miscellaneous - wordpress.com · 30/05/2015 · canada, urad and moong (green gram) from myanmar,...

(Days/ Dates; Anniversaries,

Govt picks new DRDO chief, scientific advisor to defence minister

Over three months after it asked Avinash Chander to resign, the government appointed

Secretary, Department of Defence Research and Development

G S Reddy has been appointed as scientific advisor to the Defence Mi

ref: http://indianexpress.com/article/india/india

United Nations Peacekeeping Day

The event is part of the worldwide celebrations undertaken on the day to commemorate all brave men and

women who have contributed towards establishing peace and security in the war torn countries and ravaged

societies across the world.

We should acknowledge the contribution of the Indian Armed Forces in about 50 peacekeeping missions

across the world and remember all those valiant soldiers who laid down their life in the line of duty at a place

away from their homeland.

The nature of conflicts is changing

requirements of such complexities of time and space.

India began its tryst with UN Peacekeeping by providing the

mentioning that the Indian Army is among the top three contributors to UN Missions.

ref: http://pib.nic.in;

(Indian Heritage and Culture, History and Geography of the World, Gender Issues and Society

No relevant news item found.

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Miscellaneous

Anniversaries, Persons in news, New Appointments, Sports related


Over three months after it asked Avinash Chander to resign, the government appointed

Secretary, Department of Defence Research and Development-cum-Director General, DRDO

scientific advisor to the Defence Minister.

ref: http://indianexpress.com/article/india/india-others/govt-picks-new-drdo-chief-scientific-advisor-to-defence

United Nations Peacekeeping Day-29 May



ge the contribution of the Indian Armed Forces in about 50 peacekeeping missions


changing at a rapid pace and everyone had to evolve, adjust and modify to suit the

requirements of such complexities of time and space.

India began its tryst with UN Peacekeeping by providing the Custodian Force in Korea, 1950

n Army is among the top three contributors to UN Missions.

General Studies-1

Indian Heritage and Culture, History and Geography of the World, Gender Issues and Society

Sports related, etc)


Over three months after it asked Avinash Chander to resign, the government appointed S Christopher as

Director General, DRDO.

defence-minister/;



ge the contribution of the Indian Armed Forces in about 50 peacekeeping missions


at a rapid pace and everyone had to evolve, adjust and modify to suit the

Custodian Force in Korea, 1950. It is worth

Indian Heritage and Culture, History and Geography of the World, Gender Issues and Society)

http://pib.nic.in/

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General Studies-2

(Governance, Constitution, Polity, Social Justice and Indian Diaspora)

Cancer cases on the rise but death rate is falling

The incidence of cancer has grown over the last decade in India although the rate of mortality has fallen, new

data shows. Breast cancer is the fastest growing in terms of incidence for women and kills the most, and

prostate cancer is the fastest-growing in incidence for men,

while lung cancer killed the most men.

Globally, the incidence of cancer is rising, but even as it has

become the second leading cause of death, mortality is

falling with better detection and treatment across

countries.

India has a lower incidence of cancer than the global

average, with just half the number of new cases recorded

every year per capita than the global average. However, the

incidence has grown from over 700 new cases per million

population to nearly 1,000 new cases per million people.

ref: The Hindu;

National Electoral Roll Purification and Authentication Programme

(NERPAP), 2015

The Election Commission, with the main objective of preparing an error free, purified and authenticated

Electoral Roll, has launched National Electoral Roll Purification and Authentication Programme (NERPAP),

2015.

Under this programme, beside some other activities, linking and authentication of EPIC data of electors with

Aadhaar data is also being done and for that purpose, the electors have been given facility to feed their

Aadhaar number and EPIC No. at National Voters Service Portal (NVSP) or furnish the said detail through the

mode of SMS/email/call center/submission of copy of both documents to Electoral Registration Officers

(EROs)/ Booth Level Officers (BLOs). Apart from the above, BLOs are also collecting the data from electors

during door to door survey on voluntary basis only.

The Commission, to avoid confusion among electors and the electoral machinery, has issued necessary

instructions to the Chief Electoral Officers (CEOs) of the States/UTs secifying that furnishing of Aadhaar

number by electors is not mandatory and it is only optional, as directed by the Hon’ble Supreme Court. It has

been made amply clear that no electoral service will be denied to any elector on ground of non-furnishing of

Aadhaar number.

