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India failed to achieve MDG
India’s fight against poverty, child mortality and open defecation, among other key areas, needs to be intensified, says UN’s Millennium Development Goals report 2014. According to the report, “In 2010, one-third of the world’s 1.2 billion extreme poor lived in India alone.”
The World Bank also predicts that, by 2015, 40 per cent of the estimated 970 million people living on less than $1.25 a day will be from Southern Asia.
In another depressing statistic, the UN report said, “India had the highest number of under-five deaths in the world in 2012, with 1.4 million children dying before reaching their fifth birthday.”
This is despite the fact that globally the mortality rate for children under-five has dropped by almost 50 per cent in 2012.
Sanitation is another area which brings woe for India. It retains its infamous status as having the biggest population without access to proper toilets. “Close to 60 per cent of the one billion people practising open defecation live in India,” the UN report notes.
Though the UN’s MDG report is more region specific, these references have been made specifically to India, which is the largest country of the South Asia region. This region itself has fared poorly on most parameters of development.
For example, the report notes that in 2012 the prevalence of under-nutrition of children was highest in South Asia, with 30 per cent of under-five children being underweight. The region also accounted for 24 per cent of all maternal deaths worldwide in 2013.
Millennium development goals
The Millennium Development Goals (MDGs) are eight international development goals that were established following the Millennium Summit of the United Nations in 2000, following the adoption of the United Nations Millennium Declaration. All 189 United Nations member states at the time (there are 193 currently) and at least 23 international organizations committed to help achieve the following Millennium Development Goals by 2015:
India’s fight against poverty, child mortality and open defecation, among other key areas, needs to be intensified, says UN’s Millennium Development Goals report 2014. According to the report, “In 2010, one-third of the world’s 1.2 billion extreme poor lived in India alone.”
The World Bank also predicts that, by 2015, 40 per cent of the estimated 970 million people living on less than $1.25 a day will be from Southern Asia.
In another depressing statistic, the UN report said, “India had the highest number of under-five deaths in the world in 2012, with 1.4 million children dying before reaching their fifth birthday.”
This is despite the fact that globally the mortality rate for children under-five has dropped by almost 50 per cent in 2012.
Sanitation is another area which brings woe for India. It retains its infamous status as having the biggest population without access to proper toilets. “Close to 60 per cent of the one billion people practising open defecation live in India,” the UN report notes.
Though the UN’s MDG report is more region specific, these references have been made specifically to India, which is the largest country of the South Asia region. This region itself has fared poorly on most parameters of development.
For example, the report notes that in 2012 the prevalence of under-nutrition of children was highest in South Asia, with 30 per cent of under-five children being underweight. The region also accounted for 24 per cent of all maternal deaths worldwide in 2013.
Millennium development goals
The Millennium Development Goals (MDGs) are eight international development goals that were established following the Millennium Summit of the United Nations in 2000, following the adoption of the United Nations Millennium Declaration. All 189 United Nations member states at the time (there are 193 currently) and at least 23 international organizations committed to help achieve the following Millennium Development Goals by 2015:
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To eradicate extreme poverty and hunger
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To achieve universal primary education
§
To promote gender equality and empower women
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To reduce child mortality
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To improve maternal health
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To combat HIV/AIDS, malaria, and other diseases
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To ensure environmental sustainability
§
To develop a global partnership for development
Each
goal has specific targets and dates for achieving those targets. To accelerate
progress, the G8 Finance Ministers agreed in June 2005 to provide enough funds
to the World Bank, the International Monetary Fund (IMF) and the African
Development Bank (AfDB) to cancel $40 to $55 billion in debt owed by members of
the Heavily Indebted Poor Countries (HIPC) to allow them to redirect resources
to programs for improving health and education and for alleviating poverty.
§
India’s urban population increased
According to Urban Development Minister Venkaia Naidu, India’s urban population increased from 27.80 per cent of the total population in 2001 to 31.10 per cent in 2011. Southern States and Union Territories (UTs) are leading the pack in the country’s urbanization.
Four Southern States and six Union Territories along with Gujarat, Goa, Haryana, Nagaland, Sikkim and Tripura have led this growth.
As against the national average, the urban population increased by 21.70 per cent in Kerala, 6.10 per cent in undivided Andhra Pradesh, 4.70 per cent in Karnataka and 4.40 per cent in Tamil Nadu.
In UTs, apart from Pondicherry which reported 1.70 per cent higher urbanization, all others saw growth higher than the national average.
Other States which surpassed national average include Goa (22.40 per cent), Sikkim (14.10 per cent), Nagaland (10.70 per cent), Haryana (6.0 per cent), Gujarat (5.20 per cent), Uttarakhand (4.50 per cent), West Bengal (3.90 per cent) and Punjab (3.60 per cent).
According to Urban Development Minister Venkaia Naidu, India’s urban population increased from 27.80 per cent of the total population in 2001 to 31.10 per cent in 2011. Southern States and Union Territories (UTs) are leading the pack in the country’s urbanization.
Four Southern States and six Union Territories along with Gujarat, Goa, Haryana, Nagaland, Sikkim and Tripura have led this growth.
As against the national average, the urban population increased by 21.70 per cent in Kerala, 6.10 per cent in undivided Andhra Pradesh, 4.70 per cent in Karnataka and 4.40 per cent in Tamil Nadu.
In UTs, apart from Pondicherry which reported 1.70 per cent higher urbanization, all others saw growth higher than the national average.
Other States which surpassed national average include Goa (22.40 per cent), Sikkim (14.10 per cent), Nagaland (10.70 per cent), Haryana (6.0 per cent), Gujarat (5.20 per cent), Uttarakhand (4.50 per cent), West Bengal (3.90 per cent) and Punjab (3.60 per cent).
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TRAI Bill gets President’s assent
A bill to remove legal hurdles in the appointment of former TRAI chief Nripendra Misra as Principal Secretary to the Prime Minister has now become an Act with President Pranab Mukherjee giving his assent. The President gave his assent to the Telecom Regulatory Authority (Amendment) Bill, 2014 on July 17, officials said.
The Procedure of Bill becoming an Act
A Bill is a draft Act of Parliament presented to either House by one of its Members. Before a Bill can become an Act and therefore the law of the land, it must pass through a number of similar stages in each House, and then receive Royal Assent.
There are three 'readings' of a Bill in its progress through each House.
Introduction and First Reading
A Member's request for leave to introduce a Bill appears on the Notice Paper on the next sitting day. On the day it is to be considered the Member concerned seeks leave which is usually agreed to without discussion. The Member then presents to the House a copy of the Bill, which is 'read' a first time.
One special class of Bills must be mentioned. These are 'Money Bills': Bills which appropriate revenue or other public money, or deal with taxation, or the raising, guarantee or repayment of any loan. These must be introduced in the House of Assembly first, as the Legislative Council has restricted powers in relation to money matters.
Second Reading
After the first reading in the Originating House, the second reading may be moved immediately or be taken into consideration on a future day.The second reading is acknowledged to be the most important stage of a Bill, for it is here that the principles of the Bill are agreed to or rejected. To commence the second reading stage the Minister or private Member in charge of the Bill will rise and move 'That this Bill now be read a second time'. The Member will then proceed to make their main speech in favour of the Bill. This is known as the second reading speech. The Member will explain the reasons for introducing the Bill and outline the principles of the Bill and its benefits to society in general.
The second reading debate is closed when the Mover replies to the debate. The question is then put 'That this Bill be now read a second time' and submitted to the House by the Presiding Officer for its decision. If agreed the House of Assembly may proceed directly to the third reading but if there are tabled amendments or if Members wish to raise questions about the Bill, it goes through a Committee stage first.
Committee Stage
The common conception of a committee is that of a small group appointed by a larger group. But when the Houses are 'in Committee', it means all the Members. When a Bill is to be considered in a Committee of the whole House of Assembly, the Speaker leaves the Chair
The purpose of the Committee stage is to examine the Bill in detail, and make amendments where considered by the majority to be necessary.
Third Reading
The third reading is also an important stage of the Bill, because Members now decide whether the Bill agreed to in the Committee stage should be finally approved. Often the third reading stage is just a formality with little if any debate because the details have been clarified and agreed at the second reading or Committee stages.
The rules governing the third reading are similar to those which apply to the second reading. However, the debate on the third reading of a Bill is more restricted and cannot go beyond what is actually contained in the Bill as it emerged from the Committee stage. Agreement to the third reading completes the passage of the Bill through the House.
