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BRAINY IASFDI policy liberalized for key sectors
Relevancy:
GS Prelims, GS Mains paper III Economy, FDI Policy, FDI liberalization
Recently: The Union Cabinet chaired by the Prime Minister, has given its approval to a number of amendments
in the FDI Policy. These are intended to liberalise and simplify the FDI policy so as to provide ease of doing business in
the country. In turn, it will lead to larger FDI inflows contributing to growth of investment, income and
employment.
Major highlights: 100% FDI under automatic route for Single Brand Retail Trading 100% FDI under automatic route in Construction Development Foreign airlines allowed to invest up to 49% under approval route in Air India FIIs/FPIs allowed to invest in Power Exchanges through primary market Definition of ‘medical devices’ amended in the FDI Policy
Background: Foreign Direct Investment (FDI) is a major driver of economic growth and a source of non-debt
finance for the economic development of the country. Government has put in place an investor friendly policy on FDI, under which FDI up to 100%, is
permitted on the automatic route in most sectors/ activities. In the recent past, the Government has brought FDI policy reforms in a number of sectors viz.
Defence, Construction Development, Insurance, Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting, Civil Aviation, Pharmaceuticals, Trading etc.
Measures undertaken by the Government have resulted in increased FDI inflows in to the country. During the year 2014-15, total FDI inflows received were US $ 45.15 billion as against US $ 36.05
billion in 2013-14. During 2015-16, country received total FDI of US $ 55.46 billion. In the financial year 2016-17, total FDI of US $ 60.08 billion has been received, which is an all-time
high. It has been felt that the country has potential to attract far more foreign investment which can be
achieved by further liberalizing and simplifying the FDI regime. Accordingly, the Government has decided to introduce a number of amendments in the FDI Policy.
Details:Government approval no longer required for FDI in Single Brand Retail Trading (SBRT)
Extant FDI policy on SBRT allows 49% FDI under automatic route, and FDI beyond 49% and up to 100% through Government approval route. It has now been decided to permit 100% FDI under automatic route for SBRT.
It has been decided to permit single brand retail trading entity to set off its incremental sourcing of goods from India for global operations during initial 5 years, beginning 1stApril of the year of the opening of first store against the mandatory sourcing requirement of 30% of purchases from India. For this purpose, incremental sourcing will mean the increase in terms of value of such global
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BRAINY IASsourcing from India for that single brand (in INR terms) in a particular financial year over the preceding financial year, by the non-resident entities undertaking single brand retail trading entity, either directly or through their group companies. After completion of this 5 year period, the SBRT entity shall be required to meet the 30% sourcing norms directly towards its India’s operation, on an annual basis.
A non-resident entity or entities, whether owner of the brand or otherwise, is permitted to undertake ‘single brand’ product retail trading in the country for the specific brand, either directly by the brand owner or through a legally tenable agreement executed between the Indian entity undertaking single brand retail trading and the brand owner.
Civil Aviation As per the extant policy, foreign airlines are allowed to invest under Government approval route in
the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49% of their paid-up capital.
However, this provision was presently not applicable to Air India, thereby implying that foreign airlines could not invest in Air India. It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49% under approval route in Air India subject to the conditions that:
o Foreign investment(s) in Air India including that of foreign Airline(s) shall not exceed 49% either directly or indirectly
o Substantial ownership and effective control of Air India shall continue to be vested in Indian National.
Construction Development: Townships, Housing, Built-up Infrastructure and Real Estate Broking Services It has been decided to clarify that real-estate broking service does not amount to real estate
business and is therefore, eligible for 100% FDI under automatic route.Power Exchanges
Extant policy provides for 49% FDI under automatic route in Power Exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010.
However, FII/FPI purchases were restricted to secondary market only. It has now been decided to do away with this provision, thereby allowing FIIs/FPIs to invest in Power Exchanges through primary market as well.
Other Approval Requirements under FDI Policy: As per the extant FDI policy, issue of equity shares against non-cash considerations like pre-
incorporation expenses, import of machinery etc. is permitted under Government approval route. It has now been decided that issue of shares against non-cash considerations like pre-incorporation expenses, import of machinery etc. shall be permitted under automatic route in case of sectors under automatic route.
Foreign investment into an Indian company, engaged only in the activity of investing in the capital of other Indian company/ies/ LLP and in the Core Investing Companies is presently allowed upto 100% with prior Government approval. It has now been decided to align FDI policy on these sectors with FDI policy provisions on Other Financial Services. Thus, if the above activities are regulated by any financial sector regulator, then foreign investment upto 100% under automatic route shall be allowed; and, if they are not regulated by any Financial Sector Regulator or where only part is regulated or where there is doubt regarding the regulatory oversight, foreign investment up to 100% will be allowed under Government approval route, subject to conditions including minimum capitalization requirement, as may be decided by the Government.
Competent Authority for examining FDI proposals from countries of concern As per the existing procedures, FDI applications involving investments from Countries of Concern,
requiring security clearance as per the extant FEMA 20, FDI Policy and security guidelines, amended from time to time, are to be processed by the Ministry of Home Affairs (MHA) for investments falling
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BRAINY IASunder automatic route sectors/activities, while cases pertaining to government approval route sectors/activities requiring security clearance are to be processed by the respective Administrative Ministries/Departments, as the case may be.
It has now been decided that for investments in automatic route sectors, requiring approval only on the matter of investment being from country of concern, FDI applications would be processed by Department of Industrial Policy & Promotion (DIPP) for Government approval.
Cases under the government approval route, also requiring security clearance with respect to countries of concern, will continue to be processed by concerned Administrative Department/Ministry.
Pharmaceuticals: FDI policy on Pharmaceuticals sector inter-alia provides that definition of medical device as
contained in the FDI Policy would be subject to amendment in the Drugs and Cosmetics Act. As the definition as contained in the policy is complete in itself, it has been decided to drop the
reference to Drugs and Cosmetics Act from FDI policy. Further, it has also been decided to amend the definition of ‘medical devices’ as contained in the FDI
Policy.Prohibition of restrictive conditions regarding audit firms:
The extant FDI policy does not have any provisions in respect of specification of auditors that can be appointed by the Indian investee companies receiving foreign investments.
It has been decided to provide in the FDI policy that wherever the foreign investor wishes to specify a particular auditor/audit firm having international network for the Indian investee company, then audit of such investee companies should be carried out as joint audit wherein one of the auditors should not be part of the same network.
Nayachar IslandsRelevancy
G.S. Paper 1,3 About Nayachar Islands
About Nayachar Islands Nayachar is a newly emerged island with mangrove ecosystem in the middle estuary of the Hooghly
River in West Bengal. This land mass was created in the Indian Sunderbans by river silt deposits, and remained largely
submerged, rising occasionally above the water level. Till 1990 it was completely barren, with hardly any plant or animal species. In October 2017 publication by the Zoological Survey of India (ZSI) titled ‘Studies on the Succession
and Faunal Diversity and Ecosystem Dynamics in Nayachar Island Indian Sundarban Delta’ has listed 151 animal species on the island, making it a rare case in ecology.
The natural succession of species on the island has been aided by the inundation of water during tides, and the soil brought from other places by fishermen.
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BRAINY IASPratyush
Relevancy
G.S. Paper 3 About Pratyush and its key functions
About Pratyush It is India’s first fastest supercomputer which is unveiled recently in India. Pratyush is also the fourth fastest supercomputer in the world dedicated for weather and climate
research. It can deliver a peak power of 6.8 petaflops. One petaflop is a million billion floating point operations per second and is a reflection of the
computing capacity of a system. The machines will be installed at two government institutes: 4.0 petaflops HPC facility at Indian
Institute of Tropical Meteorology (IITM), Pune & 2.8 petaflops facility at the National Centre for Medium Range Weather Forecast, Noida.
A key function of the machine’s computing power would be to forecast monsoon using a dynamical model.
With the new system, it would be possible to map regions in India at a resolution of 3 km and the globe at 12 km.
Year End Review – 2017 Ministry of Finance
HIGHLIGHTS: Historic year for the Ministry of Finance with significant recognition by Moody’s Investors Service
upgrading India’s local and foreign currency issuer ratings after 13 years; India moving up 30 ranks in the World Bank’s Doing Business Report and visible signs of financial system cleansing by the Demonetization exercise.
Transformational Reforms - Overhauling of Indirect Tax System by the introduction of the Goods and Services Tax (GST) to replace multiple Central and State taxes and a New Direct Tax Code also initiated to re-write the Income Tax Act.
