arthapedia ies concepts

8/20/2019 Arthapedia IES Concepts

1/156

INDIAN ECONOMY - CONCEPTS(Source: http://www.arthapedia.in/i ndex.php?title=Home_Page)

Abuse of Dominance

This is a widely known term and has been explicitly incorporated in competition legislation ofvarious countries. It refers to an anticompetitive business practice in which a dominant firm mayengage in order to maintain or strengthen its position in the market. Such business practices bythe firm may be considered restricting competition in the market. The different types of business practices that are considered as being abusive vary across countries as well as on a case by case basis. The business practices which have been contested in actual cases in different countries, notalways with legal success, have included the following but not limited to: charging unreasonableor excess prices, price discrimination, predatory pricing, price squeezing by integrated firms,refusal to deal/sell, tied selling or product bundling and pre-emption of facilities.

As part of liberalization and on recommendation of high powered Raghvan Committee, theCompetition Act, 2002 was enacted in India. Before the commencement of the 2002 Act, this phrase was not relevant in Indian context. Now, abuse of dominance is covered under section 4of the Competition Act, 2002. in India, which has come into force from May 20, 2009. Abuse ofdominance in Indian law has similar meaning as in other competition legislations. The said provision is applicable to all enterprises including public sector enterprises and Government. Thesaid Act vests power in Competition Commission of India to investigate and inquire intoinstances of abuse of dominance and correct/penalize enterprise behaviour and help establish acompetitive market. Commission has started receiving many cases relating to various aspects ofabuse of dominance.

Abuse is stated to occur when an enterprise or a group of enterprises uses its dominant position(As per Competition Act 2002, dominant position is position of strength enjoyed by an enterprise

in a relevant market, which enables it to operate independently of competitive forces prevailingin the relevant market; or affect its competitors or consumers or the relevant market in its favour ) in the relevant market in an exclusionary or/and an exploitative manner. Such practicesshall constitute abuse only when adopted by an enterprise enjoying dominant position in therelevant market in India.

References

Competition Commission of India, Advocacy Booklet Series 5, Abuse of Dominance, March 2011

Agricultural Census

Agricultural Census, which is conducted every five years in India. It is the largest countrywidestatistical operation undertaken by Ministry of Agriculture, for collection of data on structure ofoperational holdings by different size classes and social groups. Primary (fresh data) andsecondary (already published) data on structure of Indian agriculture are collected under thisoperation with the help of State Governments. The first Agricultural Census in the country wasconducted with reference year 1970-71.

http://arthapedia.in/index.php?title=Abuse_of_Dominancehttp://arthapedia.in/index.php?title=Abuse_of_Dominancehttp://arthapedia.in/index.php?title=Abuse_of_Dominancehttp://arthapedia.in/index.php?title=Abuse_of_Dominance


2/156

Agricultural Census is carried out as a Central Sector Scheme under which 100% financialassistance is provided to States/Union Territories. Agricultural Census operation is carried out inthree phases.

During Phase-I, a list of all holdings with data on area, gender and social group of the holder is prepared with the help of listing schedule. During Phase-II detailed data on tenancy, land use,

irrigation status, area under different crops (irrigated and un-irrigated) are collected in holdingschedule. Phase-III, which is called as Input Survey, relates to collection of data of input useacross various crops, States and size groups of holdings, in addition to data on agriculture credit,implements and machinery, livestock and seeds.

Eighth Agricultural Census with reference year 2005-06 and seventh Input Survey 2006-07 have been undertaken in the country. The results of Agricultural Census 1995-96 & 2000-01, InputSurvey 1996-97 & 2001-02 and various reports of Census are available at http://agcensus.nic.in. Data base for Agricultural Censuses from 1995-96 to 2005-06 may be accessedathttp://agcensus.dacnet.nic.in/nationalholdingtype.aspx.

Agricultural Labourers

A person who works on another person's land for wages in money or kind or share is regarded asan agricultural labourer. She or he has no risk in the cultivation, but merely works on another person's land for wages. An agricultural labourer has no right of lease or contract on land onwhich she/he works.

Agricultural Marketing Information Network (AGMARKNET)

Agricultural Marketing Information Network (AGMARKNET) was launched in March 2000 bythe Union Ministry of Agriculture. The Directorate of Marketing and Inspection (DMI), under

the Ministry, links around 7,000 agricultural wholesale markets in India with the StateAgricultural Marketing Boards and Directorates for effective information exchange. This e-governance portal AGMARKNET, implemented by National Informatics Centre (NIC),facilitates generation and transmission of prices, commodity arrival information fromagricultural produce markets, and web-based dissemination to producers, consumers, traders, and policy makers transparently and quickly.

The AGMARKNET website (http://www.agmarknet.nic.in) is a G2C e-governance portal thatcaters to the needs of various stakeholders such as farmers, industry, policy makers and academicinstitutions by providing agricultural marketing related information from a single window. The portal has helped to reach farmers who do not have sufficient resources to get adequate market

information. It facilitates web- based information flow, of the daily arrivals and prices ofcommodities in the agricultural produce markets spread across the country. The data transmittedfrom all the markets is available on the AGMARKNET portal in 8 regional languages andEnglish. It displays Commodity-wise, Variety-wise daily prices and arrivals information from allwholesale markets. Various types of reports can be viewed including trend reports for prices andarrivals for important commodities. Currently, about 1,800 markets are connected and work is in progress for another 700 markets. The AGMARKNET portal now has a database of about 300commodities and 2,000 varieties.

http://arthapedia.in/index.php?title=Agricultural_Censushttp://arthapedia.in/index.php?title=Agricultural_Censushttp://arthapedia.in/index.php?title=Agricultural_Censushttp://agcensus.nic.in/http://agcensus.nic.in/http://agcensus.nic.in/http://agcensus.dacnet.nic.in/nationalholdingtype.aspxhttp://agcensus.dacnet.nic.in/nationalholdingtype.aspxhttp://agcensus.dacnet.nic.in/nationalholdingtype.aspxhttp://arthapedia.in/index.php?title=Agricultural_Labourershttp://arthapedia.in/index.php?title=Agricultural_Labourershttp://arthapedia.in/index.php?title=Agricultural_Labourershttp://www.agmarknet.nic.in/http://www.agmarknet.nic.in/http://www.agmarknet.nic.in/http://www.agmarknet.nic.in/http://arthapedia.in/index.php?title=Agricultural_Labourershttp://agcensus.dacnet.nic.in/nationalholdingtype.aspxhttp://agcensus.nic.in/http://arthapedia.in/index.php?title=Agricultural_Census


3/156

Directorate of Marketing and Inspection (DMI) has liaison with the State Agricultural MarketingBoards and Directorates for Agricultural Marketing Development in the country. AgriculturalProduce Market Committee (APMC) displays the prices prevailing in the market on the notice boards and broadcasts this information through All India Radio etc. This information is alsosupplied to State & Central Government from important markets. The statistics of arrival, sales,

prices etc. are generally maintained by APMCs.Future development involves linking all the agricultural wholesale markets in the country andestablishing strategic alliances with government and non-government organisations todisseminate information to the farmers who operate in these markets. The database developedunder AGMARKNET would also be linked to other agricultural databases, for instance, on area, production, yield of crops, land use, cost of cultivation, agriculture exports and imports, and soon, to evolve a data warehouse. This would provide a sound base for planning demand-drivenagriculture production. AGMARKNET is also expected to play a crucial role in enabling e-commerce in agricultural marketing.

The information being disseminated through the AGMARKNET portal includes:

Prices and Arrivals (Daily Max, Min, Modal, MSP; Weekly/ monthly prices/arrivalstrends; Future prices from 3 National commodity exchanges)

Grades and Standards

Commodity Profiles (Paddy/Rice, Bengal Gram, Mustard-Rapeseed, Red Gram,Soybean, Wheat, Groundnut, Sunflower, Black Gram, Sesame, Green Gram, Potato, Maize,Jowar, Cotton, Grapes, Chilies, Mandarin Orange etc)

Market Profiles (Contact details, rail/road connectivity, market charges, infrastructurefacilities, revenue etc.)

Other Reports (Best Marketing Practices, Market Directory, Scheme Guidelines, DPRs ofTerminal Markets etc.)

Research Studies Companies involved in Contract Farming

Schemes of DMI for strengthening Agricultural Marketing Infrastructure

This portal helps in reducing the information asymmetry in agricultural prices and thus is ofimmense use to stakeholders.

References

1. http://agmarknet.nic.in/index.html

2. http://www.Agricoop.nic.in

Agricultural Regions of India

There are five agricultural regions in the country viz ;

Rice region: This extends from the eastern part to include a very large part o the north-eastern and south-eastern India with another strip along the western coast.

Wheat region: This extends to most of the northern, western and central India.

http://arthapedia.in/index.php?title=Agricultural_Marketing_Information_Network_(AGMARKNET)http://arthapedia.in/index.php?title=Agricultural_Marketing_Information_Network_(AGMARKNET)http://arthapedia.in/index.php?title=Agricultural_Marketing_Information_Network_(AGMARKNET)http://agmarknet.nic.in/index.htmlhttp://agmarknet.nic.in/index.htmlhttp://www.agricoop.nic.in/http://www.agricoop.nic.in/http://www.agricoop.nic.in/http://agmarknet.nic.in/index.htmlhttp://arthapedia.in/index.php?title=Agricultural_Marketing_Information_Network_(AGMARKNET)


4/156

Millet-Sorghum region: This covers Rajasthan, Madhya Pradesh and the DeccanPlateau in the centre of the Indian peninsula.