When a House has agreed to the Bill, it is sent by written message signed by the Presiding Officer to the other House for its concurrence. The Bill again goes through three readings, with a Committee stage between the second and third readings, before being passed.
When a Bill has finally passed both Houses, 'Royal Arms' copies are printed, certified by the Presiding Officer and the Clerk of the House in which the Bill originated, and then presented by that Presiding Officer to the Governor for assent. The Governor assents to Bills in Executive Council in the name, and on behalf, of the Sovereign.
The Governor's signature and the impress of the public seal of the State are necessary formalities which represent the final stages in converting a Bill into an Act of Parliament. TRAI Bill, initially promulgated in the form of Ordinance and later it became Law
A bill to remove legal hurdles in the appointment of former TRAI chief Nripendra Misra as Principal Secretary to the Prime Minister has now become an Act with President Pranab Mukherjee giving his assent. The President gave his assent to the Telecom Regulatory Authority (Amendment) Bill, 2014 on July 17, officials said.
The Procedure of Bill becoming an Act
A Bill is a draft Act of Parliament presented to either House by one of its Members. Before a Bill can become an Act and therefore the law of the land, it must pass through a number of similar stages in each House, and then receive Royal Assent.
There are three 'readings' of a Bill in its progress through each House.
Introduction and First Reading
A Member's request for leave to introduce a Bill appears on the Notice Paper on the next sitting day. On the day it is to be considered the Member concerned seeks leave which is usually agreed to without discussion. The Member then presents to the House a copy of the Bill, which is 'read' a first time.
One special class of Bills must be mentioned. These are 'Money Bills': Bills which appropriate revenue or other public money, or deal with taxation, or the raising, guarantee or repayment of any loan. These must be introduced in the House of Assembly first, as the Legislative Council has restricted powers in relation to money matters.
Second Reading
After the first reading in the Originating House, the second reading may be moved immediately or be taken into consideration on a future day.The second reading is acknowledged to be the most important stage of a Bill, for it is here that the principles of the Bill are agreed to or rejected. To commence the second reading stage the Minister or private Member in charge of the Bill will rise and move 'That this Bill now be read a second time'. The Member will then proceed to make their main speech in favour of the Bill. This is known as the second reading speech. The Member will explain the reasons for introducing the Bill and outline the principles of the Bill and its benefits to society in general.
The second reading debate is closed when the Mover replies to the debate. The question is then put 'That this Bill be now read a second time' and submitted to the House by the Presiding Officer for its decision. If agreed the House of Assembly may proceed directly to the third reading but if there are tabled amendments or if Members wish to raise questions about the Bill, it goes through a Committee stage first.
Committee Stage
The common conception of a committee is that of a small group appointed by a larger group. But when the Houses are 'in Committee', it means all the Members. When a Bill is to be considered in a Committee of the whole House of Assembly, the Speaker leaves the Chair
The purpose of the Committee stage is to examine the Bill in detail, and make amendments where considered by the majority to be necessary.
Third Reading
The third reading is also an important stage of the Bill, because Members now decide whether the Bill agreed to in the Committee stage should be finally approved. Often the third reading stage is just a formality with little if any debate because the details have been clarified and agreed at the second reading or Committee stages.
The rules governing the third reading are similar to those which apply to the second reading. However, the debate on the third reading of a Bill is more restricted and cannot go beyond what is actually contained in the Bill as it emerged from the Committee stage. Agreement to the third reading completes the passage of the Bill through the House.
When a House has agreed to the Bill, it is sent by written message signed by the Presiding Officer to the other House for its concurrence. The Bill again goes through three readings, with a Committee stage between the second and third readings, before being passed.
When a Bill has finally passed both Houses, 'Royal Arms' copies are printed, certified by the Presiding Officer and the Clerk of the House in which the Bill originated, and then presented by that Presiding Officer to the Governor for assent. The Governor assents to Bills in Executive Council in the name, and on behalf, of the Sovereign.
The Governor's signature and the impress of the public seal of the State are necessary formalities which represent the final stages in converting a Bill into an Act of Parliament. TRAI Bill, initially promulgated in the form of Ordinance and later it became Law
o
TRAI bill came through Ordinance
o
By promulgating an Ordinance, a few mandals in Khammam district
of Telangana were merged in Andhra Pradesh
o
In recent times, the NIrbhaya Act and Food Security, initially
came into existence through Ordinance
All
about Ordinance
Under the Constitution, the power to make laws rests with the legislature. However, in cases when Parliament is not in session, and ‘immediate action’ is needed, the President can issue an ordinance. An ordinance is a law, and could introduce legislative changes. After the ordinance is framed it is to be laid before Parliament within 6 weeks of its first sitting once the ordinance is laid in Parliament, the government introduces a Bill addressing the same issue. This Bill is supposed to highlight the reasons that necessitated the issue of the Ordinance. Thereafter, the Bill follows the regular law making process.
Under the Constitution, the power to make laws rests with the legislature. However, in cases when Parliament is not in session, and ‘immediate action’ is needed, the President can issue an ordinance. An ordinance is a law, and could introduce legislative changes. After the ordinance is framed it is to be laid before Parliament within 6 weeks of its first sitting once the ordinance is laid in Parliament, the government introduces a Bill addressing the same issue. This Bill is supposed to highlight the reasons that necessitated the issue of the Ordinance. Thereafter, the Bill follows the regular law making process.
o
President promulgates Ordinance under article 123
o
Governor of a state promulgates Ordinance under Article 213
§
UNAIDS report on AIDs
64 per cent of people living with HIV in India have no access to treatment, says a new report by UNAIDS, the United Nations Programme on HIV/AIDS. India has around 2.1 million people with HIV, which is the third largest number for any single country. More than half of all AIDS-related deaths in Asia are from India. Globally, three of every five people infected with HIV are not accessing antiretroviral therapy, says the UNIADS report. The proportion of people without access to treatment is as high as 80 per cent in Nigeria.
However, India saw a 38 per cent decline in AIDS-related deaths between 2005 and 2013, largely due to the scaling-up of access to HIV treatment, says the report. More than 7,00,000 people in the country were on antiretroviral therapy by the end of 2013, which is the second largest number of people on treatment among all countries.
64 per cent of people living with HIV in India have no access to treatment, says a new report by UNAIDS, the United Nations Programme on HIV/AIDS. India has around 2.1 million people with HIV, which is the third largest number for any single country. More than half of all AIDS-related deaths in Asia are from India. Globally, three of every five people infected with HIV are not accessing antiretroviral therapy, says the UNIADS report. The proportion of people without access to treatment is as high as 80 per cent in Nigeria.
However, India saw a 38 per cent decline in AIDS-related deaths between 2005 and 2013, largely due to the scaling-up of access to HIV treatment, says the report. More than 7,00,000 people in the country were on antiretroviral therapy by the end of 2013, which is the second largest number of people on treatment among all countries.
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Poor Health Care ups private spending
The per capita private expenditure on health is three to four times higher than per capita public expenditure in major states of country, there may be exception being Northeastern states and J & K, according to the ninth edition of the National Health Profile, 2013, released. According to Central Bureau of Health Intelligence under the Ministry of Health and Family Welfare
The per capita private expenditure on health is three to four times higher than per capita public expenditure in major states of country, there may be exception being Northeastern states and J & K, according to the ninth edition of the National Health Profile, 2013, released. According to Central Bureau of Health Intelligence under the Ministry of Health and Family Welfare
o
The expenditure on health in 2000 is 4.3% of GDP
o
The expenditure on health in 2010 is 3.7% of GDP
The
above statistics clearly shows that the expenditure has gone down in first
decade of this century.
Other points of report mentions that
Other points of report mentions that
o
Funds flow for health sector is maximum by Private which stands
at 71.62% as per 2008-09 estimates, where as public funds had accounted only
for 26.70%
o
Madhya Pradesh reported the maximum number of foeticide and
infanticide cases, with Uttar Pradesh in the second position followed by
Maharashtra.
o
Morbidity due to non-communicable diseases accounts for a large
share of the disease burden in India.
o
The number of cases of diabetes was estimated to be 3.1 crore in
2005 and expected to reach 4.6 crore in 2015.
o
In 2013, there were 3,94,982 accidental deaths and 1,35,445
suicides and the maximum number of suicide cases 46,635 was reported between
the age group 15-29 years.
o
Medical education infrastructure has shown rapid growth in the
last 20 years. There are 381 medical colleges and 19,817 hospitals with 6,
28,708 beds in the country.