Non furnishing of Aadhaar number will not be a ground for rejection or objection of application for new

enrolment or for deletion of name of an existing elector from Electoral Roll. The CEOs have been further

clarified that collection of Aadhaar number is only for the purpose of authentication of details of elector and

confidentiality and security of data so collected must be ensured during the process of feeding and seeding of

the same in the Electoral Roll database.

ref: The Hindu;

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India tops world hunger list with 194 million people

India is home to the highest number of hungry people in the world, at 194 million, surpassing China, according

to UN annual hunger report. At the global level, the corresponding figure dropped to 795 million in 2014-15,

from 1 billion in 1990-92, with East Asia led by China accounting for most of the reductions.

In 1990-92, those who were starved of food in India numbered 210.1 million, which came down to 194.6

million in 2014-15. “India has made great strides in

reducing the proportion of food insecure persons in

the overall population, but according to FAO, it still has

over 194 million hungry persons. India’s numerous

social programmes are expected to continue to fight

hunger and poverty,” the report stated.

However, China stood out as the reduction in the

number of hungry people was much higher than in

India, which came down to 133.8 million in 2014-15

from 289 million in 1990-92. A majority — 72 out of

129 — of the countries monitored by FAO have

achieved the Millennium Development Goal target of

halving the prevalence of undernourishment by 2015.

The overall analysis suggested that inclusive economic

growth, agricultural investments and social protection,

along with political stability, can eradicate hunger.

ref: The Hindu;

General Studies-3

(Technology, Economic Development, Bio-diversity, Environment, Security & Disaster Management)

Dark flows the Ganga

No success yet

Efforts to clean the river have been on since 1986, when the first Ganga Action Plan was announced by the

then Congress government.

Since then, thousands of crores of rupees has been pumped into river conservation efforts without any

success.

This year, the Centre set aside Rs. 20,000 crore for “Namami Ganga”, a project to fix the river’s long-standing

pollution problem. The usually heavily silted ghats now appear clean. But cleaning the river will be a more

daunting exercise than cleaning the ghats, river conservation activists say.

Focus on sewage treatment plants misplaced?

The holy city of Varanasi sees 60,000 to one lakh visitors every day, a majority of them pilgrims. For most

pilgrims, a journey to the city is incomplete without taking a ‘holy’ dip in the Ganga, despite its water being

deemed unfit for bathing. As part of the municipal body’s efforts to clean the river, the city’s sewage

treatment capacity will be increased.

However, activists, involved in the movement to

save the Ganga, point out that the Namami Ganga

project’s singular focus on sewage treatment plants

(STPs), with little attention to problems posed by the

restricted flow of the river, is a recipe for failure.

Activated sludge plants now deployed for sewage

treatment did not have the capacity to remove

faecal coliform bacteria. The earlier clean

into which crores of rupees was pumped, failed as

these plants ran out of capacity.

Interlinking of rivers, construction of new dams,

water diversion and extraction for drinki

supply and other purposes had also resulted in the

deterioration of the water quality.

ref: The Hindu;

Explained: Why we need to sharply raise MSP for

Pulses are once again on the boil, with consumers paying around 50

(black gram) dal than they did a year ago. Even chana (chick pea), which had turned cheaper in the past

years, has seen a 40 % jump — much of it in just the last

Finance Minister Arun Jaitley has blamed the p

these days”. He is partially right. The chana crop, badly affected by unseasonal rain and hailstorms in March, is

over a fifth lower compared to last year. Overall pulses production is offici

19.25 million tonnes (mt) to 17.38 mt in 2014

But this assessment ignores a more fundamental problem with pulses that ought to be addressed. There is,

indeed, no better time to do it than now.

India is today the world’s biggest producer as well as consumer of pulses. It also imports some 4 mt annually

mainly yellow/green peas (matar) from Canada and Russia, chana from Australia, lentils (masoor) from

Canada, urad and moong (green gram) from Myanmar, and tur from Myan

Malawi.

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However, activists, involved in the movement to

ut that the Namami Ganga

project’s singular focus on sewage treatment plants

(STPs), with little attention to problems posed by the

restricted flow of the river, is a recipe for failure.

Activated sludge plants now deployed for sewage

e the capacity to remove

faecal coliform bacteria. The earlier clean-up efforts,

into which crores of rupees was pumped, failed as

Interlinking of rivers, construction of new dams,

water diversion and extraction for drinking water

supply and other purposes had also resulted in the

Explained: Why we need to sharply raise MSP for pulses

Pulses are once again on the boil, with consumers paying around 50 % more for tur (pigeon pea) and urad

(black gram) dal than they did a year ago. Even chana (chick pea), which had turned cheaper in the past

much of it in just the last 3 months.

Finance Minister Arun Jaitley has blamed the price spike on supply disruptions, which “is an issue with pulses


over a fifth lower compared to last year. Overall pulses production is officially estimated to have fallen from

19.25 million tonnes (mt) to 17.38 mt in 2014-05.


indeed, no better time to do it than now.