Recapitalization of Public Sector Banks (PSBs) and an Alternative Mechanism for their consolidation. The Financial Inclusion and Social Security Schemes – PMJDY and APY achieved significant milestones Redefining fund raising by Disinvestment, the Government launched a new Exchange Traded Fund
(ETF), BHARAT 22 as a unique blend of 22 stocks of CPSEs, PSBs & strategic holding of SUUTI. Enhancing the quality of life remained primary goal for Government when it put into implementation
the recommendations of the 7th Central Pay Commission to benefit more than 48 Lakh Central Government Employees.
Major achievements of the Ministry of Finance pertaining to the concerted efforts made by all the five constituent Departments of the Ministry viz. Department of Economic Affairs (DEA); Department of Revenue; Department of Financial Services (DFS); Department of Investment Promotion and Asset Management (DIPAM) and Department of Expenditure (DOE) are as follows:
I . Department of Economic Affairs Overall fundamentals of the economy remained strong for the Year 2017-18
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BRAINY IASMacroeconomic Indicator For Year 2017-18
GDP Growth Rate (%) 6.0 (Up to Q2)
CPI 3.6% (Q2)
WPI 3.6% (Q2)
Current Account Deficit US$ 14.3 billion (Q1)
Trade Deficit US$ 41.2 billion (Q1)
External Debt to GDP Ratio (%) 20.2
FDI Inflows US$ 1,350.93 million(As on October, 2017)
Foreign Exchange Reserves US$ 401,942.0 million(As on December 1, 2017)
(Source: RBI Bulletin) Moody's Investors Service upgraded Government of India's local and foreign currency issuer
ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive after a period of 13 years in recognition of the Government’s commitment to macro stability which led to low inflation, declining deficit and prudent external balance along with Government’s fiscal consolidation programme
India’s ranking in World Bank’s doing Business Report rose to 100 - 30 places up over its rank of 130 in the Doing Business Report 2017 - highest jump in rank of any country in the Ease of Doing Business (EoDB) Report, 2018. This made India the only country in South Asia and BRICS economies to feature among most improved economies of the EoDB Report this year.
Reversal of the deceleration trend in overall growth, the real GDP growth data for the Second Quarter of Fiscal Year 2017-18 showed growth at 6.3 percent, a substantial increase from 5.7 percent in the first quarter. Real GVA growth showed similar increase from 5.6 percent in the first quarter to 6.1 percent in the second quarter. Acceleration in growth this quarter was helped by a rapid growth in manufacturing which increased from 1.2 percent in the first quarter to 7 percent in the Second Quarter. Robust growth of 7.6 percent in electricity and other utilities, and 9.9 percent in trade, transportation and communications also powered this acceleration. Overall, the services sector recorded a growth of 7.1 percent in the second quarter. The rate of growth of gross fixed capital formation also increased from 1.6 percent in the first quarter to 4.7 percent in the second quarter. Real private consumption growth broadly held steady at 6.5 percent.
One year after the landmark move to cleanse the economy of Black money, 8 th November 2017 was a day to recount the successes of the continued operations after Demonetization with High Denomination Notes been brought down by 50% of value in circulation, 50 lakh new bank accounts opened to enable cashless transaction of wages, 26.6% increase in number of taxpayers added from FY 2015-16 to FY 2016-17 and 27.95% increase in number of e-returns filed, the value of IMPS transactions increasing almost 59% from August 2016 to August 2017, 2.24 Lakh shell companies were struck off, undisclosed income worth Rs. 29,213 crore was detected and admitted and revenues of the ULBs across the country increased.
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BRAINY IAS Constitution of the Fifteenth Finance Commission was notified on 27th November 2017 to look into
issues of distribution between Union and the States of the net proceeds of taxes which are to be, or may be divided between them; the principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and to review the current status of the finance, deficit, debt levels, cash balances and fiscal discipline efforts of the Union and the States, and to recommend a fiscal consolidation roadmap for sound fiscal management, taking into account the responsibility of the Central Government and State Governments to adhere to appropriate levels of general and consolidated government debt and deficit levels, while fostering higher inclusive growth in the country, guided by the principles of equity, efficiency and transparency.
The Logistics Sector was granted Infrastructure status in the 14th Institutional Mechanism (IM) Meeting held on 10th November, 2017 to meet the need for integrated Logistics sector development in view of the fact that the logistics cost in India is very high compared to developed countries. It will thus enable the Logistics Sector to avail infrastructure lending at easier terms with enhanced limits, access to larger amounts of funds as External Commercial Borrowings (ECB), access to longer tenor funds from insurance companies and pension funds and be eligible to borrow from India Infrastructure Financing Company Limited (IIFCL).
As a significant milestone in the operationalization of the National Investment and Infrastructure Fund (NIIF), NIIF signed its first investment agreement with a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) to mobilize 1 billion USD over the long term into the fund.
Further to this, an Investors’ Roundtable was organised by the Department of Economic Affairs in Singapore to showcase to foreign investors slew of investor friendly reforms undertaken by the Government. Finance Minister, Shri Arun Jaitley visited Singapore, USA and Bangladesh inviting foreign investment for India primarily in the Infrastructure Sector.
India also hosted the 9th UK-India Economic and Financial Dialogue, 52nd Annual Meeting of African Development Bank (AfDB), 2017 and the 2nd Annual Meeting of the New Development Bank (NDB) in New Delhi. India will also host the 3rd Annual Meeting of the Board of Governors of Asian Infrastructure Investment Bank (AIIB) at Mumbai on 25th and 26th June 2018.
Other significant initiatives of the Department of Economic Affairs also included revision of the base year of All-India Wholesale Price Index (WPI) from 2004-05 to 2011-12, release of the National Trade Facilitation Action Plan (NTFAP), institutionalization of the Monetary Policy Committee (MPC), approval for the phasing out of Foreign Investment Promotion Board (FIPB), revision of the guidelines of Sovereign Gold Bonds (SGB) Scheme and the country’s first International Financial Services Centre (IFSC) becoming operational at the Gujarat International Finance Tec-City (GIFT),Gandhi Nagar (Gujarat) in April 2017.
II . Department of RevenueGSTKey features
Goods and Services Tax (GST) was rolled out on the midnight of 30 June 2017 and came into effect from 1 July 2017.
GST is administered by both Centre and States and has subsumed several state and central indirect taxes such as State VAT, Central Excise Duty, Purchase Tax and Entry Tax.
GST is bringing transparency and accountability in business transactions along with ensuring ease of doing business and rationalization in tax rates.
GST has removed the hurdles in inter-State transactions resulting in the setting up of a common market.
GST allows taxpayers to take credit of taxes paid on inputs (input tax credit) and utilize the same for the payment of output tax.
GST evolving and responding to needs of the hour
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BRAINY IAS Subsequent to the rollout of GST, 22 States in India abolished their check posts for smooth
movement of goods across the country on 3rd July 2017. Goods and Services Network (GSTN) released a simple excel based template to facilitate taxpayers in
preparing and filing their monthly returns with maximum ease and minimal cost. The template is available on GST Common portal and can be used by taxpayers to collate all invoice related data on a regular basis. The offline tool was unveiled on 17th July 2017.
The Government of India set up a Central Monitoring Committee on 21st July 2017, headed by the Cabinet Secretary, to monitor the impact of GST.
On 16th November 2017, the Union Cabinet approved the establishment of National Anti-profiteering Authority, an apex body, to ensure that the full benefits of input tax credits and reduced GST rates on supply of goods or services flow to the consumer. The authority, led by Shri B.N. Sharma, is playing a key role in bolstering the confidence of consumers with regards to GST.
Highlights from GST Council meetings (April – December) GST council was constituted on 15 September 2016 and has conducted 24th meetings since its
formation This financial year commenced with 14th GST Council meeting held on 18th and 19th May 2017 at
Srinagar, Jammu and Kashmir. The fitment of rates of goods were discussed, and the Council approved the GST rates for goods at nil rate, 5%, 12%, 18% and 28%. Also, rates of GST Compensation Cess for certain goods was also approved. Eighteen sectoral groups were constituted to seek feedback from the trade and industry and ensure smooth launch of GST.
In its 15th meeting, the GST Council finalised the rates of tax and cess to be levied on the commodities remaining after the fitment exercise in the 14th GST Council Meeting. Also, approval of amendments to the draft GST Rules and related Forms was on the agenda.
