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World Intellectual Property Organization Bars Delhi-based Firm from Illegally Using Brand Name “Khadi”

Posted on by Business So Simple in Intellectual property rights

The World Intellectual Property Organization (WIPO), a specialized agency of the United Nations for brand protection across the world, has ordered a Delhi-based firm against using a domain name www.urbankhadi.com, which illegally uses the  brand name “Khadi”.  The Administrative Panel of WIPO’s Arbitration and Mediation Center has ruled that the firm “Om Soft Solutions”, owned by one Harsh Gaba, had registered and used the domain name www.urbankhadi.com in “bad faith” and to gain benefit from the goodwill of Khadi.

The panel’s order came on a petition of Khadi and Village Industries Commission (KVIC) against “Om Soft Solutions” which was indulging in the business of garments by misusing the brand name “Khadi”. The panel lent credence to KVIC’s contentions that “it was a systematic attempt by Mr Harsh Gaba to derive unfair advantage, wrongful commercial gains and to mislead the public into believing that www.urbankhadi.com is an associate of Khadi India.” “It is evident that the respondent can have no legitimate interest in the disputed domain name…nobody would use the word “Khadi” unless seeking to create an impression of an association with Khadi,” the panel noted.

“….the evidence submitted by the complainant (KVIC) leads to the presumption that the disputed domain name www.urbankhadi.com was registered and used by the respondent in bad faith….the panel orders that the disputed domain name be transferred to the complainant, i.e. KVIC,” the panel ruled.

The panel categorically rejected the arguments of “Om Soft Solutions” that the word “Khadi” enjoyed no protection and that nobody had an exclusive right to use the name “Khadi”. “…. the complainant (KVIC) is the owner of several KHADI trademark registrations. The complainant is also the owner of trademarks “Khadi” and “Khadi India”…the disputed domain name www.urbankhadi.com includes the trademark of KVIC and is confusingly similar or identical to the trademarks of the complainant (KVIC),” the panel observed.

KVIC Chairman, Shri Vinai Kumar Saxena said the WIPO’s order will bolster Khadi’s fight against violation of its brand name not only in India but also globally.He said KVIC will take all measures to protect the identity and global popularity of Khadi. He said KVIC has registered the trademark “Khadi” in several countries to prevent any misuse of the brand name “Khadi” as it has a direct bearing on the livelihood of our artisans.

It is pertinent to mention that KVIC, in recent times, has won several cases against violation of its trademark “Khadi”. On June 4, Delhi High Court barred a Ghaziabad-based trader JBMR Enterprises from manufacturing and selling counterfeit Khadi Prakritik Paint. On May 28, Delhi High Court restrained “Khadi Design Council of India” and “Miss India Khadi Foundation” from using “Khadi” brand name. On May 3, an Arbitration Tribunal in Delhi had said that “Khadi” was not a generic name to be used by private individuals or firms while permanently restraining an individual from using the brand name Khadi. In March this year, the Delhi High Court had also restrained a firm from using brand name Khadi and the Charkha symbol to sell its products under the name “IWEARKHADI”.

KVIC in the last few years has acted tough against such violators. So far KVIC has issued legal notices to over 1000 private firms including Fabindia for misusing its brand name and selling products under the name of Khadi. KVIC has sought damages to the tune of Rs 500 crore from Fabindia which is pending before the Mumbai High Court.

Click here to see WIPO Decision 

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Ministry of Micro,Small & Medium Enterprises Press release dated 01st July 2021

MJPS

Shri Nitin Gadkari says GST will help in achieving the vision of five trillion dollar Indian economy by 2025, calls for performance audit alongwith financial audit

Posted on by Business So Simple in GST

Minister for Road Transport & Highways and MSME Shri Nitin Gadkari has said that GST will help achieve the vision of five trillion dollar Indian economy by 2025. Addressing a webinar on the “GST Day” on the theme “THE JOURNEY OF GST AND WAY FORWARD – AATMANIRBHAR BHARAT” organised by the Institute of Cost Accountants of India he said said GST is founded on the notion of “One Nation, One Market, One Tax” which has helped and will be helping the trade and industry a lot despite the prevailing pandemic situation. Shri Gadkari said Goods and Services Tax was implemented from 1st July 2017 and now it has completed four years of its implementation, during these four years a remarkable change is seen in the way the business is being carried out.