’s biggest producer as well as consumer of pulses. It also imports some 4 mt annually


Canada, urad and moong (green gram) from Myanmar, and tur from Myanmar, Tanzania, Mozambique and

more for tur (pigeon pea) and urad

(black gram) dal than they did a year ago. Even chana (chick pea), which had turned cheaper in the past 3

rice spike on supply disruptions, which “is an issue with pulses


ally estimated to have fallen from


’s biggest producer as well as consumer of pulses. It also imports some 4 mt annually —


mar, Tanzania, Mozambique and

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But unlike edible oils, wheat, corn or sugar, there aren’t really too many global suppliers of pulses. As a result,

international prices tend to shoot up the moment there are supply concerns in India. We have seen it this

time, with imported Australian chana and Burmese ‘lemon’ tur currently quoting 56-66 % higher than a year

ago even in the midst of a general global crash in agri-commodity prices.

Given the limits to world supplies, this means there is simply no alternative to increasing domestic production

to meet India’s pulses requirements that will only grow in the years ahead. This is an opportune time to

announce a sharp increase in minimum support prices (MSP). It should be done immediately, ahead of the

monsoon’s onset, and well before kharif plantings begin, so as to send the right signals to growers.

The MSP of tur, for instance, is now Rs 4,350 per quintal. There is no harm raising this to, say, Rs 5,000. At that

price, and taking 70 % dal recovery — the costs of de-husking and splitting the raw grain can be recovered

from sale of the balance 30 % by-products (husk and brokens) — the milled final product could be sold within

Rs 75 per kg. Consumers won’t mind that, when tur dal is already retailing at Rs 100-plus.

Bridging the domestic demand-supply gap — India’s pulses imports were valued at $ 2.79 billion in 2014-15 —

is, however, not the sole reason why MSPs need to be substantially hiked to boost production. Being

leguminous plants whose root nodules harbour bacteria that naturally “fix” atmospheric nitrogen, pulses can

save roughly one bag of urea per hectare for the succeeding crop. Promoting pulses cultivation is, therefore,

good both from the standpoint of soil rejuvenation and correcting nutrient imbalance through reduced

consumption of over-subsidised urea.

There is also the equity dimension. Pulses are largely grown in marginal lands prone to moisture stress.

Offering remunerative prices would not only help the less well-off producers of these regions, but may even

induce farmers in irrigated areas to switch from more water-guzzling paddy and sugarcane to tur, or from

wheat to chana. That is not a bad thing when the country is sitting on surplus wheat, rice and sugar stocks,

even as dal prices have gone through the roof for want of supply.

But merely announcing higher MSPs isn’t enough. We know how for three years, open market prices of chana

hovered at Rs 2,600-2,700 per quintal, as against the official MSP of Rs 3,000-3,100. When farmers did not get

the price that was promised, they simply diverted their chana area to other crops. The price of that is now

being paid by consumers.

The government should commit itself to procuring pulses at the announced MSPs, as it has done for wheat

with even 10 per cent shriveled and broken grains and 50 % lustre loss content this time. If 30 mt each of

wheat and rice can be bought by state agencies every year, there’s no reason why 3-4 mt of pulses cannot be

purchased and sold through the public distribution system for the protein-starved masses.

ref: http://indianexpress.com/article/explained/explained-why-we-need-to-sharply-raise-msp-for-pulses/;

Explained: Toxin overload, how heat kills?

As deaths attributed to heat soar countrywide, experts point to two facts: one, excessive heat retention in the

body can lead to fatal conditions at high temperatures and, two, after a certain temperature, things get

difficult to manage, and need ICU care.

Experts also say a heat-stroke death can be identified only after examination, and after other causes have

been ruled out. Symptoms usually seen in this weather are those of heat fatigue or heat exhaustion. Excessive

heat increases metabolic activity, leading to a drop in blood pressure and increased sweating. The resulting

dehydration and electrolyte imbalance can be corrected by giving cold fluids and electrolytes,

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Clinically, a heat stroke occurs only after body temperature crosses 104 degrees F, when excessive metabolism

leads to a sharp fall in blood pressure and oxygen levels, a condition called hypoxia. Increase in metabolism

primarily puts pressure on the heart in a very short time. It causes expansion of vessels, a major drop in blood

pressure, and hypoxia. Metabolism goes haywire, creating a toxin overload which affects multiple organs.

Prolonged exposure to even moderate heat, and poor nutrition and hydration levels in these circumstances,

too can lead to hypoxia, experts say. Those with pre-existing metabolic disorders like diabetes, the obese or

the elderly, are more vulnerable.

