1. India Skills-2016The President of India inaugurated the India Skills Competition -‘India Skills-2016’ in New Delhi marking World Youth Skills Day (July 15, 2016). He also launched an International Skill Centre, a PMKVY 2.0, a Labour Market Information System and Skills Online.Himayat programme in J&KCentre has approved Rs 1601 crore for Jammu and Kashmir under skill development initiative Himayat to train 1.24 lakh local youths in vocational courses.

2. Core sector growth slows to 2.8% in MayThe cumulative growth during April-May in FY 17 was 5.5 %Eight core sectors of the economy posted a 2.8 per cent year-on-year growth in May, the slowest pace since 2.9 per cent in January, due to a decline in output of refinery and steel products.These eight sectors — comprising almost 38 per cent of the weight of items included in the Index of Industrial Production (IIP) — had recorded an 8.5 per cent growth in April, which was the highest since 8.54 per cent in November 2014.The low growth in May was on account of a contraction in output of crude oil and natural gas in addition to a very marginal expansion registered by refinery products. Besides, the growth in electricity generation with a weight of 10.3 per cent in the IIP — the maximum weight among the eight core sectors — slowed down to 4.6 per cent as against 6 per cent in May 2015. The growth in coal output at 5.5 per cent in May was slower than 7.6 per cent in May 2015, and so was the performance of cement (2.4 per cent as against 2.7 per cent in May 2015). Fertiliser was the lone sector to post double digit growth at 14.8 per cent (versus 1.3 per cent in May 2015), while steel sector production grew by 3.2 per cent (as against 2 per cent in May 2015).

3. India seeks market access for sesame seeds in JapanMinistry of Commerce pushed a proposal asking Japan to bring its big ‘general trading companies’ such as Itochu, Mitsui and Mitsubishi to India for bulk purchase of sesame seeds (locally known as ‘till’).(India-Japan) Joint Committee was a panel set up following the signing of the bilateral Comprehensive Economic Partnership Agreement (CEPA) in 2011. The committee’s functions include reviewing the CEPA and suggesting amendments to the pact to boost bilateral trade and investment.The focus on sesame seeds is because Japan is the world's second largest importer of the item (after China) with annual imports of around 1.6 lakh tonnes.

Sesame seeds are used in Japanese cuisine in salads, soups, snacks, candies, and for flavouring and baking. Sesame oil is used in cooking, and in manufacture of soaps, perfumes and pharmaceuticals, while sesame meal (a by-product of the oil) is used as poultry feed.However, following the detection of pesticides and insecticides such as DDT and malathion in some sesame seeds consignments from India over two decades ago, Japan has been reluctant to import the commodity from India. However there is no official ban in Japan on import of sesame seeds from India.India is the world’s largest producer and exporter of sesame seed with an annual production of around 7 lakh tonnes. India’s sesame seeds exports in FY'15 was 3.76 lakh tonnes valued at Rs.4717.77 crore but it slipped in FY’16 to 3.28 lakh tonnes worth Rs.3011.52 crore.

4. Steps taken to increase Pulses ProductionCentral Government is taking several measures to control the price rise of pulses. Importing pulses from foreign countries Taking action against hoarders Increase pulses production Incentivise pulses growing farmers Recently, Govt has given a step hike in MSP for pulse crops to encourage farmers Central govt has decided to form a committee under the Chief economic advisor, Govt of India to make a long term plan to encourage pulse growing among farmers and to review MSP and bonus for farmers.Agriculture and Farmer Welfare Ministry has taken several steps to increase pulse production. In the year 2013-14 under the National Food security mission only 482 districts of 16 states were included. Now all 638 districts of 29 states have been included in this plan.

Goa, Kerala and 8 north eastern states and 3 hilly states have now been included in this mission.Of this amount allocated for NFSM, 15% goes for production of new varieties of pulses. For expansion of cultivation of new kinds of seeds, mini-kits are being distributed to farmers free of cost in the year 2016-17, through State GovernmentsIn the year 2016-17, demonstration of new techniques for pulse production is being carried out in 31,000 hectares by 534 KVKs through ICAR & State Agriculture Universities and Rs.25.29 crores have been allocated for this purpose.Seed Hubs are being created through different organisation like ICAR, State Agriculture Universities and KVKs for ensuring the availability of new kinds of seeds. In 3 years 150 seed centers will be established and availability of 1.50 lakh quintal improved seeds will be ensured by Central Government.Government is working for new variety of pulses crops. To increase the availability of new types of breeder seeds of pulses, ICAR Institute and State Agriculture Universities have been provided Rs. 20.39 crore during 2016-17. Govt is also concentrating towards the procurement of pulse crops. Inter Cropping of pulses with oil seeds, cotton and other crops, summer moong and cultivation of tur dal on paddy fields is being encouraged.Government is encouraging Farmer producer organisations (FPO) to grow seeds, to buy, and to use efficient technology and to ensure adequate prices to small and marginal farmers for their produce.Recently, the extent of buffer stocks of pulses has been increased from 8 to 20 MTs. The Central Government agencies like Central procurement agencies (NAFED, FCI, S.F.A.C.) Against the target of 1.00 lakh tones for the year 2016-17, the procurement of Chana and Masur.Central procurement agencies (NAFED, FCI, S.F.A.C.) has been to the tune of 69000 till 10th July. Chana and Masoor were procured at the rate of Rs.4900-7000 and Rs.5400-8500 per quintal respectively.

5. Cabinet approves import of pulses through long-term contract with MozambiqueThe Union Cabinet has approved a long-term contract by signing a Memorandum of Understanding (MoU) with Mozambique for import of pulses either through the private channels or Government-to-Government (G2G) sales through State Agencies nominated by the two countries.The MoU aims at promoting the production of Pigeon Peas/Tur and other pulses in Mozambique by encouraging progressive increase in the trading of these pulses.

The MOU includes targets for exports of Tur and other pulses from Mozambique to India for five financial years and aims at doubling the trade from 100,000 tonnes in 2016-17 to 200,000 tonnes is 2020-21.The MoU will augment domestic availability of pulses in India and thereby stabilise its prices.The total pulses production in the country during 2015-16 is estimated to be 17 million tonnes while 5.79 million tonnes of pulses were imported to meet the domestic requirements. However, the total availability of pulses including domestic production and imports were was less than domestic requirements putting pressure on the prices of pulses during the year 2015-16 and current year.

6. Pradhan Mantri Adarsh Gram YojanaUnion Ministry for Social Justice & Empowerment reviewed the implementation progress of the Pradhan Mantri Adarsh Gram Yojana (PMAGY). Following the success of the scheme in the 1000 pilot villages in Assam, Bihar, Himachal Pradesh, Rajasthan and Tamil Nadu, it is now extended to further 1500 Scheduled Caste majority villages in Assam, Uttar Pradesh, West Bengal, Madhya Pradesh, Karnataka, Punjab, Uttarakhand, Odisha, Jharkhand and Chhattisgarh.Pradhan Mantri Adarsh Gram Yojana (PMAGY) is a Centrally sponsored scheme which is implemented by the Ministry of Social Justice and Empowerment for integrated development of Scheduled Caste majority villages having Scheduled Caste population of more than 50%.The scheme aims to achieve integrated development of SC majority villages through convergent implementation of relevant schemes and providing gap filling funds to take up activities which do not get covered under existing schemes. The major components of integrated development of villages under PMAGY are:(i) Physical infrastructure such as construction of roads, street lighting, access to safe drinking water;(ii) Sanitation and environment;(iii) Social infrastructure, human development and social harmony; and(iv) Livelihood.

7. Impact of Brexit Indian financial marketsExports to the U.K. and the rest of the EU account for 0.4 % and 1.7 % of GDPIndian financial markets will experience limited impact from Britain exiting the European Union (EU).Factors such as subdued global demand, weak rural incomes, higher food inflation and high leverage for some large corporates are likely to have a more immediate effect on the economy.

