Current Affairs -2021
CURRENT AFFAIRS PART - II
Contents ECONOMY IL & FS crisis ...... 8 Insolvency & Bankrupcy code ...... 10 Long term Repo Operations ...... 13 EBLR ...... 16 Regulatory Sandbox ...... 17 Off Budget Borrowings ...... 19 Recapitalisation for RRB‘s ...... 22 RBI‘s COVID-19 Economic Relief Package ...... 24 Companies Fresh Start Scheme 2020 ...... 25 Counter cyclical capital buffer (CCyB) for banks ...... 26 MONEY ...... 28 EUROZONE CORONA BOND ...... 28 RBI SETS UP WING FOR BANKING FRAUD OVERSIGHT ...... 29 Ways and Means Advances (WMA) ...... 30 Emergency Credit Line Guarantee Scheme (ECLGS), Prime Minister‘s Employment Generation Programme (PMEGP) and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)...... 31 Rights issue ...... 34 RBI‘S DEBT RESOLUTION NORMS ...... 35 Reserve Bank of India (RBI) has proposed stringent norms for housing finance companies ...... 36 Adjusted Gross Revenue(AGR) issue ...... 38 IBC ORDINANCE ...... 39 Urban, multi-State cooperative banks to come under RBI supervision ...... 40 What are pre-packs under the present insolvency regime? ...... 42 What is this Currency Swap Arrangement (CSA)? ...... 43 National Financial Reporting Authority (NFRA)...... 44 Bilateral Trade and Investment Agreement (BTIA) ...... 45 Equalisation levy on foreign e-com firms...... 46 Financial and technological commitments under UNFCCC and Paris agreement...... 48 1 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
Special Liquidity Scheme for NBFCs and HFCs...... 50 non-banking financial companies- microfinance institutions (NBFC-MFIs) ...... 52 RBI Data Localisation Norms ...... 53 India, asean to expand trade despite rcep walkout...... 55 Fifteenth Finance Commission ...... 57 Govt. Rolls out Rs.1.19 lakh crore stimulus ...... 59 Production-Linked Incentive (PLI) Scheme ...... 60 What is the production linked incentive scheme for electronics manufacturers? ...... 61 Generalized System of Preferences (GSP) Trade Privilege ...... 62 Advisory Committee on Administrative and Budgetary Questions (ACABQ)...... 65 Beware of illegal digital lending apps: RBI ...... 65 Government exploring setting up bad bank, all other options ...... 66 Economy firmly on the path of a V-shaped recovery, says govt ...... 67 Businesses with monthly turnover of over ₹50 lakh to pay at least 1% GST liability in cash...... 69 What are Zero coupon bonds? ...... 70 What is asset under management (aum)? ...... 70 1.5-times formula for crops‘ MSP ...... 71 Financial Action Task Force (FATF) ...... 72 Limited liability partnership ...... 73 Balance Sheet of a Bad bank...... 74 RBI formed a working group on digital lending ...... 75 National infrastructure pipeline...... 76 Economic Impact due to Internet shutdowns over double of 20 others...... 76 Faceless tax scheme...... 78
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GOVERNMENT SCHEMES Garib Kalyan Rojgar Abhiyaan ...... 80 SWADES initiative ...... 80 Vande Bharat mission ...... 80 Pradhan Mantri Vaya Vandana Yojana ...... 81 PM SVANidhi scheme portal ...... 81 SATYABHAMA Portal ...... 82 NGO-DARPAN ...... 82 PM Garib Kalyan Anna Yojana ...... 82 Pradhan Mantri Matsya Sampada Yojana (PMMSY) ...... 83 E-Gopala App ...... 83 Aatmanirbhar Bharat ARISE-Atal New India Challenge ...... 83 Atal Innovation Mission (AIM) ...... 84 Emergency Credit Line Guarantee Scheme (ECLGS) ...... 84 Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME) Scheme ...... 84 National Beekeeping & Honey Mission (NBHM) ...... 85 PM AtmaNirbhar Swasth Bharat Yojana ...... 85 Atmanirbhar Bharat Rojgar Yojana ...... 85 Sahakar Pragya ...... 86 Sahakar Mitra Scheme ...... 86 Jal Jeevan Mission (JJM) ...... 87 Mobile Application for Geo Tagging launched by Ministry of Jal Shakti ...... 87 Pilot Pey Jal Survekshan launched...... 88 Jal Jeevan Mission Urban ...... 88 Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) ...... 88 Atal Bhujal Yojana (Atal Jal) ...... 89 India Water Impact Summit ...... 89 GOBAR-DHAN Portal ...... 89 Namami Gange...... 90 Khelo India State Centres of Excellence (KISCE) ...... 90 Khelo India programme ...... 90 Smart Cities Mission ...... 90 Atal Mission for Rejuvenation and Urban Transformation (AMRUT) ...... 91
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Streets for People Challenge ...... 91 TULIP Portal ...... 91 City Innovation Exchange (CiX) platform ...... 92 India Urban Data Exchange ...... 92 Swadesh Darshan Scheme ...... 92 Ayushman Bharat ...... 93 e-Sanjeevani platform ...... 93 National Digital Health Mission ...... 93 SEHAT Scheme ...... 94 ‗Nasha Mukt Bharat‘ ...... 94 Pradhan Mantri Bhartiya Janaushdhi Pariyojna (PMBJP) ...... 95 Jan Aushadhi Suvidha ...... 95 Shishu loan ...... 95 Healthy and Energy Efficient Buildings initiative ...... 96 iCommit About: ...... 96 RAISE Initiative ...... 96 One Sun One World One Grid initiative ...... 97 ‗Responsible Artificial Intelligence (AI) for Youth‘ program ...... 97 National Career Service Project ...... 97 Godhan Nyay Yojana ...... 98 Affordable Rental Housing Complexes (ARHCs) scheme...... 98 Study in India - Stay in India scheme to come up ...... 98 Krishi Megh (National Agricultural Research & Education System -Cloud Infrastructure and Services) ...... 99 PM-CARE ...... 100 Kiran: Mental Health Rehabilitation Helpline launched ...... 100 Manodarpan Initiative ...... 100 Atal Bimit Vyakti Kalyan Yojana ...... 101 Pradhan Mantri Kisan Sampada Yojana (PMKSY) ...... 101 Five Star Villages Scheme launched ...... 102 Biotech-KISAN Programme ...... 102 Samarth Scheme for Textile Sector ...... 103 YuWaah Platform ...... 103
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Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) ...... 104 KRITAGYA hackathon planned for enhancing farm mechanization ...... 104 Initiatives for Farmers launched ...... 104 EPFO‘s New Facility on UMANG App started ...... 105 SVAMITVA scheme ...... 105 Tech for Tribals initiative ...... 106 Pradhan Mantri Street Vendor‘s Van Dhan Yojana ...... 106 Trifood ...... 107 Kamdhenu Deepawali Abhiyan ...... 107 Bharatmala Pariyojana ...... 107 'STARS' Project ...... 108 Deendayal Antyodaya Yojana- National Rural Livelihood Mission (DAY-NRLM) ...... 109 Start-Up Village Entrepreneurship Programme (SVEP) ...... 109 Ghar Tak Fibre Scheme ...... 109 Kisan Suryodaya Yojana ...... 110 Indira Rasoi Yojana ...... 110 Pre-Matric Scholarship Scheme ...... 110 Modifications in Pre and Post Matric Scholarship Schemes ...... 111 Pradhan Mantri Fasal Bima Yojana (PMFBY) ...... 111 Kisan Credit Card (KCC) scheme ...... 112 Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) ...... 112 One Nation One Ration Card (ONORC) scheme ...... 113 Mahatma Gandhi National Fellowship (MGNF) ...... 113 Rashtriya Yuva Sashaktikaran Karyakram ...... 114 Neera ...... 114 Kumhar Sashaktikaran Yojana (KSY) ...... 115 Gramodyog Vikas Yojana ...... 115 Bhartiya Poshan Krishi Kosh (B.P.K.K.) ...... 115 e-CHARAK ...... 116 PARAMARSH Scheme ...... 116 Pradhan Mantri Karam Yogi Maandhan Scheme (PMKYMS): ...... 116 Kisan Urja Suraksha Evam Utthaan Mahabhiyan (KUSUM) Scheme ...... 116 SANKALP Project- Skills Acquisition and Knowledge Awareness for Livelihood Promotion ...... 117 5 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
Pradhan Mantri Kaushal Vikas Yojana 3.0 ...... 117 Surakshit Matritva Aashwasan Initiative (SUMAN) ...... 118 Pradhan Mantri Matru Vandana Yojana(PMMVY) ...... 118 Mission Parivar Vikas (MPV) ...... 118 Swajal Scheme ...... 119 Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) ...... 119 e-NAM ...... 119 Swamitva Scheme ...... 120 MAA- ―Mother‘s Absolute Affection‖ programme ...... 120 Atal Pension Yojana (APY) ...... 120 National Bio-pharma Mission ...... 121 Tribal Health and Nutrition Portal ‗Swasthya‘ ...... 121 Operation Greens ...... 122 Navigating the New Normal ...... 122 SPARC Initiative ...... 122 Accelerate Vigyan ...... 122 Vriksharopan Abhiyan ...... 123 Mission Karmayogi ...... 123 Shikshak Parv ...... 124 SERB-POWER ...... 124 National Monsoon Mission ...... 125 SAGAR – II ...... 125 Propel India ...... 125 Garima Greh ...... 126 ASHA-India ...... 126 Shramshakthi Portal ...... 126 FIST Scheme ...... 126 SAKSHAM ...... 127 MITRA Scheme ...... 127 Pradhan Mantri Urja Ganga Project ...... 127 NIKSHAY Portal ...... 127 NIKSHAY Poshan Yojana ...... 128 Intensified Mission Indradhanush ...... 128 6 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
e- Chhawani Portal...... 128 E-Daakhil Portal ...... 129 Vigyan Jyoti Programme ...... 129 Scheme of Fund for Regeneration of Traditional Industries (SFURTI) ...... 129 Smart Code Platform ...... 130 SATAT Scheme ...... 130 Nagar Van Scheme ...... 130 PMGKY- Ujjwala ...... 131 Namath Basai Scheme ...... 131 Naya Savera Scheme ...... 131 National Bamboo Mission ...... 131 ADIP Scheme ...... 132 Kala Sanskriti Vikas Yojana ...... 133 PM‘s Special Scholarship Scheme ...... 133 VISVAS Scheme ...... 133 PM WANI Scheme ...... 134
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ECONOMY
IL & FS CRISIS What is IL & FS? Infrastructure Leasing & Financial Services (IL&FS) is a non-banking financial company (NBFC), or 'shadow bank'. Established over 30 years ago, the conglomerate funds infrastructure projects across India. Some of the projects it has helped develop are 9-km Chenani-Nashri tunnel (India‘s longest road tunnel), Delhi-Noida Toll Bridge, Ranchi-Patratu Dam Road, Baleshwar-Kharagpur Expressway, Tripura Power Project, and Gujarat International Finance Tech-City (GIFT). Among IL&FS shareholders are LIC, SBI, Japan's Orix Corporation, HDFC and CBI. The subsidiaries of IL&FS include transportation network subsidiary IL&FS Transportation Networks Ltd (ITNL), engineering and procurement company IL&FS Engineering and Construction Co Ltd and financier IL&FS Financial Services Ltd. What went wrong for IL & FS? IL&FS Financial Services fell short of cash and defaulted on several of its obligations. Even as new infrastructure projects dried up, IL&FS' running construction projects faced cost overruns amid delays in land acquisition and approvals. It defaulted on repayment of bank loans (including interest), term and short-term deposits and also failed to meet commercial paper redemption obligations. It reported that it had received notices for delays and defaults in servicing some of the inter- corporate deposits accepted by it. Following the defaults, rating agency ICRA downgraded the ratings of its short-term and long-term borrowing programmes. The defaults also jeopardised hundreds of investors, banks and mutual funds associated with IL&FS, and sparked panic among equity investors, even as several non-banking financial companies faced turmoil amid a default scare. IL&FS's new board In October 2018, the government constituted a new board as the old one was deemed to have failed to discharge its duties. Kotak Mahindra Bank Executive Vice-Chairman and Managing Director Uday Kotak, Tech Mahindra Vice-Chairman, Managing Director and CEO Vineet Nayyar, former Sebi chief G N Bajpai, former ICICI Bank chairman G C Chaturvedi, former IAS officers Malini Shankar and Nand Kishore were made members of the board. In the first few weeks of taking over, the board appointed its nominees on key subsidiaries, initiated austerity measures, began a full audit of standalone and consolidated accounts, formed a core operating committee under Nayyar and started to work towards a resolution plan.
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The board, thereafter, appointed Arpwood Capital and J M Financial as financial as transaction advisors. It also roped in Alvarez & Marsal to maintain strict liquidity controls, manage stakeholders and help develop a resolution plan. Investigation in the IL&FS case Serious Fraud Investigation Office (SFIO) started a probe as there were huge procedural lapses at the What is difference between NBFC. banks & NBFCs? The initial SFIO probe also revealed that there were NBFCs lend and make major lapses in Deloitte's audit of the IL&FS. SFIO investments and hence their investigation found it guilty of painting a rosy picture activities are akin to that of of IFIN despite being aware of the poor financial health banks; however there are a of the company, triggering the ministry to seek a ban few differences as given below: on the auditors. . NBFC cannot accept demand The Enforcement Directorate (ED) filed its first deposits; charge sheet in the so-called IL&FS money laundering . NBFCs do not form part of the case. payment and settlement The prosecution complaint was filed in a special court system and cannot issue of the Prevention of Money Laundering Act (PMLA), cheques drawn on itself; charging former senior management personnel of . deposit insurance facility of IL&FS — Ravi Parthasarathy, Ramesh Bawa, Hari Deposit Insurance and Credit Sankaran, Arun Saha, and Ramchand Karunakaran Guarantee Corporation is not — along with Aircel founder C Sivasankaran. available to depositors of The ED also made provisional attachment of bank NBFCs, unlike in case of accounts and immovable property to the tune of Rs banks. 570 crore held by these people. The chargesheet pointed out that the senior management had falsified the accounts and indulged in circuitous transactions. This was done ostensibly to maintain the credentials of IFIN, in order to continue receiving high remuneration and to artificially boost the balance sheet of IL&FS group. However, these activities led to further losses. How NBFC Liquidity Crisis can Impact Economic Growth? . The mutual fund and the NBFCs & Banks NBFC sector is strongly Non-banking financial companies (NBFCs) are related as the mutual fund is financial institutions that offer various banking the biggest fund provider to services but do not have a banking license. NBFC space by way of Generally, these institutions are not allowed to take commercial paper and traditional demand deposits—readily available funds, debentures. such as those in checking or savings accounts—from . Experts say all the the public. This limitation keeps them outside the investment by mutual fund scope of conventional oversight in the NBFC sector is not in high investment grade or triple-A. . If there is a problem with a few NBFCs, there can be a chain reaction of selling the exposure, which could create more trouble for the NBFC sector. 9 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
Additional Learning: A shadow banking system is a group of financial intermediaries facilitating the creation of credit across the global financial system but whose members are not subject to regulatory oversight. The Risks of Shadow Banking Borrowing short and lending long is a high-risk game as the IL&FS collapse amply manifests. (Generally, NBFC invest in companies with long gestation period, like infrastructural projects where returns come in 12-14 years, while they take capital through short term funds such as mutual funds which entail early repayments within 3-4 years, thereby getting caught in a trap of high risks.) In the aftermath, the government has taken it over though it already indirectly owned 40% of it. There is a huge mistrust in the financial market with mutual funds and banks are reluctant to lend to NBFCs. In spite of reports of solid capital ratios, there is a great deal of apprehension about the possible time-bombs buried in their balance sheets. For months now, NBFCs have been facing a liquidity crunch. Defaults by such NBFCs are fatal enough to damage India‘s entire financial system with mutual funds - which are sold to the public - having $ 55 billion of exposure to them, or 11% of total assets under management. Traditional banks have loaned $ 70 billion to NBFCs which approximately equals to 40% of the banks‘ core capital. Way Forward India also must end the regulatory arbitrage that allows shadow banks to raise most of their funds from retail investors and deposit-taking banks. Either shadow lenders should come out of the dark and be turned into banks, or a firewall will have to be erected around them to protect the rest of banking.
INSOLVENCY & BANKRUPCY CODE Why in news? The Central government introduced the Insolvency and Bankruptcy Insolvency is a situation where individuals or Code(IBC) in 2016 to resolve claims companies are unable to repay their involving insolvent companies. This outstanding debt. was intended to tackle the bad loan Bankruptcy, on the other hand, is a situation problems that were affecting the whereby a court of competent jurisdiction has banking system. Two years on the declared a person or other entity insolvent, IBC has succeeded in a large having passed appropriate orders to resolve it measure in preventing corporates and protect the rights of the creditors. It is a from defaulting on their loans. The legal declaration of one‘s inability to pay off IBC process has changed the debtor- debts. creditor relationship. A number of major cases have been resolved in two years, while some others are in advanced stages of resolution.
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What is IBC? Insolvency and Bankruptcy Code provides a time-bound process for resolving insolvency in companies and among individuals. . The Government implemented the Insolvency and Bankruptcy Code (IBC) to consolidate all laws related to insolvency and bankruptcy and to tackle Non-Performing Assets (NPA), a problem that has been pulling the Indian economy down for years. . The Code is quite different from the earlier resolution systems as it shifts the responsibility to the creditor to initiate the insolvency resolution process against the corporate debtor. . The recent amendments aim to remove bottlenecks, streamline the corporate insolvency resolution process, and protect the last mile funding in order to boost investment in financially distressed sectors. o Ring-fencing the companies resolved under the IBC from regulatory actions during past management can make the IBC process attractive for investors and acquirers. . Insolvency and Bankruptcy Code, 2016 is considered as one of the biggest insolvency reforms in the economic history of India. . This was enacted for reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons. Background . The era before IBC had various Objectives of IBC scattered laws relating to insolvency . Consolidate and amend all existing and bankruptcy which caused insolvency laws in India. inadequate and ineffective results . To simplify and expedite the Insolvency and with undue delays. For example, Bankruptcy Proceedings in India. . Securitization and Reconstruction of . To protect the interest of creditors including Financial Assets and Enforcement stakeholders in a company. of Security Interest Act SARFAESI – . To revive the company in a time-bound for security enforcement. manner. . The Recovery of Debts Due to Banks . To promote entrepreneurship. and Financial Institutions Act, 1993 . To get the necessary relief to the creditors (RDDBFI) for debt recovery by and consequently increase the credit supply banks and financial institutions. in the economy. . Companies Act for liquidation and . To work out a new and timely recovery winding up of the company. procedure to be adopted by the banks, . Ineffective implementation, conflict in financial institutions or individuals. one of these laws and the time- . To set up an Insolvency and Bankruptcy consuming procedure in the Board of India. aforementioned laws, made the . Maximization of the value of assets of Bankruptcy Law Reform Committee corporate persons draft and introduce Insolvency and Bankruptcy Law bill.
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The Insolvency and Bankruptcy Code ecosystem National Company Law Tribunal (NCLT) – The adjudicating authority (AA), has jurisdiction over companies, other limited liability entities. Debt Recovery Tribunal (DRT) has jurisdiction over individuals and partnership firms other than Limited Liability Partnerships. The Insolvency and Bankruptcy Board of India (IBBI) – apex body for promoting transparency & governance in the administration of the IBC; will be involved in setting up the infrastructure and accrediting IPs (Insolvency Professionals (IPs) & IUs (Information Utilities). It has 10 members from Ministry of Finance, Law, and RBI. Information Utilities (IUs) - a centralized repository of financial and credit information of borrowers; would accept, store, authenticate and provide access to financial data provided by creditors. IPs- persons enrolled with IPA (Insolvency professional agency (IPA) and regulated by Board and IPA will conduct resolution process; it will act as Liquidator/ bankruptcy trustee; they are appointed by creditors and override the powers of the board of directors. IPs have the power to furnish performance bonds equal to assets of the company under insolvency resolutions Adjudicating authority (AA) - would be the NCLT for corporate insolvency; to entertain or dispose of any insolvency application, approve/ reject resolution plans, decide in respect of claims or matters of law/ facts thereof. The success of IBC: (Additional Learning Refer Economic Survey Volume 2 Chapter 4) Burgeoning NPAs 21 PSU banks had combined gross NPAs of Rs 7.3 lakh crore at the end of September 2017 quarter. This was a growth of 27% as compared to 2016 quarter. How has IBC helped? Due to the institution of IBC, we have seen that many business entities are paying up front before being declared insolvent. The success of the act lies in the fact that many cases have been resolved even before it was referred to NCLT. 4452 cases were dismissed at the pre-admission stage. Hence, it shows the effectiveness of IBC. Presently, there are 1332 cases before NCLT. Realization by creditors around Rs 80,000cr in resolution cases. Banks recovered Rs 5.28 lakh crore in 2017-18, compared to just Rs 38500 cr in 2016-17. The maximum amount recovered was Rs 4, 92,500 cr from 21 companies.
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LONG TERM REPO OPERATIONS Why in news? Recently, the Reserve Bank of India (RBI) decided to introduce long-term repo operations (LTRO) and revised its liquidity management framework to facilitate the transmission of monetary policy actions and flow of credit to the economy. Background: Objective: This is a direct incentive by RBI to boost credit growth, even as the monetary policy committee (MPC) earlier kept benchmark rates unchanged because of uncertainty in the inflation outlook. The central bank will conduct long-term repos operations (LTROs) of one- and three-year tenors for up to a total amount of 1 lakh crore at the policy repo rate. LTROs conducted under this scheme will be in addition to the existing Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) LTROs will be conducted on CBS (E-KUBER) platform. RBI‘s action is reminiscent of the European Central Bank‘s (ECB‘s) unequivocal promise of funds to the banking system in 2011. Why is RBI introducing LTRO now? Increase liquidity in event on non-accommodative stance of MPC: Keeping in view the inflationary pressures, RBI kept the repo rate unchanged. This gave RBI a chance to use others measures that are essentially outside the ambit of MPC. o To overcome the impact of an absent rate cut, and add impetus to the slowing economy RBI resorted to measure of LTRO. Availability of durable liquidity: 1 lakh crore will be injected into the banking system that will enable banks to reduce their lending rates. o The ?1 trillion borrowed by banks under this special window will be locked in at the current repo rate of 5.15%. o Basically, this means banks can give the RBI government bonds and borrow money for 1 and 3 years at a fixed rate. Lower cost of funds for banks: Funds are being given at the policy rate (repo rate), which is relatively cheaper than the prevailing market rates. o This will bring down cost of funds for banks without effectively cutting deposit rates. o It is expected to bring down short-term rates and boost investment in corporate bonds, as corporate borrowing rates will fall. Ensure Monetary Transmission: It is an effort by the RBI to ensure better monetary policy transmission and make effective the transmission of earlier repo rate cuts. Manage bond yields: This, along with other measures of RBI like ‗Operation Twist‘ will help RBI manage bond yields.
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How the LTRO is different from the existing term repo?
Already, the RBI is having term repo instrument to inject money into the banking
system by providing higher than one day loans. The term structure is higher but
less than 28 days. Interest rate will be higher than repo rate. In this context,
following is a comparison between the term repo and LTRO.
Feature LTRO Term Repo Interest rate Fixed and at repo rate Variable, depending upon auctions but higher than repo rate. Term structure 1 year or 3 year 3 to 28 days Individual bank‘s bid size No restriction on the 0.75% of the banks‘ NDTL. maximum amount of bidding by individual bidders.
Disbursal Auction (e-Kuber) Auction (e-Kuber)
Applicants Scheduled commercial Scheduled commercial
banks banks
Collateral Same as under LAF Same as under LAF
Total fund injections Limit to be determined Limit to be determined by
by the RBI the RBI
What was the immediate impact of LTRO? Fall in short-term bond yields: Shorter duration government bond yields plunged on after RBI announced LTRO. Benefits of LTRO Increased flow of credit to productive sectors:This should encourage banks to undertake maturity transformation smoothly and seamlessly so as to augment credit flows to productive sectors. Improve growth: This step demonstrates RBI‘s intent towards supporting growth. Will act against inflationary pressures: Given the elevated headline inflationary pressures, this measure will be an incentive for banks to lock medium-term funding at currently low (repo) rates. CRR reduced for certain segments CRR is currently at 4% of net demand and time liabilities (NDTL) or a sum of the bank‘s deposits and borrowings. o Banks must set aside CRR with RBI, but do not earn any interest on it. o The lower the CRR requirement, the better it is for banks, as they can lend that much more and earn interest on it. To improve credit flow, RBI temporarily removed the cash reserve ratio (CRR)for every new retail loan made to finance automobiles, homes, and to small businesses. o Cheaper money helps spur credit demand. This will make it attractive for banks to lend to retail and small businesses. It essentially translates into a short-term cut in CRR. 14 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
This scheme will be available for new loans given till 31 July 2020. Revised liquidity management framework Surplus liquidity:Liquidity in the banking system is currently A liquidity adjustment facility (LAF) is a tool estimated at a surplus of a used in monetary policy, primarily by RBI, which massive ?3.6 trillion. allows banks to borrow money through repurchase agreements (repos) or for Revised liquidity management framework: RBI revised the banks to make loans to the RBI through reverse existing liquidity management repo agreements. This arrangement manages framework through which it liquidity and was introduced as a result of the ensures adequate liquidity in the Narasimham Committee on Banking Sector system. Reforms (1998). Marginal Standing Facility (MSF) o This was done so that is a new LAF sufficient credit is provided window created by RBI in its credit policy of May to all productive sectors in 2011. MSF is the rate at which the banks are the economy, and excess able to borrow overnight funds from RBI against liquidity in the system is the approved government securities. channelized to supply adequate credit. WACR as the single operating target: According to the revised framework, RBI finalized weighted average call rate (WACR) as the single operating target.The call rate is the interest rate at which banks lend overnight money to each other. o RBI will ensure enough liquidity to anchor the call rate at around the repo rate. o This means that if the call rate inches above the repo rate, it would signal liquidity deficit and the central bank will bring its tools to infuse liquidity. o Similarly, if the call rate is below the repo rate, it would mean the banking system has surplus liquidity. In that case, the central bank can operate to suck out the liquidity through its operations. No need to maintain 1% of NDTL: With WACR being the single operating target, the liquidity provision of RBI to maintain 1% of net demand and time liabilities (NDTL), does not arise. o Hence, RBI withdrew the current provision of maintaining assured liquidity of 1% of net demand and time liability (NDTL). Introduced a variable 14-day term repo/reverse repo operation: Under the new framework, RBI has withdrawn the daily fixed rate repo and 14-day term repos and, instead, introduced a variable 14-day term repo/reverse repo operation, which will be conducted to coincide with the cash reserve ratio maintenance cycle. o Owing to surplus liquidity, banks participate in lending excess reserves to RBI in exchange of G-Sec. o Earlier banks used to dump unlimited amounts of excess cash with the RBI at daily fixed reverse repo rates. o Within the new framework, now banks have to decide every 14 days how much excess cash they will need for CRR and other purposes and lend the balance for 14 days to RBI. 15 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
o Many banks will be afraid to give away all their excess cash to RBI for 14 days fearing demand coming up. o Hence, they will park relatively less money with RBI and more money will be available for supply of credit. The introduction of LTRO is likely to make reverse repo rate as the operative policy rate over a point of time. o It can be seen through WACR‘s recent drifted towards the reverse repo rate (lower bound), effectively bringing down cost of bank funds just as a rate cut would have.
Liquidity management corridor Under the new framework, the earlier liquidity management corridor is retained, with the marginal standing facility (MSF) rate as its upper bound (ceiling) and the fixed rate reverse repo rate as the lower bound (floor), with the policy repo rate in the middle of the corridor.
Conclusion RBI introduction of LTRO is more of a credit policy than monetary policy. Monetary policy‘s effectiveness in driving credit and overall growth is limited, keeping in mind that the inflation is currently high. It needed some direct measures to ensure credit reaches to the sectors where there is requirement
EBLR Measures used by RBI: External Benchmark System: Earlier, the central bank mandated all banks to link their floating rate loans to an external benchmark instead of the marginal cost-based lending rate (MCLR). After the introduction of external benchmark system, most banks linked their lending rates for A repo rate cut means housing, personal and micro and small enterprises that RBI will lend (MSEs) to the policy repo rate of the RBI. money to commercial Cash reserve ratio (CRR) norms were also banks at a lower rate. eased for new retail loans to improve credit flow. A lower repo rate will Revised the liquidity management framework, reduce cost of and finalized weighted average call rate (WACR) as borrowing for the single operating target. commercial banks. RBI also abolished the daily variable rate reverse repo and replaced it with a daily fixed-rate reverse repo. This incentivises commercial banks to lend money to businesses at a lower interest rate. At a lower rate of interest, businesses will borrow more, and more liquidity is injected into the economy.
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Analysis: Why was External Benchmark System Back to Basics: Monetary Policy introduced? Stances; MCLR had replaced base rate regime: Neutral Monetary policy: Neutral Monetary The MCLR-based regime had replaced policy refers to central bank (read RBI) keeping the earlier base rate regime to provide such rate or range of rates, which are transparency in the transmission of consistent with full employment, trend growth, monetary policy decisions. and stable prices. An economy in this state Marginal cost-based lending rate: doesn‘t need to be stimulated or slowed by a MCLR is an internal benchmark monetary policy. rate that depends on various factors Accommodative Monetary policy: An such as fixed deposit rates, source of Accommodative monetary policy occurs when a funds and savings rate. The price of loan central bank attempts to expand the overall comprises the MCLR and spread/profit money supply to boost the economy when margin of the bank. growth is slowing (as measured by GDP). Problem with MCLR regime: When RBI cut the repo and reverse repo rates, banks did not pass the full benefits to borrowers. It is not that banks did not cut their MCLR. They did albeit by a Banks were free to choose from any of much lower percentage. the external benchmark mentioned o MCLR system is opaque since it is an below: internal benchmark that depends on . RBI's policy repo rate the way a bank does its business. . 90 days Treasury Bill yield o Due to internal benchmarking of loan . 180 days Treasury Bill yield price, policy rate cuts often don't published by the FBIL reach the borrowers. . Any other benchmark market o Unmatched policy transmission: interest rate published by the Loans to medium enterprises also FBIL linked to external benchmark: RBI has decided to link pricing of loans by scheduled commercial banks for the micro, small and medium enterprises to an external benchmark like the repo rate with effect April 1, 2020. Note: Banks were free to charge a spread, i.e., margin and risk premium over and above the external benchmark.
REGULATORY SANDBOX Why in news? The Reserve Bank of India has come up with draft guidelines on ―Enabling Framework for Regulatory Sandbox‖ for the financial sector.
