current affairs

1 PIB Gist of the Month (December) BYJUS CLASSES

1. MINISTRY OF DEFENCE

1. Humanitarian Assistance To Maldives From India

In a swift response to the National Crisis faced by the Maldives, following the shutting down the desalination plants in a fire incident in capital in Male, the Indian Government has pressed into service as much as five Indian Air Force transport aircraft and one Naval vessel carrying a large

consignment of potable water to meet the immediate requirement of the people in Male.

Maldives, an island nation in the Indian Ocean, has no natural water source and consumes only

treated sea water.

2. AGNI 4 Long Range Missile Successfully Test Fired

Agni 4, the 4000 kms range Nuclear Capable Ballistic Missile was successfully launched from the

wheeler island off the coast of Odisha. This was the fourth successful trial in a series. The long

range Radars and Electro-Optical Tracking systems (EOTS) located all along the coast tracked and

monitored all the parameters throughout the flight.

Agni 4 is equipped with state of the art Avionics, 5th generation On Board Computer and

distributed architecture. It has the latest features to correct and guide itself for inflight disturbances. The most accurate Ring Laser Gyro based Inertial Navigation System (RINS) and

supported by redundant, highly reliable Micro Navigation System (MINGS), ensures high

accuracy.

The re-entry heat shield is capable of withstanding high temperatures that may reach as high as

4000 degree centigrade and above during reentry of missile in earths atmosphere and makes sure that the avionics function normally, with inside temperature remaining less than 50 degree

centigrade. With Agni 1, 2, 3 and Prithvi already in Indias arsenal, Agni 4 further extends the reach and enhances effective deterrence capability. The launch operations were carried out by the Strategic Forces Command (SFC).

3. DRDO Tests 1000 Kg Class Indigenous Guided Glide Bomb

A 1000 kg glide bomb designed and developed by Defence Research and Development Organisation

(DRDO) was successfully tested, in Bay of Bengal of the coast of Odisha. The bomb was dropped by an Indian Air force aircraft, The bomb, guided by its on board navigation system glided for nearly 100 km before hitting the target with great precision. The flight of the glide bomb was

monitored by radars and electro-optic systems stationed at Integrated Test Range (ITR). Multiple

DRDO laboratories namely, DARE, Bangalore, ARDE, Pune and TBRL, Chandigarh, with RCI,

Hyderabad as the nodal laboratory have contributed towards development of the glide bomb. The

complete avionics package and navigation system has been designed and developed by RCI.

4. DRDO's Parachute System for Recovery of Mission Crew Capsule

The successful launch of GSLV MK3 by ISRO from Sriharikota yesterday, to validate Moon Mission

Crew Capsule Recovery system equipped with advanced parachute system designed and developed

by ADRDE (Aerial Delivery

R&D Estt), an Agra based lab of DRDO proved the

efficacy and reliability of

the parachute system. The

parachute deployment

system functioned perfectly

and achieved the required descent rate. ISRO has

expressed happiness and thanked ADRDE & DRDO for the support.

5. Commissioning of Coast Guard Air Enclave Bhubaneswar & 743 SQN(CG)

In a befitting ceremony, the Coast Guard Air Enclave Bhubaneswar and743 Dornier Squadron

have been commissioned by Vice AdmiralAnurag G Thapliyal, Director General, Indian Coast

ADRDE is the premier DRDO laboratory, one of its kind in the

country, specializing in design development and leading to

production para drop systems for a comprehensive range of military

applications. A large number of such systems such as Combat Free Fall system, heavy drop systems, P 7 & P 16, capable of aerial

delivery of payloads up to 7 tons and 16 tons respectively.


Guard, at Biju Patnaik International Airport Bhubaneswar. The commissioning of the Air Enclave

will provide the required fillip for protection of sensitive marine environment and vital assets

thronging on the shores of coastal Odisha. Further, Odisha coast being hub of shipping traffic emerging to east and Far East, the coordination of search and rescue efforts will certainly get the

required boost. As Odisha is also periodically affected by natural calamities; the availability of

Coast Guard maritime air assets will enhance the capability of disaster response.

6. DRDO Wins Innovation Excellence Award

Defence Research & Development Organisation (DRDO), has been once again awarded the

prestigious Thomson Reuters India Innovation Award- 2014 in category of Research Institutions.

The award was adjudged on the basis of patents filed, efficiency and effectiveness of research, the

impact of innovations as measured by patent citations and international competitiveness. DRDO

had also won the Thomson Reuters India Innovation Award- 2011 in the category of Hi-Tech Academic & Government.

7. Maiden Flight of Panchi

Panchi, the wheeled version of Unmanned Aerial Vehicle (UAV) Nishant capable of taking-off and

landing using small airstrips had its maiden flight lasting about 20 minutes.

The conventional Nishant UAV already inducted in Army is a multi-mission UAV with Day/Night

operational capability, launched from an all-terrain hydro-pneumatic launcher and is recovered

with the help of on board parachute system and an underbelly airbag. It is designed for battlefield

surveillance and reconnaissance, target tracking& localization, and artillery fire correction.

The electro-optic payloads are mounted on a stabilized steerable platform. A sophisticated image

processing system is used for analyzing the images transmitted from the UAV. The aircraft has a

jam resistant command link and digital down link for transmission of imagery. The air vehicle has

autonomous flight capabilities and is controlled from a user friendly Ground Control Station.

2. MINISTRY OF FINANCE

1. Enhancing the Power of Forward Markets Commission (FMC)

The Government has issued draft rules to give the commodity markets regulator Forward Markets

Commission more powers to effectively regulate the intermediaries of the commodity derivatives

markets.

The Draft Rules provide, inter-alia for registration of intermediaries, obligations and responsibilities

and procedure for inspection and disciplinary actions against intermediaries of the commodity derivatives market. National Spot Exchange Limited has not been under the regulatory supervision of Forward Markets Commission (FMC). However, empowerment of the Forward Markets

Commission is an on-going activity. The government has enhanced the administrative and financial

powers of FMC. Besides, FMC has also been granted reasonable independence in engaging

professionals, including legal firms and counsels, for enhancing its efficiency and efficacy.

2. Indian Trusts (Amendment) Bill, 2014

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the introduction

of the Indian Trusts (Amendment) Bill, 2014 in the current session of Parliament to amend section

20 and 20A of the Indian Trusts Act, 1882. The amendments are intended to provide the trustees greater autonomy and flexibility to take decisions on investment of trust money. This would enable

the Central Government to notify securities or class of securities, for investment by trusts and to remove the outdated provisions occurring in section 20 of the Indian Trusts Act, 1882.

3. Amendments to Regional Rural Banks Act, 1976

The Union Cabinet, chaired by the Prime Minister approved the amendments in the Regional Rural

Banks (RRBs) Act, 1976 to enhance authorized and issued capital to strengthen their capital base

and to bring flexibility in the shareholding between Central Government, State Government and Sponsor Bank. The term of the non-official directors appointed by the Central Government will be

fixed not exceeding three years.


The amendments will ensure financial stability of RRBs which will enable them to play a greater

role in financial inclusion and meeting credit requirements of rural areas and the Board of RRBs

will be strengthened.

Background

Regional Rural Banks were established under Regional Rural Banks Act, 1976 (the RRB Act) to

create an alternative channel to the cooperative credit structure and to ensure sufficient

institutional credit for the rural and agriculture sector. RRBs are jointly owned by Government of

India, the concerned State Government and Sponsor Banks with the issued capital shared in the

proportion of 50 percent, 15 percent and 35 percent respectively. As per provisions of the

Regional Rural Banks Act, 1976 the authorized capital of each RRB is Rs. five crore and the issued capital is maximum Rs one crore.

4. Shyamala Gopinath Committee for KVP

The Shyamala Gopinath Comrnittee constituted on Small Savings Schemes has submitted its

report to the Government. Major recommendations of the committee were:- (i) to reduce/abolish

agent`s commission except Manila Pradhan Kshetriya Bachat Yojana (MPKBY) agents to restrict

management cost (ii) secondary market yields on Central Government Securities of comparable maturities should be the benchmarks for the interest on various small savings instruments and

should be reset every 1s1 April (iii) Committee recommended to reduce minimum share for States

from 80% to 50% against net collection and recommended that amount received on redemption of

Central/State Governments securities should be reinvested between Centre and States in the ratio

of 50:50.

After detailed deliberation and in light of views received from State Governments, various Departments of Central Government and Agent`s Association, most of the recommendations of the

Committee are being implemented.