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Hypoxia affects kidneys, liver and blood. Fluid retention may lead to renal failure; it also affects the heart and

brain and, eventually, multiorgan failure. Muscles start to break down, a condition called rhabdomyolosis. This

releases additional toxins which leads to electrolyte imbalances. Hypoxia also causes blood components to

disintegrate, which can lead to either clotting or coagulation, or excessive bleeding. Humidity, as in coastal

areas, aggravates symptoms

Autopsies usually show non-specific but characteristic findings. These indications can also happen in other

conditions. Testing of tissues and organs can give additional findings on electrolyte levels, biochemical tests

can give levels of urea or creatinine, which are indicative of metabolic findings. But all of these are also

indicative of other conditions. We also have to rule out other causes like heart attacks. The viscera report has

to be negative to rule out poisoning. These, coupled with general characteristic findings, are used to identify a

heat-stroke death.

ref: http://indianexpress.com/article/explained/explained-toxin-overload-how-heat-kills/;

Explained: Tripura junks the controversial AFSPA, where do the other

states in Northeast stand?

Tripura has withdrawn the Armed Forces (Special Powers) Act (AFSPA), but the law continues to be in force

elsewhere in the Northeast, besides in J&K. Tripura imposed AFSPA in February 1997 after a spate of killings

and kidnappings by the National Liberation Front of Tripura, bringing two-thirds of its then 42 police station

areas under its provisions. As the Left Front government made its decision on Wednesday, AFSPA was in force

in only 26 of the state’s 74 police station areas.

NAGALAND: Older than state

AFSPA was enacted in 1958, before the birth of Nagaland in December 1961. AFSPA came in the context of the

Naga rebellion in what was then the Naga Hills district of Assam — and has refused to leave more than 50

years after the new state was created, thanks to continued insurgencies by multiple rebel groups. But the

situation has changed dramatically since the NSCN(M) — “the mother of all insurgencies” — began peace talks

over 14 years ago, and most civil society groups in Nagaland are now opposed to the continuation of AFSPA.

MANIPUR: Police equally brutal

In Manipur, where the clamour for the repeal of AFPSA has been loudest — with Irom Sharmila on a hunger-

strike since December 2000 — the government, on August 12, 2004, withdrew the Act in seven assembly

constituencies comprising the Imphal municipal area. And yet, there have been several instances of the state

police force getting involved in brutal extra-judicial killings of civilians, including a pregnant woman, in the

capital. The Congress in its 2012 campaign promised to withdraw AFSPA if voted back to power. It got re-

elected, but AFSPA stays.

ASSAM: Outfits weaken, but AFSPA renewed

Assam was the first state to have the AFSPA in 1958. The Act returned to present-day Assam on November 27-

28, 1990, when the state was declared a Disturbed Area in the wake of largescale violence by the ULFA. AFSPA

has been in force without a break ever since, except in the Guwahati municipal area, from where it was lifted

about a decade ago. In November 2014, the union Home Ministry extended the application of AFSPA in Assam

for one more year in view of “violent incidents caused by the underground outfits viz ULFA(I), NDFB(S) and the

border areas of the state of Assam by underground outfits like GNLA, KPLT, UALA, ULFA (I), NDFB(S), NSCN (IM)

and NSCN (K)”.

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MEGHALAYA: Hot pursuit from Assam areas

AFSPA is not in force in Meghalaya despite a series of violent acts by armed insurgent groups including the

most dreaded Garo National Liberation Army (GNLA). But areas within 20 km of the state’s boundary with

Assam are under the purview of the Act. The Home Ministry has declared this 20-km belt “disturbed”, and

armed forces deployed in Assam are permitted to go into this area in hot pursuit of rebel groups.

ARUNACHAL PRADESH: Fresh extension

Three districts of the state — Tirap, Changlang and the newly-created Longding — had been under AFSPA since

1991, and the Centre on March 27 brought the whole state under it. But strong protests by the state

government and civil society organisations forced the central government to subsequently limit its application

to the districts bordering Assam. That leaves seven districts of Arunachal Pradesh out of AFSPA. But even

before the March 27 notification — in fact, since 1990 — a 20-km stretch inside the state along the border

with Assam had been under AFSPA.

MIZORAM: An island of peace

Curtains fell on the insurgency in Mizoram on June 30, 1986, with the signing of the Mizo Accord, said to be

the only successful accord in the country so far. The signing of the accord simultaneously led to the withdrawal

of AFSPA, which had been imposed on the state since the time it was the Lushai Hills district of Assam in the

mid-1960s. And yet, the wounds don’t seem to have healed completely. Memories of the killing of innocent

people, rape, destruction of property, burning of villages and largescale displacement of people remain fresh

in the minds of many Mizos.

ref: http://indianexpress.com/article/explained/explained-tripura-junks-the-afspawhere-do-the-other-states-in-northeast-stand/;

EXPLAINED : promised lake on Tawi

What is the artificial lake project?