Regulatory sandbox A regulatory sandbox allows fintech players to –
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test new products in a controlled regulatory environment (where the applicability of certain regulations may be relaxed); reduce costs by limiting testing to a narrow customer group; engage with regulators. Further, it also allows the regulator to – make regulatory decisions based on evidence from real-time product testing and customer experience; keep pace with technological innovation. The fintech sector in India has witnessed rapid innovation in technology and products. There are multiple regulations that could potentially apply to a single fintech product — and it is not always clear how a new product will be regulated. Arguably, this inhibits innovation on the ground that industry tends to be overcautious and may not roll out a product in its most effective format (to avoid the risk of being non-compliant). At the same time, a regulator needs to be able to understand the risks of new SEBI, IRDAI technologies before it can After the Reserve Bank of India released a evolve a framework that draft framework for setting up a regulatory protects consumers and control sandbox (RS) for fintech players in the systemic risk without ―over- counter, the market and insurance regulators regulating‖. have also launched similar initiatives. In this context, a fintech regulatory SEBI: SEBI is proposing an ‗Innovation sandbox becomes particularly useful Sandbox‘, which would be a testing in India, given that fintech products environment, where fintech firms and entities could potentially face regulation from not regulated by SEBI, including individuals, multiple regulators. could test their proposed solutions offline, Once a digital customer isolated from the live market, subject to distribution channel has been fulfilment of the eligibility criteria, based on established, it could be market-related data made available by stock effectively used to deliver not exchanges, depositories and qualified registrar just payment or lending and share transfer agents (QRTAs). products, but also investment, IRDAI: IRDAI in February this year (2019) wealth management, insurance recommended setting up a regulatory sandbox and a whole range of other to test new digital and tech-based innovations, financial products, each of before launching them in the market. which may be regulated by a For the IRDAI sandbox, an applicant should different regulator – the RBI, have a net worth of Rs 10 lakh and a proven SEBI and the IRDA. financial record of at least one year.
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What does the regulatory sandbox mean for each stakeholder? The three key stakeholders in the regulatory sandbox (at least initially) are start-up fintech players, customers and the RBI. Fintech players: The sandbox will not offer any reduced customer liability and products must adequately disclose risks, features and costs to consumers. Customers: The framework is surprisingly silent on customer safeguards. Other jurisdictions have used a combination of transaction value caps, risk disclosure requirements and dispute resolution procedures to protect customers over the duration of the sandbox testing. It would certainly be useful for the RBI to, in the final framework, comment on some of these aspects. Regulator: It is critical for the RBI to evolve a transparent process to select applicants, be actively engaged through the duration of the sandbox, and effectively implement the learning into the fintech regulation. Given the regulatory interplay of many fintech products, the RBI may also consider working with other regulators during this process.
OFF BUDGET BORROWINGS Why in news? The Comptroller and Auditor General What are off-budget borrowings? (CAG) of India has pulled up the government Off-budget borrowings are loans that for increased use of off-budget financing for are taken not by the Centre directly, schemes and subsidies in its Compliance of but by another public institution the Fiscal Responsibility and Budget which borrows on the directions of Management (FRBM) Act report for FY17. the central government. This practice of off- budgeting masks the 1. Such borrowings are used to fulfil true extent of fiscal and revenue deficits. the government‘s expenditure needs. The CAG of India recommended that the 2. But since the liability of the loan is government to institute a policy framework not formally on the Centre, the loan for off-budget financing, which, should is not included in the national include a disclosure about its rationale fiscal deficit. and objective to Parliament. This helps keep the country‘s fiscal Background deficit within acceptable limits. Fiscal Responsibility and Budget Management (FRBM) Act: FRBM became an Act in 2003 which provides a legal-institutional framework for fiscal consolidation. The objective of this Act is to ensure inter-generational equity in fiscal management, long- term macroeconomic stability by achieving sufficient revenue surplus, better coordination between fiscal and monetary policy, and transparency in fiscal operation of the Government. The FRBM Bill was to bind future governments to a pre-specified fiscal policy framework which is an entirely anti-democratic measure.
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The FRBM Act which became effective from July 5, 2004 mandated the Central Government to eliminate revenue deficit by March 2009 and subsequently build up a revenue surplus. The Act also mandated the Central Government to reduce fiscal deficit to an amount equivalent to 3% of GDP by March 2009. The FRBM Act provides for greater transparency in fiscal operations, quarterly review for fiscal situation and regulating direct borrowing and control expenditure to effect fiscal discipline. Analysis Why is it Problematic? Off-budget financing by its nature isn‘t taken into Apart from budgetary spending, account when calculating fiscal indicators. But the Extra Budgetary Resources cost is borne by the budget through some (EBR) have also been mobilized mechanism or the other. to finance infrastructure Such financing tends to hide the actual extent of investment since 2016-17. government spending, borrowings and debt and Government has raised EBRs of increase the interest burden. Rs. 1.35 lakh crore during the Report by CAG period from 2016-17 to 2019- It said that off-budget financing was being used by 20. It proposes to raise EBR of ` the government (in the fiscal 2016-17) to defer 49,500 crore in 2020-21 BE fertiliser arrears, food subsidy bills and outstanding which is 0.22 per cent of GDP. dues of Food Corporation of India (FCI). Off-budget financing includes mechanisms like market borrowing and ways and means advances, which are outside the purview of parliamentary oversight for e.g., Special banking arrangements were used to conceal the deferment of fertiliser subsidies. Spending on irrigation was masked by borrowing by the National Bank for Agriculture and Rural Development (NABARD). Railway expenditure was covered by borrowing by the Indian Railway Finance Corporation, and spending on power projects by the Power Finance Corporation. Though these provides flexibility in meeting requirement of capital-intensive projects, it would pose fiscal risk in the long term, in case the entity that raises the funds fails to meet debt servicing. Despite this, the government resorts to off-budget methods of financing to meet its revenue and capital requirements. The quantum of such borrowings is huge and current policy framework lacks transparent disclosures and management strategy for comprehensively managing such borrowings. What is the case with Food Corporation of India? To illustrate off-budget financing, the CAG report gave the example of Food Corporation of India (FCI). The difference between the cost of procurement of foodgrains and cost of providing them to fair price shops is what FCI demands from the government as subsidy. When the budget allocation of a financial year is not sufficient to clear all the dues of food subsidies bill raised by FCI, the dues of such subsidies are carried over to next financial year.
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It is evident that there was increase of about 350% over subsidy arrears in the five years preceding 2016-17. But the government has passed on its own food subsidy burden on to the FCI, rather than servicing it from the budget. This require financing from a number of methods including very high interest cash credit facility which increases actual cost of this subsidy substantially. The FCI has borrowed to pay for that burden and has also borrowed from NSSF to the tune of tens of thousands of crores to service that debt. In 2017-18, the FCI took loans of Rs 65,000 crore from the NSSF, partly for fresh expenditure and also to repay some of the principal of an earlier loan. However, all this money should have been part of official government expenditure in the Budget.
CAG FAVOURS A POLICY FOR DISCLOSURE A policy framework for off-budget financing that should include disclosures to parliament about the amount, rationale and objective of such funding. Off-budget financing being outside the parliamentary control has implication for fiscal indicators as they "understate" government's expenditure in the year by keeping them off the budget. Such off-budget financial arrangement, defers committed liability (subsidy arrears/bills) or create future liability and increases cost of subsidy due to interest payment. In order to address these issues, it said the government should consider "putting in place" a policy framework for off-budget financing. The framework should specify the rationale and objective of off-budget financing, quantum of off-budget financing and sources of fund, among others. Government may consider disclosing the details of off-budget Borrowings through disclosure statements in Budget as well as in Accounts. In Indian context, at state level, expenditure related to activities undertaken by the Government is considered off-budget if they are not routed through consolidated fund of the state or, outside the budgetary process or, not accounted for in the budget document.
Government Argument: The government has made amendments in the FRBM architecture through the Finance Act, 2018, presented along with Budget 2018-19. In the revised FRBM architecture, the government focused on achieving the fiscal deficit target of 3% of gross domestic product by the end of 2020-21. Government refuted the CAG charge by maintaining that since amendments to the FRBM Act in 2018 include a debt target, it has legislative control over Off-Budget financing. In 2021-22 Budget Govt Decided to disallow FCI borrowings from National Small Savings Scheme
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Way Forward The objective of the FRBM Act, 2003 was to provide for the responsibility of the Central Government to ensure inter-generational equity in fiscal management and long-term macro- economic stability. However, successive governments have resorted to methods like – Rolling over additional subsidy burden Taking back unspent amounts from ministries Converting certain expenditure entries to ways and means advances Running down the cash reserves Investors require a fiscal deficit number that is credible and that reflects the true level of government borrowing and spending. The more transparent it is, the better the market works and the more money can be raised going forward. Thus, the government should not sacrifice the effectiveness of the bond markets to its short- term desire to raise more finance while appearing fiscally conservative. Also, investing the small savings fund (NSSF) into the troubled and loss-making public sector units like state-owned airline Air India should be avoided
RECAPITALISATION FOR RRB‘S Why in RRB is in news? The Cabinet Committee on Economic Affairs has given its approval for continuation of the process of recapitalization of Regional Rural Banks (RRBs) by providing minimum regulatory capital to RRBs for another year beyond 2019-20, that is, up to 2020-21. This is for those RRBs which are unable to maintain minimum Capital to Risk weighted Assets Ratio (CRAR) of 9%, as per the regulatory norms prescribed by the Reserve Bank of India.
Key Points This recapitalization (a strategy of enhancing the financial base of an entity to overcome a rough financial situation) would improve their capital-to-risk weighted assets ratio (CRAR) and strengthen these institutions for providing credit in rural areas. o The step will help those RRBs which are unable to maintain a minimum CRAR of 9%, as per the regulatory norms prescribed by the RBI. The release of the Rs. 670 crore as the central share funds will be contingent upon the release of the proportionate share by the sponsor banks.
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The recapitalization process of RRBs was approved by the cabinet in 2011 based on the recommendations of a committee set up under the Chairmanship of K C Chakrabarty. o The National Bank for Agriculture and Rural Development (NABARD) identifies those RRBs, which require recapitalisation assistance to maintain the mandatory CRAR of 9% based on the CRAR position of RRBs, as on 31st March of every year. o The scheme for recapitalization of RRBs was extended up to 2019-20 in a phased manner post 2011. Why CRAR was enforced? The enforcement of regulated levels of this ratio is intended to protect depositors and promote stability and efficiency of financial systems around the world. It determines the bank‘s capacity to meet the time liabilities and other risks such as credit risk, operational risk, etc. The Basel III norms stipulated a capital to risk weighted assets of 8%. However, as per RBI norms, Indian scheduled commercial banks are required to maintain a CRAR of 9%.
REGINAL RURAL BANKS RRBs are financial institutions which ensure adequate credit for agriculture and other rural sectors. Regional Rural Banks were set up on the basis of the recommendations of the Narasimham Working Group (1975), and after the legislation of the Regional Rural Banks Act, 1976. The first Regional Rural Bank ―Prathama Grameen Bank‖ was set up on 2nd October, 1975. Stakeholders: The equity of a regional rural bank is held by the Central Government, concerned State Government and the Sponsor Bank in the proportion of 50:15:35. The RRBs combine the characteristics of a cooperative in terms of the familiarity of the rural problems and a commercial bank in terms of its professionalism and ability to mobilise financial resources. Each RRB operates within the local limits as notified by the Government. The main objectives of RRBs are To provide credit and other facilities to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs in rural areas. To check the outflow of rural deposits to urban areas and reduce regional imbalances and increase rural employment generation. The RRBs are required to provide 75% of their total credit as priority sector lending.
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RBI‘S COVID-19 ECONOMIC RELIEF PACKAGE Why in News After the Government‘s announcement of Pradhan Mantri Gareeb Kalyan Yojana, the Reserve Bank of India‘s Monetary Policy Committee (MPC) has come out with its own measures to help deal with economic fallout of COVID-19 pandemic. This was the first time that the MPC met outside its bi-monthly meeting calendar.
Cut in Repo Rate The repo rate has been cut by 75 basis points (bps) from 5.15% to 4.40%. Repo Rate is the rate at which a country‘s central bank (RBI) lends money to commercial banks. Ideally, a low repo rate should translate into low-cost loans for general masses. The rates have been cut to encourage banks to lend more and to revive growth. Cut in Reverse Repo Rate The ratio has been cut by 90 bps to 4%. Reverse repo rate is the rate at which the central bank of a country (RBI) borrows money from commercial banks within the country. The higher reduction in the reverse repo rate was aimed at prompting banks to lend more rather than keeping their excess liquidity with the RBI. Macroeconomic Indicators The MPC refrained from giving growth and inflation projections, given the uncertainty in the situation. Growth outlook will depend on the intensity, speed, and duration of the pandemic. This clearly highlights downside risks to growth from a prolonged lockdown. Moratorium on Repayments of Loans RBI has also allowed banks to defer payment of Equated Monthly Installments (EMIs) on home, car, personal loans as well as credit card dues for three months till May 31. The RBI also allowed lending institutions, banks to defer interest on working capital repayments by 3 months — a move aimed at addressing the distress among firms as production is down. A working capital loan is a loan that is taken to finance a company‘s everyday operations. A moratorium is not a loan waiver and does not offer any discount on interest payout. But it provides stressed customers extra
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time to repay without their accounts being labelled non-performing assets (NPA) or their credit score being affected - a major worry for small and medium businesses. Impact on Banks: For banks and lending institutions, this will affect their cash flows as they may not be getting repayments for three months. But the RBI has reduced their cash reserve ratio (CRR) requirements, providing them additional liquidity. Liquidity Infusion of Rs. 3.74 lakh crore - 3.4% of GDP Through measures that pertain to Targeted Long-Term Repo Operations (TLTRO) of up to 1 trillion, a 100-bps cut in Cash Reserve Ratio (CRR) and easier borrowing requirements under the Marginal Standing Facility (MSF) window. TLTRO will provide financing to credit institutions. CRR is the amount of money banks need to set aside with RBI as a buffer and do not earn any interest on it. CRR has been cut to 3% from 4%. Under the Marginal Standing Facility (MSF) window, banks can borrow funds from the RBI by pledging government securities within the limits of Statutory Liquidity Ratio (SLR). The RBI has increased accommodation under the marginal standing facility from 2%of SLR to 3%. (FOR DETAILED PACKAGE - ALSO REFER ECO SURVEY VOLUME 2 CHAPTER 2 ANNEXURE ON ATMANIRBHAR PACKAGE)
COMPANIES FRESH START SCHEME 2020 The Ministry of Corporate Affairs, in an attempt to ease matters for the companies, has introduced a new scheme known as the Companies Fresh Start Scheme, 2020 (CFSS). Additionally, the MCA has also given the LLPs a bit of breathing space by making certain necessary changes to the LLP Settlement Scheme, 2020. The idea behind this is to provide a clean slate to all those law-abiding companies, giving them extended time and a certain level of financial relief with regard to compliances considering the current global situation. What Does CFSS 2020 Include? As per the provisions of the Companies Act, 2013, all companies are required to follow statutory compliances annually. This includes the Annual Return, Financial Statements and all the other necessary forms, documents and statements that are specified, within that particular time frame. Non – compliance of the same results in the imposition of penalties and fines. A company that fails to adhere to the compliances is called a defaulting company. The Companies Fresh Start Scheme (CFSS) is applicable between the 1st of April, 2020 and the 30th of September, 2020.
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The Fresh Start scheme and modified LLP Settlement Scheme reduce compliance burden during the unprecedented public health situation caused by Covid-19, an official release said. Both the schemes is a one-time waiver of additional filing fees for delayed filings by the companies or LLPs with the Registrar of Companies during the currency of the Schemes, i.e. during the period starting from April 1 and ending on September 30, the release added. The Schemes, apart from giving longer timelines for corporates to comply with various filing requirements under the Companies Act 2013 and LLP Act, 2008, significantly reduce the related financial burden on them, especially for those with long standing defaults, thereby giving them an opportunity to make a ―fresh start‖. Both the Schemes also contain provision for giving immunity from penal proceedings, including against imposition of penalties for late submissions and also provide additional time for filing appeals before the concerned Regional Directors against imposition of penalties, if already imposed. However, the immunity is only against delayed filings in MCA 21 and not against any substantive violation of law
COUNTER CYCLICAL CAPITAL BUFFER (CCYB) FOR BANKS What is counter cyclical capita buffer? Following Basel-III norms, central banks specify certain capital adequacy norms for banks in a country. The CCCB is a part of such norms and is calculated as a fixed percentage of a bank‘s risk- weighted loan book. However, one key respect in which the CCCB differs from other forms of capital adequacy is that it works to help a bank counteract the effect of a downturn or distressed economic conditions. With the CCCB, banks are required to set aside a higher portion of their capital during good times when loans are
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growing rapidly, so that the capital can be released and used during bad times, when there‘s distress in the economy. The CCCB is supposed to be in the form of equity capital, and if the minimum buffer requirements are breached, capital distribution constraints such as limits on dividends and share buybacks can be imposed on the bank. Although the RBI had proposed the CCCB for Indian banks in 2015 as part of its Basel-III requirements, it hasn‘t actually required the CCCB to be maintained, keeping the ratio at zero per cent ever since. This is based on the RBI‘s review of the credit-GDP gap, the growth in GNPA, the industry outlook assessment index, interest coverage ratio and other indicators, as part of the first monetary policy of every financial year. Why is it important? Apart from acting as a buffer that can be drawn upon during distress, the CCCB also helps head off systemic risks by curbing unruly bank credit growth. Systemic risks refer to events that can, besides impacting individual banks, shake up the financial system. The financial crisis of 2008-09 is an example of how systemic risks can play out — individual defaults in subprime mortgages and a credit crunch for banks sparked the biggest financial crisis of all time in the US. After the financial crisis, the Basel committee, comprised of banking regulators, came up with the Basel-III norms, which set new regulatory standards on bank capital adequacy and liquidity. The CCCB was introduced as a part of those norms. Why should I care? When an economy is booming, you usually have a variety of lenders, from NBFCs to banks to others, knocking at your door to offer loans. One might not even want to resort to approaching a bank, considering the speed of credit approval that other lenders may offer. However, the tables turn when the economy is facing a distress, and most sources dry up. This can be disastrous, considering that businesses and households need more financial support during such times. Hence comes the need for banks to increase their credit during times of distress. The CCCB ensures that central banks can direct bankers to release more credit by freeing up capital, when distress situations arise. In India, the RBI‘s move to not to impose the CCCB on banks from 2015 has meant they don‘t have any capital buffer to draw on. But not activating it now can help banks keep up the credit flow in the economy. 27 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
MONEY Why is helicopter money in news now? With the coronavirus-hit economy falling deeper and deeper into a chasm with each What is helicopter money? passing day, Telangana chief minister KC Rao This is an unconventional monetary said helicopter money can help states comes policy tool aimed at bringing a flagging out of this morass. He asked for the release of economy back on track. It involves 5% funds from GDP by way of quantitative printing large sums of money and easing (QE).QE, a policy followed all over the distributing it to the public. American world, is the only way to deal with the economist Milton Friedman coined this situation, RBI should implement quantitative term. It basically denotes a helicopter easing policy. This is called Helicopter Money. dropping money from the sky. Friedman This will facilitate the states and financial used the term to signify "unexpectedly institutions to accrue funds. We can come dumping money onto a struggling out of the financial crisis. Release 5 percent economy with the intention to shock it out of funds from the GDP through Quantitative of a deep slump." Under such a policy, a Easing Policy. central bank "directly increase the money Is helicopter money the same as supply and, via the government, distribute quantitative easing? the new cash to the population with the Quantitative easing also involves the use aim of boosting demand and inflation." of printed money by central banks to buy government bonds. But not everyone views the money used in QE as helicopter money. It sure means printing money to monetise government deficits, but the govt has to pay back for the assets that the central bank buys. It's not the same as bond-buying by central banks "in which bank-owned assets are swapped for new central bank reserves. "Helicopter money is also different from a central bank directly financing the debt of a government. Is Japan deploying helicopter money? According to some analysts, the yield curve control that Japan is resorting to is basically a type of helicopter money only. That is because this strategy lets the government spend more without having to worry about bond yields jumping.
EUROZONE CORONA BOND How eurozone Corona bond works The coronavirus pandemic has revived the acrimonious debate between euro zone countries about jointly issuing debt to meet healthcare needs and address the deep economic downturn that is set to follow. Nine of the 19 countries that use the single currency called for a common debt instrument issued by a European institution to fight the outbreak and its effects. The idea of such debt, called ―coronabonds‖, was rejected by
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Germany, the Netherlands, Finland and Austria, fiscally ―frugal‖ northern states wary of pooling liabilities with what they see as more spendthrift countries in southern Europe. The idea of joint debt issuance was previously raised by Italy, during the 2009 global financial crisis, and by France and Italy in 2012, at the peak of the euro zone‘s sovereign debt crisis, and dismissed by Berlin and its allies. But ideas are likely to evolve and deepen as the current crisis prompts more discussion.
Existing possibility of Euro Zone jointly issued debt The euro zone jointly issues debt through its bailout fund, the European Stability Mechanism, which borrows on the market against the security of its paid-in and callable capital provided by euro zone governments. The fund, together with its predecessor EFSF, issued such Existing European Investment Bank (EIB) debt to bail out Greece, Ireland, borrowing Portugal, Cyprus and Spain The EIB, the investment arm of the EU, is owned by during the sovereign debt crisis. It EU governments and issues around 60 billion euros can and probably will now offer of debt every year to lend for various projects in the standby credit lines, called ECCL, bloc of up to 2% of a count of a country‘s gross domestic product or 240 billion euros in total, to all euro zone countries. The European Commission issued debt through the European Financial Stability Mechanism (EFSM) to help fund the bailouts of Greece, Ireland and Portugal and give balance of payments help to Latvia, Hungary and Romania. EFSM debt is backed by all 27 European Union countries through the bloc‘s joint long-term budget. It can, and probably will, issue 100 billion euros of debt backed by 25 billion euros of guarantees from member states, to finance wage subsidies in all EU countries as part of a short-time work scheme modelled on the German ―Kurzarbeit‖ plan.
RBI SETS UP WING FOR BANKING FRAUD OVERSIGHT Why banking fraud oversight The Reserve Bank of India (RBI) is putting together an exclusive wing for banking fraud oversight. It is bringing together teams for data processing and analysis, artificial intelligence analysis units, along with pro-active risk assessment cell. The reason behind developing these new teams is, they can prevent any future Yes Bank kind of event. RBI is also planning to bring in experts from the private sector. People from the private sectors working in all these domains could be brought in to train them in the fraud oversight wing. The idea for the fraud oversight wing is to train the teams in the latest technologies, as most banking officials have never done credit risk assessment or are not accustomed to new technology. The idea of a fraud oversight wing was floated in October 2019 by the top management of RBI. The working conditions, however, were very strict and anyone opting for that cadre
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would not be allowed to leave for three years. To overcome the problem, the RBI sought to create an entire new wing and hire fresh people, including industry veterans who would lead the teams. These new teams will also be given training in the latest technologies, so that they can also prevent another Yes Bank kind of event.
WAYS AND MEANS ADVANCES (WMA) Why in News? The Reserve Bank of India (RBI) YES BANK CRISIS increased the Ways and Means After the Yes Bank crisis, the bank regulator had Advances (WMA) limit of state superseded the board of Yes Bank and had placed governments. it under immediate moratorium. Additionally, withdrawals were also capped at Rs 50,000 from What is WMA? the bank. Section 17(5) of the RBI Act, 1934 Along with that, online banking fraud is drastically authorizes the RBI to lend to the Centre on the rise. Between October 1, 2019, and and state governments as WMA. December 31, 2019, in just 92 days there was a It can lend them only if they can repay loss of Rs 128 crore in frauds relating to debit it within 3 months from the date of cards, credit cards, and net banking. In the making the advance. quarter ending December 31, there were a The government makes an interest whopping 21,041 cases, wherein scheduled banks payment to the central bank when it reported 6 cases every minute. borrows money. The highest number of such frauds in the same The rate of interest is the same as period between October 1, 2019, and December 31, the repo rate, while the tenure is 2019, according to data from RBI, in only the three months. debit/ATM card category have been 11,058 cases The limits for WMA are mutually involving Rs 94.5 crore, followed by 6,117 credit decided by the RBI and the card frauds of Rs 19.7 crore, and 3,866 net- Government of India. banking frauds of Rs 13.6 crore. The 3-months saw a total of 21,041 cases of Rs 127.8 crore, overall. Types of WMA: There are two types of Ways and Means Advances — normal and special. Special WMA or Special Drawing Facility is provided against the collateral of the government securities held by the state. After the state has exhausted the limit of SDF, it gets normal WMA. The interest rate for SDF is one percentage point less than the repo rate. The number of loans under normal WMA is based on a three-year average of actual revenue and capital expenditure of the state.
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Why all these relaxations been made? Due to lockdown, the revenues are collapsing and uncertain. The expenditures for combating the novel coronavirus are mounting. Therefore, the states are facing an unprecedented cash crunch. Most of the states are slashing expenditures of other departments in order to meet COVID-19 exigencies However, these measures have not addressed the underlying problem of liquidity and cash flow mismatches So, will the increase in the WMA limits help? There is a likelihood of the total government borrowings crossing Rs 20 lakh crore. So a WMA limit of Rs 120,000 crore for the Centre and Rs 51,560 crore for states may prove grossly insufficient. What could be done further? Centre - The Centre may invoke Section 5(3) of its Fiscal Responsibility & Budget Management Act, 2003. This would allow the RBI to subscribe to the primary issues of Central Government securities under very specified grounds. Those cover, among other things, ―act of war‖ and ―national calamity‖. RBI - It may undertake increased secondary market purchases and sales of central and state government securities.
EMERGENCY CREDIT LINE GUARANTEE SCHEME (ECLGS), PRIME MINISTER‘S EMPLOYMENT GENERATION PROGRAMME (PMEGP) AND CREDIT GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES (CGTMSE). About ECLGS Under the Scheme, 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. 3 lakh crore to eligible MSMEs and interested MUDRA borrowers. The credit will be provided in the form of a Guaranteed Emergency Credit Line (GECL) facility. The Scheme would be applicable to all loans sanctioned under GECL Facility during the period from the date of announcement of the Scheme to 31.10.2020.
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Aims and objectives The Scheme aims at mitigating the economic distress faced by MSMEs by providing them additional funding in the form of a fully guaranteed emergency credit line. The main objective is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and NBFCs to increase access to, and enable the availability of additional funding facility to MSME borrowers. It aims to provide a 100 per cent guarantee for any losses suffered by them due to non- repayment of the GECL funding by borrowers. Salient features The entire funding provided under GECL shall be provided with a 100% credit guarantee by NCGTC to MLIs under ECLGS. Tenor of the loan under Scheme shall be four years with a moratorium period of one year on the principal amount. No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme. Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs. Benefits of the scheme The scheme aims to mitigate the distress caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector. The scheme is expected to provide credit to the sector at a low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses. By supporting MSMEs to continue functioning during the current unprecedented situation, the Scheme is also expected to have a positive impact on the economy and support its revival. Why in News Ministry of Micro, Small & Medium Enterprises (MSMEs), Finance Ministry and senior management of all banks held a meeting to review some of the key schemes of Ministry of MSME which generate a large number of jobs with low capital investment. The focus of the meeting was on the Prime Minister‘s Employment Generation Programme (PMEGP) and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). It was also emphasised that there is a need for providing support to the MSMEs by suitably restructuring the stressed loans at an early stage with the help of the banks.
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Prime Minister‘s Employment Generation Programme Launched in 2008-09, it is a credit-linked subsidy scheme which promotes self-employment through setting up of micro-enterprises, where subsidy up to 35% is provided by the Government through Ministry of MSME for loans up to ₹25 lakhs in manufacturing and ₹10 lakhs in the service sector. The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital. It is a flagship scheme of the Ministry of MSME. Implementation: National Level- Khadi and Village Industries Commission (KVIC) as the nodal agency. State Level- State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks. Eligibility: Any individual above 18 years of age, Self Help Groups, Institutions registered under Societies Registration Act 1860, Production Co-operative Societies and Charitable Trusts are eligible. Existing Units and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible. Only new projects are considered for sanction under PMEGP. Discussions on PMEGP in the meeting- Banks have supported setting up a large number of enterprises under PMEGP and it has particularly seen a two-fold increase in last Financial Year (2019-20) when more than 73,000 micro-enterprises were assisted. Further, to boost the PMEGP, the target in the current year has been increased to support the establishments of 80,000 units.
Credit Guarantee Fund Scheme (CGS) for Micro and Small Enterprises It was launched in 2000 by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme.
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The corpus of CGTMSE is being contributed by the GoI and SIDBI in the ratio of 4:1 respectively. The Ministry of MSMEs, GoI and Small Industries Development Bank of India (SIDBI) established a trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the CGS. Discussions on increasing the reach of CGTMSE in the meeting Government has set a target of increasing credit guarantee to ₹50,000 crores under this scheme, which is a jump of about 67% over the last year.
RIGHTS ISSUE Why in news Recent reports suggest that several companies, including Definition: Mahindra finance, Tata Power, Shriram Transport Finance . A rights issue is a among others are planning to raise funds through ―rights mechanism by which issue‖ amidst the Covid-19 pandemic. companies can raise Key Points additional capital from Reason: existing shareholders. Recently, Reliance Industries Limited (RIL) has . It is different from public concluded its rights issue and raised a total of Rs. issue (Initial Public Offer) 53,124 crore and witnessed an oversubscription of 1.59 and private placement. times. RIL‘s Rights Issue is India's largest rights issue. The successful rights issue of RIL and the big demand (oversubscription) shows that there is a huge demand in the market for the shares of companies with strong credentials at a good price.
Advantages: Disadvantages: . A company would offer a rights . Raising funds through the right issue issue in order to raise capital which might create pressure on the company. can be used to clear its debt . Value of each share may get diluted. obligations, acquire assets, or . If the share price decreases post rights facilitate expansion without having issue, then investors may lose the holding to take out a loan from a bank. value. . It is a more efficient mechanism . Holding value is an indicator of an of raising capital. Under it, there is asset that someone has in his/her portfolio. no requirement of shareholders‘ It is a value which sums the impacts of all meeting and an approval from the the dividends that would be given to the
board of directors is sufficient and holder in the future, to help them estimate
adequate. a price to sell or buy assets.
. Therefore, the turnaround time . Stock exchanges put a restriction on
for raising this capital is short and is the amount on which a company can raise
much suited for the current via the right issue.
situation (Covid-19 pandemic).
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Reforms Under Rights Issue: The Securities and Exchange Board of India (SEBI) has provided some permanent reforms in the rights issue, it has also provided some temporary relaxations in the wake of Covid-19 pandemic. Permanent Reforms: In November 2019, SEBI streamlined the rights issue process and the timelines for completion was significantly reduced from T+55 days to T+31 days — a 40% cut in the time. The ‗T‘ stands for transaction date, which is the day the transaction takes place. It has also reduced the notice period of rights issue to at least 3 working days from 7 days earlier.
Temporary relaxations: SEBI relaxed certain guidelines for right issues that open on or before 31st March, 2021. It reduced the eligibility requirement of average market capitalisation of public shareholding from Rs. 250 crore to Rs. 100 crore for a fast track rights issuance. Market capitalisation is the value of a company that is traded on the stock market. It is calculated by multiplying the total number of shares by the present share price. It reduced the minimum subscription requirement from 90% to 75% of the issue size. Listed entities raising funds upto Rs. 25 crores (erstwhile limit was Rs. 10 crores) through a rights issue are now not required to file draft offer documents with SEBI. Listed Entity means an entity which is listed on a recognised stock exchange(s).