Temperate Himalayan Region: This region is spread over Kashmir, Himachal Pradesh,Uttarakhand and some adjoining areas. Here potatoes are as important as a cereal crops(which are mainly maize and rice) and the tree-fruits form a large part of agricultural

production. Plantation crops region: In Assam and the hills of Southern India tea is produced.

Coffee is produced in the hills of the western peninsular India. Rubber is grown in Keralaand some of the North-Eastern States like Tripura. Spices grown in Kerala, parts ofKarnataka and Tamil Nadu.

References

1. Ministry of Agriculture write-ups

Appraisal of Plan Schemes (Union Government)

The Union Government has constituted a mechanism of appraisal of public investment projects before they are approved by the Cabinet or the designated competent authority. Schemesinvolving public expenditure, which have been included in the Annual Plan of a Ministry aredetailed in a project report (DPR) based on the guidelines laid down by the Department ofExpenditure, Ministry of Finance.(http://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/guideline_formulation_app_ap prov_01042010.pdf )

When the project or scheme is complex, Ministries employ technical consultants to prepare theDPRs in consultation with the concerned Ministry. The DPR justifies the need for the project/scheme, considers all alternative approaches that can be used, and proposes the best

possible way to achieve the targets, while at the same time ensuring value for money in publicexpenditure.

The Project Appraisal and Management Division (PAMD) of Planning Commission scrutinizesthis DPR to see whether the scheme is financially viable. Inputs on the technical feasibility of thescheme are provided by the concerned technical divisions in Planning Commission. Concurrentlyand independently, the Plan Finance II Division in Department of Expenditure also appraises thetechnical feasibility and financial viability of the scheme. Care is taken to ensure that the designof the scheme is robust by studying the level of preparedness of the implementing agency toexecute the scheme within the proposed timeframe, the break-up and basis of the cost estimatesmade, the sources of financing considered, the phasing of investment required and the rateof return expected on this investment. Both these appraisal agencies do a sensitivity analysis on

the critical parameters of the scheme to ascertain the degree of risk involved.

The Union Government has delegated financial powers to Ministries to appraise and approverelatively smaller scaled projects. However larger and more complex projects or those whichinvolve setting up of an autonomous body are appraised either in the Public Investment Board(PIB) or the Expenditure Finance Commission (EFC) where Secretary, Expenditure chairs ameeting of all stakeholder Ministries. In this meeting the appraisal reports of PAMD and Plan

http://arthapedia.in/index.php?title=Agricultural_Regions_of_Indiahttp://arthapedia.in/index.php?title=Agricultural_Regions_of_Indiahttp://arthapedia.in/index.php?title=Agricultural_Regions_of_Indiahttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/guideline_formulation_app_approv_01042010.pdfhttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/guideline_formulation_app_approv_01042010.pdfhttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/guideline_formulation_app_approv_01042010.pdfhttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/guideline_formulation_app_approv_01042010.pdfhttp://arthapedia.in/index.php?title=Appraisal_of_Plan_Schemes_(Union_Government)http://arthapedia.in/index.php?title=Appraisal_of_Plan_Schemes_(Union_Government)http://arthapedia.in/index.php?title=Appraisal_of_Plan_Schemes_(Union_Government)http://arthapedia.in/index.php?title=Appraisal_of_Plan_Schemes_(Union_Government)http://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/guideline_formulation_app_approv_01042010.pdfhttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/guideline_formulation_app_approv_01042010.pdfhttp://arthapedia.in/index.php?title=Agricultural_Regions_of_India


5/156

Finance II are discussed and a final view is taken on whether the project/scheme may berecommended (with or without conditions) to the Cabinet for consideration and approval.

The PIB and EFC have a similar function viz. appraisal of plan projects/schemes involving public expenditure. However, in PIB, cases ( mostly from Public Sector Undertakings) whichhave a healthy financial return (where the Financial Internal Rate of Return is above a threshold

level of at least 12 per cent) are considered while the EFC considers cases, where the financialreturn may not be high but where the projects/schemes have considerable social welfare benefitsand the Economic Internal Rate of Return (EIRR) is very high.

Public investment projects of the Railways are appraised by the Expanded Board of Railways,under the Chairman, Railway Board. Scientific Ministries have also been delegated the power toappraise their schemes under the chairmanship of the concerned Secretary of the Ministry.Planning Commission and Department of Expenditure are also represented during the appraisal process. Profitable Public sector undertakings/enterprises (Navratnas and Mini ratnas) also havegreater flexibility in their investment decisions but if they require budgetary support, they willhave to go through the PIB process.

PIB/EFC also examine prior approved cases where cost estimates have escalated considerablyduring the project implementation. In such cases, the revised cost estimates are appraised forobtaining approval from the competent authority.

References

For other exemptions, financial delegation, composition of PIB/EFC and for further details, a compendium serves asa ready reckoner. (http://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/CompofImpCirc.pdf )

Appropriation

According to Article 114 of the Indian constitution, no money can be withdrawn from the

Consolidated Fund of India to meet specified expenditure except under an appropriation made byLaw. Similarly, State (sub-national) Governments can also draw from their Consolidated Fundsonly after an appropriation act is passed. Every year, after budgetary estimates are approved, anAppropriation Bill is passed by the Parliament/state legislature and then it is presented to thePresident/Governor. After the assent by the President/governor to the bill, it becomes an Act.However, if during the course of the financial year, the funds so appropriated are found to beinsufficient, the Constitution provides for seeking approval from the Parliament or StateLegislature for supplementary grants.

Appropriation Accounts present the total amount of funds (original and supplementary)authorised by the Parliament/State legislature in the budget vis-a-vis the actual expenditureincurred against each head of expenditure. The Office of the Comptroller and Auditor General of

India reports to the Union and State Legislatures any discrepancies that occur between theamounts appropriated for a particular head of expenditure and what was actually spent at the endof the financial year. These reports provide an indication of unrealistic budget estimates made byvarious departments. Any expenditure in excess of what was approved requires regularization bythe Parliament/State Legislature.

http://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/CompofImpCirc.pdfhttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/CompofImpCirc.pdfhttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/CompofImpCirc.pdfhttp://arthapedia.in/index.php?title=Appropriationhttp://arthapedia.in/index.php?title=Appropriationhttp://arthapedia.in/index.php?title=Appropriationhttp://arthapedia.in/index.php?title=Appropriationhttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance2/CompofImpCirc.pdf


6/156

Some expenditure of Government (e.g. public debt repayments, expenditure incurred on theJudiciary etc.) is not voted by the Legislature and such expenditure is ‘Charged’ on ConsolidatedFund under Article 112 (3) of the Constitution and is called Charged Appropriation.

All other expenditure is required under Article 113 (2) of the Constitution to be voted by theLegislature and is called voted grant.

Assigned Revenue

The term is used to refer to various tax/duty/cess/surcharge/levy etc., proceeds of which are(traditionally) collected by State Government (on behalf of) local bodies viz.,Panchayat/Municipality and (subsequently) adjusted with/assigned to them. Collection of suchrevenue is governed by relevant Act(s) administered by Panchayat/Municipality.

Typical examples of assigned revenue include entertainment tax, surcharge on stamp duty, localcess/surcharge on land revenue, lease amount of mines and minerals, sale proceeds of socialforestry plantations etc. State Finance Commissions recommend devolution of assigned revenue

to local bodies on objective criteria, which may be specified by them in specific context.

Association of State Road Transport Undertakings (ASRTU)

Association of State Road Transport Undertakings (ASRTU) came into existence on 13thAugust, 1965 with the objective of providing a forum for exchange of ideas on best practices ofState Road Transport Undertakings (SRTUs). With 58 members, approximately 1, 15,000 busesand serving 65 million passengers a day, ASRTU constitutes the backbone of mobility for theurban and rural population across India. ASRTU plays an important role in promoting affordablemode of public transport for socio-economic development of country. Public SRTUs are backbone of country and thus ASRTU is committed to provide all necessary help to them in their

production, quality monitoring and to address to their common problems. Recently, ASRTUconferred Productivity Award for Year 2008-09 to the State Express Transport Corporation(Tamil Nadu) for highest performance in Vehicle Productivity.

AYUSH

AYUSH signifies a combination of alternative system of Medicine, which was earlier known asIndian System of Medicine. AYUSH includes Ayurveda, Yoga and Naturopathy, Unani, Siddhaand Homeopathy. The objective of AYUSH is to promote medical pluralism and to introducestrategies for mainstreaming the indigenous systems of medicine. In India, at the Union

Government level, AYUSH activities are coordinated by Department of AYUSH under Ministryof Health & Family Welfare. Most of these medical practices originated in India and outside, butgot adopted in India in the course of time.

