Irrigation Potential Created and Utilised Under Minor Irrigation Scheme (Expenditure Incurred and Potential Created)

Period	Outlay/expenditure (Rs. in crore)	Potential created (million hectares)	Cumulative (million hectares)
Pre-Plan period	Not available	9.70	9.70
First Plan (1951-56)	376	2.50	12.20
Second Plan (1956-61)	380	2.13	14.33
Third Plan (1961-66)	576	2.24	16.57
Annual Plans (1966-69)	430	1.53	18.10
Fourth Plan (1969-74)	1,242	2.60	20.70
Fifth Plan (1974-78)	2,516	4.02	24.72
Annual Plans (1978-80)	2,079	1.89	26.61
Sixth Plan (1980-85)	7,369	1.09	27.70
Seventh Plan (1985-90)	11,107	2.22	29.92
Annual Plans (1990-92)	5,459	0.82	30.74
Eighth Plan (1992-97)	21,669	2.22	32.96
Ninth Plan (1997-2002)	42,968	4.10	37.06
Tenth Plan outlay (2002-2007)	71,213	6.50 (Target)*	43.56

SOCIO ECONOMIC DEVELOPMENTS PRACTICE QUESTIONS

1. Nano knowledge city has been established at which Indian city?

a. Ahmedabad

b. Tiruchi

c. Chandigarh

d. Lucknow

2. Which finance company will soon offer loans again gold ETF units?

a. Muthoot Finance

b. ICICI Loans

c. Bajaj Capital

d. Birla Global Finance  Limited

3. Infosys’ Executive Council will now have how many members?

a. 12

b.  13

c. 14

d. 15

4. Which company bought the .CO domain just before the completion of one year of its public

launch?

a. Yahoo

b. Hotmail

c. Google

d. Rediff

5. Who is the newly appointed CEO of Sun TV Network?

a. Rakesh Singh

b. K.Vijay Kumar

c. Dinesh Trivedi

d. Kishore Chandra Rao

6. Which of the following brands is NOT a part of Sony Corporation?

a. VIAO

b. Bravia

c. Xbox

d. Play stations

7. Which of the brands follow a ‘fast fashion’ trend?

a. Lee

b. Adidas

c. Levis

d. Zara

8. June 2011 infl ation closed at what rate?

a. 8.44%

b. 9.44%

c. 10.44%

d. 11.44%

9. French tyre maker Michilen is going to start its Indian operations from which city?

a. New Delhi

b. Chennai

c. Mumbai

d. Kolkatta

10. Which country is set to roll out its first phase of National internet for home users in August with a speed of 8MB?

a. Iraq

b. Iran

c. Afganistan

d. Saudi Arabia

11. According to March 2010 estimation, how much land is under  organic certifi cation?

a. 4.4 million hectares

b. 4.6 million hectares

c. 6.4 million hectares

d. 6.6 million hectares

12. Where has Posco planned its latest project costing more than `50,000 Crores in India?

a. Rajasthan

b. West Bengal

c. Orissa

d. Gujarat

13. Who is the newly appointed CEO of Fortis Healthcare?

a. Bhavdeep Singh

b. Aditya Vij

c. Suneeta Reddy

d. Shivinder Singh

14. Which Indian city is hosting the 3 day International Leather Fair from 28th July 2011?

a. New Delhi

b. Chennai

c. Mumbai

d. Kolkata

15. Which of these brands DO NOT belong to Hindustan Uni Lever?

a. Bru

b. Taj Mahal

c. Ashirwad

d. Annapurna

16. Who is the new RBI Deputy Governor?

a. Shyamala Gopinath

b. Y. Vnugopal Reddy

c. Harun Rashid Khan

d. D. Subbarao

17. What is the public offer made by Zyanga Inc.?

a. $2 billion

b. $1 billion

c. $1.5 billion

d. $3 billion

18. Which website is used most popularly in Brazil?

a. Facebook

b. LinkedIn

c. Orkut

d. MySpace

19. Keki Mistry is CEO of which bank?

a. HDFC

b. ICICI

c. Standard Chartered

d. Deutsche Bank

20. Which Indian City will be home for Nano Science and Technology?

a. Hyderabad

b. Bangalore

c. Ahmedabad

d. Bhubaneshwar

21. Which Indian state suffers most from lack of opportunity of Jobs?

a. Uttarakhand

b. Goa

c. Jammu and Kashmir

d. Chattisgarh

22. To which country does the new Director General of Food and Agriculture Organization (FAO)

belong?

a. India

b. United States of America

c. Brazil

d. China

23. Which Indian city will host the 11th conference of the Parties to the United Nations Convention on Biological Diversity in October 2012?

a. New Delhi

b. Chennai

c. Bangalore

d. Hyderabad

24. How many FDI proposals did Indian Govt approve in June 2011?

a. 16

b. 17

c. 18

d. 19

25. ‘Beta’ range of pens belong to which brand?

a. Parker

b. Emonte

c. Luxor

d. Pilot

26. Brands like Parachute, Saffola, Sweekar, Medikar, Top Ramen etc., are owned by which Indian

giant?

a. HUL

b. P&G

c. Marico Industries

d. Nestle

27. what is India’s position among  the top 20 Foreign Direct Investment (FDI) recipients, according

to World investment report released by UNCTAD?

a. 12th

b. 14th

c. 16th

d. 18^th

28. General Motors launched the diesel version of which car?

a. Chevrolet Beat

b. Chevrolet Optra

c. Chevrolet Cruze

d. Spark

29. Which Public sector bank selected Metlife as its partner in the life insurance segment?

a. Syndicate Bank

b. Corporation Bank

c. United Bank of India

d. Punjab National Bank

30. Which telecom announced its decision to merge its divisions providing GSM and CDMA?

a. Tata

b. Bharti Airtel

c. Aircel

d. Vodafone

31. Maharashtra Electrosmelt is merging which PSU?

a. IOC

b. SAIL

c. BHEL

d. HPCL

32. What does ‘M’ in IMFA stand for?

a. Metal

b. Mineral

c. Micro

d. Money

33. Usha  Ananathsubramanian is the Executive Director of which Pubic sector bank?

a. Gramin Bank

b. Punjab National Bank

c. United Bank of India

d. Central Bank of India

34. Who amongst the following is the recipient of best CFO in public sector?

a. R.K. Aggarwal

b. P.K.Bajpai

c. A.K.Singhal

d. D.K. Sarraf

35. Which of the following Indian states will host the limestone mining operations of Lafarge India?

a. West Bengal

b. Chattisgarh

c. Meghalaya

d. Maharashtra

36. How many Indian companies featured in the list of 500 companies released by Fortune magazine in July 2011?

a. 6

b. 7

c. 8

d. 9

37. P.K. Bajpai is the Director of which Navratna company?

a. BHEL

b. SAIL

c. IOC

d. HAL

38. According to the report compiled by Swiss Re named World Insurance in 2010, India stands

at what position as an insurance market in the world?