RBI‘S DEBT RESOLUTION NORMS The Reserve Bank of India has issued a new set of norms for dealing with stressed Lenders shall recognise incipient or Non-Performing Assets (NPA‘s) assets in stress in loan accounts, immediately the banking sector. on default, by classifying such assets Resolution Plans like corporate debt as special mention accounts (SMA). restructuring scheme, strategic debt SMA-0 categories will be treated as restructuring scheme, change in default case fit for insolvency ownership outside SDR, sustainable resolution if they fail to pay the structuring of stressed assets, joint principal or interest due on them lenders forum and flexible structuring of within 0-30 days. existing long-term project loans are SMA-1 defaulters will be taken withdrawn. for Insolvency and Bankruptcy Apart from banks, new norms are also Code (IBC) if they don't pay applicable for Non-Banking Financial between 31-60 days. Companies, Small Finance Banks and SMA-3 firms will be treated other Financial Institutions. for National Company Law Tribunal (NCLT) in case of no payment of dues within 61-90 days. 35 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
Revised Norms Lenders will get a 30 day review period to frame a resolution strategy, unlike previous norms that compelled lenders to start a resolution strategy even if there was a one day default. Lenders should initiate the process of implementing a resolution plan (RP) even before a default. Resolution plan involving restructuring/change in ownership of accounts where the aggregate exposure of lenders is Rs 100 crore and above, will require independent credit evaluation (ICE) of the residual debt by credit rating agencies (CRAs) specifically authorized by the Reserve Bank for this purpose. Accounts with aggregate exposure of Rs 500 crore and above shall require two such ICEs, others shall require one ICE. Lenders will have to submit a weekly report to the RBI on defaults by borrowers with exposure of ₹5 crore and above. System of disincentives in the form of additional provisioning for delay in implementation of resolution plan or initiation of insolvency proceedings. Additional provisions will have to be made by the banks as a percentage of total outstanding. There will be 20 provisions if the resolution is not implemented in 180 days from the end of the review period. Banks will have to make another 15% provision (total additional provisioning of 35 per cent) if the resolution is not done in 365 days. Any action by lenders with an intent to hide the actual status of accounts or evergreen the stressed accounts, will be subjected to stringent supervisory or enforcement actions, including higher provisioning on such accounts and monetary penalties. In order to implement resolution plan, lenders will have to sign inter creditor agreement (ICA), within the review period, (ICA will provide ground rules for finalization and implementation of the resolution plan.)
RESERVE BANK OF INDIA (RBI) HAS PROPOSED STRINGENT NORMS FOR HOUSING FINANCE COMPANIES Why in NEWS? As per a review conducted by RBI, Housing Finance Company (HFC) will now be considered under the category of non-banking financial company (NBFC). RBI has suggested stringent norms for housing companies by mandating 75 per cent of their home loans to individual borrowers and 50 per cent of assets as their housing loans by March 2024. The conversion is said to happen in a staggered manner, i.e. 60 per cent in March 2022, 70 per cent in March 2023 and 75 per cent in March 2024.
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Proposals in the draft Framework: RBI have said in its draft regulation A housing finance will now mean ―financing, for purchase/construction/reconstruction/ renovation/ repairs of residential dwelling unit and some other activities, including giving loans to corporate and Background: government agencies for employee Any non-banking finance company can operate as housing projects‖. a housing finance company, subject to the All other loans, including those fulfilment of basic requirements as specified in the given for furnishing dwelling units, Companies Act, 1956. loans given against mortgage of The company should have its primary property for any purpose other than business of providing finance for housing, buying/construction of a new whether directly or indirectly. dwelling unit/s or renovation of the The company should obtain a certificate of existing dwelling unit/s, will be registration (COR) from the National treated as non-housing loans. Housing Bank (NHB). The company Following the review of the rules, conducting such business without a COR is home financiers will now be an offense punishable under the provisions regulated as a category of non- of the National Housing Bank Act, 1987, banking financial companies. A also the NHB can demand the winding up of company is treated as an NBFC if such company. its financial assets are more than However, under the NHB regulations, there 50% of its total assets and income was no formal definition of housing finance. from financial assets is more than Last year in August 2019, the Government 50% of the gross income. had transferred the regulatory control of RBI also proposed the definition of HFCs from National Housing Bank (NHB) qualifying assets for housing finance to RBI. companies (HFCs). It said at least 50% of net assets should be in the nature of ‗qualifying assets‘ for RBI also classified housing finance HFCs, of which at least 75% should companies as systemically important and be towards individual housing non-systemically important. loans. Non-deposit taking HFCs with asset size The RBI defined ‗qualifying assets‘ of ₹500 crore and above; and all deposit as loans to individuals or a group of taking HFCs irrespective of asset size will individuals, including co-operative be treated as systemically important societies, for construction/purchase HFCs. of new dwelling units, loans to HFCs with asset size below ₹500 crore individuals for renovation of existing will be treated as non-systemically dwelling units, lending to builders important HFCs. for construction of residential dwelling units. 37 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
Such HFCs which do not fulfil the criteria will be treated as NBFC – Investment and Credit Companies (NBFC-ICCs) and will be required to approach the RBI for conversion of their Certificate of Registration from HFC to NBFC-ICC. The regulator said that a HFC could either undertake an exposure on a group company in real estate business or lend to retail individual homebuyers in the projects of group entities, but could not do both. RBI has proposed to double the minimum net owned funds for HFCs to ₹20 crore and align the capital requirements of all HFCs with NBFCs over a period of two years. For HFCs, minimum capital risk-weighted assets ratio (CRAR) is currently at 12%, which will be increased to 14% by 31 March 2021 and 15% by 31 March 2022.
Conclusion: HFCs/ NBFCs aren‘t really a hit among the salaried homebuyer, with an average credit score for whom low rates are the key concern. These were the choicest destination for borrowing for people who cared not about the rates but needed quick loan disbursals without much paperwork. With the RBI coming in, the lending processes would be at par with the banking system. This means, a borrower would have to fulfil every condition to get a loan from an NBFC as they would have to do in case of a bank. These draft regulations will address the concerns on double financing due to lending to construction companies in the group and also to individuals purchasing flats from the latter, the HFC concerned may choose to lend only at one level. With a few other tightening of regulations, we may anticipate that the valuation-driven hunger for HFC licenses over the past few years will ebb and effecting only serious players to stay in this industry.
ADJUSTED GROSS REVENUE(AGR) ISSUE What is AGR? Telecom operators are required to pay license DoT‘s definition fee and spectrum charges in the form of The calculations should incorporate all ‗revenue share‘ to the Centre. The revenue amount revenues earned by a telecoazm used to calculate this revenue share is termed as company – including from non- telecom the AGR. sources such as deposit interests and
sale of assets. How long has the fight been going on? Companies Differ: The slugfest between DoT and the telecom The companies, however, have been of companies has been on since 2005. the view that AGR should comprise the 2005 -Cellular Operators Association of India — revenues generated from telecom the lobby group for players such as Airtel and services only and non-telecom revenues Vodafone Idea — challenged the DoT‘s definition should be kept out of it. for AGR calculation.
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In 2015, the TDSAT ruled that the AGR included all receipts, except capital receipts and revenue from non-core sources such as rent, profit on the sale of fixed assets, dividend, interest and miscellaneous income, etc. The government, meanwhile, continued to raise the issue of under-reporting of revenues to duck charges. The Comptroller and Auditor General of India (CAG), in a recent report, blamed the telecom companies for ―understating revenues‖ to the tune of Rs 61,064.5 crore. The latest petition by SC Verdict 2019 December: the DoT was being heard in the Supreme The bench upheld the definition of AGR Court, wherein the DoT sought interest, calculation as stipulated by the DoT. penalty and interest on penalty on the That is bad news for an already beleaguered outstanding amount. These amounted to Rs telecom sector, which would need to cough up 92,641 crore (disputed actual demand is Rs the pending payments. 23,189 crore, levy of Interest of Rs 41,650 crore, penalty of Rs 10,923 crore and interest on penalty of Rs16,878 crore)
IBC ORDINANCE Government of India intended to suspend the applicability of Section 7, 9 and 10 of the Insolvency and Bankruptcy Code, 2016 (Code). However, the text or language of Section 10A The Ordinance provides for two was not in the public domain, and there was amendments: uncertainty on how such suspension would 1. The introduction of a Section 10A, affect the initiation of corporate insolvency suspending initiation of proceedings resolution process (CIRP) under the Code. The under the Code, and uncertainty has now been laid to rest pursuant 2. The introduction of Section 66(3) to the Insolvency and Bankruptcy Code suspending the application of (Amendment Ordinance), 2020. wrongful trading provisions under the The key amendment, of course, relates to Code when Section 10A is applicable. the introduction of Section 10A. This section prevents an application from ever being filed for initiation of a CIRP under Sections 7, 9 and 10 of the Code for a default occurring on or after March 25 till September 25 or March 25, 2021, as the case may be. An explanation to the Section also provides that Section 10A of the Code shall not apply to any default committed under the said Section before March 25.
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What does Section 10A prevent? The effect of Section 10A is to prevent an application from ever being filed for initiation of a CIRP under Sections 7, 9 and 10 of the Code for a default occurring on or after March 25 till September 25 (which may be extended to March 25, 2021). This would mean that CIRPs, which result in the application of a moratorium and change in control, will not be initiated for defaults occurring in this period. The debtor will remain in possession, and the board of the company would not be suspended. No resolution professional will be appointed. It is critical to note that applications under the other sections of the Code, including Sections 94 and 95 applicable to guarantors are not prevented from being filed. Further, the institution of normal civil proceedings or special civil proceedings for recovery of debt, including under the Recovery of Debts and Bankruptcy Act, 1993, and the SARFAESI Act, 2002, are not suspended nor affected by this Ordinance. Does the Ordinance have an impact on applications already filed or on ongoing CIRPs under the Code? The Explanation to Section 10A provides that the section would not apply to any default committed under the said section before March 25. This means that applications under Section 7, 9 and 10 of the IBC, which are pending admission or filed for defaults, which have occurred prior to March 25 shall continue and may be admitted on merit. CIRPs in such cases could clearly be ordered or continued. Further, since no other provisions of the Code are suspended, ongoing CIRP proceedings may continue, and resolution under Sections 30 and 31, and even withdrawal under Section 12A, may be permitted in accordance with the law.
URBAN, MULTI-STATE COOPERATIVE BANKS TO COME UNDER RBI SUPERVISION Why in News? Centre has decided to bring all urban and multi-State cooperative banks under the direct supervision of the Reserve Bank of India (RBI). Government banks, including 1,482 urban cooperative banks and 58 multi-state cooperative banks, are now being brought under supervisory powers of Reserve Bank of India (RBI). After the Punjab and Maharashtra Cooperative (PMC) Banks fiasco last year, the Union Cabinet in February amended Banking Regulation Act to strengthen the cooperative banks in the country. There are more than 8.6 crore depositors in over 1,500 urban and multi-state cooperative banks across the country.
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Problems due to dual control: The major hurdle faced by co-operative banks is the dual control by two authorities viz., Reserve Bank of India and State Co-operative Department. Problems due to Dual Control are as given below: a. Two Inspections/Audits b. Submission to Two Authorities c. Delay in obtaining Approval d. Different Approach: Many ratios e.g. CD ratio, CAMELS ratings etc are being calculated by two authorities on different bases. e. Non-professional Approach of Govt. Department: State Govt. bodies are not that so professional in nature as to be able to control the present vast system of co-operative banks, and because of this, very often a lot of delay takes place in taking major decisions.
Other issues with the co-operative banks: a. Poor InfraStructure: Highly professional staff is not eager to work in the UCBs due to their amenities/facilities provided by management: UCB staff is deprived of general amenities and facilities like those provided by commercial and other banks to their staff. b. Deregulated Working Hours: Working hours in UCBs are not fixed. The Staff knows the time of reporting to Bank but is not certain when they shall be relieved from duty in the Bank in the evening. Thus the staff is heavily burdened with work. c. Poor Salary & Wage poor Wage Structure Urban Co-operative Banks (UCBs) are d. Faulty Recruitment System: In most of the either scheduled or non-scheduled. UCBs, appointment of staff is not done on Scheduled and non-scheduled UCBs merits but on other factors, like relationship are again of two kinds- multi-state and with the director, workers of the political those operatinag in single state. In parties, money power etc. India, co-operative banks are registered e. Concentration of Powers: In some UCBs the under the States Cooperative Societies powers are centralized in the hands of a few Act. They also come under the Directors, which neutralizes the basic concept regulatory ambit of the Reserve Bank of of democracy; the decisions are taken as per India (RBI) under two laws, namely, the the will and whims of these powerful directors. Banking Regulations Act, 1949, and the
Banking Laws (Co-operative Societies) Why this move is necessary? Act, 1955. 1. RBI is a more professional body which leads to efficiency in the way of working due to quick decision making. 2. Corruption and Scams: Urban cooperative banks (UCBs) have reported nearly 1,000 cases of fraud worth more than Rs 220 crore in the last five fiscals, according to the Reserve Bank of India (RBI). 3. All the matters relating to administration of the UCBs are entrusted to the co-operative department where the banks have to face many problems due to red tape. So, it will be
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preferable to place them under the single control of RBI which will bring qualitative improvement in the working of UCBs. 4. Audit Fees: The Bank has to pay heavy Audit fee for Statutory Audit whereas the RBI is not charging anything on their Inspection. Depositors will get protection and benefit out of this decision. It is thought to be a panacea for the above detailed issues faced by the Cooperative banks in India.
WHAT ARE PRE-PACKS UNDER THE PRESENT INSOLVENCY REGIME? Pre-packs under IBC The ministry of corporate affairs (mca) has set up a committee to look into the possibility of including what are called ―pre-packs‖ under the current insolvency regime to offer faster insolvency resolution under the insolvency and bankruptcy code (ibc), while maintaining business continuity and thereby preserving asset value and jobs. What is a pre-pack? slow progress in the resolution of distressed A pre-pack is an agreement for the companies has been one of the key issues raised by resolution of the debt of a creditors regarding the corporate insolvency distressed company through an resolution process (cirp) under the ibc with 738 of agreement between secured 2,170 ongoing insolvency resolution processes having creditors and investors instead of a already taken more than 270 days at the end of public bidding process. This march. Under the ibc, stakeholders are required to system of insolvency proceedings complete the cirp within 330 days of the initiation of has become an increasingly popular insolvency proceedings. mechanism for insolvency (supreme court struck down the 330-day deadline) resolution in the uk and europe What are the other key benefits of a pre-pack? over the past decade. In the case of pre-packs, the incumbent management In india‘s case, such a system retains control of the company until a final would likely require that financial agreement is reached, that transfer of control from creditors agree on terms with the incumbent management to an insolvency potential investors and seek professional as is the case in the cirp leads to approval of the resolution plan disruptions in the business and loss of some high- from the national company law quality human resources and asset value. tribunal (nclt). What are some of the drawbacks of pre-pack? This process would likely be The key drawback of a pre-packaged insolvency completed much faster than the resolution is the reduced transparency compared to traditional cirp which requires that the cirp as financial creditors would reach an the creditors of the distressed agreement with a potential investor privately and not company allow for an open auction through an open bidding process. Experts said this for qualified investors to bid for the could lead to stakeholders such as operational distressed company. creditors raising issues of fair treatment when financial creditors reach agreements to reduce the liabilities of the distressed company.
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WHAT IS THIS CURRENCY SWAP ARRANGEMENT (CSA)? India is working with the united states to secure a dollar swap line that would help in better management of its external account and provide extra cushion in the event of an abrupt outflow of funds, according to banking industry and government sources. How does a swap facility work? In a swap arrangement, the us fed provides dollars to a foreign central bank, which, at the Currency swap agreement same time, provides the equivalent funds in Currency swap agreements involve its currency to the fed, based on the market trade in local currencies, where exchange rate at the time of the transaction. countries pay for imports and exports The parties agree to swap back these at pre-determined rates of exchange quantities of their two currencies at a without the involvement of a third specified date in the future, which could be country currency like the us dollar. the next day or even three months later, using It reduces the risk of volatility against the same exchange rate as in the first the third currency, and does away transaction. with the charges involved in multiple These swap operations carry no exchange rate currency exchanges. The swap or other market risks, as transaction terms agreements will help address possible are set in advance. the absence of an short-term liquidity mismatches, and exchange rate risk is the major benefit of such supplement existing international a facility. financial arrangements. Does India have a swap line with any other country? in 2019, india signed a $75 billion bilateral currency swap line agreement with japan, which has the second largest dollar reserves after china. this facility provides india with the flexibility to use these reserves at any time in order to maintain an appropriate level of balance of payments or short-term liquidity. last november, to further financial stability and economic cooperation within the saarc region, the rbi put in place a revised framework on currency swap arrangement for saarc countries for 2019-22. this facility originally came into operation on november 15, 2012 to provide a backstop line of funding for short-term foreign exchange liquidity requirements or balance of payment crises until longer term arrangements were made. under the framework for 2019-22, rbi will continue to offer a swap arrangement within the overall corpus of $2 billion. other countries can withdraw funds in the us dollar, the euro, or the Indian rupee.
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NATIONAL FINANCIAL REPORTING AUTHORITY (NFRA). Why in NEWS? The National Financial Reporting Authority (NFRA) has found various lapses in the statutory audit of IL&FS Financial Services Limited for 2017-18 that was done by BSR & Associates LLP. NFRA has issued the Audit Quality Review Report (AQRR) of the Statutory Audit for the year 2017-18 of IL&FS Financial Services Ltd Background: In the wake of accounting scams, a need was felt to establish an independent regulator for enforcement of auditing standards and ensuring the quality of audits so as to enhance investor and public confidence in financial disclosures of companies. The National Financial Reporting Authority (NFRA) was constituted on 1st October, 2018 by the Government of India under section 132 (1) of the Companies Act, 2013. The National Financial Reporting Authority (NFRA) is administered by the Ministry of Corporate Affairs. National Financial Reporting Authority (NFRA) Jurisdiction: The jurisdiction of NFRA for investigation of CAs and their firms under Section 132 of the Companies Act would extend to large public companies that are not listed and listed companies. It can probe listed companies and those unlisted public companies having paid-up capital of no less than Rs 500 crore or annual turnover of no less than Rs 1,000 crore. It is at the discretion of the Central Government to refer such other entities for investigation, involving public interest. It can investigate professional misconduct committed by members of the Institute of Chartered Accountants of India (ICAI) for prescribed class of body corporate or persons. Under the provision of the Chartered Accountant Act of 1949, the essential role of ICAI (Institute of Chartered Accountants of India) will continue in respect of its members in general and explicitly concerning audits about private limited companies, and public unlisted companies below the threshold limit to be notified in the rules. ICAI would continue playing the advisory role with respect to accounting and auditing standards and policies through recommendations to the NFRA.
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Quality audit with respect to public companies that are not listed and are below the prescribed threshold, private companies that are listed and those companies delegated by the NFRA would be continued to be done by the Quality Review Board (QRB). NFRA Benefits The expected benefits of having the NFRA are listed below. India gains eligibility for IFIAR (International Forum of Independent Audit Regulators), which was denied earlier, resulting in enhancing the confidence of Foreign/Domestic investors and India‘s position on a global scale. Increase in foreign/domestic investors. Economic growth. IFIAR eligibility proves our international standards of business, further supporting globalization. Further development of the auditing profession. Establishment of NFRA will free resources for the ICAI to work on developing new and complex skills needed in the uncertain world of technology.
BILATERAL TRADE AND INVESTMENT AGREEMENT (BTIA) Why in NEWS? At the upcoming Virtual ―EU- India Summit‖, The European Union is seeking an ambitious and comprehensive bilateral trade and investment agreement (BTIA) with India and not in favour of an early harvest pact covering fewer areas. Background: India and the European Union continue to struggle to conclude a bilateral Free Trade Agreement even a decade after the negotiations were first launched in 2007. The BTIA negotiations have remained deadlocked over growing differences regarding greater market access sought by both sides for merchandise exports. The negotiations cover: European Union stated that there is a Trade in Goods, Trade in Services, trend in India that goes towards the Investment, Sanitary and Phytosanitary protectionist side. The Make in India Measures, Technical Barriers to Trade, programme was accelerated by the COVID- Trade Remedies, Rules of Origin, Customs 19 crisis and recent pronouncements that and Trade Facilitation, Competition, Trade India wants to go ‗Self-reliant‘, didn‘t help Defence, Government Procurement, Dispute the situation. Settlement, Intellectual Property Rights & Bilateral trade with India formed under Geographical Indications, Sustainable 3% of the E.U.‘s global trade, which is ―far Development. below‖ what was expected of the relationship. It stated that India maintains a quiet protectionist stance when it comes to offering us tariff relaxations.‖ It has reservations about the model ―Bilateral Investment Treaty‖ (BIT) that India has proposed, especially on dispute mechanisms in Indian courts.
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About BTIA: In June 2007, India and the EU began negotiations on a broad-based Bilateral Trade and Investment Agreement (BTIA) in Brussels, Belgium. These negotiations are pursuant to the commitment made by political leaders at the 7th India- EU Summit held in Helsinki on 13th October 2006 to move towards negotiations for a broad- based trade and investment agreement on the basis of the report of India-EU High Level Technical Group. Significance: India and the EU expect to promote bilateral trade by removing barriers to trade in goods and services and investment across all sectors of the economy. Both parties believe that a comprehensive and ambitious agreement that is consistent with WTO rules and principles would open new markets and would expand opportunities for Indian and EU businesses. Present issues: Conclusion: Positively, Recent political developments including Brexit, eurozone uncertainty, sluggish global growth rates and trade tensions from the Trump administration‘s pursuit of a protectionist agenda—all have serious implications for future trade talks. These could make the partners to review their red lines and return to the negotiating table. A strong partnership would help both the EU and India become global decision-makers and tackle the challenges caused by the disruption of global order collectively.
EQUALISATION LEVY ON FOREIGN E-COM FIRMS. Why in news? Recently, the Central government has stated that it will not extend the deadline for payment of equalization levy by non-resident e-commerce players, even though a majority of them are yet to deposit the first installment of the tax.
Penalty:
1. As per law, late-payment would attract interest at the rate of 1% per month or part
of the month.
2. Non-payment could result in a penalty equal to the amount of equalisation levy,
along with interest.
In India, the deadline for the first instalment of the 2% equalization levy was on July
7.
After missing that deadline, US firms such as Amazon and Walmart-owned Flipkart,
through a lobby group for American companies, asked the government to defer the
deadline.
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Equalization Levy: The equalization levy is aimed at taxing foreign companies which have a significant local client base in India but are billing them through their offshore units, effectively escaping the country‘s tax system. Equalisation levy at 6% has been in force since 2016 on payment exceeding Rs 1 lakh a year to a non-resident service provider for online advertisements. It is now applicable for e-commerce companies that are sourcing revenue from Indian customers without having tangible presence here in the country. The amendments to the Finance Act, 2020 had expanded the ambit of the equalization levy for non-resident e-commerce operators involved in supply of services, including online sale of goods and provision of services, with the levy at the rate of 2% effective April 1, 2020. The tax applies on e-commerce transactions on websites such as Amazon.com. Google in particular as the tax applies on advertising revenue earned overseas if those ads target customers in India.
Budget 2021-22 Proposals on Equalisation Levy: 1. Royalty and fees for technical services payments excluded from the ambit of EL 2. Applicability of EL widened o The definition of ‗e-commerce supply or services‘ includes within its ambit ‗online sale of goods‘ and ‗online provision of services‘ and the Bill proposes activities that would be included within the ambit of ‗online sale of goods‘ and ‗online provision of services‘. 3. Double taxation eliminated
Issues with EL: Tax experts point out that there are practical difficulties in getting PAN and many companies are not paying the equalisation levy as there is still considerable confusion and lack of clarity on the applicability of the same. o It is believed that the requirement of having a PAN and an Indian bank account could cause administrative delays in remittance by non-residents. The levy has several issues that primarily include wide coverage (even non-e-commerce companies could be covered), lack of clarity on how consideration needs to be determined especially in cases where the income is minuscule compared to the transactions facilitated by the non-resident e-commerce operators. o Even transactions between non-residents are covered and this according to tax experts would be an extraterritorial overreach along with practical difficulty in implementation. The US Trade Representatives Body (USTR) launched an investigation into the digital ta xes imposed by 10 countries including India, on American companies, after some companies had argued that the levy was discriminatory. 47 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
The US companies have previously also asked the Indian government to charge the 2% equalization levy only on the facilitation fee for each transaction, and not on the transaction amount as a whole. In its reply to the Section 301 probe by USTR, India said that the levy was in accordance with the World Trade Organization (WTO) norms and international taxation agreements. The threshold application of the 2% equalization levy in India, which is annual revenue more than $20 Mn, is low and meant to exclude smaller ecommerce operators globally. The government has said that the levy helps in ensuring a just and competitive e-commerce sector in the country, where both local ecommerce players and their smaller sellers, and multinational ecommerce companies with a strong presence in India, are on an equal footing as far as their taxation is concerned. Conclusion: Globally, the digital tax, also known as ‗Google Tax‘, is seen as an effective measure for taxing ecommerce companies, who have a strong presence in India, but by billing their customers from offshore units, escape the purview of the country‘s tax regime. The equalisation levy in India does not discriminate against non-resident e-commerce operators. The underlying policy objective and application of India‘s equalisation levy is to ensure neutral and equitable taxation is applicable to e-commerce operators that are resident in India, or have a physical presence in India, and those not resident in India. Further, India flagged the lack of consensus among countries during the consultations held under the G20-OECD framework, adding that google tax is an additional safeguard against ‗base erosion and profit shifting‘ (BEPS) and loss of revenue due to activity of such e- commerce firms operating in India. So there needs to be an international consensus on taxation on a digital economy.
FINANCIAL AND TECHNOLOGICAL COMMITMENTS UNDER UNFCCC AND PARIS AGREEMENT. Why in NEWS? The 4th edition of the virtual Ministerial on Climate Action was organised to advance discussions on implementation of the Paris Agreement under the United Nations Framework Convention on Climate Change (UNFCCC). It was co-chaired by European Union, China and Canada. The participating countries exchanged their views on how they are aligning economic recovery plans amid Covid-19, with the Paris Agreement. India highlighted that developed country parties have not fulfilled their promise for extending financial and technological support to developing countries as envisaged under UNFCCC and its Paris Agreement. India hoped that in during 2020, the promised amount will be mobilized and delivered, for further strengthening climate actions in developing countries. The developed countries had promised to provide USD 1 trillion by 2020.
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Background: The Paris Agreement is a historic international accord signed in 2015, that brings almost 200 countries together in setting a common target to reduce global greenhouse emissions in an effort to fight climate change. The Paris Agreement comes under the broad umbrella of the United Nations Framework Convention on Climate Change (UNFCCC). The UNFCCC was adopted in 1992 at the Rio Earth Summit, which marked the beginning of the international community‘s first concerted effort to confront the problem of climate change. Known also as the Rio Convention, the UNFCCC established a framework for action to stabilise concentrations of greenhouse gases in the earth‘s atmosphere. The UNFCCC entered into force in 1994. Kyoto Protocol (1997) was another major international commitment under UNFCCC. The pact seeks to keep global temperature rise to below 2 degrees celsius from pre-industrial levels, and to try and limit the temperature increase even further to 1.5 degrees Celsius. For this, each country has pledged to implement targeted action plans that will limit their greenhouse gas emissions. Under the agreement, rich and developed countries will provide financial and technological support to the developing world in their quest to fight and adapt to climate change.
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India‘s Efforts in Combating Climate Change: 1. India has provided 80 million LPG connections under the Pradhan Mantri Ujjwala Yojana (PMUY) in rural areas, providing the people with clean cooking fuel and a healthy environment. 2. It has distributed more than 360 million LED bulbs under the UJALA scheme, which has led to energy saving of about 47 billion units of electricity per year and reduction of 38 million tonnes of CO2 per year. 3. India has also shifted from Bharat Stage-IV (BS-IV) to Bharat Stage-VI (BS-VI) emission norms from 1st April 2020 which was earlier to be adopted by 2024. 4. It had levied a coal cess as part of one of the most explicit green initiatives. 5. Under Smart Cities Mission, Climate Smart Cities Assessment Framework 2019 has been launched which intends to provide a clear roadmap for cities and urban India towards combating climate change through adoption of both mitigation and adaptation measures.
Way Forward India has to make a huge effort to achieve its target of 175 GW of renewable power capacity by 2022. It is way behind its target. The funding commitment made by developed countries has become more important due to the economic challenge posed by Covid-19 pandemic.
SPECIAL LIQUIDITY SCHEME FOR NBFCS AND HFCS. Why in NEWS? Ministry of Finance launched a new Special Liquidity Scheme for Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) to improve liquidity position of the NBFCs/HFCs in order to avoid any potential systemic risks to the financial sector. Background: Even on 13th March 2020, Finance Minister had announced about the launch of a Special Liquidity Scheme of Rs. 30,000 crore. It has been announced in the Budget Speech of 2020-21 that a mechanism would be devised to provide additional liquidity facility to NBFCs/HFCs over that provided through the Partial Credit Guarantee Scheme (PCGS).
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This facility would supplement the liquidity measures taken so far by the Government and RBI. The Scheme would benefit the real economy by augmenting the lending resources of NBFCs/HFCs/MFls. There is an urgency to implement the above Budget announcement to strengthen financial stability on account of the emerging situation of Covid-19.
Key features of the scheme: RBI will provide funds for the Scheme by subscribing to government guaranteed special securities issued by the Trust. The total amount of such securities issued outstanding shall not exceed Rs. 30,000 crores at any point of time. Government of India will provide an unconditional and irrevocable guarantee to the special securities issued by the Trust.
Details of the Scheme: Under the scheme a Special Purpose Vehicle (SPV) would be set up to manage a Stressed Asset Fund (SAF) of the NBFCs/ HFCs. The SPV will issue securities, which would be guaranteed by the Government of India and purchased by the Reserve Bank of India (RBI) only. The proceeds of sale of such securities would be used by the SPV to acquire short-term debt of NBFCs/HFCs. The Scheme will be administered by the Department of Financial Services (Ministry of Finance).
Eligibility for NBFCs/ HFCs: 1. They should not have net Non-Performing Assets (NPAs) of more than 6% as on 31st March 2019. 2. They should have made net profit in at least one of the last two preceding financial years of 2017-18 and 2018-19. 3. They should not have been reported under SMA-1 or SMA-2 category by any bank for their borrowings during the last one year prior to 1st August 2018. Banks classify borrowers into Special Mention Accounts (SMA) based on their delay in repayment. SMA-0 loans are overdue between 1 and 30 days. SMA-1 loans are overdue between 31 and 60 days. SMA-2 loans are overdue between 61 to 90 days.
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Financial implication: The direct financial implication for the Central government is Rs. 5 crore, which may be the equity contribution to the SPV. Beyond that, there is no financial implication for the government until the guarantee involved is invoked. However, on invocation, the extent of government liability would be equal to the amount of default subject to the guarantee ceiling, which has been set at Rs. 30,000 crore.
Conclusion The Benefit of a such a decision by the Union government is unlike the Partial Credit Guarantee Scheme, NBFCs/ HFCs do not have to liquidate their current asset portfolio under this scheme. (Current assets are all the assets of a company that are expected to be used as a result of standard business operations over the next year). The scheme would also act as an enabler for the NBFC to get investment grade for bonds issued.
NON-BANKING FINANCIAL COMPANIES- MICROFINANCE INSTITUTIONS (NBFC-MFIS) Some of the MFIs, that qualify certain About NBFC-Microfinance institutions criteria and are non-deposit taking entities, MFIs are financial institutions that come under RBI for NBFC Regulation provide loans and other financial and supervision. services to poorer sections of society. The objective of covering them under RBI Usually, their area of operations of was to make these NBFC MFIs healthy extending small loans are rural areas and accountable. They have to get NBFC and among low-income people in urban License with RBI and fulfill the conditions areas as laid down for them. These “Last Mile Financiers” are New Guidelines for NBFC-MFI known as NBFC MFI or Non-Banking NBFC MFI is a non-deposit taking Financial Company-Microfinance NBFC (other than a company licensed Institutions. u/s 25 of the Indian Companies Act, 1956) that meets the following conditions: Minimum Net Owned Funds (NOF) of Rs.5 crore. (For those registered in the North Eastern Region of the country, Rs. 2 crores is required as minimum NOF). At least 85% of its Total Net Assets are in the nature of ―Qualifying Assets.‖ For Existing NBFCs, All NBFCs already registered with RBI, which want to convert to NBFC MFI, are to seek registration with RBI, subject to the condition that they NOF at Rs. 5 crores.
