#Economy_Current #PT2020 #2MinRead
NIP part 1/2
National Infrastructure Pipeline Project(NIP)
Announced in 2019
is a group of social and economic infrastructure projects over a period of 5 years(2019 - 2025)
The emphasis would be on ease of living: safe drinking water, access to clean and affordable energy, healthcare for all, modern railway stations, airports, bus terminals and world-class educational institutes etc.
Budget - 102 lakh crore (US$1.4 trillion)
78% projects - by centre and states,
22% projects - by the private sector.
The NIP is a pillar of GoI's aim to become a $5 trillion economy by 2025.
News- The task force on NIP has submitted its final report to the Finance Minister.
NIP part 1/2
National Infrastructure Pipeline Project(NIP)
Announced in 2019
is a group of social and economic infrastructure projects over a period of 5 years(2019 - 2025)
The emphasis would be on ease of living: safe drinking water, access to clean and affordable energy, healthcare for all, modern railway stations, airports, bus terminals and world-class educational institutes etc.
Budget - 102 lakh crore (US$1.4 trillion)
78% projects - by centre and states,
22% projects - by the private sector.
The NIP is a pillar of GoI's aim to become a $5 trillion economy by 2025.
News- The task force on NIP has submitted its final report to the Finance Minister.
#Economy_Current #PT2020
NIP part 2/2
Infrastructure Vision 2025
- To provide affordable and clean energy
- To provide 100% digital coverage to all
- To provide world class quality education.
- To provide housing and water supply
- To double farmers’ income by 2022
NIP part 2/2
Infrastructure Vision 2025
- To provide affordable and clean energy
- To provide 100% digital coverage to all
- To provide world class quality education.
- To provide housing and water supply
- To double farmers’ income by 2022
#Economy_Current #PT2020
Maharatna status to Hindustan Petroleum Corporation Limited and Power Grid Corporation of India
- In October 2019
- by Ministry of Heavy Industry and Public Enterprises
Total Maharatna Public Sector Enterprises (PSUs): 10 nos.
1. Bharat Heavy Electricals Limited (BHEL)
2. Coal India Limited (CIL)
3. Gas Authority of India Limited (GAIL)
4. Indian Oil Corporation Limited (IOCL)
5. National Thermal Power Corporation Limited (NTPC)
6. Oil and Natural Gas Corporation Limited (ONGC)
7. Steel Authority of India Limited (SAIL)
8. Bharat Petroleum Corporation Limited (BPCL)
9. Hindustan Petroleum Corporation Limited (HPCL)
10. Power Grid Corporation of India (PGCI)
Maharatna status to Hindustan Petroleum Corporation Limited and Power Grid Corporation of India
- In October 2019
- by Ministry of Heavy Industry and Public Enterprises
Total Maharatna Public Sector Enterprises (PSUs): 10 nos.
1. Bharat Heavy Electricals Limited (BHEL)
2. Coal India Limited (CIL)
3. Gas Authority of India Limited (GAIL)
4. Indian Oil Corporation Limited (IOCL)
5. National Thermal Power Corporation Limited (NTPC)
6. Oil and Natural Gas Corporation Limited (ONGC)
7. Steel Authority of India Limited (SAIL)
8. Bharat Petroleum Corporation Limited (BPCL)
9. Hindustan Petroleum Corporation Limited (HPCL)
10. Power Grid Corporation of India (PGCI)
#Economy_Current #PT2020 #2MinRead
BharatMarket
- a national e-commerce marketplace
- to be launched by Confederation of All India Traders (CAIT) for all retail traders in collaboration with several technology partners.
- It will provide end-to-end services in the logistics and supply chains, from manufacturers to end consumers.
- It aims to bring 95 per cent of retail traders onboard the platform, who will be the shareholders and the portal will be run exclusively by the traders
BharatMarket
- a national e-commerce marketplace
- to be launched by Confederation of All India Traders (CAIT) for all retail traders in collaboration with several technology partners.
- It will provide end-to-end services in the logistics and supply chains, from manufacturers to end consumers.
- It aims to bring 95 per cent of retail traders onboard the platform, who will be the shareholders and the portal will be run exclusively by the traders
#Economy_Current #PT2020
- Minimum Support Price (MSP) for 49 items under Minor Forest Produce (MFP) has been revised recently.