In view of developments observed by the Committee in 2011 on AML/CFT front the KVP was

recommended to be discontinued by the Committee. KVP has been re-notified by the Government

on 23-9-2014. Under the re-notified KVP the investor has to undergo the Know Your Customer (KYC) modalities at Post Office or Bank.

5. India Signs Guarantee Agreement with the World Bank for IBRD Direct Lending

A Guarantee Agreement for World Bank (IBRD) lending of US $ 1100 million to the Dedicated

Freight Corridor Corporation India Ltd (DFCCIL) for Eastern Dedicated Freight Corridor-II Project

(EDFC-II) has been signed between the Government of India and the World Bank.

The objective of the EDFC-II Project is to augment rail transport capacity, improve service quality and enhance freight carriage throughout on the 393 km Kanpur-Mughal Sarai secton of the

Eastern Dedicated Freight Corridor; and develop institutional capacity of DFCCIL to build,

maintain and operate the entire DFC network. This project is in continuation to the Phase-I of the

EDFC Project presently being implemented by the DFCCIL with the World Bank loan of US$ 975

million on the Khurja-Kanpur stretch of the Eastern rail corridor (Ludhiana-Delhi-Kolkata). The project will directly benefit the power and heavy manufacturing industries of northern and eastern

India, which rely on railway network for transportation of their material inputs and also for the

distribution of bulk processed and semi-processed commodities and consumer goods. Railway

passengers will also be benefitted through decongestion of the existing passenger lines.

6. Shadow Banking Implementation Group (SBIG) Constituted to undertake Micro Mapping of

Shadow Banks and to Assess the Risks

Reserve Bank of India (RBI) has constituted Shadow Banking Implementation Group (SBIG) to

undertake micro mapping of shadow banks to assess the risks posed by such entities to the formal

financial sector. SBIG is chaired by RBI and constitutes of members from Ministry of Finance,

Stock Exchange Board of India, Ministry of Agriculture and Cooperation, National Housing Bank,

National Bank for Agriculture & Rural Development, Insurance Regulatory Development Authority, Ministry of Corporate Affairs, Registrar of Agriculture and Cooperatives.


Terms of Reference of SBIG are as follows:

As a first step, the Group will undertake an assessment of the position of compliance of the regulatory framework in the country vis--vis the Financial Stability Board policy guidelines;

The Group will then carry out gap, analysis to identify the reform measures that can be implemented and those where implementation may not be desirable given the specific domestic

conditions;

Where it may not be desirable to initiate the reform measures, the Group will document the

same setting out the reasons within an overall comply of explain framework;

The Group will set out a roadmap indicating the timelines for implementation of the reform area concerned together with the regulatory/agency which will implement the reforms and the

framework for monitoring;

The Group will also recommend whether publishing of a formal approach to implementation of reform measures, as being done by several jurisdictions for some of the reform areas, would be

appropriate in the Indian context; and

Setting up a data repository for the shadow banking sector.

The Committee on Shadow Banking is in initial stages in an ongoing assessment process being

monitored by Inter Regulatory Technical Group comprising of RBI, Securities and Exchange Board

of India, Pension Fund Regulatory and Development Authority, Forward Markets Commission and Insurance Regulatory and Development Authority. The Committee will not submit its report to the

Government.

7. Amendments to the Electricity Act, 2003

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the various

amendments to the Electricity Act, 2003 as per the proposed Electricity (Amendment) Bill, 2014. The amendments will usher in much needed further reforms in the power sector. The amendments

will also promote competition, efficiency in operations and improvement in quality of supply of

electricity in the country resulting in capacity addition and ultimate benefit to the consumers.

8. Amendments to the Insurance Laws (Amendment) Bill, 2008

The Union Cabinet, chaired by the Prime Minister, approved the officials Amendments to the

Insurance Laws (Amendment) Bill, 2008 and introduction in the Rajya Sabha when the Bill is taken up for consideration and passing. The Bill is aimed at removing archaic and redundant provisions in the relevant legislations and to enable the insurance sector to work for the betterment

of the insured with greater efficacy.

9. Establishment of 6 (Six) new Debts Recovery Tribunals (DRTs) at Chandigarh, Bengaluru,

Ernakulam, Dehradun, Siliguri and Hyderabad

Cabinet approved establishment of six new Debt Recovery Tribunals (DRTs) at Chandigarh,

Bengaluru, Ernakulam, Dehradun, Siliguri and Hyderabad (4 DRTs at Bangaluru, Chandigarh,

Ernakulam & Hyderabad are additional DRTs).

The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act) was

enacted to provide for the establishment of Debt Recovery Tribunals (DRTs) and Debt Recovery

Appellate Tribunals (DRATs) for expeditious adjudication and recovery of debts due to banks and financial institutions. After the enactment of the SARFAESI Act 2002, DRTs have the Appellate

jurisdiction under the said Act. The Finance Minister, in his Budget Speech on 10.7.2014

announced that six new DRTs would be set up.

10. India Signs Credit Agreement with International Fund for Agricultural Development

(IFAD)

A financing agreement for a credit amount of US$ 50 million from International Fund for

Agricultural Development (IFAD) was signed for the Meghalaya Livelihood and Access to Markets

Projects (Megha-LAMP).


Agreements were also signed by the

Department of Economic Affairs

with KfW for a grant amount of Euro 2 million to provide technical

assistance to Himachal Pradesh Forest Ecosystems Climate Proofing

project and also for a grant amount of Euro 2 million for extending

technical assistance for the ongoing Tamil Nadu Urban Infrastructure Development Fund project.

The Objective of the project is to adapt expanded and sustainable livelihood opportunities to the

hill environment and to the effects of climate change. The project size is US $ 169.7 million, of

which US $ 50.00 million will come in the form of IFAD credit. The remaining amount will be mobilized through State Government contributions, commercial Banks, complementary

government programmes and participating households. It is expected to benefit more than 147,000

households, comprising of about 827,000 people.

The Megha-LAMP Project will close in December 2022.

11. India Signs First Bilateral Advance Pricing Agreement (APA) With A Japanese Company

Central Board of Direct Taxes (CBDT) signed a bilateral Advance Pricing Agreement (APA) with a Japanese Company. This is Indias first bilateral APA. The APA is for a period of five years.

The APA has been finalized in a period of about one and a half years, which is shorter than time

normally taken in finalizing APAs internationally. The APA scheme has been introduced to bring

about certainty and uniformity in transfer pricing matters of multi-national companies and

reducing litigation. APAs will improve investment climate in the country. In the context of growing economic ties between Japan and India, especially after the Prime Minister Shri Narendra Modis visit to Japan, this APA is expected to generate positive sentiments among Japanese investors in

India.

12. Government of India Signs Agreements with Germany worth Euro 625 Million for

Financial Cooperation to Support Green Energy Corridors (GEC) Project under Indo German Bilateral Development Cooperation

The Government of India signed Note of Exchange with Government of Germany for financial

cooperation to support Green Energy Corridors (GEC) project under Indo German bilateral Development Cooperation. GEC project in power sector aims to create transmission infrastructure

in the renewable energy potential rich states and facilitate evacuation of renewable energy (RE) into

the national grid. Government of Germany in the year 2012 had indicated its willingness to support the GEC

project with funds amounting to Euro 1 billion over a

period of five years under the ambit of Indo-German

bilateral development cooperation.

Government of Germany has committed funds

amounting to Euro 500 million for GEC project this year. With this, the total commitment from Government of

Germany for GEC project stands at Euro 750 million. In

year 2013, Government of Germany had committed Euro

250 million. On the occasion, three separate loan

agreements were also signed for GEC project amounting to Euro 625 million India signed loan agreements with German Governments Development Bank KfW, for loan of Euro 76 million to the Government of Tamil Nadu and a loan of Euro 49 million to Government of Rajasthan for intra-state transmission

schemes. Power Grid Corporation of India Limited signed loan agreement for Euro 500 million with

KfW for inter-state transmission schemes.

13.Government Signs Loan Agreement with Asian Development Bank (ADB) for $75 Million and $1.8 Million Grant for Karnataka Integrated Urban Water Management Investment

Program

Government of India signed an agreement with Asian Development Bank (ADB) here today for a

$75 million loan and a $1.8 million grant that will help improve water resource management in three (3) towns of Karnataka in the Upper Tungabhadra sub-basin. This loan from the ADBs Ordinary Capital Resources has a 25-year term including a grace period of five years.