‘Back -to-Back’ Loans

State Governments in India cannot access external sources of finance directly. The 12th FinanceCommission recommended the transfer of external assistance to State Governments in India by

http://arthapedia.in/index.php?title=Assigned_Revenuehttp://arthapedia.in/index.php?title=Assigned_Revenuehttp://arthapedia.in/index.php?title=Assigned_Revenuehttp://arthapedia.in/index.php?title=Association_of_State_Road_Transport_Undertakings_(ASRTU)http://arthapedia.in/index.php?title=Association_of_State_Road_Transport_Undertakings_(ASRTU)http://arthapedia.in/index.php?title=Association_of_State_Road_Transport_Undertakings_(ASRTU)http://arthapedia.in/index.php?title=AYUSHhttp://arthapedia.in/index.php?title=AYUSHhttp://arthapedia.in/index.php?title=AYUSHhttp://arthapedia.in/index.php?title=AYUSHhttp://arthapedia.in/index.php?title=Association_of_State_Road_Transport_Undertakings_(ASRTU)http://arthapedia.in/index.php?title=Assigned_Revenue


7/156

the Union Government on a ‘Back -to-Back’ basis. This recommendation was accepted by theGovernment of India for general category states and the arrangement came into effect from April1, 2005. For special category states ( Northeastern states, Uttarakhand, Himachal and J&K),external borrowings are in the form of 90 per cent grant and 10 per cent loan from the UnionGovernment.

Passing loans on ‘Back -to-Back’ basis to State Governments implies that States would faceidentical terms and conditions (including concessional interest rates, grace period and maturity profile, commitment charges and amortization schedules) on account of their access to financefrom bilateral and multilateral sources, as is faced by the Union Government.

This arrangement entails exposure of States to uncertain movements in international rates ofinterest (as multilateral agencies viz. IBRD benchmark their interest rates to a reference rate viz.the LIBOR) and currency exchange rates. As per the ‘Back -to-Back’ loan transfer arrangement,states would have to face currency risk since principal repayments and interest payments on suchloans to external agencies are designated in foreign currencies. In case of adverse exchange ratemovement(s) larger rupee provisions may be required to meet debt service obligations that maynegatively impact the fiscal health of the state concerned.

Thus, direct exposure to interest risk and currency risk carry implications for debt service burdenand therefore for the fiscal status of sub national Governments in India. Capacity building infinance departments of State Governments is required to ensure that debt is prudently managed.

Base Effect

The base effect refers to the impact of the rise in price level (i.e. last year’s inflation) in the

previous year over the corresponding rise in price levels in the current year (i.e., currentinflation): if the price index had risen at a high rate in the corresponding period of the previousyear leading to a high inflation rate, some of the potential rise is already factored in, therefore a

similar absolute increase in the Price index in the current year will lead to a relatively lowerinflation rates. On the other hand, if the inflation rate was too low in the corresponding period ofthe previous year, even a relatively smaller rise in the Price Index will arithmetically give a highrate of current inflation. For example:

Price Index Inflation 2007 2008 2009 2010 2008 2009 2010

Jan 100 120 140 160 20 16.67 14.29

The index has increased by 20 points in all the three years – 2008, 2009, 2010. However, theinflation rate (calculated on year-on-year basis) tends to decline over the three years from 20% in2008 to 14.29% in 2010. This is because the absolute increase of 20 points in the price index in

each year increases the base year price index by an equivalent amount, while the absoluteincrease in price index remains the same. Remember, year-on-year inflation is calculated as:

(Current Price Index – Last year’s Price Index) CurrentInflationRate =

--------------------------------------------------------------------- * 100

http://arthapedia.in/index.php?title=%E2%80%98Back-to-Back%E2%80%99_Loanshttp://arthapedia.in/index.php?title=%E2%80%98Back-to-Back%E2%80%99_Loanshttp://arthapedia.in/index.php?title=%E2%80%98Back-to-Back%E2%80%99_Loanshttp://arthapedia.in/index.php?title=%E2%80%98Back-to-Back%E2%80%99_Loanshttp://arthapedia.in/index.php?title=%E2%80%98Back-to-Back%E2%80%99_Loanshttp://arthapedia.in/index.php?title=%E2%80%98Back-to-Back%E2%80%99_Loanshttp://arthapedia.in/index.php?title=Base_Effecthttp://arthapedia.in/index.php?title=Base_Effecthttp://arthapedia.in/index.php?title=Base_Effecthttp://arthapedia.in/index.php?title=Base_Effecthttp://arthapedia.in/index.php?title=%E2%80%98Back-to-Back%E2%80%99_Loanshttp://arthapedia.in/index.php?title=%E2%80%98Back-to-Back%E2%80%99_Loans


8/156

Last year’s Price Index

Basic Road Statistics of India (BRSI)

The Basic Road Statistics of India is a premier publication on the road sector providing

comprehensive information on different categories of road in the country, at the National, Stateand Local (municipalities and panchayat) levels. It is brought out regularly every year byTransport Research Wing (TRW) of the Ministry of Road Transport & Highways. It is vital tohave comprehensive data on road infrastructure to assist in policy planning and investmentdecision. The latest publication ‘Basic Road Statistics of India’ provides detailed data spreadover 11 Sections comprising of a Section each on Road Length (Total and Surfaced) All Indiaand State-wise, National Highways, State Highways, Other Public Works Department Roads,Zilla Parishad Roads, Village Panchayat Roads, CD/Panchayat Samiti Roads, Urban Roads,Project Roads, Plan Outlay and Expenditure on Roads and Miscellaneous information on National Highways & PMGSY. Annexed tables list out major terms and definitions relevant tothe road sector.

Basic Port Statistics of India (BPSI)

The Basic Port Statistics of India is a premier publication which is brought out every year byTransport Research Wing. It intends to provide comprehensive and analytical descriptions of thedifferent facets of the maritime transport activity. It highlights the volume and composition ofseaborne trade across the major ports (12) and minor ports (199) of India in the backdrop ofglobal and domestic macro developments. The major ports in India are administered by thecentral shipping ministry while minor ports are administered by relevant department or ministriesof the coastal states.

The latest publication of ‘Basic Port Statistics of India, 2008-09’ provides detailed data spreadover three sections, comprising section-I pertaining to Macro Economic Development &Performance of Indian Ports and the section-II deals with Tables on vital port statistics, current port statistics, time series statistics, international port statistics and general statistics and section-III consist of Appendices.

The contents of the latest publication highlighted that India has a coast-line of around 7,517 kmswith 12 major ports which handle about 71% of the maritime cargo traffic of the country in2008-09. Amongst the major ports, Kandla Port accounted for the highest share of 13.6% in thetotal cargo traffic at all major ports during 2008-09. According to the commodity composition ofthe total traffic at Indian ports, POL and its product form the single largest commodity,constituting 36.6% of the total seaborne traffic followed by ore (17.3%) and coal (13.2%) in

2008-09.

Bid Rigging

Bid rigging is a widely known term across the world. Bidding, as a practice, is intended to enablethe procurement of goods or services on the most favourable terms and conditions. Invitation of bids is resorted to both by Government (and Government entities) and private bodies

http://arthapedia.in/index.php?title=Basic_Road_Statistics_of_India_(BRSI)http://arthapedia.in/index.php?title=Basic_Road_Statistics_of_India_(BRSI)http://arthapedia.in/index.php?title=Basic_Road_Statistics_of_India_(BRSI)http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=262&lid=265http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=262&lid=265http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=262&lid=265http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=263&lid=266http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=263&lid=266http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=263&lid=266http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=277&lid=279http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=277&lid=279http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=277&lid=279http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=277&lid=279http://arthapedia.in/index.php?title=Basic_Port_Statistics_of_India_(BPSI)http://arthapedia.in/index.php?title=Basic_Port_Statistics_of_India_(BPSI)http://arthapedia.in/index.php?title=Basic_Port_Statistics_of_India_(BPSI)http://arthapedia.in/index.php?title=Basic_Port_Statistics_of_India_(BPSI)http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=277&lid=279http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=277&lid=279http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=263&lid=266http://shipping.nic.in/index1.php?lang=1&level=2&sublinkid=262&lid=265http://arthapedia.in/index.php?title=Basic_Road_Statistics_of_India_(BRSI)


9/156

(companies, corporations, etc.). But the objective of securing the most favourable prices andconditions may be negated if the prospective bidders collude or act in concert. Such collusive bidding called “bid rigging” contravenes the very purpose of inviting tenders and is inherentlyanticompetitive. If bid rigging takes place in Government tenders, it is likely to have severeadverse effects on its purchases and on cost effectiveness of public spending and wastes public

resources. It is therefore important that the procurement process is highly competitive and notaffected by practices such as collusion, bid rigging, fraud and corruption. All over the world, bidrigging or collusive bidding is treated with severity in the law as reflected by the presumptiveapproach.

Collusive bidding or bid rigging may occur in various ways by which firms coordinate their bidson procurement or project contracts. Origin of bid rigging is as old as system of procurement.However, an apt codification on the same may be the Sherman Act, 1890 of the United States,which is considered the first codified law to look into agreements leading to bid rigging.Governments are most often the target of bid rigging. Bid rigging is one of the most widely prosecuted forms of collusion. Bid rigging may take various forms such as bid suppression,complimentary bidding, bid rotation, and sub contracting etc.

