Showing posts with label ITC. Show all posts
Showing posts with label ITC. Show all posts

Saturday, November 11, 2017

Food for Children: PMO overrules two Union Ministries

by Harish Gupta, National Editor, Lokmat Group



Special Report 


Food for Children: PMO overrules two Union Ministries
States can give packaged food 
Shot in the arm of packaged food industry 

Harish Gupta
New Delhi, Nov 9
The running battle between some of the Central ministries and the states for years on whether the children be given cooked or packaged food has been resolved by the Prime Minister's Office (PMO).

While the Ministries of Health and Women & Child Development ministries have been strongly advocating the need for giving cooked food to children falling in the severely acute malnutrition category. However, many states including Maharashtra were pitching for ready-to-use food for them.

After prolonged discussions with the states, expert committee reports and obtaining the views of the concerned ministries, the Prime Minister's Office mandated that states be allowed to decide their own policy in this respect. If the states want to give packaged food, so be it. The decision of the PMO has come as a big shot in the arm for the packaged food industry. Some say it will be a big incentive to the big players in the market such as Patanjali Foods, ITC and others.

In fact, the PMO overruled directives of the two concerned union ministries who were against providing ready-to-use food to children. The PMO said that individual states be allowed to formulate their own policy to give nutritious food to children. The PMO, however, clearly stated that the Integrated Child Development Services (ICDS) where hot-cooked food is served to children in the age group of 3-6 years will continue unhindered. The scheme to provide food to children in the age group of upto three years will remain unchanged. But the states will have the discretion to give ready-to-use food to children above the age of 6 years.

The tussle began when the WCD Ministry headed by Maneka Gandhi issued a directive to states that the ready-to-use food is against the stated policy. Therefore, the matter went to the PMO where it was resolved. Even the health ministry was of the opinion that the nutritious food quality is better in the hot cooked food rather than in the Ready-To-Use Food packets. In fact, the ministry had set up an expert committee. However, the states contested the claim and wanted their own way to implement the scheme which is centrally funded scheme with Centre footing the 50% of funds to states. The Health Ministry had, in fact, stressed as early as in 2009 that the use of RUTF was not an accepted policy of the government. And in 2013, the centre had asked Jharkhand to stop distributing RUTF to malnourished kids. However, the inter-ministerial group also spoke in two languages when it said that the Packaged food was helpful only temporarily and would not affect eating habits of the family. The WCD letter also pointed to concerns that the use of RUTF may replace family foods habits that children should normally be eating.

Wednesday, March 8, 2017

Strategic sale of AI, ITDC on cards

by Harish Gupta, National Editor, Lokmat Group

Strategic sale of AI, ITDC on cards

22 sick PSUs to be shut down

AI failed to revive itself even after a ballout package of  Rs.20,000 crores.
PSUs suffer One lakh crores annual loss


Harish Gupta

New Delhi, Feb 28

The Modi government has served an ultimatum to country’s 45 loss-making Public Sector Undertakings including Air India, India Tourism Development Corporation (ITDC) etc to perform or perish.

Highly placed sources in the Prime Minister’s Office and NITI Aayog say that the PM is determined to cut down Rs one lakh crores annual losses incurred by these PSUs year after year and there is no accountability.

One of the proposals gathering pace is to find a strategic partner for Air India. The PM felt at a recent review meeting with AI Chairman Ashwani Lohani that the flagship airlines failed to revive itself even after a bailout package of Rs 20000 crores. Modi made it clear that the government would not waste tax payers money anymore and gave three more months to him to tone up.

Similarly, the NITI Aayog came to the conclusion that the government should not have any business to be in the hotel business and barring the Ashok in the Lutyen’s Delhi, the government should exit them.

failed to turn around the loss making national carrier, people with knowledge of the matter said.
It now transpires that several presentations have been made to the finance ministry and the PMO by experts and stake holders in the recent past.

The NITI Aayog, tasked with preparing a roadmap for ailing PSUs, had submitted a list of 74 companies, had suggested the closure of 26 companies. With regard to remaining 54, the Aayog suggested status quo in case of two PSUs, strategic disinvestment of 10, revival with option for strategic disinvestment for 22, transfer of ownership of six, merger of three and long term lease of five.

Finally, the government has decided to shut down 15 loss-making public sector units, of which at least five have been cleared by the cabinet, while opting to go against internal advice and revive three state-run companies.


The Centre also has to meet its disinvestment target of Rs 56,500 crore. On the list are large state-run companies such as Container Corporation of India, Bharat Earthmovers, as many as three plants of the Steel Authority of India and unlisted entities like Cement Corporation of India. The government has also exited from stocks held by SUUTI in some of the private sector companies like ITC, L&T and others. SUUTI is an arm of the central government which held stocks running into thousands of crores.