This first tranche of the loan under the Karnataka Integrated Urban Water Management

Investment Program will help expand and upgrade urban water supply and sanitation

infrastructure; improve water resource planning, monitoring and service delivery; and strengthen

operational and administrative capacity in the three towns of Byadagi, Davanagere and Harihar. The investment program aims to improve water resource management in urban areas in a holistic


and sustainable manner. Investment support will be provided to modernize and expand urban

water supply and sanitation (UWSS) while strengthening relevant institutions to enhance

efficiency, productivity and sustainability in water use. Innovative instruments, such as public-private partnership (PPP) or reform oriented incentive funds will also be pursued. The Program will

seek to assist more fragile environments increasingly affected by water resource degradation, often

located in North Karnataka. The Program will also promote climate-resilient development, capacity-

development for conducive adaptation.

14 .Government Signs Loan Agreement with Asian Development Bank (ADB) for $60 Million for Jammu and Kashmir Urban Sector Development Investment Program

The Government of India signed an agreement with Asian Development Bank (ADB) here today for

a $60 million loan that will help improve urban services, including water supply and urban

transport infrastructure, in two key cities of Jammu and Kashmir. This loan from the ADBs Ordinary Capital Resources has a 25-year term including a grace period of five years. The third tranche loan under the Jammu and Kashmir Urban Sector Development Investment

Program will supplement the urban infrastructure up-gradation program initiated under Project 1

and Project 2. About half-a-million people in Srinagar and Jammu will benefit from improved

access to water supply, functional drainage systems, and better transport infrastructure.

3. MINISTRY OF HOME AFFAIRS

1. Treaty on transfer of sentenced persons between India and Qatar

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the signing of the

treaty on transfer of sentenced persons between India and Qatar.

The signing of the Treaty shall facilitate Indian prisoners imprisoned in Qatar or vice-versa to be

near their families, for serving the remaining part of their sentence and shall facilitate their social rehabilitation.

Prior to 2004, there was no domestic legislation under which foreign prisoners could be transferred

to the country of their origin to serve the remaining part of their sentence, nor was there a

provision for the transfer of prisoners of Indian origin convicted by a foreign court to serve their

sentence in India.

Hence the Repatriation of Prisoners Act, 2003 was enacted for serving this purpose. For achieving the objectives of the Act, a Treaty/Agreement is required to be signed with countries having mutual

interest with India and later to be notified in the Official Gazette.

The Government of India has so far signed Agreements with the Governments of United Kingdom,

Mauritius, Bulgaria, Brazil, Cambodia, Egypt, France, Bangladesh, South Korea, Saudi Arabia,

Iran., Kuwait, Sri Lanka, UAE, Maldives, Thailand, Turkey, Italy, Bosnia & Herzegovina, Israel, Russia, Vietnam and Australia. Negotiations have also been concluded with the Governments of

Canada, Hong Kong, Nigeria and Spain.

2. National Disaster Management Command Centre

India and Russia have signed a bilateral agreement by which either country can seek assistance

from the other by way of exchanging expert teams, equipments, supplies and support materials in

case of an emergency.

With a view to take suitable steps in this direction, the phase-I of the project titled National Database for Emergency Management has been made operational. It was further decided to start a pilot project which will be operative in 10 districts spread over 4 States.

The pilot project has similarities with the Russian Emergency and Disaster Management Command

Centre such as GIS based software application; two way video, audio and data communication capabilities and can receive inputs from technical forecasting agencies like India Meteorological

Department. However, it differs from the Russian model in terms of role of the State Government in

Disaster management to suit our Federal Polity requirements without merger of existing

organizations or creation of a new Ministry. A pilot scheme for setting up a National Disaster Management Command Centre was approved on 25th September, 2014 by the National Disaster


Management Authority with an outlay of Rs. 19.64 crore to be implemented within a period of 18

months. The Scheme provides GIS based audio, video and data communication for emergency

operation control at National, State and District level. The learning from the pilot project would help in further expansion of phase-II of National Database for Emergency Management.

3. Centre Extends SoO Pact With NDFB (P) for Further Six Months

The Centre has extended the Suspension of Operations (SoO) Agreement with the National

Democratic Front of Boroland (Progressive), NDFB (P), for six months. This followed tripartite talks

with the representatives of NDFB (P). After discussion, it was mutually agreed to extend the SoO

Agreement for a further period of six months up to June 30, 2015.

4. MHA enhances more financial powers to CAPFs and Intelligence Agencies

The Ministry of Home Affairs has enhanced financial powers in respect of items such as Major and Minor Works, Special Repairs, Land Acquisition and Hiring of Buildings/Accommodation to the Directors General of Central Armed Police Forces (CAPFs) and Directors of Intelligence Agencies.

The financial powers have been doubled from Rupees Five Crores to Rs. Ten Crores in respect of

Major Works that are to be executed by CPWD and Public Works Organisations. The limit for Major

Departmental Works undertaken by Organisations having Engineering Wing has been raised from Rs.60 lakhs to Rs.One Crore and from Rs. 10 Lakhs to Rs.15 Lakhs for Organisations without

Engineering Wing.

Limits for Minor Works (petty works and repairs) for Residential Buildings has been hiked from

Rs.15 Lakhs to Rs.25 Lakhs and for non-Residential Buildings from Rs.30 Lakhs to Rs.50 lakhs.

Financial powers for Land Acquisition has also been raised from Rs.20 Lakhs to Rs.34 Lakhs in

each case with a provision that the proposed Land Acquisition should be through State Government only.

Financial Powers have also been substantially raised in respect of Special Repairs and Hiring of

Buildings/Accommodation.

The CAPFs are Assam Rifles, Border Security Force, Central Industrial Security Force, Central

Reserve Police Force, Indo-Tibetan Border Police, National Security Guard and Sashastra Seema

Bal, besides the orders are applicable to the Intelligence Bureau and the National Intelligence Agency.

Modernization and upgradation of the CAPFs is a priority of the Government. Earlier in October,

with a view to streamline and expedite processes in this regard, the Union Home Minister Shri

Rajnath Singh had more than doubled the delegation of financial powers to CAPFs for procurement

of Machinery & Equipment and Arms & Ammunition to Rs. 20 crores.

The Modernization Plan II of CAPFs has a total projected cost of Rs.11,009 crores till March 2017.

5.SMART Police Stations in each State shortly

The Prime Minister of India had introduced the concept of SMART Police (S-Sensitive and Strict; M-

Modern with mobility; A- Alert and Accountable; R- Reliable and Responsive; T- Trained and

Techno-savvy) during the 49th Directors General/ Inspectors General Annual Conference at

Guwahati on Nov. 30, 2014. .Efforts are being made to involve the private sector and their

Corporate Social Responsibility (CSR) programmes to expand the roll out of SMART Police Stations. The SMART Police Station would become the foundation towards SMART policing. A SMART Police

Station should be citizen friendly and clean. It should also meet the operational and welfare needs

of the police personnel posted there.

Some suggested features of a SMART Police Station are:

Basic amenities for visitors, waiting area, toilets, drinking water, Receptionist whom the visitors can meet.

Rest room for constables, including separate room for women constables. Natural lighting and ventilation, solar lighting, energy saving features. CCTV, Safe & secure Armoury, Record Room, Communication Room for wireless, computers etc. Automated kiosks for filing of complaints by public (with a back-end system for tracking follow up


action).

The Police Station is the key functional unit from where the police discharges its tasks of

maintenance of law & order and investigation of cases etc. The Police Station is also the primary point of interaction between the citizens and the police.

4. MINISTRY OF POWER

1. New Chairperson assumes office at Appellate Tribunal for Electricity

Mrs. Ranjana Prakash Desai, former Judge of Supreme Court has taken over the charge of

Chairperson, Appellate Tribunal for Electricity, New Delhi. Mrs. Ranjana Prakash Desai had

already served Supreme Court as a Judge for about three years prior to this assignment. She was initially elevated as a judge of High Court of Mumbai.

2. Electricity Amendment Bill, 2014 Introduced in Lok Sabha

The Electricity (Amendment) Bill, 2014 was introduced in the Lok Sabha by the Minister of State

(I/c) for Power, Coal and New& Renewable Energy. The amendments will usher in much needed

further reforms in the power sector. It will also promote competition, efficiency in operations and improvement in quality of supply of electricity in the country resulting in capacity addition and

ultimate benefit to the consumers.

Salient features of the proposed amendments

The Electricity Act, 2003 was enacted to amalgamate and modernize the earlier Electricity Laws,

namely, the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the Electricity

Regulatory Commissions Act, 1998. The Act was reviewed and amended twice, in the year 2004 and 2007, to give effect to certain changes considered necessary. Based on the experience gained

over the years, it was felt to review the provisions further to bring efficiency and competition in the

distribution sector, strengthening grid security and safety, promotion of renewable energy,

rationalization of tariff and strengthening and performance oversight of Regulatory Commissions

etc. Certain legislative changes were suggested by the Working Group on power for the formulation of 12th Five Year Plan which were further examined under a Committee constituted under

Chairperson, CEA. Based on the recommendations of the said Committee, the proposed

amendments were uploaded on the website of Ministry of Power in the month of October, 2013.