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River linking needs 10 years: Union Minister
According to Union Minister for water resources, the interlinking of rivers can be achieved in 10 years
Interlinking
Interlinking is aimed transferring surplus water to deficit areas in the country. Interlinking helps to flood-prone areas and drought prone zones.
Interlinking of rivers was first proposed by Britain engineer Arthur Cotton
After India achieved independence in 1970, K.L. Rao proposed National water grid.
Need of interlinking
According to Union Minister for water resources, the interlinking of rivers can be achieved in 10 years
Interlinking
Interlinking is aimed transferring surplus water to deficit areas in the country. Interlinking helps to flood-prone areas and drought prone zones.
Interlinking of rivers was first proposed by Britain engineer Arthur Cotton
After India achieved independence in 1970, K.L. Rao proposed National water grid.
Need of interlinking
o
India receives about 4,000 cubic kilometers of rain annually, or
about 1 million gallons of fresh water per person every year.
o
The nation sees cycles of drought years and flood years, with
large parts of west and south experiencing more deficits and large variations
o
Despite abundant rains during July-September, some regions in
other seasons see shortages of drinking water. This excess-scarcity regional
disparity and flood-drought cycles have created the need for water resources
management. Rivers inter-linking is one proposal to address that need
o
Interlinking also helps for navigation. India needs
infrastructure for logistics and movement of freight. Using connected rivers as
navigation is a cleaner, low carbon footprint form of transport infrastructure,
particularly for ores and food grains
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India slipped in Global Innovation Index
India’s rank slipped in Global Innovation Index jointly published by Cornell University, INSEAD and the World Intellectual Property Organization. At present India stood at 76th position, a slip of 10 places from last year, in the annual Global Innovation Index (GII) survey for 2014.
The survey was made in 143 economies around the world, using 81 indicators to gauge innovation capabilities and results.
India is the worst performer among BRICS nations, with all the others improving their positions from that of the last year. China was the best among BRICS nations at 29th position, an improvement of six places. Russia went up 13 places at 49th rank. South Africa ranked 53rd, went up five places, while Brazil at 61st position, moved up three places.
Singapore (7th), Hong Kong(10th) and South Korea (16th ) are the only Asian economies in the top 20 in this year's Global Innovation Index, headed by Switzerland, the United Kingdom, Sweden, Finland, Netherlands, the United States, among others.
The India Chapter notes that the country scores with quality of its universities, IT services exports, and export of creative goods, but these are outweighed by weaknesses in its institutional pillars such as political stability, ease of starting a business, as well as human capital and research.
In fact, earlier this year in World Bank's "Doing Business Report" for 2014, India slipped three notches to 134th spot in a survey among 189 countries.
India’s rank slipped in Global Innovation Index jointly published by Cornell University, INSEAD and the World Intellectual Property Organization. At present India stood at 76th position, a slip of 10 places from last year, in the annual Global Innovation Index (GII) survey for 2014.
The survey was made in 143 economies around the world, using 81 indicators to gauge innovation capabilities and results.
India is the worst performer among BRICS nations, with all the others improving their positions from that of the last year. China was the best among BRICS nations at 29th position, an improvement of six places. Russia went up 13 places at 49th rank. South Africa ranked 53rd, went up five places, while Brazil at 61st position, moved up three places.
Singapore (7th), Hong Kong(10th) and South Korea (16th ) are the only Asian economies in the top 20 in this year's Global Innovation Index, headed by Switzerland, the United Kingdom, Sweden, Finland, Netherlands, the United States, among others.
The India Chapter notes that the country scores with quality of its universities, IT services exports, and export of creative goods, but these are outweighed by weaknesses in its institutional pillars such as political stability, ease of starting a business, as well as human capital and research.
In fact, earlier this year in World Bank's "Doing Business Report" for 2014, India slipped three notches to 134th spot in a survey among 189 countries.
§
Special Court for coal scam: Supreme Court
The Supreme Court on 18th July asked the chief justice of the Delhi High Court to select a judge from the higher judicial service to act as a special court in the coal allocation scam and related cases. The cases will involve the Prevention of Corruption Act, the Money Laundering Act, economic and other offences. The high court will communicate the name to the Supreme Court next Friday. It is the high court which has the power to select a special judge.
The Bench headed by Chief Justice R M Lodha also asked Common Cause, the Central Bureau of Investigation (CBI) and other parties in the case to name a special public prosecutor, similar to the arrangement made in the 2G spectrum scam a few years ago. One of the names proposed by the judges was former solicitor-general Gopal Subramanium, who almost made it to the Supreme Court bench recently.
Coal allocation scam or Coalgate, as referred by the media, is a political scandal concerning the Indian government's allocation of the nation's coal deposits to public sector entities (PSEs) and private companies by former Prime Minister Manmohan Singh. In a draft report issued in March 2012, the Comptroller and Auditor General of India (CAG) office accused the Government of India of allocating coal blocks in an inefficient manner during the period 2004–2009. Over the summer of 2012, the opposition BJP lodged a complaint resulting in a Central Bureau of Investigation probe into whether the allocation of the coal blocks was in fact influenced by corruption
The Supreme Court on 18th July asked the chief justice of the Delhi High Court to select a judge from the higher judicial service to act as a special court in the coal allocation scam and related cases. The cases will involve the Prevention of Corruption Act, the Money Laundering Act, economic and other offences. The high court will communicate the name to the Supreme Court next Friday. It is the high court which has the power to select a special judge.
The Bench headed by Chief Justice R M Lodha also asked Common Cause, the Central Bureau of Investigation (CBI) and other parties in the case to name a special public prosecutor, similar to the arrangement made in the 2G spectrum scam a few years ago. One of the names proposed by the judges was former solicitor-general Gopal Subramanium, who almost made it to the Supreme Court bench recently.
Coal allocation scam or Coalgate, as referred by the media, is a political scandal concerning the Indian government's allocation of the nation's coal deposits to public sector entities (PSEs) and private companies by former Prime Minister Manmohan Singh. In a draft report issued in March 2012, the Comptroller and Auditor General of India (CAG) office accused the Government of India of allocating coal blocks in an inefficient manner during the period 2004–2009. Over the summer of 2012, the opposition BJP lodged a complaint resulting in a Central Bureau of Investigation probe into whether the allocation of the coal blocks was in fact influenced by corruption
§
CAG points to gaps in petroleum pricing
In its audit report on public sector oil marketing companies (OMCs), the Comptroller and Auditor General of India (CAG) on July 18th said the government’s methodology for pricing petroleum products had led to undue benefits to private refiners. In 2011-12, Reliance Industries and Essar Oil had benefited to the tune of Rs 667 crore on diesel alone, it estimated.
The CAG report said, benefited by Rs 26,600 crore through the pricing of products at the refinery gate. However, this cost advantage wasn’t adequately translated into an improvement in refining margins, optimization of production costs and an improvement in yields.
The auditor also found three of the six refineries audited, including Indian Oil Corporation’s Haldia refinery and the Mumbai refineries of Bharat Petroleum Corporation and Hindustan Petroleum Corporation had considerable scope of improvement, in terms of gross refinery margins.
The CAG recommended appropriate checks to prevent the likely diversion of cheaper subsidized fuel, which would dilute the positive impact of market pricing for bulk customers on under recoveries. The share of bulk high-speed diesel (HSD) in total HSD sales had declined to about 10 per cent in August 2013 from annual average of 18 per cent in 2011-12, the report said.
CAG Where find mistake
In its audit report on public sector oil marketing companies (OMCs), the Comptroller and Auditor General of India (CAG) on July 18th said the government’s methodology for pricing petroleum products had led to undue benefits to private refiners. In 2011-12, Reliance Industries and Essar Oil had benefited to the tune of Rs 667 crore on diesel alone, it estimated.
The CAG report said, benefited by Rs 26,600 crore through the pricing of products at the refinery gate. However, this cost advantage wasn’t adequately translated into an improvement in refining margins, optimization of production costs and an improvement in yields.
The auditor also found three of the six refineries audited, including Indian Oil Corporation’s Haldia refinery and the Mumbai refineries of Bharat Petroleum Corporation and Hindustan Petroleum Corporation had considerable scope of improvement, in terms of gross refinery margins.
The CAG recommended appropriate checks to prevent the likely diversion of cheaper subsidized fuel, which would dilute the positive impact of market pricing for bulk customers on under recoveries. The share of bulk high-speed diesel (HSD) in total HSD sales had declined to about 10 per cent in August 2013 from annual average of 18 per cent in 2011-12, the report said.
