Agriculture: An Inclusive Model of Madhya Pradesh

India’s economy is about $3.5 trillion presently. The IMF predicts that by 2027, the country’s GDP will likely be worth $5.4 trillion if the present growth pattern holds. It makes sense that Prime Minister Narendra Modi has dubbed the 25 years leading up to India’s 100th anniversary of independence as Amrit Kaal. The agriculture model in Madhya Pradesh offers lessons for inclusive sustainable growth.

India’s Rate of Growth

Particularly when compared to its development in the first 60 years following 1947, India appears to be on the right track and doing fairly well.

As per IMF, it took India almost 59 years since Independence to become a $0.95 trillion economy in 2006. But then it became a $2.3 trillion economy by 2016 it added $1.35 trillion in 10 years.

In 2022, it became a $3.5 trillion economy by adding $1.2 trillion in just six years. If India stays this course, the country could rise to a $25 to $30 trillion economy by 2047.

How inclusive is this growth?

Inclusiveness measurement and performance: Inclusiveness is measured by looking at the record of the laggard states, especially the so-called BIMARU states (Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh), and also the performance of the agricultural sector that engages the largest share of workforce 46.5 per cent in 2020-21.

Performance of GDP at the state level: The country averaged a GDP growth of 6.7 per cent per annum in this period and its agri GDP growth stood at 3.8 per cent per annum. This is satisfying, though not as outstanding as China’s performance.

Of all the major states: Gujarat topped the list in overall GDP growth at 8.9 per cent closely followed by Uttarakhand (8.7 per cent), Telangana (8.6 per cent) and Haryana (8 per cent). At the bottom of this list were Jammu and Kashmir (5.2 per cent), Assam (5.4 per cent), West Bengal (5.5 per cent), Uttar Pradesh (5.6 per cent) and Jharkhand (5.7 per cent).

Madhya Pradesh (MP): MP is the only state whose agriculture contribution to overall GDP has increased to 40 per cent, as against 18.8 percent at the all-India level its model should aptly be described as inclusive and sustainable.

Jharkhand: Jharkhand has performed exceptionally well in agriculture with a growth rate of 6.4 per cent per annum, largely driven by diversification towards horticulture and livestock.

Punjab: In contrast, the Green Revolution champion Punjab hasn’t done well. Its Agri-GDP growth was a meagre 2 per cent per annum over this period.

Inclusive and sustainable Model of Madhya Pradesh

Highest growth rate: Madhya Pradesh has performed very well it has clocked the highest growth rate in agriculture at 7.3 per cent. Its overall GDP growth is a respectable 7.5 per cent.

Agri-GDP growth is above India Agri-GDP growth: The state’s agri-GDP growth is way above the all India agri-GDP growth and the state is a shining example of doubling the contribution of horticulture in its value of agriculture and allied sector.

Well-diversified portfolio in agriculture: MP has made its mark as a top-notch player in tomato, garlic, mandarin oranges, pulses especially gram and soyabean cultivation. MP is also the second-largest producer of wheat after UP, and the third-largest milk producer after UP and Rajasthan.

Doubled irrigation coverage: It is following a well-diversified portfolio in agriculture while doubling irrigation coverage from 24 to 45.3 per cent of its gross cropped area over the last two decades.

According to the Madhya Pradesh agriculture model, the reason for the farm sector’s rapid expansion is a well-diversified portfolio of crops. This provides a roadmap for other Indian states and is inclusive and sustainable.

GST Appellate Tribunal gets nod

The GST Council came to a broad agreement on the creation of the GST Appellate Tribunal, which is probably going to be included in the Budget Bill 2023.

The GST Appellate Tribunal is what.

A quasi-judicial entity called the GST Appellate Tribunal is being considered for creation to handle cases involving the Goods and Services Tax (GST) in India.

It will serve as an impartial body to hear appeals against decisions made by the Appellate Authority or the Tax authorities.

The tribunal will have a national bench as well as several regional benches, and its chair will be chosen by the federal government.

The new tribunal is anticipated to lessen the workload on the judiciary and speed up the adjudication of GST-related disputes.

Under GST, if a person is not satisfied with the decision passed by any lower court, an appeal can be raised to a higher court, the hierarchy for the same is as follows (from low to high):

Adjudicating Authority

Appellate Authority

Appellate Tribunal

High Court

Supreme Court

Why need such Tribunal?

Unburden judiciary: GST Appellate Tribunal will help resolve the rising number of disputes under the 68-month old indirect tax regime that are now clogging High Courts and other judicial fora.

Improve efficiency of GST System: Overall, the establishment of the GST Appellate Tribunal is expected to improve the efficiency and effectiveness of the GST system in India.

Independent mechanism: The proposed Tribunal will provide an independent and efficient mechanism for resolving disputes related to GST.

Avoid tax evasion: It will help to expedite the resolution of disputes, reduce the burden on the judiciary, and promote greater certainty and predictability in the GST system.

Issues with present litigation

Compliance issues: The GST system is relatively new in India, having been implemented in 2017, and there have been several issues with compliance and interpretation of rules and regulations.

Complex adjudication hierarchy: The current dispute resolution mechanism involves multiple layers of adjudication, starting with the GST officer and as mentioned above.

Time consuming process: This process can be time-consuming, costly, and burdensome for taxpayers, especially small and medium-sized enterprises.

How is it being established?

The proposed GST Appellate Tribunal is expected to be included in the Finance Bill 2023.

This means that it will become a part of the central government’s budget, and will have legal standing.