Thereafter, consultations were held with various stakeholders including those from Central

Ministries, State Governments, Generation, Transmission, Distribution utilities, Regulatory

Commissions, Private Developers, traders, industry associations, consumer groups, power exchanges and individuals etc., in meetings taken in the Ministry. Based on exhaustive

consultations, certain amendments to the Electricity Act, 2003 have been proposed broadly

covering the following areas:-

A. Enhancing

Grid safety and

security

In order to strengthen and enhance Grid safety and security, specific

measures regarding maintenance of spinning reserves along with strong and

effective deterrence in the form of enhanced penalties for violations of the directions given by the State and Regional Load Despatch Centres etc., have

been envisaged.

B. Separation of

Carriage & Content

in the Distribution

sector

To achieve the objectives of efficiency and for giving choice to consumers

through competition in different segments of electricity market, concept of

multiple supply licensees is proposed by segregating the carriage from

content in the distribution sector and determination of tariff based on

market principles, while continuing with the carriage (distribution network) as a regulated activity. To protect the interest of consumers, the tariff for

retail sale of electricity is proposed to be capped through the Regulator and

one of the supply licensees is proposed to be a Government controlled

company. Further, the existing distribution licensees are proposed to

continue till the expiry of their term as specified in their licence.

C. Promotion of Renewal Energy

In order to accelerate the development of Renewable Energy sources, a number of measures including the provision for a separate National


Renewable Energy Policy, development of renewable energy industry,

Renewable Generation Obligation on coal and lignite based thermal power

plants, specific exemptions to Renewal Energy sources from open access

surcharge, separate penal provisions for non-compliance of Renewal Purchase Obligation etc., have been envisaged under the Renewable

Generation Obligation for coal and lignite based thermal power plants.

D. Tariff

Rationalization

To rationalize the tariff structure on sound financial principles for the

viability of the distribution sector and recovery of revenue requirement of

licensees without any gap, the provisions of Tariff Policy are proposed to be

made mandatory for the determination of tariff. Further, the bill envisages

timely filing of tariff petitions by utilities, disposal of the same by the Appropriate Commission within a specified time period and powers to

Appropriate Commissions for initiating suo-motu proceedings for

determination of tariff in case the Utility/Generating Companies do not file

their petitions in time.

E. Miscellaneous Suitable amendments are also proposed for improving the accountability and

transparency in the working of Appropriate Commissions without affecting their functional autonomy; bringing clarity in regard

to appointments, functions and powers of the Chief Electrical Inspector/

Electrical Inspectors and levying of fees for electrical inspections; exemption

to developer of SEZs, Railways and Metro Rail for obtaining distribution

licence; collection and realization of any dues along with the electricity dues,

etc.

3. Government sets up an Independent Government Company-POSOCO for Reforms in Power

Sector

The government has decided to set up of Power System Operation Corporation (POSOCO) as an

Independent Government Company. In the process, the institutional framework for an

independent, secure and reliable power system operation entity at the national level has been put in place as mandated under the Electricity Act 2003. POSOCO operates the National Load

Despatch Centre (NLDC) and Regional Load Despatch Centres (RLDCs) which are also responsible

for operating the vibrant electricity market working in the country. POSOCO is also designated as

the nodal agency for major reforms in the power sector such as the Renewable Energy Certificate

(REC) Mechanism, transmission pricing, short term open access in transmission, Deviation

Settlement Mechanism, Power System Development Fund (PSDF), etc.

The need for independent Government Company in light of the introduction of competition as per

Electricity Act 2003 which resulted in tremendous growth in the Indian power sector by the private

sector participation in generation, transmission, distribution and trading. With transmission

coming under competition and multiple transmission licensees operating, need was felt to ensure

the independence and neutrality of the system operation function. The Enquiry Committee set up following the July, 2012 grid disturbances, has recommended inter alia putting in place zero

tolerance systems including setting up of an Independent System Operator.

It has been decided to establish POSOCO as a wholly owned Government of India Company under

Ministry of Power thereby giving a big thrust to bringing in further reforms in the power sector at

the Central level. The decision also creates an example for implementing similar reforms at the

State level to ensure independent system operation by the State Load Despatch Centers (SLDCs). The strengthening of the institutional mechanism of System Operation would help bring in

innovation in the power sector as the RLDCs/NLDC operated by POSOCO by achieving economy

and efficiency in the power system operation and facilitating implementation of various

Government of India policies for Power Sector as well as provide feedback to the policymakers,

regulators and planners.


4. Foundation Stones of Two Power Sub Stations

Union Minister for Finance, Corporate Affairs & Information and Broadcasting Arun Jaitley laid the

foundation stone of two power sub-stations and dedicated one sub-power station to the people in Delhi. The 400 kV sub-station of POWERGRID at Rajghat, 220k V substation at Preet Vihar of

Delhi Transco Limited and Harsh Vihar substation of Delhi Transco Limited will significantly

improve power availability in Delhi.

Various projects are being implemented by the Government for strengthening the power system in

Delhi. After implementation of these schemes Delhi residents will no longer need to depend on their

diesel generators and invertors for power supply. He announced that Five Lac LED lights will be installed in Delhi with an approximate cost of Rs.500 Crores. These schemes will also help Delhi in

reducing the overall power consumption. He also added that in the coming time Delhi consumers

will be able to select their power service provider as per their suitability in terms of services. These substations will be built with state-of the-art technology and will cater to the power demand

especially to Central, East and North Delhi.

5.Deendayal Upadhyaya Gram Jyoti Yojana:Deendayal Upadhyaya Gram Jyoti Yojana

(DDUGJY), announced in the budget 2014-15 envisages feeder separation, strengthening of sub-

transmission & distribution network including metering at all levels for the rural areas. The major

components of the scheme are : feeder separation ,strengthening of sub transmission and

distribution network, metering at all levels, including input points, feeders and distribution

transformers, micro grid and off grid distribution network and rural electrification to complete already sanctioned projects. This scheme will help in round the clock power to rural households

and adequate power to agricultural consumers.

6.Integrated Power Development Scheme :The integrated power development scheme envisages

strengthening of sub-transmission and distribution network including metering at all levels in the urban areas. The major components of the project include strengthening of sub-transmission and

distribution network, metering, IT application-ERP and customer care services, provisioning of

solar panels and completion of the ongoing works of the Restructured Accelerated Power

Development and Reforms programme (R-APDRP).

7.North Eastern Region Power System Improvement Project:The North Eastern Region Power

System Improvement Project (NERPSlP) is for the six States of Assam, Manipur, Meghalaya,

Mizoram, Tripura and Nagaland. The scheme is to be implemented with the assistance of World

Bank loan and the budget of MoP. Implementation of this project will create a reliable State power

grid and improve its connectivity to the upcoming load centres, and thus extend the benefits of the grid connected power to all the consumers. This project is a major step towards meeting the

national objective of "Power to All" through enhancement in access of consumers to grid connected

power supply through improving its availability and reliability, thereby facilitating inclusive growth.

This shall also increase the per capita power consumption of these States, which is lagging behind

the average national consumption and shall contribute to the economic development of the North-Eastern Region.

Important projects - dedicated to Nation or foundation stone laid by Prime Minister:

240 MW URI-II Power Station of NHPC located in Baramulla district of Jammu and Kashmir. It

is a run of the river scheme on the Jhelum River

44 MW Chutak hydroelectric Project located in Kargil District of Jammu & Kashmir. The project

is a run-off-river scheme on the river Suru, to generate 216 MU.

45 MW Nimoo-Bazgo Hydro electric Project. This project is a Run of the River scheme to harness

the potential of river Indus in Leh district of Ladakh region. The project is designed to generate

239 MUs of energy.


There are five Research Councils, namely, Central Council for

Research in Ayurvedic Sciences (CCRAS), Central Council for

Research in Homoeopathy(CCRH), Central Council for Research in

Unani Medicines(CCRUM), Central Council for Research in

Siddha(CCRS) and Central Council for Research in Yoga and

Naturopathy(CCRYN) under Ministry of AYUSH. A total of 81 institutes/units are functioning under these Councils.

Government provides financial assistance for both plan and non-

plan expenditure, in the form of Grants-in aid to all Research institutes/ units including Siddha Central Research Institute

(SCRI) through the respective Research Councils to take up

various research projects.