CAG Where find mistake
o
Rs 667 cr: Estimated undue benefit to RIL and Essar Oil in
2011-12
o
Rs 1,428 cr: Benefit to standalone PSU refineries in 2011-12
o
Rs 2,10,676 cr: The under recovery on LPG and kerosene for
2007-12, against the 2002 Budget provision of Rs 14,121 crore
o
10%: The share of bulk high-speed diesel (HSD) in total HSD
sales in August 2013
Other
observations
On Mumbai airport
On Mumbai airport
o
4-year delay more than doubled cost to Rs 12,380 cr in 2011,
against Rs 5,826 crore estimated in 2006
o
Financing risks not effectively transferred to concessionaire
o
Outsourcing of cargo business and hotel operations by MIAL led
to a fall in AAI's revenue share
On
Railways
o
Modified approach for VMPL-gauge conversion project without CCEA
approval led to additional financial burden of Rs 128 crore
o
15-month delay in formation of SPV led to 100% cost overruns for
HPRCL (new line project), amounting to Rs 218 crore
o
Pending liability of Rs 79 crore on HMRDC-gauge conversion
project; no clause for payment of sub-ordinate debt
Report
on PPP projects
The Comptroller and Auditor-General of India (CAG) has picked holes in the way the Public Private Partnership (PPP) was handled in two vital infrastructure sectors during the tenure of the previous government.
The CAG’s adverse comments on the Mumbai airport and several Railways projects come at a time when the National Democratic Alliance Government is pinning its hopes of using the PPP route to build infrastructure in several sectors.
CAG
The Comptroller and Auditor General (CAG) of India is an authority, established by the Constitution of India under Chapter V, who audits all receipts and expenditure of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government.
The CAG is mentioned in the Constitution of India under Article 148 – 151.
The CAG is ranked 9th and enjoys the same status as a judge of Supreme Court of India in Indian order of precedence.
The current CAG of India is Shashi Kant Sharma, he is the 12th CAG of India.
The first CAG of India is Narahari
The Comptroller and Auditor-General of India (CAG) has picked holes in the way the Public Private Partnership (PPP) was handled in two vital infrastructure sectors during the tenure of the previous government.
The CAG’s adverse comments on the Mumbai airport and several Railways projects come at a time when the National Democratic Alliance Government is pinning its hopes of using the PPP route to build infrastructure in several sectors.
CAG
The Comptroller and Auditor General (CAG) of India is an authority, established by the Constitution of India under Chapter V, who audits all receipts and expenditure of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government.
The CAG is mentioned in the Constitution of India under Article 148 – 151.
The CAG is ranked 9th and enjoys the same status as a judge of Supreme Court of India in Indian order of precedence.
The current CAG of India is Shashi Kant Sharma, he is the 12th CAG of India.
The first CAG of India is Narahari
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Jaipur Foot to open centre in Mauritius
The world famous Jaipur Foot will launch a centre in Mauritius. The centre will be located at Port Louise in collaboration with Global Rainbow Foundation, an organization that works for the disadvantaged and the physically-challenged, and provides them with medical aid.
D.R. Mehta, founder and chief patron of the Bhagwan Mahaveer Viklang Sahayata (BMVSS), an organisation for the physically-challenged, will sign a Memorandum of Understanding on Sunday to start the centre in Mauritius. The GRF will launch its two-phase Jaipur Foot project which would be called “gift of mobility.”
Jaipur Foot
The Jaipur Foot, also known as the Jaipur Leg, is a rubber-based prosthetic leg for people with below-knee amputations. Although inferior in many ways to the composite carbon fibre variants, its variable applicability and cost efficiency make it an acceptable choice for prosthesis. Ram Chander Sharma designed and developed it in 1968
The world famous Jaipur Foot will launch a centre in Mauritius. The centre will be located at Port Louise in collaboration with Global Rainbow Foundation, an organization that works for the disadvantaged and the physically-challenged, and provides them with medical aid.
D.R. Mehta, founder and chief patron of the Bhagwan Mahaveer Viklang Sahayata (BMVSS), an organisation for the physically-challenged, will sign a Memorandum of Understanding on Sunday to start the centre in Mauritius. The GRF will launch its two-phase Jaipur Foot project which would be called “gift of mobility.”
Jaipur Foot
The Jaipur Foot, also known as the Jaipur Leg, is a rubber-based prosthetic leg for people with below-knee amputations. Although inferior in many ways to the composite carbon fibre variants, its variable applicability and cost efficiency make it an acceptable choice for prosthesis. Ram Chander Sharma designed and developed it in 1968
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Mercy petitions rejected
Mercy petitions of six death row convicts including Surendra Koli, found guilty in the sensational Nithari serial rapes and killings, have been rejected by President Pranab Mukherjee. Besides Koli, mercy pleas of Renukabai and Seema Rajendra Pralhadrao Wasnik (Maharashtra), Jagdish and Holiram Bordoloi (Assam) have been rejected following recommendations of the Home Ministry
ECONOMY
Mercy petitions of six death row convicts including Surendra Koli, found guilty in the sensational Nithari serial rapes and killings, have been rejected by President Pranab Mukherjee. Besides Koli, mercy pleas of Renukabai and Seema Rajendra Pralhadrao Wasnik (Maharashtra), Jagdish and Holiram Bordoloi (Assam) have been rejected following recommendations of the Home Ministry
ECONOMY
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RIL Fined
The government has imposed an additional penalty of Rs. 3,475 crore on Reliance Industries for producing less than the targeted natural gas from its KG-D6 block in 2013-14.
The government has imposed an additional penalty of Rs. 3,475 crore on Reliance Industries for producing less than the targeted natural gas from its KG-D6 block in 2013-14.
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ADB projects 6.3% growth for India in 2015-16
Manila-based Asian Development Bank (ADB) has upgraded India’s economic growth forecast to 6.3 per cent in 2015-16 on hopes of speedy reform process. The multilateral funding agency, however, has retained forecast of 5.5 per cent growth for this year. Earlier, ADB had projected a 6 per cent growth for India in the financial year.
It said growth in China was moderating in line with earlier expectations and should achieve the forecast of 7.5 per cent in 2014 and 7.4 per cent in 2015. In Southeast Asia, growth softened in the first-half of 2014 largely because of country-specific factors in Indonesia, Thailand, and Vietnam.
ADB: The Asian Development Bank (ADB) is a regional development bank established on 22 August 1966 which is headquartered inMetro Manila, Philippines to facilitate economic development of countries in Asia. The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly known as the United Nations Economic Commission for Asia and the Far East) and non-regional developed countries. From 31 members at its establishment, ADB now has 67 members - of which 48 are from within Asia and the Pacific and 19 outside. ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with member's capital subscriptions.
Manila-based Asian Development Bank (ADB) has upgraded India’s economic growth forecast to 6.3 per cent in 2015-16 on hopes of speedy reform process. The multilateral funding agency, however, has retained forecast of 5.5 per cent growth for this year. Earlier, ADB had projected a 6 per cent growth for India in the financial year.
It said growth in China was moderating in line with earlier expectations and should achieve the forecast of 7.5 per cent in 2014 and 7.4 per cent in 2015. In Southeast Asia, growth softened in the first-half of 2014 largely because of country-specific factors in Indonesia, Thailand, and Vietnam.
ADB: The Asian Development Bank (ADB) is a regional development bank established on 22 August 1966 which is headquartered inMetro Manila, Philippines to facilitate economic development of countries in Asia. The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly known as the United Nations Economic Commission for Asia and the Far East) and non-regional developed countries. From 31 members at its establishment, ADB now has 67 members - of which 48 are from within Asia and the Pacific and 19 outside. ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with member's capital subscriptions.
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SEBI draft norms for infrastructure investment trusts
The Securities and Exchange Board of India, on 17th July, released draft guidelines for Infrastructure Investment Trusts (InvITs), which will enable creation of a new investment product for arranging long-term financing for infrastructure projects.
These InvITs can be listed on the stock exchanges, will get tax benefits and will invest the funds collected from investors in infrastructure projects, including PPP (public private partnership).
InvITs would allow investors to invest in specific products linked to infrastructure projects, while providing necessary safeguards. Besides, it would help the corporates raise significant amounts of capital for their projects.
According to draft papers, an InvIT which proposes to invest at least 80 per cent of the value of the assets in the completed and revenue generating infrastructure assets, would have to raise funds only through public issue of units and the minimum subscription size and trading lot for such product would be Rs.5 lakh. The remaining 20 per cent may be invested in under construction infrastructure projects.