In India, the Competition Act, 2002 specifically prohibits collusive bidding (direct or indirect)under Section 3 (3) d. It is one of the four horizontal agreements that shall to be presumed tohave appreciable adverse effect on competition (AAEC). The explanation to sub-section (3) ofSection 3, of the Competition Act, 2002 defines “bid rigging” as “any agreement, between

enterprises or persons referred to in sub-section (3) engaged in identical or similar production ortrading of goods or provision of services, which has the effect of eliminating or reducingcompetition for bids or adversely affecting or manipulating the process for bidding.”

Reducing collusion in public procurement requires strict enforcement of competition laws andthe education of public procurement agencies at all levels of government to help them designefficient procurement processes and detect collusion.

References

1. Competition Commission of India, Advocacy Booklet Series 4, Provision relating to Bid Rigging, March

2011

Broad Based Fund

Broad based fund means a fund established or incorporated outside India, which has at least 20investors with no single individual investor holding more than 49 percent of the shares or units ofthe fund. If the broad based fund has institutional investor(s), then it is not necessary for the fundto have 20 investors. Further, if the broad based fund has an institutional investor who holdsmore than 49 percent of the shares or units in the fund, then the institutional investor must itself be a broad based fund.

In India, the following entities proposing to invest on behalf of broad based funds, are eligible to be registered as FIIs:

(1).Asset Management Companies (2).Investment Manager/Advisor (3).Institutional PortfolioManagers (4).Trustee of a Trust and (5).Bank

http://arthapedia.in/index.php?title=Bid_Rigginghttp://arthapedia.in/index.php?title=Bid_Rigginghttp://arthapedia.in/index.php?title=Bid_Rigginghttp://arthapedia.in/index.php?title=Bid_Rigging


10/156

Budget Making Exercise in a Federal Set up

Within the Five-Year Plan for each year an Annual Plan is drawn up detailing the plan of actionduring the year. Around October-November every year Planning Commission circulates a

detailed proforma to the Central Ministries and State Governments requesting for information onthe progress made in implementing plan schemes and the allocation proposed for implementingthe schemes in the ensuing plan year. On receipt of the information the Central Ministries areinvited to the Planning Commission to discuss their proposals after which the head of the subjectdivision in the Planning Commission and the nodal officer representing the Ministry sign astatement showing the plan outlay for the year. Once this exercise is completed the consolidatedStatement of Plan outlays of all Central Ministries is forwarded to the Ministry of Finance whichearmarks the planned allocation for the respective Ministries at the time of announcement of theUnion Budget in February every year. There may only be minor variations in the approvedoutlay of Planning Commission and the financial allocation made by the Ministry of Finance.

As regards the State Governments, the consolidated proforma forwarded by the Planning

Commission is filled in and forwarded to the Planning Commission. The State Plan Division inPlanning Commission circulates the proposals to the respective Subject Divisions for commentson the State Plan proposals. This is followed by Working Group meetings between the SubjectDivision Head and the officers implementing the scheme/subject in the State after which theSubject division head recommends the outlay proposed for a respective subject say, agriculture,social welfare etc to the State Plan Division. The Working Group meetings are followed byWrap-Up meeting chaired by the Member in charge of a State with the State Governmentofficers either on the same day or the next day to finalise the outlays. Once the plan proposals ofthe State are discussed then the Briefing meeting is held between the Deputy Chairman ofPlanning Commission and the Chief Minister of the concerned State wherein the Annual Planoutlay for the State is announced.

Cabinet Committee

In a parliamentary democracy, a Cabinet Minister with the title of Prime Minister is theExecutive head of the Government, while the Head of State is a largely ceremonial monarch or president. The Executive branch of the Government has sole authority and responsibility for thedaily administration of the State bureaucracy.

The Prime Minister selects the team of Ministers in the Cabinet and allocates portfolio. In mostcases, the Prime Minister sets up different Cabinet Committees with select members of theCabinet and assigns specific functions to such Cabinet Committees for smooth and convenient

functioning of the Government.A Cabinet Committee can be either set up with a broad mandate or with a specific mandate.Many a times, when an activity/agenda of the Government acquires prominence or requiresspecial thrust, a Cabinet Committee may be set up for focussed attention. In all areas delegated tothe Cabinet Committees, normally the decision of the Cabinet Committee in question is thedecision of the Government of the day. However, it is up to the Prime Minister to decide if anyissue decided by a Cabinet Committee should be re-opened or discussed in the full Cabinet.

http://arthapedia.in/index.php?title=Budget_Making_Exercise_in_a_Federal_Set_uphttp://arthapedia.in/index.php?title=Budget_Making_Exercise_in_a_Federal_Set_uphttp://arthapedia.in/index.php?title=Budget_Making_Exercise_in_a_Federal_Set_uphttp://arthapedia.in/index.php?title=Cabinet_Committeehttp://arthapedia.in/index.php?title=Cabinet_Committeehttp://arthapedia.in/index.php?title=Cabinet_Committeehttp://arthapedia.in/index.php?title=Cabinet_Committeehttp://arthapedia.in/index.php?title=Budget_Making_Exercise_in_a_Federal_Set_up


11/156

The Parliament of India (Sansad / ) is the federal and supreme legislative body of India. It

consists of two houses – the Lower House – House of the People called Lok Sabha (

)and the Upper House- Council of States called Rajya Sabha.( ).

Though the political party /coalition that have the absolute majority ( i.e at least one seat morethan 50 percent of total seats contested and decided) in Lok Sabha forms the Government, thePrime Minister and the members of the Cabinet can be from either House of Parliament. In 1961,the Government of India Transaction of Business Rules (TBR), 1961 were framed, which inter-alia prescribed the procedure in which the Executive arm of the Government would conduct its business in a convenient and streamlined manner.

In terms of the TBR, 1961, inter-alia, there shall be “Standing Committees of the Cabinet” as setout in the First Schedule to the TBR, 1961, with the functions specified therein. The PrimeMinister may, from time to time, amend the Schedule by adding to or reducing the numbers ofsuch Committees or by modifying the functions assigned to them. Every Standing Committeeshall consist of such Ministers as the Prime Minister may from time to time specify.

Conventionally, while Ministers with Cabinet rank are named as ‘members’ of the StandingCommittees of the Cabinet, Ministers of State, irrespective of their status of having ‘Independent

Charge’ of a Ministry/Department, and others ‘with rank of’ a Cabinet Minister or Minister ofState are named as ‘special invitees’.

At present there are 11 (eleven) Standing Committees of the Cabinet. These are theAppointments Committee of the Cabinet (ACC), the Cabinet Committee onAccommodation(CCA), the Cabinet Committee on Economic Affairs (CCEA) , the CabinetCommittee on Management of Natural Calamities (CCMNC), the Cabinet Committee onParliamentary Affairs,the Cabinet Committee on Political Affairs (CCPA), the CabinetCommittee on Prices (CCP), the Cabinet Committee on Security (CCS), the Cabinet Committeeon World Trade Organisation Matters (CCWTO), the Cabinet Committee on Infrastructure

(CCI), and the Cabinet Committee on Unique Identification Authority of India related issues(CCUID).

While three of the Cabinet Committees, the ACC, CCA and the Cabinet Committee onParliamentary Affairs deal with internal housekeeping and functioning of the Government, fourCabinet Committees have very limited mandates, i.e, CCMNC is for managing naturalcalamities, CCP is for regulating prices of essential commodities, CCWTO is for matters relatingto WTO, and CCUID is for matters relating to UID.

Prominent Cabinet Committees whose functioning is of general interest are the CabinetCommittee on Economic Affairs (CCEA), the Cabinet Committee on Infrastructure (CCI), theCabinet Committee on Political Affairs (CCPA), and the Cabinet Committee on Security (CCS).

The Second Schedule to TBR 1961, lists the items of Government business where the fullCabinet, and not any Standing Committee of the Cabinet should take a decision. However, to theextent there is a commonality between the cases enumerated in the Second Schedule and thecases set out in the First Schedule, the Standing Committees of the Cabinet shall be competent totake a final decision in the matter, except in cases where the relevant entries in the respectiveSchedules themselves preclude the Committees from taking such decisions. Also, any decisiontaken by a Standing Committee may be reviewed by the Cabinet.


12/156

Cabinet Committee on Economic Affairs (CCEA)

CCEA has a mandate to review economic trends on a continuous basis, as also the problems and prospects, with a view to evolving a consistent and integrated economic policy framework for

the country. It also directs and coordinates all policies and activities in the economic fieldincluding foreign investment that require policy decisions at the highest level.

Matters regarding fixation of prices of agricultural products as well as reviewing progress ofactivities related to rural development including those concerning small and marginal farmers arein CCEA’s competence.

Price controls of industrial raw materials and products, industrial licensing policies includingindustrial licensing cases for establishment of Joint Sector Undertakings, reviewing performanceof Public Sector Undertakings including their structural and financial restructuring are alsowithin the purview of CCEA, as are all matters relating to disinvestment including cases ofstrategic sale, and pricing of Government shares in Public Sector Undertakings (except to theextent entrusted to an Empowered Group of Ministers).

The CCEA also lays down priorities for public sector investment and considers specific proposals for investment of not less than specific levels (Rs. 3 Billion at present) as revised fromtime to time. It is important to note that the increase in the prices of essential commodities or bulk goods under any form of formal or informal control is decided by the CCEA, even as theCCP monitors the price behaviour of essential commodities, takes decision on supply, importsand exports of essential commodities and prices for articles sold through the public distributionsystem.