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If this condition is not fulfilled, they must ensure that loans to the Microfinance sector (i.e. individuals, Self Help Groups, or Joint Liability Groups) will be less than 10% of its Total Assets. To encourage NBFCs operating in the North Eastern Region, the minimum NOF is to be maintained at Rs. 2 crore How it differs from other NBFC‘s: An NBFC, not qualifying as an NBFC MFI, is not to extend loans to the micro-finance sector, which, in aggregate, is more than 10% of its total assets. The only difference between an NBFC MFI and other NBFC is that while other NBFCs can operate at a very high level but MFIs cater to only the smaller level of social strata, with the need of smaller amounts as loans. Regulatory Structure for NBFC MFI Pre-Registration Conditions For New NBFC registration process of NBFC is complex and time taking (it takes at least 2-3 months) due to the requirement of NBFC Registration from RBI. To register as an NBFC, the business needs to be registered as a Company under the Companies Act, 2013. Have a minimum NOF of Rs.5 crore (other than those registered in the North Eastern Region of the country who require NOF of Rs.2 crore).
RBI DATA LOCALISATION NORMS What has happened now to bring this into focus? As of now, much of cross-border data transfer is governed by individual Data localization bilateral ―mutual legal assistance Data localization is a concept that the personal treaties‖ (MLATs). data of a country‘s residents should be In early April 2019, the RBI issued a processed and stored in that country. circular mandating that payment data Some directives may restrict flow entirely, while be stored only in India by October 15. others more leniently allow for conditional data This covered everyone from Mastercard sharing or data mirroring – in which only a copy and Visa to WhatsApp Payments and has to be stored in the country. PayTM. Currently, the RBI has not instituted any fines for those who have missed the deadline but is seeking schedules of pending data transfers to India.
How debates on Localization Norms have evolved recently In late July, a data protection draft law by a committee headed by retired Justice B N Srikrishna recommended that all personal data of Indians have at least one copy in India. A subset of that data, labelled critical personal data, must be stored and processed only in India. Around that time, a leaked draft of the government‘s e-commerce policy recommended localisation for ―community data [and] data generated by users in India from various sources including e-commerce platforms, social media, search engines‖. It also discussed strategies to ―incentivise domestic data storage in India‖ through facilitating data infrastructure.
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―There could be, say a 2-year, sunset Concerns about Data Security period for industry to adjust before WhatsApp‘s firm stance on encrypted localisation becomes mandatory,‖ the content frustrated government officials. report stated. In addition, proponents highlight security against foreign attacks and surveillance, Who is for it? which opponents consider a weak argument A common argument of government in cases of data mirroring. officials — both in rhetoric and in law — Concerns also rose when Facebook declared is that localisation will help Indian law that its Cambridge Analytica controversy enforcement access data. The April RBI had affected Indian users as well. Along circular stated that ―to ensure better with fervent government support, most monitoring, it is important to have domestic-born technology companies (which unfettered supervisory access to data tend to have heavy foreign investments) stored with these system providers‖. support data localisation, and most of them PayTM (backed by Alibaba and store their data exclusively in India. Softbank) has ―Data is the new oil‖ also provides a backbone to much of the localisation consistently drive. In the home of the largest open Internet market in the world, supported companies like PhonePe claim that national wealth creation relies on in- localisation house data storage. The e-commerce policy took on a similar stance, (without championing domestic innovation, and the data protection report also mirroring). mentioned harnessing India‘s digital economy. Reliance Jio, in a response to TRAI, has strongly argued that data regulation for privacy and security will have little teeth without localisation, citing models in China and Russia. What do other countries do? Russia has the most restrictive regulation for data flow with strict localisation and high penalties. The European Union‘s General Data Protection Regulation (GDPR) does not mandate all data to be localised, but rather restricts flow to countries with a Strong data protection network. The China government mandates localisation for all ―important data‖ held by ―critical information infrastructure‖ and any cross border personal data transfer must undergo a security assessment. The United States leaves regulation up to the state and sector., President Donald Trump signed the Clarifying Lawful Overseas Use of Data Act (CLOUD Act) which established data sharing with certain countries.
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INDIA, ASEAN TO EXPAND TRADE DESPITE RCEP WALKOUT. Why in news? India and ASEAN countries said they would explore ways to increase trade between them despite India‘s exit from the 15-nation Regional Comprehensive Economic Partnership (RCEP) agreement. RCEP 1. The Regional Comprehensive Economic Partnership is a free trade agreement originally devised to consist of 16 countries across the Asia-Pacific region. 2. However, it is now expected to be signed on November 15, between China, Australia, South Korea, Japan, and 10 Association of South East Asian (ASEAN) nations. 3. The pact looks to drop tariffs and duties between the members so that goods and services can flow freely between them. India and RCEP: May 15 was the deadline for a response to a fresh proposal of India rejoining negotiations on the Regional Comprehensive Economic Partnership (RCEP).
Why India didn‘t sign? 1. India‘s trade deficit with the RCEP nations is $105 billion, of which China alone accounts for $54 billion. Further relaxations would enhance the deficit. 2. The worry is also over Chinese manufactured goods and dairy products from New Zealand flooding Indian markets, hurting domestic interests. 3. The trade agreement was also seen as being detrimental to the government‘s Make in India initiative. 4. India was looking for specific rules of origin to ensure the trade pact wasn‘t abused by non-partner countries and an auto-trigger mechanism to protect it from a surge in imports. 5. Ecommerce and trade remedies were among other key areas of concern that failed to find satisfactory redressal. 6. India has expressed its concerns over lowering and elimination of tariffs on products from other countries, as it would negatively affect the domestic agricultural and industrial sector. 7. India was also worried about keeping 2014 as the base year for tariff reductions.
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How far is China‘s presence a factor for India‘s decision? Apart from economic reasons (fear of dumping), escalating tensions with China are a major reason for India‘s hardened position on the deal. China‘s participation in the deal had already been proving difficult for India due to various economic threats, the clash at Galwan Valley has soured relations between the two countries. The various measures India has taken to reduce its exposure to China would have sat uncomfortably with its commitments under RCEP
Why is RCEP important for China? China is trying to overcome Covid-19 disruptions and resurrect the supply chain mechanism and possibly put pressure on US President-elect Joe Biden. The Indo-Pacific so far ran on twin tracks of economy and security with economy on a weak wicket. China is trying to strengthen the economic base while the US is focussed on the security aspects. For India, RCEP hardly makes a difference as it has FTAs with ASEAN, and CEPAs (Comprehensive Economic Partnership Agreements) with Japan and South Korea already.
What can the decision cost India? Indirectly benefits China: RCEP is a China-backed trade deal, signing it without India will further strengthen China‘s economic power. It will affect India‘s neighbourhood as China already tries to influence the region through its deep pockets. Impact on India‘s Act East Policy: There are concerns that India‘s decision would impact its bilateral trade ties with RCEP member nations, as they may be more inclined to focus on bolstering economic ties within the bloc. Losing out on Large Market: The move could potentially leave India with less scope to tap the large market that RCEP presents —the size of the deal is mammoth, as the countries involved account for over 2 billion of the world‘s population. Impact on other initiatives: There are also worries that India‘s decision could impact the Australia-India-Japan network in the Indo-Pacific. It could potentially put a spanner in the works on informal talks to promote a Supply Chain Resilience Initiative among the three. 56 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
What are India‘s options now? Can Join in future: Japan worked hard to keep the RCEP agreement ―open for accession by India‖ and also said that India may participate in RCEP meetings as an ―observer‖. Observer in RCEP meetings: RCEP signatory states said they plan to commence negotiations with India once it submits a request of its intention to join the pact ―in writing‖, and it may participate in meetings as an observer prior to its accession. RCEP not connected to its vision on Indo-Pacific: Indian government has made it clear that India was not about to step back from its Act East policy, nor was the decision on RCEP connected to its approach to the Indo-Pacific Exploring other alternatives: There is also a growing view that it would serve India‘s interest to invest strongly in negotiating bilateral agreements with the US and the EU, both currently a work in progress.
Conclusion When India chose to stay out of the Belt and Road Initiative in 2017, there was much commentary that India might be isolating itself. Three years later, India‘s position has been recognised by like-minded democracies, and many have said that India‘s decision was prescient. Likewise, India‘s decision on RCEP which was based on principles will be recognised by other like-minded countries. Instead of sitting out and building tariff walls across sectors, it must prod and incentivise the industry to be competitive, and get inside the RCEP tent at the earliest opportune moment
FIFTEENTH FINANCE COMMISSION
The Finance Commission is a constitutionally mandated body that decides, among other things, the sharing of taxes between the Centre and the states. Article 280 (1) requires the President to constitute, ―within two years from the commencement of this Constitution and thereafter at the expiration of every fifth year or at such earlier time as the President considers necessary‖, an FC ―which shall consist of a
Chairman and four other members‖.
Under Article 280(3)(a), the Commission must make recommendations to the
President ―as the distribution between the Union and the States of the net proceeds
of taxes which are to be, or may be, divided between them under this Chapter and
the allocation between the States of the respective shares of such proceeds‖.
Accordingly, the Commission determines a formula for tax-sharing between the states. This crucial role of the Commission makes it instrumental in the implementation of fiscal federalism.
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15th Finance Commission The report of the Fifteenth FC, along with an Action Taken Report. The Commission has reduced the vertical devolution — the share of tax revenues that the Centre shares with the states — from 42% to 41%. The 1 per cent decrease in the vertical devolution is roughly equal to the share of the erstwhile state of Jammu and Kashmir, which would have been 0.85% as per the formula described by the Commission. The Commission has said that it intends to set up an expert group to initiate a non-lapsable fund for defence expenditure. The terms of reference of the Commission included considering the Centre‘s demand for funds for defence and national security. It may do so by creating a separate fund from the gross tax revenue before computing the divisible pool — which means that states would get a smaller share of the taxes.
Terms of Reference and Issues in formula: The population parameter used by the Commission has been criticised by the governments of the southern states. The Fifteenth FC has reasoned that the terms of reference leave it with no choice but to use the 2011 population; it has also argued that in the interest of fiscal equalisation, it is necessary to use the latest Census figures. The use of 2011 population figures has resulted in states with larger populations like Uttar Pradesh and Bihar getting larger shares, while smaller states with lower fertility rates (the number of children born to a woman in her life) have lost out. The demographic effort : In order to reward population control efforts by states, the Commission developed a criterion for demographic effort — which is essentially the ratio of the state‘s population in 1971 to its fertility rate in 2011 — with a weight of 12.5%. States such as Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana have fertility rates below the replacement rate, or the number of children that have to be born to a woman of reproductive age in order for the population to maintain itself at the current level without migration. However, the effect of the demographic effort in increasing states‘ devolution is not clear. Shares of states like Maharashtra, Himachal Pradesh and Punjab, along with Tamil Nadu, all of which have fertility rates below the replacement level, have increased slightly. On the other hand, Andhra Pradesh, Kerala, Karnataka, and West Bengal‘s shares have fallen, even though their fertility rates are also low. Incidentally, Karnataka, the biggest loser in this exercise, also had the highest tax-GSDP ratio in 2017-18, as per an RBI report on state
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finances. Tax effort was also used by the Commission to decide the states‘ shares, with a weight of 2.5%. Income distance is calculated as the difference between the per capita gross state domestic product (GSDP) of the state from that of the state with the highest per capita GSDP, with states with less income getting a higher share in order to allow them to provide services comparable to those provided by the richer ones. The Commission used the per capita GSDP of Haryana as the reference for calculating the income distance, and gave it a weight of 45%, down from the 50% assigned by the 14th FC. The weight assigned to state area was unchanged at 15%, and that of forest cover was increased from 7.5% to 10%.
GOVT. ROLLS OUT RS.1.19 LAKH CRORE STIMULUS Why in news? The Government has announced a fresh set of relief and stimulus measures for the economy worth ₹1.19 lakh crore. This is being called as ―Atmanirbhar Bharat Abhiyan 3.0.‖ Key Components of the Package: Significance of these measures: Such measures in the last seven months reinforce the ‗fiscal conservatism‘ ideology of the government — rather than large cash transfers, the growth philosophy centres around creating an ecosystem that aids domestic demand, incentivises companies to generate jobs and boost production, and simultaneously extends benefits to those in severe distress, be it firms or individuals. Need for these measures: Recently, the Reserve Bank of India (RBI) said the country had entered into a technical recession in the first half of 2020-21. However, the RBI also predicts a strong return to proper growth for the economy. Even ratings agency Moody‘s Investor Service had revised its GDP projections for India upwards. What is a technical recession? It refers to the sequential decline in GDP for the past two quarters. This presents economic contraction since the GDP measures the value of all goods and services produced in a country during a specific period of time, in other words, the total expenditure in the economy.
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Was India‘s technical recession unexpected? 1. Given the nature of the problem the pandemic as soon as the lockdown was announced in March, most economists expected the Indian economy to go into recession. 2. In fact, most estimates expect the economy to contract for at least one more quarter that is October to December.
How long do recessions last? 1. Typically, recessions last for a few quarters. If they continue for years, they are referred to as ―depressions‖. But a depression is quite rare; the last one was during the 1930s in the US. 2. In the current scenario, the key determinant for any economy to come out of recession is to control the spread of Covid-19.
PRODUCTION-LINKED INCENTIVE (PLI) SCHEME Why in news? The Central government has unveiled a production-linked incentive (PLI) scheme to encourage domestic manufacturing investments in 10 more sectors, with an estimated outlay of about Rs.1.46 lakh crore over the next five years. These sectors have been identified on the basis of their potential to create employment and make India self-reliant. The 10 sectors include: Food processing, telecom, electronics, textiles, speciality steel, automobiles and auto components, solar photo-voltaic modules and white goods, such as air conditioners and LEDs. Govt after Budget 2022 has expanded the list to 13 sectors. About the PLI scheme: To make India a manufacturing hub, the government had announced the PLI scheme for mobile phones, pharma products, and medical equipment sectors. 1. Notified on April 1 as a part of the National Policy on Electronics. 2. It proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain. What the scheme seeks to achieve? 1. Make domestic manufacturing competitive and efficient. 2. Create economies of scale. 3. Make India part of global supply chain. 4. Attract investment in core manufacturing and cutting edge tech. 5. Competitive manufacturing would in turn lift exports.
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WHAT IS THE PRODUCTION LINKED INCENTIVE SCHEME FOR ELECTRONICS MANUFACTURERS? Notified on April 1 as a part of the National Policy on Electronics. It proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain. In order to position India as a global hub for Electronics System Design and Manufacturing (ESDM) and push further the vision of the National Policy on Electronics (NPE) 2019, three schemes namely the Production Linked Incentive Scheme (PLI) Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Modified Electronics Manufacturing Clusters Scheme (EMC 2.0) were notified in April 2020. A fourth scheme, namely the Production Linked Incentive Scheme (PLI) for IT Hardware was notified in March 2021. Key features of the scheme: The scheme shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years with financial year (FY) 2019-20 considered as the base year for calculation of incentives. The Scheme will be implemented through a Nodal Agency which shall act as a Project Management Agency (PMA) and be responsible for providing secretarial, managerial and implementation support and carrying out other responsibilities as assigned by MeitY from time to time. Eligibility: Three Apple Inc.‘s top contract According to the scheme, companies that make manufacturers are planning to mobile phones which sell for Rs 15,000 or more invest a total of almost $900 will get an incentive of up to 6 per cent on million in India in the next five incremental sales of all such mobile phones made years to tap into a in India. new production-linked incentive In the same category, companies which are plan. owned by Indian nationals and make such mobile phones, the incentive has been kept at Rs 200 crore for the next four years.
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What kind of investments will be considered? All electronic manufacturing companies which are either Indian or have a registered unit in India will be eligible to apply for the scheme. These companies can either create a new unit or seek incentives for their existing units from one or more locations in India. However, all investment done by companies on land and buildings for the project will not be considered for any incentives or determine eligibility of the scheme.
GENERALIZED SYSTEM OF PREFERENCES (GSP) TRADE PRIVILEGE Why in news? India is likely to press Biden Administration for early restoration of the Generalized System of Preferences (GSP) trade privilege for India. The privilege was withdrawn by outgoing President Donald Trump‘s administration in Washington DC in June 2019 and India has been prodding the United States to restore it. Objective of GSP The objective of GSP was to give development support to poor countries by promoting exports from them into the developed countries. GSP promotes sustainable development in beneficiary countries by helping these countries to increase and diversify their trade with the United States. Benefits of GSP Indian exporters benefit What is the Generalised System of Preferences indirectly – through the benefit (GSP)? that accrues to the importer by It is a U.S. trade program designed to promote way of reduced tariff or duty economic growth in the developing world by providing free entry of eligible Indian preferential duty-free entry for up to 4,800 products products from 129 designated beneficiary countries and Reduction or removal of import territories. duty on an Indian product GSP was instituted on January 1, 1976, by the makes it more competitive to Trade Act of 1974. the importer – other things (e.g. GSP has been given on non-reciprocal basis. quality) being equal. Yet the US has linked it with market access This tariff preference helps new and tariff reduction which is against the basic exporters to penetrate a market tenets of GSP. and established exporters to increase their market share and to improve upon the profit margins, in the donor country.
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GSP by European Union The European Union‘s GSP is widely recognized as the most progressive in terms of coverage and benefits. The EU offers: Standard GSP for low and lower-middle income countries. This means a partial or full removal of customs duties on two third of tariff lines. GSP+: the special incentive arrangement for sustainable development and good governance. It slashes these same tariffs to 0% for vulnerable low and lower-middle income countries that implement 27 international conventions related to human rights, labour rights, protection of the environment and good governance. EBA (Everything But Arms): the special arrangement for least developed countries, providing them with duty-free, quota-free access for all products except arms and ammunition. Conditions Developing countries are automatically granted GSP if they: Are classified as having an income level below "upper middle income" by the World Bank Do not benefit from another arrangement (like a Free Trade Agreement) granting them preferential access to the EU market In addition, if granted GSP+, beneficiaries are required to ratify 27 international conventions (see GSP+ above) and to cooperate with the Commission to monitor implementation of these conventions. Least-developed countries are automatically granted the benefits of the ‗Everything But Arms‘ arrangement, even if they have another arrangement in place. All GSP beneficiary countries have to respect the principles of fifteen core conventions on human rights and labour rights listed in the GSP Regulation. Monitoring The EU continuously monitors GSP+ beneficiary countries‘ effective implementation of the 27 international conventions on human rights, labour rights, environmental protection, and good governance. This monitoring includes exchanges of information, dialogue and visits and involves various stakeholders, including civil society. The Commission publishes a report on the implementation of GSP every two years on the progress made by the GSP+ beneficiary countries in implementing the 27 international conventions. Enhanced engagement with other GSP beneficiaries As announced in Trade for all, the EU has stepped up its engagement with three GSP beneficiary-countries: Bangladesh, Cambodia and Myanmar. The EU is engaging with these countries due to the gravity of alleged shortcomings in respecting core human rights and labour rights standards, as testified by reports from the United Nations, the International Labour Organization, and civil society. EBA preferences can be removed if beneficiary countries fail to respect core human rights and labour rights. On 12 February 2020,The European Commission has decided to withdraw part of the tariff preferences granted to Cambodia under the European Union‘s Everything 63 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
But Arms‘ (EBA) trade scheme due to the serious and systematic violations of the human rights principles enshrined in the International Covenant on Civil and Political Rights. As part of the biennial report, a specific report was published on the Enhanced Engagement, which provides details on issues discussed and priorities for further monitoring with the countries concerned. Impact of GSP A 2018 GSP midterm evaluation shows that the EU‘s GSP is delivering. From 2011 to 2017, EU imports from the beneficiary countries increased by 44%. EBA countries saw their exports to the EU increase by 125% and GSP+ beneficiaries by 82%. The evaluation also indicates that countries increasingly use the available trade preferences and diversify their exports. Moreover, GSP+ beneficiaries saw an economic incentive for making progress in ratifying and implementing the 27 international conventions required under GSP+.
Involving Stakeholders European Parliament and Council The Commission regularly reports to the European Parliament and the Council on GSP matters. The Commission also regularly answers questions from Members of the European Parliament (MEPs). These questions (and responses) and related issues can be found on the European Parliament's website. Oversight of GSP by the Council is done through the Working Party on the Generalised System of Preferences. In addition the Commission chairs the Expert Group on the Generalised Scheme of Preferences and the Generalised Preferences Committee, which gather expert representatives from each member state to oversee and vote on issues related to the GSP.
Industry The GSP Regulation has several ways to ensure that interests of European industries are safeguarded: GSP beneficiaries that become 'Upper Middle Income' Countries are removed from GSP. GSP beneficiaries can lose preferences for specific product categories which are deemed to have become sufficiently competitive: suspended tariff preferences for 2017-2019. Safeguard measures can be requested by EU industry based on evidence that imports from a GSP beneficiary have caused serious economic difficulties for that industry: safeguard measures on rice from Cambodia and Myanmar.
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ADVISORY COMMITTEE ON ADMINISTRATIVE AND BUDGETARY QUESTIONS (ACABQ). In a significant victory for India at the United Nations, Indian diplomat Vidisha Maitra was elected to the UN Advisory Committee on Administrative and Budgetary Questions (ACABQ), a subsidiary organ of the General Assembly. In the Group of Asia-Pacific States, Maitra, First Secretary in India‘s Permanent Mission to the UN, obtained 126 votes. The 193-member General Assembly appoints members of the Advisory Committee. Members are selected on the basis of broad geographical representation, personal qualifications and experience. Maitra was one of two nominated candidates from the Group of Asia-Pacific States. In the group, Ali Mohammed Faeq Al-Dabag of Iraq drew 64 votes. The Fifth Committee of the General Assembly, which deals with administrative and budgetary issues, recommended Maitra to the Assembly for a three-year term beginning January 1, 2021. The victory comes as India gets ready to sit in the UN Security Council as a non-permanent member for a two-year term beginning January 2021. The major functions of the Advisory Committee are to examine and report on the budget submitted by the Secretary General to the General Assembly and to advise the General Assembly concerning any administrative and budgetary matters referred to it. It also examines on behalf of the General Assembly, the administrative budgets of the specialized agencies and proposals for financial arrangements with such agencies; and to consider and report to the General Assembly on the auditors‘ reports on the accounts of the United Nations and of the specialised agencies. The ACABQ consists of 16 members appointed by the Assembly in their individual capacity
BEWARE OF ILLEGAL DIGITAL LENDING APPS: RBI Why in news? RBI has released an advisory on digital lending apps. Background: The advisory comes in the backdrop of at least three borrowers in Telangana committing suicide in the recent past, following alleged harassment by personnel of such lenders, and many more complaining of being subjected to coercive methods after defaulting on repayments. Highlights: Public should be wary of unauthorised digital lending platforms and mobile apps. 1. Public should verify antecedents of the company/ firm offering loans online or through mobile apps.
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2. Consumers should never share copies of KYC documents with unidentified persons or unverified/unauthorised apps. 3. They can report such apps/bank account information associated with the apps to law enforcement agencies concerned or use sachet portal (https://sachet.rbi.org.in) to file complaint. What are the issues wrt digital lending apps? 1. They attract borrowers with promise of loans in a quick and hassle-free manner. 2. But, Excessive rates of interest and additional hidden charges are demanded from borrowers. 3. Such platforms adopt unacceptable and high-handed recovery methods. 4. They misuse agreements to access data on the mobile phones of the borrowers. What next? Cautioning people against falling prey to ―such unscrupulous activities,‖ the RBI said ―legitimate public lending activities can be undertaken by banks, non-banking financial companies (NBFCs) registered with RBI and other entities who are regulated by the State governments under statutory provisions, such as the money lending acts of the State s concerned.‖
GOVERNMENT EXPLORING SETTING UP BAD BANK, ALL OTHER OPTIONS Why in news? The government is exploring all options, including setting up of a bad bank, to improve the health of the country‘s banking sector. Union Budget Proposes setting up an ARC like institution for Bad Loans. Need for: It is not just necessary but unavoidable in the present circumstances when NPAs are likely to balloon and much of the resolution will have to take place outside the IBC framework. Concept of Bad Bank: 1. A bad bank is a bank set up to buy the bad loans and other illiquid holdings of another financial institution. 2. The entity holding significant nonperforming assets will sell these holdings to the bad bank at market price. 3. By transferring such assets to the bad bank, the original institution may clear its balance sheet—although it will still be forced to take write-downs.
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Why be concerned about bad loans? 1. Indian banks‘ pile of bad loans is a huge drag on the economy. 2. It‘s a drain on banks‘ profits. Because profits are eroded, public sector banks (PSBs), where the bulk of the bad loans reside, cannot raise enough capital to fund credit growth. 3. Lack of credit growth, in turn, comes in the way of the economy‘s return to an 8% growth trajectory. Therefore, the bad loan problem requires effective resolution. Benefits: 1. This helps banks or FIs clear-off their balance sheets by transferring the bad loans and focus on its core business lending activities. 2. Large debtors have many creditors. Hence bad bank could solve the coordination problem, since debts would be centralized in one agency. 3. It can effect speedier settlements with borrowers by cutting out individual banks. 4. It can drive a better bargain with borrowers and take more stringent enforcement action against them. 5. It can raise money from institutional investors rather than looking only to the Government. What are the Concerns or demerits of such banks? Suppose, say for example, a bank sells bad loans. Then, it has to take a haircut because when Rs 100 goes bad, the actual amount that can be expected is lower than Rs 100 and that leads to haircut. When it takes haircut that will impact the P&L (Profit & Loss). So, till that particular aspect is not addressed, creating a new structure may not be as potent in addressing the problem.
ECONOMY FIRMLY ON THE PATH OF A V-SHAPED RECOVERY, SAYS GOVT Why in News? India is on the path of V-shaped economic recovery after going down in Covid-19 crisis. After the collapse in the first quarter and further improvement was expected recorded in the Q3. 7.5% contraction recorded in the second quarter and 23.9% decline recorded during ‗stringent‘ lockdown in the first quarter.
Key Highlights: Consumer price inflation is likely to ‗decelerate gradually‘ as base effects would kick in, and food inflation is expected to cool due to good kharif harvest. Agriculture (grown at 3.4% through the first half of 2020-21) is expected to remain the economy‘s bright spot with rabi crop sowing showing a healthy rise.
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There is sustained improvement in high frequency indicators in October and November with an expected improved performance in Q3. The timely announcement of the third tranche of the Atmanirbhar Bharat package on the eve of Diwali with a multi-sector focus. It was the significant step towards faster revival of the economy, restoration of lost jobs and creation of new ones. Shapes of economic recovery: The shape of economic recovery is determined by both the speed and direction of GDP prints. This depends on multiple factors including: o Fiscal and monetary measures o Consumer incomes and sentiment Z-shaped recovery: The Z-shaped recovery is the most-optimistic scenario in which the economy quickly rises like a phoenix after a crash. It more than makes up for lost ground (think revenge-buying after the lockdowns are lifted) before settling back to the normal trend-line. V-shaped recovery: The economy quickly recoups lost ground and gets back to the normal growth trend-line. V shaped recovery in India: This V-shaped recovery, evident at the half-way stage of 2020-21, reflects: The resilience and robustness of the Indian economy. The fundamentals of the economy remain strong as gradual scaling back of lockdowns, along with the astute support of Atmanirbhar Bharat Mission has placed the economy firmly on the path of recovery. The 7.5% contraction recorded in the second quarter following the 23.9% decline recorded at the peak of the ‗stringent‘ lockdown in the first quarter. U-shaped recovery: It resembles a bathtub. The economy, after falling, struggles and muddles around a low growth rate for some time, before rising gradually to usual levels. W-shaped recovery: The growth falls and rises, but falls again before recovering yet again, thus forming a W-like chart. The double-dip depicted by a W-shaped recovery is what some economists are predicting if a second wave of Covid-19 comes along and the initial rebound flatters to deceive. L-shaped recovery: It is the worst-case scenario, in which growth after falling, stagnates at low levels and does not recover for a long, long time. J-shaped recovery: It is somewhat unrealistic scenario, in which growth rises sharply from the lows much higher than the trend-line and stays there.
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Swoosh shaped recovery: It is similar to the Nike logo. It is in between the V-shape and the U-shape. Here, after falling, growth starts recovering quickly but then, slowed down by obstacles, moves gradually back to the trend-line.
Inverted square root shaped recovery: The situation where while there could a rebound from the bottom, the growth slows and settles a step down.
BUSINESSES WITH MONTHLY TURNOVER OF OVER ₹50 LAKH TO PAY AT LEAST 1% GST LIABILITY IN CASH. Why in news? Central Board of Indirect Taxes and Customs (CBIC) has introduced Rule 86B in Goods and Services Tax (GST) rules which restricts use of input tax credit (ITC) for discharging GST liability to 99 per cent. As per the new rule, Businesses with monthly turnover of over 50 lakh will have to mandatorily pay at least 1 per cent of their GST liability in cash.
Exceptions under the new rule: This restriction will not apply where the managing director or any partner have paid more than ₹1 lakh as income tax or the registered person has received a refund amount of more than ₹1 lakh in the preceding financial year on account of unutilised input tax credit.
What is Input Tax Credit (ITC)? 1. It is the tax that a business pays on a purchase and that it can use to reduce its tax liability when it makes a sale. 2. In simple terms, input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount. Exceptions: A business under composition scheme cannot avail of input tax credit. ITC cannot be claimed for personal use or for goods that are exempt.
Rationale behind this move? The idea remains to prevent misutilisation of credit by businesses taking fake credits.
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What‘s the issue now? There are fears that the mandatory cash payment would adversely affect small businesses, increase their working capital requirement and make GST a more complex indirect tax system.
WHAT ARE ZERO COUPON BONDS? Why in news? The government has used financial innovation to recapitalize Punjab & Sind Bank by issuing the lender Rs 5,500-crore worth of non-interest bearing bonds valued at par. These are special types of zero-coupon bonds issued by the government after proper due diligence and these are issued at par. What are these special types of zero-coupon bonds? 1. These are ―non-interest bearing, non-transferable special GOI securities‖. 2. They have a maturity of 10-15 years and issued specifically to Punjab & Sind Bank. 3. These recapitalisation bonds are special types of bonds issued by the Central government specifically to a particular institution. 4. It is not tradable, it is not transferable. 5. It is held at the held-to-maturity (HTM) category of the bank as per the RBI guidelines. Since it is held to maturity, it is accounted at the face value (and) no mark-to-market will be there. How do they differ from traditional bonds? Though zero coupon, these bonds are different from traditional zero-coupon bonds on one account — as they are being issued at par, there is no interest; in previous cases, since they were issued at discount, they technically were interest bearing.
WHAT IS ASSET UNDER MANAGEMENT (AUM)? Why in news? Heading for a contraction in the current fiscal, the first time in more than a decade, assets under management (AUM) of non-banking financial companies (NBFCs) are set to grow again at a relatively subdued 5-6% next fiscal. The turnaround will be led by larger entities with stronger parentage. Challenges ahead: 1. Despite an estimated GDP growth of 10% next fiscal, the overall NBFC sector growth is likely to be slower because access to funding remains a challenge due to concerns about the impact of the pandemic on asset quality. 2. Additionally, competition is expected to be more intense from banks which are flush with low-cost deposits and better placed with improved capital buffer than in the previous years.