Laid foundation stone for the first power transmission line from Leh to Kargil and Kargil to

Srinagar. This 375 KM transmission line with four 220/33kV Sub-stations at Drass, Kargil, Leh

and Khalsti will connect Leh/ Kargil area in Ladakh with Northern Region Grid at 220kV level.

Raichur-Sholapur 765 kilovolt (kV) transmission line in Maharashtra. This transmission line has

established the infrastructure for transfer of power from the regional grids of Northern, Eastern,

Western and North-eastern regions to Southern region .

Mouda Super Thermal Power Project Stage-I (1000 MW) situated in Nagpur Distt. of

Maharashtra. The project will have ultimate capacity of 2320 MW on completion of 1320 MW (

2X660MW) Stage-II.

765 kV Ranchi-Dharamjaygarh-Sipat transmission line in Jharkhand and initiated the

commencement of work on 3x660 MW North Karanpura Super Thermal Power Project. This line

is the first 765kV inter-regional link between Eastern Region and Western Region.

The 110 MW unit II of Muzzafarpur Thermal Power station (Stage I ) of Kanti Bijlee Utpadan

Nigam Limited and the first 660 MW unit of NTPC`s Barh Super Thermal Power Station

commenced commercial generation.

5. MINISTRY OF HEALTH AND FAMILY WELFARE

1. National Commission for Human Resources for AYUSH

The Ministry of Health and Family Welfare had conceived a proposal for establishing an

overarching body namely, National Commission for Human Resources for AYUSH (NCHRA) which was modeled on

lines of the National Commission for Human Resources for Health

(NCHRH) Bill, 2011, proposed by the

Department of Health and

Family Welfare. Since the proposal of the Department

of Health and Family

Welfare to set up NCHRH

was not agreed to by the

Parliamentary Standing

Committee, therefore, Ministry of AYUSH is not

intending to set up NCHRA at present.

AYUSH Gram has been envisaged as a component of AYUSH Services in the Centrally Sponsored

Scheme of National AYUSH Mission (NAM) approved and notified on 29.09.2014 only. However, as

of date, no AYUSH Gram has been established under this scheme by the State/UTs.

2. Mission Indradhanush

Shri J P Nadda, Health & Family Welfare Minister launched Mission Indradhanush,. The Mission Indradhanush, depicting seven colours of the rainbow, aims to cover all those children by 2020

who are either unvaccinated, or are partially vaccinated against seven vaccine preventable diseases

which include diphtheria, whooping cough, tetanus, polio, tuberculosis, measles and hepatitis B.

Enumerating on the Mission, the Health Minister said, We have identified 201 high focus districts in the country in the first phase which have nearly 50% of all unvaccinated or partially vaccinated

children. These districts will be targeted by intensive efforts to improve the routine immunization

coverage. Of the 201 districts, 82 districts are in just four states of UP, Bihar, Madhya Pradesh and Rajasthan and nearly 25% of the unvaccinated or partially vaccinated children of India are in

these 82 districts of 4 states.


Between 2009-2013 immunization coverage has increased from 61% to 65%, indicating only 1%

increase in coverage every year. To accelerate the process of immunization by covering 5% and

more children every year, the Mission Mode has been adopted to achieve target of full coverage by 2020.

6. MINISTRY OF COMMUNICATION & INFORMATION TECHNOLOGY

1. Task Force on Leveraging the Post Offices Network of the Country

A Task force on leveraging the post offices network of the country among others had suggested

setting up of three subsidiaries as a part of a holding company under the Postal Department under

the Ministry of Communication and Information Technology for extending services in the fields of

banking, insurance and e-commerce. The Report of the Task Force headed by former Cabinet

Secretary Shri T.S.R. Subramanian was submitted to the Minister for Communications and

Information Technology Shri Ravi Shankar Prasad in New Delhi.

In all five subsidiary companies will be called Strategic Business Units (SBU). Two other

subsidiaries are for distribution of 3rd party products and services like providing e-services for

general public for bill collections and providing of application forms, documents and certificates on

commercial basis.

Another subsidiary is for .delivery of government services like Aadhaar ration cards, Vikas patras,

etc. on agency basis. It was also proposed that each SBU will have a separate independent board

to operate commercially as a profit centre. Each one of the SBU over the time may go for public

participation through public issue. It was proposed that a new postal law may be enacted to give

statutory basis for these operations. The Task Force was constituted on 21st August this year.

2. India and Japan to Cooperate in the Fields of Cyber Security and Green ICT (Information

and Communication Technology)

India and Japan decided to cooperate in the fields of Cyber security and Green ICT (Information &

Communication Technology). In a statement after India-Japan Joint Working Group Meeting on

ICT, in New Delhi, the two countries announced the decision to work on the following five areas

which are to be implemented as India-Japan joint projects:-

1. Green ICT - Green Mobile Base Station project

2. Cyber Security Cooperation - Japan-India Combat Spam project

3. Cooperative project for detecting symptoms and quick response to cyber attacks

(PRACTICE)

4. ICT for Disaster Management (ICT4DM) - ICT Use in disaster-affected areas project 5. ICT Application for Social and Economic Challenges - National ID Application and

Utilization Platform project

Ministry for Communication and Information Technology (MCIT) in India and Ministry of Internal

Affairs and Communication (MIC, Japan will coordinate the activities for taking these projects

forward by involving industrial partners in both the countries. They will aim towards

implementation of these joint projects by early 2015. The two countries also decided to further

discuss development of standards in the field of ICT, for future cooperation. Further, India had also

offered Japan to manufacture ICT equipment in India by taking advantage of new conducive

environment for manufacturing in India. The next meeting of the joint working group is to be held

in Tokyo next year.

7. MINISTRY OF WATER RESOURCES

1. 120 Special Teams Start Working on Ganga, Yamuna and Ramganga

Special teams set up by the Ministry of Water Resources, River Development and Ganga

Rejuvination have submitted their reports. 120 such teams were constituted to study various

aspects of 118 places along the rivers Ganga,Yamuna and Ramganga.


These places were located in Uttarakhand,UP,Bihar and West Bengal. These teams were asked to

find out the latest position of sewage treatment plants located at these places and the types of

plantation required along the rivers. The teams were also directed to find out the latest available techniques to modernize these treatment plants to obtain quicker results. Old and nonfunctional

treatment plants will be replaced by new ones.

2.Ministry of Water Resources takes New Initiatives for Ganga Rejuvination

The Union Minister for Water Resources, River Development and Ganga Rejuvination Sushri Uma

Bharti has finalized a Ganga Rejuvination Programme which will have three groups, seven

objectives and 21points. The committee of senior officials of the Ministry and consortiums of seven IITs constituted to ensure uninterrupted flow of Ganga will submit its final report by the month

end. The Minister has directed Central Water Commission( CWC) to prepare plans for the

construction of reservoirs along Ganga,Yamuna and its tributaries to ensure sufficient water in

these rivers during non monsoon season.

To ensure cleanness of Ganga and Yamuna , 41 teams of CWC experts visited several places to assess the impact of open drains falling into these rives and status of Sewage Treatment Plants (

STPs). Three expert teams were constituted to suggest measures for setting up of new STPs and

modernization of existing STPs. These committees have so far examined 18 major suggestions. For

riverfront development and beautification of ghats, DPRs have been prepared for two such ghats at

Delhi and Haridwar. It has also been decided to constitute Ganga Task Force to ensure proper

implementation of Ganga rejuvenation programme. Ministry of Defence will provide manpower for this.

8. MINISTRY OF RAILWAYS

1. Railways Identify Projects for 100 Per Cent Foreign Direct Investment

The Government of India has permitted 100 percent Foreign Direct Investment (FDI) in

construction, operation and maintenance of:

Suburban corridors through Public Private Partnership (PPP).

High speed train projects.

Dedicated freight lines.

Rolling stock including trains sets and locomotive/coaches manufacturing and maintenance

facilities.

Railway electrification.

Signaling system.

Freight terminal.

Passenger terminal.

Infrastructure in industrial park pertaining to railway line/siding.

Mass Rapid Transport System.

Currently there are no operational projects of Suburban corridor through PPP, High speed train

and Dedicated Freight Corridors. Also, Rolling Stock manufacturing and maintenance facilities,

Railway Electrification, Signaling system, Freight terminals, Passenger terminals, Rail sidings in

industrial parks are not separate profit centers on Indian Railways. In view of this, no revenue

generation figures of the last five years are available.

