National River Conservation Programme (NRCP)

National River Conservation Programme (NRCP) is the centrally sponsored Scheme implemented by the central Government jointly with the State Government on a cost-sharing basis. The pollution abatement works under NRCP presently cover identified polluted stretches of 39 major rivers in 185 towns spread over 20 States in the country.

Highlights of PMEAC Economic Review 2012-13

The Prime Minister’s Economic Advisory Council (PMEAC) under the Chairmanship of C Rangarajan on 23 April 2013 presented the Economic review 2012-13.
Find here the highlights of the Economic Policy Review presented by the Prime Minister’s Economic Advisory Council:

• India’s economy is expected to grow 6.4 percent in the new financial year that began on 1 April 2013.

• PMEAC pegged the WPI inflation at around 6 percent and food inflation, at 8 percent.

• FY13 bank credit growth at 14.1% vs 17% in the year-ago period. Bank credit growth lower due to weak credit demand & tight liquidity.

• Net FDI at 18 billion dollars in FY13. FII inflows at 24 billion dollar in FY13 We expect net FDI inflow at 24 billion dollars and FII at 18 billion dollars for FY14

• The fiscal deficit of the Centre for 2012-13 is estimated to be 5.2% of GDP. It was 520924 crores Rupees in 2012-13 as per revised estimates, and is expected to be 542499 crores Rupees in 2013-14 as per budget estimates.

• Current Account Deficit is estimated to be 94 billion dollars (5.1% of GDP) in 2012-13 and is projected to be 100 billion dollars (4.7% of GDP) in 2013-14.

• Merchandise trade deficit is estimated to be 200 billion dollars (10.9% of the GDP) in 2012-13 and is projected to be 213 billion dollars (9.9% of GDP) in 2013-14.

• Net invisibles earnings are estimated to be 105.8 billion dollars (5.7 % of GDP) in 2012-13 and are projected to be 113 billion dollars (5.3 % of GDP) in 2013-14.

• It is estimated that for 2012-13 the net inflow of FDI was 18 billion dollars (26 billion inbound and 8 billion dollars outbound). For 2013-14 EAC has projected higher inbound flows of the order of 36 billion dollars. Outbound FDI is also expected to increase, resulting in net FDI inflow of 24 billion dollars.

• FII inflows were weak in the first quarter of 2012-13, but picked up in the second and third quarters. For the year as a whole, portfolio inflows are estimated to be close to $24 billion. Portfolio capital flows are projected to be 18 billion dollars in 2013-14.

• The total inflows under the head of loans are estimated to be about 30 billion dollars in 2012-13. This comprises mostly of external commercial borrowings (ECBs) and short-term loans. The projected figure for 2013-14 is $36 billion.

• The total banking capital inflows for 2012-13 are estimated to be $24 billion and are projected to be at 22 billion dollars for 2013-14.

Reserve Bank of India to Start Plastic Money Project on Trial Basis

The Reserve Bank of India on 16 April 2013 announced that it would start the introduction of Plastic Notes in the market on trial basis. The announcement was made by the Deputy Governor of RBI, K.C. Chakrabarty in Mangalore. The Deputy Governor in his announcement informed that the Central Bank would launch the plastic notes the denomination of 10 rupees and will continue with other small denominations depending upon the success of these notes. The introduction of the scheme would start on a trial basis following the mandate of the Union Government to introduce plastic/polymer currency notes of 10 rupees on a field trial in five cities of India. The date for launch of the Plastic Notes was not cleared by the Bank.

NEEPCO granted Miniratna–Category–1 Status

North Eastern Electric Power Corporation (NEEPCO) was conferred with the Miniratna – Category – 1 status by the President of India, Pranab Mukherjee on 8 April 2013. NEEPCO was earlier the schedule ‘A’ Corporation.

Status of Category-I Miniratna Firms

Category-I Miniratna firms can incur the capital expenditure on modernization, new projects as well as equipment purchase without the approval of the Government, up to 500 crore Rupees. The Category-II Miniratna firms, on the other hand, have the financial freedom of spending up to 300 crore Rupees or 50 percent of total net worth, whichever out of these is lower.

NEEPCO’s status after being conferred with Miniratna – Category – 1

NEEPCO was initially the schedule ‘A’ Corporation. After being elevated to Miniratna – Category – 1 status, NEEPCO will have autonomy to take the investment decisions freely without the consent of Ministry of Power.

About NEEPCO

• NEEPCO plays a crucial role in the power sector of North East region. it serves around 50 percent power requirement of this region.

• By 2018, NEEPCO has plans to add 2300 MW of power through the thermal and hydro projects.

• At present, NEEPCO executes 5 projects in North East region with total installed capacity of 917 MW.