a. 8th

b. 10th

c. 11th

d. 13^th

39. What does ‘F’ in IRFC stand for?

a. Force

b. Finance

c. Facilitating

d. None of the above

40. Jeevan Arogya, is a health insurance plan of which Indian insurance company?

a. LIC

b. HDFC

c. SBI Life insurance

d. IDBI Fortis life insurance

41. Who is India’s largest Liquefi ed natural gas (LNG) exporter?

a. GAIL

b. PFC

c. RasGas

d. Petronet

 

ANSWERS:

 

1. C. Chandigarh

2. A. Muthoot Finance

3. B. 13

4. C. Google

5. B. K. Vijay Kumar

6. C. Xbox

7. D. Zara

8. B. 9.44%

9. B.  Chennai

10. B. Iran

11. A. 4.4 million hectares

12. C. Orissa

13. B. Aditya Vij

14. A. New Delhi

15. C. Ashirwad

16. C. Harun Rashid Khan

17. B. $1 billion

18. C. Orkut

19. A. HDFC

20. B. Bangalore

21. C. Jammu & Kashmir

22. C. Brazil

23. D. Hyderabad

24. A. 16

25. A. Parker

26. C. Marico Industries

27. B. 14th

28. A. Chevrolet Beat

29. D. Punjab National Bank

30. A. Tata

31. C. BHEL

32. A. Metal

33. B. Punjab National Bank

34. D. D.K. Sarraf

35. C. Meghalaya

36. C.– 8

37. A. BHEL

38. C. 11th

39. C. Facilitating

40. A. LIC

41. D. Petronet

SOCIO ECONOMIC DEVELOPMENTS MCQs

1.     According to the Economic survey 2010-11 what percentage growth was recorded by the manufacturing sector in 2010?
a.    9.1%
b.    8.6%
c.    7.3%
d.    8%
Answer: a
2.     As per the economic Survey of India 2010-11, the production of food grains is estimated at over 232 million tonnes with record production of which food crop?
a.    Rice
b.    Wheat
c.    Bajra
d.    Maize
Answer: b
3.    What is the percentage growth of GDP predicted by The Economic Survey for the financial year 2010-11?
a.    8.6%
b.    8.3%
c.    8.0%
d.    9.1%
Answer: a
4.      The Economic Survey estimated the Forex reserves of India at over 297 billion US dollars. The surge in Forex is attributed to growth in which of the following sector?
a.    Export sector
b.    Foreign Direct Investments
c.    Agricultural output
d.    Industrial output
Answer: a
5.        Gross Fiscal Deficit stands at 4.8% of GDP. What was the percentage of Gross Fiscal Deficit in 2010?
a.    6.3%
b.    5.8%
c.    5.0%
d.    7.1%
Answer: a
6.   Agriculture is expected to grow by what percentage in 2010-11 as per the Economic Survey?
a.    5.0%
b.    5.1%
c.    5.4%
d.    5.5%
Answer: c
7.      What percentage of GDP growth at market prices was estimated by the Economic Survey 2010-11?    a.    9.0%
b.    9.5%
c.    9.7%
d.    10.0%
Answer: c
8.        Exports surged by what percentage in the period between April to December 2010?
a.    25.0%
b.    29.5%
c.    18.1%
d.    33.0%
Answer: b
9.     Finance Minister Pranab Mukherjee proposed to increase the Income Tax Exemption Limit for individual tax payers from 1 lakh 60 to _?
a.    1 lakh 80 thousand
b.    1 lakh 90 thousand
c.    2 lakh
d.    2 lakh 20 thousand
Answer: a
10. Which of the following was not proposed in the Union Budget 2011-12 presented by pranab Mukherjee?
1.    Special vehicles were proposed to be created in the form of Infrastructure Debt Funds to attract foreign funds.
2.    Rs. 300 crore expenditure was proposed to promote horticulture centres in rain fed areas for increasing crop productivity.
3.    For the manufacturing sector, the budget proposed reduction of basic customs duty on raw silk from 30 to 5 per cent.
4.    Concessional 10 per cent Excise Duty was also proposed for fuel cell or Hydrogen cell-technology-based vehicles.
a.    1 & 3
b.    Only 2
c.    Only 4
d.    3 & 4
Answer: b
11.     In the Budget it was proposed to provide sum of money for implementation of vegetable initiative to set in motion a virtuous cycle of higher production and incomes for the farmers. What was the proposed amount?
a.    Rs 500 crore
b.    Rs 300 crore
c.    Rs 10000 crore
d.    Rs 650 crore
Answer: b
12. Rashtriya Swasthya Bima Yojana was proposed to be being extended to the beneficiaries of which of the following Union Government schemes?
a.  Mahatma Gandhi NREGA beneficiaries
b. Beneficiaries of Swavlamban pension scheme
c. Indira Gandhi National old Age Pension scheme beneficiaries
d.Beneficiaries of Rajiv Gandhi Grameen Vidyutikaran Yojana
Answer: a
13. Acknowledging the need for development of J&K and North-east, Mamata Banerjee introduced in the Railway Budget 2011 a number measures for these two regions. In which of the following North-eastern cities did the budget propose to set up a diesel locomotive centre?
a.    Imphal
b.    Manipur
c.    Guwahati
d.    Tripura
Answer: b
14.    Read the two statements with regard to the passenger benefit plans proposed in the Railway Budget 2011.
1.The budget proposed extension of Train Management System to New Delhi, Bangalore, Secunderabad, Ahmedabad and Lucknow stations to provide information on running of trains.
2.Mamta Banerjee introduced a new concept of Smart Card – Go India for long distance travel by Indian railways.
Which of the two statements are true?
a.    Only 1
b.    Only 2
c.    Both 1 & 2
d.    None of the above
Answer: c
15. According to Railway Budget 2011, railway card passes would be extended to the parents of the unmarried posthumous winners of which of the following Awards?
1.    Param Vir Chakra
2.    Bharat Ratna
3.    Ashok Chakra gallantry award
4.    Padma Shri
a.    1 & 2
b.    2 & 3
c.    1, 2 & 3
d.    1 & 3
Answer: d
16. Which of the following schemes proposed in the Railway Budget 2011 is/are not meant for Railway Employees?
1.    Expansion of Liberalized Active Retirement Scheme for Guaranteed Employment
2.    Railway Vidyalaya Prabandhan Board
3.    Sukhi Griha Scheme
4.    Pradhan Mantri Rail Vikas Yojana
a.    1 & 3
b.    3 & 4
c.    2 & 4
d.    1 & 4
Answer: b
17. The electrical energy requirement of railways is growing rapidly with the expansion of the rail infrastructure and traffic. Considering the rising demand the Ministry of Railways proposed to set up 700 MW power plant at Thakurli in Maharashtra. The power plant is proposed to be based on what form of energy?
