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Current Affairs

Economy & Related Affairs - 2017 Part -1

Inclusion of NBFC’S in the Credit guarantee scheme • PM has announced the inclusion of non-banking financial companies (NBFCs) in the credit guarantee scheme for small, medium and micro enterprises (SMEs) and also extended the scheme for loans up to Rs 2 crore. • The credit guarantee scheme for SMEs was so far open only for banks, and the inclusion of NFBCs will help new-age NBFCs reach out to more borrowers. • The credit guarantee scheme for SMEs was so far open only for banks, and the inclusion of NFBCs will help new-age NBFCs reach out to more borrowers. • ABOUT THE SCHEME: The current credit guarantee scheme includes term loans or working capital facility up to Rs 100 lakh per SME borrower, extended without any collateral security or third-party guarantee. It was so far applicable only to scheduled commercial banks and some regional rural banks

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Revamped IDF gets more donations • At the Pravasi Bharatiya Divas, it received more donations than last year. • The IDF platform existed earlier too but contributions were never significant as there were many legal hurdles and lack of transparency. • Taking these matters into account, the Centre has now made it a more dependable and transparent platform that can help build infrastructure anywhere in the country. • India Development Foundation of Overseas Indians (IDF-OI) is a not-for-profit Trust set-up by the Government of India to facilitate philanthropic contributions by Overseas Indians to social and development projects in India. • Presently, IDF-OI is promoting flagship programmes of Government of India- Swachh Bharat Mission and National Mission for Clean Ganga; and projects identified by the State Govts, for funding by Overseas Indians.

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Industry seeks foreign partners for trade pact

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• India’s top industry bodies are attempting to build a coalition with counterparts in other nations with similar interests to give a fillip to the country’s proposal for a Trade Facilitation in Services (TFS) Agreement at the World Trade Organisation (WTO)-level. • The proposed TFS pact, among other things, aims to make it easier for professionals and skilled workers to move across borders for shortterm work, as well as ensure portability of their social security contributions.

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• Background:

• India is making the case for this pact in line with the Trade Facilitation Agreement (TFA) in goods, signed by WTO in 2014. It aims at expediting movement, release and clearance of goods as well as co-operation on customs compliance issues. • Pitching for a trade facilitation agreement in services in WTO, India had floated a concept note in September 2016 saying the pact will reduce transaction costs by doing away with unnecessary regulatory and administrative burden on trade in services. • India had proposed simplification of procedures and clarity in work permits and visas for smooth movement of professionals.

• It said the TFS Agreement will address the key issues that are pertinent to facilitating trade in services, such as transparency, streamlining procedures, and eliminating bottlenecks. • Pave the way for a single window mechanism for foreign investment approvals. Ensure cross-border insurance coverage to boost medical tourism. Ensure p • Pave the way for a single window mechanism for foreign investment approvals. Ensure cross-border insurance coverage to boost medical tourism. • Ensure publication of measures impacting services trade and timely availability of relevant information as well as free flow of data and information for cross border supply of goods and services. .

Mission 41k • It is a mission launched by Indian Railways to save Rs 41,000 crore on the Indian Railways’ expenditure on energy consumption over the next 10 years. • This target will be achieved by taking a slew of measures which include moving 90% of traffic to electric traction over diesel. Presently, this is at 50 %of the total rail traffic. The Railways ministry plans to achieve this target by doubling the current pace of electrification.

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Saksham – 2017:

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• Saksham – 2017 (Sanrakshan Kshamta Mahotsav) is aimed to create awareness amongst masses towards judicious utilization and conservation of petroleum products along with use of energy efficient appliances and switching to cleaner fuels. • The programme is being organized by PCRA (Petroleum Conservation Research Association) and other Oil & Gas PSUs under the aegis of Ministry of Petroleum & Natural Gas. • Saksham – 2017 also aims to educate on various steps for fuel conservation through activities like Quiz Show, Saksham Asian Cycling Championship, Walkathons, concerts and other activities across the country.

India’s first international stock exchange:INDIA INX • Inaugurated by PM at International Financial Services Centre (IFSC) in Gujarat International Financial Tech City (GIFT) located in Gandhinagar. • The wholly-owned subsidiary of the Bombay Stock Exchange (BSE), through its global bourse, will start trading initially in equity derivatives, currency derivatives, commodity derivatives including Index and Stocks. Subsequently, depository receipts and bonds would be offered once the required infrastructure for the same is in place. • India INX is one of the world’s most advanced technology platforms with a turn-around time of 4 micro seconds. It will operate for 22 hours a day to allow international investors and Non Residents Indians to trade from anywhere across the globe. • It will act as a gateway to raise capital for the country’s infrastructure and development needs

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World Employment and Social Outlook for 2017 • It is annualy released by International Labour Organisation (ILO).

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Silver Jubilee Celebrations of NBCFDC • NBCFDC is a Govt. of India Undertaking under the aegis of Ministry of Social Justice and Empowerment. • It was incorporated under Section 25 of the Companies Act 1956 in January 1992 as a Company not for profit with an objective to promote economic and developmental activities for the benefit of Backward Classes and to assist the poorer section of these classes in skill development and self employment ventures.

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India’s rising income inequality: Richest 1% own 58% of total wealth

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• According to a study by rights group Oxfam, India’s richest 1% now hold a huge 58% of the country’s total wealth — higher than the global figure of about 50%. • Indian scenario: • Just 57 billionaires in India now have same wealth ($ 216 billion) as that of the bottom 70% population of the country. • The richest 1% has owned more wealth than the rest of the planet. • Globally, just 8 billionaires have the same amount of wealth as the poorest 50% of the world population. • Referring to the Global Wage Report 2016-17 of the International Labour Organisation (ILO), the study said India suffers from huge gender pay gap and has among the worst levels of gender wage disparity — men earning more than women in similar jobs — with the gap exceeding 30%. • In India, women form 60% of the lowest paid wage labour, but only 15% of the highest wageearners. • It means that in India women are not only poorly represented in the top bracket of wage-earners, but also experience wide gender pay gap at the bottom.