Due to the extraction of sand and boulders, and the retreat of its source, the Kali Kundi glacier in Bhaderwah,

the Tawi remains dry along a large part of its 300-km course for most of the year. The project was conceived in

2006-08, when Ghulam Nabi Azad was chief minister. Azad told the assembly that a barrage would be built

near Gujjar Nagar, and the lake would stretch to the Sidhrah Bypass bridge. The project was sanctioned by the

Centre in 2010 under the Accelerated Irrigation Benefits Programme. But the state government decided to

shift the 4-metre gated barrage to Bhagwati Nagar, so the lake fringe moved to the Gujjar Nagar bridge. There

were allegations that this was done to benefit a Congress minister in the then Omar Abdullah government.

Who was to execute the project? At what estimated cost?

Initial estimate was Rs 50 crore, and the state Irrigation and Flood Control Department was to complete the

project by July 2012. The estimate was revised to Rs 70 crore, and the deadline was extended first to July 2013

and subsequently, to December 2013, March 2014 and finally, July 2014.

What is the present status of the lake?

Nearly Rs 50 lakh have been spent, but the Urban Environmental Engineering and Flood Control Departments

are yet to start work to divert 17 nullahs flowing into the river from the city, and to raise the embankments

along its banks. Also, Pakistan has claimed that building the artificial lake violates the Indus Water Treaty.

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What is the latest development?

A fortnight ago, Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed told reporters that the artificial

lake project was not viable either financially or technically, and, like the Chenab, the lake would be filled with

silt every rainy season. This upset those who saw it as a ploy by ‘Kashmir’ to deprive Jammu of a tourism

development project.

Where does the BJP stand?

BJP ministers, including Deputy Chief Minister Dr Nirmal Singh, have rejected Mufti’s statement, and assured

that the lake would be constructed at its identified site. They have been claiming the backing of Uma Bharti,

union Minister for Water Resources.

What happens now?

Despite the assertions of the BJP, the state government has not clarified on the issue. Resentment is building

up among voters who last year gave an unprecedented election mandate to the BJP. After Wednesday’s

bandh, there have been threats of an intensified agitation unless the BJP ministers in Mufti government

clarified their stand in the next 10 days.

ref: http://indianexpress.com/article/explained/simply-put-as-promised-lake-on-tawi-crawls-patience-runs-dry-in-jammu/;

Digital Locker – 1,00,000 Mark in 100 Days

After Digital Locker trial version was launched in Feb, 2015 over 1,00,000 Digital Lockers have been opened by

the Citizens, within 100 days of its launch. Digital Locker is one of the key initiatives under the Digital India

vision, which is aimed at eliminating the usage of physical documents.

Digital Locker will allow various agencies to push the documents into the Digital Locker of citizens mapped to

their Aadhaar Number. It also allows citizens to upload their own electronic documents with or without

digitally signing them using the e-sign facility allowing them to store all such documents for posterity.

The Digital Locker system has the following advantages:

a) Print anytime from anywhere – All electronic documents will be in a printable, enabling user to print from

anywhere. Also, incase of disasters, non availability of documents, it is easily accessible by user even

when the documents are lost

b) Convenience – No more long queues or procedures to get the documents.

c) Free of cost – Digital Locker facility is provided to Indian Citizen free of charge and will enable its use by

lower strata of society.

d) Shareable – residents can easily share the documents with other agencies/departments without having

to share photocopies, scan copies, document uploads, etc. Sharing can easily be done even on feature

phones even via SMS and text based systems.

e) Verifiable – most importantly, government documents and certificates issued can be verified online,

eliminating the use of fake documents/certificates.

f) Secure - Only the owner has the right to see and share the documents as per their own requirement and

convenience.

Few other benefits envisaged by users are:

1. A number of individual certificates such as Birth, Domicile, etc., may be applied online to speed up the process.

The user agencies will be authorised to access the documents by the owner of digital locker.

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Also, the local bodies issuing these documents can push these certificates in digital form directly in the Digital

Locker eliminating the risk of fake document. This will greatly benefit the people who find it difficult to have

proper storage space for physical documents. This would be safe during the National Disaster such as floods,

cyclones, fire etc.

2. Hassle free registration of

(i) Sim Card

(ii) LPG connection

(iii) Driving License

In effect Digital Locker will touch every Citizen life by bringing in lot of convenience and therefore fulfilling the

government vision of citizen centric governance model of providing services at the door step of citizens.