In its 16th meeting, held on 11th June 2017, the GST Council approved service tax exemptions and GST rated for services.
In the 17th meeting held on 18 June 107, the GST Council announced relaxation in return filing and relaxation in GST rates for certain services such as accommodation in hotels.
In the 18th Meeting held on 30th June 2017, the GST Council reduced tax rate on fertilizers to 5% from 12% and cut the tax rate on exclusive tractor parts to 18% from 28%.
In the 19th Meeting held on 17th July 2017, took stock of the implementation of GST and increased the cess on cigarettes.
In the 20th meeting held on 5 August 2017, the Council recommended that Central Government move legislative amendments required for increasing the maximum ceiling of cess leviable on certain motor vehicles.
In the 21st meeting held on 9th September 2017, the Council revised the schedule for return filing and set up a Group of Ministers for monitoring the IT challenges.
Subsequent to the 21st GST Council meeting, a Group of Ministers (GoM) was constituted to monitor and resolve the IT challenges faced in the implementation of GST. Also, a Committee on Exports was constituted under the convenorship of the Revenue Secretary to look at the issues of export sector and recommend to the GST Council suitable strategy for helping the export sector in the post-GST scenario.
GST Council, in its 22nd Meeting, announced a slew of relief and incentives for exporters to enhance the export competiveness of India.
GST Council, in its 23rd meeting, slashed GST rate from 28% to 18% on 178 items to bring relief to consumers by way of reduction in price of these goods.
The Council also proposed changes in the Composition Scheme such as increasing the eligibility for composition to Rs. 1.5 crore, and uniform tax rate of 1% for manufacturers and traders. The changes will be implemented after the necessary amendment of the CGST Act and SGST Acts.
GST Council, in its 24th Meeting held through video conferencing on Saturday, 16th December, 2017 decided that Inter-State e-way Bill will be made compulsory from 1st of February, 2018; the System
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BRAINY IASwill be ready to roll-out on a trial basis latest by 16th January, 2018;Trade and transporters can start using this system on a voluntary basis from 16th January, 2018; The Uniform System of e-way Bill for Inter-State as well as Intra-State movement will be implemented across the country by 1st June, 2018.
Direct tax Central Board of Direct Taxes (CBDT) notified new Safe Harbour Regime on 8th June, 2017 to
minimise transfer pricing disputes, provide certainty to taxpayers, align safe harbour margins with industry standards, and to enlarge the scope of safe harbour transactions.
Aaykar Setu, a new taxpayer service module, was launched on 10th July 2017 to provide better taxpayer services and minimise the direct physical interface between assesses and tax assessing authorities. The module provides live chat facility, compiles various tax tools, generates dynamic updates and includes important links to several processes of the ITD.
Income Tax Department undertook a slew of measures to widen the tax base and bring about efficiency, transparency and fairness in tax administration. Some of the initiatives include – introduction of Single Page ITR-1 (SAHAJ) Form for taxpayers with income up to Rs. 50 lakhs and slashing of corporate tax to 25% for companies with turnover of up to Rs. 50 crore. With these initiatives, the numbers of taxpayers increased significantly from 4.72 crore in F.Y. 2012-13 to 6.26 crore during F.Y. 2016-17 as of 18th September 2017.
As part of the Government’s efforts to widen the tax base, Direct Tax collections for F.Y. 2017-2018 reached Rs. 4.39 lakh crore up to October 2017, accounting for 15.2% growth from the corresponding period last year.
Government constituted a Task Force on 22nd November 2017 to review the Income-tax Act, 1961 and draft a new Direct Tax Law in consonance with economic needs of the country.
Demonetisation and Operation Clean Money Income Tax Department (ITD) has been undertaking extensive enforcement action including search
and seizure, and surveys largely based on the information received during the demonetisation period.
ITD launched Operation Clean Money (OCM) on 31st January 2017 to leverage technology for e-verification of cash deposits made during the demonetization period i.e. 9th November to 30th December 2016. The operation involves the use of advanced data analytics, allowing for optimization of government resources and causing minimum inconvenience to the taxpayers.
Extensive enforcement action by the Income Tax Department (ITD) during 9th November 2016 to 28thFebruary 2017 has led to seizures worth over Rs 818 crore and detection of undisclosed income of over Rs 9,334 crore. The impact of Government action translated to an increase of 21.7 % in the returns of Income received in FY 2016-17, 16% growth in Gross Collection (the highest in the last five years), 14% Growth in Net Collection (the highest in last three years) and above 18%, 25% and 22% growth in Personal Income Tax, Regular Assessment Tax and Self-assessment Tax respectively.
The Income tax Department conducted more than 1100 searches and surveys and issued over 5100 verification notices in the cases of suspicious high value cash deposits or related activities during 9 Nov 2016-10 Jan 2017. With these actions, the undisclosed income of over Rs. 5,400 crore was detected.
As part of the second phase of Operation Clean Money, ITD leveraged the information received under the Statement of Financial Transactions to identify 5.56 lakh new persons whose tax profiles were inconsistent with the cash deposits done by them during demonetization as of July 2017.
Subsequent to demonetisation, 91 lakh taxpayers were added to the tax net as of May 2017 as a result of action taken by the Income Tax Department.
A Multi-Agency Group (MAG) was constituted during November 2017 to facilitate co-ordinated and speedy investigation of cases pertaining to Paradise Papers and Panama Papers.
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BRAINY IASCombating corruption and pilferage
A task force was constituted in July 2017 to effectively tackle the malpractices by shell companies. The Government of India undertook various measures to curb benami transactions across the
country. Some of the measures include setting up of 24 Benami Prohibition Units (BPUs) for taking effective action under the Benami Act and empowering relevant authorities to attach and eventually confiscate benami properties.
Department of Financial Services advised banks in September 2017 to put restrictions on bank accounts of over two lakh struck-off companies and use enhanced diligence while dealing with companies.
The Income Tax Department intensified actions under the new Benami Transactions (Prohibition) Amendment Act, 2016 (the Act) w.e.f. 1st November, 2016 and framed the Prohibition of Benami Property Transactions Rules, 2016.
III Department of Financial Services (DFS) In order to strengthen the banks, which are the key pillars of the economy, the Government decided
to take a massive step to recapitalise PSBs in a front-loaded manner, with a view to support credit growth and job creation entailing mobilization of capital of about Rs. 2,11,000 crore over the next two years, through budgetary provisions of Rs. 18,139 crore, Re-capitalisation Bonds to the tune of Rs. 1,35,000 crore, and the balance through raising of capital by banks from the market while diluting government equity.
On 23rd August 2017, Cabinet gave in-principle approval for Public Sector Banks to amalgamate through an Alternative Mechanism (AM). The decision would facilitate consolidation among the Nationalised Banks to create strong and competitive banks. Subsequently on 1st Nov 2017, the composition of the Alternative Mechanism committee for consolidation of the Public Sector Banks (PSBs) was finalized. Under the Chairmanship of the Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley and two other Members - Shri Piyush Goyal, Minister of Railways and Coal and Smt. Nirmala Sitharaman, Minister of Defence, proposals from banks for in-principle approval to formulate schemes of amalgamation will be received and a Report on the proposals cleared by it will be sent to the Cabinet every three months.
The Government also undertook some major legislative changes to facilitate recovery and resolution of stressed assets. The Insolvency and Bankruptcy Code, 2016 was enacted as a unified framework for resolving insolvency and bankruptcy matters to put in place safeguards to prevent unscrupulous, undesirable persons from misusing or vitiating the provisions of the Code.
The Due Diligence Framework of the code was strengthened - Prior to approval of a Resolution Plan, the Resolution Applicants, including promoters, will be put to a stringent test with respect to their credit worthiness and credibility
It registered National E-Governance Services Limited (NeSL) as an Information Utility (IU) under the IBBI (Information Utilities) Regulations, 2017
It also notified the IBBI (Grievance and Complaint Handling Procedure) Regulations, 2017 in the Gazette of India on 7th December, 2017.
Loans extended under the Pradhan Mantri Mudra Yojana (PMMY) during 2017-18 crossed the target of Rs. 121450.31 crore till 8th December 2017. Under the scheme a loan of upto Rs. 50000 is given under sub-scheme ‘Shishu’ between Rs. 50,000 to 5.0 Lakhs under sub-scheme ‘Kishore’ and between 5.0 Lakhs to 10.0 Lakhs under sub-scheme ‘Tarun’. About 6.28 crore loans were extended to women entrepreneurs till 21st July 2017. 76% of the borrowers under PMMY were women entrepreneurs.