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• The study also said that more than 40% of the 400 million women who live in rural India are involved in agriculture and related activities. • However, as women are not recognised as farmers and do not own land, they have limited access to government schemes and credit, restricting their agricultural productivity. • The report asks the Indian government to end the extreme concentration of wealth to end poverty, introduce inheritance tax and increase the wealth tax as the proportion of this tax in total tax revenue is one of the lowest in India

Pravasi Kaushal Vikas Yojana (PKVY) • Launched on the sidelines of the 14th Pravasi Bharatiya Divas, it is a scheme to skill Indian youth seeking jobs abroad aimed at boosting the confidence of the Indian youth so that they don’t feel like strangers when they land in a country of their choice for vocation. • KVY will train and certify Indians, who are keen on overseas employment in select sectors, in line with international standards. • It will be implemented by the National Skill Development Corporation through its training partners and in consultation with the Ministry of External Affairs and the Skill Development Ministry.

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Bunkar Mitra

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• “Bunkar Mitra” is the Government of India’s Helpline for Handloom Weavers, launched by the government on the occasion of “Good Governance Day” • Services that are available through this helpline include- Assistance on technical issues, Access to marketing linkages and Information about various schemes and procedure to avail benefits

Cabinet approves amendment in Modified Special Incentive Package Scheme • To further incentivize investments in Electronic Sector and moving towards the goal of ‘Net Zero imports’ in electronics by 2020. • Besides expediting investments into the Electronics System Design and Manufacturing (ESDM) sector in India, the amendments in M-SIPS are expected to create employment opportunities and reduce dependence on imports • About M-SIPS: • The Cabinet had, in July, 2012 approved the M-SIPS to provide a special incentive package to promote large scale manufacturing in the Electronic System Design and Manufacturing (ESDM) sector.

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• The scheme provides subsidy for capital expenditure – 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs. • The Scheme was amended in August, 2015 for scope enhancement and simplification of procedure. • The M-SIPS has been able to create positive impact on investment in electronics sector.

CCI imposes penalty on bidders for cartelisation in tenders of Indian Railways • CCI has held that the firms had indulged in bid rigging/ collusive bidding in contravention of the provisions of the Act.

• About CCI: • Competition Commission of India is a body responsible for enforcing The Competition Act, 2002 throughout India and to prevent activities that have an adverse effect on competition in India. • It was established on 14 October 2003. It became fully functional in May 2009. • CCI consists of a Chairperson and 6 Members appointed by the Central Government.

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• The duty of the Commission is to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India. • It is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues. • The Competition Act, 2002 prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and Merger and acquisition), which causes or likely to cause an appreciable adverse effect on competition within India.

India Innovation Index to measure performance of Indian states

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• The World Economic Forum, NITI Aayog, the World Intellectual Property Organization and the Cornell University are jointly compiling it. • This index will encourage states to compete with each other and, in turn, lead to better policies for inclusive growth. • The index will be based on key pillars of innovation which include the strength of institutions, capacity of human capital and research, supporting infrastructure and the level of business sophistication, among others. • The index will measure and rank the innovation performance of all Indian states with the aim of moving India towards an innovation-driven economy. • The index will spur competition and ensure progress towards innovation at the local level in India.

Tangaliya weavers • Government of India has decided to facilitate Tangaliya weavers in purchase of looms, by providing them an assistance amounting to 90% of the price of looms , alongside the creation of an association for their welfare. • What is Tangaliya? • Tangaliya is a 700-year-old indigenous weave of Gujarat which employs an exquisite technique of weaving, using raw wool yarn.

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• It is a dotted woven textile of Surendranagar district, Saurashtra. • It is found only in Gujarat. • It is usually worn as a wrap around skirt by the women of the Bharwad shephered community. • Tangalia designs are used for preparing Shawl, Dupatta, Dress material and products of Home décor & accessories such as bedsheets, pillow covers etc.

New draft National Steel Policy of 2017

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• Highlights of the policy: • It provides for setting up greenfield steel plants along India’s coastline to tap cheap imported raw materials such as coking coal and export the output in a more cost-effective manner. It envisages to more than double India’s domestic steel production capacity to 300 million tonnes by 2030-31. It anticipates a requirement of 10 lakh crore of fresh investments to meet that goal and expects at least 11 lakh new jobs being created in the process. • The draft policy also aims at increasing per Capita Steel Consumption to 160 kg by 2030-31 and encouraging industry to be a world leader on energy and raw material efficient steel production by 2030-31, in a safe and sustainable manner.

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• Lays out two alternatives of its vision — “to create a globally competitive steel industry that promotes intersectoral growth” or • “to create a self-sufficient steel industry that is technologically advanced, globally competitive and promotes inclusive growth.” • It also focuses on impediments like high input costs, availability of raw materials, import dependency and financial stress plaguing the sector. • To cut down reliance on expensive imports of coking coal, the policy has mooted gas-based steel plants and technologies such as electric furnaces to bring down the use of coking coal in blast furnaces. • • India’s growing urban infrastructure and manufacturing sectors indicate that demand is likely to remain robust in the years ahead. • Notwithstanding the current challenges, Indian steel industry still has significant potential for growth, underscored by the fact that the per capita steel consumption in the country at 61 kg is much lower than the global average of 208 kg.