CCEA facilitates finalisation of factual reports on the accomplishments of the Ministries,Agencies and Public Sector Undertakings involved in implementation of prioritised schemes or projects for evaluation by the Prime Minister. The CCEA also considers cases of increase in the

firmed up cost estimates/revised cost estimates for projects etc. in respect of the businessallocated to the CCEA.

Cabinet Committee on Infrastructure (CCI)

CCI is one of the new Standing Committee of the Cabinet for focussed and speedy decisions forinfrastructure. Prior to setting up of the CCI, infrastructure development was conventionally, and by implication included in the general mandate of CCEA/ Cabinet. CCI considers and takesdecisions in respect of all infrastructure related proposals costing more than specified levels (Rs.3 Billion at present) specifically those concerning Energy, Railways, Roads, and National

Highways, Ports, Airports, Telecommunications, Information Technology, Irrigation, Housingand Urban Development with particular emphasis on rural housing and augmentation of facilitiesin urban slums.

The CCI also considers and decides fiscal, financial, institutional and legal measures that arerequired to enhance investment in the infrastructure sector, including grant of requisite approvalsto facilitate private sector investment in specific projects.

http://arthapedia.in/index.php?title=Cabinet_Committee_on_Economic_Affairs_(CCEA)http://arthapedia.in/index.php?title=Cabinet_Committee_on_Economic_Affairs_(CCEA)http://arthapedia.in/index.php?title=Cabinet_Committee_on_Economic_Affairs_(CCEA)http://arthapedia.in/index.php?title=Cabinet_Committee_on_Infrastructure_(CCI)http://arthapedia.in/index.php?title=Cabinet_Committee_on_Infrastructure_(CCI)http://arthapedia.in/index.php?title=Cabinet_Committee_on_Infrastructure_(CCI)http://arthapedia.in/index.php?title=Cabinet_Committee_on_Infrastructure_(CCI)http://arthapedia.in/index.php?title=Cabinet_Committee_on_Economic_Affairs_(CCEA)


13/156

The CCI both lays down parameters and targets for performance for all infrastructural sectorsand reviews the progress of infrastructural projects. CCI considers cases of increase in the firmedup cost estimates/revised cost estimates for projects etc. in respect of the business allocated toCCI as well.

Cabinet Committee on Political Affairs (CCPA)

CCPA primarily deals with problems relating to Centre-State relations in the context of theFederal structure of the country and Constitutional provisions.

However, CCPA also considers economic and political issues that have to be judged “with awider perspective”. It is in this background that economic issues with political implications

sometimes get discussed in the CCPA and not in the CCEA.

CCPA is enjoined to deal with policy matters concerning foreign affairs that do not have externalor internal security implications, as matters with such implications are required to be dealt with by the CCS.

Carriage by Road Act, 2007

The Carriage by Road Act, 2007 is an Act of the Parliament of India which provides for theregulation of common carriers of goods by roads. The Act was published on 29th September2007.

The Act states that no person shall engage in the business of common carrier, after thecommencement of the Act, unless a certificate of registration has been granted to him. Personsengaged in the business of common carrier before the commencement of the Act, were requiredto either apply for a registration within 90 days from the date of commencement of the Act orcease to engage in such business on the expiry of 180 days from the date of commencement ofthe Act.

The Act defines a “common carrier” as a person engaged in the business of collecting, storing,forwarding or distributing goods to be carried by goods carriages under a goods receipt ortransporting for hire of goods from place to place by motorized transport on road. It also includesa goods booking company, contractor, agent, broker and courier agency engaged in the door-to-door transportation of documents, goods or articles utilizing the services of a person, eitherdirectly or indirectly, to carry or accompany such documents, goods or articles.

The Act mandates that every consignor shall execute a goods forwarding note (GFN) whichwould include a declaration about the value of the consignment and goods of dangerous andhazardous nature. Every common carrier is liable to the consignor for the loss or damage to anyconsignment in accordance with GFN.

In exercise of the powers conferred by the Act, the Central Government of India made theCarriage by Road Rules 2011.

Carriage by Road Rules, 2011

http://arthapedia.in/index.php?title=Cabinet_Committee_on_Political_Affairs_(CCPA)http://arthapedia.in/index.php?title=Cabinet_Committee_on_Political_Affairs_(CCPA)http://arthapedia.in/index.php?title=Cabinet_Committee_on_Political_Affairs_(CCPA)http://arthapedia.in/index.php?title=Cabinet_Committee_on_Political_Affairs_(CCPA)


14/156

In exercise of the powers conferred by the Carriage by Road Act, 2007, the Central Governmentof India made the Carriage by Road Rules, 2011. These Rules relate to the regulation of commoncarriers of goods by roads. The Rules came into force on 28th February 2011.

Conditions for grant of registration A person applying for registration under Carriage by Road rules shall comply with the following

conditions:

1. The applicant should produce registration certificates of two commercial vehiclesregistered in his name or in the name of an Organisation or in the name of a partner or proprietor or director, or a contract letter or work

order for carrying out functions as a common carrier, from a registered company;

1. The applicant should have net worth of minimum rupees five lakhs of his own or of anyof the proprietor or partner or director. In case of applications for certificate ofregistration for providing service at a higher risk, the net worth of the applicant or of anyof its proprietor or partner or director shall be minimum rupees twenty lakhs.

2.

In case common carriers are proprietorship firms or partnership firms, the proprietors or partners should not have been blacklisted or deregistered earlier.

Grant or renewal of certificate of registration

The registering authority shall grant or renew the certificate of registration within a period of 30days after

1.

Receiving the application

2. Receiving the fees specified

3. Satisfying that the applicant has complied with all the conditions required for grant ofregistration.

Every holder of a certificate of registration needs to maintain a record of the transactions in aregister, updated on a quarterly basis. The summary of the entries are to be submitted to theregistering authority. Every consignor needs to execute a goods forwarding note (GFN), carryingdetails of the goods, at the time of booking his goods. On receipt of GFN from the consignor for booking of goods to be transported, every common carrier shall issue a goods receipt.

Liability for loss of or damage to any consignment

Liability of the common carrier is limited to ten times the freight paid or payable, provided thatthe amount so calculated does not exceed the value of the goods as declared in GFN. In case of partial damage to the goods, the evaluation of damage may be done by an independentGovernment approved valuer or surveyor selected by the consignor out of the list notified by thecommon carrier and the cost of such evaluation is to be borne by the common carrier.Theliability for loss of documents sent along with the consignment order should not exceed rupeesfive hundred. In case of perishable goods, the consignor or the consignee should select theGovernment approved valuer or surveyor within a period of 24 hours from the time of report ofthe loss or deterioration of the goods, failing which the common carrier shall be free to select thesaid valuer or surveyor. The delivery of the consignment by the common carrier is treated as prima facie evidence of delivery of the goods as described in the GFN unless notice of the

http://arthapedia.in/index.php?title=Carriage_by_Road_Act,_2007http://arthapedia.in/index.php?title=Carriage_by_Road_Act,_2007http://arthapedia.in/index.php?title=Carriage_by_Road_Act,_2007http://arthapedia.in/index.php?title=Carriage_by_Road_Act,_2007


15/156

general nature of loss of, or damage to, the goods is given in writing, by the consignee to thecommon carrier at the time of handing over of the goods to the consignee. The responsibility ofthe common carrier is limited to the transit period, from the date of taking over the goods in hisor her charge from the consignor to the date of arrival at the destination point plus three calendardays. The date of arrival of the consignment is taken as the day on which the goods physically

arrive at the destination or the day when the consignee or consignor is informed of the arrival ofthe goods at the destination, whichever is later. The liability of the common carrier is to becalculated on the actual freight collected or due or ninety per cent of total charges excluding thetaxes shown on goods receipt, whichever is higher.

Cash based Accounting System Versus Accrual Accounting System

The Indian Government accounts are prepared on a cash based accounting system. This systemrecognizes a transaction when cash is paid or received. However it does not give a realisticaccount of government's financial position because it lacks an adequate framework foraccounting for assets and liabilities, and depicting consumption of resources. Moreover capitalexpenditure (expenditure on the creation of new assets) under the cash system is brought to

account only in the year in which a purchase or disposal of an asset is made. This is not aneffective way to track assets created out of public money. The present system does not reflectaccrued liabilities arising from the gap between commitments and transactions of government onthe one hand and payments made. The Twelfth Finance Commission recommended introductionof accrual accounting in Government. Government has accepted the recommendation in principleand asked Government Accounting Standards Advisory Board (GASAB) in the office of theComptroller and Auditor General of India to draw a roadmap for transition from cash to accrualaccounting system and to prepare an operational framework for its implementation. So far twentyone State Governments have agreed in principle to introduce accrual accounting.

References

1.

http://www.gasab.gov.in/about.asp

Cash Reserve Ratio (CRR)

Cash Reserve Ratio refers to the fraction of the total Net Demand and Time Liabilities (NDTL)of a Scheduled Commercial Bank held in India, that it has to maintain as cash deposit with the Reserve Bank of India (RBI). The requirement applies uniformly to all banks in the countryirrespective of an individual bank’s financial situation or size. In contrast, certain countries e.g.

