Govt. Scheme Evaluation - Wazir Advisors

Strategy > Textile and Apparel > Govt. Scheme Evaluation

Evaluation of Existing Pricing Mechanism of Jute Bag as per Tariff Commission Methodology

Background

Tariff Commission published the pricing mechanism of jute bags in 2001, which they wanted to revise. Indian Jute Mills Association (IJMA) had made several representations to concerned authorities regarding their views on the pricing mechanism. But to get the pricing mechanism evaluated by a third party agency, they engaged Wazir as an independent consultant.

Project Objectives:

The objectives of this project were as following:

Review of the existing pricing mechanism of jute bags as per Tariff Commission methodology etc.
Analysis of the present jute industry for collecting data and information, which were required for developing pricing mechanism of jute bags
Recommending a logical pricing mechanism of jute bags in the present scenario

Wazir followed the work steps mentioned below for the successful completion of the project:

Collection of relevant reports and communications from IJMA
Analysis of the pricing mechanism as prescribed by Tariff Commission
Understanding of the views of IJMA in relation to this pricing mechanism
Identification of required data and information from jute industry
Primary research with jute industry and IJMA to collect required data and information
Secondary research on existing pricing mechanism of other relevant products and preparation of case studies
Analysis of the data and information collected in above two steps
Evaluation of the Terms of Reference document issued by Ministry of Textiles to Jute Commissioner for tariff structure determination

Deliverables:

We submitted the evaluation report of the existing pricing mechanism of jute bags as prescribed by the Tariff Commission including:
1. Pricing structure
2. Price determination methodology
3. Revisions proposed at different stages
4. Appropriateness of all basic parameters and assumptions used as input and its relevance in today’s context
5. Requirement of additional inputs (if any)
Recommended a suitable pricing mechanism of the jute bags

Review of the Scheme on Integrated Textile Parks (SITP)

Background

The Scheme for Integrated Textile Parks (SITP) was launched in 2005 to provide the industry with state of the art world-class infrastructure facilities for setting up their textile units. Ministry of Textiles wanted to review this SCHEMA on Integrated Textile Parks (SITP) with a view to gauge the impact on production, employment and success in intended objective of clusterization.

Project Objectives:

The key objectives of the assignment were:

To study the impact of SITP scheme on following aspects:
1. Production in different segments across the value chain
2. Reduction in delay in supply chain and cost of production
3. Employment generation
4. Quality management and environmental compliance
5. Improvement in working conditions and wages of workers
6. Market share of parks in domestic and international market
To assess the success of scheme in fulfilling following objectives:
1. Intended clusterization
2. Attracting investments and bringing scale in the industry
3. Skill development initiatives
4. Meeting critical infrastructure gaps
To analyze the critical gaps in scheme design and its impact on long term sustainability of the project
To study relevant aspects of the SITP scheme and analyze why fund utilization under the scheme has not been satisfactory
To draft a concept of Mega Textile parks and explore scope in India for policy interventions by MoT

Deliverables:

Following were the key deliverables of the project:

To develop a model for ‘Mega Textile Parks’ with particular focus on condition for their success, sustainability and scope in India and for policy interventions by Ministry of Textiles for promoting Mega Textile Parks in India
To develop a consolidated report providing recommendations for better implementation and utilization of SITP

Evaluation of RTUFS & RRTUFS

Background

Ministry of Textiles, Government of India had launched Technology Upgradation Fund Scheme (TUFS) in 1999 to catalyze investments in technology upgradation in the textile and jute industry. In order to assess the impact of RTUFS and RRTUFS, the Office of the Textile Commissioner engaged Wazir for undertaking the evaluation study of these schemes.

Project Objectives:

The objective of this assignment was to analyze the impact of RTUFS and RRTUFS on the following:

Textile and Jute manufacturers in terms of technology, R&D, value addition and trade, impediments in accessing the schemes, balanced development across value chain, and segment-specific additional incentives
Banks / Lending Agencies covering mechanism for release of interest reimbursement / capital subsidy, repayment of loans and extent of defaults and vigilance mechanism

Deliverables:

Submitted study report covering:

Segment-wise analysis of investment made in the textiles and jute sector under RTUFS & RRTUFS
Evaluation of total investment and investment utilised under RTUFS & RRTUFS
Evaluation of impact of RTUFS & RRTUFS on:
1. Productivity
2. Costs and wastage reduction
3. Quality improvement
4. Unit value realization improvement
5. Domestic and export turnover increase in different segments
Recommendations were provided to the government on the following:
1. Continuation and extension of RRTUFS in 13th Five Year Plan
2. Continuation of scheme support for 2nd hand machinery
3. Expedite the process of releasing interest reimbursement / capital subsidy
4. Increasing investments under RRTUFS
5. Modifications in the existing policy to improve its effectiveness
6. Requirement of 3rd party concurrent evaluation
7. Methodology for data transparency regarding subsidy claims and disbursements