a.    gas-based
b.    coal-based
c.    solar power
d.    nuclear energy based
Answer: a
18.     Ministry of Railways proposed to extend Anti Collision Device (ACD) to which of the following Railway zones in India?
1.    Eastern zone
2.    East Central
3.    North Eastern
4.    South Central
a.    1 & 4
b.    2 & 4
c.    1 & 2
d.    1 & 3
Answer: c
19.     With regard to the infrastructure development of Railways as proposed in Railway Budget 2011 which statement/statements is/are false?
1.    The budget proposed to lay 40 new lines, covering 1075 km.
2.    The Ministry has allocated Rs 5406 crore for doubling of 867 km of lines
3.    A greater thrust was given to the expansion of the rail network with a larger allocation of Rs 9583 cr for new lines.
4.    for gauge conversion over 1017 km. Rs 13820 crore was proposed
a.    Only 1
b.    1 & 2
c.    Only 4
d.    2 & 4
Answer: c
20.     Read the two statements mentioned with regard to the budgetary allocations for addressing environmental concerns.
1.    The budget proposed that the solar lantern used in far-flung villages will attract no duty from 10 per cent charged earlier.
2.    To provide green and clean transportation for the masses, National Mission for Hybrid and Electric Vehicles will be launched in the year 2011 in collaboration with all stakeholders.
Which of them is true?
a.    Only 1
b.    Only 2
c.    Both 1 & 2
d.    None of the above
Answer: b
21.     To enhance credit worthiness of economically weaker sections and LIG households, a Mortgage Risk Guarantee Fund was announced to be created under which of the following scheme or Yojana?
a. Rajiv Awas Yojana
b. Rajiv Gandhi Grameen Vidyutikaran Yojana
c. Indira Awas Yojana
d. Mahatama Gandhi NREGA
Answer: a
22.    Read the following statements with regard to the allocation in the Educational sector as proposed by Union Budget 2011-12.
1. For Sarva Siksha Abhiyan the allocation was increased by 40 percent to 21000 crore rupees.
2. All institutions of higher learning will be connected through optical fibers by March 2012.
3. 500 crore rupees was proposed to be provided for national skill development fund.
4. For the needy scheduled castes ad scheduled tribe candidates studying in class-IX and Xth pre-matric scholarship scheme was proposed to be introduced.
Which of the above mentioned statements is not true?
a.    1
b.    2
c.    3 & 4
d.    4
Answer: b
23. The Basic Customs Duty exemption was proposed to be extended to which of the following sectors?
a. art and antiquities for exhibition or display in private art galleries
b. Cinematographic film, factory-built ambulances
c. syringes and needles
d. agricultural machinery
Answer: a
24.    What amount of money was allocated for Bharat Nirman?
a. 1000 crore
b.  58000 crore
c. 55438 crore
d.  14362 crore
Answer: b
25. Which of the following statement/statements is/are true with reference to the Railway Budget 2011?
1.    Railway Minister Mamata Banerjee proposed Annual Plan for the year 2011-12 at Rs 57630 cr which is the highest ever plan investment by the railways in a single year.
2.    Under the proposed Pradhan Mantri Rail Vikas Yojana the pending socially desirable lines would be completed and other similar new line projects would also be taken up.
3.    Mamata Banerjee declared 2010-11 as the Year of Green Energy.
4.    2 AC Double Decker Trains in the Jaipur-Delhi and Delhi-Ahmedabad routes were proposed.
Choose Answers:
a. 1,2 & 3
b. 1 & 4
c.  2 & 3
d. 1 & 2
Answer: d

Black money campaign and the Indian response

The fiscal year 2011-12 will go down in India's financial history as a year in which black money stashed in Swiss banks became a big enough issue to rouse the public conscience for demanding swift and stern action for retrieving the money lost in tax havens. Baba Ram Dev and Anna Hazare kindled the fire and the Supreme Court further stoked the fire by calling it “Plunder of the Nation”.

The Government was forced to come up with a response detailing the measures taken to fight the menace. It explained that India has joined the global crusade against black money and will create a legislative frame work for this purpose. Institutions have been set up to deal with illicit funds. A new manpower policy is being brought out. There will hereafter be constant training for skill development.

India has joined the Task Force on Financial Integrity and Economic Development in the hope that it will help India build the capacity to trace terror funds and to successfully investigate and prosecute money-laundering and terrorist-financing offences.

India insisted at the G-20 summit that countries should enter into Tax Information Exchange Agreements wherever required. Accordingly, India has so far completed negotiations of 22 new Tax Information Exchange Agreements with various tax havens. New Double Taxation Avoidance Agreements have been finalised for incorporation of Tax Exchange Information provisions. The revised agreement with Switzerland will allow India to obtain banking information from Switzerland in specific cases from April 1, 2011.

General Anti-Avoidance Rule has been incorporated in the Direct Taxes Code to deal with aggressive tax-planning devices meant to circumvent tax laws. Existing transfer pricing provisions have been remodelled on the basis of the law prevailing in developed countries and these changes will meet the challenges of a growing intangible economy and complex cost-sharing arrangements. The Prevention of Money Laundering Act was amended to expand the predicate offences substantially. This amendment will widen the scope of money-laundering investigations.

Will these agreements help?

Critics are not wanting in pointing out that too much reliance on Exchange Information Agreements will not be of much help. A former Joint Secretary to the Central Board of Direct Taxes points out inherent limitations of the system in place.