List of Maharatna, Navratna and Miniratna CPSEs

Maharatna CPSEs

• 1. Bharat Heavy Electricals Limited

• 2. Coal India Limited

• 3. GAIL (India) Limited

• 4. Indian Oil Corporation Limited

• 5. NTPC Limited

• 6. Oil & Natural Gas Corporation Limited

• 7. Steel Authority of India Limited

Navratna CPSEs

• 1. Bharat Electronics Limited

• 2. Bharat Petroleum Corporation Limited

• 3. Hindustan Aeronautics Limited

• 4. Hindustan Petroleum Corporation Limited

• 5. Mahanagar Telephone Nigam Limited

• 6. National Aluminium Company Limited

• 7. NMDC Limited

• 8. Neyveli Lignite Corporation Limited

• 9. Oil India Limited

• 10. Power Finance Corporation Limited

• 11. Power Grid Corporation of India Limited

• 12. Rashtriya Ispat Nigam Limited

• 13. Rural Electrification Corporation Limited

• 14. Shipping Corporation of India Limited

Miniratna Category - I CPSEs

• 1. Airports Authority of India

• 2. Antrix Corporation Limited

• 3. Balmer Lawrie & Co. Limited

• 4. Bharat Dynamics Limited

• 5. BEML Limited

• 6. Bharat Sanchar Nigam Limited

• 7. Bridge & Roof Company (India) Limited

• 8. Central Warehousing Corporation

• 9. Central Coalfields Limited

• 10. Chennai Petroleum Corporation Limited

• 11. Cochin Shipyard Limited

• 12. Container Corporation of India Limited

• 13. Dredging Corporation of India Limited

• 14. Engineers India Limited

• 15. Ennore Port Limited

• 16. Garden Reach Shipbuilders & Engineers Limited

• 17. Goa Shipyard Limited

• 18. Hindustan Copper Limited

• 19. HLL Lifecare Limited

• 20. Hindustan Newsprint Limited

• 21. Hindustan Paper Corporation Limited

• 22. Housing & Urban Development Corporation Limited

• 23. India Tourism Development Corporation Limited

• 24. Indian Railway Catering & Tourism Corporation Limited

• 25. IRCON International Limited

• 26. KIOCL Limited

• 27. Mazagaon Dock Limited

• 28. Mahanadi Coalfields Limited

• 29. Manganese Ore (India) Limited

• 30. Mangalore Refinery & Petrochemical Limited

• 31. Mishra Dhatu Nigam Limited

• 32. MMTC Limited

• 33. MSTC Limited

• 34. National Fertilizers Limited

• 35. National Seeds Corporation Limited

• 36. NHPC Limited

• 37. Northern Coalfields Limited

• 38. Numaligarh Refinery Limited

• 39. ONGC Videsh Limited

• 40. Pawan Hans Helicopters Limited

• 41. Projects & Development India Limited

• 42. Railtel Corporation of India Limited

• 43. Rashtriya Chemicals & Fertilizers Limited

• 44. RITES Limited

• 45. SJVN Limited

• 46. Security Printing and Minting Corporation of India Limited

• 47. South Eastern Coalfields Limited

• 48. State Trading Corporation of India Limited

• 49. Telecommunications Consultants India Limited

• 50. THDC India Limited

• 51. Western Coalfields Limited

• 52. WAPCOS Limited

Miniratna Category-II CPSEs

• 53. Bharat Pumps & Compressors Limited

• 54. Broadcast Engineering Consultants (I) Limited

• 55. Central Mine Planning & Design Institute Limited

• 56. Ed.CIL (India) Limited

• 57. Engineering Projects (India) Limited

• 58. FCI Aravali Gypsum & Minerals India Limited

• 59. Ferro Scrap Nigam Limited

• 60. HMT (International) Limited

• 61. HSCC (India) Limited

• 62. India Trade Promotion Organisation

• 63. Indian Medicines & Pharmaceuticals Corporation Limited

• 64. M E C O N Limited

• 65. National Film Development Corporation Limited

• 66. National Small Industries Corporation Limited

• 67. P E C Limited

• 68. Rajasthan Electronics & Instruments Limited

FCI Raised 5000 Crore Rupees by Issuing Taxable Bonds

The Food Corporation of India (FCI) raised 5000 crore Rupees by issuing taxable bonds backed by Government of India Guarantee in order to meet the additional working capital requirement. The issue of bonds was opened on 21 March 2013 and closed on 22 March 2013. These bonds are of two tenures- 10 years (300 crore Rupees) and 15 years (4700 crore Rupees). The coupon rate for 10 years was 8.62 percent per annum and 8.80 percent per annum for 15 years. Food Corporation of India (FCI) has the Cash Credit Limit with Consortium of 62 banks.