Ministry of AYUSH and Advertising Standards Council of India sign MoU

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• To curtail malpractices in the advertisement of AYUSH drugs and related services, ASCI will comprehensively monitor these advertisements across print and electronic media. • About ASCI: • The Advertising Standards Council of India (ASCI), established in 1985, is committed to the cause of Self-Regulation in Advertising, ensuring the protection of the interests of consumers. • ASCI is not a Government body, nor does it formulate rules for the public or for the relevant industries. • ASCI encourages the public to complain against advertisements which they consider to be false, misleading, offensive or unfair. • All of these complaints are evaluated by an independent Consumer Complaints Council (CCC).

Global partnership launched to prevent epidemics with new vaccines

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• To create new vaccines for emerging infectious diseases, designed to help give the world an insurance policy against epidemics was recently launched at the World Economic Forum in Davos, Switzerland. • The coalition is named- Coalition for Epidemic Preparedness Innovations. • It is a “public-private coalition that aims to derail epidemics by speeding development of vaccines”. • With an initial investment of US$460m, CEPI will seek to outsmart epidemics by developing safe and effective vaccines against known infectious disease threats that could be deployed rapidly to contain outbreaks, before they become global health emergencies.

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• CEPI will initially target the MERS-CoV, Lassa and Nipah viruses, which have known potential to cause serious epidemics. • It aims to develop two promising vaccine candidates against each of these diseases before any epidemic, so these are available without delay if and when an outbreak begins. • CEPI will also scope out potential support for vaccines against multiple strains of the Ebola and Marburg viruses, and Zika.

N.K. Singh panel submits report on FRBM Act • A committee constituted by the government last year to set a new fiscal consolidation roadmap has submitted its report. • The government had mandated the committee to explore whether it should adopt a flexible fiscal deficit target instead of a fixed number every year. • The committee says, “a new FRBM Act is critical to create better conditions for co-ordination between monetary and fiscal policy and also usher in a low interest rate regime.” • There is also a suggestion that fiscal expansion or contraction should be aligned with credit contraction or expansion respectively in the economy.

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• FRBM act: • The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) is an Act of the Parliament of India to institutionalize financial discipline, reduce India’s fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget. • Need for review of FRBM act: • Since its introduction, the Fiscal Responsibility and Budget Management Act has been facing a rocky road in terms of implementation. • Paused four times since its enactment in August 2003, including for a reset of the fiscal deficit target in 2008-09 following the global financial crisis, the FRBM Act has become a subject of animated debate.

Rubber Soil Information System (RubSIS) for Rubber Growers

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• It is an online system for recommending application of appropriate mix of fertilizers to the specific plantations of rubber growers depending upon their soil nature. • Developed by Rubber Research Institute of India (RRII) under the Rubber Board in collaboration with three agencies viz Indian Institute of Information Technology and Management, Kerala, National Bureau of Soil Survey and Land Use Planning, ICAR and National Remote Sensing Center, ISRO • It brings soil data to the fingerprints of rubber growers and recommends the optimum mix and quantities of chemical fertilizers that his holding requires. • It is a cost effective tool for sustainable &scientific management of rubber growing soils. • Apart from preventing indiscriminate use of chemical fertilizers and soil degradation, adoption of RubSIS will lead to reduction in the cost of production of rubber, increase in productivity and reduction in environmental pollution.

India rejects attempts by EU, Canada for global investment agreement • India, along with Brazil, Argentina and some other nations, has rejected an informal attempt by the European Union (EU) and Canada to work towards a global investment agreement at the World Trade Organisation (WTO)-level that would incorporate a contentious Investor-State Dispute Settlement (ISDS) mechanism. • • Why is it being opposed? • The ISDS mechanism has become contentious as it permits companies to drag governments to international arbitration without exhausting the local remedies and claim huge amounts as compensation citing losses they suffered due to reasons, including policy changes. Countries opposing this move say, “Only after all local options have been exhausted for settling disputes between a corporate and a government, do we want to permit issues to be taken up in international arbitration tribunals.” • Also, they want such provisions to be a part of bilateral agreements only and not be allowed in a multilateral agreement.

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CMs Committee on Digital Payments • Led by the Andhra Pradesh Chief Minister, Shri Chandra Babu Naidu has submitted the interim report,whose recommendations include: • Ban on cash transactions beyond a threshold and a tax on payments beyond Rs 50,000. • Subsidy of up to Rs 1,000 for smartphones purchased by those who do not pay income tax as well as small merchants in addition to lowering or doing away with the merchant discount rate or the fee paid on card and online transactions. Need to strengthen security , expand infrastructure and increase awareness for greater adoption of digital payments. • Proposed tax sops for domestic production of micro ATMs and biometric sensors, along with a subsidy of 50% to merchant points using Aadhaar Pay , which will use fingerprint or iris scan.

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• All 1.5 lakh post offices should have infrastructure to deal with Aadhaar-enabled micro ATMs and there should be inter-operability for banking correspondent via Aadhaar-enabled payment system. • The Supreme Court-appointed SIT on black money, too, had suggested a cap on cash transactions as well as a limit on how much an entity could hold in physical form. • Although the proposal to levy a cash transaction tax has found support, a section within the government is not in favour of this as it believes incentives will yield better results.

Nepal recognises employment in India as foreign • Nepal has formally recognised migration of its countrymen to India for employment purpose as “foreign employment” and bring them under the insurance coverage for the first time. • After the government’s recognition, Nepali migrant workers in India will be entitled to receive insurance coverage up to $12,812 for critical illness and life insurance.