The Information Exchange Agreements do not provide for automatic or spontaneous exchange . None of our tax agreements will permit “fishing expedition”.

But then, as a first step, the Government is right in highlighting that the Income-Tax Department has collected 7,704 discrete items of information from treaty countries containing details of payments received by Indians in various countries, besides information on accounts in Liechtenstein's LGT Bank.

More than 175 requests have been made to our treaty partners in case of specific tax payers in the last financial year. Efforts to prevent new ways of transferring illicit funds outside the country through mis-invoicing resulted in detection of mis-pricing of Rs 33,784 crore in the last two years. It has been repeatedly pointed out that illicit funds are ploughed back into the Indian financial system as ‘hot-money' flows through available channels like participatory notes, which currently account for 16 per cent of the assets under the custody of the FIIs in India.

Such channels are said to be used to raise funds from our capital markets to finance terrorism and other criminal activities. A word from the Finance Minister that participatory notes will be banned will significantly arrest the flow of such illicit funds into our stock markets.

An Indian Amnesty?

Ever since the US and the UK announced their amnesty schemes, pressure has been mounting on India to come up with an amnesty scheme to bring back secret moneys in foreign accounts.

Industry captains like Mr Ratan Tata, Mr Y.C. Deveshwar and Mr N.R. Narayana Murthy have been urging the Government to devise an amnesty scheme mainly for funding investments into the infrastructure sector, which requires over $1 trillion over the next Plan period.

Malegam re-appointed on RBI board

The Government has appointed two more members — Mr Y.H. Malegam and Prof. M.V. Rajeev Gowda — on the Central Board of Directors of the Reserve Bank of India. While Mr Malegam, who is also the Chairman of the National Advisory Committee on Accounting Standards, has been re-appointed from October 7, Prof. Gowda, who is Professor of Economics and Social Sciences, IIM-Bangalore, has been appointed from October 17.

11th Plan infra investment target may fall short by 5%

The global downturn could lead to a shortfall of 5 per cent in investment targets for the infrastructure sector during the 11th Five-Year Plan, according to the Government. The Plan terminates on March 31, 2012.

The Government had initially targeted investments worth 9 per cent of gross domestic product (GDP) in infrastructure during the 11Plan. In absolute terms, this translates into Rs 20,54,205 crore (at constant price of 2006-07).

According to the Planning Commission, storage, ports and Railways have done very badly in terms of meeting targets, while telecommunication, airports and gas pipeline managed to attract more than the target. A senior official said, “If you take out the gas pipeline from the 10 infrastructure areas then the actual picture will be very bad.” 

Storage was the worst performer in not achieving targets. One reason was the lack of clear policy for public private partnership (PPP) in this area, the official said. This, he said, had kept the private sector away from participating in capacity creation. Now, a policy is before the Empowered Group of Ministers, he added.

On the ports front, an assessment by the Planning Commission shows that very few PPP projects had been awarded by various Port Trusts in the first two years of the 11th Plan. The Ministry of Shipping has already revised the original target of capacity addition from 545 million tonnes to 393.27 million tonnes.

The challenge for the Railways was different, according to government sources. It didn't have adequate resources of its own to invest, nor was the private sector encouraged to invest. The private sector also faced problems related to land acquisition and rehabilitation.

Similarly, the road sector performance was also disappointing. The Planning Commission said the Centre's investment in the sector is expected to dip as fewer projects were awarded by the National Highway Authority of India during the first three years of the Plan than projected.

However, the lower-than-expected performance has not deterred the Planning Commission from proposing an ambitious investment target of $1,025 billion for infrastructure in the 12th Five-Year Plan. This again translates into 9 per cent of the GDP. The Commission has remarked that investment in infrastructure would have to be a key priority area in the 12th Plan in order to sustain and support the targeted growth in manufacturing, agriculture and services.

Power crisis may derail factory output further

The high-profile Ramakrishna Puram area of South Delhi that houses the office of the Central Electricity Authority (CEA), the apex planning body for the country's power sector, has been seeing an average of 3-4 hours of load shedding on a daily basis over the past few days.

“We too have not been spared. With the economy clocking at 8 per cent growth and coal production growing just 2 per cent annually, this was bound to happen sooner or later,” was the refrain from a senior official at CEA on the debilitating power crunch. While planning, he admitted, was partly at fault the real problem was in the implementation of the coal production strategy. Just a handful of unforeseen events — the Telangana stir that affect output from Singareni Collieries, flooding in eastern region coal fields and freak accidents at NTPC stations — managed to trigger a nationwide coal shortage that walloped consumers across the whole country in a jiffy.

Critical stocks

From the beginning of October, the number of key thermal power stations in the country facing dwindling coal stocks had been rising till about the middle of the month. Generally thermal stations are normally expected to hold coal stocks of between 15 and 30 days, depending on the location of the project.

The result was an alarming rise in power disruptions across the country, with key thermal stations left high and dry without adequate fuel to continue normal operations. While the Singareni strike has directly impacted southern States, there is no doubt that they have coped better in terms of maintaining grid discipline. Northern States, especially Uttar Pradesh and Haryana, have on the other hand resorted to massive overdrawing from the integrated NEW (north-east-west) grid, resulting in frequency plummeting way below the permissible lower limit of 49.5 hertz during most days in the end of September and early October.

In all, nearly 8,000 MW of thermal capacity is estimated to have been out due to the coal strike and the shortages at NTPC stations, while there has been a drop of another 100 million units in hydro generation due to the receding monsoon which aggravated the problems further .

Supplies

Under fire for faltering on supplies, coal companies have now been asked by the Coal Ministry to work overtime to ensure movement of fuel to key power stations. The Ministry has claimed that NTPC Ltd's key power stations — 705 MW Badarpur plant, 2,000 MW Rihand, 1,820 MW Dadri, 2,000 MW Singrauli and 1,050 MW Unchahaar stations — have been despatched more rakes of coal than they require for daily operations over the last three days, which could go into replenishing the critically low stocks at the stations.

Coal companies are managing to augment supplies mainly through the liquidation of stocks lying at pitheads at some of the eastern region coal fields. Generation at NTPC's 2,600 MW Ramagundam station, which has been a major casualty on account of the strike, has been rapidly improving now. NTPC is juggling around fuel from various sources to restore full-scale operations.