The minister said digitalisation and information technology have an important role to play. He said for transparent and time bound decision making process Performance Audit alongwith Financial Audit is very important. Talking about the problems faced by MSMEs he said delayed payments are the main cause of concern which has to be resolved.

The minister said though GST has completed four years there is still room for improvement . Shri Gadkari said cooperation, coordination, communication and rectification is needed from all stakeholders.

Shri Gadkari complimented The Institute of Cost Accountants of India for conducting regular webinars, seminars, various courses for different stake-holders throughout the Country to unlearn and relearn new subjects which are need of the hour to survive in the New Normal.

Full event link https://youtu.be/83c7SBwegX0

Ministry of Road Transport & Highways Press Release dated 01 July 2021

Tourism Industry welcomes the schemes announced by the Ministry of Finance for augmenting the tourism sector in fight against COVID-19 pandemic

Posted on by Business So Simple in Entrepreneurship

Union Finance Minister Smt. Nirmala Sitharaman announced the relief package Rs 6,28,993 crore to support Indian economy in fight against COVID-19 pandemic on 28th June 2021.  The financial support to revive tourism in the country was announced with support to many other sectors to stimulate the economic growth.

Scheme for Travel and Tourism Stakeholders and Registered Tourist Guides

Financial support to more than 11,000 registered Tourist Guides / Travel and Tourism Stakeholders. Under the new Loan Guarantee Scheme for Covid Affected Sectors, working capital / personal loans will be provided to people in tourism sector to discharge liabilities and restart after being impacted due to COVID-19. The scheme will cover 10,700 Regional Level Tourist Guides recognised by the Ministry of Tourism and Tourist Guides recognised by the State Governments and Travel and Tourism Stakeholders (TTS) recognized by the Ministry of Tourism. TTS’s will be eligible to get a loan upto Rs. 10 lakh each while tourist guides can avail loan upto Rs 1 lakh each. There will be no processing charges, waiver of foreclosure / prepayment charges and no requirement of additional collateral. Scheme to be administered by the Ministry of Tourism through NCGTC.

Free Tourist Visa to 5 Lakh Tourists

As per the announcement, once Visa issuance is restarted, the first 5 lakh Tourists Visas will be issued free of charge. The benefit of free of charge visa will be available only once per tourist during the issuance of the first 5 lakh tourist visas (free of charge visas). The scheme will be applicable till 31st March 2022 or till 5,00,000 visas are issued, whichever is earlier.

Ministry of Finance gives concurrence to release SEIS scrips on 16.06.2021

Ministry of Finance has given concurrence to release SEIS scrips on 16.06.2021.  Earlier, several Industry stakeholders had flagged appeals to the government to release SEIS Scrips for 2019-20 and DGFT had put a detailed proposal for the allocation for SEIS for exports made during 2019-20. Taking all circumstances into account, the Department of Expenditure, Ministry of Finance has given concurrence to the proposal of Department of Commerce for continuation of SEIS for 2019-20 with a financial allocation of Rs.2061 crores subject to the condition that the amount will be provided through Expenditure Budget following the procedure of providing a New Minor Head.

These above moves are expected to immensely help the stakeholders in the sector by providing them much required liquidity and gear up for the operations in near future. Similarly, it is also expected to provide much needed relief to the government approved tourist guides who have been affected by the ongoing slowdown in the sector due to the pandemic.

