Budget 2021-22: Government increases allocation to fisheries sector by 34 percent

Livelihoods: The fisheries sector in India provides livelihood to more than 2.8 crore people in the country. However, according to the Economic Survey of India 2019-20, only 58 percent of the country’s inland potential has been tapped so far.

In 2019-20, with an overall production of 142 lakh tons, India produced eight percent of the global share. During the same time period, India’s fisheries exports stood at INR 46,662 crore, constituting about 18 percent of India’s agricultural exports. Despite challenges, the fisheries sector has continued to register an annual growth rate of more than 10 percent.

Signaling the importance of the sector to the country’s economy, the government increased the budget for fisheries by 34 percent in this year’s Union Budget. It also launched the Pradhan Mantri Matsya Sampada Yojana (PMMSY) with an investment of over INR 20,000 crore for five years towards the sector’s development. It envisions leveraging an investment of more than INR 50,000 crore in the next five years for the sector, and expects these funds to come from states, beneficiaries, and financial institutions.

The government also made three key announcements:

• The development of five major fishing harbours in Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat. This includes building world-class infrastructure and amenities that will also help reduce post-harvest losses. Modernised harbours are expected to increase the country’s export potential by 10-15 percent and help create around 50,000 direct and indirect jobs.
• The development of inland fishing harbours and fish landing centres. The first-ever government support for such an activity, this is expected to benefit traditional inland fishermen dependent on fishing in the Ganga and Brahmaputra rivers for their livelihood.
• The establishment of a unique multipurpose seaweed park in Tamil Nadu, which will become a production centre for quality seaweed-based products, and provide scope for engaging women from villages.

Read this article to know more about how COVID-19 has affected the fisheries sector in India.

Fundraising & Communications: The Ministry of Home Affairs (MHA) has issued a circular extending the validity of FCRA registration certificates to September 30th, 2021. This applies to all FCRA licences that have expired or will expire between September 29th, 2020 and May 31st, 2021. The decision to extend the deadline has been driven by the exigencies arising from the COVID-19 situation.

FCRA refers to the Foreign Contribution (Regulation) Act 2010, which permits charitable organisations based in India to raise funds from foreign sources.

The order also clarified that nonprofits that have already opened an account and have the requisite permission to receive foreign aid, can henceforth receive it only in these newly-opened accounts.

The FCRA law was amended in September 2020 to include a clause that mandated that all nonprofits receiving foreign aid must necessarily open an account in State Bank of India’s New Delhi Main Branch. The government had initially set the deadline for this account opening as March 31st, 2021; it later extended it to June 30th, 2021 after several nonprofits argued in court that there had been delays because necessary approvals from MHA had not been received.

Several organisations have not been able to receive foreign funds during the crisis caused by the second wave, and this has impacted their COVID-19 relief efforts. Relaxing the foreign funding rules could significantly help organisations ramp up their operations to help individuals, supply critical healthcare equipment, and respond to communities in rural areas.

Read this article to know how amending the FCRA can have unforeseen implications.

Philanthropy & CSR: The Ministry of Corporate Affairs (MCA) has issued a circular that allows corporate spending on health infrastructure for COVID-19 care to qualify as corporate social responsibility (CSR) expenditure.

This includes setting up medical oxygen generation and storage plants, manufacturing and supply of oxygen concentrators, ventilators, cylinders, and other medical equipment to counter COVID-19.  

The announcement comes at a time when all efforts are being directed towards expediting efforts to support the country’s healthcare infrastructure.

According to the circular, companies can now undertake projects and activities in collaboration with other companies using CSR funds. Additionally, they can contribute to specified research and development projects, as well as publicly funded universities and certain organisations that conduct research in science, technology, engineering, and medicine.

The government had earlier clarified that setting up makeshift hospitals and temporary COVID-19 care facilities would also be considered a CSR activity. Rajesh Verma, the Corporate Affairs Secretary, has requested businesses to consider converting vacant office buildings into COVID-19 facilities to cater to the rapidly increasing caseload.

Read this article to understand why media attention on COVID-19 deaths due to lack of oxygen in big cities has skewed donor priorities.