Current News Economy Development
Budget Introduces Agriculture Infrastructure And Development Cess (AIDC)
Agriculture Infrastructure & Development Cess (AIDC), has been introduced in the Budget 2021-22 to aid the agri sector.
The cess is not uniform and varies from product to product.
Proposed Agriculture Cess
|Items||Cess (In %)|
|Gold, Silver and Dare Bars||2.5|
|Crude Palm Oil||17.5|
|Crude Soyabean and Sunflower Oil||20|
|Coal, Lignite and Peat||1.5|
|Specified Fertilizers (Urea etc.)||5|
|Bengal Gram/Chick Peas||50|
|Cotton (Not Carded or Combed)||5|
Need for the Cess
There is an immediate need to improve agricultural infrastructure to produce more, while also conserving and processing agricultural output efficiently. This will ensure enhanced remuneration for our farmers.
Impact of this Cess on Common Citizen
- Overall, AIDC is not expected to affect a common citizen in any major way. The Govt. has taken up few balancing acts in this regard:
- Petrol & Diesel
- The Union Budget has imposed an Agriculture Infrastructure and Development Cess (AIDC) of Rs 2.5 per litre on petrol and Rs 4 per litre on diesel. But, these will not result in any additional burden on consumers.
- The reason for it is that unbranded petrol was earlier attracting a basic excise duty (BED) of Rs 2.98 and a special additional excise duty (SAED) of Rs 12 per litre. These have now been reduced to Rs 1.4 and Rs 11 per litre, respectively.
- Similarly, the BED on unbranded diesel has been cut from Rs 4.83 to Rs 1.8 and the SAEC on it from Rs 9 to Rs 8 per litre. So, the overall excise incidence on petrol (BED+SAEC+AIDC) will now be Rs 14.9/litre, which was previously Rs 14.98, while that on diesel is Rs 13.8 (earlier Rs 13.83).
- Alcoholic Beverages
- A similar readjustment has been made for alcoholic beverages that currently attract 150 per cent basic customs duty. That basic import duty has now been slashed to 50 per cent, even as the Budget has proposed an AIDC of 100 per cent.
- Gold & Silver Dore Bars
- Gold & Silver Dore bars (2.5%) is one of them. But customs duty has come down by 5% for Gold and Silver imports. Thus there may not be any impact on this front.
- There are other items like Apples, Crude palm oil, crude soyabean oil, peas, kabuli chana , Bengal gram etc. on which AIDC is being imposed. There is also custom duty hike in case of cotton to 10% and on raw silk and silk yarn to 15% from 10%.
PIB News National
Nuclear Energy Production & India
- There are presently 22 reactors with a total capacity of 6780 MW in operation and one reactor, KAPP-3 (700 MW) has been connected to the grid on January 10, 2021.
- In addition, there are 8 reactors (including 500 MW PFBR being implemented by BHAVINI) totaling to 6000 MW under construction at various stages.
- The Government has accorded administrative approval and financial sanction for construction of 12 nuclear power reactors - 10 indigenous 700 MW Pressurized Heavy Water Reactors (PHWRs) to be set up in fleet mode & 2 units of Light Water Reactors (LWRs) to be set up in cooperation with Russian Federation.
- On progressive completion of the projects under construction and accorded sanction, the nuclear capacity is expected to reach 22480 MW by 2031.
- The Government has also accorded ‘In-Principle’ approval for five new sites for locating nuclear power plants in future.
PIB News National
Strategic Crude Oil Reserves Facilities In India
- Indian Strategic Petroleum Reserve Limited (ISPRL), a Government of India Special Purpose Vehicle, has established Strategic Petroleum Reserves (SPR) facilities with total capacity of 5.33 Million Metric Tonnes (MMT) at 3 locations, namely (i) Vishakhapatnam, (ii) Mangaluru and (iii) Padur.
- As per the consumption pattern of 2019-20, the total capacity is estimated to provide for about 9.5 days of crude oil requirement.
- In addition, Oil Marketing Companies (OMCs) in the country have storage facilities for crude oil and petroleum products for 64.5 days, thus the current total national capacity for storage of crude oil and petroleum products currently is 74 days.
- Under Phase II of the SPR Programme, the Government has given ‘in principle’ approval in June 2018 for establishing two additional SPR facilities with total storage capacity of 6.5 MMT at two locations namely (i) Chandikhol in Odisha (4 MMT) and (ii) Padur in Karnataka (2.5 MMT).
- As per the consumption pattern of 2019-20, 6.5 MMT SPR capacity is estimated to provide for about additional 12 days of India’s crude oil requirement.