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RBI stops investments to ‘non-cooperative countries’

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• Reserve Bank has prohibited Indian entities from making direct investments in any entity located in ‘non co-operative countries and territories’, as identified by the inter-governmental body FATF. • The prohibition on investment is “in order to align” instructions under FEMA with the objectives of the FATF. At present, there is no restriction on an Indian entity with regard to the countries where it can undertake Overseas Direct Investment.

• The principal objective of the Non-Cooperative Countries and Territories (NCCT) Initiative was to reduce the vulnerability of the financial system to money laundering by ensuring that all financial centres adopt and implement measures for the prevention, detection and punishment of money laundering according to internationally recognised standards. • About FATF: • FATF was established in 1989. Its objectives are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. • The Financial Action Task Force (FATF) currently comprises two regional organisations and 35 member jurisdictions, including India, US, UK, China and the European Commission.

India-UAE strategic oil reserves deal • Allows the Gulf OPEC country to fill half of an underground crude oil storage facility at Mangalore, Karnataka. • Strategic petroleum reserves have become indispensable to safeguard the economy and to help maintain national security in the event of an energy crisis. • These crude oil inventories (or stockpiles) can be held by the government of a particular country, as well as by private industry. • In fact, India has already filled the other half of the Mangalore storage facility with 6 million barrels of Iranian oil. The country has another storage site in Vizag, Andhra Pradesh with 7.55 million barrels of Iraqi oil and a third such facility in Karnataka’s Paduran, with a storage capacity 18.3 million barrels.

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Loss making Indian Railways to rent out hill trains to private players • The Indian Railways is planning to start leasing out its standalone passenger corridors and branch lines to private companies for operations and maintenance, marking the beginning of corporate participation in the running of the world’s fourth largest railroad network. • • Why this is necessary? • The Indian Railways, with a 1.54-million workforce and about 6,800 stations, runs about 7,000 trains everyday to ferry passengers, an activity that is generally unprofitable. • This move helps minimise operating losses for the government. • With this, the Indian Railways may also promote tourism and attract private companies, particularly those from the hospitality and infrastructure industries.

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• Largely unprofitable routes linking Kalka and Shimla , Siliguri and Darjeeling, the Nilgiri mountains with the plains, Neral and Matheran, and the Kangra Valley railways would be among the first the government will likely choose to bid out to private operators. • Winning bidders will be offered long-term concession agreements, making the leases more viable. • Companies will also have the flexibility to own and maintain the stations. The companies will also be free to set fares on these lines after the approval from the upcoming Rail Development Authority of India. • • Way ahead: • If the experiment meets specified benchmarks for success, these leases could be the future templates for enhanced private participation.

Seven new countries join BEPS agreement • Lithuania, Gabon, Hungary, Indonesia, Malta, Mauritius and the Russian Federation – have signed a tax co-operation agreement, the Multilateral Competent Authority Agreement for Country-by-Country Reporting (CbC MCAA), to enable automatic sharing of country-bycountry information. • Now, the total number of signatories has increased to 57. • The CbC MCAA, which aims to boost transparency by multinational enterprises (MNEs), allows signatories to bilaterally and automatically exchange country-by-country reports, as part of Action 13 of the base erosion and profit shifting (BEPS) Action Plan.

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India Post gets payments bank licence to start services •

India Post has received payments bank licence from the Reserve Bank of India to start rollout of banking operations commercially under the permit.

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Payment banks are non-full service banks, whose main objective is to accelerate financial inclusion. These banks have to use the word ‘Payment Bank’ in its name which will differentiate it from other banks.

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What are the scopes of activities of Payment Banks?

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Payments banks will mainly deal in remittance services and accept deposits of up to Rs 1 lakh.

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They will not lend to customers and will have to deploy their funds in government papers and bank deposits.

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They can accept demand deposits.

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Payments bank will initially be restricted to holding a maximum balance of Rs. 100,000 per individual customer.

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They can issue ATM/debit cards but not credit cards.

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They can carry out payments and remittance services through various channels.

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Distribution of non-risk sharing simple financial products like mutual fund units and insurance products, etc. is allowed.

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ECONOMY AND RELATED NEWS FEBRUARY

Trai recommends shutting down of analog transmission by 2023 • The broadcast regulator Trai has recommended introduction of digital terrestrial transmission for broadcast services in a phased manner and complete shut down of analog transmission by end of 2023. • At present, terrestrial TV broadcasting in India is under the exclusive domain of Doordarshan (Prasar Bharati), the Public Service Broadcaster and it is predominantly analog. • While a large number of TV channels are available to the consumers through various delivery platforms such as DTH, Cable TV, IPTV, HITS etc, the existing terrestrial TV platform provides only a few channels which do not offer a value proposition to the viewers.

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• Advantages of DTT: • The platform is content agnostic and can be adapted to handle new forms of content. • Frequency use is much more efficient, allowing for the transmission of 20 to 30 SD channels in the spectrum occupied by a single television channel in an analog signal. • DTT offers better quality of images and sound as compared to analog signals. • A combination of DTT transmitters at a single location can provide consumers with a range of content options, including radio and video feeds of various qualities. • The DTT transmitters have lower power requirements than traditional analog transmitters. The signals can be received easily by moving vehicles and mobile phones. • DTT transmitters can facilitate mobile data offload services, for better use of available resources. • Luxembourg was the first country to shift from analog TV in 2006. Countries in the Americas and Europe followed suite. China is expected to shift by 2018, and Brazil has plans to shut off analog TV towers by 2023.

Operation Clean Money • Launched by Income Tax Department (ITD). • Involves e-verification of large cash deposits made during 9th November to 30th December 2016. • Data analytics has been used for comparing the demonetisation data with information in ITD databases.