Tourism Industry welcomed these measures announced by the Government. “The tourism focussed announcements are very welcome. This is a step in the right direction. We however do request that the sum of Rs 10 lakhs be increased. The industry has been damaged very deeply and we need greater support not only to survive but to work on recovery. On the Visas, a very good gesture, but let us show the world the true spirit of Atithi Devo Bhava and make it free for all till December 2022. Today’s announcements are a positive start for sure, but more assistance is needed very quickly to help with our recovery” opined Rajeev Kohli, Joint Managing Director, Creative Travel & Past Senior Vice Present IATO and Vice Chairman ICPB

Mr. Rajiv Mehra, President, Indian Association of Tour Operators (IATO), the apex association of tour operators in the country said “We are grateful to the Prime Minister and  Finance Minister for giving some relief to the tourism industry including 5 lakh free visas applicable till 31st March 2022, whenever visas are open, and we are grateful to the Tourism Minister for supporting the industry, giving relief to the affected sector including Tour Operators and registered tourist guides in tourism sector. IATO thanked the Government for considering loan to the tour operators and the guides but requested that the Government should also consider giving one-time financial grant to all recognised tour operators.”

Reacting to the announcement, Mr. Ashok Sharda, Past President, Tourist Guides Federation of India said, “Decision by the tourism ministry to provide some financial assistance to regional guides and exempt visa fee to first 5 lac tourists is a welcome step Regional guides who have been unemployed for the last 15 months were hoping for some relief from the ministry. It may not be substantial but good to know that we have not been orphaned”

Expressing satisfaction on this move of the Government, Ms. Ekta Watts, Executive Committee member of Association of Domestic Tour Operators of India (ADTOI) & Chairperson Women empowerment CSR activity and LEO Initiator said “A very positive step by Finance Ministry to announce financial support for the tourism sector under reviving tourism scheme. This surely is appreciated and long awaited move by the government which will definitely give travel industry revitalization”

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Arun Jaitley National Institute of Financial Management (AJNIFM) partners with Microsoft to build an AI and Emerging Technologies Centre of Excellence

Posted on by Business So Simple in Science & Technology

Arun Jaitley National Institute of Financial Management (AJNIFM) partners with Microsoft to build an AI and Emerging Technologies Centre of Excellence


Joint development of Centre of Excellence to drive cloud and AI led innovation in fintech

Partnership will focus on capacity building of government officials, skilling them in emerging technologies, like AI and machine learning

The Arun Jaitley National Institute of Financial Management (AJNIFM) and Microsoft signed a Memorandum of Understanding (MoU) for a strategic partnership to build an AI and emerging technologies Centre of Excellence at AJNIFM. The collaboration seeks to explore the role of cloud, AI and emerging technologies for transforming and shaping the future of public finance management in India.

The Centre of Excellence will serve as a central body for research, AI scenario envisioning and tech led innovation. AJNIFM and Microsoft will jointly explore use cases of emerging technologies in finance and related areas, across central and state ministries and public sector enterprises. Microsoft will partner closely with AJNIFM to define the future of public finance management in India, providing the technology, tools and resources to build a strong ecosystem of partners, upskill government officials and build thought leadership. 

Both organizations will also work closely on a capacity building program for senior government officials in associated ministries, departments and financial institutions. As part of this skilling effort, public sector officials will be trained on the application of emerging technologies in finance management to address potential risks like money laundering, use of machine learning models for decision making, role of responsible tech in finance, etc. Microsoft will also work closely with its partners, MSMEs and ISVs to build customized solutions that address the challenges of the sector.

As part of the strategic partnership, Microsoft and AJNIFM will focus on:

  • Building an innovation centre: Joint development of a Centre of Excellence at AJNIFM to drive AI envisioning in finance management across key associated ministries of AJNIFM.
  • Industry thought leadership: Microsoft and AJNIFM will jointly develop research papers and organize strategic knowledge sharing workshops with industry experts to discuss the role of cloud, data and AI for re-imagining public finance management in India.
  • Reskilling and capacity building: Developers at AJNIFM and senior government officials from associated ministries will be skilled in data engineering, data sciences, AI and machine learning etc.
  • Creating a strong ecosystem of partners: Engaging ecosystem partners, academia and MSMEs to drive innovation in financial management based on priority scenarios.

