and Nicobar. Important to note, Sabang sits at the entrance of the Strait of Malacca, which is considered to be a key global choke point.

Just see Map.

Current Affair 4:

Pradhan Mantri Formalization of Micro food processing Enterprises (PMFME) Scheme

 

Introduction of any scheme is very important:

This scheme is designed to address the challenges faced by the micro enterprises and to tap the potential of groups and cooperatives in supporting the upgradation and formalization of these enterprises.

About the scheme:

Ministry of Food Processing Industry (MoFPI) has launched the Pradhan Mantri Formalization of Micro food processing Enterprises (PMFME) scheme under the Aatmanirbhar Bharat Abhiyan with the aim to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector.

The scheme to be implemented over a period of five years from 2020-21 to 2024-25 with a total outlay of Rupees 10,000 crore. The expenditure under the scheme would to be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% by the Center for other UTs.

Objectives

The objectives of scheme are to build capability of microenterprises to enable:

• Increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups and Co-operatives;
• Integration with organized supply chain by strengthening branding & marketing;
• Support for transition of existing 2,00,000 enterprises into formal framework;
• Increased access to common services like common processing facility, laboratories, storage, packaging, marketing and incubation services;
• Strengthening of institutions, research and training in the food processing sector; and
• Increased access for the enterprises, to professional and technical support.

Coverage

Under the scheme, 2,00,000 micro food processing units will be directly assisted with credit linked subsidy. Adequate supportive common infrastructure and institutional architecture will be supported to accelerate growth of the sector.

The Scheme adopts One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. ODOP for the scheme will provide the framework for value chain development and alignment of support infrastructure.

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