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Govt proposes setting up of Payments Regulatory Board under RBI • The government, keen on promoting digital payments, has proposed to form a separate regulator for the payments industry to resolve disputes, ensure customer protection and check any foul play by dominant players. • The board would be under the Reserve Bank of India (RBI). This is being done to avoid criticism that the board would dilute the banking regulator’s powers. • The board would look at interoperability of digital transactions and facilitate competition and innovation among financial technology companies in the payments space. • It will also be responsible for consumer protection, decide on penalties and create appeal mechanisms, which could ensure faster resolution of disputes over settlement of digital payments. • The proposed board will have the RBI governor as the chairperson, along with a deputy governor in charge of payments as member, besides an RBI officer nominated by the RBI Board. • It will also have three members nominated by the central government.

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India Innovation Index

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• To make India an innovation-driven economy, the index was launched by NITI Aayog, Department of Industrial Policy & Promotion (DIPP) and Confederation of Indian Industry (CII). • The index will rank states on Innovations through country’s first online innovation index portal that will capture data on innovation from all Indian states on innovation and regularly update it in real time. • It will be structured based on the best practices followed in Global Innovation Index (GII) indicators and additionally by adding India-centric parameters those truly reflect the Indian innovation ecosystem. • About GII: • The Global Innovation Index (GII), co-published by World-Intellectual Property Organization (WIPO), Cornell University and INSEAD with CII as a Knowledge Partner since inception, has been ranking world economies including India since 2007 according to their innovation capabilities and outcomes • India currently ranks 66th out of 128 countries on the Global innovation Index (GII) 2016.

MoU between MHRD and Focus States for TEQIP-III • The Focus States under the MoU are 7 Low Income States (Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh), 3 Hill States (Himachal Pradesh, Jammu & Kashmir and Uttarakhand), 8 NorthEastern States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura) and Union Territory of Andaman and Nicobar Islands. • The project will be implemented as Central Sector Scheme with the facility of Direct Funds Transfer to the accounts of beneficiary institutes. The project will be initiated in April 2017 . • The programme is implemented in assistance with World Bank in a sustainable way to improve over all standard and quality of technical institutes.

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• Background: • TEQUIP I and TEQUIP II had a positive impact on the infrastructure and educational standards in the technical institutions where they were taken up. Institutions in the central, eastern and north-eastern region and hill States are at present in need of similar and specific interventions. • About TEQIP: • The Technical Education Quality Improvement Programme (TEQIP) commenced in 2003 with World Bank assistance as a long term programme to be implemented in 3 phases. • The first phase commenced in 2003 and ended on March 31st, 2009. TEQIP-II commenced in August 2010 and is scheduled to conclude in March 2017. • The project will cover all Government / Government aided engineering institutes, affiliating technical universities (ATUs) and CFTIs from Focus States/UT. • Objectives of the programme: • Better academic standards, through accreditation, filling up faculty positions, training faculty in better teaching methods, improved research outputs in institution in Focus States/UTs • Better administration of the institutions with improved financial/academic autonomy, • Better systems for assessment of Student Learning, higher transition rates • Transparent and expeditious release of funds to institutes by way of Direct Funds Transfer (DFT) System.

Trai imposed Rs 11 cr penalty on telcos for poor service: Govt

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• Telecom regulator Trai has imposed over Rs 11 crore penalty on service providers, highest on Aircel, for poor service quality including call drops. • About Trai: • It is the independent regulator of the telecommunications business in India. • It was established in 1997 by an Act of Parliament to regulate telecom services and tariffs in India. • In January 2000, TRAI act was amended to establish the Telecom Disputes Settlement Appellate Tribunal (TDSAT) to take over the adjudicatory functions of the TRAI. • The TDSAT was set up to resolve any dispute between a licencor and a licensee, between two or more service providers, between a service provider and a group of consumers. In addition, any direction, TRAI orders or decisions can be challenged by appealing to TDSAT.

Annual Maritime Power Conference – 2017 • Annual Maritime Power Conference – 2017 will be held in Delhi. The National Maritime Foundation (NMF) has organized the conference. • Theme of this year’s conference- ‘The Blue Economy: Concept, Constituents and Development’. • This conference aims to add to the understanding of the discourse on Blue Economy and intends to discuss its constituents in an attempt to develop a common understanding of the concept. • It seeks to identify the opportunities and challenges with the aim of evolving concrete recommendations towards harnessing the Blue Economy, while ensuring efficient utilization of marine resources and sustained development of the oceans.

• About NMF: • The NMF was established in 2005 to provide a common platform for discourse between maritime-related institutions, organisations and disciplines, within the country and abroad.

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‘Advance Pricing Agreements’

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• The APA scheme was introduced in the Income-tax Act in 2012 and the “rollback” provisions were introduced in 2014. The scheme endeavors to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the prices of international transactions in advance. • The progress of the APA Scheme strengthens the government’s resolve of fostering a non-adversarial tax regime. The Indian APA program has been appreciated nationally and internationally for being able to address complex transfer pricing issues in a fair and transparent manner.

Pradhan Mantri Gramin Digital Saksharta Abhiyan’ • To make 6 crore rural households digitally literate by March, 2019. • The implementation of the Scheme would be carried out under the overall supervision of Ministry of Electronics and IT in active collaboration with States/UTs through their designated State Implementing Agencies, District eGovernance Society (DeGS), etc. • • Significance of this programme: • As per the 71st NSSO Survey on Education 2014, only 6% of rural households have a computer. This highlights that more than 15 crore rural households ( 94% of 16.85 crore households) do not have computers and a significant number of these households are likely to be digitally illiterate. This would empower the citizens by providing them access to information, knowledge and skills for operating computers / digital access devices.

