The Nandini Sahakar Yojana is a government initiative aimed at empowering women through cooperative structures. Launched by the National Cooperative Development Corporation (NCDC), this scheme focuses on providing financial assistance, project formulation, and capacity development specifically for women cooperatives.

Objectives

• Socio-Economic Empowerment: Enhance the socio-economic status of women.
• Support Entrepreneurship: Foster entrepreneurial activities among women through cooperatives.

Eligibility Criteria

The following cooperatives can apply for assistance under the scheme:

• Women Cooperative Societies: Registered under any State or Multi-State Cooperative Societies Act.
• Mixed Cooperatives: Any cooperative society with at least 50% women members at the primary level.
• Operational Requirement: Women cooperatives involved in new or innovative activities must have been in operation for at least three months.

Funding

• Loan Structure: There is no specified minimum or maximum limit for financial assistance. Loans are provided for a term of 5-8 years, which includes a moratorium period of 1-2 years on the principal repayment, depending on the project type and revenue streams.
• Financial Disbursement: Loans can be provided either directly or through State Government/UT Administration.
• Interest Subvention:
• New and Innovative Activities: 2% interest subvention on the term loan rate.
• Other Activities: 1% interest subvention on the term loan rate.

NCDC has disbursed approximately ₹6,426.36 crore for the development of women-promoted cooperatives across India.

Benefits of the Scheme

• Reduced Borrowing Costs: Financial assistance and interest subvention can lower the overall cost of borrowing.
• Capacity Building: Training and skill development programs for women cooperative members enhance their capabilities.
• Handholding Support: Continuous guidance during project implementation helps ensure successful outcomes.
• Financial Independence: The scheme promotes income generation and improves the living standards of women.
• Alignment with Government Policies: Supports the Atmanirbhar Bharat initiative by fostering self-reliance.
• Encouragement of Entrepreneurial Activities: Empowers women to engage in entrepreneurial ventures through cooperative models.
• Comprehensive Support: Provides a holistic approach by integrating inputs for business plan formulation, capacity development, credit, and subsidies.

Conclusion

The Nandini Sahakar Yojana represents a significant step toward empowering women through cooperative entrepreneurship, promoting financial independence, and enhancing their socio-economic status in society. By providing necessary resources and support, the scheme aims to create a robust framework for women cooperatives across India.

Why in the News?

Recent visits by Indian Prime Minister Narendra Modi to Singapore have highlighted the renewed focus on enhancing India’s engagement with Southeast Asia and the broader Pacific region. This year marks the 10th anniversary of India’s Act East Policy (AEP), launched in 2014.

Background: From Look East to Act East

• Look East Policy (LEP): Initiated in the early 1990s after India lost the USSR as a strategic partner, LEP aimed to strengthen ties with the US and Southeast Asian nations to counter China’s influence.
• ASEAN Engagement: India became a sectoral dialogue partner with ASEAN in 1992, progressing to a Summit-level Partner in 2002 and forging a strategic partnership in 2012.
• Act East Policy: Launched in 2014, AEP evolved from an economic focus to encompass political, strategic, and cultural dimensions.

Act East Policy in Action

• Expansion to Indo-Pacific:
• AEP broadened its strategic focus beyond ASEAN to include the entire Indo-Pacific region, highlighted by the Indo-Pacific Oceans Initiative launched in 2019.
• Strengthening Multilateral Engagement:
• India has solidified partnerships with organizations like ASEAN, BIMSTEC, and the Indian Ocean Rim Association (IORA), including the recent adoption of the BIMSTEC Charter.
• Institutional Collaboration:
• Increased cooperation with the US and allies such as Japan, Australia, and South Korea, including participation in the Indo-Pacific Economic Framework for Prosperity (IPEF).
• Defense Diplomacy:
• India has become a significant player in defense exports, with the Philippines being the first recipient of BrahMos missiles. Military logistics agreements with Vietnam enhance operational collaboration.
• Connectivity Projects:
• Initiatives like the Kaladan Multi-Modal Transit Transport Project and the Mekong-India Economic Corridor aim to improve regional connectivity.
• Socio-Cultural Outreach:
• Enhanced people-to-people ties, bolstered by a 2 million strong Indian diaspora and significant state visits, underscore India's commitment to cultural connections. Initiatives like the Forum for India-Pacific Islands Cooperation (FIPIC) and the Vaccine Maitri initiative highlight India’s developmental outreach.