SEBI said an InvIT, which proposes to invest more than 10 per cent of the value of their assets in under construction infrastructure projects, would require to raise funds through private placement from qualified institutional buyers and the minimum investment and trading lot for such InvITs would be of Rs.1 crore.An InvIT would be a trust with parties such as sponsor, investment manager, trustee and project manager.
The Securities and Exchange Board of India, on 17th July, released draft guidelines for Infrastructure Investment Trusts (InvITs), which will enable creation of a new investment product for arranging long-term financing for infrastructure projects.
These InvITs can be listed on the stock exchanges, will get tax benefits and will invest the funds collected from investors in infrastructure projects, including PPP (public private partnership).
InvITs would allow investors to invest in specific products linked to infrastructure projects, while providing necessary safeguards. Besides, it would help the corporates raise significant amounts of capital for their projects.
According to draft papers, an InvIT which proposes to invest at least 80 per cent of the value of the assets in the completed and revenue generating infrastructure assets, would have to raise funds only through public issue of units and the minimum subscription size and trading lot for such product would be Rs.5 lakh. The remaining 20 per cent may be invested in under construction infrastructure projects.
SEBI said an InvIT, which proposes to invest more than 10 per cent of the value of their assets in under construction infrastructure projects, would require to raise funds through private placement from qualified institutional buyers and the minimum investment and trading lot for such InvITs would be of Rs.1 crore.An InvIT would be a trust with parties such as sponsor, investment manager, trustee and project manager.
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Centre sets up expert panel on Cost and Audit rules
Amid concerns raised by cost accountants over some provisions in the new Cost Records and Audit Rules, the government on 19th July set up an expert committee to look into this matter.
State-run energy giant ONGC’s former Chairman and Managing Director R. S. Sharma will head the committee, which will study the recently notified rules and issues relevant to cost auditing.
The other members of the committee will be R. K. Jain, Additional Secretary in the Ministry of Health and Family Welfare, former ICWAI (Institute of Cost and Works Accountants of India) President Chandra Wadhwa, and Aruna Sethi, Adviser (Cost), Ministry of Corporate Affairs. The committee can also co-opt up to two members, the Corporate Affairs Ministry said in a statement.
Following the notification of the Companies (Cost Records and Audit) Rules 2014, the Council of the Institute of Cost Accountants of India had expressed concerns over certain provisions of the rules, particularly coverage of sectors of economy under the rules. The Ministry further said that “it is hoped that the recommendations of the committee will help create a competitive and efficient business environment.”
Amid concerns raised by cost accountants over some provisions in the new Cost Records and Audit Rules, the government on 19th July set up an expert committee to look into this matter.
State-run energy giant ONGC’s former Chairman and Managing Director R. S. Sharma will head the committee, which will study the recently notified rules and issues relevant to cost auditing.
The other members of the committee will be R. K. Jain, Additional Secretary in the Ministry of Health and Family Welfare, former ICWAI (Institute of Cost and Works Accountants of India) President Chandra Wadhwa, and Aruna Sethi, Adviser (Cost), Ministry of Corporate Affairs. The committee can also co-opt up to two members, the Corporate Affairs Ministry said in a statement.
Following the notification of the Companies (Cost Records and Audit) Rules 2014, the Council of the Institute of Cost Accountants of India had expressed concerns over certain provisions of the rules, particularly coverage of sectors of economy under the rules. The Ministry further said that “it is hoped that the recommendations of the committee will help create a competitive and efficient business environment.”
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Satyam Case: SEBI bars Raju, 4 others for 14 years
Five-and-a-half years after the Satyam Computer Services scam broke, the erstwhile top management — B Ramalinga Raju, ex-Chairman; B Rama Raju, ex-Managing Director; Vadlamani Srinivas, ex-CFO; G Ramakrishna, ex-VP (Finance); VS Prabhakara Gupta, ex-Head (Internal Audit) — has been banned from the securities market for 14 years.
In an order on 15th July, market regulator SEBI also directed the five to return unlawful gains of ?1,849 crore within 45 days, with 12 per cent interest from January 7, 2009, to date. The order comes into force immediately and the amount will have to be paid to SEBI through a demand draft. The SEBI order comes just ahead of a verdict expected on July 28 from a special court, which is handling the multi-crore accounting fraud case. SEBI found that the five failed to produce any material to contest the allegations/charges leveled against them despite having several opportunities to do so.
Five-and-a-half years after the Satyam Computer Services scam broke, the erstwhile top management — B Ramalinga Raju, ex-Chairman; B Rama Raju, ex-Managing Director; Vadlamani Srinivas, ex-CFO; G Ramakrishna, ex-VP (Finance); VS Prabhakara Gupta, ex-Head (Internal Audit) — has been banned from the securities market for 14 years.
In an order on 15th July, market regulator SEBI also directed the five to return unlawful gains of ?1,849 crore within 45 days, with 12 per cent interest from January 7, 2009, to date. The order comes into force immediately and the amount will have to be paid to SEBI through a demand draft. The SEBI order comes just ahead of a verdict expected on July 28 from a special court, which is handling the multi-crore accounting fraud case. SEBI found that the five failed to produce any material to contest the allegations/charges leveled against them despite having several opportunities to do so.
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19 FDI proposals worth Rs. 2,327 crore approved
The government has cleared 19 foreign investment proposals, including that of Walt Disney Company and Reckitt Benckiser (India), entailing a total investment of Rs 2,326.72 crore. The FIPB, however, rejected an investment proposal of MCX for a post-facto approval of the FDI made by Alexandra Mauritius Ltd prior to the period when FDI in commodity exchanges was brought under approval route.
SCIENCE AND TECHNOLOGY
The government has cleared 19 foreign investment proposals, including that of Walt Disney Company and Reckitt Benckiser (India), entailing a total investment of Rs 2,326.72 crore. The FIPB, however, rejected an investment proposal of MCX for a post-facto approval of the FDI made by Alexandra Mauritius Ltd prior to the period when FDI in commodity exchanges was brought under approval route.
SCIENCE AND TECHNOLOGY
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Panel clears field trials for 4 GM crops
The Genetic Engineering Approval Committee (GEAC) on 18th July gave the green signal for field trials of genetically modified (GM) rice, mustard, cotton, chickpea and brinjal. While the GEAC has approved the commercial release of Bt Brinjal, it has been stayed by the Ministry of Environment So far, about 20 GM crops are under trial at various stages
SPORTS
The Genetic Engineering Approval Committee (GEAC) on 18th July gave the green signal for field trials of genetically modified (GM) rice, mustard, cotton, chickpea and brinjal. While the GEAC has approved the commercial release of Bt Brinjal, it has been stayed by the Ministry of Environment So far, about 20 GM crops are under trial at various stages
SPORTS
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Germany won FIFA world cup
Germany won FIFA world cup, in the final Germany defeated Netherlands. Final match was played in Rio de Janeiro
Germany won FIFA world cup, in the final Germany defeated Netherlands. Final match was played in Rio de Janeiro
o
Host country- Brazil
o
Games started on 12th June and final was held in 13th July
o
In total 32 teams participated
In
first semi semifinals, Germany defeated Brazil and reached final
In the second semifinals
Top score: James Rodriguez (six goals)
Best Player: Lionel Messiu
Best Young player: Paul Pogba
Best goal keeper: Manuel Neuer
2018 FIFA world cup will be held in Russia
Germany ranked first
In the FIFA ranking, Germany stood at first spot.
Germany led by Philipp Lahm reclaimed the top spot after a gap of 20 years after it won the 2014 FIFA Football World Cup held in Brazil.
FIFA rankings
Germany; 2. Argentina; 3. Netherlands; 4. Colombia; 5. Belgium; 6. Uruguay; 7. Brazil; 8. Spain; 9. Switzerland; 10. France
11. Portugal; 12. Chile; 13. Greece; 14. Italy; 15. USA; 16. Costa Rico; 17. Croatia; 18. Mexico; 19. Bosnia and Herzegovina; 20. England
PERSONS
In the second semifinals
Top score: James Rodriguez (six goals)
Best Player: Lionel Messiu
Best Young player: Paul Pogba
Best goal keeper: Manuel Neuer
2018 FIFA world cup will be held in Russia
Germany ranked first
In the FIFA ranking, Germany stood at first spot.
Germany led by Philipp Lahm reclaimed the top spot after a gap of 20 years after it won the 2014 FIFA Football World Cup held in Brazil.