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Arunachal Becomes First NE State to Implement e-Cabinet • Using this system, the cabinet members can access the cabinet notes before the meeting. The entire business of the Cabinet can be conducted using the e-Cabinet solution. • the solution lets Ministers prepare for cabinet meetings, conduct them and review minutes, entirely without paper. • The e-Cabinet solution will give remote access to the Ministers to view Cabinet notes and the same will be circulated well in advance for proper analysis and feedback. • Once Arunachal Pradesh adopts the e-Cabinet system fully, the average length of the cabinet meetings will go down from 4-5 hours to just 30-90 minutes and the government can also eliminate the need to print and deliver thousands of pages of documents.

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SEBI to form panel to facilitate crowdfunding • The Securities Exchange Board of India (SEBI) is forming an advisory committee on financial technology or fintech-related issues, which would look at safeguards that can be put in place to facilitate crowdfunding of ‘genuine’ ventures and mobilise more household savings into the financial markets. • The committee will help to address the issues and mobilise domestic savings, which will spur growth of the economy. • It will help mobilise savings through technology solutions. • The committee will examine the best way forward to facilitate crowdfunding of genuine ventures. • There is a huge potential for channelising household savings into capital markets for growth of the country. According to experts, with the economy doing well and a well-regulated market, the current numbers for household savings invested in capital markets are unacceptable.

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for receiving subsidised foodgrains from PDS shops

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• In a significant step to reform the Public Distribution System (PDS), the government has made Aadhar card mandatory for receiving subsidised foodgrains from all PDS shops under the National Food Security Act (NFSA). • About NFSA: • NFSA aims to provide subsidized food grains to approximately two thirds of India’s 1.2 billion people. It extends to the whole of India. The cost of the implementation is estimated to be $22 billion(1.25 lac crore), approximately 1.5% of GDP. • Under the provisions of this act, beneficiaries are able to purchase 5 kilograms per eligible person per month of cereals at the following prices: • Rice at 3 Rupees per kg. • Wheat at 2 Rupees per kg. • Coarse grains (millet) at 1 rupee per kg.

Mission XI Million • With the vision of making football the sport of choice in India, Mission XI Million, the biggest school sport outreach programme was recently launched by the government. • • Key facts: • A first of its kind, the programme will encourage children to play the game of football, gain healthy habits and learn important life lessons in teamwork and sportsman spirit. • The approach is to work with school principals and sports teachers and encourage and incentivize them to make children play football games on regular basis. • Designed with international sporting expertise, but keeping in mind the ground realities of our huge and varied country, it aims to instill the passion for football in 11 million children from every part of the country. • Mission XI Million also equips parents and schools with the equipment and the knowledge about how to make regular play a reality for their wards.

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Nilambur teak set to enter elite club of products with GI tag

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• Nilambur teak,(popularly called mecca teak) internationally known for its superior quality and elegant appearance, will soon be added to the list of Kerala produces with the Geographical Indication (GI) tag. • GI tag: • The GI tag is an indication which is definite to a geographical territory. It is used for agricultural, natural and manufactured goods. For a product to get GI tag, the goods need to be produced or processed or prepared in that region. It is also essential that the product has special quality or reputation. • In India, GI registration is governed by the Geographical Indications of goods (Registration and Protection) Act, 1999 which came into force in September 2003. Darjeeling tea was the first product to accorded with GI tag in India.

‘Indradhanush 2.0’ for recapitalization of PSBs

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• A comprehensive plan for recapitalisation of public sector lenders, with a view to make sure they remain solvent and fully comply with the global capital adequacy norms, Basel-III. • Under Indradhanush roadmap announced in 2015, the government had announced to infuse Rs 70,000 crore in state-run banks over four years while they will have to raise a further Rs 1.1 lakh crore from the markets to meet their capital requirement in line with global risk norms, known as Basel-III. • The mission includes the seven key reforms of appointments, board of bureau, capitalisation, de-stressing, empowerment, framework of accountability and governance reforms.

Electronics Development Fund (EDF) For Start-ups. • The EDF is a ‘fund of funds’ that works with venture capitalists to create funds, known as ‘daughter funds,’ which provide risk capital to companies developing new technologies in the area of electronics, nano-electronics and IT. • The fund is an attempt to develop the electronics system design and manufacturing sector in the country to achieve “net zero imports” by 2020. • The Centre is targeting an investment of about ₹2,200 crore by 2019 in start-ups working on new technologies in the electronic sector under the Electronics Development Fund (EDF). • The EDF would put in 10% of the capital in ‘daughter funds’ and the rest would be invested by venture capitalists. Hence, a targeted investment of ₹2,200 crore by the government will help mobilise ₹22,000 crore for the ‘daughter funds,’ which will then invest primarily in start-ups.

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Hunar Haat • It is being organized by the Minority Affairs Ministry to encourage, promote and provide national and international market to master artisans/craftsmen belonging to the Minority communities from across the country. • Theme: “Craft Aur Cuisine Ka Sangam”. • “Hunar Haat” is being organized through National Minorities Development & Finance Corporation (NMDFC) under USTTAD (Upgrading the Skills & Training in Traditional Arts/Crafts for Development) scheme of Ministry of Minority Affair

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(SARTTAC)

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• New IMF Training and Technical Assistance Center (SARTTAC) was recently inaugurated in Delhi for Economic Capacity Building in South Asia. • The opening of SARTTAC marks a major milestone in the partnership between the IMF and its member countries in the region.(Mou was signed between IMF chief and Arun jaitley) • SARTTAC, is a new kind of capacity development institution, fully integrating customized hands-on training with targeted technical advice in a range of macroeconomic and financial areas, and generating synergies between the two. • SARTTAC is financed mainly by its six member countries — Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka — with additional support from Australia, the Republic of Korea, the European Union and the United Kingdom. • SARTTAC’s strategic goal is to help its member countries strengthen their institutional and human capacity to design and implement macroeconomic and financial policies that promote growth and reduce poverty.