The number of total bank accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY)became 30.69 crore as on 29th November 2017. The number of zero balance accounts declined from 76.81% in September 2014 to less than 20% in Sept 2017. Also, more than 23.08 crore RuPay cards were issued to the account holders along with an overdraft facility of Rs. 5000/- till 29thNovember 2017.
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BRAINY IASAlso, all RuPay ATM-cum-Debit Cardholders were made eligible for accidental death and permanent disability insurance cover.
Over 69 lacs subscribers joined Atal Pension Yojana, flagship program of the Government of India under financial inclusion and financial security, with contribution of Rs. 2690 crore till October, 2017.
Government launched the Pradhan Mantri Vaya Vandana Yojana (PMVVY) to provide social security during old age and to protect elderly persons aged 60 and above against a future fall in their interest income due to uncertain market conditions.
Till August 2017, about 52.4 crore unique Aadhaar numbers are linked to 73.62 crore accounts in India. As a result, the poor are able to make payments electronically. Every month now, about 7 crore successful payments are made by the poor using their Aadhaar identification.
Maximum age of joining National Pension Scheme (NPS) was increased from the existing 60 years to 65 years under NPS- Private Sector
IV Department of Disinvestment and Public Asset Management (DIPAM) The Central Government raised a total of Rs. 52,389.56 crore through disinvestment till
15thDecember, 2017 in the current Financial Year 2017-18. With the aim of using Exchange Traded Funds as a vehicle for divestment of shares to meet the
target for CPSE’s disinvestment in 2017-18 set at Rs 72,500 crore, the Government launched a new Exchange Traded Fund (ETF) by the name BHARAT 22 on 14th November 2017, managed by ICICI Prudential, targeting an initial amount of about Rs.8,000 crore. Bharat-22 is a unique blend of 22 stocks of CPSE's, PSB's & strategic holding of SUUTI. Compared to energy heavy CPSE ETF, Bharat 22 is a well-diversified portfolio with 6 sectors (Basic Materials, Energy, Finance, FMCG, Industrials and Utilities). The strength of this ETF lies in the specially created Index S&P BSE BHARAT-22 INDEX and has been demonstrated in its performance from the time of its announcement in August 2017 wherein it has out-performed the NIFTY-50 and Sensex and raised about Rs.14,500 crore.
Some of the other major disinvestments successfully done by the Department in the FY 2017-18 are:
NAME OF CPSES % OF GOIS SHARES DISINVESTED
RECEIPTS (In Cr)
GOIS SHAREHOLDING POST DISINVESTMENT
OIL 5.6 1135.26 66.13%
NALCO 9.2125 1191.73 65.38%
HUDCO 10.193 1207.35 89.81%
SUUTI Strategic Disinvestment 41.53.65 -
NIA 11.65 7653.32 85.44%
NTPC 6.63 9117.92 63.11%
GIC 12.5 9704.16 85.78%
(Source – DIPAM site) On 16th August 2017, the Cabinet Committee on Economic Affairs, chaired by the Prime
Minister Shri Narendra Modi, had approved the proposal of Department of Investment and public Asset Management (DIPAM) for the strategic disinvestment (i) For setting-up an Alternative Mechanism (AM) consisting of the Finance Minister, Minister for Road Transport & Highways and Minister of Administrative Department, to decide on the matters relating to
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BRAINY IASterms and conditions of the sale from the stage of inviting of Express of Interests (Eols) till inviting of financial bid; and (ii) For empowering the Core Group of Secretaries (CGD) to take policy decisions with regard to procedural issues and to consider deviations as necessary from time to time for effective implementation of decisions of CCEA. The approval will help in speedy completion of strategic disinvestment transactions.
V. Department of Expenditure (DOE) General Financial Rules (GFRs), 2017 were released on 7th March, 2017 to enable an improved,
efficient and effective framework of fiscal management while providing the necessary flexibility to facilitate timely delivery of services.
7th CPC - On 28th June 2017, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the recommendations of the 7th CPC on allowances with some modifications. The revised rates of the allowances came into effect from 1st July, 2017 benefitting more than 48 lakh Central Government Employees.
While approving the recommendations of the 7th CPC, the Cabinet had decided to set-up the Committee on Allowances (CoA) in view of substantial changes in the existing provisions and a number of representations received. The 7th CPC adopted a three-pronged approach in examining a total of 197 allowances which involved an assessment of the need for continuation of each allowance, appropriateness of the set of people covered by the allowance and rationalisation which involved clubbing of allowances with similar objectives. Based on the examination on these lines, the 7th CPC recommended that 53 allowances be abolished and 37 be subsumed in an existing or a newly proposed allowance. For most of the allowances that were retained, the 7th CPC recommended a raise commensurate with inflation as reflected in the rates of Dearness Allowance (DA). A new paradigm was evolved to administer the allowances linked to risk and hardship. The myriad allowances, their categories and sub–categories pertaining to civilians employees, CAPF and defence personnel were fitted into a table called the Risk and Hardship Matrix (R&H Matrix).
Promoting Digital Platforms Monitoring of funds through PFMS – On 27th October 2017, the Union Finance Minister, Shri Arun
Jaitley made the use of Public Finance Management System (PFMS) mandatory for all the Central Sector Schemes of the Government of India to help in tracking and monitoring the flow of funds to the implementing agencies. These Central Sector Schemes (CSS) with a Budgetary Outlay of Rs.6,66,644 crore covered over 31% of the total Central Government expenditure during the Financial Year 2017-18. PFMS, with the capability of providing real time information on resource availability, flows and actual utilization has tremendous potential to improve programme/financial management, reduce the float in the financial systems by enabling ‘just in time’ releases and also the Government borrowings with direct impact on interest costs to the Government.
Mobile friendly format website: The Finance Minister Shri Jaitley also launched the new website of the Department of Expenditure. As part of the Digital India Programme, the up-graded common landing webpage of the new website of the Department of Expenditure is a major step towards standardization and improvement in presentation and content delivery using the Content Management Framework (CMF).
The Controller General of Accounts (CGA), launched the upgraded version of Central Pension Accounting Office (CPAO) website (www.cpao.nic.in) on 30th Nov, 2017 primarily to cater to the needs of central civil pensioners and other stakeholders in the Ministries/Departments and Banks. It provides a single window for both accessing pension related information and facilitating grievance Redressal of pensioners.
Public Expenditure Management in the North Eastern States
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BRAINY IAS The Department of Expenditure, also took several initiatives in the area of Public Expenditure
Management in the North Eastern States with special focus on capacity building of the State Government officials and integration of the State Treasuries with the Union Public Financial Management System (PFMS) in order to improve the efficiency and transparency of public expenditure. The Government also released advance grant-in-aid of Rs.51.30 crore to Arunachal Pradesh for rescue and relief operations on account of flash floods
Public Expenditure on Infrastructure The Government has consistently increased Public Expenditure on Infrastructure in order to boost
employment and provide renewed impetus to economic growth. The Government of India received Rs.7,67,327 crore (47.9% of corresponding BE 17-18 of Total Receipts) upto October 2017 comprising Rs. 6,33,617 crore Tax Revenues (Net to Centre), Rs. 95,151 crore of Non-Tax Revenues and Rs.38,559 crore of Non-Debt Capital Receipts. Non-Debt Capital Receipts consists of Recovery of Loans (Rs. 8,394 crore) and Disinvestment of PSUs (Rs. 30,165 crore). Rs.3,37280 crore has been transferred to the State Governments as Devolution of Share of Taxes by Government of India in this period.
There has been a Special thrust on key development sectors including Rural Roads, Housing, Railways, Power, Highways and Digital Infrastructure. The CAPEX target of the Government of India for 2017-18 was Rs. 3.09 lakhs crore, which is 31.28% higher than last year, out of which Rs.1.46 lakhs crore was spent on capital works till September 2017. The Government launched a new Umbrella program for Road Building of 83,677 km of roads involving CAPEX of Rs.6.92 lakhs crore over next 5 years with an outlay of Rs.5,35,000 crore that would generate 14.2 crore man-days of jobs.
Year End Review-2017 Ministry of Earth Science
About the MoES: The new Ministry of Earth Sciences (MoES) came into being vide Presidential Notification dated the
12th July, 2006 bringing under its administrative control India Meteorological Department (IMD), Indian Institute of Tropical Meteorology (IITM) and National Centre for Medium Range Weather Forecasting (NCMRWF).