Only a very large and prolonged slump in imports from these regions, which is not our baseline assumption, would markedly dent India’s exports.There are other impediments to higher growth in India, which, however, predate the Brexit vote.First, lacklustre global demand constrains exports, which account for around 20 per cent of GDP.Second, two years of drought have dampened consumption with weak rural incomes and higher food inflation lowering purchasing power.Lastly, high leverage for some large corporates weighs on credit demand while impaired assets in the banking system negatively affect credit supply.Corporate deleveraging will likely take some time due to the low global demand and the subsequent impact on revenues and profits. In addition, actions taken by the government are likely to yield mixed results.Imposition of minimum import prices for steel, for example, will be mildly positive for the sector.By contrast, expensive telecom auctions in 2016 will contribute to a further increase in leverage in the telecom sector, which is yet to digest last year’s auction outcome.Continued high corporate leverage, low nominal domestic growth and a lack of corporate pricing power will hold back investment activity for at least several quarters with poor asset quality and weak capitalisation likely to restrict public sector bank lending capacity.

8. Pakistan to take river dispute back to courtPakistan has decided to return to an international tribunal to settle a dispute with India over sharing waters of the Kishenganga and Ratle rivers.Pakistan had initiated international proceedings on sharing Kishenganga’s water but lost the case in 2013 when the International Court of Arbitration “recognised” India’s rights over the river.Pakistan’s latest decision to go to the Permanent Court of Arbitration (PCA), The Hague, was made public after talks between officials of both sides in Delhi failed to make progress.Pakistan’s decision to move the Permanent Court of Arbitration in the case is expected to erode the established mechanism of solving disputes on river water sharing which has served both sides successfully under the Indus Waters Treaty, 1960.Pakistan’s previous attempt at the PCA had backfired as the PCA had given a verdict defending India’s right to divert water of Kishenganga. The PCA had also quashed Pakistan’s argument that India’s hydroelectricity power plans on the Kishenganga reduced flow of water for Neelum Jhelum Hydro Electricity Project (NJHEP).However experts in Pakistan are pointing out that unlike the previous arbitration at the PCA which lasted from 2010-2013, Pakistan will this time around take up the issue of “design” of the Kishenganga and Ratle river projects in Kashmir.

The Neelum River or Kishanganga is a river in the Kashmir where it enters into Jhelum river and ultimately enters Pakistan.The Ratle Hydroelectric Plant is a run-of-the-river hydroelectric power station currently under construction on the Chenab River, downstream of the village of Ratle in Doda district of Kashmir.The Indian Rivers Inter-link project in India and mismanagement of existing water supplies augments the pressure on both countries.A glaciologist quoted by the Economist calls the dams “water bombs“ on the Indus, as they are in an earthquake prone zone. In fact, a top water expert (preferring anonymity) who worked with the World Bank on a report about Indian dams argues that about 15 large Indian dams in the Himalayas are “dodgy dams” and shouldn’t have been commissioned at all.Indian media suggest that India “should leverage this natural advantage” while rebel groups vow to fight India’s “water terrorism”.

9. Urjit Patel to head RBI Appointments Committee of the Cabinet (ACC) announced the appointment of Reserve Bank of India Deputy Governor Urijit Patel as successor to Governor Raghuram Rajan. In the first step, the Financial Sector Regulatory Appointments Search Committee (FSRASC) headed by the Cabinet Secretary P. K. Sinha made a shortlist for the consideration of the ACC. Challenges before Urjit Patel1. Retaining the overall autonomy of RBI, by not buckling under government pressure to cut ratesThe government has its agenda among which, providing jobs to unemployed youth is a priority. In order to do this on a large scale, the small and medium industries will have to borrow capital from banks. They will borrow if the rate of interest is low. But RBI has many considerations when reviewing and setting the policy rates. RBI will have to keep the its autonomy in tact even as the Finance Ministry puts pressure on it to cut rates.2. Taming inflationInflation, particularly the consumer price inflation, has been going up, up and up lately. While a good monsoon is expected to ease inflation, the fact is that monsoon comes when consumers are hit the most—vegetables including the common man's onions and potatoes get costlier. Going by the classic definition of inflation—too much money chasing too few goods—economists generally ensure there is no "too much money" in circulation, by reducing advances by raising lending rates. The message to government is, address the supply side and ensure more goods in the market.3. Persuing PSU banks on the subject of their NPAs/Stressed assets without adversely affecting credit flow

Most public sector banks are deep in the red—an estimated over Rs 30,000 crores—with corporates not repaying loans as their balance sheets are also in the red. It is the tax payers' money of which the RBI is the custodian. In its regulatory capacity, it cannot allow the banks to write off or endlessly defer repayment. The current cleaning up exercise, some economists fear, may dampen the borrowing by companies, and their productivity and capacity to create jobs. The RBI will have to walk the tight rope as he cleans up banks.4.Ensuring smooth functioning of Monetary Policy Committee, which is newThe casting of vote, which is the veto power, in the Monetary Policy Committee with 3 members each from Government and RBI, rests with the RBI Governor, effectively giving him the last word on the policy rate. It will thus be the Governor who will clinch the decision on whether to cut rates or not, or depending on the circumstances, even raise the rate.5. RBI will have to take forward new set of bank licencesThe RBI will have to decide on the next set of banking licences and ensure the operations of the payment of banks and small banks that have been given licences but are yet to start operations. This is part of the government's idea of financial inclusion. Some of these may not be altogether commercially viable, yet the RBI will have to package it in an attractive way, and ensure these do not add up stressed accounts of their own. Many allottees are new players in the banking field. (eg: telecom companies have been given licences.)6. Greater oversight in a globally volatile and uncertain environmentThe global meltdown of 2008 showed how events in a far away country can affect our economy. Whether foreign institutional investors(FIIs) or foreign direct investors(FDI) pump in more money or pull out a bit of their investments, the capital markets in India get affected. Ditto when the Federal Reserve Bank of the US reviews its monetary policy. The RBI has bought dollars in the spot market and in the forward market. Taking such decisions, based on performance of economies far removed and differently regulated, was an occassional task in the past. Not any more.7. Holding the rupee in a globally challenging environmentWhen the rupee falls, it hits students studying overseas in a visible way. It affects the importers in a less visible way. Holding the value of the rupee without devaluing it is a major challenge for the RBI 8. Enthuse confidence among investors globally in the Indian central bankThe government can demonstrate stability and carry out reforms, and the RBI has to do almost everything else, particularly provide confidence to markets so that India can meet her external obligations. As our imports grow and industrial productivity remains stagnant, this task is much tougher.9 Tightening banking norms so that they are capitalised and can handle any crisesThis is yet another tool used to bring down stressed assets. These norms pertain to monetary policy rates as well as other directives.10. Take forward the government's financial inclusion agenda

While the government talks on a number of new accounts, the RBI has the challenge of making these accounts actually work for the people—be it in tandem with the Aadhar card as in the case of direct benefits transfer, or even the MUDRA scheme that promises loans without guarantees.