NIIF to raise Rs 8k cr from anchor investors in FY18 • The National Investment and Infrastructure Fund (NIIF) will tap anchor investors such as sovereign wealth funds to raise Rs 8,000 crore to fund infrastructure projects worth Rs 16,000 crore in FY18. • About NIIF: • The National Investment and Infrastructure Fund (NIIF) was proposed in Union Budget 2015. The government has set up this Rs. 40000 crore fund to provide long term capital for infrastructure projects. • The objective of NIIF is to maximise economic impact through infrastructure development in viable projects both greenfield and brownfield, including stalled projects, mainly in the core infra sector. • NIIF has been structured as a fund of funds and set up as Category II Alternate Investment Fund (AIF) under the Securities and Exchange Board of India (SEBI) Regulations.

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Indian Seed Congress – 2017 • Indian Seed Congress – 2017 is being held in Kolkata. • The theme of Seed Congress is “Seed of Joy”. • The annual forum will deliberate on the new technological advances and the barriers to technology development and introduction. It will showcase new product range, services and network for better business development. • It would provide a platform for the seed industry stakeholders to talk to technology developers, and policy makers.

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International Spice Conference • Kerala’s capital is hosting the second edition of the International Spice Conference. • Over 700 delegates representing various States, industry leaders from 40 countries, representatives of international spice associations, policymakers and end-users are attending the event. • The central theme of the conference would be ‘21st century spice industry: Disrupt or be disrupted.’ • It will discuss effective strategies and innovative technologies to improve the livelihood of farmers; address industry challenges, food safety concerns and demand supply disparity; and seek to foster sustainable growth. • The event is being hosted by the All India Spices Exporters Forum (AISEF), which represents about 80 per cent of spices exports, in association with the Cochin Chamber of Commerce and Industry.

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Cabinet approves acquisition of subsidiary banks of State Bank of India •

The Union Cabinet has approved the acquisition by the State Bank of India of its subsidiary banks namely State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore.

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It is in pursuance of the Indradhanush action plan of the Government and it is expected to strengthen the banking sector and improve its efficiency and profitability.

• Benefits of merger: •

The merger is likely to result in recurring savings, estimated at more than Rs. 1,000 crore in the first year, through a combination of enhanced operational efficiency and reduced cost of funds. Existing customers of subsidiary banks will benefit from access to SBI’s global network.

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The merger will also lead to better management of high value credit exposures through focused monitoring and control over cash flows instead of separate monitoring by six different banks.

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The acquisition under Section 35 of the State Bank of India Act, 1955 will result in the creation of a stronger merged entity. This will minimize vulnerability to any geographic concentration risks faced by subsidiary banks.

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It will also create improved operational efficiency and economies of scale.

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It will also result in improved risk management and unified treasury operations.

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• However there are certain concerns wrt these mergers,which include: •

By simply merging a weak bank with a strong bank you will merely create a bigger bank which will be weaker than what it was in its earlier avatar.

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It is small banks with strong local roots which lend to small and medium enterprises with good knowledge of the world they operate in that have a lot going for themselves.

• Through the small units and startups they fund, smaller banks are the creators of jobs and wealth. In fact, in today’s world of banking, it is the small that is beautiful because they have their feet firmly planted in the ground and are thereby robust on their own terms. • Way forward: •

Given the present dead weight of non-performing large corporate loans, there is a future for public sector banks only if they are run by professional managers who can take a view on a project and other risks at stake before making a commitment. On the other hand, what had happened was politically directed lending for projects whose costs had sometimes been gold plated (overstated) and with inadequate assessment and coverage of the risks at stake.

• Crony capitalism and public sector bank bad debts are two sides of the same coin. Once the top managers chosen by the Banks Board Bureau settle down and start changing the managerial culture, professionalism can emerge in an ambience of improved governance.

Food Legumes Research Platform (FLRP) •

The Union Cabinet has approved the establishment (FLRP) at Amlaha in Madhya Pradesh.

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The research platform will be established with satellite hubs in West Bengal (for pulses) and Rajasthan (for natural resource management) by the International Centre for Agricultural Research in Dry Areas (ICARDA)

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The platform is aimed at contributing significantly towards reducing poverty, improving food security, improving nutrition and health, and sustaining the natural resource base.

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It will enable India to harness the best of international science in meeting the emerging food security challenges. A major international R&D institution will make India an even bigger centre for agricultural research in the world and this in turn, will attract further research and development investment in the country.

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About ICARDA:

• The International Center for Agriculture Research in the Dry Areas (ICARDA), supported by the CGIAR Fund, is a non-profit agricultural research for development institute that aims to improve the livelihoods of the resource-poor across the world’s dry areas. • Established in 1977, the ICARDA’s founding mandate is to promote agricultural development in the dry areas of developing countries.

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TAMRA portal for transparent mining clearance

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• Launched by ministry of mines across 12 mineral rich states. • TAMRA is a step to speed up mining activity in India and facilitate all the stakeholders to track the status of the statutory clearances associated with blocks for getting mines to reach till operationalisation for the same. • It is expected to help minimise the gestation period for starting production. • In case of delay in obtaining any clearances, TAMRA will send out triggers to the authority concerned so that the remedial steps can be taken immediately.

Multilateral FIs allowed to invest in ‘masala bonds’ • (RBI) has permitted multilateral and regional financial institutions to invest in rupee-denominated bonds. • This decision aims to provide more choices of investors to Indian entities issuing rupee-denominated bonds abroad. • With this, agencies like the Asian Development Bank and the BRICS led New Development Bank can also invest in these bonds.