At present, the Cash Credit Limit is 54495 crore Rupees which is secured by mortgaging entire stock of FCI and guaranteed by Government of India. At present, the interest rate on Cash Credit Limit is 10.79 percent monthly which eventually translates into 11.34 on annual basis. Annual interest saving through issue of this bond will be 127.54 crore Rupees.

CCEA approved Four

Laning of Jorhat to Demow section of NH-37

The Cabinet Committee on Economic Affairs gave its approval for the four laning of the Jorhat-Demow section of National Highway-37 in the state of Assam under the Special Accelerated Road Development Programme in North Eastern Region (SARDP-NE) Phase ‘A’ on Design, Build, Finance, Operate and Transfer (DBFOT) basis in Build-Operate-Transfer (BOT) (Annuity) mode of delivery. The cost is estimated to be 874.69 crore rupees excluding land acquisition and other pre-construction activities. The total length of road will be 80 kilometres approximately. The project will expedite the improvement of infrastructure in the state of Assam and also reduce the time and cost of travel for traffic, particularly heavy traffic, plying between Guwahati to Dibrugarh and Nagaon to Dibrugarh. It will also increase employment potential for local labourers for project activities. The project is covered in the districts of Golaghat, Jorhat, Sivsagar and Dibrugarh and passes through the towns of Numaligarh, Dergaon, Jorhat, Jhanji, Gorisagar, Sivsagar, Demow, Sapan, Maran and Dibrugarh.

CCI slapped fine of 8000 Crore rupees in 19 Cases

Competition Commission of India (CCI) penalised 19 business entities for anti-competitive practices collectively for around 8000 crore Rupees by the end of financial year 2012-13. It was figured out as on 31 March 2013 that CCCI had received 347 cases regarding violations of anti-competitive practices. Out of the 347 registered cases , the Commission had closed 262 cases, while in 28 cases cease and desist orders have been passed, also in other 19 cases, total penalties of 8013 crore rupees was imposed along with cease and desist orders. In view of the Competition Act, the CCI has got the authority to issue cease and desist order to abstain the company from pursuing any anti-competitive practices. Also in another major upshot a total of 55.67 crore rupees of undisbursed funds in the last fiscal have been credited to Consolidated Fund of India. It was calculated that during the 2001-2012, a sum of 637.17 crore rupees had been credited to the Consolidated Fund of India. To deal with the issue of credit in an effective way, the Union government has established Investor Education and Protection Funds (IEPF) by which unclaimed funds on account of dividends, matured deposits, matured debentures and share application money are transferred to the government by the company on completion of seven years.

National Workshop on Grid Integration

The Minister for New & Renewable Energy, Farooq Abdullah inaugurated the National Workshop on Grid Integration of Renewable Energy Sources and Energy Efficiency on 8 April 2013. The workshop discussed the important areas of clean energy development which are grid integration of renewable energy and energy efficiency. The National Workshop on Grid Integration of Renewable Energy Sources and Energy Efficiency was organised in collaboration with United State Department of Energy under the United States 21st Century Power Partnership initiative. Grid planning in the high-renewable energy penetration scenario is of strategic importance. Also, development of smart grids for enabling more efficient, resilient, and safe distribution of power is another area of action.

There are certain highlights under the 21st Century Power Partnership initiative, which are as follows:

• Developing & sharing knowledge on topic relating to expansion of electricity sector

• Strengthening and disseminating these tools to accelerate this transformation

• Improving the capacity of experts and building expertis

• Leveraging all three-knowledge tools and expertise to improve our policies

CCEA

Approved de-control of Sugar

The Cabinet Committee on Economic Affairs (CCEA) on 4 April 2013 decided to de-control sugar and did away the levy on sugar mills and regulated release mechanism. This de-control will raise the subsidy burden to 5300 crore rupees from previous 2700 crore rupees. De-control on sugar will not have an impact on the sugar made available in the Public Distribution System. The de-control of sugar will abolish the rule for sugar mills that makes it mandatory for sugar millers to sell sugar to the Government at a discounted price as well as the limitation on the amount they choose to sell in the open market .

13 Power Projects and 25 Oil & Gas Blocks approved

The Cabinet Committee on Investment on 22 April 2013 cleared 13 power projects that involves investment of 33000 crore rupees. The projects on which the investments will be made include one hydro and two thermal project as well as ten transmission projects. 25 oil and gas blocks with investment commitment of about seven billion US dollars also got approval during the same meet. Of these 16 blocks were given conditional clearances, while nine blocks were approved without any condition.

Approval of these projects was pending due to the objections raised by the Ministry of Defence over national security. During the meet of Cabinet Committee on Investment in New Delhi twenty different power projects that await clearances from the Union Environment and Forest Ministry were also reviewed. The meet was headed by the Prime Minister of India, Dr. Manmohan Singh.