- November 30, 2016
- Posted by: Vinoba
- Category: All Posts, November 2016
1.Direct Transfer of Fertilizer Subsidy to be introduced – Ministry of Chemicals and Fertilizers
The Union Government has decided to introduce Direct Benefit Transfer (DBT) system for fertilizer subsidy payments.
Under the proposed system, 100% subsidy on various fertilizer grades will be released to the manufacturers and importers on basis of actual sales made by the retailer to the beneficiaries.
- Initially, the modified subsidy procedure under DBT system will be introduced on pilot basis in 16 select districts.
- In the second phase, the new payment system will be rolled out in all states only after its due stabilization in first phase.
- The proposed DBT will address the issues relating to diversion and smuggling of urea.
DBT system for fertilizer subsidy
- The DBT in fertilizer sector being implemented is slightly different from the normal DBT implemented in LPG subsidy.
- Under it, the subsidy will be released to the fertilizer companies instead of the beneficiaries, after the sale is made by the retailers to the beneficiaries.
- The subsidy will be released on submission of claims generated in the web-based online Integrated Fertilizer Monitoring System (iFMS) by fertilizer companies.
- It will reduce diversion and smuggling of fertilizers to a large extent. Thus, it will help Government to save subsidy to the some extent.
- The fertilizers will be available to all on ‘no denial’ basis and release fertilizer subsidy to fertilizer companies has no direct relation with landholding of the farmers.
2.Various Loan Schemes for Minorities Self-Employment– Ministry of Minority Affairs
National Minorities Development and Finance Corporation (NMDFC), a Central Public Sector Enterprise under this Ministry provides concessional loans to minorities for self-employment and income generating ventures, through the State Channelising Agencies (SCAs) nominated by the respective State Governments/UT Administration.
- For availing assistance under NMDFC schemes, the annual family income eligibility criterion under Credit Line-1 is Rs.81,000 for rural areas and Rs.1.03 lakh for urban areas.
- Higher annual family income eligibility criterion of upto Rs.6.00 lakh has also been introduced as Credit Line-2, for increasing coverage of beneficiaries under NMDFC schemes.
Mahila Samridhi Yojana:-
- Skill development training is imparted to group of women in women friendly trades.
- Training period is of maximum 6 months with training and raw material cost of upto Rs.1,500 per women and stipend @ Rs.1,000 per women.
- During the period of training, the women are formed into Self Help Group, followed by infusion of micro-credit maximum upto Rs.1.00 lakh per member for the purpose of using the skill developed during the training, for income generation activities.
3.Bank loans for the educated unemployed
Applicants including educated unemployed persons whose proposals are found bankable in accordance with the norms laid down by the concerned bank obtain loans for self-employment ventures
Self-employment is supported through schemes such as
Pradhan Mantri Mudra Yojana (PMMY)- 2015
Micro Units Development & Refinance Agency Ltd (MUDRA) was set up by the Government of India (GoI).
- MUDRA has been initially formed as a wholly owned subsidiary of Small Industries Development bank of India (SIDBI) with 100% capital being contributed by it.
- Presently, the authorized capital of MUDRA is 1000 crores and paid up capital is 750 crore, fully subscribed by SIDBI. More capital is expected to enhance the functioning of MUDRA.
- This Agency would be responsible for developing and refinancing all Micro-enterprises sector by supporting the finance Institutions which are in the business of lending to micro / small business entities engaged in manufacturing, trading and service activities.
- MUDRA would partner with Banks, MFIs and other lending institutions at state level / regional level to provide micro finance support to the micro enterprise sector in the country
- Micro Finance is an economic development tool whose objective is to provide income generating opportunities to the people at the bottom of the pyramid.
- It covers a range of services which include, in addition to the provision of credit, many other credit plus services , financial literacy and other social support services.
Prime Minister’s Employment Generation Programme (PMEGP)- 2008
This is credit linked Scheme of Govt. of India by merging erstwhile REGP and PMRY scheme. KVIC is the Nodal Agency at National Level.
- To generate continuous and sustainable employment opportunities in Rural and Urban areas of the country
- To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises.
- To facilitate participation of financial institutions for higher credit flow to micro sector.
Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)
- The Pradhan Mantri Rojgar Protsahan Yojana(PMRPY) Plan Scheme has been designed to incentivise employers for generation of new employment, where Government of India will be paying the 8.33% EPS contribution of the employer for the new employment.
- This scheme has a dual benefit, where, on the one hand, the employer is incentivised for increasing the employment base of workers in the establishment, and on the other hand, a large number of workers will find jobs in such establishments. A direct benefit is that these workers will have access to social security benefits of the organized sector.
