Modi might announce social sector initiatives in I-Day speech

Initiatives possible on crop insurance, skilling

Prime Minister Narendra Modi in his second Independence Day speech from Red Fort could announce new or improved versions of existing social sector schemes.

These might include a new crop insurance scheme for farmers, lowering the mandatory age limit for widow pensions from the current 40 years to 18 years, and a scheme to attract rural youth towards productive activities. Formal approval from the Cabinet is expected next week.

Officials said in the new crop insurance scheme, the mandatory premium could be lowered to 1.5-3.5 per cent of the sum insured, significantly lower than what is charged now. It will be an improved version of the existing National Agriculture Insurance Scheme (NAIS) and will also charge a premium rate on an actuarial basis.

In all the other crop insurance schemes, the farmer's share of premium is higher, a deterrent to acceptability.

"In the existing NAIS, premium is charged at the market rate; for some crops, the farmers burden is as high as 10 per cent of the sum insured," a senior official said.

He added the new scheme would lower this and the government subsidy would increase. A village or block would continue to remain a unit for measurement of the insurance claim.

A big difference between previous crop insurance schemes is that for individual farmer premiums for all other insurance products - such as life insurance, Jan-Dhan, personal accident insurance, student insurance, etc -- would be covered by the same premium.

However, this will be available only if the insurance products are provided by government-run agencies.

"In other words, premium for other insurance products will be dovetailed with the crop insurance premium, so that a farmer makes a one-time payment and the entire value chain is covered," the official explained.

Officials said a new scheme to attract rural youth could be announced, with the aim of ensuring at least one youth from a village got exposure.

"We have sent various proposals to the Prime Minister's Office for inclusion in the Independence Day speech and are hopeful that some would be accepted," a senior official from the rural development ministry said.