Speaking about the partnership, Shri Prabhat Ranjan Acharya, Director, AJNIFM, said, “The Steering Committee on fintech related issues under the chairmanship of Secretary, Economic Affairs, had recommended setting up centres of excellence on fintech in key premier national institutions like AJNIFM. The ambit of research studies will seek to address key challenges in public financial management, particularly expenditure management, revenue leakages, use of emerging technologies in preventing money laundering, studying existing DBT system and potential of application of emerging technologies including machine learning models in decision making etc. With continuous technological support from Microsoft, AJNIFM will be the only institution in the country equipped with high pedigree of financial analytical tools in the financial sector research domain.”

Commenting on this, Shri Navtez Bal, Executive Director, Public Sector, Microsoft India, said,“AJNIFM has a long history of driving research and innovation, preparing the next generation of leaders to transform India’s finance management system. This collaboration brings together AJNIFM’s rich experience in the public sector with Microsoft’s cloud and AI capabilities, paving the way for data and AI led governance and fintech transformation.  We are excited to work together to accelerate research, enable skilling in emerging tech and invest in building a strong industry ecosystem for public finance management in the country. “

About AJNIFM: 

The Arun Jaitley National Institute of Financial Management (AJNIFM) is a Centre of Excellence specialising in capacity building of professionals in the fields of Public Policy, Financial Management and other governance issues for promoting highest standards of professional competence and practice. AJNIFM was set up in 1993 as a registered society under Ministry of Finance, Government of India. AJNIFM plays a pivotal role in governance and administrative reforms by providing a platform for interaction and exchange of ideas and experiences among officers from different organized services, different state governments and between personnel of civil and defense establishments. AJNIFM has become a premier resource center to meet the training needs of Central Government for senior and middle level management.

About Microsoft India

Microsoft enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more. Microsoft set up its India operations in 1990. Today, Microsoft entities in India have over 13,000 employees, engaged in sales and marketing, research, development and customer services and support, across 11 Indian cities – Ahmedabad, Bengaluru, Chennai, New Delhi, Gurugram, Noida, Hyderabad, Kochi, Kolkata, Mumbai, and Pune. Microsoft offers its global cloud services from local data centers to accelerate digital transformation across Indian startups, businesses, and government organization.

Ministry of Finance Press release dated 01st July 2021

RM/MV/KMN

Shri Piyush Goyal calls upon the Chartered Accountants of the country to think big and scale up

Posted on by Business So Simple in Entrepreneurship

Minister of Railways, Commerce & Industry, Consumer Affairs and Food & Public Distribution Shri Piyush Goyal today called upon the Chartered accountants of the country to think big and scale up to the global levels. Speaking at 73rd Chartered Accountants’ Day Programme organised by the Institute of Chartered Accountants of India, he said that we need a complete mindset change, a reset of ambitions in our profession. The companies should look at mergers, acquisitions, partnerships and larger ventures, and become world class, he added.

Shri Goyal said “When theICAIturns 75, can we look at having our first set of global world class chartered accountancy firms serving clients worldwide.” The Minister said that the institute must look at the world class ethics, technical know-off and stringent standards as it grows. He said that if we have to earn the goodwill, respect & trust of the world, we will need 100% credibility ingrained in every single one of us. Heurged each& every CA & CA student, as part of their collective responsibility to maintain the flag of the institute high. “We will do it, we can do it & we certainly are committed to doing it. For us to be a partner in the nation’s progress, we will all have to start seeing how we can be engaged in the startup ecosystem.”