- For new establishment coming into existence/getting registered with EPFO after 01st April, 2016, the reference base will be taken as Zero/NIL employees. Thus, the employer can avail of PMRPY benefits for all new eligible employees.
Stand Up India (SUI)
- Stand-Up India Scheme Facilitates bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.
- This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or woman entrepreneur.
- Small Industries Development bank of India (SIDBI) with 100% capital being contributed by it.
Pradhan Mantri YUVA Yojana (PMYY)
Pradhan Mantri YUVA Yojana, MSDE’s flagship scheme on entrepreneurship education and training.
- The scheme spans over five years (2016-17 to 2020-21) with a project cost of Rs. 499.94 crore, and will provide entrepreneurship education and training to over 7 lakh students in 5 years through 3050 Institutes. It will also include easy access to information and mentor network, credit, incubator and accelerator and advocacy to create a pathway for the youth.
- The government has taken important strides to scale up entrepreneurship in the country., Pradhan Mantri YUVA Yojana has national and international best practices of learning in entrepreneurship education.
4.Two months after surgical strikes, Lt Gen A K Bhatt appointed Director General of Military Operations
Source: Indian Express
The Appointments Committee of Cabinet (ACC) has appointed Lt-General A K Bhatt as the new director-general of military operations (DGMO).
- It was during the tenure of Lt Gen Singh that India carried out surgical strikes at five separate locations in Pakistan-occupied Kashmir to target terrorist launch pads.
- Bhatt, a Gorkha officer, replaces Lt Gen Ranbir Singh, who has been appointed as the General Officer Commanding (GOC) of the Mathura-based Strike 1 Corps — one of the three assault forces of the army — which is mandated to cross into Pakistan in a short notice.
- The appointment was cleared by the Appointment Committee of the Cabinet, chaired by Prime Minister Narendra Modi. Lt Gen Shokin Chauhan, who headed the Strike 1 Corps, has been appointed as the new chief of the Assam Rifles.
5.Sex ratio at birth on the decline
Source: The Hindu
Sex Ratio at Birth (SRB) continues to worsen in India, falling from 898 in 2013 to 887 in 2014, new data from Civil Registration System (CRS) released by the Office of the Registrar General of India show. The ratio has been declining since 2011 when the figure was 909.
- The SRB based on CRS figures indicate the gap between registered male and female births, calculated as the number of females per thousand males.
- Highest SRB has been reported in Lakshadweep (1043), followed by Andaman and Nicobar Islands (1031) and Arunachal Pradesh (993).
- Lowest SRB has been reported in Manipur (684), Rajasthan (799) and Tamil Nadu (834). These states have worst SRB.
- The level of registration of births with CRS has been improving. In 2014, it is estimated that 88.8% births were registered, up from 85.6 % in 2013.
- 16 States/UTs recorded all births. 14 out of 20 major States crossed the 90% level of registration of births in 2014.
- The new date show that the majority of births in 2014 occurred in an institution i.e. government or private hospital. Institutional delivery accounted for 72% of all births.
6.Gross NPAs of PSBs touch over 6 lakh crores in July-September 2016
The Union Government has announced that the gross non-performing assets (NPAs) of the Public sector banks (PSBs) have touched around 66 lakh 40 thousand in the three months period from July to September 2016.
Steps taken by Government
- The incidence of NPAs is high in sectors like infrastructure, power, road textiles, steel etc. So, the Union Government has taken sector specific measures to tackle the menace of NPAs.
- These measures aim at improving resolution or recovery of bank loans.
- They are enactment of Insolvency and Bankruptcy code, 2016 followed by amendment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and Recovery of Debt due to Banks and Financial Institutions (RDDBFI), Act.
- In addition, six new Debt Recovery Tribunals (DRTs) have been established.
Non-Performing Assets (NPA’s)
- NPAs are loans made by a bank or finance company on which repayments or interest payments are not being made on time.
- Thus, NPAs are any asset of a bank which is not producing any income and are also called non-performing loans.
- The loan is considered to be a NPA once the borrower fails to make interest or principal payments for 90 days.
- In case of Agriculture/Farm Loans, the NPA varies for of Short duration crop loan (interest not paid for 2 crop seasons), Long Duration Crops (interest not paid for 1 Crop season).
Large number of NPAs affects the profitability & liquidity of the banks. It adversely affects the value of bank in terms of market credit and widens assets and liability mismatch. It results in inflating the cost of capital for economic activities and banks may charge higher interest rates on some products to compensate NPAs