9. MINISTRY OF WOMEN AND CHILD DEVELOPMENT

Beti Bachao Beti Padhao (BBBP) Scheme

Government of India has introduced the Beti Bachao, Beti Padhao (BBBP) scheme for survival,

protection & education of the girl child. It aims to address the issue of declining Child Sex Ratio

(CSR) through a mass campaign across the country targeted at changing societal mindsets &

creating awareness about the criticality of the issue. The Scheme will have focussed intervention & multi-sectoral action in 100 districts with low Child Sex Ratio.


The criteria/norms for selection/identification of 100 districts under the BetiBachaoBetiPadao

programe are as under:-

i) 87 Districts have been selected from 23 States/UTs having Child Sex Ratio below the National average of 918.

ii) 8 Districts have been selected from 8 States/UTs having Child Sex Ratio above National

average of 918 but showing declining trend

iii) 5 Districts have been selected from 5 States/UTs having Child Sex Ratio above National

average of 918 and showing improving trend so that other parts of country can learn from them.

It is a joint initiative of Ministry of Women and Child Development, Ministry of Health and Family Welfare and Ministry of Human Resource Development. The Sectoral interventions under the

programme include the following:

i) Ministry of WCD: Promote registration of pregnancies in first trimester

in AnganwadiCentres (AWCs); Undertake Training of stakeholders; Community Mobilization &

Sensitization; Involvement of Gender Champions; Reward & recognition of institutions & frontline

workers.

ii) Ministry of Health & Family Welfare: Monitor implementation of Pre-Conception and

Pre-Natal Diagnostic Techniques (PCP&DT)Act, 1994; Increased institutional deliveries;

Registration of births; Strengthening PNDT Cells; Setting up Monitoring Committees.

iii) Ministry of Human Resource Development: Universal enrolment of girls; Decreased drop-

out rate; Girl Child friendly standards in schools; Strict implementation of Right to Education

(RTE); Construction of Functional Toilets for girls.

As the Beti Bachao, Beti Padhao (BBBP) scheme has been approved recently, no fund allocation has been made so far to the States.

10. MINISTRY OF CIVIL AVIATION

1. Air India Signs MoU with NBCC for Monetization of Land Assets

Air India signed an MoU with National Buildings Construction Corporation Ltd. (NBCC) for

monetization of surplus land assets of the national carrier. It will be a non-binding, non-exclusive agreement and each land asset will be individually evaluated for a particular mode of monetization

process. This MoU is intended to blend together NBCCs huge expertise in successful completion of several prestigious projects and Air Indias vast surplus land assets.

The MoU has provided for three models of development of properties.

In Model 1, the land value will be the Air India interest in the partnership. Money on development

of the project shall be the interest of the NBCC. The sale proceeds will be shared by NBCC and Air India in the ratio of partnership interest.

In Model 2, NBCC shall pay Air India a portion of the value of the land as upfront money. NBCC

interest in the project would be the project cost and upfront money paid to Air India. The sale

proceeds are shared by NBCC and Air India in the ratio of partnership interest.

In Model 3, NBCC shall construct the project on behalf of Air India and development cost will be invested by NBCC and will charge fixed internal rate of return (IRR) on the project on its

investment on mutually acceptable terms. This will help Air India in realizing full potential of its

surplus land assets in partnership with NBCC.

2. Introduction of comprehensive Anti-hijacking Bill 2014

The Union Cabinet chaired by the Prime Minister gave its approval for introduction of the

comprehensive Anti-Hijacking Bill 2014. The current law, the Anti-Hijacking Act, 1982, was last amended in 1994.

After the hijacking of Indian Airlines Flight IC-814 in December, 1999, it was felt necessary for

providing the award of death penalty to perpetrators of the act of hijacking. The incident of 9/11,

where aircrafts were used as weapons, also created the need to further amend the existing Act.


The Anti-Hijacking (Amendment) Bill, 2010 was introduced in the Rajya Sabha in August, 2010.

During the process of amendment, a global diplomatic Conference was held at Beijing in August-

September, 2010. India is a signatory to the Beijing Protocol signed at the Conference. This Protocol brought out new principal offences combined with ancillary offences, enlarged the scope of

hijacking, expanded jurisdiction and strengthened extradition and mutual assistance regimes. The Bill provides death punishment for the offence of the highjacking, where such offence results in the

death of a hostage or of a security personnel; or with imprisonment for life and the moveable and

immoveable property of such persons shall also be liable to be confiscated.

Keeping in view these facts, the Cabinet has given approval for:-

i. Ratification of the Beijing Protocol, 2010;

ii. Repealing of the Anti-Hijacking Act, 1982 as amended in 1994;

iii. Withdrawal of the Anti-Hijacking Amendment Bill, 2010 and

iv. Introduction of a new Anti-Hijacking Bill, 2014.

11. MINISTRY OF HUMAN RESOURCE DEVELOPMENT

1. Saksham Scholarship Scheme

The Ministry of HRD is implementing Saksham Scholarship Scheme through All India Council for Technical Education (AICTE) to provide encouragement and support to 1000 differently abled

students to persue technical education in a year.

The amount of scholarship is tuition fee of Rs.30000/- or at actual, whichever is less and Rs.

2000/- per month for l0 months as incidentals. This scholarship is for those differently abled

students whose family income is less than Rs Six lakhs per annum. The candidates will be selected

on merit at the qualifying examination to pursue technical education from amongst such candidates.

The other criteria is that the candidates should have been admitted to first year of the Degree or

Diploma programme in any of the AICTE approved institute during the academic year 2014-15

through centralized admission process of the State/Central Government.

The Saksham Scholarship Scheme has been launched on 11th November 2014, and till now 84 differently abled students have applied for scholarship under the scheme till date.

2. Pragati Scholarship for Girls

To provide encouragement and support to Girl Child to pursue technical education Pragati Scholarship has been launched by the Government from the year 2014-15. The salient features of the Pragati Scholarship are as under:

(i) Number of scholarship per annum: 4000

(ii) One Girl per family whose family income is less than Rs.6 Lakhs per annum

(iii) The candidates will be selected on merit at the qualifying examination

(iv) The candidates should have been admitted to 1st year of the Degree or diploma programme in

any of the AICTE approved institute during the academic year 2014-15 through centralized

admission process of the State /Central Government.

(v) Amount of scholarship: Tuition Fee of Rs. 30000/- or at actual, whichever is less and Rs. 2000/- per month for 10 months as incidentals each year.

At present, the Government does not propose to revise the eligibility criteria and other conditions of

the Pragati Scholarship.

3. Higher Education for Person with Special Needs (HEPSN)

The University Grant Commission (UGC) has implemented a scheme called Higher education for Persons with Special needs (HEPSN) which is basically meant for creating an environment at the


higher education institutions to enrich higher education learning experiences for differently-abled

persons. Creating awareness about the capabilities of differently-abled persons, constructions

aimed at improving accessibility, purchase of equipments to enrich learning etc. are the broad categories of assistance under the scheme.

12. MINISTRY OF CORPORATE AFFAIRS

1. Companies (Amendment) Bill, 2014

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the introduction

of the Companies (Amendment) Bill, 2014 in Parliament to make certain amendments in the

Companies Act, 2013.

The Companies Act, 2013 (Act) was notified on 29.8.2013. Out of 470 sections in the Act, 283

sections and 22 sets of Rules corresponding to such sections have so far been brought into force.

In order to address some issues raised by stakeholders such as Chartered Accountants and

professionals, following amendments in the Act have been proposed:

1. Omitting requirement for minimum paid up share capital, and consequential changes. (For ease of doing business)

2. Making common seal optional, and consequential changes for authorization for execution of

documents. (For ease of doing business)

3. Prescribing specific punishment for deposits accepted under the new Act. This was left out in the

Act inadvertently. (To remove an omission)

4. Prohibiting public inspection of Board resolutions filed in the Registry. (To meet corporate demand)

5. Including provision for writing off past losses/depreciation before declaring dividend for the year.

This was missed in the Act but included in the Rules.

6. Rectifying the requirement of transferring equity shares for which unclaimed/unpaid dividend

has been transferred to the IEPF even though subsequent dividend(s) has been claimed. (To meet corporate demand).

7. Enabling provisions to prescribe thresholds beyond which fraud shall be reported to the Central

Government (below the threshold, it will be reported to the Audit Committee). Disclosures for the

latter category also to be made in the Boards Report. (Demand of auditors)

8. Exemption u/s 185 (Loans to Directors) provided for loans to wholly owned subsidiaries and

guarantees/securities on loans taken from banks by subsidiaries. (This was provided under the Rules but being included in the Act as a matter of abundant caution).