The Government also approved the setting up of Earth Commission on the pattern of Space Commission and Atomic Energy Commission.
Recent initiatives:I. Commissioning of Air Quality & Weather Monitoring Stations at Ahmedabad: An integrated early
warning System of Air Quality and Weather Forecasting and Research (SAFAR) was dedicated to the nation by Dr. HarshVardhan,Union Minister for Science& Technology and Earth Sciences on 12th May 2017 in Ahmedabad. With the advent of SAFAR, a new health action plan "Ahmedabad- AIR (Air Information and Response)" was launched with a lead from Ahmedabad Municipal Corporation and other research organizations which will connect SAFAR products with health related mitigation options.
II. Open sea cage culture:A Foundation Stone for the Marine Finfish Hatchery and Test Facility for Ballast Water Treatment Technologies was laid on April 8, 2017 by Shri Y.S. Chowdary, Minister for
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BRAINY IASState for Science & Technology and Earth Sciences, at Nellore sea front facility. These facilities will be further developed by National Institute of Ocean Technology, an autonomous institute under the Ministry .
III. Puducherry Beach Restoration: The coastline of Puducherry and the neighboring Tamil Nadu coastline have suffered from severe coastal erosion due to natural and anthropogenic activities. Short term measures like Seawalls and Groin field were attempted by Puducherry government but the erosion problem shifted further north, with increased intensity. Detailed shoreline management plan was prepared using satellite data and process based measurements covering two predominant seasons (SW and NE Monsoons). As part of this plan Puducherry government has implemented the beach nourishment scheme along 500m coast line using 50,000 m3 of dredged sand from harbor mouth. The nourishment resulted in gaining of beach to an extent of 60m near Puducherry Light House and Puducherry New Pier.
IV. Monsoon Mission Program: The Ministry of Earth Sciences (MoES), launched the “National Monsoon Mission” (NMM), a mission mode project with a vision to develop a state of the art dynamical prediction system for monsoon rainfall on all different time scales in 2012. It has successfully completed its first phase by setting up high resolution coupled dynamical prediction system with reasonable prediction skill for seasonal and extended range time scales and very high resolution atmospheric model for weather prediction. For the first time, India Meteorological Department used the Monsoon Mission dynamical model to prepare operational seasonal forecast of 2017 monsoon rainfall over India. The Ministry has now launched the Monsoon Mission Phase II program, for next 3 years (2017-2020) with emphasis on predicting extremes and development of applications based on monsoon forecasts.
V. Scientific Deep Drilling in the Koyna Intra-Plate Seismic Zone, Maharashtra: Scientific drilling of the Koyna pilot borehole KFD1 to a depth of 3 km and the acquisition of downhole geophysical data were completed. Passing through ~1.25 km - thick succession of Deccan basalt flows and ~1.75 km into the underlying granite-gneiss basement rocks, the borehole is the deepest drilled through crystalline rock formations in the country. Cuttings were collected at 5 m intervals in basalt and 3 m intervals in basement rock. Additionally, limited cores were collected from discrete depths in the 1500-3000 m section. To keep pace with the drilling, three field laboratories were functional on site: (i) geological lab., (ii) mud-logging lab., (iii) online gas and fluid sampling lab.
VI. Inauguration of the ST Radar at CUSAT and Doppler Weather Radar at Kochi: Dr. Harsh Vardhan, dedicated to the nation, the Stratosphere-Troposphere (ST) Radar Facility at the Advanced Centre for Atmospheric Radar Research at the Cochin University of Science and Technology (CUSAT) on 11thJuly 2017. it is the first stratosphere troposphere wind profile radar operating on 205 MHz installed in the world. The facility will aid monitor atmospheric wind conditions across altitudes up to 20 km and beyond. The research has applications in meteorology, cloud physics, thunderstorms, convections, atmospheric electricity and climate change. A state-of-the-art, indigenous doppler weather radar, capable of predicting with increased accuracy weather events such as cyclone occurring in 500-km radius from Kochi, was inaugurated by Dr. Harsh Vardhan, in Kochi on 12th July 2017. The S-Band Doppler weather radar in Kochi was made with support from ISRO and Bharat Electronics.
VII. De-salination of water: The Ministry through its constituent unit, the National Institute of Ocean Technology (NIOT) has developed indigenized technologies for producing clean drinking water from the ocean. Currently there are three desalination plants operational at Kavaratti, Agatti and Minicoy islands, which are individually producing 1 lakh liters of drinking water per day. The plants are operated by the local islanders. NIOT is now installing another six more plants in Lakshadweep islands, each with a capacity to produce 1.5 lakh liters of water every day, with the help of Lakshadweep administration. Two plants will be commissioned by December 2018.
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Year End Review 2017: Ministry of Road Transport & Highways
HIGHLIGHTS: 1. MAJOR INITIATIVES2. CONSTRUCTION OF NATIONAL HIGHWAYS3. ROAD SAFETY4. GREEN INITIATIVES5. E- INITIATIVES6. INTERNATIONAL PARTNERSHIPS7. OTHERS
1. MAJOR INITIATIVES: 2017 witnessed several highlights. This was the year when engineering marvels like the Dhola Sadiya
bridge in Assam and Chenani Nashri tunnel in Jammu and Kashmir were opened up to connect far-off areas and pave the way for their socio-economic development.
This was also the year that saw the launch of Bharatmala Pariyojana, India’s largest ever highways development programme that promises to optimize the efficiency of road traffic movement across the country by bridging critical infrastructure gaps.
In the area of road safety too, we witnessed a slight decrease in the number of road accidents. Year 2017 can also be seen as a major turning point for transport planning in the country, with the
idea of multi-modal transport development gaining ground. The Union Budget 2017-18 set the ground for this with a comprehensive budget for the transport
sector as a whole. MoRTH took the idea further by organising the India Integrated Transport and Logistics Summit, organized in May 2017 and by actively promoting multi-modal transport planning with greater synergy in investments in railways, roads, waterways and civil aviation.
2. CONSTRUCTION OF NATIONAL HIGHWAYS Award / Construction Statistics: Award and construction activity is a direct consequence of demand,
land availability and management of contracts. March 2017 witnessed the highest awards at 15948 kilometres and construction at 8231 kilometres. The table below details the trends of NH construction over the years:
New Programmes, Projects and Structures (i) Bharatmala Pariyojana: Phase-I: This is a new umbrella program for the highways sector that
aims to optimize the efficiency of road traffic movement across the country by bridging critical infrastructure gaps. Special attention has been paid to fulfilling the connectivity needs of areas of economic activity, places of religious and tourist interest, border areas, backward and tribal areas, coastal areas and trade routes with neighbouring countries under the programme. Multi-modal integration is one of the key focuses of this programme. A total of around 53,000 kms of NHs have been identified to improve National Corridor efficiency, of which 24,800 kms are to be taken up in Phase-I, which will be implemented over a period of five years i.e. 2017-18 to 2021-22 in a phased manner. This includes 5,000 kms of the National Corridors, 9000 kms of Economic Corridors, 6000 km of Feeder Corridors and lnter-Corridors, 2000 kms of Border Roads, 2,000 kms of Coastal Roads and Port Connectivity Roads and 800 kms of Green-field Expressways. Total likely fund provision for Bharatmala Phase-I is Rs. 5,35,000 cr. Bharatmala will be a major driver
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BRAINY IASfor economic growth in the country. lt is estimated that more than 35 crore man-days of employment shall be generated under Phase-l of the programme.
(ii) Chenani- Nashri Tunnel: An ideal example of the government’s ‘Make in India’ and ‘Skill India’ initiative, the 9 km long, twin-tube, all-weather tunnel between Udhampur and Ramban in Jammu & Kashmir is not only India’s longest highway tunnel but also Asia’s longest bi-directional highway tunnel. Built at an elevation of 1200 metres on one of the most difficult Himalayan terrains, the tunnel cuts the travel time between Jammu and Srinagar by two hours, bypassing about 41 kms of road length. It will also ensure an all-weather passage on a route that often sees heavy traffic jams and disruptions due to landslides, snow, sharp curves, breakdown of vehicles and accidents. The tunnel has been constructed at a cost of about Rs 3720 crores and is a part of the 286-km-long project for four-laning of the Jammu-Srinagar National Highway.