China stipulates separate reserve requirements for ‘large’ and ‘small’ banks.

As per the RBI Act 1934, all Scheduled Commercial Banks (that includes public and private

sector banks, foreign banks, regional rural banks and co-operative banks) are required tomaintain a cash balance on average with the RBI on a fortnightly basis to cater to the CRRrequirement. With effect from December 28, 2002 all banks are required to maintain a minimumof 70 per cent of the required average daily CRR on all days of the fortnight. Non BankFinancial Corporations (NBFCs) are outside the purview of this reserve requirement.

Traditionally, the amount held to cater to the CRR requirement was stipulated to be no lowerthan 3 percent and no higher than 20 percent of the total NDTL held in India. However, the RBI(amendment) Act, 2006 provides for removal of the floor and ceiling with respect to setting the

http://arthapedia.in/index.php?title=Cash_based_Accounting_System_Versus_Accrual_Accounting_Systemhttp://arthapedia.in/index.php?title=Cash_based_Accounting_System_Versus_Accrual_Accounting_Systemhttp://arthapedia.in/index.php?title=Cash_based_Accounting_System_Versus_Accrual_Accounting_Systemhttp://www.gasab.gov.in/about.asphttp://www.gasab.gov.in/about.asphttp://arthapedia.in/index.php?title=Cash_Reserve_Ratio_(CRR)http://arthapedia.in/index.php?title=Cash_Reserve_Ratio_(CRR)http://arthapedia.in/index.php?title=Cash_Reserve_Ratio_(CRR)http://www.gasab.gov.in/about.asphttp://arthapedia.in/index.php?title=Cash_based_Accounting_System_Versus_Accrual_Accounting_System


16/156

CRR and authorizes the RBI to set the ratio in keeping with the broad objective of maintainingmonetary stability in the economy.

Presently, banks are not paid any interest on behalf of the RBI for parking the required cash. If a bank fails to meet its required reserve requirements, the RBI is empowered to imposea penalty by charging a penal interest rate.

Historically, the CRR was mooted as a regulatory tool. However, over the years and especiallyafter the liberalization of the Indian economy in the early 1990s, with the economy experiencingsubstantial inflows of capital exerting stress on the leverage of the central bank to manipulateliquidity conditions in the domestic money market, the CRR assumed importance as one of theimportant quantitative tools aiding in liquidity management. In contrast to the LiquidityAdjustment Facility (LAF), which aids liquidity management on a daily basis via changes inrepo and reverse-repo rates, changes in the CRR is aimed at the same in the medium term.

The CRR was reduced from a level of 8.5 percent in August 2008 to 6 percent in September,2008 to ease liquidity in domestic markets on the face of the global financial crisis. The cutcontinued through 2008 reaching a level of 5 percent in January 2009. The CRR was maintained

at this level throughout 2009 and eventually raised to 6 percent in April, 2010.A country that uses the CRR aggressively to control domestic liquidity and target the monetaryroots of inflation is China. In the recent past the People’s Bank of China has frequently raised the

reserve requirement for its banks primarily to rein in rising inflation. In the latest policy move,the Bank raised the required reserve ratio by 50 basis points, to 21.5 percent for large banksand19.5 percent for smaller ones, effective from June 20, 2011.

The RBI website (www.rbi.org.in) carries information on the prevailing policy rates includingCRR. Presently the CRR stands at 6 percent. Various publications by the RBI, including monthly bulletins, discuss and analyze rationale behind changes and expected effects of CRR changes asand when the need arises.

References

“Central Bank Balances and Reserve Requirements”, Simon Gray, IMF Working Paper No. WP/11/36, February,

2011.

Central Plan Assistance

Financial assistance provided by Government of India to support State’s Five Year/interveningannual plans is called Central Plan Assistance (CPA) or Central Assistance (CA). CPA or CA primarily comprises (a) Normal Central Assistance (NCA), which is governed by modifiedGadgil-Mukherjee Formula, and is accordingly fixed (b) Additional Central Assistance (ACA),which is provided for implementation of externally aided projects (EAPs), and for which presently there is no ceiling (c) Special Central Assistance (SCA), which is provided for special projects/programmes e.g., Western Ghats Development Programme, Border Areas DevelopmentProgramme etc. (In exceptional situations, Advance Central Assistance, may also be provided.)

CPA is provided, as per scheme of financing applicable for specific purposes, approved byPlanning Commission. It is released in the form of grants and/or loans in varying combinations,as per terms & conditions defined by Ministry of Finance, Department of

http://arthapedia.in/index.php?title=Central_Plan_Assistancehttp://arthapedia.in/index.php?title=Central_Plan_Assistancehttp://arthapedia.in/index.php?title=Central_Plan_Assistancehttp://arthapedia.in/index.php?title=Central_Plan_Assistance


17/156

Expenditure. http://finmin.nic.in/the_ministry/dept_expenditure/plan_finance/Plan_Finance/pfter ms.asp.

Central Assistance in the form of ACA is provided also for various Centrally SponsoredSchemes viz., Accelerated Irrigation Benefits Programme, Rashtriya Krishi Vikas Yojana etc.and SCA is extended to states and UTs as additive to Special Component Plan (renamed

Scheduled Castes Sub Plan) and Tribal Sub Plan. Funds provided to States under Member ofParliament Local Area Development Scheme @ Rs.5 crore per annum per MP also count as CA.

Central Road Research Institute (CRRI)

The Central Road Research Institute (CRRI) is a premier national research institute founded in1948 with the objective of carrying out research and development project on design, constructionand maintenance of roads and runways economically. It provides technical and consultancyservices to various user organisations in India and abroad. it is registered with the World Bankand Asian Development Bank to provide consultancy service and to meet the specialised trainingfor the highway. The institute has also professional linkage with World Road Association,International Road Federation (IRF) and Transport Research Laboratory (TRL), U.K for researchand consultancy services. It imparts a popular training course on Road Development Planningand Management (RDP).

Central Sector and Centrally Sponsored Schemes

In India’s developmental plan exercise we have two type of schemes viz; central sector andcentrally sponsored scheme. The nomenclature is derived from the pattern of funding and themodality for implementation. Under Central sector schemes, it is 100% funded by the Uniongovernment and implemented by the Central Government machinery. Central sector schemes are

mainly formulated on subjects from the Union List. Under Centrally Sponsored Scheme a certain percentage of the funding is borne by the States in the ratio of 50:50, 70:30, 75:25 or 90:10 andthe implementation is by the State Governments. Centrally Sponsored Schemes are formulated insubjects from the State List to encourage States to prioritise in areas that require more attention.

Charged Expenditure

In India's democratic system, the government cannot spend from the Consolidated Fund unlessthe expenditure is voted in the lower house of Parliament or State Assemblies. Howeveraccording to Article 112 (3) and Article 202 (3) of the Constitution of India, the followingexpenditure does not require a vote and is charged to the Consolidated Fund. They include

salary, allowances and pension for the President as well as Governors of States, Speaker andDeputy Speaker of the House of People, the Comptroller General of India and Judges of theSupreme and High Courts. They also include interest and other debt related charges of theGovernment and any sums required to satisfy any court judgment pertaining to the Government.

Competition Commission of India

http://finmin.nic.in/the_ministry/dept_expenditure/plan_finance/Plan_Finance/pfterms.asphttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance/Plan_Finance/pfterms.asphttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance/Plan_Finance/pfterms.asphttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance/Plan_Finance/pfterms.asphttp://arthapedia.in/index.php?title=Central_Road_Research_Institute_(CRRI)http://arthapedia.in/index.php?title=Central_Road_Research_Institute_(CRRI)http://arthapedia.in/index.php?title=Central_Road_Research_Institute_(CRRI)http://arthapedia.in/index.php?title=Central_Sector_and_Centrally_Sponsored_Schemeshttp://arthapedia.in/index.php?title=Central_Sector_and_Centrally_Sponsored_Schemeshttp://arthapedia.in/index.php?title=Central_Sector_and_Centrally_Sponsored_Schemeshttp://arthapedia.in/index.php?title=Charged_Expenditurehttp://arthapedia.in/index.php?title=Charged_Expenditurehttp://arthapedia.in/index.php?title=Charged_Expenditurehttp://arthapedia.in/index.php?title=Charged_Expenditurehttp://arthapedia.in/index.php?title=Central_Sector_and_Centrally_Sponsored_Schemeshttp://arthapedia.in/index.php?title=Central_Road_Research_Institute_(CRRI)http://finmin.nic.in/the_ministry/dept_expenditure/plan_finance/Plan_Finance/pfterms.asphttp://finmin.nic.in/the_ministry/dept_expenditure/plan_finance/Plan_Finance/pfterms.asp


18/156

A competition regulator is generally a statutory authority with the mandate to enforcecompetition law (also called antitrust law in some countries such as USA) and may sometimesalso enforce consumer protection laws. Competition regulators may regulate anti-competitiveagreements including cartels as well as abuse of dominant position in the markets. They alsoregulate certain aspects of mergers and acquisitions of business and often undertake advocacy

also to promote competition culture. There are more than hundred such regulators in the worldwith USA and European Commission being two major jurisdictions, among others.