- The increased Minimum support price (MSP) ranges from 16% to 66%.
- It is revised every 3 years.
Forest products are divided into two parts.
Major Forest Products comprise Pulpwood, Sandalwood, Social Forestry that incudes Fuel and Timber.
Minor Forest Products include the items such as tamarind, curry leaf, Tendu Patta, gallnut, Cane, Soapnut, tree moss and now Bamboo also.
- Minimum Support Price (MSP) for 49 items under Minor Forest Produce (MFP) has been revised recently.
- The increased Minimum support price (MSP) ranges from 16% to 66%.
- It is revised every 3 years.
Forest products are divided into two parts.
Major Forest Products comprise Pulpwood, Sandalwood, Social Forestry that incudes Fuel and Timber.
Minor Forest Products include the items such as tamarind, curry leaf, Tendu Patta, gallnut, Cane, Soapnut, tree moss and now Bamboo also.
#Economy_Current #1MinRead
International Financial Services Centre
It serves customers outside the jurisdiction of domestic economy. It deals with flows of finance, financial products and services across borders.
Examples - London, New York and Singapore
India - GIFT City (Gujarat International Finance Tec-City Co. Ltd - Gandhinagar) set up in 2015 as country first IFSC.
Functions of IFSC
Fund-raising services
Asset management and global portfolio diversification of Mutual funds
Wealth management etc
NEWS - recently central govt has notified that Headquarter of IFSC would be at GIFT City
International Financial Services Centre
It serves customers outside the jurisdiction of domestic economy. It deals with flows of finance, financial products and services across borders.
Examples - London, New York and Singapore
India - GIFT City (Gujarat International Finance Tec-City Co. Ltd - Gandhinagar) set up in 2015 as country first IFSC.
Functions of IFSC
Fund-raising services
Asset management and global portfolio diversification of Mutual funds
Wealth management etc
NEWS - recently central govt has notified that Headquarter of IFSC would be at GIFT City
#2MinRead #Economy_Current
SARFAESI Act 2002
- An effective tool for recovery of bad loans (like NPA).
- allows banks and other financial institution to auction residential or commercial properties (of Defaulter) to recover loans.
- Provides for setting up of asset reconstruction companies (ARCs) and asset securitization companies (SCs) to deal with NPAs.
- Provides the legal framework for securitization activities in India.
- law does not apply to unsecured loans, loans below ₹100,000 or where remaining debt is below 20% of the original principal.
News - Supreme Court Verdict : Co-operative Banks come under the SARFAESI Act and Parliament has legislative competence to provide procedures for recovery of loans under the Sarfaesi Act.
SARFAESI Act 2002
- An effective tool for recovery of bad loans (like NPA).
- allows banks and other financial institution to auction residential or commercial properties (of Defaulter) to recover loans.
- Provides for setting up of asset reconstruction companies (ARCs) and asset securitization companies (SCs) to deal with NPAs.
- Provides the legal framework for securitization activities in India.
- law does not apply to unsecured loans, loans below ₹100,000 or where remaining debt is below 20% of the original principal.
News - Supreme Court Verdict : Co-operative Banks come under the SARFAESI Act and Parliament has legislative competence to provide procedures for recovery of loans under the Sarfaesi Act.
#1MinRead #Economy_Current #PT2020
Asian Infrastructure Investment Bank (AIIB)
- Established in 2016.
- Headquarter - Beijing.
- Members - 78
- It is a multilateral development bank
- Objectives- to improve social and economic outcomes by supporting the building of infrastructure in the Indo-Pacific region(Asia and beyond).
- The Bank was proposed by China in 2013.and it holds the largest shares.
- India is a founder member.
Asian Infrastructure Investment Bank (AIIB)
- Established in 2016.
- Headquarter - Beijing.
- Members - 78
- It is a multilateral development bank
- Objectives- to improve social and economic outcomes by supporting the building of infrastructure in the Indo-Pacific region(Asia and beyond).
- The Bank was proposed by China in 2013.and it holds the largest shares.
- India is a founder member.
#1MinRead #Economy_Current #PT2020
Consol Bonds
- They are also known as perpetual bond
- It is a fixed income security with no maturity date.
- These bonds pay a steady stream of interest payments forever.
- These bonds can be redeemed at issuer's discretion.