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• What are Masala bonds? • Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency. The term was used by IFC to evoke the culture and cuisine of India. Unlike dollar bonds, where the borrower takes the currency risk, masala bond makes the investors bear the risk. • The first Masala bond was issued by the World Bank backed International Finance Corporation in November 2014 when it raised 1,000 crore bond to fund infrastructure projects in India. Later in August 2015 International Financial Corporation for the first time issued green masala bonds and raised Rupees 3.15 Billion to be used for private sector investments that address climate change in India.

MoU signed for welfare of Handicraft Artisans • MoU was recently signed between the National Scheduled Castes Finance and Development Corporation NSFDC, Ministry of Social Justice and Empowerment and Development Commissioner (Handicrafts), Ministry of Textiles. • The basic objective of the MoU is to help Scheduled Caste artisans and their families by promoting production and marketing of high value quality Handicrafts products at cluster level in the field of Handicrafts, Cane & Bamboo, Artificial jewellery, Textiles (Hand printed, Hand Embroidery), Dolls & Toys, Stone Carving, Footwear, etc.

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• Handicrafts Sector is the second largest economic activity after agriculture. There are around 12 lakh scheduled castes artisans in the country. • Most of the Scheduled Caste Artisans are pursuing various Handicrafts such as Cane & Bamboo in Assam, Textiles (Hand printed) in Gujarat & Punjab, Metal wares in Uttar Pradesh, Dolls & Toys in Karnataka, Theatre Costumes & Puppets in Andhra Pradesh etc. • About NSFDC: • National Scheduled Castes Finance and Development Corporation (NSFDC) was set up in 1989 as a non profit company under Ministry of Social Justice and Empowerment, Government of India for financing, facilitating and mobilizing funds for the economic empowerment of persons belonging to the Scheduled Castes families living below double the Poverty Line.

Saathiya resource kit

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• Under its Rashtriya Kishor Swasthya Karyakram, Union health ministry has launched Saathiya resource kit. • The ‘Saathiya Resource Kits’ is a nationwide programme under which 1.6 lakh boys and girls will work as peer educators to adolescents and respond to their queries on key health issues including mental and physical changes, nutrition and addiction. • The initiative also aims to bring down the apprehensions and doubts among growing adolescents about the body related changes that they undergo during puberty.

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• About RKSK: • To address and cater to the health and development needs of the country’s adolescents, Health Ministry had launched RKSK in January 2014. • RKSK identifies six strategic priorities for adolescents — nutrition, sexual and reproductive health (SRH), non-communicable diseases (NCDs), substance misuse, injuries and violence (including genderbased violence) and mental health.

BharatQR • India has reached a new milestone in cashless transaction by launching BharatQR, the world’s first interoperable payment acceptance solution. This is the second big ticket initiative from the Centre, after BHIM, towards pushing digital transactions. • Quick Response Code (QRCode) is a two-dimensional machine-readable unique pattern that contains information on a specific task. • • How does QR codes work for online payments? • In case of retail payments, QR code eliminates the need of a Point of Sale (PoS, or card swipe) machine for carrying out electronic transaction. If the merchant and the customer are using the same payment application, such as PayTM or a bank’s app, then the customer can scan the merchant’s QR code to make the payment.

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• What is BharatQR code? • BharatQR code is an interoperable payment acceptance solution. Even if the merchant and customer are on different payment platforms, BharatQR will enable payment from one to the other. This means that merchants need to display only one QR code instead of multiple ones for different payment platforms. • It has been jointly developed by the National Payments Corporation of India (NPCI), Mastercard, and Visa, BharatQR code. • Need for BharatQR: • The main reason for this is, it is ideal for small roadside mer chants who find it tough to invest in point-of-sale terminals for card payments. For them, BharatQR is an asset-light and cheap payment solution. There is no need to invest on a terminal hardware, the merchant just needs a smartphone and a QR code printed sticker to accept digital payments.

Big boost to Energy sector

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• The Cabinet Committee on Economic Affairs has approved the enhancement of capacity from 20,000 MW to 40,000 MW of the Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects. • The enhanced capacity would ensure setting up of at least 50 solar parks each with a capacity of 500 MW and above in various parts of the country. • Smaller parks in Himalayan and other hilly States where contiguous land may be difficult to acquire in view of the difficult terrain, will also be considered under the scheme.

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• About the Scheme: • Rolled out by Ministry of New & Renewable Energy on 12-12-2014. The Scheme has been conceived on the lines of the “Charanka Solar Park” in Gujarat which is a first-of-its-kind large scale Solar Park in India with contiguous developed land and transmission connectivity. • It envisages supporting the States in setting up solar parks at various locations in the country which will provide suitable developed land with all clearances, transmission system, water access, road connectivity, communication network, etc. • This scheme will facilitate and speed up installation of grid connected solar power projects for electricity generation on a large scale. • Under this scheme, it is proposed to set up at least 25 Solar Parks and Ultra Mega Solar Power Projects targeting over 20,000 MW of solar power installed capacity within a span of 5 years starting from 2014-15.

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• Significance of UMSPP: • The total capacity when operational will generate 64 billion units of electricity per year which will lead to abatement of around 55 million tonnes of CO2 per year over its life cycle. • It would also contribute to long term energy security of the country and promote ecologically sustainable growth by reduction in carbon emissions and carbon footprint. • Will generate large direct & indirect employment opportunities in solar and allied industries like glass, metals, heavy industrial equipment etc. • The solar parks will also provide productive use of abundant uncultivable lands which in turn facilitate development of the surrounding areas.