Competition Act, 2002 was passed in January 2003. Competition Commission of India (CCI)was set up in October 2003 to implement this law. However, legal challenge prevented fullconstitution and enforcement and only advocacy function was notified. CCI was duly establishedon 1.3.2009 as an autonomous independent body comprising Chairperson and six members. Anappellate body called Competition Appellate Tribunal was also set up on 20.5.2009 with finalappeal to Supreme Court of India. CCI is thus, a fully empowered body today and IndianCompetition Law has fully come into force.

It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of tradein the markets of India. The Commission is also required to give opinion on competition issueson a reference received from a statutory authority established under any law and to undertakecompetition advocacy, create public awareness and impart training on competition issues.

References

1. Competition Commission of India website http://www.cci.gov.in/

Competition Law in India

Competition law is a specific law which has the objective of promoting/ maintaining competition

in the markets by regulating anti-competitive conduct. It is also known as antitrust law in theUnited States. The history of competition law reaches back to the Roman Empire. Since the 20thcentury, competition law has become global. Now, more than hundred countries have adoptedcompetition law as a natural corollary to embracing economic reforms and market economies.

India’s earlier Competition related law - Monopolies and Restrictive Practices Act, 1969 becameoutdated after liberalization of economy in 1991. Competition Act, 2002 was passed in January2003 with the objective of preventing practices having adverse effect on competition, promotingand sustaining competition in markets, protecting the interests of consumers and ensuring freedom of trade carried on market participant . Competition Commission of India (CCI) was setup in October 2003 to implement the law. However, legal challenge prevented full constitutionand enforcement and only advocacy function was notified. Law was amended in 2007. Law is being implemented by Competition Commission of India (CCI), which was constituted in 2009as an autonomous independent body comprising Chairperson and six members. Appeal lies toCompetition Appellate Tribunal also set up in 2009 with final appeal to Supreme Court of India.Section 3 & 4 relating to anti- competitive agreements and abuse of dominance notified w.e.f20.5.52009 while Sections 5 & 6 relating to Mergers and Acquisitions notified w.e.f 1.6.2011.Thus, Indian Competition Law has fully come into force. The Competition Act, 2002 (asamended), [the Act] aims at protecting Indian markets against anti-competitive practices by

http://arthapedia.in/index.php?title=Competition_Commission_of_Indiahttp://arthapedia.in/index.php?title=Competition_Commission_of_Indiahttp://arthapedia.in/index.php?title=Competition_Commission_of_Indiahttp://www.cci.gov.in/http://www.cci.gov.in/http://www.cci.gov.in/http://www.cci.gov.in/http://arthapedia.in/index.php?title=Competition_Commission_of_India


19/156

enterprises. The Act prohibits anti-competitive agreements, abuse of dominant position byenterprises, and regulates entering into combinations (consisting of mergers, amalgamations andacquisitions) with a view to ensure that there is no adverse effect on competition in India.

References

1. The Competition Act, 2002: An Overview

2. The Competition Act, 2002 (full Act)

Concessionaire

The term “Concessionaire” denotes someone who holds or operates a concession. In a public

private partnership project, which is a contractual arrangement entered between a public entityand a private entity, the private entity which is the holder of a concession is defined as theconcessionaire.

In India, typically a company incorporated under the provisions of the Companies Act, 1956 isthe concessionaire for most of the public private partnership projects in infrastructure. Theselection of the concessionaire is mostly through open competitive bidding.

References

1. http://www.infrastructure.gov.in/

Consolidated Fund of India

This term derives its origin from the Constitution of India.

Under Article 266 (1) of the Constitution of India, all revenues ( example tax revenue from personal income tax, corporate income tax, customs and excise duties as well as non-tax revenuesuch as licence fees, dividends and profits from public sector undertakings etc. ) received by theUnion government as well as all loans raised by issue of treasury bills, internal and externalloans and all moneys received by the Union Government in repayment of loans shall form aconsolidated fund entitled the 'Consolidated Fund of India' for the Union Government.

Similarly, under Article 266 (1) of the Constitution of India, a Consolidated Fund Of State ( aseparate fund for each state) has been established where all revenues ( both tax revenues such asSales tax/VAT, stamp duty etc..and non-tax revenues such as user charges levied by Stategovernments ) received by the State government as well as all loans raised by issue of treasury

bills, internal and external loans and all moneys received by the State Government in repaymentof loans shall form part of the fund.

The Comptroller and Auditor General of India audits these Funds and reports to the Union/Statelegislatures when proper accounting procedures have not been followed.

Consumer Price Index

http://arthapedia.in/index.php?title=Competition_Law_in_Indiahttp://arthapedia.in/index.php?title=Competition_Law_in_Indiahttp://arthapedia.in/index.php?title=Competition_Law_in_Indiahttp://arthapedia.in/index.php?title=Concessionairehttp://arthapedia.in/index.php?title=Concessionairehttp://arthapedia.in/index.php?title=Concessionairehttp://www.infrastructure.gov.in/http://www.infrastructure.gov.in/http://arthapedia.in/index.php?title=Consolidated_Fund_of_Indiahttp://arthapedia.in/index.php?title=Consolidated_Fund_of_Indiahttp://arthapedia.in/index.php?title=Consolidated_Fund_of_Indiahttp://arthapedia.in/index.php?title=Consolidated_Fund_of_Indiahttp://www.infrastructure.gov.in/http://arthapedia.in/index.php?title=Concessionairehttp://arthapedia.in/index.php?title=Competition_Law_in_India


20/156

Consumer Price Index is a measure of change in retail prices of goods and services consumed bydefined population group in a given area with reference to a base year. This basket of goods andservices represents the level of living or the utility derived by the consumers at given levels oftheir income, prices and tastes. The consumer price index number measures changes only in oneof the factors; prices. This index is an important economic indicator and is widely considered as

a barometer of inflation, a tool for monitoring price stability and as a deflator in nationalaccounts. Consumer price index is used as a measure of inflation in around 157 countries. Thedearness allowance of Government employees and wage contracts between labour and employeris based on this index. The formula for calculating Consumer Price Index is Laspeyre’s index

which is measured as follows;

Total cost of a fixed basket of goods and services in the current period * 100Total cost of the same basket in the base period

The origin of Consumer Price Index can be traced to the period after first world war when therewas a sharp rise in prices and cost of living. The erosion in the real wages of the workers led to ademand by the workers for compensation. This led to the conduct of socio-economic surveysamong the working classes as a preliminary to the measurement of cost of living. Consumer price index numbers were known as “ Cost of Living Index Numbers” prior to July 1955. The

Sixth International Conference of Labour Statisticians recommended the change in nomenclaturefrom Cost of Living Index to Consumer Price index. The Cost of living index is a more broaderterm which includes not only changes in prices but several other factors like change inconsumption habits and standard of living.

Presently the consumer price indices compiled in India are CPI for Industrial workers CPI(IW),CPI for Agricultural Labourers CPI(AL) & Rural Labourers CPI(RL) and CPI ( Urban) andCPI(Rural). Consumer Price Index for Urban Non Manual Employees was earlier computed byCentral Statistical Organisation. However this index has been discontinued since April 2008.TheCPI(IW) and CPI(AL& RL) compiled are occupation specific and centre specific and are

compiled by Labour Bureau. This means that these index numbers measure changes in the retail price of the basket of goods and services consumed by the specific occupational groups in thespecific centres. CPI(Urban) and CPI(Rural) are new indices in the group of Consumer priceindex and has a wider coverage of population. This index compiled by Central StatisticalOrganisation tries to encompass the entire population and is likely to replace all the other indices presently compiled.

References

1. http://www.labourbureau.gov.in/

2.

http://www.mospi.nic.in/

Consumer Price Index (Urban) and Consumer Price Index(Rural)

The CPI(IW) and CPI(Al & RL) pertain to specific segment of population. Since these indices donot cover all segments of population, it is difficult to ascertain the true variations in the pricelevel . To overcome this problem, a new index with a wider coverage is now being computed,CPI(Urban) and CPI(Rural) by Central Statistics Office under Ministry of Statistics andProgramme Implementation.

http://arthapedia.in/index.php?title=Consumer_Price_Indexhttp://arthapedia.in/index.php?title=Consumer_Price_Indexhttp://arthapedia.in/index.php?title=Consumer_Price_Indexhttp://www.labourbureau.gov.in/http://www.labourbureau.gov.in/http://www.mospi.nic.in/http://www.mospi.nic.in/http://www.mospi.nic.in/http://www.labourbureau.gov.in/http://arthapedia.in/index.php?title=Consumer_Price_Index


21/156

This series of CPI has two components, one a representative of the entire urban population, viz.CPI (Urban), and another for the entire rural population, viz. CPI (Rural) These indices reflectthe changes in the price levels of various goods and services consumed by the urban and rural population respectively. The indices are compiled at State/UT and all-India levels and are basedon 2010 as base year. CPI (urban) covers 310 towns while the span of CPI(rural) is 1181

villages. Index Numbers for both rural and urban areas and also combined have been startedfrom January 2011 index onwards. Provisional indices based on the data available are firstreleased with the time lag of 30 days. Revised and final numbers with complete data for all Indiaand also for all the States/UTs will be released with a time lag of two months.