(iii) Dhola Sadiya Bridge: The Hon’ble Prime Minister, Shri Narendra Modi, inaugurated India's longest bridge- the 9.15 km long Dhola-Sadiya Bridge over River Brahmaputra in Assam on 26th May 2017. The bridge has ensured 24x7 connectivity between upper Assam and Eastern part of Arunachal Pradesh, marking a major transformation from the ferry-based, day-only connectivity that collapsed during floods. It has considerably reduced the distance and travel time between the two states. The distance between Rupai on NH- 37 in Assam to Meka/Roing on NH-52 in Arunachal Pradesh has been cut down by 165 KM. The travel time between the two places has come down from six hours to just one hour – a total five hour reduction.
(iv) Extra-dosed Bridge across River Narmada at Bharuch: A new four lane, Extra-dosed Bridge across river Narmada at Bharuch, inaugurated by the Prime Minister on 9th of March 2017, has brought major relief for people travelling on the Vadodara- Surat section of NH-8. The 1.4 km ‘Extradosed’ cable stayed bridge is the longest in India and the second such bridge in the country after Nivedita Setu over Hooghly.
(v) Bridge over River Chambal at Kota: A 6-lane Cable Stayed Bridge across river Chambal at Kota was inaugurated by the Prime Minister Shri Narendra Modi on 29th August 2017. Built at a cost of Rs. 278 Crores, this bridge marks the completion of the East-West corridor.
Status/ Progress of important programmes/ projects under implementation(i) Chardham Mahamarg Vikas Pariyojna: The projects envisages development of easy access to
the four prominent Dhams, namely, Gangotri, Yamunotri, Kedranath and Badrinath, situated in the state of Uttrakhand. These four Dhams are prominent pilgrimage centres. The project entails development of 889 km of roads with configuration of two-lane with paved shoulders at an estimated cost of about Rs. 12,000 crore. So far, 24 works have been sanctioned traversing a length of 395 kilometres. 22 works covering a length of 340 kilometre have been awarded. The projects are being taken up on EPC mode amd the program is targeted for completion by March, 2020
(ii) Eastern Peripheral Expressway– Western Peripheral Expressway: The project of Peripheral Expressways around Delhi, comprising Eastern Peripheral Expressway (EPE) and Western Peripheral Expressway (WPE) emanating from NH-1 (near Kundli) and terminating at NH-2 (near Palwal), bypassing Delhi aims to decongest Delhi and reduce pollution levels in the NCR. While the EPE is being developed by the NHAI, the WPE is being developed by the State of Haryana. Each of these Expressways is 135 km long, leading to an outer-outer ring road of 270 kms for Delhi. These Peripheral Expressways are to be access controlled six-lane roads. The work, being executed in six packages, is due for completion before March 2018.
(iii) Delhi-Meerut Expressway: The Delhi-Meerut Expressway aims to provide a fast link between the two cities. The alignment of DME starts from Nizammudin Bridge from Delhi and follows existing NH 24 upto Dasna. While one leg of DME will continue from Dasna on NH 24 to Hapur, a Greenfield alignment has been planned from Dasna to Meerut. The 8.7 km, 14-lane highway is
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BRAINY IASbeing completed in a record time of about 15 months as against the originbal scheduled completion period of 30 months. This first stretch from Nizamudin Bridge to UP Border is provisioned with with 14 lanes, and has several features that would help reduce pollution. These include a 2.5 metre wide cycle track on either side of the highway, a vertical garden on the Yamuna Bridge, solar lighting system and watering of plants through drip irrigation only.
(iv) Vadodara-Mumbai Expressway: The 473 km expressway will link Ahmedabad-Vadodara Expressway to Mumbai-Pune Expressway thus providing Expressway connectivity from Ahmedabad to Pune for a length of about 650 Km. The project will be taken up in three phases. Land acquisition, environment clearance etc are at advanced stage of approval for Phase I and II. Bids have also been invited for the First package of of phase -1.
(v) Bangalore-Chennai Expressway (262 km): Bangalore-Chennai Expressway is a green-field alignment and will be operated with a closed toll system. There are two existing roads connecting Bangalore-Chennai, one is via Hoskote (Bangalore)-AP then to Chennai & second is via Electronic City (Bangalore) Hosur (Tamil Nadu) and then to Chennai. The alignment of proposed expressway is passing in between these two stretches. The processes of land acquisition, environment and other pre-cnstruction activities are under progress.
(vi) Byet Dwarka – Okha Bridge: The Ministry has taken up constuction of a signature 4-lane Bridge to connect the mainland at Okha to Byet-Dwarka Island off the Gujarat Coast with this signature Bridge spanning a length of 2.32 kms. The Project has been awarded on 01.01.2018 at a cost of Rs. 689.47 crores. This will be the longest span cable stayed bridge in India with the main span of 500 mtrs. The project is scheduled to be completed in 30 months time.
New Expressways planned under under Bharatmala Pariyojana Phase-I:(i) Delhi-Jaipur Expressway(ii) Delhi-Amritsar-Katra Expressway(iii) Vadodra-Mumbia Expressway(iv) Hyderabad- Vijayawada- Amravathi (HVA) Expressway(v) Nagpur-Hyderabad-Bangalore (NBH) Expressway (vi) Kanpur Lucknow (KL) Expressway (vii) Ring road/ Expressway at Amravathi
Setu Bharatam In order to ensure safe and smooth flow of traffic, Ministry has envisaged a plan for replacement of
Level Crossings on National Highways by ROBs/ RUBs under a scheme known as Setu Bharatam. Under this programme, construction of 208 RoBs/ RuBs on Level Crossings (which are not falling under any other programme like NHDP etc.) at an estimated cost of Rs. 20,800 crore is envisaged.
Funding Models and other policies to facilitate construction of National Highways:(i) Measures to revive Languishing stalled projects: The Ministry has focused on completion of on-going projects along with sanction and award of new projects. A total of 73 projects (8,187 km) worth an estimated investment of Rs.1,00,000 crore were identified as Languishing Projects. The reasons for delay were identified and policy interventions undertaken to address the same. This, inter alia, includes (a) One Time Fund Infusion Scheme (OTFIS) whereby financial assistance is provided by NHAI to the contractor/ concessionaire in the form of a working capital loan, (b) Rationalized Compensation whereby a one-time compensation, equivalent to annuities that were missed on account of delay in completion of the project , is provided to the concessionaire in the case of BOT (Annuity) projects; (c) Extension of concession period, (d) Substitution of concessionaire & Termination. As on date, the entire portfolio of languishing projects that have been taken up for revival/ completion is as per table below:-
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BRAINY IASDescription of Projects Number of Projects Length in Kms
Projects where issues have been resolved through regular monitoring
15 2054.94
Projects terminated and re-packaged and re-bid.
48 5090.68
Projects revived after policy interventions 10 1041.00
Total 73 8186.62 or 8187
(ii) Toll- Operate-Transfer (TOT) The Ministry is monetizing its road assets constructed with public funds through Toll-Operate-
Transfer (ToT) scheme. The scheme envisages bidding of bundled national highways for a concession period of 30 years. The bids for the first bundle of 9 NHs have been invited and are scheduled to be received on 09.01.2018.
(iii) Masala Bonds Targeting mobilization of funds, NHAI launched an issue of Masala Bonds at the London Stock
Exchange in May 2017. The Masala Bond saw an overwhelming response from a wide spectrum of investors. The initial benchmark issue of Rs 1500 crore was upsized to Rs 3000 crore. Asia contributed 60 percent and Europe 40 percent of subscription. 61 percent of the amount is from fund managers or insurance funds, 18 percent from banks and 14 percent from private banks. NHAI’s Masala Bonds have been rated the best for the year 2017.
(iv) Planning for Multi Modal Transport Systems An India Integrated Transport and Logistics Summit was organized in New Delhi from 3rd to
5th May 2017. It was attended by around 3000 delegates from India and abroad which included central and state government organizations, international organizations like World Bank and ADB, global transport and supply chain experts and representatives of private companies. Thirty-four MoUs amounting to about Rs 2 lakh crores were signed at the end of the Summit. Carrying the initiative further, the Ministry is actively engaged with a few states for establishment of Multi-modal Logistics Parks in this direction.
Further, it has been decided to develop state-of-the-art Inter-modal stations at Varanasi and Nagpur as the two pilots. A Committee has been constituted for review, monitoring and implementation of these Inter-modal Stations at these locations under the Chairmanship of respective Divisional Commissioners with the charter to facilitate DPR preparation etc.