10.Market Economy Status to China?Apart from ongoing internal assessments, there are studies available which basically postulate on the possible implications of China being granted Market Economy Status (MES). The WTO did not distinguish between non-market economy and market economies before 1955, the addendum to article VI of GATT acknowledges that non-market economy policies can introduce price distortions. These distortions can render price comparability between the normal value, determined as the domestic price of a certain good in the export country, and the export price of that same good applied by the exporters of that same country, impossible. The accurate comparability of these two values is fundamental for calculating the dumping margin and determining applicable dumping duties. The addendum therefore allows importing countries to take into account alternative methodologies if comparing of domestic prices of the exporting country is inappropriate. The main implication of NME status in anti-dumping proceedings is the possibility to use other methodologies to determine the normal value of the good, instead of using domestic prices to compute the dumping margin. In general, NME methodologies to calculate normal value have proven to lead to higher anti-dumping duties. Under Section 15 of the Chinese WTO Accession Protocol, China can be treated as a non-market economy (NME) in anti-dumping proceedings if Chinese firms cannot prove that they operate under market economy conditions. China has argued that, according to Section 15(d) of the WTO Accession Protocol, the Section 15 provision allowing for NME methodology expires after 11 December 2016, resulting in a legal obligation to grant MES to China after that date. This interpretation of the section remains highly controversial. Several countries have granted earlier recognition of MES to China, mainly as a condition for negotiating free trade agreements (FTA) with China. In addition to India, the main countries which still consider China an NME are the US, Canada, Japan and the European Union (EU). Market Economy Status (MES) would give China’s competitors less opportunity to initiate anti-dumping measures on Chinese exports. The precise change would centre on how prices are calculated; whether by reference to domestic prices and costs in China, or by comparison with an ‘analogue country.’The reason this matters is simply that in a ‘Market Economy’ it is assumed that costs and prices are determined by the market, rather than by the intervening hand of the state. By

contrast, in a ‘Non Market Economy’ it might be possible for state agencies or state owned companies to simply set costs and prices such that efforts to calculate appropriate anti-dumping charges are frustrated.Why does the restriction exist?Removing trade barriers between two economies allows for the market to allocate factors of production efficiently across a wider economic space. Economies of scale will be greater providing an incentive towards corporate consolidation and greater specialization. In due course, this will have the effect of distributing capital and employment according to comparative advantage, which may, of course, produce considerable upheaval for some industries and regions.Nevertheless the aggregate effects of this process are generally held to be beneficial. Lost employment is offset by cheaper consumer prices, a lower cost of living, and new employment opportunities in more productive and specialised sectors.

11.National Committee on Trade Facilitation Consequent to India’s ratification of the WTO Agreement on Trade Facilitation (TFA) in April 2016, the National Committee on Trade Facilitation (NCTF) has been constituted with the chairmanship of the Cabinet Secretary.The defined objective behind setting up the NCTF is to have a national level body that will facilitate domestic co-ordination and implementation of TFA provisions. It will play the lead role in developing the pan-India road map for trade facilitation. It will be instrumental in synergizing the various trade facilitation perspectives across the country and will also focus on an outreach programme for sensitization of all stakeholders about TFA. It has a three tier structure with the main national committee that will be the pivot for monitoring the implementation of the TFA. There will be a steering committee below it that will be chaired by Member, Customs, CBEC and which will be responsible for identifying the nature of required legislative changes as well as for spearheading the diagnostic tools needed for assessing our level of compliance to the TFA.It will have the responsibility to form and monitor the working of adhoc working groups of experts that will deal with specific trade facilitation issues. Detailed Terms of Reference for each level of the Committee are contained in the order itself. The composition of the NCTF is inclusive at the national committee level which will comprise of Secretaries of all key Departments involved in trade issues like Revenue, Commerce, Agriculture, Home, Shipping, Health etc. It will also have Chairman CBEC, Chairman Railway Board, and Director General Foreign Trade as Members. Major trade associations like CII, FICCI, and FIEO etc are also its Members. Joint Secretary, Customs, CBEC will be its Member Secretary.

The total membership stands at 24 and the Committee can co-opt any representatives from the State Governments on relevant issues. The steering committee will be a core group having 15 members from various Ministries and trade bodies. 

12.MAA programmeUnion Ministry of Health and Family Welfare launched MAA (Mothers Absolute Affection). It is a nationwide programme launched in an attempt to bring undiluted focus on promotion of breastfeeding and provision of counseling services for supporting breastfeeding through health systems. The Ministry highlighted the life cycle approach - Continuum of care approach - has been adopted with the articulation of ‘Strategic approach to Reproductive Maternal, Newborn, Child and Adolescent health (RMNCH+A) The chief components of the MAA Programme are Community awareness generation, Strengthening inter personal communication through ASHA, Skilled support for breastfeeding at Delivery points in Public health facilities, and Monitoring and Award/recognition. 

13.Pradhan Mantri Rojgar Protsahan Yojana A new scheme “Pradhan Mantri Rojgar Protsahan Yojana”(PMRPY) has been announced in the Budget for 2016-17 with the objective of promoting employment generation and an allocation of Rs. 1000 crores has been made. The scheme is being implemented by the Ministry of Labour and Employment in 2016-17. Under the scheme employers would be provided an incentive for enhancing employment by reimbursement of the 8.33% EPS contribution made by the employer in respect of new employment. The PMRPY scheme is targeted for workers earning wages upto Rs. 15,000/- per month. Publicity and awareness campaign is an integral component of the PMRPY scheme for encouraging employers including Micro, Small and Medium Enterprises (MSMEs) to avail benefits. 

14.Gujarat: First state to distribute LED Bulbs under UJALA Under the Government of India’s Unnat Jyoti by Affordable LEDs for all (UJALA) scheme, Gujarat has become the first state to distribute 2 crore LED bulbs. The distribution of 2 crore LED bulbs has led to an annual energy savings of 259 crore kWh which is equivalent to lighting up 5 lakh Indian homes for an entire year. Alongside the savings in units, the state has also benefitted from daily CO2 emission reduction of 5,000 tonnes.The programme has also helped the state to avoid 520MW of peak demand.

15.‘TARANG’ ‘e-Trans’ & ‘DEEP’ Union Ministry for Power, Coal, New & Renewable Energy and Mines launched the ‘TARANG’ Mobile App, ‘e-Trans’ & ‘DEEP’ e-bidding web portals, developed by Rural

Electrification Corporation Transmission Projects Company Limited (RECTPCL), a subsidiary of REC Ltd, in New Delhi. ‘TARANG’ (Transmission App for Real Time Monitoring & Growth) Mobile App & Web Portal has been developed by RECTPCL, under the guidance of Ministry of Power. Introduction of the electronic platform shall enhance ease, accountability & transparency and would boost confidence of investors in power transmission sector. ‘e-Trans’ web platform for e-bidding and e-reverse auction for Tariff Based Competitive Bidding (TBCB) in transmission projects. ‘DEEP (Discovery of Efficient Electricity Price) is e-Bidding’ portal for medium term (1-5 years) purchase of power.

16. Puducherry joins “UDAY” scheme The Government of India, and the Union Territory of Puducherry signed a Memorandum of Understanding (MOU) under the Scheme UDAY – “Ujwal DISCOM Assurance Yojana” for operational turnaround of the Union Territory’s Electricity Department. Puducherry is the first Union Territory to sign MoU under UDAY. A total of 16 States/UT have joined the Scheme till date.

17.National Council of Senior Citizens An autonomous National Council for Senior Citizens headed by the Minister for Social Justice & Empowerment was set up to promote and co-ordinate the concerns of older persons. The Council includes representatives of relevant Central Ministries and the NITI Aayog. Five States are represented on the Council by rotation. Adequate representation is given to non-official members representing Non-Government Organizations, Academic bodies, Media and Experts on Ageing issues from different fields.

The meeting discussed the following 10 Agendas: 1.      Review of the policy for Senior Citizens at Central and State levels.2.      Review of the programme being implemented by different Ministries for the Welfare of Senior Citizens, such as IPOP, IGNOAPS, NPHCE etc.3.      Review of the working of MWPSC Act, 2007.4.      Review of measures taken by Government for the physical safety and security of Senior Citizens.5.      Review of measures for the economic wellbeing and financial security in Old Age, with special reference to Pension Plans, Reverse Mortgage Scheme etc.6.      Discussion on Senior Citizens Welfare Fund.7.      Review of Health care facilities with special reference to Geriatric care, Respite/Palliative care, Home care and Health Insurance.8.      Review of concessions and other facilities available to Senior Citizens.