FIFA rankings
Germany; 2. Argentina; 3. Netherlands; 4. Colombia; 5. Belgium; 6. Uruguay; 7. Brazil; 8. Spain; 9. Switzerland; 10. France
11. Portugal; 12. Chile; 13. Greece; 14. Italy; 15. USA; 16. Costa Rico; 17. Croatia; 18. Mexico; 19. Bosnia and Herzegovina; 20. England
PERSONS
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Governors appointed
|
State
|
Governor
|
|
Gujarat
|
Om Prakash Kohli
|
|
Uttar Pradesh
|
Ram Naik
|
|
West Bengal
|
Kesri Nath Tripathi
|
|
Chhattisgarh
|
Balramji Dass Tandon
|
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Nagaland
|
Padmanabha Acharya
|
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About the Governor Institution
The Governor of the States of India is appointed by the President of India for a period of five years. A Governor is appointed on the advice of the Union Council of Ministers, or in reality on the advice of the Prime Minister. For the President to consult the Chief Minister of the concerned state, before the appointment of a Governor is not a constitutional requirement. A Governor may be simultaneously assignee to more than one state. Thus on many occasions
About the Governor Institution
The Governor of the States of India is appointed by the President of India for a period of five years. A Governor is appointed on the advice of the Union Council of Ministers, or in reality on the advice of the Prime Minister. For the President to consult the Chief Minister of the concerned state, before the appointment of a Governor is not a constitutional requirement. A Governor may be simultaneously assignee to more than one state. Thus on many occasions
o
A Governor is appointed for a period of 5 years. The President,
if he so pleases may extend his tenure. A vacancy in the Governor’s post
arises, if
o
The Governors also have often been transferred from one state to
another.
o
The constitution does not specify grounds on which the Governors
may be dismissed. Evidently Governors may be dismissed for gross misbehaviour.
But often Governors have been dismissed to suit the conveniences of Government
at the centre.
§
Nadine Gordimer: Gordimer, who won Nobel Prize for Literature in 1991, died
on July 13th
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Prasad Bhatt: Environmentalist and social activist Chandi Prasad Bhatt was
presented the Gandhi Peace Prize by President Pranab Mukherjee on 15th July.
Bhatt has got this award for his dedicated, tireless and invaluable work for
the conservation of the environment. A Gandhian and a member of the Sarvodaya
movement, Mr. Bhatt organised the Dashauli Gram Swarajya Sangh in 1964. He
dedicated himself through the Sangh to improve the lives of villagers,
providing employment near their homes in forest-based industries, and fighting
against wrong policies through Gandhian non-violent satyagraha. The International
Gandhi Peace Prize, named after Mahatma Gandhi, is awarded annually by
the Government of India. As a tribute to the ideals espoused by Gandhi, the
Government of India launched the International Gandhi Peace Prize in 1995 on
the occasion of the 125th birth anniversary of Mohandas Gandhi. This is an
annual award given to individuals and institutions for their contributions
towards social, economic and political transformation through non-violence and
other Gandhian methods. The award carries Rs. 10 million in cash, convertible
in any currency in the world, a plaque and a citation. It is open to all
persons regardless of nationality, race, creed or sex.
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Shakira: International pop star Shakira is officially the most popular
person on Facebook with over a 100 million ‘likes’, the most for any public
figure.
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Bashar Al-Assad: Bashar al-Assad has been sworn in for a third term as
Syria's president. With this he became the President for the third consecutive
term. He was re-elected after a presidential election that was held in June
2014.
§
Ashok Chavan: The Election Commission of India has issued notice to
Ashok Chavan (Congress Praliamentarian and former Chief Minister of
Maharashtra). The notice is for alleged failure to register his poll expenses
during the 2009 poll.
The EC order came on the complaint of former Maharashtra minister Madhavrao Kinhalkar, defeated by Chavan from Nanded in 2009, and the Bharatiya Janata Party. The complainants said Chavan had not included the expenditure for 25 advertisements in Marathi newspapers in his poll accounts.
In the notice EC asked to Chavan to explain why he should not be disqualified under Section 10A of the Representation of the People Act in a case pertaining to ‘paid news.’
The EC order came on the complaint of former Maharashtra minister Madhavrao Kinhalkar, defeated by Chavan from Nanded in 2009, and the Bharatiya Janata Party. The complainants said Chavan had not included the expenditure for 25 advertisements in Marathi newspapers in his poll accounts.
In the notice EC asked to Chavan to explain why he should not be disqualified under Section 10A of the Representation of the People Act in a case pertaining to ‘paid news.’
§
Umlesh Yadav is the first politician to be disqualified by the
Election Commission of India for a period of three years for suppression of her
election expenses incurred when she was elected as an MLA to the Bisauli
constituency in the Uttar Pradesh state assembly elections, 2007
What is Representation of the people act?
The Representation of People Act, 1951 is an act of Parliament of India to provide for the conduct of elections of the Houses of Parliament and to the House or Houses of the Legislature of each State, the qualifications and disqualifications for membership of those Houses, the corrupt practices and other offences at or in connection with such elections and the decision of doubts and disputes arising out of or in connection with such elections. The Act was enacted by the provisional parliament under Article 327 of Indian Constitution, before the first general election. The acts were amended several times, but one of the notable amendments is the Representation of the People (Amendment) Act, 1966 (47 of 1966), which abolished the election tribunals and transferred the election petitions to the high courts whose orders can be appealed to Supreme Court. However, election disputes regarding the election of President and Vice-President are directly heard by the Supreme Court.
About Instructions:
There are rules on how much candidates can spend on their campaigns and where they receive their funding from
There are two types of spending by, or on behalf of, parties at elections. These are:
What is Representation of the people act?
The Representation of People Act, 1951 is an act of Parliament of India to provide for the conduct of elections of the Houses of Parliament and to the House or Houses of the Legislature of each State, the qualifications and disqualifications for membership of those Houses, the corrupt practices and other offences at or in connection with such elections and the decision of doubts and disputes arising out of or in connection with such elections. The Act was enacted by the provisional parliament under Article 327 of Indian Constitution, before the first general election. The acts were amended several times, but one of the notable amendments is the Representation of the People (Amendment) Act, 1966 (47 of 1966), which abolished the election tribunals and transferred the election petitions to the high courts whose orders can be appealed to Supreme Court. However, election disputes regarding the election of President and Vice-President are directly heard by the Supreme Court.
About Instructions:
There are rules on how much candidates can spend on their campaigns and where they receive their funding from
There are two types of spending by, or on behalf of, parties at elections. These are:
o
party campaign spending
o
candidate spending
In
the 2014 elections candidates spending increased by Election Commission
The expenditure limits for Lok Sabha elections increased from Rs 40 lakh to Rs 70 lakh in bigger states and from Rs 22 lakh to Rs 54 lakh in smaller states.
The bigger states include Maharashtra, Madhya Pradesh, Uttar Pradesh, West Bengal and Karnataka etc, and the smaller states include Goa and other hilly and north eastern states.
The Government also cleared the proposal to raise expenditure limits for assembly elections, with a maximum of Rs 28 lakh and a minimum of Rs 20 lakh in North Eastern and hill states.
SPECIAL INFORMATION
The expenditure limits for Lok Sabha elections increased from Rs 40 lakh to Rs 70 lakh in bigger states and from Rs 22 lakh to Rs 54 lakh in smaller states.
The bigger states include Maharashtra, Madhya Pradesh, Uttar Pradesh, West Bengal and Karnataka etc, and the smaller states include Goa and other hilly and north eastern states.
The Government also cleared the proposal to raise expenditure limits for assembly elections, with a maximum of Rs 28 lakh and a minimum of Rs 20 lakh in North Eastern and hill states.
SPECIAL INFORMATION
§
BRICS Bank @ Shanghai
The BRICS nations, have decided to establish a Bank in Shanghai. This is the crucial decision that had taken by member countries of BRICS in sixth summit that was held in Fortaleza, Brazil
The summit lasted for two days, from July 16th to 17th.
The BRICS Development Bank was due to be inaugurated and Shanghai was selected as its headquarters.
On 15 July, the group signed a document to create the US$100 billion BRICS Development Bank and a reserve currency pool worth over another US$100 billion.
Documents on cooperation between BRICS export credit agencies and an agreement of cooperation on innovation were also signed.
Why BRICS Bank?
The bank aimed at funding infrastructure projects in developing nations will be based in Shanghai. India will preside over its operations for the first five years, followed by Brazil and then Russia, leaders of the five-country group announced at a summit.