3. ROAD SAFETY Decrease in road accidents and fatalities: As per the report Road Accidents in India-2016, there has
been a decrease in road accidents by 4.1% in 2016. Except the States of Assam, Bihar, Orissa and Uttar Pradesh, all the States have witnessed a decrease in road accident fatalities ranging between 2-10 % during this period.
New Accident Reporting Format: A strong Road safety action plan requires a credible database. The new format of accident reporting has been adopted by all the States and will help in focussing at the key risk areas to strengthen road safety in coming years.
Rectification of Black Spots: The Ministry has so far identified 789 road accident black spots in various States of which 138 are on State roads. 189 spots have already been rectified and sanctions for rectification of 256 spots accorded till date which are in different stages of bidding/ progress.
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BRAINY IAS Training of Drivers: Ministry has been working in association with States, Vehicle manufacturers and
NGOs for strengthening the driving training. Model Automated Centres for checking fitness of vehicles: Ministry has sanctioned 20 Inspection
and certification Centres for testing the fitness of the commercial vehicles though an automated system.
Motor Vehicle (Amendment) Bill, 2017:o The Ministry constituted a Group of Ministers across states to deliberate upon and propose
strategies for reducing road fatalities and to suggest actionable measures for implementation.
o On the basis of recommendations of the GoM, MoRTH introduced the Motor Vehicle (Amendment) Bill 2016 in Parliament (Lok Sabha) on 9th August, 2016.
o The Bill addresses road safety issues by providing for stiffer penalties, permitting electronic enforcement, improving fitness certification and licensing regime, statutory provisions for protection of good Samaritans and recognition of IT enabled enforcement systems.
o The Bill also paves way for reforms in public transport which in turn will help in improving road safety.
o The Bill contains provisions for treatment of accident victims during golden hour which will help in saving precious lives.
o The Bill also aims to simplify processes for the citizens dealing with transport departments and usher in an era of transport reforms in the country.
o The Bill has been passed by the Lok Sabha and has been referred to the Select Committee of Rajya Sabha.
4. GREEN INITIATIVES Green Highways Division in NHAI: NHAI has set up a Green Highways Division and has
planted over 2.5 lakh trees planted last year in order to make National Highways green, clean and pollution free.
Linking of Construction of Highways with digging of Water Bodies in drought affected areas : The requirement of earth work for the development of National Highway network for embankments is met by the contractors/ concessionaires through buying the earth from landowners or procuring the same through mining of minor minerals as per the provisions laid down by the concerned State Governments. Keeping in view that many parts of the country face drought conditions and restoration of ponds, check dams, water tanks offers an age-old system of water conservation/ ground water recharging, instructions have been issued by the Ministry to the agencies responsible for construction of National Highways to advise their contractors/ construction agencies through their field officers to approach the concerned District Collectors/ Sub-collectors/ Water Conservation Departments to obtain a list of any such villages/ rural areas where de-siltation/ revival of existing ponds/ water bodies or digging of areas for creation of new water bodies are required and procure the requisite soil for road embankments by digging/ de-silting the existing village ponds/ water bodies, subject to such soil being found suitable for the embankment purposes. This arrangement would help in restoration of such dried-up water bodies without any charge and the contractors will be able to source the requisite soil without any payment.
Measures undertaken to combat vehicular pollution:(i) Ministry has taken a landmark step towards reducing the vehicular pollution. Emission
norms for Tractors and Construction Equipment vehicles have been notified for low Sulphur fuel, to be implemented from 01st October, 2020.
(ii) Ministry has also taken initiatives to promote alternate fuels in vehicles. The Electric vehicles are being given a big push by the Ministry. India’s first multi modal Electric Vehicle
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BRAINY IASpassenger transport project was launched in Nagpur with integrated solution of buses, taxis and E-Rickshaws.
(iii) The E-Rickshaw, which has proved to be an effective substitute for manual Rickshaws, has emerged as a cost effective, environment friendly solution for improving last mile connectivity. These have been exempted from the requirement of obtaining permits. This has created a game changing scenario for promoting E-rickshaws. During the year to promote last mile connectivity for metro passengers, 1000 number of E-Rickshaws were launched at Gurugram, Haryana.
5. E- INITIATIVES Project Monitoring Information System (PMIS): A very effective Project Monitoring Information
System (PMIS) has been introduced for tracking the status of all projects, preparation of reports and online upload of important project documents like DPRs and contract documents, etc.
INAM-Pro+ launched: INAM-Pro+, an upgraded version of INAM-Pro, was launched on 01 June 2017. More than 700 construction companies have used INAM-Pro during the last two years. With 37 Cement companies registered on it, the portal facilitated comparison of price, availability of materials etc. and made it convenient for prospective buyers to procure cement at reasonable rates in a transparent manner. INAM-Pro*, with enhanced features will reduce the time and efforts in preparation of proposals and bid submissions, and help increase efficiency and transparency in procurement of construction materials as a user can now place orders, obtain price quotes and track them in swift manner on this portal.
Bhoomi Rashi, a web Utility for land acquisition: ln its attempt to move towards total e-governance and avoid delays, this Ministry has developed a Web Utility for land acquisition related processes including gazette notification. The web utility would be linked with the e-gazette platform of the Ministry of Urban Development, for e-publication of land acquisition related Gazette Notifications. The affected/ interested parties would also be given an access to the system so as to track the status of their acquired land and the CALA(s) in different states are being taken on board to deposit the compensation amount in the respective accounts of affected/ interested person
New Initiatives: o Centralized, web-enabled Vahan and Sarathi version 4 (fully integrated online services)
launched to replace current distributions:o Multi-tenant deployment under NIC Cloud; High security, availability and data integrityo To enhance quality of citizen facilities, reduce/eliminate RTO visits, increase
transparencyo More than 600 RTOs across 15 states already migrated to the new system; rest to follow
soon.o Integration with multiple Payment Gateways, IRDA, NCRB, CSC, SMS, Open APIo Integration with Aadhaar for biometric authentication and eKYC; Integration with
Digilockero Features dashboards, smart card, document upload, online scheduling, configurable
workflowo Online Dealer Point Application with integration with Vehicle Manufacturers’ inventoryo Online Fancy Number application with e-auction and e-bidding facilityo Complete range of online services related to Licensing, Tax Payment, transaction
requestso System-based, Multi-lingual knowledge test for Learner License with advanced security
options
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BRAINY IASo Mobile app e-Challan and m-Parivahan – developed for comprehensive enforcement
solutiono Convenient, cost-effective, and practical solution with latest features and state-specific
optionso E-Challan being launched in multiple states by both Transport Enforcement and Traffic
Policeo mParivahan App - for information and comprehensive services to citizeno Major feature will be virtual documents like Driving Licence, Registration Certificate,
Permits etc – as authorized soft copyo Virtual DL/RC can replace physical document/card with encrypted QR Code for
authenticationo Vision to bring transformational improvements in Transport Sector to facilitate citizens
6. INTERNATIONAL PARTNERSHIPS MoU between India and Nepal: A MoU between India and Nepal for laying down
implementation arrangement on cost sharing, schedules and safeguard issues for construction of a new Bridge over River Mechi at Indo-Nepal Border at an estimated cost of Rs.158.65 crores has been signed in August 2017. This will be funded by Government of India through an ADB loan. The new bridge is part of up-gradation of the Kakarvitta (Nepal) to Panitanki Bypass (India) on NH 327B, covering a length of 1500 mtrs. including a 6-lane approach road of 825 mtrs. Mechi Bridge is the end-point of Asian Highway 02 in India leading to Nepal and provides critical connectivity to Nepal.
MoU between India and United Arab Emirates (UAE): To foster Bilateral Cooperation in the Road Transport & Highways sector, a MoU was signed in January, 2017 during the visit of Crown Prince of Abu Dhabi to India during the Republic Day Celebrations, 2017. The MoU envisages cooperation, exchange and collaboration between India and UAE for promoting increased investment in infrastructure development and logistics efficiency. A Joint Working Group (JWG) has been formed under the MoU from both the sides.
Motor Vehicles Agreement (MVA) between India and Afghanistan: A Motor Vehicles Agreement (MVA) for regulation of passenger, personal and cargo vehicular traffic between India and Afghanistan was signed in September, 2017 for enhanced regional connectivity through road transport and for promoting cross-border road transportation for increased trade with Afghanistan via the land route.