- It is often considered a type of equity, rather than debt.
ajor drawback - they are not redeemable
News - Consol Bonds are being debated as an instrument for pooling in resources to fight CoVID-18 pandemic and its aftereffects on economy. ( Used in Post world War 1 economic recovery)
Consol Bonds
- They are also known as perpetual bond
- It is a fixed income security with no maturity date.
- These bonds pay a steady stream of interest payments forever.
- These bonds can be redeemed at issuer's discretion.
- It is often considered a type of equity, rather than debt.
ajor drawback - they are not redeemable
News - Consol Bonds are being debated as an instrument for pooling in resources to fight CoVID-18 pandemic and its aftereffects on economy. ( Used in Post world War 1 economic recovery)
#2MinRead #Economy_Current #PT2020
New Development Bank
- It is a multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa).
- Established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil( with Fortaleza Declaration)
- HQ - Shanghai
- Initial Corpus - $100 billion
- Objective- Promote infrastructure and sustainable development projects in member countries.
- News - Recently, the Finance Minister attended the Special Board of Governors meeting of NDB through video-conference.
New Development Bank
- It is a multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa).
- Established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil( with Fortaleza Declaration)
- HQ - Shanghai
- Initial Corpus - $100 billion
- Objective- Promote infrastructure and sustainable development projects in member countries.
- News - Recently, the Finance Minister attended the Special Board of Governors meeting of NDB through video-conference.
#Economy_Current #PT2020 #2MinRead
Financial Stability and Development Council
- constituted in 2010.
- It is the apex body of sectoral regulators (RBI, SEBI, PFRDA, IRDA, etc) and not a statutory body.
- No separate funds are allocated to Council for undertaking its activities.
- Objective: to strengthen and institutionalise mechanism for maintaining financial stability, promoting financial sector development and enhancing inter-regulatory coordination.
Financial Stability and Development Council
- constituted in 2010.
- It is the apex body of sectoral regulators (RBI, SEBI, PFRDA, IRDA, etc) and not a statutory body.
- No separate funds are allocated to Council for undertaking its activities.
- Objective: to strengthen and institutionalise mechanism for maintaining financial stability, promoting financial sector development and enhancing inter-regulatory coordination.
#Economy_Current #PT2020
Amendment to Essential Commodities Act 1955
- Recently, approved by cabinet
- essentials like cereals, pulses, oilseeds, edible oils, onion and potatoes have been excluded from the Essentials List
Advantages
- transformation of agriculture and raising farmers’ income.
- freedom to produce, hold, move, distribute and supply
- less regulatory interference will attract private sector investment and foreign direct investment into agriculture sector,
- It will help boost investment in cold storages and modernization of food supply chain.
Amendment to Essential Commodities Act 1955
- Recently, approved by cabinet
- essentials like cereals, pulses, oilseeds, edible oils, onion and potatoes have been excluded from the Essentials List
Advantages
- transformation of agriculture and raising farmers’ income.
- freedom to produce, hold, move, distribute and supply
- less regulatory interference will attract private sector investment and foreign direct investment into agriculture sector,
- It will help boost investment in cold storages and modernization of food supply chain.
#Economy_Current #PT2020 #2MinRead
Border Adjustment tax
- It is a duty that is imposed on imports in addition to the customs levy.
- It is charged on goods or services in accordance with the destination principle of taxation.
- seeks to promote “equal conditions of competition” for foreign and domestic companies
News - Recently a NITI Ayog member has favoured BAT, thus created a debate on a policy making.
Border Adjustment tax
- It is a duty that is imposed on imports in addition to the customs levy.
- It is charged on goods or services in accordance with the destination principle of taxation.
- seeks to promote “equal conditions of competition” for foreign and domestic companies
News - Recently a NITI Ayog member has favoured BAT, thus created a debate on a policy making.
#Economy_Current #PT2020
Adjusted Gross Revenue (AGR)
- It is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
- It is divided into spectrum usage charges(around 3-5% and licensing fees(around 8%).
- Charges are calculated based on all revenues earned by a telco – including non-telecom related sources such as deposit interests and asset sales.
(As per DoT and Supreme Court judgement)
Adjusted Gross Revenue (AGR)
- It is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
- It is divided into spectrum usage charges(around 3-5% and licensing fees(around 8%).
- Charges are calculated based on all revenues earned by a telco – including non-telecom related sources such as deposit interests and asset sales.