In his speech Prime Minister of India, Narendra Modi said that, at present World Bank and IMF are being dominated by US, as it is largest stake holder in those two institutions. India demanded that there should be equal share to all nations of BRICS, in Bank, so that the democratic spirit will prevail.
Reforms urged by Indian PM
Indian Prime Minister Narendra Modi called for "urgent reform" of institutions such as the United Nations Security Council and International Monetary Fund and said that there should be zero tolerance towards terrorism.
He said that restoring climate of peace and stability was an urgent need for global progress and the world must unite to decisively confront challenges. He said that institutions like the UN Security Council and IMF need urgent reform. They must become more representative and reflect ground realities, he said.
Analysis of BRICS Bank
Five countries, which account 40 per cent of the world’s population and 20 per cent of its GDP have signed an agreement to create a development bank to provide financial assistance to developing countries and emerging market economies, mainly for infrastructure projects.
A new global financial order aimed to be more inclusive than the Western-focussed International Monetary Fund and the World Bank.
The $100 billion bank will have an initial subscribed capital of $50 billion. The five members managed to iron out their differences to agree on an equal share for each in the bank, so no one member dominates the institution.
The Bank will also have an African Regional Centre in South Africa and India will assume the first presidency of the bank. First mooted at the fourth BRICS summit in New Delhi in 2012, the Bank will certainly have an impact on the existing arrangements put in place by the Bretton Woods institutions, and will give more say to smaller countries.
But BRICS also appears to recognize that the NDB cannot replace the IMF, the World Bank or the regional development banks. Thus, the Fortaleza Declaration describes the NDB as a “supplement to the efforts of multilateral and regional financial institutions for global development.”
A second financial instrument, the Contingency Reserve Arrangement of $100 billion, has been set up to help developing economies tide over “short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements.” In its sixth year, BRICS has a new confidence, and it was more than apparent at the summit.
The only world grouping that is not region, security or trade-based, its members have come together with the determination to create a more multilateral global order. China and Russia have backed the other three BRICS members on the issue of UN reform and Security Council expansion. But the grouping needs to find a stronger political voice.
The Declaration came in the midst of the bombardment, even if under grave provocation, of Gaza by Israel, but it is silent on this while calling for Israel and Palestine to resume negotiations towards a two-state solution.
The NDB would essentially do what the World Bank presently does: extend loans, payable over 15-20 years, to fund infrastructure and other development programmes. The CRA’s envisaged role is, likewise, similar to the International Monetary Fund’s (IMF): providing emergency assistance to members facing currency collapse or flight of capital.
The combined voting power of the five BRICS nations in the World Bank, at 13.09 per cent, is lower than the US’ 15.01 per cent. Nor do they have a real say in the IMF, whose loans are often conditional upon the borrowers undertaking extreme austerity measures.
The BRICS countries together make up 28 per cent of the world’s GDP by purchasing power parity see for them in global decision-making.
Criticism
With the announcement at the summit of the BRICS grouping of Brazil, Russia, India, China and South Africa of the launch of a new development bank, a two-year old idea has come to fruition with impressive speed.
While this is an impressive feat of speed by the standards of multilateral negotiations, that does not change the fact that the BRICS Bank's usefulness has always been in doubt. The shared stabilisation fund, which pools currency reserves, is welcome - it adds to similar efforts that India has set up with Japan, among others - but the development bank, which will lend to projects, is a questionable decision.
The fact that the Indian government has allowed the bank to be headquartered in Shanghai merely underlines the fact that this, given Chinese resources in manpower and know-how, will be a largely Chinese enterprise.
While India has done well to insist that the initial $50-billion corpus of the development bank will be shared equally between the five BRICS countries, this also means that India's contribution is expected to be substantial - the bank is no Rs 100-crore experiment.
However, even equal voting is unlikely to prevent an effective takeover of the BRICS Bank by China. The supposed concession to India - that an Indian will head it first - is negligible in comparison. After all, it is not a permanent concession, merely the first go at a rotating job. But the tom-tomming of the presidency might also be revealing of why the bank is so beloved of New Delhi's bureaucrats. In effect, the BRICS Bank will likely wind up being a $10-billion sinecure for retired civil servants and public-sector bank officers.
On the sidelines of BRICS, India has made some agreements with Brazil.
Prime Minister Narendra Modi met Brazilian President Dilma Rousseff in Brasilia on 16th July as the two countries signed agreements on cooperation in the field of environment and remote sensing on the sidelines of the sixth BRICS summit
During the meeting, the two heads of nations agreed to take steps to further expand and diversify trade and investment flows and deepen cooperation in agriculture and dairy science, conventional and renewable energy, space research and application, defence, cyber security and environment conservation.
They also agreed to intensify cooperation in international forums and multilateral institutions, including the G20. The two sides signed Memoranda of Understanding on environment; on cooperation in augmentation of a Brazilian earth station for receiving and processing data from Indian Remote Sensing satellites; and on cooperation in the establishment of a consultation mechanism on mobility and consular issues.
BRICS is the acronym for an association of five major emerging national economies:Brazil, Russia, India, China, and South Africa. The BRICS members are all developing or newly industrialized countries, all five are G-20 members.
The BRICS have received both praise and criticism from numerous quarters. Argentina will participate in the Fortaleza Summit to be held in July 2014 in response to an invitation by Russia. In that meeting, the BRICS countries will discuss the possible admission of Argentina as the sixth member country.
The term, "BRICS", was coined by economist Jim O'Neill in his publication, Building Better Global Economic BRICs.
The BRICS nations, have decided to establish a Bank in Shanghai. This is the crucial decision that had taken by member countries of BRICS in sixth summit that was held in Fortaleza, Brazil
The summit lasted for two days, from July 16th to 17th.
The BRICS Development Bank was due to be inaugurated and Shanghai was selected as its headquarters.
On 15 July, the group signed a document to create the US$100 billion BRICS Development Bank and a reserve currency pool worth over another US$100 billion.
Documents on cooperation between BRICS export credit agencies and an agreement of cooperation on innovation were also signed.
Why BRICS Bank?
The bank aimed at funding infrastructure projects in developing nations will be based in Shanghai. India will preside over its operations for the first five years, followed by Brazil and then Russia, leaders of the five-country group announced at a summit.
In his speech Prime Minister of India, Narendra Modi said that, at present World Bank and IMF are being dominated by US, as it is largest stake holder in those two institutions. India demanded that there should be equal share to all nations of BRICS, in Bank, so that the democratic spirit will prevail.
Reforms urged by Indian PM
Indian Prime Minister Narendra Modi called for "urgent reform" of institutions such as the United Nations Security Council and International Monetary Fund and said that there should be zero tolerance towards terrorism.
He said that restoring climate of peace and stability was an urgent need for global progress and the world must unite to decisively confront challenges. He said that institutions like the UN Security Council and IMF need urgent reform. They must become more representative and reflect ground realities, he said.
Analysis of BRICS Bank
Five countries, which account 40 per cent of the world’s population and 20 per cent of its GDP have signed an agreement to create a development bank to provide financial assistance to developing countries and emerging market economies, mainly for infrastructure projects.
A new global financial order aimed to be more inclusive than the Western-focussed International Monetary Fund and the World Bank.
The $100 billion bank will have an initial subscribed capital of $50 billion. The five members managed to iron out their differences to agree on an equal share for each in the bank, so no one member dominates the institution.
The Bank will also have an African Regional Centre in South Africa and India will assume the first presidency of the bank. First mooted at the fourth BRICS summit in New Delhi in 2012, the Bank will certainly have an impact on the existing arrangements put in place by the Bretton Woods institutions, and will give more say to smaller countries.
But BRICS also appears to recognize that the NDB cannot replace the IMF, the World Bank or the regional development banks. Thus, the Fortaleza Declaration describes the NDB as a “supplement to the efforts of multilateral and regional financial institutions for global development.”
A second financial instrument, the Contingency Reserve Arrangement of $100 billion, has been set up to help developing economies tide over “short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements.” In its sixth year, BRICS has a new confidence, and it was more than apparent at the summit.
The only world grouping that is not region, security or trade-based, its members have come together with the determination to create a more multilateral global order. China and Russia have backed the other three BRICS members on the issue of UN reform and Security Council expansion. But the grouping needs to find a stronger political voice.
The Declaration came in the midst of the bombardment, even if under grave provocation, of Gaza by Israel, but it is silent on this while calling for Israel and Palestine to resume negotiations towards a two-state solution.