9.      Review of effectiveness of public administration in safeguarding the interest of Senior Citizens in the society.10.  Evaluation of the extent of Awareness and Sensitization of younger generation regarding the special needs and right of Senior Citizens. The percentage of person 60+ in the total population has seen a steady rise from 5.1 per cent n 1901 to 6.8 per cent in 1991. It is expected to reach 8.9 per cent in 2016. Projections beyond 2016 made by United Nations (1996 Revision) has indicated that 21 per cent of the Indian population will be 60+ by 2050.

18.Sugamya Pustakalaya “Sugamya Pustakalaya: A step towards an Accessible Digital India” (An online library for persons with visual disabilities) was launched by Ministry for Electronics & Information Technology at a function organized by Department of Empowerment of Persons with Disabilities, Ministry of Social Justice & Empowerment . 

19.Banks to issue Masala bonds, RBI opens currency markets The Reserve Bank of India (RBI) has announced a raft of measures to boost investor participation and market liquidity in both the corporate bond and currency markets. The central bank will allow commercial banks to issue rupee bonds in overseas markets — known as Masala bonds, both for their capital requirement and for financing infrastructure and affordable housing. Accepting many of the recommendations of the Khan Committee to develop the corporate bond market, it has been decided to enhance the aggregate limit of partial credit enhancement (PCE) provided by banks, permit brokers in corporate bond repos, authorise the platform for repo in corporate bonds and encourage credit supply for large borrowers through market mechanism. It has been now been decided by the regulator that the aggregate PCE that will be provided by the financial system for a given bond issue will be increased from the present level of 20 per cent to 50 per cent of the bond issue size, subject to the PCE provided by any single bank not exceeding 20 per cent of the bond issue size and the extant exposure limits. RBI said it has also been decided to seek suitable legal amendments to enable it to accept corporate bonds under the Liquidity adjustment Facility (LAF).Hedge transactions In order to ease access to the foreign exchange market for hedging in over the counter (OTC) and exchange-traded currency derivatives, the RBI has allowed entities exposed to exchange rate risk, both resident and non-resident, to undertake hedge transactions with simplified procedures, up to a limit of $30 million at any given time. The exposed person will be free to access any market (OTC or exchange) and use any of the permissible products at his discretion.

Banks can also allow the customer an open position limit of up to $5 million. This is intended to improve liquidity and depth in the foreign exchange market and the limit will be revised from time to time. The RBI said since exposure of Indian entities to commodity price risks has been accentuated by the growing integration of the Indian economy and increasing volumes of cross border trade, a working group will be formed to review the guidelines for hedging of price risk by residents in the overseas markets. To enhance participation in the corporate bond market, the RBI has decided that brokers authorised as market makers will be allowed to participate in the corporate bond repo market. This measure is expected to meet their funding and securities requirement arising out of market making activities. Currently, banks, primary dealers, mutual funds, insurance companies are only allowed. In addition, foreign portfolio investors have been allowed to transact in corporate bonds directly without involving brokers.”

20.One Nation, One Tax The Bill to amend the Constitution paving the way for Goods & Services Tax (GST) was passed in the Rajya Sabha and was also approved later by Lok Sabha The constitutional amendment will enable both the Centre and the States to simultaneously levy the GST, which will subsume all indirect taxes currently levied, including excise duties and service tax. It will be levied on consumption rather than production. The GST will have two components keeping in mind the federal structure of India: the Central GST (CGST) and the State GST (SGST). The shift to the GST regime will lead to a uniform, seamless market across the country. The introduction of a unified goods and services tax (GST) across the nation is the most important indirect tax reform since Independence. It has taken almost 16 years from the date of inception of the idea, formation of a task force, to passage in Parliament. It represents a Herculean, nationwide, multi-party consensus-building exercise which is finally bearing fruit.The upside of GST First, it addresses a serious impediment to our competitiveness. Without the GST, there are multiple points of taxation, and multiple jurisdictions. We also have an imperfect system of offsetting credits on taxes paid on inputs, leading to higher costs. Further there is cascading of taxes — that is, tax on tax. Interstate commerce has been hampered due to the dead-weight burden on Central sales tax and entry taxes, which have no offsets. All this will

go once the GST is in place. It will enhance the ease of doing business, and make our producers more competitive against imports. Second, the adoption of the GST is an iconic example of “cooperative federalism”. It represents a national consensus, an outcome of a grand bargain struck together by 29 States and seven Union Territories with the Central government. The States agreed to give up their right to impose sales tax on goods (VAT), and the Centre gave up its right to impose excise and services tax. In exchange they will each get a share of the unified GST collected nationally. Third, once the GST is in place, it means a unified, un-fragmented national market for goods and services, accessible to the smallest entrepreneur. Companies need not maintain stock depots to avoid paying interstate taxes. Fourth, because the structure of claiming input tax credit is linked to having proof of taxes paid at an earlier stage in the value chain, this creates interlocking incentives for compliance between vendor and customer. No more questions from a vendor: “Would you like that with receipt or without receipt?” Because of this inherent incentive, the total taxes paid, and hence collected, may go up significantly. This provides buoyancy to the GST. In fact, a significant part of the black economy will enter the tax-paid economy.The potential downside All of this constitutes the upside of adopting the GST. Its roll-out represents a rare and historic political consensus. (1) First is the question of the uniform GST rate. What should it be? An early report of the Finance Ministry from 2003 mentioned a rate of 12 per cent. Over the years this rate drifted higher, and the focal number being discussed now is 18 per cent. What determines this number? The empowered committee of finance ministers uses a concept called “Revenue Neutral Rate” or RNR. The RNR is that uniform rate which when applied will leave all States with the same revenue as before. The higher the RNR (and hence GST rate), the more is its inflationary impact. This is a sure way of killing the golden egg-laying goose. (2) The second issue is that the GST is an indirect tax. By their very nature, indirect taxes are regressive because they affect the poor more than the rich. India’s ratio of indirect to direct tax collection is 65:35, which is exactly the opposite of the norm in most developed countries. India’s ratio of direct tax to GDP is one of the lowest in the world, and it badly needs to expand the direct tax net. Only 4 per cent of India pays income tax, but practically all Indians pay indirect taxes in one form or the other. Direct tax rates have been falling, and indirect tax rates rising..

(3) The third issue is of tax litigation. Approximately Rs.1.5 lakh crore is stuck in litigation related to Central excise and service taxes. On the other hand the State-level VAT is administered in a way that empowers tax officials to dispose of cases quickly. Disputes involving Central taxes go though an appeal and tribunal process, and can drag on for years. It is important that the GST approach leans towards the more efficient State-level model.(4) The fourth issue in implementing the GST is the governance within the GST Council. It is a de facto council of States, along with representatives from the Union Finance Ministry. It seems that one State will get one vote, irrespective of its size. This seems unfair. An economically larger State, contributing a bigger chunk of the GST pie, should have a greater say. Similarly, the special needs of smaller States should also be heeded. For instance, the Northeast States had to be assuaged already with a lower threshold for GST exemption, because if a higher (uniform) threshold were adopted nationally, then nearly all businesses of the Northeast would become tax-exempt.(5) Finally, the issue of States’ autonomy. India will be a unique large democracy that adopts a nationwide GST, with virtually no taxing powers to the States. In the United States, the States have power to impose sales and income taxes. Within the European Union (EU), each member country retains fiscal autonomy, and also the freedom to breach the fiscal deficit of 3 per cent of GDP. Indeed virtually all members of the EU have breached that limit. In India, what if a State wants to undertake a special spending programme to respond to a State-specific situation, such as a disaster? In 1982, the Chief Minister of Tamil Nadu upgraded a midday meal scheme which his opponents criticised as being an empty promise and fiscally reckless. In response she raised taxes on goods (not possible in a GST regime. It achieved the double objective of better nutrition for children and better school attendance. Similarly in the drought crisis year of 1972, the Maharashtra government imposed a profession tax on city dwellers (not possible under the GST) to fund an innovative programme called the rural “Employment Guarantee Scheme (EGS)”, which three decades later was acknowledged nationally as the inspiration behind the National Rural Employment Guarantee Act. The GST regime should remain sympathetic to this issue of States’ fiscal autonomy. We have not even mentioned here what happens to the third tier, i.e. local bodies.