Lauding the profession of CAs, Shri Goyal said that it is great to see a profession which is recognised & respected. There is a yearning for people to be Chartered Accountants. It has taken it upon itself to continue to serve the economy, carry out our professional duties & continue to educate our students. He said that the Institute has 72 years of accomplishments, achievements and trust. They have been in the service of the nation, service of business and contributing to the nation’s economy. He said “To me, the I.C.A.I should reflect Integrity, Commitment, Accountability, and Intellect.We are amongst the top accounting bodies in the world. The world has seen in our institute high standards of ethics, technical know-how& very stringent examination standards.”

Shri Goyal called upon the institute to be an active participant in the nation’s vaccination campaign, and play a role in helping people overcome vaccine hesitancyby generating awareness and even adopting a few villages or certain areas for providing the vaccination. He said that the vaccination drive is proceeding rapidly across the country.

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Ministry of Commerce & Industry Press release dated 01st July 2021

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In order to reduce the edible oil prices, Center reduces the duty on Crude Palm Oil (CPO) by 5%

Posted on by Business So Simple in Public Affairs

Ministry of Consumer Affairs, Food & Public Distribution Press Release dated 30 June 2021

In order to reduce the edible oil prices, Center reduces the duty on Crude Palm Oil (CPO) by 5%


Further, to cool down the prices of RBD Palmolein (Refined Palm oil), DFPD recommends removal of the restriction on import of RBD Palmolein and put it in the open general category of imports

 Move to support its availability at lower prices for the domestic consumer

In order to bring relief to the consumers and reduce the edible oil prices, Center has reduced the duty on   Crude Palm Oil (CPO) by 5%.

Further, to cool down the prices of RBD Palmolein (Refined Palm oil), Department of Food & Public Distribution has recommended removal of the restriction on import of RBD Palmolein and to put it in the open general category of imports.

These Moves are expected to lower prices of edible oils for the domestic consumers.

The major edible oils consumed in the country are mustard, soyabean, groundnut, sunflower sesame oil, niger seed, safflower seed, castor and linseed (primary source) and coconut, palm oil, cottonseed, rice bran, solvent extracted oil, tree & forest origin oil. The total domestic demand of edible oils in the country is approximately 250 LMT per year. Around 60% of the edible oils consumed in the country is met through imports. Palm oils (Crude + Refined) import constitutes around 60% of the total edible oil imported, out of which 54% is imported from Indonesia and Malaysia. As the country has to depend heavily on imports to meet the gap between demand and supply, the International prices have an impact on domestic prices of edible oils.

Food inflation including high prices of edible oils has been a cause of concern and therefore the government has been monitoring their prices and taking steps by way of removing bottlenecks to soften prices. A mechanism was institutionalized involving nodal offices of the Customs department, FSSAI, Plant Quarantine division to monitor the speedy clearance of food commodities like pulses and Crude Palm Oil (CPO) at shipping ports.  The international prices of crude edible oil and refined palm oil were showing declining trend in prices over the past one month. Still, the prices of domestic refined palm oil and crude edible oil remained high.

The Government, keeping in view the consumer interest due to rising prices of Edible oil, has reduced the duty on CPO duty by 5%. Further, to cool down the prices of RBD Palmolein (refined Palm oil) , DFPD recommended removal of the restriction on import of RBD Palmolein and put it in the open general category of imports to support its availability at lower prices for the domestic consumer.

Ministry of Finance vide Notification No. 34/2021-Customs dated 29th June, 2021 has cut duty on CPO to 10% from 15% w.e.f. 30th June, 2021 and this will remain in force upto and inclusive of the 30th September, 2021.  The reduction will bring down the effective tax rate on CPO to 30.25% from the earlier 35.75% inclusive of additional agri-cess of 17.5% and 10% social welfare cess. This reduction, in turn, will bring down the retail prices of Edible Oils.

Further, Department of Commerce vide Notification No. 10/2015-2020 dated 30th June, 2021 has issued revised import policy for Refined Bleached Deodorized (RBD) Palm Oil and RBD Palmolein by removing both from restricted to free category. This would be effective with immediate effect and for a period upto 31.12.2021.