IMT Friendship Motor Rally-II, 2017: India-Myanmar-Thailand (IMT) Friendship Motor Rally-II, 2017, supported by MoRTH from Guwahati to Bangkok, was organized jointly by Kalinga Motor Sports Club (KMSC), Bhubaneswar and Mahindra Adventure, Mumbai. The Rally started from Guwahati, India on 24.11.2017 and proceeded through Myanmar to reach at Bangkok, Thailand on 03.12.2017 covering a distance of about 5000 kms to return to Guwahati on 22.12.2017. The essence of the event was to propagate IMT Motor Vehicle Agreement and the Governments initiative along the planned route.
Co-operation Framework Agreement between IAHE, India and IFEER, Morocco: A Cooperation Framework Agreement between Indian Academy of Highway Engineers (IAHE), India and Institute of Training in Engines and Road Maintenance (IFEER), Morocco IAHE, Noida has been signed on 14.12.2017 during the visit of Moroccan Delegation led by Mr. Abdelkader Amara, Hon’ble Minister of Equipment, Transport, Logistics and Water of the Kingdom of Morocco to Delhi. The Agreement envisages bilateral cooperation in the field of training in Engines and Road Maintenance of Moroccan Engineers.
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‘Year End Review, 2017’, Ministry of Skill Development & Entrepreneurship
ABOUT THE MINISTRY: Ministry of Skill Development and Entrepreneurship (MSDE) completed it 3 successful years since
inception in 2014. For the first time, a ministry with its core focus on converging all skill development initiatives in the
country under one National Skills Qualification Framework (NSQF), was created by the Government of India. Out of 2.5 crores candidates who have been skilled under MSDE programs alone, more than one crore have been trained in 2017.
Investment in Skill Development Infrastructure:1. Pradhan Mantri Kaushal Kendras: In year 2017, MSDE focused extensively on building industry
standardized infrastructure for driving skill development training under which it launched its Pradhan Mantri Kaushal Kendras (PMKK). PMKK has the potential to become the benchmark of skill development infrastructure, training, and placement in the respective district and; also in the country. It will make skill development quality oriented, sustainable and aspirational.
2. Indian Institute of Skills (IIS): These are state of the art center of excellence being set up across the 5 regions of India on the lines on ITE Singapore. The construction for the first IIS will begin soon in Mumbai, in collaborations Tata Group. Total budget of Rs. 476 Crore has been laid down for building IIS, which will provide “hands-on” training in advanced courses such as energy efficient construction, industrial electronics and automation etc.
Programs and Achievements made1. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and Recognition of Prior Learning (RPL): Ministry of
Skill Development and Entrepreneurship is implementing flagship scheme known as Pradhan Mantri Kaushal Vikas Yojana (PMKVY) on pan–India basis. PMKVY enables large number of prospective youth, which also includes tribal, for taking Short Term Training (STT) and Recognition of Prior Learning (RPL) through accredited and affiliated training partner/training centers. The schemes run across 252 job roles related to 35 Sector Skill Councils, which is a diverse and exhaustive representation of the industry. Under PMKVY, as on 18.12.2017, 40.5 lakh (appx.) candidates have been trained (27.76 lakh STT + 7.76 lakh RPL) / undergoing training (5 lakh appx.) under Short Term Training and Recognition of Prior Learning. In year 2017, under PMKVY (STT) 11 lakhs have been trained and under RPL more than 3.7 lakh people were assessed and certified, under the program.
2. Fee Based Trainings: Under the Fee based model of skill development training being implemented by National Skill Development Corporation (NSDC), MSDE has trained more than 74 lakhs till date since its inception. In 2017 alone, more than 7 lakh candidates have been enrolled out of which more than 50% have already been placed been in job rob roles which are in demand like Masonry, Filed Sales Technicians, Financial Literacy, Refrigeration mechanic, Certificate in insurance training, Field Technician for Washing Machines etc.
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3. Grading of ITIs: Directorate General of Training under the aegis of Ministry of Skill Development and
Entrepreneurship has launched grading exercise for ITIs to provide “Star Rating” to the performing institutes and give an opportunity to the institutes lagging behind in some of the parameters, to improve upon. The scoring shall be done against each of the 43 defined parameters as per grading framework. The grading of ITIs is voluntary in nature. A total of 5090 ITIs (Govt. & Pvt. ITI) have done online self-rating till the closing date for self-rating. The final rating approved by Core Grading committee will be announced after the physical verification/data validation by the Third party external auditor for the self-rated ITIs.
4. SANKALP & STRIVE: MSDE In October 2017 got approval by Cabinet Committee on Economic Affairs chaired by the Hon’ble Prime Minister Shri Narendra Modi, on the “Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP)” and “Skills Strengthening for Industrial Value Enhancement (STRIVE)” which are all set to boost the Skill India Mission in the country. SANKALP is Rs 4455 Crore centrally sponsored project including Rs. 3300 Crore support from World Bank whereas STRIVE is a Rs. 2200 crore - central sector project, with half of the project outlay as World Bank assistance. SANKALP and STRIVE are outcome focused projects marking a shift in government’s implementation strategy in vocational education and training from inputs to results building in a strong shift to an outcome based skill ecosystem.
5. Takshashila (Trainers and Assessors Portal) - National Portal for Trainers and Assessors is an initiative by NSDC under Skill Indian Mission. The portal is a dedicated platform towards the management of trainers and assessors training life-cycle and would function as the central repository of information concerning the development of quality Trainers and Assessors in the Indian skill eco-system. It is built in with a feature to search trainers and assessors trained by SSCs across states, sectors and job roles for access to a pool of qualified and skilled professionals.
6. MoU for Urja Ganga Gas Pipeline Project: In order to provide the skilled manpower for Urja Ganga Gas Pipeline Project, a quadripartite agreement has been signed today between National Skill Development Corporation (NSDC), GAIL, Skill Development Institute (SDI), Bhubaneswar and LabourNet. MoU is to promote and enhance seamless skill development activities related to Urja Ganga Gas Pipeline Project to ensure high levels of quality and productivity in the execution of the project & provide gainful employment to large number of youth.
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BRAINY IASSpecial Projects under PMKVY especially focused on tribal populations have been initiated in 2017. Below are few of them:
(i) Bru Project: The project aims for skilling of BRU TRIBE of Mizoram, who were displaced and currently living in the Internally Displaced Person (IDP) camps in the districts of North Tripura. Under the project, 556 candidates have been benefited.
(ii) Katkari primitive tribe: Project aims to skill 1020 candidates from the Katkari tribe in Maharashtra.
(iii) Skilling in Odisha: Project aims to skill 12,000 candidates from 62 indigenous communities (tribes) of Odisha, of which 13 are classified as primitive.
(iv) Project YUVA with Delhi Police under PMKVY: Ministry of Skill Development also this year initiated Project YUVA which is a joint initiative of NSDC and the Delhi Police under which Delhi Police is connect young 3,000 deprived youth and across the capital, 8 police stations under phase 1 of the project with training partners so that they can upgrade their skill as per their capability post which, they will be given placement assistance. This mission is being undertaken to prevent the youth from committing crime and delinquent acts as well as to encourage them to partner with police in maintaining law and order, management of crime and connecting with the community at large. At present, 715 candidates have been enrolled of which 390 have been trained and 240 have been placed in companies like Burger King, Lemon Tree Premier, Sodexo India and Hotel Taurus Sarovar Portico.
International Collaborations and Platforms of engagement MoC with Government of Japan: A Memorandum of Cooperation (MoC) on Technical Intern Training
Program (TITP) was signed between the Ministry of Skill Development and Entrepreneurship (MSDE) and Government of Japan on 17th October, 2017 at Tokyo.
44th WorldSkills International competition was held in Abu Dhabi from 14th to 19th October 2017. In this event, a team of 28 competitors represented India wherein more than 1,300 participants from 59 World Skills member countries competed each other in 51 skills and trades.
Partnership with Ministry of Belarus: An MoU has been signed between MSDE and M/o Education of the Government of the Republic of Belarus for Cooperation in the field of Vocational Education and Training (TVET).
India – Africa Knowledge Exchange Mission: The Ministry in collaboration with World Bank arranged an India – Africa Knowledge Exchange Mission in New Delhi with Minister Level participations from Five African Countries viz. Rwanda, Ethiopia, Nigeria, Ghana and Uganda besides 12 Technical Members and 2 members from PASET (Partnership for Skills in Applied Sciences, Engineering and Technology), World Bank.
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