The GST is obviously not a panacea for all ills of India’s economy. It is nevertheless a revolutionary and long-pending reform. It promises economic growth and jobs, better efficiency and ease of doing business, and higher tax collection. For a common market The Bill needs to be rectified by a majority of the states (15/29). Following this, it will be sent to the President. After Presidential assent, a GST council comprising representatives from the states and Centre will be upset. The council will help codify central GST laws which would be passed by Parliament and State assemblies. GST Network, the IT backbone of GST, to facilitate online registration, tax payment and return filing would be introduced. GST network will create online portal. The portal will begin migrating data on existing taxpayers under the current VAT/excise/service tax regimes. All business will be gven a GST identification number, a 15 digit code comprising their state code and 10 character PAN. The GST Network has already validated the PAN of 58 lakh business from tax department. Government is already enabling “master trainers”, who would train accountants, lawyers and tax officers on the new system.GST will replace Central excise Duty – Value Added Tax Service Tax – Octroi and Entry Tax Additional Custom Duty (CVD) – Purchase Tax. Central Sales Tax – Taxes on Lottery, betting and Gambling. Central surcharges and cesses – State cesses and surcharges. Special Additional Duty of customs – Luxury Tax. Entertainment tax.Assam is first to pass GST Bill The Assam Assembly unanimously passed the Constitution Amendment Bill on GST, becoming the first State to ratify the crucial tax reform legislation.

21.Feb 1: Union budget The Finance Ministry proposed February 1 as the new date for presenting the budget.The finance ministry made a presentation before the parliamentary standing committee on finance on three crucial changes that have been proposed -merger of the general and railway

budgets, advancing the budget presentation date and merging plan and non-plan expenditure.The government sought to comfort those who were worried about the fate of the SCST and tribal sub-plans with the finance ministry saying even after the merger of plan and non-plan spending it would mandate that share of SCST components of scheme allocations cannot be lower than what was provided in the budget estimates for 2015-16 and 2016-17. It also told the parliamentary panel that the concurrence of the Comptroller & Auditor General before ending the age-old distinction.The government hopes to obtain parliamentary approval for the budget and notify it before March 31.This would mean that there will be no need for the traditional vote on account and help accelerate spending on government plans and projects.The benefit of any tax changes in central excise, service and GST when implemented will accrue to the government from the start of the financial year rather than in May or June as is the practice now.The finance ministry plans to hold pre-budget consultations with ministries from October 17 and hopes to complete the consultative process with all stakeholders by December 25. Projections for GDP for the current fiscal year would be advanced from February 7 to January 7. The economic survey, an annual report of the economy, will be presented to Parliament a day before the budget.The government hopes to complete all legislative procedures relating to the budget including the passage of the finance bill before the new financial year 2017-18 begins in April. Parliament is expected to adjourn before February 10 and rec-convene after the recess around March 10.

22.Energy Efficiency Services Limited It is the nodal agency in India for implementing LED programme.The company has performed exceedingly well in terms of vastly improving access to LED lighting while reducing their cost drastically.The price at which EESL has been purchasing LED lights to distribute under the government’s Unnat Jyoti by Affordable LEDs for All (Ujala) scheme has been consistently falling over the last couple of years. Along with this, production has also been ramped up to about four crore per month from the 10 lakh a month that were produced two years ago. LED lights consumes 80 per cent less electricity than incandescent bulbs.The 175 GW of renewable energy capacity target by 2022 will not be a problem for India.

23.Janani Suraksha Yojana A new study brings in first conclusive evidence of the role played by Janani Suraksha Yojana (JSY) in reducing ‘socioeconomic disparities’ existing in maternal care.The JSY was launched in 2005 as part of the National Rural Health Mission (NRHM) to improve maternal and neonatal health by promotion of institutional deliveries (childbirth in hospitals).JSY has led to an enhancement in the utilisation of health services among all groups especially among the poorer and underserved sections in the rural areas, thereby reducing the prevalent disparities in maternal care.While previous studies had shown the impact of JSY in reducing maternal mortality, it was not known if it had reduced socioeconomic inequalities — differences in access to maternal care between individual people of higher or lower socioeconomic status.The study was conducted using data from two rounds of the India Human Development Survey (IHDS) — conducted in 2004-05 and 2011-12. The IHDS data serves two advantages in this case. First, round 1 of IHDS was conducted in 2004-05 when the JSY was not in place and round two was conducted six years after the launch, providing a before-after scenario for comparison. Secondly, the IHDS is a longitudinal data set — same households were interviewed in both rounds, which allows to examine changes in maternal care patterns.Three key services of maternal care were used for the analysis: full antenatal care (full ANC), safe delivery, and postnatal care.There were three major findings. First, the increase in utilisation of all three maternal healthcare services between the two rounds was remarkably higher among illiterate or less educated and poor women. This documents the effect of the JSY scheme, where women with little or no education were motivated to utilise maternal health care services.Reducing disparitiesSecondly, the usage of all three maternal healthcare services by the OBC, Dalit, Adivasis and Muslim women increased between the surveys. The study found that after the implementation of the JSY, there was generally a narrowing of the gap between the less educated and more educated women and between the poorer and richer women.It was found in the survey that women in their early 20s were more likely to avail of all three maternal health care services as compared to their older women. Also, the incidence of women availing maternal healthcare decreases with the increase in the number of children.Note that inequality in access to maternal care persists.

The study, however, notes that the gap in access to healthcare between the marginalised group of women and those who are financially better-off has narrowed with JSY.High incidence of maternal mortality continue to plague India. As per the latest Lancet series on maternal health, India accounted for 15 per cent of the total maternal deaths in the world in 2015 — second only to Nigeria — with 45,000 women dying during pregnancy or childbirth.

24.Who will regulate pension products?The Finance Ministry has set up a high-level committee to consolidate the regulation of pension products that is currently being done by three different watchdogs including the insurance and stock market regulators.Creating confusionWhile the Pension Fund Regulatory and Development Authority (PFRDA) was set up with the intent of regulating all pension products, insurers and mutual funds continue to sell pension products outside its watch, creating confusion among consumers looking to build a retirement nest egg. The move to set up a panel was made after the issue was flagged at recent meetings of the Financial Stability and Development Council chaired by Finance Minister.Pension products floated by insurance companies come under the purview of the Insurance Regulatory and Development Authority (IRDA) while those sold by mutual funds are overseen by the SEBI.Their attention would be on mutual funds and capital markets, and IRDA’s focus would be more on insurance. Pensions would be an incidental thing for them. The Centre has formed a committee to look into the issue of bringing these companies which are offering pension plans under the purview of PFRDA, the committee has been set up, and deliberations are yet to get under way.The amounts in question are sizeable. IRDA had Rs.3.9 lakh crore in pension, general annuity, and group superannuation funds, and Rs.22.5 lakh crore in unit-linked funds, some of which also have a pension component, as of March 31, 2015. The two main pension plans operated by mutual funds regulated by SEBI — UTI and Franklin Templeton — manage about Rs.2,400 crore. The total corpus under the National Pension Scheme (NPS) is about Rs.1.45 lakh crore.The PFRDA Act says it will be the pension regulator in the country.Barring EPFO (Employees’ Provident Fund Organsiation), they are supposed to be the regulator for the entire pension industry in the country. But the ground level reality is that the schemes floated by insurance companies and mutual funds still exist and are not regulated by them.The committee to be formed by the Department of Financial Services, would have representatives from all financial sector regulators — SEBI, IRDA, RBI and PFRDA.