(As per DoT and Supreme Court judgement)
#Economy_Current #PT2020 #2MinRead
National Financial Reporting Authority (NFRA)
- Constituted in 2018 under the Companies Act, 2013.
- It is an independent regulator for enforcement of auditing standards so as to enhance investor and public confidence in financial disclosures of companies.
Composition:
Chairperson - appointed by the Central Govt
Members - max 15
Functions
- To Recommend the centra govt on accounting and auditing policies and standards to be adopted by companies
- Monitor and enforce compliance with accounting standards and auditing standards
- It can probe listed companies and those unlisted public companies( paid-up capital of Rs 500 crore or annual turnover of at least Rs 1,000 crore.)
- It can also investigate professional misconduct committed by members of the Institute of Chartered Accountants of India (ICAI)..
National Financial Reporting Authority (NFRA)
- Constituted in 2018 under the Companies Act, 2013.
- It is an independent regulator for enforcement of auditing standards so as to enhance investor and public confidence in financial disclosures of companies.
Composition:
Chairperson - appointed by the Central Govt
Members - max 15
Functions
- To Recommend the centra govt on accounting and auditing policies and standards to be adopted by companies
- Monitor and enforce compliance with accounting standards and auditing standards
- It can probe listed companies and those unlisted public companies( paid-up capital of Rs 500 crore or annual turnover of at least Rs 1,000 crore.)
- It can also investigate professional misconduct committed by members of the Institute of Chartered Accountants of India (ICAI)..
#Economy_Current #PT2020
1. V Kamath Committee
- constituted by the RBI
- to make recommendations on norms for the resolution of COVID-19 related stressed loans.
2. Kavkaz 2020
- It is the Russian strategic command-post exercise.
- India will take part in the exercise next month.
1. V Kamath Committee
- constituted by the RBI
- to make recommendations on norms for the resolution of COVID-19 related stressed loans.
2. Kavkaz 2020
- It is the Russian strategic command-post exercise.
- India will take part in the exercise next month.
#Economy_Current #PT2020
Business confidence index
- By National Council for Applied Economic Research (NCAER)
- on a quarterly basis since 1991
- It tracks the business sentiments of around 600 Indian companies to compute the composite index.
- It stood at 46.4 in the first quarter of 2020-21, a drop of 40.1 per cent from its level of 77.4 in the previous quarter.
- It fell 62 per cent in the June 2020 quarter on a year-on-year (y-o-y) basis,
Business confidence index
- By National Council for Applied Economic Research (NCAER)
- on a quarterly basis since 1991
- It tracks the business sentiments of around 600 Indian companies to compute the composite index.
- It stood at 46.4 in the first quarter of 2020-21, a drop of 40.1 per cent from its level of 77.4 in the previous quarter.
- It fell 62 per cent in the June 2020 quarter on a year-on-year (y-o-y) basis,
#PT2021 #Economy_Current
New Development Bank
News
- It has approved infrastructure projects worth 741 million dollars in India.
- a multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa).
- established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil.
- Headquarter - Shanghai, China.
- Aim - to foster greater financial and development cooperation among the five emerging markets.
In 2018 received observer status in the United Nations General Assembly.
Voting:
One country one vote.
No veto power.
New Development Bank
News
- It has approved infrastructure projects worth 741 million dollars in India.
- a multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa).
- established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil.
- Headquarter - Shanghai, China.
- Aim - to foster greater financial and development cooperation among the five emerging markets.
In 2018 received observer status in the United Nations General Assembly.
Voting:
One country one vote.
No veto power.
#PT2021 #Economy_Current
NBFC- MFIs
NBFC MFI is a non-deposit taking NBFC (other than a company licensed u/s 25 of the Indian Companies Act, 1956) that meets the following conditions:
1. Minimum Net Owned Funds (NOF) of Rs.5 crore. (Rs. 2 crore for the North Eastern Region)
2. At least 85% of its Total Net Assets are in the nature of “Qualifying Assets.”
NBFC- MFIs
NBFC MFI is a non-deposit taking NBFC (other than a company licensed u/s 25 of the Indian Companies Act, 1956) that meets the following conditions:
1. Minimum Net Owned Funds (NOF) of Rs.5 crore. (Rs. 2 crore for the North Eastern Region)
2. At least 85% of its Total Net Assets are in the nature of “Qualifying Assets.”