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1.5-TIMES FORMULA FOR CROPS‘ MSP Why in News One of the major demands of protesting farmers has been that the government guarantee in writing the Minimum Support Price system, which assures them of a fixed price for their crops, 1.5 times the cost of production. Farmer Unions are protesting against the newly enacted three farm laws and the Electricity Amendment Bill 2020. Changes made by the 2018-19 budget: Budget for 2018-19 announced that MSPs would henceforth be fixed at 1.5 times of the production costs for crops as a ―predetermined principle‖. CACP‘s job is now only to estimate production costs for a season and recommend the MSPs by applying the 1.5-times formula. Background: Minimum Support Price: MSP is a ―minimum price‖ for any crop that the government considers as remunerative for farmers and hence deserving of ―support‖. It is also the price that government agencies pay whenever they procure a particular crop. The Union Budget for 2018-19 had announced that MSP would be kept at levels of 1.5 the cost of production. How is MSP Decided? The Commission for Agricultural Costs & Prices (CACP) recommends MSPs for 22 mandated crops and fair and remunerative price (FRP) for sugarcane. CACP is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. It came into existence in January 1965. It is an advisory body whose recommendations are not binding on the Government. The CACP considered various factors while recommending the MSP for a commodity, including cost of cultivation. It also took into account the supply and demand situation for the commodity, market price trends (domestic and global) and parity vis-à-vis other crops, and implications for consumers (inflation), environment (soil and water use) and terms of trade between agriculture and non- agriculture sectors. Mechanism of arriving at Production Cost: The CACP does not do any field-based cost estimates itself. It makes projections using state-wise, crop-specific production cost estimates provided by the Directorate of Economics & Statistics in the Agriculture Ministry. The latter is, however, generally available with a three-year lag.
The CACP projects three kinds of production costs for every crop, both at the state and all-India average levels.
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A2‘ Covers all paid-out costs directly incurred by the farmer in cash and kind on seeds, fertilisers, pesticides, hired labour, leased-in land, fuel, irrigation, etc. ‗A2+FL‘ Includes A2 plus an imputed value of unpaid family labour. ‗C2‘ It is a more comprehensive cost that factors in rentals and interest forgone on owned land and fixed capital assets, on top of A2+FL.
Issues with the Pricing: In the 2018-19 Budget Speech, the government did not specify the cost on which the 1.5- times formula was to be computed. The CACP‘s ‗Price Policy for Kharif Crops: The Marketing Season 2018-19‘ report stated that its MSP recommendation was based on 1.5 times the A2+FL costs. Government‘s Stand: CACP considers all costs in a comprehensive manner which is based on the methodology recommended by Expert Committees from time to time. CACP considers both A2+FL and C2 costs while recommending MSP. CACP reckons only A2+FL cost for return. However, C2 costs are used by CACP primarily as benchmark reference costs. Farmer‘s demands: Farm activists, however, had said that the 1.5-times MSP formula should have been applied on the C2 costs originally recommended by the National Commission for Farmers headed by agricultural scientist M S Swaminathan should be applied on the C2 costs. CACP considers A2+FL and C2 costs, both while recommending MSP. It reckons only A2+FL cost for return. However, C2 costs are used by CACP primarily as benchmark reference costs (opportunity costs) to see if the MSPs recommended by them at least cover these costs in some of the major producing States.
FINANCIAL ACTION TASK FORCE (FATF) Why in News? FATF recently held its annual joint experts‘ meet. It was attended by participants from various government agencies all over the world and international bodies such as the United Nations, the International Monetary Fund, the World Bank and Interpol. The FATF said it attaches great importance to effective information sharing, which is one of the cornerstones of a well-functioning AML/CFT [Anti-Money Laundering/Combating the Financing of Terrorism] framework.
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About FATF: FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering. The FATF Secretariat is housed at the OECD headquarters in Paris. It holds three Plenary meetings in the course of each of its 12-month rotating presidencies. As of 2019, FATF consisted of 37 member jurisdictions. India became an Observer at FATF in 2006. Since then, it had been working towards full- fledged membership. On June 25, 2010, India was taken in as the 34th country member of FATF. Role of FATF: The rise of the global economy and international trade has given rise to financial crimes such as money laundering. The FATF makes recommendations for combating financial crime, reviews members‘ policies and procedures, and seeks to increase acceptance of anti-money laundering regulations across the globe. Because money launderers and others alter their techniques to avoid apprehension, the FATF updates its recommendations every few years. FATF on terror financing: FATF‘s role in combating terror financing became prominent after the 9/11 terror attacks in the US. In 2001 its mandate expanded to include terrorism financing. Financing of terrorism involves providing money or financial support to terrorists. As of 2019, FATF has blacklisted North Korea and Iran over terror financing and 12 countries are in the grey list, namely: Bahamas, Botswana, Cambodia, Ethiopia, Ghana, Pakistan, Panama, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and Yemen. What is the Black List and the Grey List? Black List: The blacklist, now called the ―Call for action‖ was the common shorthand description for the FATF list of ―Non-Cooperative Countries or Territories‖ (NCCTs). Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist. Consequences of being in the FATF grey list: Economic sanctions from IMF, World Bank, ADB Problem in getting loans from IMF, World Bank, ADB and other countries Reduction in international trade International boycott
LIMITED LIABILITY PARTNERSHIP Why in News? The Company Law Committee (CLC), headed by the Corporate Affairs Secretary Rajesh Verma, has recommended that 12 offences under the LLP Act be decriminalised and that LLPs be allowed to issue NCDs to raise funds with the aim of improving ease of doing business for limited liability partnership (LLP) firms.
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What is Limited liability partnership? A Limited Liability Partnership (LLP) is a partnership in which some or all partners have limited liability. It therefore exhibits elements of partnerships and corporations. What are the Changes under the already existing act? A number of offences related to timely filings, including annual reports and filings on changes in partnership status of the LLP, which are unrelated to fraud have been recommended for decriminalisation. The move is in line with decriminalisation of the Companies Act through an amendment in 2020 in which offences which do not involve fraud or impact public interest were decriminalised. While none of these provisions recommended for decriminalisation in the CLC report currently have prison terms as a possible punishment, the panel has recommended that companies be required to pay penalties for non-compliance, instead of fines which are imposed after a partner or the LLP is found guilty of misconduct by a court. The Registrar of Companies would have the authority to levy penalties with prescribed minimum and maximum penalties for any contravention of provisions of the LLP Act. Need of the hour. The move to impose penalties would reduce the time taken for LLPs to resolve non-compliance and moving to penalties would help unclog the judicial system from complaints not related to fraud or public interest.
BALANCE SHEET OF A BAD BANK. Here because: As the problem of non-performing assets persists in a sector stressed by the pandemic, the RBI Governor has agreed to look at a proposal for creating a bad bank. Is there a necessity for Bad Bank? The idea gained currency during Rajan‘s tenure as RBI Governor. The RBI had then initiated an asset quality review (AQR) of banks and found that several banks had suppressed or hidden bad loans to show a healthy balance sheet. However, the idea remained on paper amid lack of consensus on the efficacy of such an institution. ARCs have not made any impact in resolving bad loans due to many procedural issues. Now, with the pandemic hitting the banking sector, the RBI fears a spike in bad loans in the wake of a six-month moratorium it has announced to tackle the economic slowdown. Has the banking system made any proposal on the issue? The banking sector, led by the Indian Banks‘ Association, had submitted a proposal last May for setting up a bad bank to resolve the NPA problem, proposing equity contribution from the government and banks.
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Why it has to surface now? Bad loans in the system are expected to balloon in the wake of contraction in the economy and the problems being faced by many sectors. The RBI noted in its recent Financial Stability Report that the gross NPAs of the banking sector are expected to shoot up to 13.5% of advances by September 2021, from 7.5% in September 2020, under the baseline scenario, as ―a multi-speed recovery is struggling to gain traction‖ amidst the pandemic. Need of the hour. o The K V Kamath Committee, which helped the RBI with designing a one-time restructuring scheme, also noted that corporate sector debt worth Rs 15.52 lakh crore has come under stress after Covid-19 hit India, while another Rs 22.20 lakh crore was already under stress before the pandemic. o This effectively means Rs 37.72 crore (72% of the banking sector debt to industry) remains under stress. This is almost 37% of the total non-food bank credit. o With the following data it is the duty of the Government to proceed wisely whether to create a Bad Bank or not because in a pandemic hit world people are already suffering with job loss and numerous economic burden.
RBI FORMED A WORKING GROUP ON DIGITAL LENDING Here Because: With frauds in digital lending space coming into sharp focus, the Reserve Bank of India has set up a working group to study digital lending activities of the regulated and unregulated players. The group will suggest steps to regulate digital lending including online lending platform and mobile lending. Background on the issue The recent spurt and popularity of online lending platforms/mobile lending apps have raised certain serious concerns which have wider systemic implications. Of late, these platforms have come under the regulator‘s glare for their adoption of coercive means of loan recovery. The move is the latest in the central bank‘s attempt to tackle fly-by-night lending apps which have been offering digital loans to underserved customers. Composition of the working group and the task it is imposed with The WG will consist of both internal and external members. The internal members are generally from the RBI and the external members are from CloudSEK, Monexo Fintech etc. The group will study all aspects of digital lending activities in the regulated financial sector as well as by unregulated players so that an appropriate regulatory approach can be put in place. It will evaluate digital lending activities and assess the penetration and standards of outsourced digital lending activities in RBI-regulated entities. It will also be tasked with identifying risks posed by unregulated digital lending to financial stability, regulated entities and consumers and suggest regulatory changes, if any, to promote the orderly growth of digital lending.
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Way forward: While the penetration of digital methods in the financial sector is a welcome development, the benefits and certain downside risks are often interwoven in such endeavors. A balanced approach needs to be followed so that the regulatory framework supports innovation while ensuring data security, privacy, and confidentiality and consumer protection.
NATIONAL INFRASTRUCTURE PIPELINE. Here Because: Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in a meeting with Secretaries of various ministries and departments reviewed the progress of National Infrastructure Pipeline (NIP) implementation. What is NIP (National Infrastructure Pipeline)? The National Infrastructure Pipeline (NIP) for FY 2019-25 is a first-of-its-kind, whole-of- government exercise to provide world-class infrastructure to citizens and improving their quality of life. Objective of the Mission It aims to improve project preparation and attract investments into infrastructure. To draw up the NIP, a High-Level Task Force was constituted under the chairmanship of the Secretary, Department of Economic Affairs (DEA), and Ministry of Finance. Achievements through NIP The NIP has been made on a best effort basis by aggregating the information provided by various stakeholders including line ministries, departments, state governments and private sector across infrastructure sub-sectors, as identified in the Harmonised Master List of Infrastructure. Projects worth Rs 1.1 lakh crore have been completed under the National Infra Pipeline. What next? In addition, the majority of ministries/departments have targeted substantially high infra expenditure in the current fiscal than the actual expenditure of FY''20. Ministries were also asked to update the National Infrastructure Pipeline dashboard regularly to allow seamless online monitoring.
ECONOMIC IMPACT DUE TO INTERNET SHUTDOWNS OVER DOUBLE OF 20 OTHERS. Here because: Internet research firm Top10VPN says that India with 8.4 million internet users imposes internet restrictions more often than any other country, Of the 21 countries that curbed Web access last year economic impact seen in India was more than double the combined cost for the next 20 countries in the list. What the report says? The actual economic impact for India may be even higher than the $2.8 billion figure which itself was double the loss on account of Internet shutdowns in 2019 compared to the pandemic struck 2020 figures.
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India continued to restrict Internet access more than any other country — over 75 times in 2020. The majority of these short blackouts were highly targeted, affecting groups of villages or individual city districts, and so were not included in this report, which focuses on larger region-wide shutdowns. Still in Kashmir The report made a separate mention of the extended curbs on Internet use in Kashmir, with suspension of services lasting from August 2019 when J&K‘s special status was scrapped to March 2020 and still remaining severely throttled, with only 2G accesses available. What is this internet shutdown? Around the world, shutting down the internet has become an increasingly popular tactic of repressive and authoritarian regimes and some illiberal democracies. In actual meaning Internet shutdown is an intentional disruption of Internet-based communications, rendering them inaccessible or effectively unavailable, for a specific population, location. Why India is in the limelight? While the economic impact due to Internet curbs surged in India in 2020, globally, at $4.01 billion, this came down by 50 per cent from 2019. As per the report, the world saw 93 major shutdowns during the pandemic-stricken year. Apart from India, the report features Belarus, Myanmar, Yemen, Ethiopia, Azerbaijan, Turkey, Syria, Iran, Tanzania, Venezuela and Somalia. Countries such as China and North Korea, which are known to restrict access to the Internet, are not in the list prepared by Top10VPN. Impact of Internet Shutdown in India Dependence on the Internet has increased and, therefore, when a shutdown happens, access to a number of essential services is restricted … There was a six-day-long ban in Hooghly near Kolkata in May, and this was when the pandemic was at its peak. People lost employment, lawyers could not attend hearings, people who depended on online pharmacy stores could not order medicines and there were students who couldn‘t attend online classes. Also, there is no solid methodology for calculating the full impact of an Internet shutdown, because in India, the shutdowns are hyper-localised. Need of the Hour Dependence on the Internet has increased and, therefore, when a shutdown happens, access to a number of essential services is restricted. It should be the Governments last resort before resorting to such extreme measures which involves the lives02 of ‗n‘ number of people who are dependent on the internet for their survival.
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FACELESS TAX SCHEME. What exactly is Faceless Assessment? Faceless Assessment is being rolled out to remove the human interface between the taxpayer and the Income Tax (I-T) Department. What are the exceptions to this? Cases relating to: Serious frauds, major tax evasion, sensitive & search matters International tax Black Money Act and Benami Property Unveiled by Prime Minister Narendra Modi in August, the faceless assessment scheme will "honour honest income-tax payers in the country." ―There will be no physical interface between the taxpayers or their counsel/s and the Income Tax Department. The taxpayers can make submissions from the comfort of their home and save their time and resources," Under faceless scrutiny assessment, a central computer picks up tax returns for scrutiny based on risk parameters and mismatch and then allots them randomly to a team of officers. This allocation is reviewed by officers at another randomly selected location and only if concurred, a notice is sent by the centralised computer system. All such notices need to be responded to electronically without the requirement of visiting a tax office or meeting any official. The faceless assessment scheme is a milestone initiative that has the potential to remove grey areas of the tax-administration. Doing away with the discretionary power available to tax assessing officers The National e-Assessment Center in Delhi will be governing authority for all communication with taxpayers under the faceless assessment scheme. There will be regional centres in Mumbai, Kolkata, Hyderabad, Chennai, Pune, Ahmedabad and Bengaluru. Fugitive economic offenders (FEO): Why in News? A special court has declared three people fugitive economic offenders (FEO) in the Sterling Biotech case on the Enforcement Directorate‘s (ED) request. What‘s the issue? The ED is conducting the money laundering probe based on two FIRs registered by the CBI against Sterling Biotech and others in October 2017. In one case, the agencies have alleged routing of undisclosed funds belonging to unknown Income-Tax Department officials, while the second case pertains to bank loan defaults of ₹8,100 crore. The procedure: 1. The investigating agencies have to file an application in a Special Court under the Prevention of Money-Laundering Act, 2002 containing details of the properties to be confiscated, and any information about the person‘s whereabouts. 2. The Special Court will issue a notice for the person to appear at a specified place and date at least six weeks from the issue of notice.
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3. Proceedings will be terminated if the person appears. If not the person would be declared as a Fugitive Economic Offender based on the evidence filed by the investigating agencies. 4. The person who is declared as a Fugitive Economic Offender can challenge the proclamation in the High Court within 30 days of such declaration according to the Fugitive Economic Offenders Act, 2018. RBI extends enhanced borrowing limit for banks: Context: Because of economic woes created by the COVID-19 pandemic, the Reserve Bank has decided to extend by six months the enhanced borrowing facility provided to banks to meet the shortage of liquidity till March 31, 2021. These measures include: Borrowing limit for scheduled banks under the marginal standing facility (MSF) scheme was increased from 2% to 3% of their net demand and time liabilities (NDTL) with effect from March 27, 2020. Implications: This dispensation provides increased access to funds to the extent of ₹1.49 lakh crore, and also qualifies as high-quality liquid assets (HQLA) for the liquidity coverage ratio (LCR). Key terms: Net Demand and Time Liabilities (NDTL): NDTL refers to the total demand and time liabilities (deposits) of the public that are held by the banks with other banks. The high-quality liquid assets include only those with a high potential to be converted easily and quickly into cash.
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GOVERNMENT SCHEMES
GOVERNMENT SCHEMES AND INITIATIVES GARIB KALYAN ROJGAR ABHIYAAN Garib Kalyan Rojgar Abhiyaan was launched to boost employment and livelihood opportunities for migrant workers returning to villages, in the wake of COVID-19 outbreak. This campaign will work in mission mode for 125 days with an outlay of Rs. 50,000 crore. A total of 116 districts across six states, namely Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan, Jharkhand and Odisha (where maximum migrant workers have returned) have been chosen for the campaign. Major objective: Saturate villages with public infrastructure and create livelihood opportunities viz. Roads, Housing, Anganwadis, Panchayat Bhavans, various livelihood assets and Community Complexes among others The basket of a wide variety of works will ensure that each migrant worker is able to get an opportunity of employment according to his skill, in the coming 125 days. The Program will also prepare for expansion and development of livelihoods over a longer term. 12 different Ministries/Departments will be coordinating for the implementation of the scheme. The Ministry of Rural Development is the nodal Ministry for this campaign and the campaign will be implemented in close coordination with the State Governments. Central Nodal Officers of the rank of Joint Secretary and above will be appointed to oversee the effective and timely implementation of various schemes in the identified districts.
SWADES INITIATIVE SWADES (Skilled Workers Arrival Database for Employment Support) initative was launched recently. The scheme will conduct a skill mapping exercise of the returning citizens under the Vande Bharat Mission. This is a joint initiative of the Ministry of Skill Development and Entrepreneurship, Civil Aviation Ministry and External Affairs Ministry. It aims to create a database of qualified citizens based on their skills and experience. The collected information will be shared with the companies for suitable placement opportunities in the country. The returning citizens are required to fill up an online SWADES Skills Card which will help the citizens with job prospects and bridge the demand-supply gap.
VANDE BHARAT MISSION Vandhe Bharat mission is the massive repatriation operation planned by the Indian government to bring back stranded Indians in different parts of the world in the wake of the coronavirus crisis. 80 | @ Sivarajavel IAS Academy www.sivarajavelias.com Current Affairs -2021
It will focus on bringing back Indians from the Gulf countries, Malaysia and Singapore, among others. It was operated on both international and domestic flights. ―Transport bubbles‖ or ―air travel arrangements‖, temporary arrangements between two countries aimed at restarting commercial passenger services when regular international flights are suspended as a result of the pandemic, are in place.
PRADHAN MANTRI VAYA VANDANA YOJANA Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a social security scheme for senior citizens. It is implemented through the Life Insurance Corporation of India (LIC). This gives an assured minimum pension. LIC invests the corpus in the market and generates market-related returns. If such returns are lower than the guaranteed return, the differential is subsidised by the Union government. The scheme also offers a death benefit in the form of return of purchase amount to the nominee. The minimum entry age for this scheme is 60 years, there is no maximum age limit.
PM SVANIDHI SCHEME PORTAL The Ministry of Housing and Urban Affairs launched a Special Micro-Credit Facility Scheme for providing affordable loans to street vendors. Name of the loan scheme for street vendors is Pradhan Mantri Street Vendors‘ AtmaNirbhar Nidhi (PM SVANidhi) scheme. The portal ‗pmsvanidhi.mohua.gov.in‘ provides an ―integrated end-to-end IT interface to users for availing benefits under the scheme. It is being developed by SIDBI, which is the scheme implementation partner for PM SVANidhi. PM SVANidhi scheme Ministry of Housing and Urban Affairs launched the scheme on June 1st. The vendors can avail a working capital loan of up to Rs. 10,000. It will be repayable in monthly instalments in the tenure of one year. On timely/early repayment of the loan, an interest subsidy at 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on six monthly basis. There will be no penalty on early repayment of loan. Over 50 lakh people, including vendors, hawkers, thelewalas, etc. are likely to benefit from this scheme. Street vendors from peri- urban/ rural areas have become beneficiaries of an urban livelihood programme for the first time. MFIs/ NBFCs/ SHG Banks have been allowed in a scheme for the urban poor due to their ground level presence for the first time.
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SATYABHAMA PORTAL Union Ministry of Mines has launched a portal "SATYABHAMA (Science and Technology Yojana for Atmanirbhar Bharat in Mining Advancement)". Its aim is to promote research and development in the mining and minerals sector. It has been launched to increase efficiency and effectiveness of the Science and Technology Programme Scheme. Under the Science and Technology Programme Scheme, the Ministry of Mines promotes research in applied geosciences, mineral exploration, mining and allied areas, mineral processing, optimum utilization and conservation of the mineral resources of the country. The portal has been designed, developed and implemented by the National Informatics Centre (NIC). The portal is also integrated with NGO Darpan Portal of NITI Aayog.
NGO-DARPAN NGO-DARPAN is a platform that provides space for interface between Non-Government organizations (NGOs)/Voluntary Organizations (VOs) and key Government Ministries / Departments / Government Bodies. It is an e-governance application offered by NITI Aayog to electronically maintain data and transparency regarding NGOs/VOs in the country. The NGO-DARPAN was earlier maintained by erstwhile Planning Commission, which has been replaced by the NITI Aayog in 2015.
PM GARIB KALYAN ANNA YOJANA The existing National Food Security Act provides 5kg of food grain per person monthly at a subsidised rate of Rs 2-3 per kg to the country‘s poor. Under the PMGKY, the ration quota was enhanced by another 5 kg for free, was extended by five months till the end of November. The scheme was announced as part of the first relief package during the COVID-19 pandemic for a three-month period. Objective of PMGKY: To ensure that the poorest of the poor were not left hungry. Under this scheme, for the next five months, 5 kg of free rice or wheat, and 1 kg of chana will be provided free. 80 crore individuals would be covered under this scheme. Beneficiaries include Antyodaya Anna Yojana (AAY) and Priority Household (PHH) cardholders. It is a Rs 1.7-lakh crore financial package announced by the government to minimise the impact of Covid-19 lockdown on economy and poor.
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PRADHAN MANTRI MATSYA SAMPADA YOJANA (PMMSY) Pradhan Mantri Matsya Sampada Yojana scheme was launched to bring about Blue Revolution through sustainable and responsible development of fisheries sector in India was recently launched. This scheme was first announced in Budget 2019-20 and then in AatmaNirbhar Bharat. The PMMSY is an umbrella scheme with two separate Components: (a) Central Sector Scheme (CS) and (b) Centrally Sponsored Scheme (CSS). Total estimated investment will be of Rs. 20,050 crores to be implemented over a period of 5 years from FY 2020-21 to FY 2024-25. The goal is to double the fish exports in the next 3 to 4 years i.e. by 2024-25. Objective: To address critical gaps in fish production and productivity Harnessing of fisheries potential in a sustainable, responsible, inclusive and equitable manner; Enhancing contribution to Agriculture GVA and exports; etc. Fisheries constitute 1.24% of National GDP and 7.28% of Agriculture GDP.
E-GOPALA APP e-Gopala App, is a comprehensive breed improvement marketplace and information portal for direct use of farmers. At present, no digital platform is available in the country for farmers managing livestock including buying and selling of disease-free germplasm in all forms, availability of quality breeding services and guiding farmers for animal nutrition, treatment of animals using appropriate medicine. There is no mechanism to send alerts on due date for vaccination, pregnancy diagnosis and calving among other issues and inform farmers about various government schemes and campaigns in the area. The e-Gopala app will provide solutions to farmers on all these aspects. The app is launched part of PM- Matsya Sampada Yojana (PMMSY).
AATMANIRBHAR BHARAT ARISE-ATAL NEW INDIA CHALLENGE The Aatmanirbhar Bharat ARISE- Atal New India Challenge (ANIC) Program was recently launched is a national initiative. Objective: 1. To promote research & innovation, 2. To increase competitiveness of Indian startups and MSMEs, 3. To proactively collaborate with Ministries and the associated industries to facilitate innovative solutions to sectoral problems. The initiative will be carried under the Atal Innovation Mission. Carried out by: Indian Space Research Organization (ISRO) and four ministries: 1. Ministry of Defence; 2. Ministry of Food Processing Industries;
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3. Ministry of Health and Family Welfare; and 4. Ministry of Housing and Urban Affairs. Features: 1. Promote technopreneurs because of their immense potential; 2. 15 sector specific challenges where three challenges are for each ministry; 3. A grant-of-aid of up Rs. 50 lakh for a period of 9 to 12 months for start-ups to develop a minimum usable prototype.
ATAL INNOVATION MISSION (AIM) AIM is Government of India‘s flagship initiative. Objective: To promote a culture of innovation and entrepreneurship; To develop new programmes and policies for fostering innovation in different sectors of the economy; To provide platform and collaboration opportunities for different stakeholders; To create awareness and create an umbrella structure to oversee the innovation ecosystem of the country.
EMERGENCY CREDIT LINE GUARANTEE SCHEME (ECLGS) The scheme was launched as part of the Aatmanirbhar Bharat Abhiyan package announced in May 2020. Aim: To mitigate the distress caused by coronavirus-induced lockdown, by providing credit to different sectors. Objective: To provide fully guaranteed and collateral free additional credit to MSMEs, business enterprises, MUDRA borrowers and individual loans for business purposes to the extent of 20% of their credit outstanding as on 29th February, 2020. Eligibility: Borrowers with credit outstanding up to Rs. 50 crore as on 29th February, 2020, and with an annual turnover of up to Rs. 250 crore. Tenure: Four years, including a moratorium of one year on principal repayment.
PRADHAN MANTRI FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES (PM-FME) SCHEME It is launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME) Scheme It is a centrally sponsored scheme. Aim: To enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000 micro food processing units for providing
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financial, technical, and business support for up gradation of existing micro food processing enterprises.
NATIONAL BEEKEEPING & HONEY MISSION (NBHM) The mission was announced as part of the AtmaNirbhar Bharat scheme. NBHM aims for the overall promotion & development of scientific beekeeping in the country to achieve the goal of ‗Sweet Revolution‘ which is being implemented through National Bee Board (NBB). The main objective of NBHM is to promote holistic growth of beekeeping industry for income & employment generation for farm and non-farm households, to enhance agriculture/ horticulture production and empowerment of women through beekeeping.
PM ATMANIRBHAR SWASTH BHARAT YOJANA It is a new centrally sponsored scheme that caters to detection and cure of new and emerging diseases. It will, Develop capacities of primary, secondary, and tertiary care Health Systems, Strengthen existing national institutions, and create new ones. The main interventions under the scheme are: Support for rural and urban Health and Wellness Centres; Setting up of new integrated public health labs and public health units (PHUs); Strengthening of the National Centre for Disease Control (NCDC); etc.
ATMANIRBHAR BHARAT ROJGAR YOJANA It would boost employment in formal sector and incentivize creation of new employment opportunities during Covid recovery phase under Atmanirbhar Bharat Package 3.0. Government of India will provide subsidy for two years in respect of new employees engaged on or after 1st October, 2020 and up to 30th June, 2021. It will pay 12% employees' contribution and 12% employers' contribution of wages towards EPF in respect of new employees in establishments employing upto 1000 employees for 2 years. It will pay only employees' share of EPF contribution i.e. 12% of wages in respect of new employees in establishments employing more than 1000 employee for two years. An employee with less than Rs. 15000/- monthly wage who was not working in an Employee‘s Provident Fund Organisation (EPFO) registered establishment before 1st October, 2020 will be eligible. EPFO will credit the contribution in Aadhaar seeded account of members in electronic manner. EPFO shall develop a software for the scheme and also develop a procedure which is transparent and accountable at their end.
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SAHAKAR PRAGYA It is part of a series of initiatives taken up by NCDC to strengthen India‗s cooperative societies. It is an innovative capacity building initiative for the farmers associated with such entities in the country. The 45 new training modules will impart training to primary cooperative societies in rural areas of the country. It embodies enhancing NCDC‗s training capacity through an elaborate network of 18 Regional Training Centres across the country. Other Sahakar Initiatives Sahkar Mitra SIP - The ―Scheme on Internship Program‖ (SIP) is an arrangement where NCDC will provide short term opportunity to young professionals acquire learning experience by applying skills and knowledge. YuvaSahakar - Its objective is to motivate and promote the entrepreneurs of India in the Cooperative Enterprise and those individuals working for the business. Ayushman Sahakar - It is a unique scheme to assist cooperatives plays an important role in creation of healthcare infrastructure in the country. SahakarCooptube NCDC Channel - It is an initiative towards One Nation One Market with the objective for India to become food factory of the world. SAHAKAR-22 - It aims to develop cooperatives in Focus 222 districts, including aspirational districts, for doubling the farmers' income through providing new employment opportunities generated through cooperatives.
SAHAKAR MITRA SCHEME It is an initiative by the National Cooperative Development Corporation (NCDC), the cooperative sector development finance organization. It has been launched to assist the cooperative institutions to access innovative ideas of young professionals. In return the young interns will gain confidence to become self-reliant in the field. It is expected to assist cooperative institutions to access new and innovative ideas of young professionals while the interns gain experience of working in the field giving the confidence to be self-reliant. The scheme promotes ―Vocal for Local‖ that was launched under Atma Nirbhar Bharat Abhiyan. Professional graduates in disciplines such as Agriculture and allied areas, IT etc. will be eligible for an internship. Professionals who are pursuing or have completed their MBA degrees in Agri-business, Cooperation, Finance, International Trade, Forestry, Rural Development, Project Management etc. will also be eligible. Each intern will get financial support over a 4 months internship period.
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JAL JEEVAN MISSION (JJM) It is a campaign for water conservation and water security in the country. Collaborative efforts of various ministries and State Governments Coordinated by Ministry of Jal Shakti Focus of the campaign is in 1592 water stressed blocks in 256 districts The five important water conservation interventions are 1. Water conservation and rainwater harvesting, 2. Renovation of traditional and other water bodies/tanks, 3. Reuse of water and recharging of structures, 4. Watershed development 5. Intensive afforestation. JJM aims at providing potable water at service level of 55 litre per capita per day (lpcd) to every rural household through Functional Household Tap Connection (FHTC) by 2024. The fund sharing pattern between the Centre and states is 90:10 for Himalayan and North- Eastern States, 50:50 for other states, and 100% for Union Territories. There has been a 45% shortfall in financing the JJM by both the Centre and the States in its first year of 2019-20. Similarly, in 2020-21 as well, there has been a 32% shortfall at the Central level. Only 18% of households are currently covered. So, Jal Shakti Ministry is pitching for additional funding of Rs. 82,000 crore from the 15th Finance Commission for the project. Jal Shakti Ministry to release grants or funds to the panchayats, to ensure that they follow the JJM‘s five-year village action plans (VAP). (Criticism - It doesn't empower panchayati raj institutions and against the decentralisation process) Every village will prepare a Village Action Plan (VAP) which will have three components: Water source and its maintenance Water supply and Grey-water (domestic wastewater management).
MOBILE APPLICATION FOR GEO TAGGING LAUNCHED BY MINISTRY OF JAL SHAKTI A mobile application for geo-tagging of the components of projects under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) was recently launched. . Ministry: Ministry of Jal Shakti Developed By: Bhaskaracharya National Institute of Space Applications & Geo-informatics (BISAG-N). Objective: To track the pace of work and actual status of the projects. The mobile application can be used to capture the image of the project component along with other details. The captured information can be submitted by the user for geo-tagging on the geographic information system (GIS) portal. It can be operated in both online & offline mode.
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Geo-tagging is the process of adding geographical identification data to various media such as websites, SMS messages, QR Codes. This data usually consists of latitude and longitude coordinates, altitude, accuracy data, etc. A GIS is a framework for gathering, managing, and analyzing geography related data.