25.India’s Biggest Debit Card Fraud In Indian banking’s biggest security breach, 32 lakh debit were cards `compromised’ by cyber malware attack on ATM systems.Though this is just about half a percent of total cards issued in the country, this could be the biggest security breach in the Indian banking industry.The payment systems of Hitachi Payment Services were infested with malware that helped miscreants to steal personal information and do fraudulent transactions.National Payments Corporation of India which oversights payments done in India found the malware induced security breach.Malware is malicious software including viruses, worms, trojans, ransomware, spyware and other programmes that damages computer systems at ATMs or bank servers, and allows fraudsters to access confidential debit card data. In this case, swiping a card at an allegedly compromised ATM allowed the data on the card to be transmitted to the fraudsters, who then misused it for fraudulent transactions.The council of Payment Card Industry Data Security Standard (PCIDSS), an international body that sets data security standards, has ordered a forensic audit of the data breach in India.According to the RBI’s draft circular on customer protection, a customer is not liable for a third-party breach, or where negligence or fraud is on the part of the bank, if the customer informs the bank of the fraud within 3 working days of receiving a communication from the bank on any unauthorised transaction.In June 2016, RBI issued instructions on a cyber-security framework in banks, asking them to put in place a board-approved cyber security policy, prepare a cyber-crisis management plan, and make arrangement for continuous surveillance. The circular also asked banks to share unusual cyber security incidents with RBI. Apart from this, RBI has set up an expert panel on IT Examination and Cyber Security to provide assistance in banks’ cyber security initiatives, and proposes to cover, by 2017-18, all banks under a detailed IT examination programme that it launched in October 2015.

26.Jharkhand 1st State to launch DBT in Kerosene Jharkhand has become the first state in the country to implement Direct Benefit Transfer (DBT) in Kerosene in four identified districts namely, Chatra, Hazaribagh, Khunti and Jantara from 1st October, 2016. Under the DBTK Scheme, PDS kerosene is being sold at non-subsidised price, and, subsidy, as admissible, is being transferred to consumers directly into their bank accounts. This initiative of the governments is aimed at rationalising subsidy, based on the approach to cut subsidy leakages but not subsidy per se.

27.PM launches National SC/ST hub and Zero Defect – Zero Effect SchemeThe Prime Minister launched the National SC/ST hub, and the Zero Defect, Zero Effect (ZED) scheme for MSMEs at Ludhiana in Punjab. The ZED scheme is an integrated and holistic certification system that will account for quality, productivity, energy efficiency, pollution mitigation, financial status, human resource and technological depth including design and IPR in both products and processes. The parameters of the scheme will cover all aspects of the existing schemes of Ministry of MSME: Quality Management System (QMS) / Quality Technology Tools (QTT), Lean Manufacturing Competitiveness Programme (LMCS), Design Clinic and Technology and Quality Up-gradation (TEQUP), and Building Awareness on Intellectual Property Rights (IPR).The National SC/ST Hub, under the MSME Ministry, was announced in the Budget. It will work towards strengthening market access/linkage, monitoring, capacity building, leveraging financial support schemes and sharing industry best practices.Earlier, the Prime Minister dedicated to the nation three hydropower projects – namely, Koldam, Parbati and Rampur in Himachal Pradesh.

28.Ude Desh Ka Aam Naagrik: “UDAN” Launched The Ministry of Civil Aviation launched Regional Connectivity Scheme “UDAN” in New Delhi. UDAN is an innovative scheme to develop the regional aviation market. It is a market-based mechanism in which airlines bid for seat subsidies. This first-of-its-kind scheme globally will create affordable yet economically viable and profitable flights on regional routes so that flying becomes affordable to the common man even in small towns. The scheme UDAN envisages providing connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports. The scheme would be in operation for a period of 10 years. The UDAN scheme seeks to provide connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports. This first-of-its-kind scheme will ensure affordability, connectivity, growth and development. It aims to increase ticketing volume from 80 million to 300 million by 2022. Under it regional connectivity will be developed on market-based mechanism under which Airlines will bid for seat subsidies. Airline operators will bid for up to 40 subsidised seats and minimum seats will be 9.There will be 50% seats on market based pricing. It will create affordable yet economically viable and profitable flights on regional routes so that flying becomes affordable to the common man even in small towns.

Under it, airlines will have complete freedom to enter into code sharing with larger airlines for connectivity and they will be exempted from various airport charges.The fare for a one hour journey of appx. 500 km on a fixed wing aircraft or for a 30 minute journey on a helicopter would now be capped at Rs. 2,500, with proportionate pricing for routes of different stage lengths / flight duration.The partner State Governments (other than North Eastern States and Union Territories where contribution will be 10 %) would contribute a 20% share to this fund.A Regional Connectivity Fund would be created to meet the viability gap funding requirements under the scheme. The RCF levy per departure will be applied to certain domestic flights. Airport operators shall not impose Landing and Parking charge and Terminal Navigation Landing Charges in addition to discounts on Route Navigation Facility Charges.

29.Alleviating Energy Poverty through Solar PowerSolar power has enormous capacity to generate power without causing pollution; it is one of the main sources of clean energy and alternate to burning fossil fuels. The installation of captive solar power plants, roof top solar systems is essentially geared towards connecting to the existing countrywide power grids. In contrast to this the off grid systems are those which utilises the solar energy at decentralised household or village level.Solar Home Systems, with solar panels to generate power for individual homes is an easy way to connect those who are deprived of power connection, it can also act as stand by during the severe power cuts in the countryside.The installation of solar irrigation pumps is another off grid power initiative that is being successfully tried out in many parts of the country. Though the initial capital costs are high, over the years it pays back the owner through provision of cheap uninterrupted power over with very little maintenance costs. This has the potential to resolve the power crisis as well as provide energy and food security to the farming community.Providing cheap solar lanterns has the possibility to replace the fossil based polluting kerosene that is used for lighting in many parts of rural India. Similarly, micro grids supported with battery can store the power. This can provide easy access to recharge mobile sets and power the telecommunication systems in remote hill areas. Solar powered refrigeration systems in Primary Health Centres can store the lifesaving medicines in the countryside.The solar driers for agricultural processing and industrial use, and water heating systems are already in use that needs to be supported under the ongoing solar mission. These systems lead to reduction in consumption of conventional energy resulting in saving the energy.Realising the importance of solar power, the Prime Minister has given the approval for increasing the capacity of solar mission from 22 giga watts (GW) to 100 GW to be achieved

by the 2022. The Government of India has set a detail road map to achieve this through roof top solar generation of 40 GW and the medium decentralised off grid connection of 60 GW.In order to meet the target, an investment of Rs 60000 crores is being made that is bound to unleash enormous opportunity to entrepreneurs who wants to take advantage of the lucrative solar market. India is the only country in the world that has attracted of US dollars one billion from The World Bank to realise the goal of harnessing solar power.Recognising this factor the global leaders in solar power are keen to invest in India to harness the ever increasing solar market. Already 40 companies have come forward to install solar home systems. The high initial costs of these systems needs to be shared by the financial institutions, especially banks in the rural areas. Policy support towards this will pave way for a sustained growth of off grid solar market with large customer base willing to use the products to meet the home needs. Like any consumer goods, the people would be willing to purchase the solar products across the counter with assured follow up services over the years.In order to achieve the target of off grid solar systems will require the skilled manpower and barefoot technicians in rural areas to provide maintenance and services. The skill development programme launched by Government of India needs to be linked to building the capacities of rural youth that can provide livelihood opportunities and sustained source of income. The potential of creating 1 million green jobs to cater to the needs of solar energy as technicians will regenerate the rural economy.Accessing energy is strongly linked to achieving millennium development goals. The lack of accesses to modern forms of energy leads to energy poverty. In India 360 million people live without grid connectivity, suffering energy poverty.The Solar Mission launched by Government of India has the capacity to alleviate this population above energy poverty and provide regular and clean source of renewable power.