Government has reduced duty only till September 2021 to clearly signal to farmers that their interest shall not be compromised. Making India “AtmaNirbhar” in edible oils is our cherished goal and National Oilseeds mission is committed to achieving it by aligning policies including foreign trade.The government will be monitoring the prices on a daily basis expects the industry to pass on full benefits to the consumers.

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India will be playing a much greater role in the post pandemic world in creating resilient supply chains

Posted on by Business So Simple in Entrepreneurship

Ministry of Commerce & Industry, Press Release dated 30th June 2021

Minister of Railways, Commerce & Industry, Consumer Affairs and Food & Public Distribution Shri Piyush Goyal today said that India will be playing a much greater role in the post pandemic world in creating resilient supply chains. Speaking at the India Global forum today, he said that we are looking at a greater degree of engagement with countries that are democratic in their political system with which we can relate& trust as a partner. He added that India is working towards greater engagement with countries with which we have a shared ecosystem, countries which believe in transparent rules based trading mechanisms. He said that India is talking to UK, Australia, Canada and EU for trade related matters, and is keen to speed them up.

Shri Goyal said that our trusted partners can look for a greater role for India, and we are opening our doors wider. The Minister said that we are looking at investments, technology, high quality goods, equipment, machinery. “We will be looking at providing high quality technology support to our services & IT sector”.

Shri Goyal said that India has tried in WTO to promote a waiver on TRIPS so that vaccines & other medicines can be available to everyone across the world. He said that it is unfortunate that some European countries are not supporting the initiative and have preferred profit over prudence.

Shri Goyal said that we are confident that India will continue to maintain precautions & COVID protocols. He said that we are going to maintain our safeguards & masks. The Minister highlighted that despite being a developing nation, India has already crossed about 340 million vaccines. “We are currently doing 5 million a day which we hope to ramp up further in the days to come. We are happy to share our learnings with other countries. Our COWIN app through which we have done the vaccination programme has been a remarkable success & now large parts of the world are asking us for the COWIN app to be implemented in their countries.”

Shri Goyal said that India has done a record growth in exports in our first quarter despite the second wave of COVID. Similarly, the Railway freight from April-June 2021 is the highest ever in the history of Indian Railways,

Yb/SS

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Guidelines under section 194Q of the Income-tax Act, 1961 – CBDT Circular dated 30 June 2021

Posted on by Business So Simple in Income Tax

Finance Act, 2021 inserted a new section 194Q in the Income-tax Act 1961 (hereinafter referred to as “the Act”) which takes effect from I st day of July, 202 I. It applies to any buyer who is responsible for paying any sum to any resident seller for purchase of any goods of the value or aggregate of value exceeding fifty lakh rupees in any previous year. The buyer, at the time of credit of such sum to the account of the seller or at the time of payment, whichever is earlier, is required to deduct an amount equal to 0.1 % of such sum exceeding fifty lakh rupees as income tax.

Buyer is defined to be person whose total sales or gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the financial year in which the purchase of good is carried out. Central Government has been authorised to specify by notification in the Official Gazette, person who would not be considered as buyer for the purposes ofthis section.

Sub-section (3) of section 194Q of the Act empowers the Board (with the approval of the Central Government) to issue guidelines for the purpose of removing difficulties. Various representations have been received by the Board for issuing guidelines for removing certain difficulties. In exercise of power contained under sub-section (3) of section 194Q of the Act, the Board, with the approval of the Central Government, hereby iss’ues the following guidelines. These guidelines at some places have also tried to remove difficulties in implementing the provisions of section 194-0 and sub-section (I H) of section 206C of the Act using power contained in sub-section (4) of section 194-0 of the Act and sub-section (II) of section 206C of the Act.