PILOT PEY JAL SURVEKSHAN LAUNCHED Pilot Pey Jal Survekshan under Jal Jeevan Mission- Urban, JJM-U was launched recently. Ministry: Ministry of Housing and Urban Affairs It will be conducted in cities to ascertain equitable distribution of water, reuse of wastewater and mapping of water bodies with respect to quantity and quality of water through a challenge process. It will be first launched in 10 cities- Agra, Badlapur, Bhubaneswar, Churu, Kochi, Madurai, Patiala, Rohtak, Surat and Tumkur. JJM-U is designed to provide universal coverage of water supply to all households through functional taps in all 4,378 statutory towns in accordance with SDG - 6.
JAL JEEVAN MISSION URBAN The Union Budget 2021-22 announced Jal Jeevan Mission (Urban), which aims to bring safe water to urban households through tap connection in all statutory towns by the year 2024. The need to roll out an urban mission is to ensure sustainable supply of drinking water in urban India, in line with the Centre‗s Jal Jeevan Mission (Rural) of 2019. JJM (Rural) will provide safe and adequate drinking water through individual household tap connections to all rural households in India by 2024. JJM is based on community approach to water. It has covered only 34% of the targeted households in rural India, which was haunted by the slippage problem. [Slippage problem means villages or habitations covered with safe drinking water facilities slipping back to 'not-covered' status].
PRADHAN MANTRI KRISHI SINCHAYEE YOJANA (PMKSY) PMKSY is a centrally sponsored scheme Launched in 2015 Aim: Har Khet Ko Paani. Objectives: 1. To expand cultivated areas with assured irrigation, reduce wastage of water and improve water use efficiency; 2. To create protective irrigation by harnessing rainwater at micro level; 3. To enhance recharge of aquifers
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ATAL BHUJAL YOJANA (ATAL JAL) It is a central sector scheme worth Rs.6,000 crore for sustainable management of groundwater with community participation. It envisages people's participation through the formation of ‗Water User Associations‘, water budgeting, preparation & implementation of Grampanchayat- wise water security plans, etc. It is being implemented by the Ministry of Jal Shakti The scheme is being funded by the Government of India and the World Bank on 50:50 basis. The identified over-exploited and water-stressed areas for the implementation of the scheme are Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh. ATAL JAL has two major components: Institutional Strengthening and Capacity Building for sustainable ground water management in the States including improving monitoring networks, capacity building, strengthening of Water User Associations, etc. Incentivising the States for achievements in improved groundwater management practices namely, data dissemination, preparation of water security plans etc
INDIA WATER IMPACT SUMMIT It is organised by the Ministry of Jal Shakti and the Centre for Ganga River Basin Management and Studies (cGanga). The summit‘s focus is to host multi-country dialogue to build up India's international collaborations in the water sector. The primary purpose of this conference is to have comprehensive analysis and review of river rejuvenation and local river. The theme of the fifth edition of the summit was based on the concept of "Arth Ganga", river conservation synchronised development. The ‗Arth Ganga‘ initiative would economically enhance the villages which are situated near the Ganges.
GOBAR-DHAN PORTAL Unified GOBAR-DHAN portal was jointly launched by Ministry of Agriculture, Ministry of Petroleum, Ministry of Fisheries, Animal Husbandry and Dairying and Ministry of Jal Shakti. Galvanizing Organic Bio-Agro Resources Dhan (GOBAR-DHAN) scheme converts cattle dung and solid waste to compost, biogas and bio-CNG. It will help in keeping the village clean while increasing the income of farmers and cattle herders. Under this scheme, one village in every district of the country would be selected for its implementation. Villagers will be mobilized to create self-help groups (SHGs) and creative societies that will help in clean energy and green jobs initiative.
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NAMAMI GANGE Namami Gange Programme is an Integrated Conservation Mission, approved as a ―Flagship Programme‖ by the Union Government in June 2014. It is to accomplish the twin objectives of effective abatement of pollution and conservation and rejuvenation of National River Ganga. It is being operated under the Department of Water Resources, River Development and Ganga Rejuvenation, Ministry of Jal Shakti. The program is being implemented by the National Mission for Clean Ganga (NMCG). The state counterpart organizations are State Program Management Groups (SPMGs). NMCG is the implementation wing of National Ganga Council (set in 2016, which replaced the National Ganga River Basin Authority (NRGBA)). It has a Rs. 20,000 crore, centrally-funded, non-lapsable corpus and consists of nearly 288 projects. Recently, the World Bank has approved a five year loan (for the second phase) to the National Mission for Clean Ganga (NMCG) or Namami Gange Project worth Rs.3,000 crore to help stem pollution in the Ganga river basin.
KHELO INDIA STATE CENTRES OF EXCELLENCE (KISCE) Sports Ministry is all set to establish Khelo India State Centres of Excellence (KISCE) under the ministry‘s flagship, Khelo India Scheme to enhance India's Olympic performance. One KISCE will be identified in each state and union territory, with an effort to create a robust sporting ecosystem in the entire country. 8 states identified by the Ministry will run the centres and build capacity to turn them into the world-class sporting facilities. They will be responsible for all aspects of management of the centre. Funds for expert coaches, supporting staff, equipments and infrastructure will be extended through the Khelo India Scheme.
KHELO INDIA PROGRAMME It has been introduced to revive the sports culture in India at the grass-root level by building a strong framework for all sports played in our country and establish India as a great sporting nation. Talented players identified in priority sports disciplines at various levels by the High-Powered Committee will be provided annual financial assistance of INR 5 lakh per annum for 8 years.
SMART CITIES MISSION Fifth anniversary of the Smart Cities Mission was held recently. Housing and Urban Affairs Ministry announced initiatives like - plan to promote cycling in cities (‗Cycles4change Challenge‘) and a finance portal for urban local bodies. Smart Cities Mission is an innovative initiative under the Ministry of Housing and Urban Affairs.
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The Mission covers 100 cities for the duration of five years starting from the financial year (FY) 2015-16 to 2019-20. It aims to drive economic growth and improve the quality of life of people by enabling local development and harnessing technology as a means to create smart outcomes for citizens. Objective: To promote cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of Smart Solutions.
ATAL MISSION FOR REJUVENATION AND URBAN TRANSFORMATION (AMRUT) Chandigarh ranks 2 in implementing projects under AMRUT scheme. Ranking was released by Ministry of Housing and urban affairs (MoUHA). AMRUT launched in 2015 is the new avatar of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The total outlay for AMRUT is Rs.50,000 crores for 5 years from financial year 2015-16 to 2019 20 It will be operated as a Centrally Sponsored Scheme. This mission will be implemented in 500 cities and towns each with a population of one lakh and above. The mission will focus on the thrust areas of Water Supply, Sewerage and septage management, Storm Water Drainage to reduce flooding, Non-motorized Urban Transport and Green space/park. AMRUT adopts a project approach to ensure basic infrastructure services. States will only submit state annual action plans to the centre for broad concurrence based on which funds will be released.
STREETS FOR PEOPLE CHALLENGE The Streets for People Challenge is the response to the need for making the cities more walkable and pedestrian friendly. The Challenge builds on the advisory issued by the Ministry for the holistic planning for pedestrian-friendly market spaces, earlier this year. The Challenge will support cities across the country to develop a unified vision of streets for people in consultation with stakeholders and citizens. Fit India Mission, under Ministry of Youth Affairs and Sports, along with the India program of the Institute for Transport Development and Policy (ITDP) have partnered with the Smart Cities Mission to support the challenge.
TULIP PORTAL The Urban Learning Internship Program (TULIP) is an online portal jointly launched by Ministry of Human Resource Development, the Ministry of Housing & Urban Affairs, and All India Council for Technical Education (AICTE). The program aims to provide internship opportunities to 25,000 fresh graduates in all Urban Local Bodies (ULBs) and Smart Cities across the country.
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It has been conceived pursuant to the Budget 2020-21 announcement under the theme ‗Aspirational India‘ which laid emphasis on changing the approach of education from ‗doing by learning‘ to ‗learning by doing‘. The internship opportunities will be provided for ‗Smart City‘ projects which range from positions in urban planning, water supply, waste management, slum improvement and digital governance among others. Applicants must be Indian citizens who have completed their final year of college within the last 18 months and have a degree of B. Tech, B planning, B. Arch, BA, BSc, B.Com, LLB. Internship durations can range from eight weeks to one year. The TULIP‘s launch is also an important stepping stone for fulfilment of MHRD and AICTE‘s goal of 1 crore successful internships by the year 2025.
CITY INNOVATION EXCHANGE (CIX) PLATFORM City Innovation Exchange (CiX) platform was launched by the Ministry of Housing and Urban Affairs. CiX, through an ‗open innovation‘ process, engages with innovators to design-test-deliver on solutions to pressing urban challenges. It brings together Citizen Organisations-Academia-Businesses-Government to co-create for the future of Urban India in a transparent and sustainable manner. It will ease the discovery, design & validation of solutions through a user centric process that will reduce barriers for innovators and cities to discover fitting solutions. It will help in the flow of ideas ‗outside in and inside out‘, enhancing the skills and capacity required to deliver smart urban governance. Smart Cities Mission will partner with Startup India, Atal Innovation Mission, AGNIi and other initiatives in the Indian Innovation ecosystem.
INDIA URBAN DATA EXCHANGE India Urban Data Exchange (IUDX) is an open-source software platform developed by the Smart Cities Mission and the Indian Institute of Science (IISc), Bengaluru. It facilitates secure exchange of Smart City data amongst data platforms, 3rd party authenticated and authorised applications, and other sources. [This Smart City data could be monetised in the future, similar to the UPI for bank accounts and digital payments.] It serves as an interface for data providers and data users to share, request, and access datasets related to cities, urban governance, and urban service delivery. As the number of cities on IUDX expands, this will scale up to uniform sharing between data producers and data consumers across urban India.
SWADESH DARSHAN SCHEME It is a flagship scheme of Ministry of Tourism launched in 2014-15. It is for an integrated development of theme based tourist circuits in the country. The scheme would result in increased tourist inflow thereby creating employment opportunities for the local community.
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The following thematic circuits have been identified, for development namely, 1. North-East India Circuit, Buddhist Circuit, 2. Himalayan Circuit, Coastal Circuit, Krishna Circuit, 3. Desert Circuit, Tirtankar circuit, Tribal Circuit, 4. Eco Circuit, Wildlife Circuit, Rural Circuit, 5. Spiritual Circuit, Sufi circuit, Ramayana Circuit and Heritage Circuit.
AYUSHMAN BHARAT Ayushman Bharat adopts a continuum of care approach, comprising of two inter-related components, which are, 1. Health and Wellness Centres (HWCs). 2. Pradhan Mantri Jan Arogya Yojana (PM-JAY). It aims to bring quality healthcare to around 50 crore poor and vulnerable Indians (based on the Socio-Economic Caste Census (SECC) data) PM-JAY is world‘s largest health insurance fully financed by government which will provide free coverage of up to Rs 5 lakh per family per year at any government or even empanelled private hospitals all over India for secondary and tertiary medical care facilities. Centrally sponsored scheme with contribution from both Centre and State Cashless access to health care services for the beneficiary at the point of service. Wellness Centres: The 1.5 lakh sub-centres that are converted into wellness centres will cater to majority of services such as detection and treatment of cardiovascular diseases, screening for common cancers, mental health, care of the elderly, eye care, etc.
E-SANJEEVANI PLATFORM It is a national telemedicine service that offers tele- consultations enabling patient to doctor consultations from the confines of their home, as well as doctor to doctor consultations. This e-Sanjeevani platform has enabled two types of telemedicine services viz. Doctor-to- Doctor (e-Sanjeevani) and Patient-to-Doctor (e-Sanjeevani OPD) Tele-consultations The former is being implemented under the Ayushman Bharat Health and Wellness Centre (AB- HWCs) programme. The telemedicine platform is hosting over 40 online OPDs, more than half of these are speciality OPDs which include Gynaecology, Psychiatry, Dermatology, ENT, Ophthalmology, antiretroviral therapy (ART) for the AIDS/HIV patients, Non-Communicable Disease (NCD) etc.
NATIONAL DIGITAL HEALTH MISSION By Digital Health Infrastructure created by NDHM, instead of ferrying medical records in polythene bags from doctor to doctor, Indians will be able to access their lab reports, x-rays and prescriptions irrespective of where they were generated, and share them with doctors or family members with consent.
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Key features of NDHM: Six key building blocks or digital systems namely, HealthID, DigiDoctor, Health Facility Registry, Personal Health Records, e-Pharmacy and Telemedicine. Unique Health ID: Every Indian under the mission would get an ID card containing all relevant information about his/her medical conditions and treatments, tests etc. Comprehensive Health Profile: Ranging from doctor appointment to the medication prescribed, medical tests, every bit of detail will be available in the health profile of an individual across public and private healthcare. National Health Authority (NHA), the attached office of the Ministry of Health & Family Welfare has been given the mandate to design, build, roll-out and implement the NDHM in the country. Encouraging Private Players for promotion of Health Data Analytics &Medical Research. Private stakeholders will have an equal opportunity to integrate with these building blocks and create their own products for the market. However, core activities and verifications, for example, generation of Health ID or approval of a doctor/facility shall remain with the government. Additional components, like Personal Health Record (PHR) and Electronic Medical Record (EMR) solutions can be developed by private players in line with the guidelines that will be issued.
SEHAT SCHEME Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY) SEHAT scheme has been extended to all residents of Jammu and Kashmir. Social Endeavour for Health and Telemedicine (SEHAT) scheme will provide free-of-cost health insurance cover of up to 5 lakh per family on a floater basis to all residents of J&K. It will operate on insurance mode in convergence with PM-JAY. The benefits of the scheme will be portable across the country. The hospitals empanelled under the PM-JAY scheme shall provide services under this scheme as well.
‗NASHA MUKT BHARAT‘ 26th June - International Day against Drug Abuse and Illicit Trafficking. Ministry of Social Justice and Empowerment launched drug-free India campaign - ‗Nasha Mukt Bharat‘ Annual anti-drug action plan (2020-21) would focus on 272 most affected districts and launch a three-pronged attack combining efforts of Narcotics Bureau, Outreach/Awareness by Social Justice and Treatment through the Health Dept. The Action Plan has the following components: 1. Awareness generation programmes; 2. Focus on Higher Educational institutions, University Campuses and Schools; 3. Community outreach and identification of dependent population; 4. Focus on Treatment facilities in Hospital settings; and 5. Capacity Building Programmes for Service Provider.
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Aim/Objectives: Change in the strategy against drugs from institutional level to level of society. It is funded by the Ministry of Social Justice and Empowerment It provides composite/ integrated services for the rehabilitation of the substance dependent person. IRCA is responsible for preventive education and awareness generation which target groups (vulnerable and at risk groups) in their neighbourhood. IRCA envisages total recovery of the addicted person leading to his socio economic rehabilitation through an appropriate combination of individual counselling.
PRADHAN MANTRI BHARTIYA JANAUSHDHI PARIYOJNA (PMBJP) PMBJP is a campaign launched by the Department of Pharmaceuticals, Government of India, to provide quality medicines at affordable prices to the masses through special kendras known as Pradhan Mantri Bhartiya Jan Aushadhi Kendra. PMBJP Kendra is set up to provide generic drugs, which are available at lesser prices but are equivalent in quality and efficacy as expensive branded drugs. BPPI (Bureau of Pharma Public Sector Undertakings of India) has been established under the Department of Pharmaceuticals for co-coordinating in procurement, supply and marketing of generic drugs.
JAN AUSHADHI SUVIDHA Jan Aushadhi Suvidha Sanitary Napkin shall be available at numerous Pradhan Mantri Bhartiya Janaushdhi Pariyojna (PMBJP) Kendras across the country at a minimum price of Rs.1/- per pad. Earlier the price was Rs. 2.50 per pad. The launch of ―Jan Aushadhi Suvidha Oxo- Biodegradable Sanitary Napkin‖ for women of India was announced on the eve of World Environment Day in 2018. It is biodegradable. This means that upon discarding, it is totally biodegradable once it comes in contact with oxygen indicating that they are environmental friendly.
SHISHU LOAN The Central government has announced 'Mudra Shishu loan' for small businesses and cottage industries so that shopkeepers do not suffer due to the COVID-19 pandemic. A 1500 crore interest subvention has been announced. 2% interest rate subvention for a period of 12 months shall be offered by the Government. It shall benefit small borrowers under the Mudra Shishu loans up to ₹50,000. Micro Units Development and Refinance Agency (MUDRA) It is a Non-Banking Financial Company which supports development of micro enterprise sector in the country. It provides refinance support to Banks / MFIs for lending to micro units having loan requirement upto 10 lakh.
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It provides refinance to micro business under the Scheme of Pradhan Mantri MUDRA Yojana. MUDRA offers incentives through these interventions: Shishu : covering loans upto 50,000/- Kishor : covering loans above 50,000/- and upto 5 lakh Tarun : covering loans above 5 lakh and upto 10 lakh. Generally, loans upto 10 lakh issued by banks under Micro Small Enterprises are given without collateral.
HEALTHY AND ENERGY EFFICIENT BUILDINGS INITIATIVE On occasion of World Environment Day, Energy Efficiency Services Limited (EESL), in partnership with the U.S. Agency for International Development‘s (USAID) MAITREE program, launched the ―Healthy and Energy Efficient Buildings‖ initiative to make workplaces healthier and greener. It will address the challenges of retrofitting existing buildings and air conditioning systems so that they are both healthy and energy efficient. Market Integration and Transformation Program for Energy Efficiency (MAITREE) It is a part of the US-India bilateral Partnership between the Ministry of Power and USAID. It is aimed at accelerating the adoption of cost effective energy efficiency as a standard practice within buildings, and specifically focuses on cooling. Energy Efficiency Services Limited (EESL) It is a joint venture of PSUs under the administration of Ministry of Power. It works towards mainstreaming energy efficiency and is implementing the world‘s largest energy efficiency portfolio in the country.
ICOMMIT ABOUT: The Union Ministry of Power recently launched the ‗iCommit‘ initiative on the occasion of World Environment Day. The initiative is a call to all stakeholders and individuals to continue moving towards: Energy efficiency Renewable energy Sustainability to create a robust and resilient energy system in the future. The ‗iCommit‘ initiative is driven by Energy Efficiency Services Limited (EESL). It will also promote key undertakings of Government of India such as National Electric Mobility Mission 2020, FAME 1 and 2, Deen Dayal Upadhyaya Gram Jyoti Yojana etc.
RAISE INITIATIVE Retrofit of Air-conditioning to improve Indoor Air Quality for Safety and Efficiency (RAISE) is a national programme to improve indoor air quality. It is launched by Energy Efficiency Services Limited (EESL), under the administration of Ministry of Power.
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It is developed for healthy and energy efficient buildings, in partnership with US Agency for International Development‘s (USAID) MAITREE programme. The pilot focuses on improving indoor air quality (IAQ), thermal comfort, and energy efficiency (EE) in EESL office‘s air conditioning system. It can potentially alleviate the issue of bad air quality in workspaces across the nation.
ONE SUN ONE WORLD ONE GRID INITIATIVE OSOWOG initiative was recently proposed by India to set up a framework for facilitating global cooperation which aims at building a global ecosystem of interconnected renewable energy resources that can be easily shared. Parent Body: The Union Ministry of New and Renewable Energy (MNRE) Objective: To build global consensus about sharing solar resources among more than 140 countries of West Asia and South-East Asia. This grid shall be interconnected with the African power pools also at the later stage. Proposals are invited from consulting firms for making a long-term OSOWOG road map, and identify two or three cross border projects that can be initiated within one or two years.
‗RESPONSIBLE ARTIFICIAL INTELLIGENCE (AI) FOR YOUTH‘ PROGRAM The Ministry of Electronics and IT has launched a National Program for the youth - Responsible Artificial Intelligence (AI) for Youth. The government has also launched India‘s National Artificial Intelligence Portal. It is designed to reach out to students from Government schools pan India and provide them with an opportunity to become part of the skilled workforce in an inclusive manner. It aims to help reduce the skill gap, while enabling youth to create meaningful social impact solutions. It also intends to provide a platform for relevant AI skill-sets and access to required AI tool- sets to make youth digitally ready for the future. It is open to students of class 8th to class 12th from Central and State government-run schools (including KVS, NVS, JNV) from across the country. It will be implemented in a phase-wise manner. In its first phase, each State will nominate 10 teachers as per the eligibility criteria. National Artificial Intelligence Portal It has been jointly developed by the Ministry of Electronics and Information Technology and National Association of Software and Services Companies (NASSCOM). It will work as a one stop digital platform for sharing of resources such as articles, startups, investment funds in AI etc.
NATIONAL CAREER SERVICE PROJECT The Ministry of Labour and Employment has started offering free online career skills training through its National Career Service (NCS) project for job-seekers registered with it. The training will assist the learners in enhancing personality development.
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The training module is available in Hindi and English on the NCS portal. National Career Service (NCS) project is a Five Year Mission Mode Project launched by the Prime Minister in 2015. It provides a wide array of employment and career related services to the citizens of India. It is implemented by Directorate General of Employment, Ministry of Labour & Employment. No fees are charged for the registration. About 1 crore job seekers and 54,000 employers are registered on the portal.
GODHAN NYAY YOJANA Godhan Nyay Yojana was launched by Chhattisgarh government. Under the scheme, government will procure cow dung at Rs 2 per kilogram from livestock owners and use it to prepare organic fertilizers. Benefits of the scheme: With implementation of this scheme, government aims to give a boost to rural economy and to create employment opportunities in the rural areas. Gives boost to organic farming. Proper disposal of waste produced by cattle, hence keeps the city and roads clean.
AFFORDABLE RENTAL HOUSING COMPLEXES (ARHCS) SCHEME Cabinet approved an affordable rental housing scheme for migrants who went back to their home states during the lockdown. About It is under the ministry of housing and urban affairs It will be a sub-scheme under the Pradhan Mantri Awas Yojana (Urban) The scheme aims to cover nearly 3 lakh beneficiaries initially, with an estimated expenditure of around Rs 600 crore. Targeted beneficiaries would be workers who come from rural areas or towns to work in manufacturing, hospitality, health, construction, etc. 2 components: 1. The ARHC scheme will have a two-pronged approach; first, existing vacant government funded housing complexes will be converted into ARHCs through a concession agreement for 25 years. 2. Secondly, special incentives like use permission, 50% additional Floor Area Ratio or Floor Space Index, concessional loan at priority sector lending rates, tax reliefs at par with affordable housing among others will be offered to private and public entities to develop ARHCs on their own available vacant land for 25 years.
STUDY IN INDIA - STAY IN INDIA SCHEME TO COME UP The Central Government would soon come up with a programme called ―Study in India - Stay in India‖. Objective: To prevent students from leaving the country seeking higher education abroad,
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To bring back Indian students studying abroad. INDSAT Exam Union Ministry of HRD conducted the first ever Indian Scholastic Assessment (Ind -SAT) Test 2020 under its 'Study in India‟ programme. It was announced in 2020-21 budget. Ind-SAT is an exam for grant of scholarships and admissions to foreign students for studying in select Indian universities. The scores will serve as a criterion to shortlist the meritorious students for undergraduate and post-graduate scholarships. EdCIL (India) Limited, a PSU under MHRD and the implementing agency of SII handled the registrations and other aspects of the examination. Under Study in India is a programme of MHRD, foreign students come to study in 116 select higher education institutions in India for under graduate and post graduate programmes.
KRISHI MEGH (NATIONAL AGRICULTURAL RESEARCH & EDUCATION SYSTEM -CLOUD INFRASTRUCTURE AND SERVICES) Ministry of Agriculture & Farmers Welfare virtually launched Krishi Megh along with KVC ALUNET (Krishi Vishwavidyalaya Chhatr Alumni Network) and Online Accreditation System for Higher Agricultural Educational Institutions (HEI). Krishi Megh is a step forward towards digital agriculture of New India. About Krishi Megh: Krishi Megh is the National Agricultural Research & Education System -Cloud Infrastructure and Services. It aims to protect the precious data of the government‘s premier research body Indian Council of Agricultural Research. It has been set up at National Academy of Agricultural Research Management (NAARM) in Hyderabad. Key features: Krishi Megh has been set up under the National Agricultural Higher Education Project (NAHEP), funded by both the government and World Bank. The data recovery centre at NAARM is synchronized with the data centre at the main data centre of the ICAR is at Indian Agricultural Statistics Research Institute (IASRI) Delhi. Built to mitigate the risk, enhance the quality, availability and accessibility of e-governance, research, extension and education in field of agriculture in India. Cater the need to save and preserve the important research-based data in a prompt digitised form to enable its access anywhere in any corner of the country and the world. About KVC ALUNET: Its development has been a result of an idea of social networking for the alumnus of the Agricultural Universities. It will enable the alumni of all the 74 Agricultural Universities in connecting with each other and making it possible to assist the students in internship, placements and to provide support to their almamaters.
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PM-CARE PM-CARES Fund was set to accept donations and provide relief during the Covid-19 pandemic, and other similar emergencies. PM-CARES Fund PM-CARES was set up as a public charitable trust with the trust deed registered on March 27, 2020. It can avail donations from the foreign contribution and donations to fund can also avail 100% tax exemption. PM-CARES is different from the Prime Minister‘s National Relief Fund (PMNRF). Composition: Prime Minister as chairperson Defence Minister, Home Minister, Finance Minister Three trustees nominated by the Prime Minister ―who shall be eminent persons in the field of research, health, science, social work, law, public administration and philanthropy‖. Prime Minister‘s National Relief Fund (PMNRF) PM-CARES Not a Public Authority: It has been stated that the PM-CARES Fund is not a Public Authority under the ambit of Section 2(h) of the RTI Act, 2005.
KIRAN: MENTAL HEALTH REHABILITATION HELPLINE LAUNCHED 24/7 toll-free helpline ‗Kiran‘ was recently launched. Launched by: The Ministry of Social Justice and Empowerment Objective: To provide support to people facing anxiety, stress, depression, suicidal thoughts and other mental health concerns. Coordinated by: The National Institute for the Empowerment of Persons with Multiple Disabilities (NIEPMD), Chennai (Tamil Nadu) and National Institute of Mental Health Rehabilitation (NIMHR), Sehore (Madhya Pradesh). It will cater to - People in Distress, pandemic induced psychological issues and Mental Health Emergency. It will offer mental health rehabilitation services with the objective of early screening, first- aid, psychological support, distress management, promoting positive behaviours, etc. It will be available in 13 languages and has 660 clinical/rehabilitation psychologists and 668 psychiatrists as volunteers. Helpline operators had been sensitised not to ask the caller for name or any identification details. Earlier, the Ministry of Education had launched the ‗Manodarpan‘ initiative to provide psychosocial support and counselling to students for their mental health and well-being.
MANODARPAN INITIATIVE Union Human Resource and Development Ministry virtually launched the Manodarpan initiative under Atma Nirbhar Bharat Abhiyan. This initiative will provide psycho-social support to students, teachers and parents. It aims to address the issues related to mental health and emotional wellbeing.
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The components of the initiative are, 1. Web page on the MHRD website for advisory on psychosocial support. 2. Voluntary Tele-Counselling service on the National Helpline by utilizing National level database and directory of counsellors. 3. Handbook on Psychosocial Support - Enriching Life skills & Wellbeing of Students to be published online. 4. Interactive Online Chat Platform for contact, counselling and guidance by psychologists and other mental health professionals.
ATAL BIMIT VYAKTI KALYAN YOJANA It was introduced from 1st July 2018. Under it, unemployment benefit is paid to the workers covered under the Employees' State Insurance (ESI) scheme. The benefit is paid in the form of cash compensation upto 90 days, once in a lifetime. It can be claimed after three months (90 days) in one or more intervals for being unemployed. Recently, The Employees' State Insurance Corporation (ESIC) has extended the Atal Bimit Vyakti Kalyan Yojana by one year to 30th June 2021. The ESIC has also relaxed eligibility criteria and enhanced the payment of the unemployment benefit under the Yojana.
PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY) Objective: To supplement agriculture, modernize processing, development of integrated cold chains, value addition infrastructure and decrease agri- waste in India. Ministry: Ministry of Food Processing Industries. The PMKSY has seven component schemes: Mega Food Parks Integrated Cold Chain and Value Addition Infrastructure Infrastructure for Agro-Processing Clusters Creation of Backward and Forward Linkages Creation/Expansion of Food Processing & Preservation Capacities Food Safety and Quality Assurance Infrastructure Human Resources and Institutions Under PMKSY, capital subsidy in the form of grants-in-aid ranging from 35% to 75% of the eligible project cost subject to a maximum specified limit is provided to investors. Recently, 27 projects under the PMKSY were approved. The new integrated cold chain projects will generate direct and indirect employment and benefit nearly lakhs of farmers. Cold chain facilities shall be created for the food processing sector across various states. States included: Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu and Uttar Pradesh. Central Sector Scheme of Integrated Cold Chain and Value Addition Infrastructure
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It is a component scheme under PMKSY. The government provides financial assistance in the form of grant-in-aid at the rate of 35% for general areas and the rate of 50% for North-Eastern States, Himalayan States, ITDP Areas, and Islands for storage and transport infrastructure. The assistance at 50% and 75% respectively are also given for value addition and processing infrastructure subject to a maximum grant-in-aid of Rs 10 crores per project.
FIVE STAR VILLAGES SCHEME LAUNCHED Five Star Villages scheme has been launched recently. Ministry: The Department of Posts, Ministry of Communications. Aim: To bridge the gaps in public awareness and reach of postal products and services, especially in interior villages. Objective: To ensure universal coverage of flagship postal schemes in rural areas of the country. It has three components: (1) Product and Service Availability;(2) Product and Service Publicity; (3) Product and Service Marketing. Schemes covered are : 1. Savings Bank accounts, Recurring Deposit Accounts, NSC/KVP certificates, 2. Sukanya Samridhi Accounts/ PPF Accounts, 3. Funded Post Office Savings Account linked India Post Payments Bank Accounts, 4. Postal Life Insurance Policy/Rural Postal Life Insurance Policy and 5. Pradhan Mantri Suraksha Bima Yojana Account/Pradhan Mantri Jeevan Jyoti Bima Yojana Account. Rating System of the scheme - One Scheme is equal to one star of rating. Branch offices will function as one-stop shops to cater all post office related needs of the villagers. Implemented by: A team of five Gramin Dak Sevaks. They will be assigned a village for marketing of all products, savings and insurance schemes. Team will be headed by: Branch Post Master of the concerned Branch Office. The scheme is being launched on pilot basis in Maharashtra. Based on the experience, it will be implemented nation-wide.
BIOTECH-KISAN PROGRAMME It is a farmer-centric pan-India scheme. The programme helps in taking innovative biotechnologies to the farmers. Developed by: Department of Biotechnology, Ministry of Science and Technology. It follows a hub-and-spoke model. It stimulates entrepreneurship and innovation in farmers and also empowers women farmers. Aim: To understand the problems of water, soil, seed and market faced by the farmers and provide simple solutions to them.
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The programme links available science and technology to the farm by first understanding the problem of the local farmer and then providing scientific solutions to those problems. Currently, there are a total of eight Biotech-KISAN Hubs in different Agro-climatic Zones.
SAMARTH SCHEME FOR TEXTILE SECTOR The Samarth-Scheme for Capacity Building in the Textiles Sector Ministry: The Ministry of Textiles It was approved by Cabinet Committee on Economic Affairs (CCEA) in 2017. Objective: To ensure steady supply of skilled manpower in the labour-intensive textile sector; Provide demand driven, placement oriented skills which shall be compliant to National Skills Qualifications Framework (NSQF); To cover the entire value chain of textile, excluding Spinning and Weaving; Promote skilling and skill upgradation in the traditional sectors of handlooms, handicrafts, sericulture and jute; Enable provision of sustainable livelihood either by wage or self-employment.