Key Challenges to Act East Policy

• Delay in Infrastructure Development:
• Projects like the Kaladan Multi-Modal Project have faced significant delays, causing costs to escalate dramatically—from ₹536 crore in 2008 to ₹3,200 crore now.
• Political Turmoil in Bangladesh:
• Recent political instability in Bangladesh raises uncertainties for India-Bangladesh connectivity projects, potentially hampering regional cooperation.
• Influx of Refugees:
• The influx of refugees into India’s northeast has destabilized borders and led to ethnic conflicts, such as the unrest in Manipur, complicating India's domestic security landscape.
• China's Expanding Influence:
• China's growing presence in the Indian Ocean, particularly through initiatives like the Belt and Road Initiative, threatens India's strategic maritime trade routes, including access to ports like Mongla in Bangladesh.
• Competing with China:
• China's substantial economic and political clout in East Asia poses challenges for India. For instance, trade between China and ASEAN reached approximately USD 911.7 billion in 2023, overshadowing India's efforts.
• Widening Trade Deficit with ASEAN:
• India's trade deficit with ASEAN has grown from USD 7.5 billion in 2011 to around USD 44 billion in 2023, indicating a need for more balanced trade relations.

Way Forward

• Trade Negotiations:
• Prioritize renegotiation of the ASEAN Trade in Goods Agreement (ATIGA) to address the trade deficit and enhance market access for Indian goods.
• Infrastructure Completion:
• Focus on completing pending infrastructure projects to improve connectivity and trade routes, ensuring timely execution and budget management.
• Enhanced Security Cooperation:
• Strengthen maritime security collaboration in the Indian Ocean and South China Sea to safeguard strategic interests and counter potential threats.
• Cultural Diplomacy:
• Leverage shared cultural heritage, especially with Buddhist-majority nations, to enhance people-to-people ties and foster goodwill.
• Multilateral Engagement:
• Build stronger partnerships with regional powers like Japan, Australia, and Taiwan to create a more resilient and diversified diplomatic network in East Asia.

India's renewable energy (RE) sector has been making significant progress in recent years, as highlighted by a 165% growth in capacity over the last decade. Renewable energy, which comes from naturally replenishing sources like solar, wind, geothermal, and hydro power, is a key element in India's energy transition. Here's a breakdown of the current status and challenges:

Current Status of Renewable Energy in India:

• Installed Capacity: RE now represents 43.12% of India's total installed power generation capacity, ranking the country 4th globally.
• Wind Power: 46.65 GW (4th globally)
• Solar Power: 85.47 GW (5th globally)
• Other RE sources: Large hydro (46.93 GW), Biopower (10.95 GW), Small hydro (5.00 GW), Waste to Energy (0.60 GW)
• First time crossing 200 GW: India's non-fossil fuel capacity crossed 200 GW, showcasing a significant shift towards greener energy sources.
• Targets: India aims to have 500 GW of non-fossil fuel energy capacity by 2030 and plans to meet at least 50% of its energy needs from RE by then.

Challenges Facing the RE Sector:

• High Costs: Renewable energy generation remains more expensive due to the high material and installation costs, as well as the diffuse nature of RE requiring large-scale infrastructure.
• Land Acquisition: Finding land suitable for RE projects and getting the necessary clearances can be slow and complex.
• Poor DISCOM Performance: Power Distribution Companies (DISCOMs) are often bound by long-term contracts with fossil-fuel-based power providers, limiting their ability to procure renewable energy.
• Energy Storage: The intermittent nature of RE sources, such as solar and wind, creates challenges for grid stability and storage.
• Environmental Impact: Wind turbines, for instance, can pose risks to wildlife, and large amounts of water are required for hydrogen production.

Key Initiatives:

• Foreign Direct Investment (FDI): India allows 100% FDI under the automatic route for RE generation, encouraging international investment.
• PM Surya Ghar: Muft Bijli Yojana: A large-scale rooftop solar initiative aimed at one crore households with a financial outlay of ₹75,021 crore.
• Green Energy Corridor: This project facilitates the integration of renewable energy into the grid, helping to transport clean energy across the country.
• Solar Parks Scheme: Supports developers by providing ready infrastructure and necessary clearances for solar power generation.
• National Green Hydrogen Mission: Launched in 2023, this initiative targets 5 million metric tonnes of annual green hydrogen production by 2030.

The significance of renewable energy (RE) lies in its broad benefits across environmental, economic, and social dimensions, particularly as countries like India aim for sustainability and energy security. Here are key reasons why renewable energy is crucial:

1. Environmental Benefits:

• Reduces Greenhouse Gas Emissions: Unlike fossil fuels, renewable energy sources such as solar, wind, and hydropower generate little to no greenhouse gases. This helps combat climate change and global warming.
• Lowers Air Pollution: Renewable energy reduces harmful emissions, such as sulfur dioxide and nitrogen oxides, improving air quality and reducing respiratory diseases.
• Conserves Natural Resources: Unlike coal, oil, and natural gas, renewable energy is derived from inexhaustible sources, helping preserve finite fossil fuel reserves for future generations.

2. Energy Security and Independence:

• Reduces Dependence on Fossil Fuels: Countries that invest in RE reduce their reliance on imported fossil fuels, enhancing national energy security. In India’s case, this reduces its vulnerability to global energy price fluctuations.
• Decentralized Energy Production: RE technologies, such as rooftop solar panels, enable localized energy generation, reducing strain on the centralized grid and lowering transmission losses.