9. Empowering Audit Committee to give omnibus approvals for related party transactions on

annual basis. (Align with SEBI policy and increase ease of doing business)

10. Replacing special resolution with ordinary resolution for approval of related party transactions by non-related shareholders. (Meet problems faced by large stakeholders who are related parties)

11. Exempt related party transactions between holding companies and wholly owned subsidiaries

from the requirement of approval of non-related shareholders. (corporate demand)

12. Bail restrictions to apply only for offence relating to fraud u/s 447. (Though earlier provision is

mitigated, concession is made to Law Ministry & ED)

13. Winding Up cases to be heard by 2-member Bench instead of a 3-member Bench. (Removal of an inadvertent error)

14. Special Courts to try only offences carrying imprisonment of two years or more. (To let

magistrate try minor violations).

13. VICE PRESIDENTS SECRETARIAT

1. Vice President Confers First Justice Nagendra Singh International Peace Award On Justice Dalveer Bhandari


The Vice President of India Shri M. Hamid Ansari conferred the First Justice Nagendra Singh International Peace Award instituted by the International Goodwill Society of India on Justice Dalveer Bhandari, Member of the International Court of Justice. Justice Bhandaris achievements in the field of law and justice are well known to this gathering. His work, as part of the higher

judiciary in our country for over two decades, speaks for itself. However, few of our judges have

had the opportunity to make their mark in the International arena. Justice Bhandari is amongst

the selected few. His presence on the ICJ is a matter of pride for all of us.

14. MINISTRY OF AGRICULTURE

1. Extension of financial assistance for setting up food processing units in North Eastern States during XII Plan

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Shri Narendra

Modi, has approved the inclusion of all North Eastern States for setting up food processing units

within the Sub scheme of the Horticulture Mission for North East & Himalayan States (HMNEH) of

the Integrated Mission for Development of Horticulture (MIDH).

North Eastern States, which are horticulturally rich, will be able to take up projects on food

processing industries, thus enabling better shelf life and value addition of produce. The programme

for setting up food processing units will cover all States in the North East and the Himalayan

Region of the country.

The total expenditure of Rs. 16,840 crore has been envisaged for implementing MIDH during the

XII Plan. This includes Rs. 15,794 crore as Government of India share out of which Rs. 3000 crore

is for the HMNEH sub scheme. Expenditure on setting up food processing units in the North

Eastern States will be met within this provision.

Background:

MIDH was launched during 2014-15 by subsuming six ongoing schemes of the Department of

Agriculture & Cooperation on horticulture development viz. three Centrally Sponsored Schemes of

the National Horticulture Mission (NHM), Horticulture Mission for North East & Himalayan States

(HMNEH), National Bamboo Mission (NBM), and three Central Sector Schemes viz. National Horticulture Board (NHB), Coconut Development Board (CDB) and Central Institute for

Horticulture CCIH) Nagaland. The interventions under MIDH include production and productivity

improvement programmes along with infrastructure development for post harvest management,

food processing and markets.

2. Setting up of National Centres for Developing New Breeds of Desi Cows

Government is implementing schemes having component for development and conservation of

indigenous breeds namely National Programme for Bovine Breeding and Dairy Development,

National Dairy Plan-I, Central Cattle Breeding Farms, Central Herd Registration Scheme and

Central Frozen Semen production and Training Institute.

With a view to conserve and develop indigenous bovine breeds the Government has provided a further focus on indigenous bovine breeds by way of a new initiative Rashtriya Gokul Mission,

under the National Programme for Bovine Breeding and Dairy Development. Scheme National

Kamdhenu Breeding Centre (NKBC) has been initiated for establishment of two NKBC as Centres of

Excellence to develop and conserve Indigenous Breeds in a holistic and scientific manner.

15. MINISTRY OF NEW AND RENEWABLE ENERGY

1. Implementation of scheme for development of Solar Parks and Ultra Mega Solar Power

Projects

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the scheme for

setting up 25 solar parks each with a capacity of 500 MW and above and Ultra Mega Solar Power

Projects in various parts of the country where large chunks of land can be spared for this purpose.


These parks will be able to accommodate over 20,000 MW of solar power projects. The Solar Parks/

Ultra Mega Solar Power Projects will be set up during five years that is from 2014-15 to 2018-19

and will require Central Government financial support of Rs.4050 crore. Smaller parks in Himalayan and other hilly States where contiguous land may be difficult to acquire in view of the

difficult terrain, will also be considered.

The solar parks will be developed in collaboration with State Governments and their agencies. The

choice of implementing agency for developing and maintaining the park is left to the State

Government. The States, applying under the scheme, will have to designate an agency for the

development of the solar park. The State Government will first nominate the implementing agency for the solar park and also identify the land for the proposed solar park. It will then send a

proposal to the Ministry of New and Renewable Energy (MNRE) for approval along with (or later) the

name of the implementing agency. The implementing agency may be sanctioned a grant of upto

Rs.25 Lakh for preparing a Detailed Project Report (DPR) of the Solar Park, conducting surveys,

etc. The DPR must be prepared in 60 days. Thereafter, application may be made by the implementing agency to SECI for the grant of up to Rs. 20 lakhs/MW or 30 percent of the project

cost including Grid-connectivity cost, whichever is lower. The approved grant will be released by

Solar Energy Corporation of India (SECI) as per milestones prescribed in the scheme.

All the States and Union Territories are eligible for benefitting under the scheme. Solar parks will

enable development of solar power in remote areas where land is inexpensive. As the transmission

system will be developed for the entire park, developers will not have to set up their own transmission lines. This will not only save money but will also avoid damaging the landscape of the

area as only limited transmission lines would be laid.

Developers would be able to set up projects very fast as they will not have to get statutory and

other clearances. India will emerge as a major solar power producing country as nowhere in the

world are solar parks being developed on such a large scale.

Background

The Finance Minister, while presenting Budget for the year 2014-15, had amongst other

things announced that the new and renewable energy deserves a very high priority and proposed to

take up Ultra Mega Solar Power Projects in Rajasthan, Gujarat, Tamil Nadu, and Laddakh in

Jammu & Kashmir for which he had set aside a sum of Rs. 500 crore in the Budget.

The scheme for development of Solar Parks and Ultra Mega Soiar Power Projects has been

conceived on the lines of the "Charanka Solar Park" in Gujarat which is a first-of-its-kind large scale Solar Park in India with contiguous developed land and transmission connectivity.

2. Implementation of scheme for setting up 1000 MW of Grid Connected Solar PV Power

projects by CPSUs and GoI organisations under various Central / State Schemes / self-use /

3rd party sale / merchant sale with Viability Gap Funding under batch V of Phase-II of JNNSM

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, has approved the scheme for setting up of 1000 MW of Grid-Connected Solar PV Power Projects with VGF

(Viability Gap Fund) support of Rs.1000 crore, by CPSUs under various Central/State Schemes, in

three years period from 2015-16 to 2017-18. The Scheme will have a mandatory condition that all

PV cells and modules used in solar plants set up under this Scheme, will be made in India.

All States and Union Territories are eligible for benefitting under the scheme. Solar parks will

enable development of solar power in remote areas where land is inexpensive. As a transmission system will be developed for the entire Park, developers will not have to set up their own

transmission lines. This will not only save money but will also avoid damaging the landscape of the

area as only limited transmission lines would be laid.

Further developers would be able to set up projects quickly as they will not have to get statutory

and other clearances. India will emerge as a major solar power producing country as nowhere in the world are solar parks are being developed on such a large scale. The CPSUs and Government of

India organisations will participate in various Central/State Government tenders, from time to time

for sale of solar power to the State.


The State Government will first nominate the implementing agency for the solar park and also

identify the land for the proposed solar park. It will then send a proposal to the Ministry of New

and Renewable Energy (MNRE) for approval along with (or later) the name of the implementing agency. The implementing agency may be sanctioned a grant of upto Rs.25 Lakh for preparing a

Detailed Project Report (DPR) of the Solar Park, conducting surveys, etc. The DPR must be

prepared in 60 days. Thereafter, application may be made by the implementing agency to Solar

Energy Corporation of India (SECI) for the grant of up to Rs. 20 lakhs/MW or 30 percent of the

project cost including Grid-connectivity cost, whichever is lower. The approved grant will be

released by SECI as per milestones prescribed in the scheme.

Background

The CPSUs and Government of India organisations like NTPC, NHPC, CIL, IREDA, Indian Railways,

etc. are coming forward to set up solar power projects. The scheme has a provision of VGF support

of Rs.1000 crore for setting up of Grid-connected solar PV power projects of 1000 MW aggregate

capacity to be developed by CPSUs under various Central/State Schemes by using cells and

modules made in India. Requisite funds for provision of the VGF support will be made available to MNRE from the National Clean Energy Fund operated by Ministry of Finance.