YUWAAH PLATFORM It is a multi-stakeholder platform to make young people career ready. Launched by: The Ministry of Youth Affairs & Sports and United Nations Children's Fund (UNICEF) A 'Statement of Intent' has also been signed to establish Generation Unlimited in India (YuWaah). Objectives of YuWaah: Providing career guidance support to young people through career portal. Job-readiness and self-exploration sessions to make young people career-ready. Supporting young people by providing entrepreneurship classes with successful entrepreneurs and experts. Creating linkages with aspirational economic opportunities to connect young people with jobs or self-employment. For this, innovative solutions and technology platforms will be engaged to maximize the scale and reach. Up skilling young people on 21st century skills, life skills, digital skills and supporting them through self-learning, for their productive lives and the future of work. Generation Unlimited in India (GenU - YuWaah) It was founded in September 2018. Aim: To transform education, employment and entrepreneurial outcomes for young people around the world at a global and local level It was launched by UNICEF at the 73rd session of the UN General Assembly.
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DEEN DAYAL UPADHYAYA GRAMEEN KAUSHALYA YOJANA (DDU-GKY) The foundation day of Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) was recently celebrated as ―Kaushal Se KalBadlenge‖ (25th September). Ministry: Ministry of Rural Development DDU-GKY was announced by MoRD on Antyodaya Diwas in 2014. It is a demand-driven placement linked skill training initiative working under the National Rural Livelihood Mission (NRLM). It uses skill training and placement in wage employment as a tool to diversify income and enable sustained upward movement out of poverty. DDU-GKY is uniquely focused on rural youth between the ages of 15 and 35 years from poor families. Achievements: Under DDU-GKY, 10.51 lakh rural youth have been trained and 6.65 lakh successfully placed so far. All stakeholders need to bring more rural youths under DDU-GKY, who are interested to become independent and bring a change in society. DDU-GKY and integrated farming initiatives for rural development across the country are important for greater success in skilling and placing the rural youth. DDU-GKY has played a significant role in the context of Aatmanirbhar Bharat through skilling.
KRITAGYA HACKATHON PLANNED FOR ENHANCING FARM MECHANIZATION A hackathon named ―KRITAGYA‖ has been planned by the Indian Council of Agricultural Research (ICAR) under National Agricultural Higher Education Project (NAHEP). Objective: To promote potential technology solutions for enhancing farm mechanization with special emphasis on women friendly equipment. Eligibiliy: Students, faculties and innovators/entrepreneurs from any university / technical institution across the country can apply and participate in the form of a group. Participating students can collaborate with local start-ups, students from technology institutes. Cash prizes are included. National Agricultural Higher Education Project (NAHEP) The ICAR commenced NAHEP in 2017. It is a Government of India and World Bank project. Objective: To support the National Agricultural Research and Education System providing more relevant and better quality education to the students.
INITIATIVES FOR FARMERS LAUNCHED Union Minister for Chemicals & Fertilizers launched POS 3.1 software, SMS Gateway and Home Delivery facility of Fertilizers (RBK) for farmers in Andhra Pradesh. Under POS 3.1 version: Contactless OTP based authentication option has been introduced. Farmers will be able to purchase fertilizers without touching finger print sensors.
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SMS Gateway will periodically send SMS to farmers about availability of fertilizers at retail outlets from where he last purchased the fertilizer. Under an initiative of Home delivery of Fertilizers in Andhra Pradesh through Rythu Bharosa Kendralu (RBK) state Government has launched 10,641 Rythu Bharosa Kendralu (RBKs) in all gram panchayats to provide farmers with quality inputs and allied services. Under this system, farmers after biometric authentication can order fertilizers from RBK (Rythu Bharosa Kendra) in their village and fertilizer will be delivered at their door step.
EPFO‘S NEW FACILITY ON UMANG APP STARTED Recently, the Employees' Provident Fund Organisation (EPFO) has started a facility on the Unified Mobile Application for New-age Governance (UMANG) App which enables members of the Employees‘ Pension Scheme (EPS) 1995 to apply online for Scheme Certificates. Scheme Certificate is issued to members who withdraw their Employees' Provident Fund (EPF) contribution but wish to retain their membership with EPFO, to avail pension benefits on the attainment of retirement age. Members become eligible for pension only if they have been, cumulatively, a member of the EPS, 1995 for at least 10 years. Upon joining a new job, Scheme Certificate ensures that previous pensionable service is added to pensionable service rendered with the new employer It is also useful for family members to avail family pension Employees‘ Provident Fund Organisation (EPFO) It is a government organisation that manages the provident fund and pension accounts for the workforce engaged in the organized sector in India. It implements the Employees‘ Provident Fund and Miscellaneous Provisions Act, 1952. Administered by: Ministry of Labour and Employment. EPS is a social security scheme that was launched in 1995 and is provided by EPFO. It makes provisions for pensions for the employees in the organised sector after the retirement at the age of 58 years.
SVAMITVA SCHEME Indian Prime Minister will launch the physical distribution of Property Cards under the SVAMITVA Scheme on October 11, 2020 to transform rural India. The acronym SVAMITA stands for Survey of Villages and Mapping with Improvised Technology in Village Areas. It was launched in April 2020. Aim: To provide the record of rights to village household owners in rural areas and issue Property Cards. It is being implemented across India in a phased manner over a period of four years. It will cover around 6.62 lakh villages The launch will enable around 1 lakh property holders to download their Property Cards through the SMS link delivered on their mobile phones.
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This would be followed by physical distribution of the Property Cards by the respective State governments. The move will pave the way for using property as a financial asset by villagers for taking loans and other financial benefits. SVAMITVA card It is a Central Sector Scheme (100% by Union Government) implemented by Union Ministry of Panchayat Raj It is aimed at ―providing ‗record of rights‘ to village household owners possessing houses in inhabited rural areas in villages and issuance of property cards to the property owners.‖ The plan is to survey all rural properties using drones and prepare GIS based maps for each village.
TECH FOR TRIBALS INITIATIVE Tech for Tribals initiative launched by TRIFED under Ministry of Tribal Affairs in collaboration with Chhattisgarh MFP Federation and IIT, Kanpur Aim of the initiative: Holistic development of tribals with a focus on entrepreneurship development, soft skills, IT, and business development through SHGs operating through Van Dhan Kendras (VDVKs). TRIFED has tied up with national institutions such as IIT, Kanpur; Art of Living, Bangalore; TISS, Mumbai; KISS, Bhubaneswar; Vivekananda Kendra, Tamil Nadu and SRIJAN, Rajasthan. Vandhan- ESDP Training Programs shall be conducted under these institutes. Tribal Cooperative Marketing Development Federation of India (TRIFED) It came into existence in 1987. It is a national-level apex organization. The basic objective of the TRIFED is to provide good price of the ‗Minor Forest Produce (MFP) collected by the tribes of the country. It functions under Ministry of Tribal Affairs, Govt. of India. TRIFED has its Head Office at New Delhi. It has a network of 13 Regional Offices located at various places in the country.
PRADHAN MANTRI STREET VENDOR‘S VAN DHAN YOJANA It is an initiative of the Ministry of Tribal Affairs and TRIFED, launched in 2018, to improve tribal incomes through the value addition of tribal products. It is a Market Linked Tribal Entrepreneurship Development Program for forming clusters of tribal Self-Help-Groups (SHGs) and strengthening them into Tribal Producer Companies It aims to set-up tribal community owned Minor Forest Produce (MFP)-centric multi-purpose Van Dhan Vikas Kendras. Van Dhan Vikas Kendras would act as common facility centres for procurement cum value addition to locally available MFPs. One typical Van Dhan Vikas Kendra comprises of 15 Self Help Groups, each consisting of 20 Tribal gatherers.
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These SHGs will get training on sustainable harvesting/collection, primary processing & value addition and also provided with working capital to conduct their business.
TRIFOOD Union Tribal Affairs Minister has e-launched the tertiary processing centers of ‗Trifood Project‘. Trifood Project is being implemented by TRIFED, Ministry of Tribal Affairs in association with Ministry of Food Processing (MoFPI). TRIFOOD aims to enhance the income of tribal through better utilization of and value addition to the MFPs collected by the tribal forest gatherers. To achieve this, as a start, two Minor Forest Produce (MFP) processing units will be set up in the following locations. Raigad Unit, Maharashtra that will be used for value addition to Mahua, Amla, custard apple and Jamun and will produce Mahua drink, amla juice, candy, Jamun juice and custard apple pulp. Jagdalpur multi-commodity processing centre, Chhattisgarh will be used for the processing of commodities like Mahua, Amla, honey, cashew, tamarind, ginger, garlic and other fruits and vegetables.
KAMDHENU DEEPAWALI ABHIYAN Rashtriya Kamdhenu Aayog (RKA) recently started a nation- wide campaign to celebrate Kamdhenu Deepawali Abhiyan on the occasion of Deepawali festival. Through this campaign, the RKA is promoting extensive use of cow-dung/ Panchgavya products during this Diwali Festival. Rashtriya Kamdhenu Aayog (RKA) It was constituted by Indian Prime Minister for the conservation, protection and development of cows and their progeny and for giving direction to the cattle development programmes. It is a high powered permanent body to formulate policy and to provide direction to the implementation of schemes related to cattle so as to give more emphasis on livelihood generation.
BHARATMALA PARIYOJANA It is an umbrella program for the highways sector. Initiated by: Ministry of Road Transport and Highways. Objectives: 1. To optimise the efficiency of freight and passenger movement across India by bridging critical infrastructure gaps through effective interventions; 2. To generate a large number of direct and indirect employment opportunities in the construction and infrastructure sector; 3. To connect 550 districts in the country through national highway linkages. Phase-I of Bharatmala Pariyojana: Implementation of 34,800 km of national highways in 5 years (from 2017 to 2022) has been approved (Rs. 5,35,000 crore).
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Phase-II: Around 48,000 km of road network across India by 2024. Effective measures: Development of economic corridors, inter corridors and feeder routes, national corridor efficiency improvement, border and international connectivity roads, coastal and port connectivity roads and Greenfield expressways. Features: 1. Improvement in the efficiency of existing corridors through the development of Multimodal Logistics Parks and elimination of chokepoint; 2. Improving connectivity in North East and increasing harmony with Inland Waterways; 3. Emphasis on the use of scientific and technological planning; 4. Satellite mapping of corridor; 5. Delegation of powers for successful completion of Phase I by 2022. Note: Economic Corridors: These are integrated networks of infrastructure within a geographical area designed to stimulate economic development. Greenfield Projects: They lack constraints imposed by prior work on the site. Typically, it entails development on a completely vacant site and architects start completely from scratch. Brownfield Projects: They carry constraints related to the current state of the site and might be contaminated or have existing structures that architects have to tear down or modify in some way before the project can move forward. Multimodal Logistics Parks: These are a key policy initiative of the Government of India to improve the country's logistics sector by lowering overall freight costs, reducing vehicular pollution and congestion, and cutting warehousing costs. Chokepoint: It is a single point through which all incoming and outgoing network traffic is funnelled and hence, leads to congestion and traffic.
'STARS' PROJECT Ministry of Education, Department of Economic Affairs (DEA) and World Bank have signed an agreement for the financial support towards the implementation of the ―Strengthening Teaching-Learning and Results for States‖ (STARS) Project. The Project seeks to support States in developing, implementing and evaluating interventions with direct linkages to improved education outcomes. It will improve the overall monitoring and measurement activities in the Indian school education system. The total project cost is 5,718 crore rupees. World Bank shall provide assistance amounting to 500 million US dollars. The proposed World Bank support is in the form of a results-based financing instrument called Program for Results (PforR). It would be implemented as a new Centrally Sponsored Scheme under Department of School Education and Literacy. It will cover six States, Himachal Pradesh, Rajasthan, Maharashtra, Madhya Pradesh, Kerala and Odisha.
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DEENDAYAL ANTYODAYA YOJANA- NATIONAL RURAL LIVELIHOOD MISSION (DAY-NRLM) It is a centrally sponsored programme, Ministry: Ministry of Rural Development Aim: 1. To eliminate rural poverty through the promotion of multiple livelihoods and improved access to financial services for the rural poor households across the country; 2. To reach out to all rural poor households and impact their livelihoods. It involves working with community institutions through community professionals. It is implemented in a Mission mode by special purpose vehicles. The government plans to take the scheme to 10 crore women. Recently, the Union Cabinet approved a special package worth Rs. 520 crore in the Union Territories (UTs) of J&K and Ladakh for a period of five years under the DAY-NRLM. The Centre aims to universalise all centrally sponsored beneficiary-oriented schemes in J&K and Ladakh in a time-bound manner. The package has been approved for a period of five years till 2023-24. It has been decided to ensure funding on a demand-driven basis without linking allocation with poverty ratio during the extended period. Around two-third rural women from the UTs will be covered and 10.58 lakh women will get the benefit from the special package.
START-UP VILLAGE ENTREPRENEURSHIP PROGRAMME (SVEP) Women Self Help Groups (SHGs) under the Start-Up Village Entrepreneurship Programme (SVEP) stepped up as effective frontline responders during the ongoing Covid-19 pandemic. SVEP is a sub-scheme of the Deendayal Antyodaya Yojana- National Rural Livelihood Mission (DAY-NRLM). Ministry: Ministry of Rural Development; Implemented in 2016. It has extended business support services and capital infusion to 153 blocks of 23 states as of August 2020. Partner: Entrepreneurship Development Institute of India (EDII), Ahmedabad. Aim: 1. Support the rural poor to come out of poverty; 2. Support the people to set up enterprises and provide support until the enterprises stabilise; (3) Providing self-employment opportunities with financial assistance and training It addresses three major pillars of rural start-ups namely finances, incubation and skill ecosystems.
GHAR TAK FIBRE SCHEME Recently, Indian Prime Minister inaugurated ‗GharTak Fibre‘ scheme in Bihar. Implemented by: Ministry of Electronics and Information Technology Aim: To connect all 45,945 villages of Bihar with high-speed optical fibre internet by 31st March 2021.
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Under the scheme, Bihar has to provide at least five fibre-to-the-home (FTTH) connections per village and at least one WiFi hotspot per village. The Scheme will lead digital services including e-Education, e-Agriculture, Tele-Medicine, and other social security schemes in Bihar. It shall boost the local employment generation with the implementation of Bharat Net initiative which will be done by recruiting local workers.
KISAN SURYODAYA YOJANA Indian Prime Minister launched the Kisan Suryodaya Yojana in Gujarat. Under the scheme, 16 hours of power supply shall be provided to farmers. Objective: To provide day-time power supply for irrigation. Under this scheme, farmers will be able to avail power supply from 5 AM to 9 PM. The state government has allocated a budget of Rs.3500 crore for installing transmission infrastructure under this scheme by 2023. 234 ‗66-Kilowatt‘ transmission lines will be established under the project, in addition to 220 KV substations. All districts will be covered in a phase-wise manner by 2022-23. The scheme would help in the expansion of micro irrigation in the state. Micro irrigation is defined as the frequent application of small quantities of water directly above and below the soil surface; usually as discrete drops, continuous drops or tiny streams through emitters placed along a water delivery line.
INDIRA RASOI YOJANA Recently, Indira Rasoi Yojana was launched in Rajasthan. Over 50 lakh people have benefited from the scheme in Rajasthan. Aim: To provide nutritious food to the poor and needy twice a day at concessional rates. Under the scheme, each plate serves 100 grams of pulses and vegetables each, 250 grams of chapatti and pickles. Implementation: Local voluntary organisations Monitoring: A committee headed by the District Collector monitors the scheme. A special app has also been created for monitoring the food quality. Target: To serve 1.34 lakh people per day in the state.
PRE-MATRIC SCHOLARSHIP SCHEME It is a centrally funded scholarship scheme for students in all states. It opens every year and has to be applied between August and November. Aim: To help students of minority communities - Muslims, Christians, Sikhs, Parsis, Jains and Buddhists having annual income below Rs. 1 lakh. Eligibility: Students need to score at least 50% in their class exams. It is given in two tiers every year: Students in class 1 to 5: Rs. 1,000 per year; Students of class 6 to 10: Rs. 10,700 if a hosteller or Rs 5,700 if a day scholar.
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A recent investigation has found that the money meant for poor students under the Pre- Matric Scholarship Scheme in Jharkhand has been siphoned off and is not reaching the students.
MODIFICATIONS IN PRE AND POST MATRIC SCHOLARSHIP SCHEMES Lok Sabha was informed about the Modifications in Pre and Post Matric Scholarship Schemes for SCs and OBCs. Ministry: Ministry of Social Justice & Empowerment Important changes introduced in the scheme Pre-Matric Scholarship for SC students: The funding pattern - fixed sharing pattern of 60:40 between Centre and the States (90:10 in case of North Eastern States) or Notional Allocation whichever is lower. The Annual Family Income limit increased from Rs. 2 lakh to Rs 2.5 lakh. Rates of maintenance allowances were also increased. Post-Matric Scholarship for SC students: It shall continue from 2020-21 to 2025-26 Funding pattern - sharing ratio of 60:40 between the Centre and the States (90:10 in case of NE States) Pre-Matric Scholarship for OBCs and Post Matric Scholarship for OBCs: Pre-Matric Scholarship increased from Rs.1 lakh to Rs. 2.5 lakh per annum. Post Matric Scholarship increased from Rs.1.5 lakh to Rs.2.5 lakh per annum.
PRADHAN MANTRI FASAL BIMA YOJANA (PMFBY) Crop Insurance Scheme- The Pradhan Mantri Fasal Bima Yajana (PMFBY) successfully completes 5 Years of operations on 13th January 2021. The Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in 2016. It is an insurance service scheme for farmers for their yields. It aims to reduce the premium burden on farmers and ensure early settlement of crop assurance claim for the full insured sum. The scheme extends coverage for the entire cropping cycle from pre-sowing to post-harvest including coverage for losses arising out of prevented sowing and mid-season adversities. It was formulated in line with One Nation–One Scheme theme by replacing earlier two schemes National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS). The Scheme covers all Food & Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available and for which requisite number of Crop Cutting Experiments (CCEs) are being conducted under General Crop Estimation Survey (GCES). Implemented by: Empanelled general insurance companies. Administered by: Ministry of Agriculture The scheme is compulsory for loanee farmers availing Crop Loan /KCC account for notified crops and voluntary for others.
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To boost the safety of farmers' crops and ensure the maximum benefit of crop insurance reaches farmers, the Government of India has allocated Rs 16000 crores for Pradhan Mantri Fasal Bima Yojana (PMFBY) for the fiscal year 2021-22.
KISAN CREDIT CARD (KCC) SCHEME The KCC scheme was launched in 1998 with the aim of providing short-term formal credit to farmers. It specifically designed by NABARD to provide farmers with financial support. Owner cultivators as well as tenant farmers can avail loans to meet their agricultural needs under this scheme at attractive rates of interest The Kisan Credit Card Scheme is implemented by Commercial Banks, RRBs, Small Finance Banks and Cooperatives. The scheme comes with an ATM enabled RuPay debit card with facilities for one-time documentation, built-in cost escalation in the limit, and any number of drawals within the limit. KCC covers post-harvest expenses, produce marketing loan, consumption requirements of farmer household, working capital for maintenance of farm assets and activities allied to agriculture, investment credit requirement for agriculture and allied activities.
PRADHAN MANTRI ANNADATA AAY SANRAKSHAN ABHIYAN (PM-AASHA) It is an umbrella scheme which will provide Minimum Support Price assurance to farmers Components of PM-AASHA: 1. Price Support Scheme (PSS) Under the PSS, Central nodal agencies will procure pulses, oilseeds and copra with proactive role of state governments. FCI and NAFED will help implement the scheme The government will procure 25% of the marketable surplus of farmers for eligible crops 2. Price Deficiency Payment Scheme (PDPS) Under PDPS, the state will provide the difference between the prices prevailing in mandis and the MSP. There will be no physical procurement of crops 3. Pilot of Private Procurement & Stockist Scheme (PPPS) The selected private agency shall procure the commodity at MSP in the notified markets whenever the prices in the market fall below the notified MSP and whenever authorized by the state/UT government. Department of Food and Public Distribution (DFPD) for procurement of paddy, wheat and nutri-cereals/coarse grains and of Ministry of Textile for cotton and jute will be continued for providing MSP to farmers for these crops. The PDPS component of PM-AASHA scheme is modelled on the Bhawantar Bhugtan Yojana that has been implemented by the Madhya Pradesh state government as well as Bhavantar Bharpai Yojana of Haryana Government.
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According to a survey conducted by the National Sample Survey Office (NSSO) in the 70th round in 2013, only 6% of farmers are able to sell their produce at MSP. Other schemes which are directed at increasing farmers welfare & doubling of farmers income by 2022 include: Setting up of Gramin Agricultural Markets (GrAMs) Pradhan Mantri Fasal Bima Yojana Pradhan Mantri Krishi Sinchai Yojana Paramparagat Krishi Vikas Yojana Soil Health Card scheme
ONE NATION ONE RATION CARD (ONORC) SCHEME The Department under Ministry of Consumer Affairs, Food & Public Distribution in association with State/UT Governments is implementing the ‗One Nation One Ration Card‘ (ONORC) plan for nation-wide portability of ration cards under the National Food Security Act, 2013 (NFSA). Objectives: In simple words, the ONORC will bring the following changes: Reforms in the public distribution system. Access of food grains to each beneficiary. Integrating all the Indian states and UTs in the scheme by March 2021. Characteristics: It is being implemented under the Integrated Management of PDS (IMPDS.) Existing ration cards will be turned as one nation one ration card. It will be a universal ration card allotted to each beneficiary registered under NFSA. Using the ONORC, a beneficiary who migrates from one place to another can buy subsidized food grains from the fair price shop located in the destination city regardless of the origin of the beneficiaries. The beneficiaries will be identified through biometric authentication on electronic Point of Sale (ePoS) devices. These devices will be installed at each fair price shop. The national portability will work using, Integrated Management of Public Distribution System (IM-PDS) portal – It will provide the technological platform for the ration cards portability. Annavitran portal – It will host the data of the food grains distribution through ePoS devices within a state. This will help a beneficiary to access subsidized food grains within a state (inter-district.) Aadhar Cards will be seeded with ration cards which will help beneficiaries get the ration using the same ration card.
MAHATMA GANDHI NATIONAL FELLOWSHIP (MGNF) Mahatma Gandhi National Fellowship (MGNF) was recently rolled out. Ministry: Ministry of Skill Development and Entrepreneurship
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The fellows under MGNF will acquire academic expertise and technical competency in understanding the overall skill ecosystem along with being attached to District Skill Committees (DSCs). It will help them manage the skill development planning at the district level through the mechanism of formulating District Skill Development Plans (DSDPs). The first pilot MGNF which had 69 fellows working across 69 districts was successful. The Ministry is now expanding MGNF to all remaining districts in India. The Ministry has sought academic partnership with only the IIMs.
RASHTRIYA YUVA SASHAKTIKARAN KARYAKRAM The Scheme Rashtriya Yuva Sashaktikaran Karyakram (RYSK) is an ongoing Central Sector Scheme. The budget allocation of the scheme RYSK for the year 2020-21 is Rs.486.48 Crore. It is an umbrella scheme. The 7 sub-schemes under scheme RYSK are: 1. Nehru Yuva Kendra Sangathan. 2. National Youth Corps. 3. National Programme for Youth and Adolescent Development. 4. International Cooperation. 5. Youth Hostels. 6. Assistance to Scouting and Guiding Organisations. 7. National Young Leaders Programme.
NEERA Khadi and Village Industries Commission (KVIC) has rolled out a unique project to produce Neera and Palmgur which has huge potential to create employment in the country. The project that aims at promoting Neera as a substitute to soft drinks while also creating self-employment to Adivasis and traditional trappers was launched at Dahanu in Palghar district of Maharashtra, a state with more than 50 lakh palm trees. KVIC distributed tool kits for extraction of Neera and making palmgur to 200 local artisans who were given 7 days training by KVIC. Neera, extracted from the palm trees before sunrise, is a nutrient-rich health drink consumed in many Indian states. At the same time, Neera has high export potential as it is also consumed in countries like Sri Lanka, Africa, Malaysia, Indonesia, Thailand, and Myanmar. India has an abundance of palm fields in states like Maharashtra, Gujarat, Goa, Daman & Diu, Dadra and Nagar Haveli, Tamil Nadu, Uttar Pradesh and Bihar that can make India a leading producer of Neera globally.
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KUMHAR SASHAKTIKARAN YOJANA (KSY) It is an initiative of the Khadi and Village Industries Commission (KVIC) to strengthen and improve the living of potters in the remotest of locations in the country by making them self- reliant. The average income of potters under the Kumhar Sashaktikaran Yojana has gone up from nearly Rs 3,000 per month to nearly Rs 12,000 per month. This program provides the following support to potters, Training for advanced pottery products Latest, new technology pottery equipments like the electric Chaak Market linkages and visibility through KVIC exhibitions Due to the supply of electric chaaks, the potters have reaped the following benefits. More production with fewer hours of work. Less noise and better health benefits Less power consumption with smooth transition to higher speeds
GRAMODYOG VIKAS YOJANA Gramodyog Vikas Yojana aims to promote and develop the village industries through common facilities, technological modernization, training etc. The scheme is under the Ministry of Micro, Small and Medium Enterprises. Under the scheme, R&D support would be given to the institutions that intend to carry product development, new innovations, design development, product diversification processes etc. The village institutions will be provided market support by way of preparation of product catalogue, Industry directory, market research, new marketing techniques, buyer seller meet, arranging exhibitions etc. Recently, a new programme has been approved under the scheme for the benefit of artisans involved in manufacturing of Agarbatti. Under this mission, Khadi and Village Industries Commission (KVIC), will provide training, and assist artisans with agarbatti manufacturing machines.
BHARTIYA POSHAN KRISHI KOSH (B.P.K.K.) It is a web portal having information of India‘s crop diversity across all districts – for both current and historical crops have been developed. It aims to provide data informed agro ecological contexts required to produce traditional and locally available nutrition-rich crops. The B.P.K.K. is designed to indicate the nutritional value of all major food crops, vegetables and fruits grown in all states and UTs of India down up to a district level. The information is aimed to be useful for all age groups. There is a special focus on dietary charts for pregnant women based on regional preferences. Necessary data has been collected in consultation with nodal ministries/departments. Concerned Ministry - Ministry of Women and Child Development.
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E-CHARAK e-Channel for Herbs, Aromatic, Raw material And Knowledge is a platform to enable information exchange between various stakeholders involved in the medicinal plants sector. Jointly developed by the National Medicinal Plants Board (NMPB), Ministry of AYUSH and Centre for Development of Advanced Computing (C-DAC). Serves as a virtual market place for buyers and sellers of medicinal plants sector to interact with each other. Serves as a knowledge repository of technologies, market information and other resources related to medicinal plants sector.
PARAMARSH SCHEME It is a scheme for Mentoring National Accreditation and Assessment Council (NAAC) Accreditation Aspirant Institutions to promote Quality Assurance in Higher Education. Implementing Agency: University Grants Commission (UGC). Coverage: The scheme will target 1000 Higher Education Institutions for mentoring. It will be operationalized through a ―Hub & Spoke‖ model i.e. Hub= Mentor & Spoke=Mentee institutions NAAC was established in the year 1994 as an autonomous institution of the UGC with its Headquarter in Bengaluru. The mandate of NAAC is to make quality assurance an integral part of the functioning of Higher Educational Institutions. UGC came into existence in 1953 and became a statutory organization in 1956 Objective of UGC - Coordination, determination and maintenance of standards of teaching, examination and research in university education.
PRADHAN MANTRI KARAM YOGI MAANDHAN SCHEME (PMKYMS): Announced in Union Budget 2019-20 Under this Pension Scheme, all shopkeepers, retail traders and self-employed persons would be provided with an assured minimum monthly pension of Rs. 3,000 on attaining the age of 60 years. All Scheme beneficiaries must have annual turnover less than Rs. 1.5 crore. Age eligibility: Between 18 -40 years The Scheme will cover 3 crore small shopkeepers and retail traders. Scheme Enrolment to be kept simple requiring only Aadhaar, bank account and a selfdeclaration The applicant must not be an existing beneficiary of EPFO, ESIC, NPS, PM-SYM schemes or an income tax payee.
KISAN URJA SURAKSHA EVAM UTTHAAN MAHABHIYAN (KUSUM) SCHEME Kusum Scheme aims to promote use of solar energy among farmers. Launched by The Ministry of New and Renewable Energy in 2019 Scheme Consists of 3 components.
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10,000 MW of Decentralized Ground Mounted Grid Connected Renewable Power Plant each of 500KW to 2 MW in the rural area; Installation of 17.50 lakh standalone off-grid Solar Powered Agriculture Pumps to fulfil irrigation needs of farmers not connected to grid. Solarization of existing grid connected agriculture pumps to make farmers independent of grid supply and also sell surplus solar power generated to Discom and get extra income. All three components combined; the scheme aims to add a solar capacity of 25,750 MW by 2022. It will result in saving of about 27 million tonnes of CO2 emission per annum. Component-B of the Scheme on standalone solar pumps may result in saving of 1.2 billion liters of diesel per annum. KUSUM scheme can potentially convert one-third to one-fourth of all irrigation pumps into solar powered pumps in a short period of 3 years.
SANKALP PROJECT- SKILLS ACQUISITION AND KNOWLEDGE AWARENESS FOR LIVELIHOOD PROMOTION SANKALP is a Centrally sponsored scheme of Ministry of Skill Development & Entrepreneurship. Collaboration with World Bank. Objective: To enhance institutional mechanisms for skills development and increase access to quality and market-relevant training for the work force. Four Key areas of SANKALP are: 1. Convergence and Institutional strengthening of skill programs at National & State level 2. Quality Assurance of skill development programs through building a pool of quality trainers, developing model curriculum, content & assessment standards. 3. Inclusiveness: Providing access to skill training opportunities to the disadvantaged sections 4. Establishing a robust monitoring and evaluation system for skill training programs. SANKALP aims to implement the mandate of the National Skill Development Mission (NSDM) Related Scheme: Skills Strengthening for Industrial Value Enhancement (STRIVE) Scheme is a World Bank Assisted- Government of India project with the objective of improving the relevance and efficiency of skills training provided through Industrial Training Institutes (ITIs) and apprenticeships.
PRADHAN MANTRI KAUSHAL VIKAS YOJANA 3.0 It is the flagship outcome-based skill training scheme of the Ministry of Skill Development and Entrepreneurship. Under this Scheme, Training and Assessment fees are completely paid by the Government. Third phase of Pradhan Mantri Kaushal Vikas Yojana (PMKVY 3.0) was launched for the period of 2020-2021.
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It would make skill development more demand-driven and decentralised in its approach, with focus on digital technology and Industry 4.0 skills. It will be implemented in a more decentralized structure with greater responsibilities and support from states/UTs and districts. District Skill Committees, under the guidance of State Skill Development Missions, will play a key role in addressing the skill gap and assessing demand at the district level. PMKVY 3.0 will be more trainee-centric and learner-centric. It will be a propagator of vocational education at an early level for youth to capitalize on industry-linked opportunities.
SURAKSHIT MATRITVA AASHWASAN INITIATIVE (SUMAN) SUMAN initiative was launched by Ministry of Health for Zero Preventable Maternal and New born Deaths. Under it, pregnant women, mothers up to 6 months after delivery, and all sick new-borns will be able to avail free healthcare benefits. The government will also provide free transport from home to health institutions. The pregnant women will have a zero expense delivery and C-section facility in case of complications at public health facilities.