In India, most of the government documents used for various purposes are in physical form. This inter alia

means that every time a citizen needs to avail any service, a self attested photo copy either in physical or

scanned form is shared.

Use of physical copies of document creates huge overheads in terms of manual verification, paper storage,

manual audits etc. and thereby incurring cost and inconvenience for all the stakeholders. This also creates

problem for various agencies to verify the authenticity of these documents, thus, creating loopholes in the eco

system leading to usage of fake documents/certificates by certain unscrupulous elements. The Digital Locker is

going to address these concerns.


Major Initiatives and Achievements of the Ministry of Corporate Affairs

in the Last One Year

Furthering ease of doing business - Companies Act, 2013:

16 amendments in the Companies Act, 2013 approved by the Parliament – these amendments are aimed at

facilitating business and addressing concerns raised by stakeholders. A summary of the amendments is

enclosed at Annexure-1.

A new integrated e-Form INC-29 has been made available w.e.f 1st

May, 2015 for companies. The Form does

away with filing multiple applications/forms saving time and payable fees. Detail may be seen at Annexure-2.

24 amendments in Rules under the Companies Act, 2013, 8 Removal of Difficulty Orders as well as many

clarifications were also issued.

Certain prescribed forms were discontinued or merged with existing forms. Other Forms were also simplified.

Setting up of a Committee to look into further modifications required in the Companies Act, 2013:

A broad based Committee consisting of representatives of the Institute of Company Secretaries of India, the

Institute of Chartered Accountants of India or some industry chambers and from the Ministry is being

constituted to look into requirement for further changes in the Companies Act, 2013.

Notification of Indian Accounting Standards (Ind AS):

Consequent to announcement in the budget of Financial Year 2014-15 (para 128), accounting standards

converged with global standards, namely, International Financial Reporting Standards (IFRS) were framed in

consultation with the Institute of Chartered Accountants of India and National Advisory Committee on

http://pib.nic.in/

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Accounting Standards. These thirty nine standards, called Indian Accounting standards (Ind AS) have been

notified on 16.02.2015 as Companies (Indian Accounting Standards) Rules, 2015. These accounting standards

are significantly congruent with the global standards, with minimum carve-outs and are expected to boost

investor confidence.

Constitution of NCLT and NCLAT:

The Constitution Bench delivered its final order on the long standing litigation. The constitution of the NCLT is

being taken up in an expeditious manner.


Framework for Revival and Rehabilitation of MSMEs

The Ministry of Micro, Small & Medium Enterprises has notified a Framework for Revival and Rehabilitation of

MSMEs, in exercise of the powers conferred under section 9 of the Micro, Small and Medium Enterprises

Development Act, 2006.

In India, the existing mechanism for addressing revival, rehabilitation and exit of small enterprises is very weak.

The most recent Doing Business (DB) Report, a joint project of the World Bank and the International Finance

Corporation, ranks India 137 out of the 189 economies for resolving insolvencies. It notes that resolving

insolvency takes 4.3 years on average and costs 9.0% of the debtor’s estate, with the most likely outcome

being that the company will be sold as piecemeal sale.

Pending a detailed revision of the legal framework for resolving insolvency/bankruptcy, there is a felt need for

special dispensation for revival and exit of MSMEs. The MSMEs facing insolvency/bankruptcy need to be

provided legal opportunities to revive their units. This could be through a scheme for re-organization and

rehabilitation, which balances the interests of the creditors and debtors.

Salient Features

The main features of the framework which complements to the features of the existing RBI notification of

2012 and 2014 are as below:

1. Identification of incipient stress:

Before a loan account of a MSME turns into a Non Performing Asset (NPA), banks/creditors are required to

identify incipient stress in the account. Any Micro, Small or Medium enterprise may also voluntarily initiate

proceedings under this Order if enterprise reasonably apprehends failure of its business or its inability or likely

inability to pay debts and before the accumulated losses of the enterprise equals to half or more of its entire

net worth.

2. Committees for Distressed Micro, Small and Medium Enterprises:

All banks shall constitute one or more Committees at such locations as may be considered necessary by the

board of directors of such bank to provide reasonable access to all eligible Micro, Small and Medium

enterprises which have availed credit facilities from such bank. The Committee shall comprise of

representatives of the Bank, independent expert and representative of the State Government.

3. Corrective Action Plan (CAP) by the Committee:

The Committee may explore various options to resolve the stress in the account. The intention is to arrive at

an early and feasible solution to preserve the economic value of the underlying assets as well as the lenders’

loans and also to allow the enterprise to continue with its business. During the period of operation of

Corrective Action Plan (CAP), the enterprise shall be allowed to avail both secured and unsecured credit for its

business operations.

http://pib.nic.in/

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4. Options under Corrective Action Plan (CAP):

The options under Corrective Action Plan (CAP) by the Committee may include:

(i) Rectification - regularize the account so that the account does not slip into the non-performing asset (NPA)

category,

(ii) restructuring the account if it is prima facie viable and the borrower is not a willful defaulter, and

(iii) recovery - Once the first two options at (i) and (ii) above are seen as not feasible, due recovery process may

be resorted to.