30.Governmental Initiatives for Meeting Nutritional NeedsArticle 47 of the Constitution documents that it is “duty of the state to raise the level of nutrition and the standard of living and to improve public health”.Nutrition constitutes the very foundation of human development by imparting immunity and, thus, reducing morbidity, mortality and disability. In addition, it promotes lifelong learning capacities and enhanced productivity. Malnutrition, on the other hand, tends to lower IQ and impairs cognitive ability of the children, thus, affecting their school performance and productivity in later life. Low-birth weight babies not only have impaired immune function but are at a greater risk of non-communicable diseases during their adulthood.Global Nutrition Report-2016 clearly indicates how India still lags behind in tackling malnutrition effectively. Malnutrition manifests in the form of stunting, wasting, micronutrient deficiencies and overweight/obesity. In terms of stunting, India ranks 114th out of 132 nations (incidence: 38.7%) while for wasting, it is 120th among 130 countries

(incidence: 15.1%). Regarding anaemia prevalence among women of reproductive ages, India ranks 170th out of 185 countries (incidence: 48.1%) – and this is a matter of grave concern.The Integrated Child Development Services (ICDS) scheme was launched in 1975. ICDS is one of the world’s largest and most unique outreach programme for early childhood care and development and covers all the districts and blocks in the country. Similarly, the Mid- Day Meal Scheme was universalized in 1995. However, there is a lack of multisectoral coordination which is most essential to address the intergenerational and multifaceted nature of malnutrition.Similarly, although, globally it is well acknowledged that focusing on the first 1000 days (conception to 2 years post-partum) is a critical window of opportunity to address child malnutrition; in India, focus of the nutrition programmes has chiefly been postbirth. Researches indicate that 50% of the growth failure accrued by the age of 2 years occurs in the womb itself, mainly owing to poor maternal nutrition –during and prior to pregnancy. Therefore, maintaining an adequate nutritional status (pre-conception and first trimester when majority of the women may not even be aware of their pregnancy) is rather crucial for appropriate foetal development. Undernourished girls have greater chances of becoming undernourished mothers as they inevitably bear low birth weight babies, and thus, perpetuate an intergenerational cycle of malnutrition. This gets further compounded in adolescent mothers, who simultaneously carry the burden of two physiological stages (adolescence and pregnancy). This also holds true for closely spaced high parity pregnancies – often exacerbating nutrition deficits, which are passed on to their offspring/s.For inclusive growth, under the eleventh 5year plan, universalization of ICDS coupled with setting up of miniAnganwadi centers in deprived areas was undertaken; yet, there is a need to further strengthen ICDS in poorperforming states based on the lessons learnt from various successful models. Overhauling of ICDS by the Ministry of WCD (May 2016) is expected to improve nutrition scenario of the country.The Government is now working on close Monitoring of the Nutrition programmes by digitisation of the Anganwadis. This is expected to turnaround the entire system since it will help in real time monitoring of nutrition status of each child and take up immediate interventions wherever required. Similarly, diarrhoea has a direct impact on nutrition status of a child. Constructing toilets and providing clean drinking water are being taken up by the Government on a war footing to provide clean living conditions and good health to one and all.In 2013, government passed the food security bill entitling 5 kg food grain/person/month at highly subsidised rates. It is commendable that food and nutrition security is being promoted through several national level programmes like TPDS, MGNREGA, ICDS and MDMS. Further, programmes like Swachh Bharat, ‘Beti Bachao, Beti Padao’ address critical

nutritionsensitive issues. Fortification of food items especially those being distributed through the PDS is also being taken up to address the issue of malnutrition in the country.A high level responsiveness is mandated to effectively manage the emergency situations like droughts, floods, and infection. It is important that nutrition related data are collected more frequently (currently gathered once in 5-7 years) to reflect the changing nutritional needs as well as impact of the nutrition interventions. It is important that a national nutrition strategy is designed to ensure that under-nutrition gets utmost priority. India’s nutrition challenges call for urgent action for ensuring faster, gender-sensitive, inclusive and sustainable growth.

31.Rail, general budgets mergedThe government ended a 92-year-old British era practice by merging the railway budget with the general budget.The government also in-principle decided to advance the presentation of the general budget from the last day of February to the first week of the month.By advancing the budget, the government is looking to ensure that Parliament cleared the Finance and Appropriation Bills before the end of the fiscal on March 31, enabling ministries to kick off spending from April.It will also help companies and individuals to plan their taxes better. Currently, the budget exercise, which involves parliamentary clearance and notification by the President, is completed around the middle of May and govern ment departments begin spending from June. Apart from the rates, other service tax changes also kick in from the third month of the financial year.Though a separate railway budget has been junked, “functional autonomy of the Railways will be maintained.There will also be a separate discussion on railway expenditure each year in Parliament. A separate railway budget followed the recommen dations of the Actworth Committee in 1924, which had felt that development of the railways was hostage to vagaries of the general budget. A panel headed by Niti Aayog member Bibek Debroy had recommended scrapping the practice of a separate railway budget.The decision came with a relief for the Railways, which will not have to shell out an annual dividend of around Rs 10,000 crore, leaving it with more resources to spend on ad ding capacity and modernising its creaky infrastructure.In 1999, the Atal Bihari Vajpayee regime had moved the presentation of the budget to 11 am instead of the British era practice of 5pm.It is a reviewThere have been sporadic calls in the past for doing away with a separate Railway Budget for various reasons, but the matter was never pursued seriously.

One of the more publicised reasons is that it will free the Railways of the obligation of paying the annual dividend, as mentioned earlier. This is only partly true. The dividend is paid not only on the budgetary support extended during a year but also on the total “capital at charge” which includes the gross budgetary support (GBS) of previous years. By this merger, a “loan-in-perpetuity” is converted to a grant. Shorn of officialese, it is a loan waiver; and loan waivers are granted to individuals or institutions in extreme financial distress — something not to go to town about.In popular imagination, the Railway Budget was seen as a grand spectacle, with the Railway Minister using it as a platform for populism and political grandstanding. What is not appreciated is that the Budget is not merely a statement of allotment of funds to various projects and programmes, unlike other ministries, but comprises a fairly detailed performance review, physical and financial, of the previous year and prospects for the current (Budget) year. Perhaps nowhere in the world is a political functionary called upon to present a financial report card of the country’s largest public undertaking in the full glare of publicity. A separate post-Budget discussion in Parliament on the Railways, as indicated by the Finance Minister, is no substitute, as the focus most likely will be on allotments to various projects, not on financial performance.Talking of populism, the recent announcement by the Finance Minister of the proposal to set up a new Railway zone to placate a State government as part of a “special package” is proof that it is possible to be “populist” outside a separate budget.Why should there be a separate budget for the Railways? The fact is that the Railways is indeed unlike any other Central ministry in size and scope: It is an operational ministry; it earns as well as spends, unlike other ministries that only spend. Its gross earnings (Rs.1.68 lakh crore in 2015-16) are among the highest for any Indian organisation, public or private; it has a staff strength (13.2 lakh) that exceeds that of the Indian Army; it fully meets the pension liabilities of its retired employees (13.8 lakh) out of its own earnings unlike other ministries; it follows an accounting practice, though not up to the standards of a purely commercial establishment, that has a number of features of a commercially-run organisation. So, if the Railways is to be treated like other ministries, will the government also fund its pension liabilities which are estimated to be about Rs.45,500 crore in 2016-17? That should be some “savings” indeed!Budget merger may need Parliament’s nodThe Centre may have to pass a resolution in Parliament in the upcoming session to finally put an end to the practice of presenting a separate Rail Budget.

Although the Constitution does not provide for a separate Rail Budget, it was separated from general finances after a resolution was passed in the Legislative Assembly (now Parliament) based on the recommendations made by the Acworth Committee in 1921.Based on the recommendations made by Acworth Committee, it was decided that the separation of Railway Finances be effected by means of a Convention to be laid before the Legislative Assembly (now Parliament), in the form of a resolution, and that the Assembly be asked to agree to it on conditions of anonymity. The matter was placed before the House, which voted the Convention resolution of 1924.Unilateral stepPresentation of a separate Budget is more of a matter of Convention than any rule. Government decided to introduce a resolution to do this.The decision by the Union Cabinet to merge the Railway Budget with the General Budget is a unilateral step taken without a discussion in parliament. One of the objects we have most at heart in putting these proposals before this House is to establish that principle, the government had stated when the proposal for resolution was presented to 1924 Assembly.