Refer YouTube video link on Guidelines under section 194Q of the Income-tax Act, 1961Circular No. 13 of 2021 | Dated: 30th June, 2021 https://www.youtube.com/watch?v=STkfUwABAtc

Issue clarified under guidelines

1. Applicability on transactions carried through various Exchanges

2. Calculation of threshold for the financial year 2021-22

3. Adjustment for GST, purchase returns

4. Whether non-resident can be buyer under section 194Q of the Act?

5. Whether tax is to be deducted when the seller is a person whose income is exempt

6. Whether tax is to be deducted on advance payment?

7. Whether provisions of section 194Q of the Act shall apply to buyer in the year of incorporation?

8. Whether provisions of section 194Q of the Act shall apply to buyer if the turnover from business is 10 crore or less?

9. Cross application of section 194-0, sub-section (111) of section 206C and section 194Q of the Act.

Refer copy of circular:

Cabinet approves Revamped Distribution Sector Scheme: A Reforms based and Results linked Scheme”

Posted on by Business So Simple in Public Affairs

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved a Reforms-based and Results-linked, Revamped Distribution Sector Scheme.  The Scheme seeks to improve the operational efficiencies and financial sustainability of all DISCOMs/ Power Departments excluding Private Sector DISCOMs by providing conditional financial assistance to DISCOMs for strengthening of supply infrastructure. The assistance will be  based on meeting pre-qualifying criteria as well as upon achievement of basic minimum benchmarks by the DISCOM evaluated on the basis of agreed evaluation framework tied to financial improvements. Implementation of the Scheme would be based on the action plan worked out for each state rather than a “one-size-fits-all” approach.

The Scheme will have an outlay of Rs.3,03,758 crore with an estimated GBS from Central Government of Rs.97,631 crore. It is proposed that the currently ongoing approved projects under the Schemes of IPDS, DDUGJY along with PMDP-2015 for the Union Territories of Jammu & Kashmir (J&K) and Ladakh would be subsumed in this Scheme, and the savings of their GBS (approx. Rs. 17000 crore) would be part of the total outlay of the Revamped Distribution Sector Scheme under the existing terms and conditions till their sunset on 31″ March, 2022. The funds under these Schemes would be available for the identified projects under IPDS and for the approved ongoing projects under Prime Minister’s Development Program (PMDP) for the Union Territories of J&K and Ladakh under IPDS and DDUGJY till 31 March, 2023.

The Revamped Distribution Sector Scheme aims to improve operational efficiencies and financial sustainability, by providing result-linked financial assistance to DISCOMs for strengthening of supply infrastructure based on meeting pre-qualifying criteria and achieving basic minimum benchmarks. The Scheme would be available till the year 2025-26. REC and PFC have been nominated as nodal agencies for facilitating implementation of the Scheme.

Scheme Objectives

  1. Reduction of AT&C losses to pan-India levels of 12-15% by 2024-25.
  2. Reduction of ACS-ARR gap to zero by 2024-25.
  3. Developing Institutional Capabilities for Modern DISCOMs
  4. Improvement in the quality, reliability, and affordability of power supply to consumers through a financially sustainable and operationally efficient Distribution Sector.

Details

The Scheme provides for annual appraisal of the DISCOM performance against predefined and agreed upon performance trajectories including AT&C losses, ACS-ARR gaps, infrastructure upgrade performance, consumer services, hours of supply, corporate governance, etc. DISCOMs have to score a minimum of 60% of marks and clear a minimum bar in respect to certain parameters to be able to be eligible for funding against the Scheme in that year.

The Scheme has a major focus on improving electricity supply for the farmers and for providing daytime electricity to them through solarization of agricultural feeders. Under the scheme, works of separation of 10,000 agriculture feeders would be taken up through an outlay of almost Rs 20,000 crore, which would be highly beneficial to the farmers who would get access to dedicated agriculture feeders providing them reliable and quality power. This Scheme converges with the Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan (PM-KUSUM) Scheme, which aims to solarize all feeders, and provide avenues for additional income to farmers.