With Coal India Ltd planning to divert 4 million tonnes of coal from its e-auction quota to power utilities as a stop-gap measure to plug the shortfall, the situation could improve further in the coming days. The concerted efforts being made to bolster coal supplies to key thermal stations has already started showing results, with the latest CEA data for October 16 showing a reversal of the trend so far and a decline in the number of stations facing critical coal stocks. Shortages, though, are bound to stay as coal production has simply not been able to keep up with the demand from consumers.

Industry takes the hit

While consumers across the board were affected due to the crisis, the biggest hit has been on industrial consumers. Most States resorted to load-shedding of 8-14 hours for industrial consumers to tide over the supply shortages. Punjab asked the foundries to down shutters for at least three days a week while units from the sports goods hub of Jallandhar and cycle parts cluster of Ludhiana are facing increasing hours of outages. In Maharashtra, load-shedding was reported in the industrial belt of Thane and Nashik, while both in Uttar Pradesh and West Bengal the industry faced an increase in outages as the utilities ran out of funds to buy power in the spot market. The industrial units is southern states were also hit in a big way.

Coming against the backdrop of slowing growth, the power crisis is very bad news and could derail factory output further. Analysts predict that the data for October could take a hit on account of the loss of production of units across the country. The April-August index of industrial production (IIP) data had come in at 5.6 per cent against 8.7 per cent a year ago.

Rwanda invites Indian investment in energy, infrastructure sectors

Rwanda has invited India to participate in the economic development of the East African nation through investment in the infrastructure, agriculture, energy, mining, IT and tourism sectors, among others.

“Rwanda invites India to participate in its economic development and to tap the huge potential available in energy, infrastructure, agriculture, tourism, etc,” the Rwanda Agriculture and Animal Resources Minister, Ms Agnes Kalibata, said at the 2nd Rwanda Investment Roadshow in India here today.

Ms Kalibata invited Indian investors to explore the opportunities in her country, which has a population of 10 million and boasts an increasing middle class.

“Rwanda, located at the crossroads of the commercial heartland of East and Central Africa, can provide India huge opportunities to invest in a market of nearly 200 million people (in East and Central Africa) and a combined GDP of over $100 billion,” she added.

The Rwanda Development Board Chief Operating Officer, Ms Claire Akamanzi, said the country is trying to attract foreign investment in infrastructure, especially roads, airports and real estate.

Rwanda’s farm sector, which accounts for 34 per cent of the country’s GDP and sustains 78 per cent of its population, is open to foreign participation in development of the tea, coffee, horticulture and irrigation sectors, Ms Akamanzi added.

Stressing on the largely untapped natural resources of the country, she said Rwanda plans to use them to extend power grid coverage to 67 per cent of the population by 2012 through a $311-million capital expenditure programme.

“We have around 50-55 billion cubic meters of methane gas deposits in the lake Kiev area, which can be harnessed to produce electricity and also have identified 333 potential sites for micro-hydro power projects,” Ms Akmanzi noted.

The tourism sector in Rwanda is booming, but still has significant opportunities for growth, she said, adding that there are also major investment opportunities available in the mining, information and communication and financial services space.

The Rwandan Agriculture Minister said Africa will experience rapid growth in the next two decades and it will be an honour to have India as a part of that experience.

Indian companies like mobile services major Airtel, tea producers Jayshree and Mcleod Russel have already invested in Rwanda.

Rwanda, also termed as the land of a thousand hills, has registered a GDP growth rate of 7.1 per cent since 2004 and has been dubbed the fastest reformer of business regulations globally by the World Bank.

P-E investments in clean tech projects on the rise

With Government policies and incentives in place for renewable energy, the number of private equity investments in the clean technologies sector is increasing.

According to data from Venture Intelligence, a research service focused on private equity and merger and acquisitions , there were five deals in the clean technologies space in January-March 2011quarter; ten in the April-June 2011 quarter and 14 deals in the July-September 2011 quarter.

The amount invested in the July-September quarter was $359 million compared with $176 million in the immediate previous quarter.

Recently, Suryachakra Power Corporation entered into a joint venture with American Bio Sources Inc (ABS) and Environmental Energy Finance Corporation Inc. USA (EEFC). The investment will go into developing renewable energy power projects of 500 MW in India. Suryachakra Power Corporation entered the wind energy sector earlier this year.

The above investment deal follows a series of investments into the clean technologies space. Goldman Sachs invested $204 million in start-up renewable energy firm, ReNew Wind Power in September, according to Venture Intelligence. This was one of the biggest private equity deals in the clean technologies space in India. Prior to this, FE Clean Energy invested $40 million in NSL Renewable Power in July. IDFC Project Equity invested $112 million in Caparo Energy India in June. Baring India invested $90 million in Cethar Vessels in December 2010.

“Investing in the clean technologies space requires a great degree of specialisation. These investments have a long gestation period and a different returns profile,” said Mr Rahul Khanna, Managing Director, Canaan India. The firm has not invested in this space so far.

Investment Trends

Although the clean technologies space is still nascent, investors say that the sector looks attractive and could see a lot of growth.

“A lot of firms are investing in wind energy projects. It is difficult to get investment for solar projects as subsidies are uncertain,” said Mr Avinash Gupta, Leader, Financial Advisory, Deloitte in India.

There are a lot of things that investors must keep in mind while investing in a renewable energy project. “To ensure that the investment is not very risky there are a couple of things that investors should keep in mind. They should invest in a company which is backed with the right business model and investments should be with the right entrepreneurs. Another important aspect is that a portfolio approach or diversified investment approach should be adopted,” said Mr Raja Parthasarathy, Partner, IDFC Private Equity.

Exits in the clean technology sector are difficult; investors usually exit after 4–6 years, say private equity investors.

Platform Investment Stories

There has been a trend towards investing in a ‘platform manner' in this sector. Called ‘platform stories' in investor jargon, these are private equity investments in a staggered manner.

In the platform model, private equity investors commit large capital to a company to set up a particular project. Money is released by the investor to the company on achievement of pre-decided milestones. A particular amount is given to the company when it sets up its first 90 Watt project

“We have noticed an increasing number of private equity players commit large capital to a company engaged in renewable energy business. It is a time bound activity where parts of the money are provided by the investor as and when the first part of the goal is accomplished,” said Mr Gupta of Deloitte.