PRADHAN MANTRI MATRU VANDANA YOJANA(PMMVY) Centrally Sponsored Scheme; Launched in 2017. Parent Body: Ministry of Women and Child Development. It is a direct benefit transfer (DBT) scheme under which cash benefits are provided to pregnant women in their bank account directly to meet enhanced nutritional needs and partially compensate for wage loss. The scheme excludes those who are in regular employment with the Central Government or the State Governments or PSUs. Under PMMVY, Pregnant Women and Lactating Mothers (PW&LM) receive a cash benefit of Rs. 5,000 in three instalments on fulfilling the certain conditionalities (registrations, regular check-ups, vaccination of child etc) The eligible beneficiaries also receive cash incentive under Janani Suraksha Yojana (JSY). Thus, on an average, a woman gets Rs. 6,000. JSY is a 100% centrally sponsored scheme to promote institutional delivery of pregnant women. Under the JSY, eligible pregnant women are entitled for cash assistance irrespective of the age of mother and number of children, for giving birth in a government or accredited private health facility.
MISSION PARIVAR VIKAS (MPV) It was launched by Union Health Ministry in 145 high focus districts having the highest total fertility rates (TFR) in the country
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Objective: To accelerate access to high quality family planning choices based on information, reliable services and supplies within a rights based framework. The scheme aims for immediate, special and accelerated efforts to reach the replacement level fertility goals of 2.1 by 2025 These 145 districts are in theseven high TFR states of Uttar Pradesh, Bihar, Rajasthan, Madhya Pradesh, Chhattisgarh, Jharkhand and Assam These 145 districts have TFR of more than/equal to 3.0 and are home to 28% of India‘s population (about 33 Crores).
SWAJAL SCHEME Swajal is a community owned drinking water programme for sustained drinking water supply. It was launched by Ministry of Drinking Water and Sanitation in June 2018 The scheme seeks to provide water to 115 aspirational districts in India to help them in meeting their basic needs such as drinking, cooking and other domestic essentials. The aim is to help ebb the scarcity of water in rural areas and help them get sustained access to consumable, treated water. The water hygiene and sanitation will also be taken care of in this scheme as it will be implemented through fitted pipes. While the government is funding 90% of the scheme, the remaining 10% is being fulfilled by communities that will receive its benefits. It will involve an outlay of Rs 700 crores through flexible-funds under the existing National Rural Drinking Water Programme (NRDWP) budget.
PRADHAN MANTRI SWASTHYA SURAKSHA YOJANA (PMSSY) Aim: Correcting regional imbalances in the availability of affordable/reliable tertiary healthcare services and also augmenting facilities for quality medical education in the country. It is a Central Sector Scheme. Parent Body: Ministry of Health and Family Welfare Components of PMSSY: Setting up of new AIIMS like institutes in underserved regions of the country. Upgradation of existing Government Medical Colleges
E-NAM e-NAM was launched in 2016 as a pan-India electronic agricultural marketing/trade portal linking APMCs across the States. It is managed by Small Farmers‘ Agribusiness Consortium (SFAC). e-NAM provides for contactless remote bidding and mobile-based any time payment for which traders do not need to either visit mandis or banks for the same. Presently, 585 mandis in 16 States and 2 UTs are integrated on e- NAM portal. In April 2020, Union Government launched new features on e-NAM:-
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1. Warehouse based trading module in e-NAM software to facilitate trade from warehouses based on e-NWR, 2. FPO trading module in e-NAM whereby FPOs can trade their produce from their collection center without bringing the produce to APMC 3. Enhanced version of logistic module has been released to facilitate inter-mandi and interstate trade at this juncture.
SWAMITVA SCHEME SWAMITVA stands for Survey of Villages and Mapping with Improvised Technology in Village Areas. Under the scheme, the latest surveying technology such as drones will be used for measuring the inhabited land in villages and rural areas. The mapping and survey will be conducted in collaboration with the Survey of India, State Revenue Department and State Panchayati Raj Department under the Ministry of Panchayati Raj. Property Cards will be prepared and given to the respective owners. The scheme will create records of land ownership in villages and these records will further facilitate tax collection, new building plan and issuance of permits. It will enable the government to effectively plan for the infrastructural programs in villages. It would help in reducing the disputes over property.
MAA- ―MOTHER‘S ABSOLUTE AFFECTION‖ PROGRAMME It is a nationwide programme of the Ministry of Health and Family Welfare to promote breastfeeding and provision of counselling services for supporting breastfeeding through health systems. The programme has been named ‗MAA‘ to signify the support a lactating mother requires from family members and at health facilities to breastfeed successfully. Objectives of the Programme are: Breastfeeding to be positioned as an important intervention for child survival and development. Reinforce lactation support services at public health facilities through trained healthcare providers and through skilled community health workers. To incentivize and recognize those health facilities that show high rates of breastfeeding along with processes in place for lactation management.
ATAL PENSION YOJANA (APY) In News: APY completed five years of implementation and garnered over 2.2 crore subscribers. APY was launched on 9th May, 2015, with the objective of creating a universal social security system for all Indians, especially the poor, the underprivileged and the workers in the unorganised sector.
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Administered by: Pension Fund Regulatory and Development Authority (PFRDA) through National Pension System (NPS). Any citizen of India can join the APY scheme. The age of the subscriber should be between 18- 40 years. The contribution levels would vary and would be low if a subscriber joins early and increases if she joins late. It provides a minimum guaranteed pension ranging from Rs 1000 to Rs 5000 on attaining 60 years of age. PFRDA is the statutory Authority established by an enactment of the Parliament, to regulate, promote and ensure orderly growth of the National Pension System (NPS) It works under the Department of Financial Services, Ministry of Finance. NPS is a government-sponsored pension scheme. It was launched in 2004 for government employees. Now, any individual citizen of India (both resident and nonresident) in the age group of 18- 65 can join NPS.
NATIONAL BIO-PHARMA MISSION It is Industry-Academia Collaborative Mission of Department of Biotechnology (DBT), Govt of India for accelerating discovery research to early development for Biopharmaceuticals approved by the Cabinet for a total cost US $250 million. It is 50% co-funded by the World Bank is being implemented at Biotechnology Research Assistance Council (BIRAC). This program is dedicated to deliver affordable products to the nation with an aim to improve the health standards of India‘s population Vaccines, medical devices and diagnostics and bio-therapeutics are few of its most important domains, besides, strengthening the clinical trial capacity and building technology transfer capabilities in the country.
TRIBAL HEALTH AND NUTRITION PORTAL ‗SWASTHYA‘ It is a first of its kind e-portal, providing all health and nutrition related information of the tribal population of India in a single platform e-launched by Union Ministry of Tribal Affairs. Swasthya will also curate innovative practices, research briefs, case studies, and best practices collected from different parts of India to facilitate the exchange of evidence, expertise and experiences. It has a dashboard, knowledge repository, partner segment, Sickle Cell Diseases (SCD) support corner. The Ministry of Tribal Affairs has recognized Piramal Swasthya as the Centre of Excellence for Knowledge Management (CoE for KM) for Health and Nutrition. The CoE will constantly engage with the Ministry and provide inputs to drive evidence-based policy and decision-making pertaining to health and nutrition of the tribal population of India.
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OPERATION GREENS Operation Greens Scheme is being implemented by MoFPI, for TOP (Tomato-Onion-Potato) crops. Now the scheme has been extended to other notified horticulture crops for providing subsidy for their transportation and storage from surplus production area to major consumption centres. \ The objective of intervention is to protect the growers of fruits and vegetables from making distress sale due to lockdown and reduce the post -harvest losses.
NAVIGATING THE NEW NORMAL It is a behavioural change campaign developed under the guidance of Empowered Group 6, chaired by NITI Aayog CEO. The campaign focuses on Covid-safe behaviour, especially wearing masks, during the 'Unlock' phase of the Covid-19 pandemic. The campaign has two parts. 1. Web portal containing resources informed by behavioural science and the use of nudge and social norms theory. 2. Media campaign focused on the wearing of masks. The campaign and website were launched in partnership with Bill and Melinda Gates Foundation (BMGF), Centre for Social and Behavioural Change (CSBC) and the Ministries of Health and WCD.
SPARC INITIATIVE Scheme for Promotion of Academic and Research Collaboration (SPARC) is an initiative of the Ministry of Human Resource Development. IIT, Kharagpur is the National Coordinating Institute to implement the SPARC programme. It aims at improving the research ecosystem of India‗s higher educational institutions by facilitating academic and research collaborations between Indian institutions and the best institutions in the world.
ACCELERATE VIGYAN Recently, the Science and Engineering Research Board (SERB), has launched a scheme called Accelerate Vigyan (AV) to strengthen scientific research mechanisms in the country. It aims to expand the research base, with three broad goals i.e. 1. Consolidation/aggregation of all scientific programs, 2. Initiating high-end orientation workshops, 3. Creating opportunities for research internships. An Inter-Ministerial Overseeing Committee (IMOC) involving all the scientific ministries/departments has been constituted for the purpose of supporting SERB in implementing the AV scheme.
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ABHYAAS Programme - It is an attempt to boost research and development by enabling and grooming potential PG/PhD students by means of developing their research skills in selected areas across different disciplines or fields. It has two components - High-End Workshops i.e. KARYASHALA and Research Internships i.e. VRITIKA. SAYONJIKA is an open-ended program to catalogue the capacity building activities in science and technology supported by all government funding agencies in the country. SANGOSHTI is a pre-existing program of SERB for the organization of workshops.
VRIKSHAROPAN ABHIYAN ―Vriksharopan Abhiyan‖ is a campaign orgainsed by the Ministry of Coal. It is a part of going green Initiative of Ministry of Coal. Under this initiative, large scale plantation will be carried out in colonies, offices, and mines and in other suitable areas of coal and Ignite PSUs. Seedlings will also be distributed under the campaign in the nearby areas for promoting plantation by society. It invloves all coal and lignite PSUs. Under this initiative six eco-parks were inaugurated by Home Ministry, it will provide avenues for the adventure, water sport, recreation, bird watching, etc. Going Green initiative involves maximization of green cover through ecological reclamation of the mined-out areas and overburden dumps, avenue plantation at suitable places, and plantation in and around the mines.
MISSION KARMAYOGI The Union Cabinet has introduced Mission Karmayogi, plan to train, skill, have ‗ideal‗ civil servants. It will be available for civil servants from the rank of assistant section officer to Secretary, across services. Mission Karmayogi aims to shift the focus from ‗rule-specific‗ to ‗role-specific‗. It is also known as National Programme for Civil Services Capacity Building (NPCSCB), will be steered by four new bodies. The new entities will be (a) Prime Minister‗s Public Human Resources Council, (b) Capacity Building Commission, (c) Special Purpose Vehicle (SPV) (that will own and operate the digital assets and technological platform for online training), (d) Coordination Unit (headed by the Cabinet Secretary). Structure - The Prime Minister‘s Public Human Resources Council will be headed by the PM, and will have select Union Ministers, Chief Ministers, eminent academics, HR practitioners, global thought leaders, and public service functionaries as members. It will be the top body that will provide strategic direction to the task of civil services reform and capacity building, and approve and monitor the capacity building plans.
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An Integrated Government Online Training (iGOT)-Karmayogi platform will be developed for the project. The iGOT platform will enable the transition to a role-based HR management & continuous learning. A SPV will be set up as a not-for-profit company to own and manage the iGOT-Karmayogi platform. It will also own all Intellectual Property Rights on behalf of the Government of India. Funding of the project - The project, which will cover around 46 lakh central government employees, will be set up at a cost of Rs 510.86 crore over the next five years. Initial funding to the tune of $50 million will come from multilateral agencies including the World Bank and Asian Development Bank. Also, all government departments will contribute Rs 431 annually for each civil servant working for them as subscription charge for the SPV.
SHIKSHAK PARV Under the Shikshak Parv initiative, Ministry of Education is organizing a series of webinars on NEP and its implementation. Shikshak Parv is being celebrated from 8th-25th September 2020. NEP aims to pave the way for transformational reforms in school and higher education systems in the country. This policy replaces the 34-year-old National Policy on Education (NPE),1986. NEP 2020 is aligned to the 2030 Agenda for Sustainable Development. It is built on the foundational pillars of Access, Equity, Quality, Affordability and Accountability. An autonomous body, the National Educational Technology Forum (NETF), is proposed to provide a platform to facilitate decision making on the induction, deployment, and use of technology, as well as the opportunity to consult and share best practices.
SERB-POWER Recently, The Union Minister for Science and Technology has launched SERB-POWER (Promoting Opportunities for Women in Exploratory Research) Scheme. It has two components of fellowship and research grants. The scheme is designed exclusively for women scientists to mitigate gender disparity in science and engineering research in various science and technology (S&T) programmes in Indian academic institutions and research and development (R&D) laboratories. It will serve as a benchmark of recognition in the national scenario and will empower women scientists and cultivate a women-friendly culture and ensure more women in leadership positions in decision-making bodies. Eligibility Criteria: 1. Women researchers in 35-55 years of age. 2. Up-to 25 Fellowships per year and not more than 75 at any point in time. Duration: Three years, without the possibility of extension. Once in a career.
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Grants will be regulated through terms of reference conforming to SERB-Core Research Grant (CRG) guidelines.
NATIONAL MONSOON MISSION Recently, the National Council of Applied Economic Research (NCAER) has evaluated the economic benefits of the National Monsoon Mission (NMM). The study refers to economic benefits as direct monetary gains to crop farmers, livestock rearers, and fishermen in the country. National Monson Mission was launched by the Ministry of Earth Sciences in 2012. It aims to improve the forecasting skills by setting up a state-of-the-art dynamic prediction system for monsoon rainfall different time scales. NMM builds a working partnership between the academic and research and development (R&D) organisations, both national and international. Its augmentation with the HPC facilities has helped the country in achieving a paradigm shift in weather and climate modelling for operational weather forecasts. The benefits are from accurate weather forecasting by the India Meteorological Department (IMD) and other agencies working under the Ministry of Earth Sciences.
SAGAR – II Security and Growth for All in the Region (SAGAR) was launched in 2015. It is India‘s strategic vision for the Indian Ocean Region (IOR). Mission Sagar- II, follows the first ‗Mission Sagar‘ undertaken in 2020. As part of Mission Sagar- II, Indian Naval Ship Airavat will deliver food aid to Sudan, South Sudan, Djibouti and Eritrea. Mauritius, Madagascar, Comoros and Seychelles along with La Réunion are part of Indian Ocean Commission. The assistance is in line with India‗s role as the first responder in the Indian Ocean region. The strategic importance of these island nations is highlighted by their location along key Sea Lines of Communication (SLOCs). Earlier, India had sent Indian Naval Ship (INS) Kesari, carrying food items and medical assistance teams, to countries in the southern Indian Ocean to deal with Covid-19 pandemic as part of a "Mission Sagar" initiative.
PROPEL INDIA Propel India mission is one of the 3 missions launched under National Digital Communications Policy in 2018. It aims to enable Next Generation Technologies and Services through Investments, Innovation and IPR generation. It also aims to attract investments of USD 100 Billion in the Digital Communications Sector, expand IoT ecosystem to 5 Billion connected devices, and accelerate transition to Industry 4.0 by 2022.
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The objective of the mission are as follows 1. Creation of innovation led Start-ups in Digital Communications sector. 2. Creation of Globally recognized IPRs (Intellectual Property Rights) in India. 3. Development of Standard Essential Patents (SEPs) in the field of digital communication technologies. 4. Train/ Re-skill 1 Million manpower for building New Age Skills.
GARIMA GREH Garima Greh - Shelter Home for Transgender Persons has been inaugurated, in Vadodara, Gujarat. It includes shelter facility, food, clothing, recreational facilities, skill development opportunities, legal support, technical advice for gender transition and surgeries, etc. The Nodal Ministry has identified 10 cities to set up the 13 Shelter Homes and extend the facilities to Transgender persons, in association with selected 13 Community based organizations (CBOs) in the country on pilot basis. The cities include Vadodara, New Delhi, Patna, Bhubaneswar, Jaipur, Kolkata, Manipur, Chennai, Raipur and Mumbai. The scheme will rehabilitate a minimum of 25 transgender persons in each home identified by the Ministry.
ASHA-INDIA It aims to promote domestic research and entrepreneurship by providing incubation and acceleration support to potential future technologies. Under the initiative, five ASHA-India Centers have been set up for providing incubation and acceleration support. The technologies, processes and materials identified through this initiative will provide a major fillip to young creative minds, start-ups, innovators and entrepreneurs.
SHRAMSHAKTHI PORTAL Ministry of Tribal Affairs (MoTA) is launching a National Migration Support Portal called Shram Shakti. This would effectively help in the smooth formulation of State and National level programs for migrant workers. MoTA also launched Shram Saathi, a training manual for migrant workers.
FIST SCHEME The Fund for Improvement of Science and Technology (FIST) Advisory Board (FISTAB) meeting was held recently. The FIST Scheme was launched in 2000 to strengthen the Science and Technology (S&T) infrastructure.
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It has played a pivotal role in the strengthening of both the teaching and research infrastructure in different academic and research institutions. It is considered as complimentary support for enabling Departments/ Centres/ Schools/ Colleges to pursue research activities more effectively. The duration of support for each project will be for a period not exceeding 5 years.
SAKSHAM SAKSHAM (Shramik Shakti Manch) is an initiative of Technology Information, Forecasting and Assessment Council (TIFAC). It is a dynamic job portal for mapping the skills of Shramiks (Labourers), which will help in identifying skill proficiency level and development of Skill Cards for Shramiks. It will directly connect Shramiks with MSMEs eliminating middlemen/ labour contractor.
MITRA SCHEME The Government has proposed the Mega Investment Textiles Parks (MITRA) scheme, a game changer for the Indian Textiles Industry. This will create world class infrastructure with plug and play facilities to enable create global champions in exports. It would enable the textile industry to become globally competitive, attract large investments, and boost employment generation and exports. Along with the Production Linked Incentive (PLI) scheme, MITRA will lead to increased investments and enhanced employment opportunities.
PRADHAN MANTRI URJA GANGA PROJECT A natural gas pipeline between Dobhi (Bihar) and Durgapur (West Bengal) will be laid under the Pradhan Mantri Urja Ganga Project. Launched in 2016, Pradhan Mantri Urja Ganga is National Gas Grid Project, which comes under the Ministry of Petroleum and Natural Gas. It is being implemented by Gas Authority of India Ltd. (GAIL). It is also known as Jagdishpur-Haldia and Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) project. It envisaged laying gas pipeline in five states including UP, Bihar, Jharkhand, West Bengal and Odisha. It aims to provide piped LPG gas to residents of the eastern region of the country and CNG gas for the vehicles.
NIKSHAY PORTAL It is the web enabled patient management system for TB control under the National Tuberculosis Elimination Programme (NTEP). It is developed and maintained by the Central TB Division (CTD), Ministry of Health and Family Welfare in collaboration with the National Informatics Centre (NIC), and WHO.
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It functions as the National TB Surveillance System and enables reporting of various surveillance data to the Government of India. For those private sector providers who notify TB patient on Nikshay, an incentive of Rs.500 on notification and another Rs.500 for updating the patient‗s treatment outcome are provided.
NIKSHAY POSHAN YOJANA It was launched by the Ministry of Health and Family Welfare. It is being implemented from 2018. It is a centrally sponsored scheme under National Health Mission (NHM). It provides Rs. 500 per month to all TB patients towards nutritional support for the duration of their treatment. Beneficiaries- Notified TB patients across all States and UTs in India.
INTENSIFIED MISSION INDRADHANUSH Ministry of Health and Family Welfare launched Intensified Mission Indradhanush (IMI) 3.0 and its portal. Focus of IMI 3.0- Children and pregnant women who have missed their vaccine doses during the pandemic, also people from migration areas and hard to reach areas. Mission Indradhanush was launched in 2014 to provide affordable and accessible healthcare to all the citizens. Since its first phase, Mission Indradhanush has covered 690 districts. The present 8th campaign will target achieving 90% Full Immunization Coverage (FIC) in all districts of the country. Every year the Universal Immunization Programme caters to the vaccination needs of 2.65 crore children and 2.9 crore pregnant women against 12 Vaccine Preventable Diseases.
E- CHHAWANI PORTAL It is an online multi-tenancy central platform that aims to provide citizen-centric municipal services to the citizens across 62 Cantonment Boards. The residents of cantonment areas can register their civic complaints online and resolve them. They can get their documents like trade licence, sewerage connectivity, etc. through the portal. Cantonment Board- an urban local body - was established for municipal administration for civilian population in the cantonment area. It is set up under the Cantonments Act of 2006 - a legislation enacted by the Central government. It works under the administrative control of the Defence Ministry of the Central government.
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E-DAAKHIL PORTAL E- Daakhil portal for online redressal of consumer grievances is now operational in 15 States/UTs. This portal, developed by National Informatics Centre, was launched by National Consumer Dispute Redressal Commission (NCDRC) in 2020. As provided in the Consumer Protection Act, 2019, the portal empowers the consumers to file the consumer complaints and payment of requisite fees online for the redressal of their complaints. It also facilitates the consumer commissions to scrutinize the complaints online to accept, reject or forward the complaint to the concerned commission for further processing. To facilitate the rural consumers for e- filing, it has been decided to integrate the Common Service Centres (CSC) with the e- daakhil portal.
VIGYAN JYOTI PROGRAMME Vigyan Jyoti programme has been expanded to 50 more districts across the country for the year 2021-22, adding to the existing 50 districts. It encourages girls to take interest in science and build a career in Science, Technology, Engineering and Mathematics (STEM). It was launched by the Department of Science & Technology (DST) to create a level-playing field for the meritorious girls to pursue STEM. It had been running successfully in Jawahar Navodaya Vidyalayas (JNV) since 2019. As a first step, it has been started at school level for girls of Class IX to Class XII to encourage them to pursue STEM courses in reputed institutions of the country.
SCHEME OF FUND FOR REGENERATION OF TRADITIONAL INDUSTRIES (SFURTI) Fifty artisan-based clusters were inaugurated in 18 States through the Scheme of Fund for Regeneration of Traditional Industries (SFURTI). Ministry of MSME is implementing SFURTI with a view to organize traditional industries and artisans into clusters to make them competitive and increase their income. The clusters are part of the government‗s strategy of keeping villages at the core of the economic policy. MSME Ministry, which funds these clusters aims to support at least one cluster in each district in the future. SFURTI clusters are of two types, 1. Regular C9luster (500 artisans) with Government assistance of up to Rs.2.5 crore. 2. Major Cluster (more than 500 artisans) with Government assistance up to Rs.5 crore. Artisans are organized into SPVs –Society under Societies (Registration) Act, 1860; 9Co- operative Society; Section 8 Company or a Producer Company under Section 465 (1) of Companies Act, 2013; or a Trust.
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Under the Scheme, the Ministry supports various interventions including setting up of infrastructure through Common Facility Centres (CFCs), procurement of new machineries, design intervention, etc. Besides the scheme strengthens the cluster governance systems with the active participation of the stakeholders.
SMART CODE PLATFORM It enables all ecosystem stakeholders to contribute to a repository of open-source code for various solutions and applications for urban governance. It addresses the challenges that Urban Local Bodies (ULBs) face in the development and deployment of digital applications to address urban challenges. The source code available on the platform will be free to use without any licensing or subscription fees, thus limiting costs to those involved with customising the code and developing a locally-relevant solution.
SATAT SCHEME Sustainable Alternative towards Affordable Transportation (SATAT) scheme on Compressed Bio Gas was launched in 2018. It envisages targeting production of 15 MMT of CBG from 5000 plants by 2023. The Government of India has taken various enabling steps to ensure the success of the SATAT scheme. Oil Marketing Companies have offered long term pricing on CBG to make projects bankable and have agreed to execute long term agreements on CBG. Under SATAT scheme, IOT Biogas Limited (Namakkal, Tamil Nadu) decided to divert part/full biogas production to Compressed Biogas (CBG) generation. The Compressed Biogas procured from IOT Biogas plant shall be sold through Retail Outlets (ROs) and Institutional Business (IB). This is the first time an alternative to natural gas is being sold by Oil Marketing Companies.
NAGAR VAN SCHEME Union government has announced implementation of the Nagar Van Scheme on the occasion of the World Environment Day (5th June). The Nagar Van (Urban Forests) aims to develop 200 Urban Forests across the country in the next five years. Warje Urban Forest in Pune (Maharashtra) will be considered as a role model for the Scheme. The Scheme enforces people‗s participation and collaboration between the Forest Department, Municipal bodies, NGOs, Corporates and local citizens. These urban forests will primarily be on the existing forest land in the City or any other vacant land offered by local urban local bodies. The finances for the scheme will be paid for by the CAMPA (Compensatory Afforestation Fund (CAF) Act, 2016) funds.
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PMGKY- UJJWALA Union government had announced a relief package ―Pradhan Mantri Garib Kalyan Yojana" aimed at providing a safety net to the poor and vulnerable who had been hit the hardest by the pandemic. The package also included relief for poor families who had availed of an LPG connection under PMUY. Under the PMGKY-Ujjwala, it was decided to provide free of cost refills for PMUY consumers for a period of 3 months w.e.f. 01.04.2020. This will benefit those PMUY beneficiaries who have been credited with the advance for buying the cylinder, but have not been able to purchase the refill. Thus, the beneficiaries who already have the advance transferred to their account can now take the free refill delivery till 30th September.
NAMATH BASAI SCHEME Kerala State government is carrying out a unique programme called ―Namath Basai‖ of teaching tribal children in their mother tongue. The programme is being implemented by the Samagra Shiksha Kerala (SSK). SSK is an overarching programme for the school education sector extending from pre-school to class 12. It aims at improving school effectiveness measured in terms of equal opportunities for schooling and equitable learning outcomes. It has succeeded in retaining hundreds of tribal children in their online classes using their mother tongue as language of instruction. It offers pre-recorded classes through a YouTube channel in three tribal languages in Attappady valley in Palakkad District Kerala. These languages belong to the Irula, Muduka and Kurumba tribes. It is being introduced in the tribal belts of Wayanad and Idukki as well. Classes are offered in the Oorali, Muthuvan and Paniya languages in Idukki.
NAYA SAVERA SCHEME Naya Savera Scheme is being implemented under the Ministry of Minority Affairs. It aims to empower the students belonging to minority communities and prepare them for competitive examinations. It emphasis to increase the participation minority communities in government and private jobs improves. The scheme provides financial support for free coaching to notified minority students in selected coaching institutions.
NATIONAL BAMBOO MISSION The restructured NBM was launched in 2018-19 for the holistic development of the complete value chain of the bamboo sector and is being implemented in a hub (industry) and spoke model.
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It aims to connect farmers to markets so as to enable farmer producers to get a ready market for the bamboo grown and to increase the supply of appropriate raw material to the domestic industry. The Sector Skill Councils established under the National Skill Development Agency (NSDA) will impart skills and recognition of prior learning to traditional artisans, encouraging the youth to carry forward their family traditions. NBM also supports local artisans through locally grown bamboo species, which will actualize the goal of Vocal for Local and help increase the income of farmers, reducing dependency on imports of raw material. Recently Union Minister for Agriculture and Farmer‘s Welfare has virtually inaugurated 22 bamboo clusters. The bamboo clusters has been inaugurated in 9 states viz. Gujarat, Madhya Pradesh, Maharashtra, Odisha, Assam, Nagaland, Tripura, Uttarakhand and Karnataka
ADIP SCHEME Assistance to Disabled persons for purchasing/fitting of aids/appliances (ADIP) scheme comes under the Ministry of Social Justice & Empowerment. It aims to assist the needy disabled persons in procuring durable and scientifically manufactured appliances. ADIP can promote physical, social and psychological rehabilitation of differently abled by reducing the effects of disabilities and enhance their economic potential. It is implemented through NGOs, National Institutes under the Ministry of Social Justice & Empowerment and ALIMCO (a PSU that manufactures artificial limbs). Eligibility for ADIP scheme are as follows 1. Any Indian citizen with 40% disability or more 2. Monthly income not more than Rs.20000 3. Must not have received assistance during the last 3 years and for children its last 1 year. The following agencies would be eligible to implement the Scheme on behalf of Ministry of Social Justice and Empowerment, 1. Societies, registered under the Societies Registration Act, 1860 and their branches, if any, separately. 2. Registered charitable trusts 3. District Rural Development Agencies, 4. Indian Red Cross Societies 5. Autonomous Bodies headed by District Collector/Chief Executive Officer/District Development Officer of Zilla Parishad. 6. National/Apex Institutes functioning under Ministry of Social Justice and Empowerment/Ministry of Health and Family Welfare. 7. State Handicapped Development Corporations. 8. Local Bodies- Zilla Parishad, Municipalities, District Autonomous Development Councils and Panchayats.
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9. Hospitals registered as separate entity, as recommended by state/central government 10. Nehru Yuvak Kendras.
KALA SANSKRITI VIKAS YOJANA Kala Sanskriti Vikas Yojana (KSVY) is an umbrella scheme under Ministry of Culture for the promotion of art and culture in the country. KSVY has the following sub-schemes through which financial assistance is provided to cultural organizations: 1. Scheme of Financial Assistance for Promotion of Art and Culture. 2. Scheme of Financial Assistance for Creation of Cultural Infrastructure. 3. Scheme for Safeguarding the Intangible Cultural Heritage. Recently Culture Ministry has issued guidelines for holding cultural events under various scheme components of Central Sector Scheme ‗Kala Sanskriti Vikas Yojana‘ (KSVY). The guidelines will enable artists to avail benefits under these schemes in virtual mode also and will ensure continued financial assistance to tide over the present crisis.
PM‘S SPECIAL SCHOLARSHIP SCHEME This scheme aims to build the capacities of the youths of J&K and Ladakh by Educating, Enabling and empowering them to compete in the normal course. It is implemented by All India Council for Technical Education (AICTE). Under the scheme, these youths are supported by way of scholarship in two parts namely the academic fee & maintenance allowance. The academic fee is paid to the institution where the student is provided admission after on- line counselling process conducted by the AICTE. This academic fee covers tuition fee and other components as per the ceiling fixed for various professional, medical and other UG courses. In order to meet expenditure towards hostel accommodation, mess expenses, books & stationery etc., a fixed amount of Rs.1.00 Lakh is provided to the beneficiary.
VISVAS SCHEME Ministry of Social Justice and Empowerment will introduce Vanchit Ikai Samoohaur Vargonki Aarthik Sahayta (VISVAS) scheme. It is an interest subvention scheme for the self-help groups (SHGs) or SCs and OBCs households with an annual income of up to ₹3 lakh. SC and OBC beneficiaries could avail an interest subvention of 5% p.a. on bank loans of up to 4 lakh per SHG and 2 lakh per individual. With subvention of interest, banks too would be encouraged to lend to the disadvantaged sections. The scheme would help in immediate liquidity as it would entail direct beneficiary transfer mode of crediting the accounts of beneficiaries.
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PM WANI SCHEME PM Wi-Fi Access Network Interface (PM WANI) is a framework for the proliferation of public Wi-Fi networks. According to the framework, Public Data Office (PDO) or public data centres will establish, maintain, and operate only WANI compliant Wi-Fi Access Points and deliver broadband services to subscribers. Public Data Office Aggregators (PDOA), which will curate information regarding PDO, will be set up to perform the functions relating to authorization and accounting. There will be no requirement for the proposed categories of PDOs. However, the aggregators, who will work closely with the PDOs and app providers, will have to register in registration portal SARALSANCHAR. The users can register and discover WANI compliant Wi-Fi hotspots in the nearby area through an app to access the internet service. The app providers can deliver public Wi-Fi services without a licence.
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