The NDB would essentially do what the World Bank presently does: extend loans, payable over 15-20 years, to fund infrastructure and other development programmes. The CRA’s envisaged role is, likewise, similar to the International Monetary Fund’s (IMF): providing emergency assistance to members facing currency collapse or flight of capital.
The combined voting power of the five BRICS nations in the World Bank, at 13.09 per cent, is lower than the US’ 15.01 per cent. Nor do they have a real say in the IMF, whose loans are often conditional upon the borrowers undertaking extreme austerity measures.
The BRICS countries together make up 28 per cent of the world’s GDP by purchasing power parity see for them in global decision-making.
Criticism
With the announcement at the summit of the BRICS grouping of Brazil, Russia, India, China and South Africa of the launch of a new development bank, a two-year old idea has come to fruition with impressive speed.
While this is an impressive feat of speed by the standards of multilateral negotiations, that does not change the fact that the BRICS Bank's usefulness has always been in doubt. The shared stabilisation fund, which pools currency reserves, is welcome - it adds to similar efforts that India has set up with Japan, among others - but the development bank, which will lend to projects, is a questionable decision.
The fact that the Indian government has allowed the bank to be headquartered in Shanghai merely underlines the fact that this, given Chinese resources in manpower and know-how, will be a largely Chinese enterprise.
While India has done well to insist that the initial $50-billion corpus of the development bank will be shared equally between the five BRICS countries, this also means that India's contribution is expected to be substantial - the bank is no Rs 100-crore experiment.
However, even equal voting is unlikely to prevent an effective takeover of the BRICS Bank by China. The supposed concession to India - that an Indian will head it first - is negligible in comparison. After all, it is not a permanent concession, merely the first go at a rotating job. But the tom-tomming of the presidency might also be revealing of why the bank is so beloved of New Delhi's bureaucrats. In effect, the BRICS Bank will likely wind up being a $10-billion sinecure for retired civil servants and public-sector bank officers.
On the sidelines of BRICS, India has made some agreements with Brazil.
Prime Minister Narendra Modi met Brazilian President Dilma Rousseff in Brasilia on 16th July as the two countries signed agreements on cooperation in the field of environment and remote sensing on the sidelines of the sixth BRICS summit
During the meeting, the two heads of nations agreed to take steps to further expand and diversify trade and investment flows and deepen cooperation in agriculture and dairy science, conventional and renewable energy, space research and application, defence, cyber security and environment conservation.
They also agreed to intensify cooperation in international forums and multilateral institutions, including the G20. The two sides signed Memoranda of Understanding on environment; on cooperation in augmentation of a Brazilian earth station for receiving and processing data from Indian Remote Sensing satellites; and on cooperation in the establishment of a consultation mechanism on mobility and consular issues.
BRICS is the acronym for an association of five major emerging national economies:Brazil, Russia, India, China, and South Africa. The BRICS members are all developing or newly industrialized countries, all five are G-20 members.
The BRICS have received both praise and criticism from numerous quarters. Argentina will participate in the Fortaleza Summit to be held in July 2014 in response to an invitation by Russia. In that meeting, the BRICS countries will discuss the possible admission of Argentina as the sixth member country.
The term, "BRICS", was coined by economist Jim O'Neill in his publication, Building Better Global Economic BRICs.
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RBI reforms
Reserve Bank of India has relaxed most of the rules, to boost growth. These include, new regulations to set up new small banks
Eased rules for Infra Bonds
To boost demand for infrastructure and housing, the Reserve Bank of India (RBI) on 15th July said banks would not have to maintain cash reserve ratio (CRR) or statutory liquidity ratio (SLR) and will not have to meet priority-sector lending targets for funds raised through bonds for extending credit to these sectors.
Under the new definition of affordable housing, loans of up to Rs 50 lakh in metros for houses valuing up to Rs 65 lakh and those of up to Rs 40 lakh for houses valuing up to Rs 50 lakh in all other cities are now part of affordable housing.
The incentives will reduce the cost of funds for banks as they do not have to set aside funds for CRR or investment in low-yielding government bonds with the funds raised. If banks' cost of fund is reduced, they can pass on the benefit to customers.
Housing companies expect loan rates to come down by 25-50 basis points, but only over the medium term. Retail customers will have to wait for a while to get the benefit, as most banks offer home loans at base rate or with a marginal spread. So, unless banks decide to cut base rate - which is the function of both policy rate and cost of funds - customers will not have any benefit. Banks are not allowed to lend below the base rate, except for a few segments as specified by RBI. In addition, banks will get full benefit of the leeway only in 2020, as suggested by RBI.
How it works?
Reserve Bank of India has relaxed most of the rules, to boost growth. These include, new regulations to set up new small banks
Eased rules for Infra Bonds
To boost demand for infrastructure and housing, the Reserve Bank of India (RBI) on 15th July said banks would not have to maintain cash reserve ratio (CRR) or statutory liquidity ratio (SLR) and will not have to meet priority-sector lending targets for funds raised through bonds for extending credit to these sectors.
Under the new definition of affordable housing, loans of up to Rs 50 lakh in metros for houses valuing up to Rs 65 lakh and those of up to Rs 40 lakh for houses valuing up to Rs 50 lakh in all other cities are now part of affordable housing.
The incentives will reduce the cost of funds for banks as they do not have to set aside funds for CRR or investment in low-yielding government bonds with the funds raised. If banks' cost of fund is reduced, they can pass on the benefit to customers.
Housing companies expect loan rates to come down by 25-50 basis points, but only over the medium term. Retail customers will have to wait for a while to get the benefit, as most banks offer home loans at base rate or with a marginal spread. So, unless banks decide to cut base rate - which is the function of both policy rate and cost of funds - customers will not have any benefit. Banks are not allowed to lend below the base rate, except for a few segments as specified by RBI. In addition, banks will get full benefit of the leeway only in 2020, as suggested by RBI.
How it works?
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The Reserve Bank of India’s decision allowing banks to issue
long-term bonds of minimum seven years maturity, and exempt the monies raised
from reserve/priority sector lending requirements if used for infrastructure
sector funding, is well-conceived.
o
Infrastructure projects have large capital requirements and also
long gestation periods.
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Banks are required to keep Rs 4 out of every Rs 100 mobilized as
deposits with the RBI (CRR), on which they earn no interest. They also have to
compulsorily invest another Rs 22.5 in government securities (SLR), apart from
earmarking 40 per cent of their credit to so-called priority sectors.
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These pre-emption — resulting in loss or lower income than what
would accrue from regular lending — will not apply to the funds raised from the
seven-year plus tenure bonds that banks can now float.
o
Banks may well pass on the cost savings from regulatory
exemptions on such bonds by offering higher interest. The fact that the issuers
would largely be public sector banks will make these bonds particularly
attractive to insurance firms and provident/pension funds
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What is CRR and SLR?
o
CRR is a cash reserve ratio and SLR is statutory liquidity
ratio. Under CRR a certain percentage of the total bank deposits has to be kept
in the current account with RBI which means banks do not have access to that
much amount for any economic activity or commercial activity. Banks can’t lend
the money to corporate or individual borrowers, banks can’t use that money for
investment purposes. So, that CRR remains in current account and banks don’t
earn anything on that. (At present CRR is 4%, and SLR is 22.50%)
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Guidelines for setting up small banks
The Reserve Bank of India (RBI) on 17th July issued draft guidelines for those seeking a license to set up a payments banks or a small bank, as part of its efforts to expand banking services to more businesses and poor households.
The Reserve Bank of India (RBI) on 17th July issued draft guidelines for those seeking a license to set up a payments banks or a small bank, as part of its efforts to expand banking services to more businesses and poor households.
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The minimum paid up capital required for both categories of bank
licenses would be 1 billion rupees ($16.62 million) of which the promoter would
have to contribute at least 40 percent initially, the RBI said.
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Payments banks can accept deposits and remittances of funds but
cannot provide loans. Small banks can lend, but have more limited areas of
operations than a full-fledged commercial lender.
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The guidelines are part of the RBI's push to set up smaller
banks that can more easily penetrate into India's hinterland and increase
lending to farmers, small traders and businesses.
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Under the latest guidelines, mobile phone carriers, super-market
chains, co-operatives, and non-banking financial companies will be eligible to
apply for permits for setting up payments banks.
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Meanwhile, resident individuals with ten years of experience in
banking and finance, companies and societies, non-banking finance companies and
micro-finance institutions will be eligible for setting up small banks.