32.Centre eases norms to help State join UDAYPaving the way for Tamil Nadu to join the Ujwal Discom Assurance Yojana (UDAY) meant for achieving financial turnaround of power distribution companies in three years, the Centre has conceded one of the prime demands of the State that there should be no insistence on the quarterly revision of power tariff.Centre has agreed in principle to the State’s demand and it has indicated to the State that the revision can even be annual.Prior to joining the scheme, every State is required to sign a memorandum of understanding (MOU) with the Centre. Now, the Union government has conveyed to Tamil Nadu that there is room for flexibility in the inclusion or exclusion of some aspects of the proposed MOU as the situation varies from State to State.By joining the scheme, the State will have to bear 75 per cent of the debt of the TANGEDCO. Since the scheme pertains to distribution companies, the debt component for distribution comes to Rs, 43,540 crore out of Rs. 81,782 crore. The State government’s commitment will be Rs. 32,655 crore. The overall debt of the TANGEDCO includes Rs. 6,223 crore from the State government.The main benefit for the TANGEDCO will be better cash flow as its debt burden will get absorbed by the State government.

To cover the debt to be taken over by the State government, bonds for 10 years will be issued and they will carry approximately 8 per cent interest, 3 per cent points less than the average rate of interest at which the power utility is repaying its loans. Besides, more coal will be made available.The other important demand of the State is for a 15-year-long grace period for keeping its fiscal deficit within 3 per cent of the Gross State Domestic Product whereas the Centre was offering only a two-year-long grace period.

33.CPCRI, 100 YearsThe Coconut Research Station at Kasaragod in Kerala was initially established in 1916 by the then Government of Madras and subsequently it was taken over by the Indian Central Coconut Committee in 1948.Central Plantation Crops Research Institute (CPCRI) was established in 1970 as one of the agricultural research institutes in the National Agricultural Research System (NARS) under the Indian Council of Agricultural Research (ICAR).Central Coconut Research Station (CCRS) at Kayamkulam was established in 1948, as a field station of the erstwhile Agricultural Research Laboratory. Presently, it is a regional station of the Central Plantation Crops Research Institute (CPCRI)Under Coconut Technology Mission nearly 402 coconut processing units have been set up where every year 242 crore coconuts are processed. A headquarter of Coconut Development Board has been established at Cochin in 1981. Coconut Development Board (CDB) is a statutory body established under the Ministry of Agriculture.

34.Sports Sector Gets the Infrastructure Status For addressing the issue of deficit of sports infrastructure in the country, the Ministry of Youth Affairs & Sports Affairs had moved a proposal for inclusion of Sports in the harmonized master list of infrastructure sub-sectors so that the sports sector becomes eligible for obtaining long term financial support from banks and other financial institutions on the same principle as is available to other infrastructure projects.The Ministry of included it under the Harmonized Master List of Infrastructure Subsectors. It includes the provision of Sports Stadia and Infrastructure for Academies for Training / Research in Sports and Sports-related activities.

35.Project SAKSHAM The Cabinet Committee on Economic Affairs has approved ‘Project SAKSHAM’, a New Indirect Tax Network (Systems Integration) of the Central Board of Excise and Customs (CBEC). It will help inimplementation of Goods and Services Tax (GST),

extension of the Indian Customs Single Window Interface for Facilitating Trade (SWIFT) and • other taxpayer-friendly initiatives under Digital India and Ease of Doing Business of Central Board of Excise and Customs. The implementation strategy for the project will be to ensure readiness of CBEC’s IT systems by April, 1, 2017, when GST is to be introduced. The upgrade of the IT systems will be carried out while keeping the existing Tax-payer services running.

36.Varistha Pension Bima Yojana The Union Cabinet has given its ex-post facto approval for the Varishtha Pension Bima Yojana (VPBY) launched in 2003 and Varistha Pension Bima Yojana (VPBY) launched in 2014.The Schemes are implemented through Life Insurance Corporation (LIC) of India, and the difference between the actual yield earned by LIC on the funds invested under the Scheme and the assured return committed by the Government is paid as subsidy to LIC. Both are pension schemes intended to give an assured minimum pension to the Senior Citizens based on an assured minimum return on the subscription amount. The pension is envisaged until death from the date of subscription, with payback of the subscription amount on death of the subscriber to the nominee.

37.Gokul Gram ProjectThe Union Agriculture and Farmers Welfare Minister laid foundation stone of first Gokul Gram Project in Mathura. The government has prepared a plan to establish 14 Gokul Gram in the country under Gokul Mission. Gokul Gram will work as a centre for development of native breed cattle and it will work to supplement resources of cattle of farmers in breeding areas.

38.Mission Parivar Vikas Mission Parivar Vikas to be launched in 145 high focus districts having the highest total fertility rates in the country. These 145 districts are in the seven high focus, high TFR states of Uttar Pradesh, Bihar, Rajasthan, Madhya Pradesh, Chhattisgarh, Jharkhand and Assam that constitute 44% of the country’s population. The main objective of ‘Mission Parivas Vikas’ will be to accelerate access to high quality family planning choices based on information, reliable services and supplies within a rights-based framework.These 145 districts have been identified based on total fertility rate and service delivery for immediate, special and accelerated efforts to reach the replacement level fertility goals of 2.1 by 2025.

39.GST Council and its Secretariat The Union Cabinet has approved setting up of GST Council and setting up its Secretariat as per the following details: Creation of the GST Council as per Article 279A of the amended Constitution;Creation of the GST Council Secretariat, with its office at New Delhi;Appointment of the Secretary (Revenue) as the Ex-officio Secretary to the GST Council;Inclusion of the Chairperson, Central Board of Excise and Customs (CBEC), as a permanent invitee (non-voting) to all proceedings of the GST Council;Create one post of Additional Secretary to the GST Council in the GST Council Secretariat (at the level of Additional Secretary to the Government of India), and four posts of Commissioner in the GST Council Secretariat (at the level of Joint Secretary to the Government of India).The Cabinet also decided to provide for adequate funds for meeting the recurring and non-recurring expenses of the GST Council Secretariat, the entire cost for which shall be borne by the Central Government. The GST Council Secretariat shall be manned by officers taken on deputation from both the Central and State Governments.BackgroundThe Constitution (One Hundred and Twenty-second Amendment) Bill, 2016, for introduction of Goods and Services tax in the country was accorded assent by the President and the same has been notified as the Constitution (One Hundred and First Amendment) Act, 2016. As per Article 279A (1) of the amended Constitution, the GST Council has to be constituted by the President within 60 days of the commencement of Article 279A. The notification for bringing into force Article 279A with effect from 12th September, 2016 was issued.As per Article 279A of the amended Constitution, the GST Council which will be a joint forum of the Centre and the States, shall consist of the following members: -a) Union Finance Minister : Chairpersonb) The Union Minister of State, in-charge of Revenue of finance - Memberc) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government - MembersAs per Article 279A (4), the Council will make recommendations to the Union and the States on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws, principles that govern Place of Supply, threshold limits, GST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters, special provisions for certain States, etc.

40.National Apprenticeship Promotion Scheme National Apprenticeship Promotion Scheme has been notified for the first time to offer financial incentives to employers. The Scheme has an outlay of Rs. 10,000 crore with a target of 50 Lakh apprentices to be trained by 2019-20. 25% of the prescribed stipend payable to an apprentice would be reimbursed to the employers directly by the Government of India. The scheme also supports basic training, which is an essential component of apprenticeship training by sharing of basic training cost with basic training providers in respect of apprentices who come directly to apprenticeship without any formal trade training (fresher apprentices).