Make in India Current Affairs - 2019

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New Committee to review Defence Procurement Procedure to strengthen ‘Make in India’

Rajnath Singh, Union Minister of Defence has approved setting up of a Committee to review Defence Procurement Procedure (DPP) 2016 and Defence Procurement Manual (DPM) 2009 as DPP 2016 and DPM 2009 have been due for revision for a while.

Key Highlights about Committee

The 12-member committee will be set up under Chairmanship of Director General (Acquisition). Apart from DG (Acq) the 11 other members who part of this high-level committee should not be below rank of Joint Secretary or Major General equivalent.

Committee will revise and align procedures with aim of ensuring seamless flow from asset acquisition to life cycle support. Aligning procedures will not only ensure seamless flow from asset acquisition to life cycle support but also strengthen Make in India initiative of Government of India.

Term: It has 6 months to submit its recommendations.

Terms of reference of Committee
  • To revise procedures as given in DPP 2016 and DPM 2009 for removing procedural bottlenecks and hasten defence acquisition.
  • To align and standardise provisions in DPP 2016 and DPM 2009 (wherever applicable), for optimising life cycle support for equipment.
  • To simplify policy and procedures for facilitating greater participation of Indian Industry and develop robust Defence Industrial base.
  • Wherever applicable, examine and incorporate new concepts, for instance life cycle costing, performance based logistics, life cycle support, codification & standardisation, lease contracting and Information and Communication Technology (ICT).
  • Include provisions to promote Indian start-ups and research & development (R&D).
  • Any other aspect which will contribute towards refining acquisition process and support the Make in India initiative.

5,645 electric buses sanctioned for 65 cities: NITI Aayog

According to NITI (National Institution for Transforming India) Aayog an Inter-Ministerial Panel has sanctioned 5645 electric buses for operations in 65 cities and for inter-city operations to 8 state transport undertakings. The announcement in this regard was made by NITI Aayog CEO Amitabh Kant. The move will give huge impetus to automobile sector, clean up cities & drive Make in India intiative.

Niti Aayog has also proposed that all two-wheelers below capacity of 150cc sold in country after March 31, 2025, should be electric only while three-wheelers sold in country after March 31, 2023 should be electric ones.

Steps taken by Centre to popularise Environment-Friendly Electric Vehicles

Tax Rebate: GST Council decided to cut tax rates on e-vehicles from 12% to 5% with effect from 1 August 2019.

In Union Budget 2019-20, Central government proposed additional income tax deduction of Rs.1.5 lakh on Interest paid on loans taken to purchase electric vehicles. Also, certain parts of EVs have been exempted from customs duty to further incentivise e-mobility in India.

FAME II: Centre has also approved Rs.10,000 crore under Phase II of FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) scheme, which aims to encourage faster adoption of such vehicles by right incentives and charging infrastructure.