Govt. taps consultants to kick-start land Monetization

To expedite the process of producing money by leasing or selling the land controlled by the government, the National Land Monetization Corporation (NLMC) has chosen to work with multinational property consultant firms.

NLMC: What is it?

NLMC is a Special Purpose Vehicle (SPV) that was introduced in the Union Budget for 2021–2022 to handle the monetisation of public sector organisations’ surplus land holdings (PSU).

It was established with a paid-up capital of 150 crore and an initial authorised share capital of 5,000 crore under the administrative control of the Ministry of Finance.

It is a company that the government entirely owns, and it is responsible for the land assets that make up surplus, idle, or underutilised government and public sector assets.

Aims and objectives

Monetize underutilised or unused land parcels of Central Public Sector Enterprises (CPSEs)

Facilitate the monetisation of assets belonging to PSUs that have ceased operations or are in line for a strategic disinvestment.

How would it work?

Transfer of revenue rights: When the government monetises its assets, it essentially means that it is transferring the revenue rights of the asset (could be idle land, infrastructure, PSU) to a private player for a specified period of time.

Govt as facilitator: In such a transaction, the government gets in return an upfront payment from the private entity, regular share of the revenue generated from the asset, a promise of steady investment into the asset, and the title rights to the monetised asset.

Significant outcomes of land monetization

Maximum value realization: It will help monetise them in an efficient and professional manner, maximizing the scope of value realisation.

Speed up the process: The setting of the NLMC will speed up the closure process of the CPSEs and smoothen the strategic disinvestment process.

Capitalize land assets: It will also enable productive utilisation of these under-utilized assets by setting in motion private sector investments.

Economic revitalization: It will boost new economic activities such as industrialisation, boosting the local economy by generating employment and generating financial resources for potential economic and social infrastructure.

Advisory to the govt: Besides managing and monetising, the NLMC will act as an advisory body and support other government entities and CPSEs in identifying their surplus non-core assets.

Need for land monetization

There are different reasons why the government monetizes its assets.

New sources of revenue: One of them is to create new sources of revenue essential to fulfil the government’s target of achieving a $5 trillion economy.

Plummeting underutilized assets: Monetisation is also done to unlock the potential of unused or underused assets by involving institutional investors or private players.

Capital generation: It is also done to generate resources or capital for future asset creation, such as using the money generated from monetisation to create new infrastructure projects.

How much land is currently available for monetization?

According to the Economic Survey 2021-2022, as of now, CPSEs have put nearly 3,400 acres of land on the table for potential monetization.

They have referred this land to the Department of Investment and Public Asset Management (DIPAM).

As per the survey, monetisation of non-core assets of PSUs such as MTNL, BSNL, BPCL, B&R, BEML, HMT Ltd, Instrumentation Ltd etc. are at different stages.

Possible challenges for NLMC

(1) Volatile market situation

The performance and productivity of the NLMC will also depend on the government’s performance on its disinvestment targets.

In FY 2021-22, the government has hardly been able to raise expected amounts through various forms of disinvestment.

(2) Issues with transfer of rights

The process of asset monetisation does not end when the government transfers revenue rights to private players.

Identifying profitable revenue streams for the monetised land assets, ensuring adequate investment by the private player and setting up a dispute-resolution mechanism are also important tasks.

(3) Unattractiveness of PPP Model

Posing as another potential challenge would be the use of Public Private Partnerships (PPPs) as a monetisation model.

For instance, the results of the Centre’s PPP initiative launched in 2020 for the Railways were not encouraging.

(4) Red tapism

The success of the initiative will depend on a range of factors, including the availability of suitable land parcels, market demand etc.

It will be highly dependent upon the ability of the government to execute the transactions efficiently.

The government’s initiative to monetize its substantial land holdings aims to ease fiscal pressure and accelerate infrastructural growth in the nation.

The government seeks to increase efficiency and openness while maximising the returns on its land assets by enlisting the aid of foreign property consultants.

If successful, the government’s effort to monetize land might give the economy a much-needed boost and open up new possibilities for private investment in the real estate industry.

Diyodar meteorite in 2022 was India’s first Aubrite in 170 years

The Diyodar meteorite, an unusual and distinctive meteorite, was found in December 2022 near Banaskantha, Gujarat. Because it is the first aubrite to be discovered in India in 170 years, it is noteworthy.

Describe Aubrites.

The meteorite type known as an aubrite is thought to have originated on a separate planet in the early solar system.

They are distinguished by their peculiar mineralogy and makeup, and it is thought that they descended from a distinct parent body, such as an asteroid or a planetesimal.

They are primarily composed of a mineral called enstatite, which is a magnesium-rich silicate. They also contain other minerals such as nickel-iron, troilite, and chromite.

Aubrites are relatively rare, comprising only about 0.1% of all known meteorites.

They are believed to have formed under highly reducing conditions, with very little oxygen present.

Meteorite found in Diyodar, Gujarat

The Diyodar meteorite is thought to be around 4.5 billion years old, and it is believed to have originated from the asteroid belt between Mars and Jupiter.

Its discovery provides scientists with an opportunity to study the composition and structure of these unique meteorites.

This, in turn, can help researchers to better understand the early solar system and the processes that led to the formation of planets.

Its composition

Around 90% of the meteorite was composed of orthopyroxene.

Pyroxenes are silicates consisting of single chains of silica tetrahedra (SiO 4); orthopyroxenes are pyroxenes with a certain structure.

Pyroxenes such as diopside and jadeite have been used as gems. Spodumene was historically used as lithium ore.

Rocks with pyroxene have also been used to make a crushed stone that is used in construction.