IDFC Private Equity has invested nearly Rs 440 crore in Green Infra Ltd, a renewable energy company using platform investment. “The advantage of investing using this model is that investment is at par (if it is a blank sheet company, that is, if it has no track record) and the returns are high,” said Mr Parthasarathy.

Private sector falters on coal block development

While state-owned Coal India Ltd has fallen back on its production targets, the private sector too has not made much headway in the coal mining sector.

According to Power Ministry estimates, of the 98 blocks that had been handed over to private sector players, production has commenced only in 13 blocks. As a result, the expected production by March-end 2012 is likely to be just around 20 million tonnes against the projected 100 million tonnes.

One of the main reasons for the dismal trend is that non-serious players have cornered a majority of the captive blocks on offer and have no plans to adhere to the project development milestones.

To send a warning signal, the Coal Ministry had, in May and June this year, announced the de-allocation of around 16 blocks handed over to private sector players and state-owned firms such as NTPC Ltd. Late last year too, the Ministry had issued notices to firms owning 84 coal and four lignite blocks for not having developed the projects within stipulated the time.

The delay in development of domestic resources has left the country with no option but to import to tide over the supply shortages. In five years, it is estimated that India could be forced to import almost 30 per cent of the coal required to meet its electricity needs.

This would mean that consumers across the country could find electricity prices shooting up.

Or else, distribution utilities would be pushed closer to bankruptcy on account of the increased strain on their finances from costly coal imports.

Back of the envelope calculations show that against a projected requirement of 742 million tonnes of thermal coal for fuelling coal-fired stations by the end of the Twelfth Plan (2012-17), only 527 million tonnes of domestic coal is likely to be available even in the best case scenario. This translates into a shortfall of 215 million tonnes or 29 per cent of the country's total requirement projected by 2017.

G-20 leaders must address global economic crisis

The upcoming G-20 summit should find solutions to the “frustrations” of the people hit by the global economic crisis and not just focus on domestic financial concerns, the UN chief, Mr Ban Ki-moon, has said.

“That is what you are seeing all around the world, starting from Wall Street. People are showing their frustrations by trying to send a very clear and unambiguous message to the world,” he said.

He asked world leaders to use the upcoming G-20 summit in Cannes to find solutions for the entire global economy and not focus merely on domestic financial concerns.

In a message to the G-20 leaders, the UN chief said: “business-as-usual or just looking at their own domestic economic issues will not give any answers to the current very serious international economic crisis.”

The G-20 leaders have a very “broad and important, crucial, responsibility to perform...towards the global economy,” Mr Ban, currently on a visit to Switzerland, told reporters there yesterday.

He said leaders of the developed and emerging economies should restore confidence and trust of the people and come out with a broader perspective to tackle the economic crisis.

He said the G-20 nations constitute 80 per cent of the world’s GDP and 85 per cent of the world’s population.

“We have to really address this issue with a sense of flexibility and compromise, and come out with actionable plans,” he said.

Protesters inspired by the “Occupy Wall Street” movement camped out in many European cities to protests against corporate greed and state cutbacks.

From London and Frankfurt to Madrid and Amsterdam, hundreds of demonstrators pitched tents following a global day of action on Saturday and vowed to maintain their campaign.

The G-20 summit will be held on November 3-4 in Cannes, France.

India to host World Steel Conference next year

In an indication of India's emerging importance on the world steel map and massive growth it is poised for in this sector, India has been awarded the right to hold the World Steel Conference in October next year.

The governing body of the World Steel Association, representing 170 producers and accounting for 85 per cent of world steel production, has decided to give the rights to hold the World Steel Conference in India from October 8 to 12 next year, according to an official announcement made  on October 14.

State-run Steel Authority of India Ltd. (SAIL) Chairman C. S. Verma made this offer in Paris on October 14 on behalf of India's committee consisting of six leading steel producers of India. He extended a warm invitation to all CEOs of leading steel producing countries and companies to attend the conference to be held in New Delhi.

Mr. Verma said the views expressed by the global steel barons would go a long way in making the steel industry more sustainable, in the backdrop of the global economic uncertainties and volatilities in the recent past. “The conference in New Delhi will give a glimpse of the rich heritage and culture of India,'' he added.

He informed that the Indian steel industry had grown multi-fold from a production of about two million tonnes of crude steel in 1950-51 to nearly 70 million tonnes in 2010-11. Indian economy has recorded an impressive GDP growth in the last few years.

A report released by the World Steel Association, based on the just concluded conference, has forecast that apparent steel use will increase by 6.5 per cent to 1,398 mt in 2011, following growth of 15.1 per cent in 2010. In 2012, it is forecast that world steel demand will grow further by 5.4 pr cent. The WSA also projected that India's steel consumption is likely to grow by 4.3 per cent to reach 67.7 million tonnes due to economic growth. In 2012, the growth rate is forecast to accelerate to 7.9 per cent.

The member steel companies representing host country committee from India include JSW Steel, SAIL, Rashtriya Ispat Nigam, Tata Steel, Essar Steel and JSW Ispat Steel.

Nobel Prize Winners in Economics

 

 

Introduced in 1967 but first prize was given in 1969. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded 43 times to 69 Laureates between 1969 and 2011.

Why are the individuals awarded a Prize in Economic Sciences called Laureates?
The word "Laureate" refers to being signified by the laurel wreath.

In Greek mythology, the god Apollo is represented wearing a laurel wreath on his head. A laurel wreath is a circular crown made of branches and leaves of the bay laurel (In latin: Laurus nobilis). In ancient Greek laurel wreaths were awarded to victors as a sign of honour - both in athletic competitions and in poetic meets.