A key feature of the Scheme is to enable consumer empowerment by way of prepaid Smart metering to be implemented in Public-Private-Partnership (PPP) mode. Smart meters would allow consumers to monitor their electricity consumption on a routine basis instead of monthly basis, which can help them in usage of electricity as per their own needs and in terms of the resources available. While in all 25 crore Smart meters are planned to be installed during the Scheme period, priority would be given to install prepaid Smart Meters in a mission mode in the first phase in (i) all Electricity Divisions of 500 AMRUT cities, with AT&C Losses > 15% (ii) all Union Territories (iii) MSMEs and all other Industrial and Commercial consumers (iv) all Government offices at Block level and above (v) other areas with high losses. It is proposed to install approximately 10 crore prepaid Smart Meters by December, 2023 in the first phase. The progress of installation of prepaid Smart meters would be monitored closely, especially those in Government Offices, to enable their installation in a time-bound manner.

Looking into the scattered nature of agricultural connections and their remoteness from the habitations, agricultural connections would be covered only through Feeder Meters.

Along with the time-bound implementation of prepaid Smart metering for consumers, it is also proposed to take up System metering at Feeder and Distribution Transformer (DT) level with communicating feature simultaneously in PPP mode.

Artificial Intelligence would be leveraged to analyze data generated through IT/OT devices including System Meters, prepaid Smart meters to prepare system generated energy accounting reports every month to enable DISCOMs to take informed decisions on loss reduction, demand forecasting, Time of Day (ToD) tariff, Renewable Energy (RE) Integration and for other predictive analysis. This would contribute a great deal towards enhancing operational efficiency and financial sustainability of the DISCOMs. Funds under the scheme would also be used for development of applications related to the use of Artificial Intelligence in the Distribution sector. This would promote the development of Startups in the Distribution Sector across the country.

Major components:

  1. Consumer Meters and System Meters
    1. Prepaid Smart Meters for all consumers except Agricultural consumers
    2. ~25 crore consumers to be covered under prepaid Smart metering
    3. Prioritizing the urban areas, UTs, AMRUT cities and High Loss areas for prepaid Smart metering i.e. ~10 crore prepaid Smart meter installation by 2023, the balance to be taken up in phases
    4. Communicable AMI meters proposed for all Feeders and Distribution Transformers to enable energy accounting, leading to better planning for loss reduction by DISCOMs
    5. Installing prepaid Smart Meters should help DISCOMs in improving of their operational efficiencies and strengthen DISCOMs to provide better service to consumers
  1. Feeder Segregation
    1. Scheme also focuses on funding for feeder segregation for unsegregated feeders, which would enable solarization under KUSUM
    2. Solarization of feeders will lead to cheap/ free day time power for irrigation and additional income for the farmers.
  1. Modernization of Distribution system in urban areas
    1. Supervisory Control and Data Acquisition (SCADA) in all urban areas
    2. DMS in 100 urban centers
  1. Rural and Urban area System strengthening

Provision for Special Category States:

All Special Category States including North-Eastern States of Sikkim and States/Union Territories of Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Andaman & Nicobar Islands, and Lakshadweep will be treated as Special Category States.

For Prepaid Smart metering, grant of Rs 900 or 15% of the cost per consumer meter worked out for the whole project, whichever is lower, shall be available for “Other than Special Category” States. For “Special Category” States, the corresponding grant would be Rs 1350 or 22.5% of the cost per consumer, whichever is lower.

In addition, the DISCOMs can also avail of an additional special incentive of 50% of the aforementioned grants if they install the targeted number of Smart meters by December, 2023.

For works other than Smart metering, maximum financial assistance given to DISCOMs of “Other than Special Category” States will be 60% of the approved cost, while for the DISCOMs in Special Category States, the maximum financial assistance will be 90% of the approved cost.

Cabinet Committee on Economic Affairs (CCEA) Press release dated 30 June 2021 *******