3. Economic Growth and Job Creation:

• Boosts Economic Development: The renewable energy sector attracts substantial investments and creates new industries, contributing to economic growth.
• Job Creation: The renewable energy sector is labor-intensive compared to fossil fuel industries. Solar and wind power projects, for instance, create jobs in manufacturing, installation, and maintenance. In India, initiatives like rooftop solar can generate numerous employment opportunities.

4. Energy Access for All:

• Brings Electricity to Remote Areas: Renewable energy, especially solar, provides off-grid solutions to rural and remote regions that are hard to connect to conventional electricity grids. This is essential for countries like India, where large populations still lack reliable access to electricity.
• Promotes Energy Equity: Renewables make clean energy more accessible to a broader population, offering cheaper and more sustainable energy sources over time.

5. Mitigates Energy Price Volatility:

• Stable Energy Prices: Unlike fossil fuel prices, which are subject to market fluctuations, renewable energy costs are more stable since they rely on free natural resources like sunlight and wind. This can lead to lower and more predictable energy costs for consumers.

6. Supports International Climate Commitments:

• Achieving Climate Goals: Increasing the share of renewable energy is crucial for countries like India to meet international climate commitments, such as the Paris Agreement. It helps in reducing carbon emissions and mitigating climate change.
• Green Hydrogen for Decarbonization: The development of green hydrogen through RE sources can aid the decarbonization of hard-to-abate sectors such as heavy industries and transportation.

7. Long-Term Sustainability:

• Future-Proof Energy System: Renewable energy is a cornerstone of building sustainable energy systems that can endure indefinitely. This ensures that future generations have access to clean and reliable energy without depleting natural resources or causing environmental harm.

To address the challenges facing India's renewable energy (RE) sector and achieve its ambitious targets, the following strategies can be implemented as a way forward:

1. Increase Energy Storage Capacity:

• Energy Storage Systems: Technologies such as pump-storage hydroelectricity and battery storage can store excess energy generated from RE sources. This stored energy can then be used during periods of low generation or peak demand.
• Benefits: These systems reduce the variability in RE generation, enhance grid stability, and enable energy shifting, ensuring consistent power supply from intermittent sources like wind and solar.

2. Centre-State Coordination:

• Land Identification: Collaboration between the central and state governments is essential for identifying exclusive land for RE projects, such as designated RE zones. Clear land policies and swift approvals can expedite project implementation.
• 'Must Run' Status: States should ensure that renewable power plants, which have 'must run' status, are prioritized in the grid under all circumstances. This helps reduce curtailment of renewable power and encourages higher utilization of RE capacity.

3. Financing Innovations:

• Streamlining Contracting: Simplifying and standardizing contracts in the RE sector can lower transaction costs and improve investor confidence. Expanding the use of green bonds can also attract investments by providing a dedicated funding mechanism for clean energy projects.
• Improving Information Availability: Transparency in project opportunities, risks, and returns can further stimulate private sector participation.

4. Upgrade Grid Technology:

• Real-Time Grid Visibility: System operators at the state, regional, and national levels should have visibility into the status of neighboring grids to coordinate power flows and ensure efficient grid management.
• Centralized RE Forecasting: Integrating RE forecasting with system operations can help manage the intermittent nature of renewable energy more effectively, improving demand-supply matching and grid stability.

5. Optimize Land Use:

• Wasteland and Rooftop Solar: Encouraging the use of wasteland, marginal land, and rooftops for solar projects can help avoid conflicts with agricultural and forest lands. This strategy ensures that renewable energy projects do not compromise the availability of productive land for other essential activities like farming

• Overview: The Ministry of New and Renewable Energy has issued guidelines for the Model Solar Village component under the PM-Surya Ghar: Muft Bijli Yojana, approved in February 2024. This initiative aims to enhance solar rooftop capacity and empower residential households to generate their own electricity.
• Financial Commitment: The overall scheme has an outlay of ₹75,021 crore, with the Model Solar Village component allocated ₹800 crore, providing ₹1 crore for each selected village.
• Objective: The initiative focuses on establishing one model solar village per district across India, promoting the adoption of solar energy and enabling village communities to achieve energy self-reliance.
• Selection Criteria:
• Villages must be revenue villages with a population exceeding 5,000 (or 2,000 for special category states).
• The selection process is competitive, with villages assessed based on their distributed renewable energy (RE) capacity installed six months after being declared potential candidates by the district-level committee (DLC).

• Incentives: The village in each district with the highest RE capacity will receive a central financial assistance grant of ₹1 crore.
• Implementation: The State/UT Renewable Energy Development Agency will oversee the execution of the scheme, supported by the District Level Committee (DLC) to ensure effective transition to solar-powered communities.

This initiative is a significant step towards promoting renewable energy, enhancing community participation, and fostering sustainable energy practices in rural areas of India.