16. CABINET

1. Establishment of Credit Guarantee Funds for Factoring

The Union Cabinet chaired by the Prime Minister, gave its approval to establish a Credit Guarantee

Fund for Factoring for MSME units. The corpus of the Fund is Rs.500 crore. Assuming a leverage

of 5 times of the corpus, gross factoring transactions would cover Rs.20,000 crore per annum at

the end of fifth year. The corpus is estimated to be Rs.492 crore at the end of fifth year. In third year of operations, a mid-term review of the Fund may be undertaken and propose modifications if

any.

The goal is to promote "factoring without recourse". The mechanism would be:

i. Governing structure - DoFS will be "the Settlor" and shall establish a Fund for guaranteeing

factored debts. The Fund shall be under "National Credit Guarantee Trustee Company (NCGTC). It will have a Management Committee consisting of Secretary, DFS as the ex-officio Chairman. The

convenor of the Management Committee will be nominated by the Settlor. The Management

Committee shall be responsible for all policy aspects of the Fund.

ii. Coverage - Credit guarantee cover for a maximum of 50 percent of factored debt will be provided

under the Fund. To start with, only transactions covered under the Factoring Regulation Act, 2011

are to be included.

iii. Guarantee Fee - The guarantee fee chargeable from the MLIs shall not exceed 0.75 percent per

quarter of the guaranteed factored debts for the amount of guarantee cover.

iv. Filing of claims by factors - Claims shall be filed by MLIs with the proposed Fund, as per

guidelines prescribed by the Management Committee.

v. Interest rate - The actual interest rate to be charged from the MSMEs will be left to Factors.

vi. Modifications to the parameters under the scheme - The key elements of the structure have

been proposed based on very preliminary data in the sector. These may require to be revisited and

will be done with the approval of FM.

Factoring is a financing arrangement for suppliers by making prepayments against invoices. This

provides liquidity to MSMEs and facilitates collection of receivables. India`s factoring volume is

below Rs.20,000 crore. The Factoring Regulation Act, 2012 provides the legal framework for factoring. RBI has issued guidelines. However, there is no insurance for factoring.

2.Setting up over 300 MW of Grid-Connected Solar PV Power Projects by Defence

Establishments under Ministry of Defence and Para Military Forces with viability gap

funding under Phase-II/III of JNNSM


The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, gave its approval for the

following

i. Setting up over 300 MW of Grid-Connected and Off-Grid Solar PV Power Projects by Defence Establishments under Ministry of Defence and Para Military Force under Ministry of Home Affairs

(MHA) with Viability Gap Fund (VGF) under the Jawaharlal Nehru National Solar Mission (JNNSM)

in five years that is from 2014 to 2019;

ii. Stipulation of mandatory condition that all PV cells and modules used in the solar plants set up

under this Scheme will be made in India;

iii. Provision of an amount of Rs.750 crore for Ministry of New and Renewable Energy (MNRE) from the National Clean Energy Fund (NCEF) for the purpose as recommended by the IMG; and

iv. Permission for right to use Defence land by the developers chosen by Defence Establishments

by way of lease and otherwise or for self- use of the same by Defence Establishments themselves,

for the purpose of setting up of Solar Power Projects and sale of excess power to distribution

companies.

The Defence organisations/establishments will be free to own the power projects that is get an EPC

contractor to build the project for them or get a developer who makes the investment and supplies

power at a fixed tariff of Rs. 5.50 per unit.

Installation of solar power plants in Defence sector by utilising available land/rooftop will help in

achieving energy security and promote ecologically sustainable growth. The use of domestically

manufactured equipment shall boost indigenous production of solar cells and modules. Defence

organisation will be able to get clean power at reasonable price for 25 years.

3. Amendment for the seats in the Legislative Council for the successor State of Andhra Pradesh in Andhra Pradesh Reorganisation Act, 2014

The Union Cabinet chaired by the Prime Minister, Narendra Modi, gave its approval for amending

section 23(1) and section 23(2)(i)(a) of the Andhra Pradesh Reorganisation Act, 2014 to rectify the

anomaly in allocating the number of seats in Andhra Pradesh State Legislative Council and to

enhance the total number of seats to 58 as per the provisions of the Constitution.

Since the existing strength of Andhra Pradesh Legislative Assembly is 175 and 1/3rd of its strength

is constitutionally permissible, it is hence proposed to increase the strength to 58 MLCs from

current strength of 50 MLCs.

3.Insurance Laws (Amendment) Ordinance, 2014 to Make Amendments to the Insurance Act,

1938, the General Insurance Business (Nationalization) Act, 1972 and the Insurance

Regulatory and Development Authority Act, 1999

The Union Cabinet had approved the promulgation of the Insurance Laws (Amendment) Ordinance

2014 to amend the Insurance Act, 1938, the General Insurance Business (Nationalisation) Act,

1972 and the Insurance Regulatory and Development Authority Act, 1999.

The proposed step is also for furtherance of the broad objective of deepening the reform process in the economy in general and the Insurance sector in particular. This is of paramount importance to

create an investor friendly environment in the country to achieve the various goals related to

enhanced investment, economic growth and job creation in the economy.

Some of these key aspects incorporated in the proposed Ordinance are as follows:

(a) The Ordinance is aimed at amending the Insurance Act, 1938, the General Insurance Business

(Nationalization) Act, 1972 and the Insurance Regulatory and Development Authority Act, 1999 to

remove archaic and redundant provisions in the Insurance Laws, empower IRDA to enable more

effective regulation and enhance the foreign equity investment cap in an Indian Insurance

Company from 26 to 49% with the safeguard of Indian ownership and control.

(b) Insurance penetration in India is very low compared to the global average. The sector is in need


of capital to expand and ensure better access to insurance services, especially in rural areas and

for economically weaker sections. Enhancement of the foreign equity cap from 26% to 49% with the

safeguard of Indian Ownership and Control is a critical aspect of the Ordinance, which will potentially enhance capital availability.

(c) Towards these ends, the content of the Ordinance is aimed also at allowing insurance

companies to raise capital through new and innovative instruments, which would help capital

intensive insurance industry to garner resources for business growth;

(d) The Ordinance will also enable empowering IRDA to regulate key aspects of Insurance Company

operations in areas like solvency, investments, expenses and commissions, which is in keeping

with global best practices of regulation. The absence of such empowerment for IRDA potentially

undermines faith in our regulatory framework and discourages investment in the sector.

(e) The Ordinance will also substantially enhance penalty provisions to ensure compliance with

Insurance Laws by companies, which is essential to uphold the consumer interest.

17. MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS

1. Amendments to the Lokpal and Lokayuktas Act, 2013 (1 of 2014) and the Delhi Special

Police Establishment Act, 1946 (25 of 1946) and for introduction of a Bill in Parliament

The Union Cabinet chaired by the Prime Minister gave its approval for amending the Lokpal and Lokayuktas Act, 2013 (1 of 2014) and the Delhi Special Police Establishment Act, 1946 (25 of

1946) and for introduction of a Bill in Parliament during the winter session of Parliament, on the

lines of the Lokpal and Lokayuktas and other related law (Amendment) Bill, 2014 with such

modifications or changes of drafting and consequential nature, if any, as may be considered

necessary.

The proposed amendments will address some crucial deficiencies noticed in both the Acts as

under:

a) as regards the composition of the Selection Committee for selection of the Chairperson and

Members of Lokpal, by providing, inter alia, that when there is no Leader of Opposition In the

House of the People, recognized as such, the expression "Leader of Opposition" shall include the

"Leader of the Largest Party in Opposition of the Government" in the Lok Sabha;

b) for providing for qualifications for appointment of Director of Prosecution in the CBI and for his

functional independence.

The proposed amendments will also address other deficiencies in the Lokpal and Lokayuktas Act,

2013

The Act, as now proposed to be amended, seeks to remove the deficiencies and provide for the alternative of Leader of Single Largest Opposition Party in the Lok Sabha in the event there is no

Leader of Opposition in the Lok Sabha, for being represented on the Selection Committee for

appointments of Chairperson and Members of. Lok Pal. The amendments will, inter alia, also

ensure functional independence to the Director of Prosecution under the Delhi Special Police

Establishment (DSPE) Act. The amendments seek to synchronize the provisions of the Lokpal and

Lokayuktas Act with the existing regulating Acts, Rules and Regulations in respect of declaration of assets and liabilities by various categories of public servants and establish appropriate

mechanisms to obtain and publish such information received from public servants, for the benefit

of the public. The proposed amendments will, also ensure functional independence to the Director

of Prosecution under

current affairs

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