5. Restructuring Process:

If the Committee decides restructuring of the account as CAP, it will have the option of either referring the

account to Enterprise Debt Restructuring (EDR) Cell after a decision to restructure is taken or restructure the

same independent of the EDR mechanism. If the Committee decides to restructure an account independent of

the EDR mechanism, the Committee should carry out the detailed Techno-Economic Viability (TEV) study, and

if found viable, finalise the restructuring package within 30 days from the date of signing off the final CAP.

6. Prudential Norms on Asset Classification and Provisioning:

While a restructuring proposal is under consideration by the Committee/EDR, the usual asset classification

norm would continue to apply. The process of re-classification of an asset should not stop merely because

restructuring proposal is under consideration by the Committee/EDR. However, as an incentive for quick

implementation of a restructuring package, the special asset classification benefit on restructuring of accounts

as per extant instructions would be available for accounts undertaken for restructuring under these guidelines.

7. Willful Defaulters and Non-Cooperative Borrowers:

Banks are required to strictly adhere to the guidelines issued by RBI from time to time regarding treatment of

Willful Defaulters.

8. Review:

In case the Committee decides that recovery action is to be initiated against an enterprise, such

enterprise may request for a review of the decision by the Committee within a period of fifteen working days

from the date of receipt of the decision of the Committee. Application filed under this section shall be decided

by the Committee within a period of thirty days from the date of filing and if as a consequence of such review,

the Committee decides to pursue a fresh corrective action plan for revival of the enterprise shall apply

accordingly.

It is expected that above Framework help the lenders and debtors in revival and rehabilitation of enterprises

and shall unlock the potential of MSMEs.


http://pib.nic.in/

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India and the World

(International Relations)

The Chinese fault line in foreign policy

PM Modi’s record of visiting 18 countries in 57 days has to be appreciated. In marked contrast to visits by

previous PMs to foreign countries, each of Mr. Modi’s visits has involved detailed planning to ensure the best

teleological impact. In terms of economic content — new business openings, substantial increases in FDI flows,

estimated to be around $28.8 billion, and talk of India as being the next big investment destination.

Mixed results

Foreign visits have the added advantage of linking the PM’s persona with outcomes, and where the PM’s

image becomes the crucial selling point. Modi’s visit to the US in 2014 demonstrated what impact a brilliantly

calibrated campaign could produce.

However, on many of the substantive issues, the balance sheet tends to be mixed. For instance, the PM kept

his commitment to pursue an “activist neighbourhood policy”. Yet, to claim that his visits have already

produced concrete results would be premature. Foreign policy outcomes need a long period of gestation and it

would be naive to think that a single visit would alter another country’s policies. This is particularly true of

countries like Sri Lanka and Nepal who tend to hedge their bets when it comes to India versus China.

Nevertheless, the energy and drive on display has helped push the boundaries, enabling India to demonstrate

its determination to be the pre-eminent power in the region.

Coming to strategic aspects, one discerns a certain lack of coherence and consistency. This is specially true of

strategic relations with our two biggest neighbours, China and Pakistan. Vis-à-vis Pakistan, the inconsistencies

in our attitude have further compounded the dysfunctional nature of Pakistan’s approach to India. Nothing

that has been said or done during the past year has reduced tensions between the two countries. If anything,

the degree of suspicion has increased.

Dealing with Beijing:

The approach towards China has clearly needed to be more subtle and dexterous than has been the case. The

bonhomie on display during Chinese President Xi Jinping’s visit to India in September 2014 and Mr. Modi’s visit

to China in May 2015 was exceptional. Notwithstanding this, the hype and glamour have tended to obscure

the reality that little progress on most aspects of the relationship has taken place.

Modi’s recent visit did yield much in economic terms — agreements and business-related memoranda of

understanding worth at least $22 billion. He also unveiled a vision of unlimited opportunities for Chinese

business and investment in infrastructure and energy-related projects. The Joint Statement issued after the

visit is extremely positive on trade, development and investment issues, and also on taking the necessary

measures “to remove impediments to bilateral trade and investment and facilitate greater market access”.