Consumer Price Index for Agricultural Labourers and Rural Labourers

(CPI(AL) & CPI(RL))

Labour Bureau has been compiling CPI Numbers for Agricultural Labourers since September,1964.The base of CPI(AL) was 1960-61=100. This series of CPI Numbers was then replaced byCPI for (i) Agricultural and (ii) Rural Labourers with base 1986-87=100 from November, 1995

onwards . CPI for Agricultural and Rural labourers on base 1986-87=100 is a weighted averageof 20 constituent state indices and it measures the extent of change in the retail prices of goodsand services consumed by the agricultural and rural labourers as compared with the base periodviz 86-87. This index is released on the 20th of the succeeding month. CPI-AL is basically usedfor revising minimum wages for agricultural labour in different States.

Consumer Price Index for Industrial Workers CPI(IW)

This index is the oldest among the CPI indices as its dissemination started as early as in 1946.The history of compilation and maintenance of Consumer Price Index for Industrial workersowes its origin to the deteriorating economic condition of the workers post first world war whichresulted in sharp increase in prices. As a consequence of rise in prices and cost of living, the provincial governments started compiling Consumer Price Index. The estimates were howevernot satisfactory. In pursuance of the recommendation of Rau Court of enquiry, the work ofcompilation and maintenance was taken over by government in 1943. Since 1958-59, thecompilation of CPI(IW) has been started by Labour Bureau ,an attached office under Ministry ofLabour & Employment.

Consumer Price Index Numbers for Industrial workers measure a change over time in prices of afixed basket of goods and services consumed by Industrial Workers. The target group is anaverage working class family belonging to any of the seven sectors of the economy- factories,mines, plantation, motor transport, port, railways and electricity generation and distribution . CPI

(IW) is currently calculated at base 2001=100 for 78 centres and prices are collected from 289markets across these 78 centres. The previous base periods of the index have been1944,1949,1960 and 1982=100. The 2001 index is a more representative index than 1982 seriesCPI(IW) as its coverage of centres, markets and sample size for coverage of working classfamily income & expenditure survey is much more wider.. The index has a time lag of onemonth and is released on the last working day of the month. It is used for wage indexation andfixation of dearness allowance for government employees.

http://arthapedia.in/index.php?title=Consumer_Price_Index(Urban)_and_Consumer_Price_Index(Rural)http://arthapedia.in/index.php?title=Consumer_Price_Index(Urban)_and_Consumer_Price_Index(Rural)http://arthapedia.in/index.php?title=Consumer_Price_Index(Urban)_and_Consumer_Price_Index(Rural)http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Agricultural_Labourers_and_Rural_Labourers_(CPI(AL)_%26_CPI(RL))http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Agricultural_Labourers_and_Rural_Labourers_(CPI(AL)_%26_CPI(RL))http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Agricultural_Labourers_and_Rural_Labourers_(CPI(AL)_%26_CPI(RL))http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Industrial_Workers_CPI(IW)http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Industrial_Workers_CPI(IW)http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Industrial_Workers_CPI(IW)http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Industrial_Workers_CPI(IW)http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Agricultural_Labourers_and_Rural_Labourers_(CPI(AL)_%26_CPI(RL))http://arthapedia.in/index.php?title=Consumer_Price_Index(Urban)_and_Consumer_Price_Index(Rural)


22/156

Consumer Price Index for Urban Non Manual Employees (CPI(UNME))

The need for an all Indian middle class cost of living index was felt on several occasions inconnection with the fixation and adjustments of emoluments of Central Government employees.The Central Statistical Organisation carried out a family living survey of urban middle class population during 1958-59 to facilitate construction of middle class cost of living indices. On the

basis of this survey data, a cost of living index number named as CPI(UNME) on base1960=100was compiled and published since 1961.

This index depicts the changes in the level of average retail prices of goods and servicesconsumed by the urban segment of the population. The target group of this index was urbanfamilies who derived major portion of their income from non manual occupations in the non-agricultural sector.This index had a limited use as it was used for determining dearnessallowances of employees of some foreign companies working in India in service sectors such asairlines, communications, banking, insurance and other financial services. Release of Centre-wise monthly CPI (UNME) on the basis of 1984-85 =100 has been discontinued since April2008 as per the recommendation of National Statistical Commission because of outdated base

year and also deployment of field investigators for collection of price data for a broad based CPI(Urban) index. The Commission also decided that release of all-India linked CPI (UNME)would continue till CPI (Urban) is brought out. The monthly linked all India CPI (UNME) was being compiled by linking to CPI (IW) with base 2001=100 and taking CPI (UNME) as weights.This index was released with a time lag of two moths, usually during the third week of themonth. The release of all-India linked CPI(UNME) has been discontinued with effect fromJanuary 2011.

References

1. http://www.labourbureau.gov.in/

2.

http://www.mospi.nic.in/

Contingency Fund of India

This term derives its origin from the Constitution of India.

The Contingency Fund of India established under Article 267 (1) of the Constitution is in thenature of an imprest (money maintained for a specific purpose) which is placed at the disposal ofthe President to enable him/her to make advances to meet urgent unforeseen expenditure, pending authorization by the Parliament. Approval of the legislature for such expenditure and forwithdrawal of an equivalent amount from the Consolidated Fund is subsequently obtained toensure that the corpus of the Contingency Fund remains intact. The corpus for Union

Government at present is Rs 500 crore (Rs 5 billion) and is enhanced from time to time by theUnion Legislature. The Ministry of Finance operates this Fund on behalf of the President ofIndia.

Similarly, Contingency Fund of each State Government is established under Article 267(2) of theConstitution – this is in the nature of an imprest placed at the disposal of the Governor to enablehim/her to make advances to meet urgent unforeseen expenditure, pending authorization by theState Legislature. Approval of the Legislature for such expenditure and for withdrawal of anequivalent amount from the Consolidated Fund is subsequently obtained, whereupon the

http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Urban_Non_Manual_Employees_(CPI(UNME))http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Urban_Non_Manual_Employees_(CPI(UNME))http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Urban_Non_Manual_Employees_(CPI(UNME))http://www.labourbureau.gov.in/http://www.labourbureau.gov.in/http://www.mospi.nic.in/http://www.mospi.nic.in/http://arthapedia.in/index.php?title=Contingency_Fund_of_Indiahttp://arthapedia.in/index.php?title=Contingency_Fund_of_Indiahttp://arthapedia.in/index.php?title=Contingency_Fund_of_Indiahttp://arthapedia.in/index.php?title=Contingency_Fund_of_Indiahttp://www.mospi.nic.in/http://www.labourbureau.gov.in/http://arthapedia.in/index.php?title=Consumer_Price_Index_for_Urban_Non_Manual_Employees_(CPI(UNME))


23/156

advances from the Contingency Fund are recouped to the Fund. The corpus varies across statesand the quantum is decided by the State legislatures.

References

1.

http://www.finmin.nic.in/the_ministry/dept_eco_affairs/budget/ContingencyFundIndiaAct1950.pdf

Coordinated Action on Skill Development (CASD)

Skill development is a dynamic process requiring continuous upgradation of skills for existing aswell as new entrants in the workforce to remain relevant and employable. Government of Indiaand State Governments have been implementing number of policies / programmes for skilldevelopment. To give impetus to the efforts and harmonization of skill initiatives of different players Government of India initiated a Coordinated Action on Skill Development in 2008. Theaction aims at creation of pool of skilled manpower with adequate skills to take advantage of thedemographic dividend which India enjoys vis-à-vis other ageing economies. The CoordinatedAction has three tier institutional structure viz. Prime Minister’s National Council on SkillDevelopment as an apex body assisted by National Skill Development Coordination Board inPlanning Commission and National Skill Development Corporation under the Ministry ofFinance. While PM’s National Council is mandated to lay down policies, core governing andoperating principles for skill development, the Board is entrusted with the task of coordinatingskill efforts of Central Ministries / Departments to bring synergy and avoid duplication of effortsand the Corporation is facilitating private sector participation in the task of skill development.This coordinated action is expected to ensure access to skill development opportunities to allirrespective of any divide and achieve the target of creating 500 million skilled manpower by2022.

Cropping seasons of India- Kharif & Rabi

The agricultural crop year in India is from July to June. The Indian cropping season is classifiedinto two main seasons-(i) Kharif and (ii) Rabi based on the monsoon. The kharif cropping seasonis from July – October during the south-west monsoon and the Rabi cropping season is fromOctober-March (winter ). The crops grown between March and June are summer crops. Pakistanand Bangladesh are two other countries that are using the term ‘kharif’ and ‘rabi’ to describe

about their cropping patterns. The terms ‘kharif’ and ‘rabi’ originate from Arabic language

where Kharif means autumn and Rabi means spring.

The kharif crops include rice, maize, sorghum, pearl millet/bajra, finger millet/ragi (cereals),arhar (pulses), soyabean, groundnut (oilseeds), cotton etc. The rabi crops include wheat, barley,

oats (cereals), chickpea/gram (pulses), linseed, mustard (oilseeds) etc.

Cultivators

If the Main worker is engaged in cultivation of land owned or held from Government or heldfrom private persons or institutions for payment in money, kind or share. Cultivation includeseffective supervision or direction in cultivation. A person working on another person's land for

http://www.finmin.nic.in/the_ministry/dept_eco_affairs/budg

arthapedia ies concepts

Documents