Year	Winner	Field
1969	Ragnar Frish Joan Tinbergen	Dynamic Econometric Model of Growth
1970	Paul Samuelson	Contribution in Economic Analysis
1971	Simon Kuznets	Modern Economic Growth Analysis
1972	Kenneth Arrow John Hicko	General Equilibrium and Welfare Economics
1973	W.W. Leontief	Input-Outpur Model
1974	Gunnar Myrdal F. Von Hayek	Contribution in Growth Economics
1975	Tjalling Koopmans Leonid Kontarovich	Optimum Resource Allocation
1976	Milton Friedman	Monetary History and Consumption Analysis
1977	James Meade Bertel Ohlin	Internation Trade and Capital Flow
1978	Herbert Simon	Decision Process in Organisations
1979	T. Shultz Arthur Lewis	Economic Growth in Backward Nations
1980	Corienz Klein	Model Related to Eonomic Fluctuation
1981	James Tobin	Analysis of World Financial Market
1982	George Stigler	Public Regulation
1983	Gerald Debrew	Modification in General Equilibrium Analysis
1984	Richard Stone	National Income Accounting System
1985	Franco Modigliani	Financial Market and Saving Analysis
1986	James Boochanan	Economic and Political Decision Making
1987	Robert T. Solow	Economic Growth Model
1988	Moris Allies	Optimum Utilisation of Resources
1989	H. Trigway	Use of Probability Theory in Economics
1990	Harry Marco Vitz William Sharp M. Miller	Portfolio Choice Principle, Capital Asset Pricing Model and Principle of Corporate Finance
1991	Ronald Coase	Transaction Costs and Property Rights
1992	Gerry Backer	Micro Economic Analysis of Human Behaviour
1993	Robert Fogal Douglas North	Quantitative Methods in Economic History
1994	Joah Harsanyee John Nash, R. Selton	Theory of non-operative games
1995	Robert Lucas	Development of Rational Expectations Theory
1996	James Mirillis William Vickrey	Incentive Structures Analysis
1997	Robert C. Merton M. S. Scollas	Derivative and Stock Operations
1998	Amartya Sen	Welfare Economics
1999	Robert Mundell	Analysis of Monetary and Financial Policy in Exchange Rate System
2000	James Heckman Daniel Macfaddan	For developing solution to solve decision making problem
2001	George A. Akerlof A. Michael Spence Joseph E. Stiglitz	Developing theories about financial markets that can be applied to both developing and advanced countries
2002	Daniel Kahnemann Vernon L. Smith	Human Judgment and Decision Making under Uncertainity
2003	Robert Engle Clive Granger	Methods analysing economic time series with time-varying volatility and common trend
2004	Finn Kydland Edward Prescott	Banks and explaining business cycles
2005	Thomas C. Schelling Robert J. Aumann	Game Theory Analysis
2006	Admund Phelps	International Trade-off between inflation and unemployment
2007	Leonid,Hurwicz, Eric Maskin, Roger Myerson	Mechanism Design Theory
2008	Paul Krugman	New Trade Analysis Theory
2009	Elinor Ostrom Oliver E. Williamson	Analysis of economic governance, especially the boundaries of the firm
2010	Peter A. Diamond Dale T. Mortensen Christopher A. Pissarides	Analysis of markets with search frictions
2011	Thomas J. Sargent Christopher A. Sims	Empirical research on cause and effect in the macroeconomy

Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2011 Approved

The Union Cabinet of India on 13 October 2011 approved the introduction of the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2011 in the winter session of Parliament.

The Bill seeks to amend the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act and Recovery of Debts due to Banks & Financial Institutions (RDBF) Act so as to strengthen the regulatory and institutional framework related to recovery of debts due to banks and financial institutions through the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2011.

The proposed amendments would enable banks to improve their operational efficiency, deploy more funds for credit disbursement to retail investors, home loan borrowers, etc. without fearing for recovery, thus bringing about equity. Further, mandatory registration of subsisting security interest (equitable mortgages) would promote innovation in credit information.

The suggested amendments would strengthen the ability of banks to recover debts due from the borrowers, enhance the ability of the banks to extend credit to both corporate and retail borrowers, reduce the cost of funds for banks and their customers and reduce the level of non-performing assets.

The banks and financial institutions (FIs) were facing numerous problems in recovery of defaulted loans on account of delays in disposal of recovery proceedings. The Government, therefore, enacted the RDBF Act in 1993 and SARFAESI Act in 2002 for the purpose of expeditious recovery of non-performing assets (NPAs) of the banks and FIs. Although these two acts have helped in reducing the NPAs, banks have sent certain suggestions for further strengthening of the secured creditor rights.

Global Ratings firm Moody’s downgraded SBI’s Credit Rating

On 4 October 2011 the credit rating of the State Bank of India was downgraded by the Global ratings firm Moody’s. The ratings agency took SBI's grading to D+ from C-.

SBI had a shortage of capital to cushion bad loans or contingencies and thus started weakening asset quality. High interest rates in a slowing economy results in shorthand for loans that do not yield interest. This led Moody’s to adopt a negative view on SBI’s creditworthiness. As a result, the borrowing companies suffer. Rating downgrades usually are caution signals to bond investors. The Banking customers do not have encounter risk.

After the downgrade, SBI shares slipped 4% to Rs 1,787 on the Bombay Stock Exchange and the Sensex  dropped 1.77%  or 302 points to 15,685.

As of June 2011, the Capital Adequacy Ratio (CAR) of the SBI stood at 11.6 %. CAR is a measure of the back-up money a bank has to withstand loan uncertainties.

Tier-I capital stood at 7.6 % which was a little below the 8 % desired by the government. Tier-I capital broadly refers to shareholder equity.

Finance Ministry revised the Budget Estimate of Direct Tax Collection Upwards to Rs 5.85 lakh crore

The finance ministry in October 2011 revised the Budget estimate of direct tax collection upwards by Rs 53000 crore to Rs 5.85 lakh crore. The higher target marked an increase of 31% over last year’s collection of Rs 4.46 lakh crore. The Budget estimate of direct tax collection was revised upwards to bridge the shortfall that might occur due to reduction in customs duty on crude oil to offset price rise.

The growth in net direct tax collection in the April-September 2011 period was only 7% or Rs 1.94 lakh crore. But the overall gross collection rose by 23% to Rs 2.57 lakh crore. The collection was 36% of the budget estimates of Rs 5.32 lakh crore for 2011-12.

CBDT officials opined that the government will have to move fast on increasing the strength of the department. There are 1,200 posts of additional commissioners, considered the backbone of tax collection, of which there are at least 600 vacancies.

 CBDT created several new investigative departments, including a Directorate of Criminal Investigation with the mandate of inducting a marine and armed unit to tackle white-collar crimes and deal with tax evaders even on foreign shores.

CBDT’s request to enhance the manpower was personally vetted by finance minister Pranab Mukherjee and the file was moved to DoPT for final approval.

Government’s Fiscal Deficit surged to Rs 2.73 lakh crore in April-August 2011 Period

According to Comptroller General of Accounts data released on 30 September, the government’s fiscal deficit surged nearly two-fold to Rs 2.73 lakh crore during the first five months (April-August) of the current fiscal 2011-12 due to low revenue realisation. Deficit was Rs 1.5 lakh crore in April-August period of 2010.