However, dealing with China is like dealing with the unknown. Rather than protocol-driven statements, one

needs to look out for signals and nuances which are often better indicators of where the relationship is

headed. Hence, references in the Joint Statement issued after Mr. Modi’s discussions with Chinese leaders, to

the “historic imperative for India and China to enrich their bilateral relations” and that “India-China bilateral

relations are poised to play a defining role in the 21st Century in Asia and Globally”, count for little.

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Chinese have given no indication, whatsoever, that they would back India’s claim to a seat in the UNSC; no

assurance of helping India with nuclear Export Control Regimes, and in overcoming the remaining obstacles to

nuclear trade issues, and no signs of softening its stance on the vexed boundary question, merely committing

itself to maintaining peace and tranquillity in the border areas, pending a final resolution.

As a keen observer, PM would certainly have noted the absence of any reaction from the Chinese side during

the visit, to both the contents of the Joint Strategic Vision for the Asia-Pacific and the Indian Ocean Region

(unveiled by him and U.S. President Barack Obama during Mr. Obama’s visit to India in January 2015), and to

the deepening of India’s relations with Shinzo¯ Abe’s Japan. This is significant and disconcerting, compounded

further by the absence of any serious discussion on the situation prevailing in Pakistan and West Asia, and the

implications for the region of Mr. Xi’s signature initiative viz., the Maritime Silk Road. Apparently, the Chinese

believe that there is not much scope for a meeting of minds on crucial issues.

The Afghan vacuum

Meanwhile, China continues to engage in a series of moves that are highly detrimental to India’s interests.

With Pakistan as the fulcrum of China’s approach to South Asia, China is now seeking to exploit the vacuum in

Afghanistan, at a time when India’s leverage there has been greatly reduced following Afghanistan President

Ashraf Ghani taking charge. China has also very recently hosted “secret talks” between Afghan and Taliban

leaders in China, which were attended by both Chinese officials and representatives of Pakistan’s Inter-

Services Intelligence (ISI). China also continues to stall India’s moves in the United Nations to have Hizbul

Mujahideen chief and head of the ‘United Jihad Council’, Syed Salahuddin declared as a “global terrorist”.

The proposed China-Pakistan Economic Corridor linking Western China with the Gwadar Port in Pakistan

through Pakistan Occupied Kashmir (PoK), is an even more serious matter, directly impinging on India’s

sovereignty and security. Its implications are far graver than the border dispute between India and China.

Enhancing strategic thinking

All this means that the element of strategic distrust between the two countries appears to be increasing. This

will need to be tackled by Mr. Modi on a war footing over the next few years. Forging “strategic trust”does find

a mention in the Joint Statement, but it is evident that frequent exchanges at the leadership level, regular

visits at the level of heads of states/government, or enhanced military ties and joint military exercises and

counter terrorist training (all reflected in the Joint Statement) would be hardly enough. Closing the gap that

exists in the strategic thinking of the two sides will require a more sophisticated approach.

As Mr. Modi enters his second year in office, he needs to demonstrate that India can become a counterpoise

to an aggressive China. This would need going beyond economic matters or viewing economic

interdependence as a means to limit the ambit of China’s designs. His “Act East Policy” must involve managing

the “rise of China” which, with its aggressive designs and military capabilities, is a cause for deep concern to

countries in the region.

In Mr. Modi, India has a leader who is credited with skills to penetrate the opaque. He must use his manifest

skills in the coming years to create opportunities for a proper framework for a peaceful, political and strategic

relationship across the region without succumbing or overreacting to fears of where China is headed.

ref: The Hindu;

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BILATERAL TIES: Mamata to accompany PM during Bangladesh visit

The visit assumes significance as Ms. Banerjee had refused to accompany former PM Manmohan Singh during

his visit to Bangladesh in September 2011. Despite much persuasion from the Centre Ms. Banerjee had opted

out of visit at the eleventh hour expressing reservations over not being consulted over the proposed Teesta

water sharing treaty which she had described as against the interests of farmers of the State.

While the Chief Minister has already given her nod to the implementation of the Land Boundary Agreement

she has also softened her stand regarding the Teesta water sharing treaty.

ref: The Hindu;

India to set up IT listening posts in Bangladesh

The signing of an MoU for the setting up of Information Technology centres in Bangladesh is expected to be

announced during PM Modi’s visit to Bangladesh. Apart from imparting training to the Bangladesh police

forces in the use of modern technologies, the centres would operate as a hub for intelligence gathering and

detecting cyberbased offences, including terror activities and intrusions.

A recent example of the increased level of cooperation between the two countries in security affairs is

information exchange on the Bardhaman blast case being probed by NIA in India.

As part of the agreement, Indian agencies would assist their Bangladeshi counterparts in constructing buildings

from where the IT centres would function. They are also expected to provide the necessary equipment for the

centres.

ref: The Hindu;

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