The higher deficit in the April-August, 2011 was attributed to slowdown in net revenue collection following higher refunds and moderation in economic growth rate. The government decided to increase 2011’s borrowing target by an additional Rs 53,000 crore anticipating slower tax collections and lower disinvestment proceeds.

The deficit in the April-August period was 66.3 per cent of the target originally estimated at the beginning of the 2011-12 fiscal for the whole year.

Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan  pointed out that the target to cut fiscal deficit to at 4. per cent of the GDP for the current financial year would be missed. The government's decision to borrow Rs 52872 crore more from the market, over and above Rs 4.17 lakh crore estimated earlier for the current year, put pressure on the deficit number.

The net tax revenue receipts for April-August period stood at Rs 1.44 lakh crore, which is 21.8 per cent of the budget estimates. On the other hand, total expenditure was at 37.5 per cent of the target at Rs 4.72 lakh crore.

During April-August 2011, the direct tax mop-up was at Rs 96738 crore, which is 3.3 per cent less than the corresponding period in 2010 on account of huge refunds of Rs 57622 crore. The advance tax paid by corporates witnessed a marginal growth of 13 per cent to Rs 68000 crore in the second quarter of 2011-12, compared with the corresponding period in 2010. However, the indirect tax collection in the first five months stood at Rs 1.40 lakh crore, an increase of 26 per cent, over the corresponding period in 2010.

Finance Minister Pranab Mukherjee had lowered the fiscal deficit target to Rs 412,817 crore or 4.6 per cent of the gross domestic product from 4.7 per cent achieved during 2010-11.

Post Offices to Provide Visa Related Services in Remote Areas

India Post has signed a Memorandum of Understanding (MOU) with M/s VFS Global to provide visa related services for different countries through Post Offices. Memorandum of Understanding between India Post and M/s VFS Global was signed in Delhi on 30 August 2011 in the presence of Secretary, Department of Posts and senior officers from Department of Posts and VFS Global. The MOU sets out broad understandings and intentions of both the parties to provide visa related services at places where they are not currently available.

Post Office counters will be used for fee collections, providing visa applications forms, dissemination of visa information, biometric enrollment and other visa application process related services. India Post and VFS are also planning to cooperate in utilizing India Post’s courier service, Speed Post for movements of passports to VFS offices and concerned embassies, and their delivery back to the applicants. Both the parties will also explore to provide any other service that India Post may want to provide through VFS global network on mutually accepted terms.

M/s VFS Global is in the business of visa application services and is working with 35 governments across the world with over 450 offices in 50 countries. India Post and VFS realize that there are many areas of mutual interest and synergy between India Post and VFS would benefit the public at large.

Currently visa related services are largely available in metros only and the people from smaller cities and rural areas have to travel long distances in order to avail these services. Lack of information is also a major area of concern as this allows unscrupulous elements to cheat unsuspecting and vulnerable people. Engagement of India Post towards provision of visa related services is expected to address this situation to a large extent.

Finance Ministry relaxed Norms for Foreign Institutional Investments in Infrastructure Space

The finance ministry on 12 September 2011 relaxed the norms for foreign institutional investments (FII) in the infrastructure space by reducing the residual maturity and lock-in periods for investments in listed and unlisted bonds.

As per the new norms, FIIs were allowed to invest up to $5 billion in long-term infrastructure bonds having an initial maturity of five years and a residual maturity of one year compared to five years residual maturity before. FIIs were permitted to invest a maximum of $17 billion in long-term infrastructure bonds of an equivalent initial maturity but with a residual maturity period of three years compared to five years before. While the lock-in period for the $5 billion investment window was cut down from three years to one year, it will remain three years for the $17 billion investment.

The finance ministry had created a USD 3 billion window 9 August  2011 from the overall USD 25 billion limit. Qualified foreign investors (QFIs) were permitted to subscribe to debt schemes pertaining to infrastructure sector. $3 billion will continue to remain open to qualified foreign investors (QFIs) for investing in mutual fund debt schemes that invest in infrastructure sector.

The government had in May 2011 raised the FII investment limit to $25 billion for investments in listed and unlisted bonds from $5 billion before. The maturity period for these investments had been set at a minimum of five years and the lock-in period for three years. The scheme had been conceived to open new channels of funding for the infrastructure sector while deepening the corporate bond market. However the response to the scheme was founf to be tipid. The above changes were therefore introduced after consulting the Reserve Bank of India and the Securities Exchange Board of India (SEBI).

The new norms are expected to kick-start FII flows into the long-term corporate bonds and facilitate funding of infrastructure projects. Despite the $25 billion ceiling, only $109 million entered the market through this route as on 31 August 2011.

Union Government reconstituted NMCC under Chairmanship of V. Krishnamurthy

The Union Government on 26 September 2011 announced the reconstitution of the National Manufacturing Competitiveness Council (NMCC) under the chairmanship of V. Krishnamurthy. The NMCC was restructured vide a Government Gazette Notification dated 17 August 2011.

The council is to energise and sustain the growth of manufacturing industries and help in the implementation of strategies by the government.

Following the reconstitution, the council will comprise the Planning Commission Member (Industry), Department of Industrial Policy and Promotion Secretary, Finance Secretary, Heavy Industry Secretary, Micro, Small and Medium Enterprises Secretary and the Director-General of the Council for Scientific and Industrial Research from the government side.

The President of the Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI) President and Associated Chambers of Commerce and Industry of India (ASSOCHAM) President will represent the apex industry organisations in the 28-member body.

Finance Ministry Chief Economic Advisor Kaushik Basu and Indian Council for Research in International Economic Relations Isher Judge Ahluwalia are the two economists in the reconstituted body.

The representatives of various industrial sectors included in the NMCC are Tata Group Chairman Ratan Tata, TVS Motor Company CMD Venu Srinivasan, S Kumars Group Chairman Mukul Kasliwal, Larsen & Toubro CMD A M Naik, ITC Ltd CMD Y C Deveshwar, Godrej & Boyce Ltd CMD Jamshyd Godrej, BHEL CMD B P Rao and HCL Infosystems Chairman and CEO Ajai Chowdhry.

NMCC was set up by the government as an inter-disciplinary body at the highest level to serve as a policy forum for credible and coherent policy initiatives in the manufacturing sector.