Rail Budget 2013-14 Highlights

Railway Minister Pawan Kumar Bansal has announced the Union Railway Budget for 2013-14 in Parliament. Here are the highlights –
 

 ● No increase in passenger fares 

 ● Railways will absorb Rs. 850 crore on account of no hike in passenger fare

 ● Marginal increase in reservation charges, cancellation charges

 ● Supplementary charges for superfast trains and tatkal booking

 ● 26 new passenger trains to be launched

 ● 67 express trains to be launched 

 ● 9 Electric Multiple Unit (EMU) trains to be introduced

 ● 500-km new lines to be completed in 2013-14

 ● Concessional fare for sportspersons

 ● 5 per cent average increase in freight 

 ● Diesel price hike added Rs. 3,300 crore to fuel bill of Railways

 ● Railways hopes to end 2013-14 with a balance of Rs. 12,506 crore

 ● 5.2 per cent growth in passenger traffic expected in 2013-14

 ● Railways' freight loading traffic scaled down by 100 million tonnes from 1025 million tonnes because of economic slowdown

 ● Railways to set up a Debt Service Fund

 ● Rs. 3,000 crore loan from Finance Ministry re-paid with interest by Railways this financial year

 ● New coach manufacturing and maintenance facilities to be set up in various places including Rae Bareli, Bhilwara, Sonepat, Kalahandi, Kolar, Palakkad and Pratapgarh

 ● Five fellowships to be announced to motivate students

 ● Centralised training institute to be set up in Secunderabad

 ● Will provide better living conditions for Railway Protection Force (RPF) personnel

 ● Seek to fill 1.52 lakh vacancies in railways this year. 47,000 vacancies for weaker sections and physically challenged to be filled up soon

 ● Target of Rs. 4,000 crore for railway production units in 2014 

 ● Trying to connect Manipur through railways

 ● Investment of Rs. 3800 crore for port connectivity projects

 ● Target of Rs. 1000 crore each for Indian Railways Land Development Authority and Indian Railways Station Development authority

 ● Toll free 1800111321 number to address grievance. Introduced from February 2013

 ● Labs to test food provided in trains. ISO certification for all rail kitchens

 ● Advance fraud control will be used for ticket sale

 ● Induction of e-ticketing through mobile phones, SMS alerts to passengers 

 ● Next-generation e-ticketing system to improve end user experience. The system will support 7200 users per minute 

 ● Wheelchairs and escalators to be made to make stations and trains friendlier for the differently-abled.

 ● Rs. 100 crore to be spent to augment facilities at Delhi, New Delhi and Nizamuddin railway stations

 ● Special attention to stations in NCR.

 ● Free wi-fi facilities in select trains. 60 more 'adarsh' stations 

 ● Safety measures including new coaches with anti-climb features to be brought in

 ● More ladies specials in metros and a helpline number to be implemented

 ● Railways meets need of consumers while adhering to sound economic principles. Need to expand at a much faster growth rate

 ● I am committed to improving passenger amenities

 ● Resource crunch cannot be a reason for substandard services 

 ● Elimination of over 10,000 level crossings 

 ● 17 bridges sanctioned for rehabilitation

 ● Enhancement of the track capacity and the Train Protection Warning System (TPWS)

 ● Indigenously developed collision avoidance system to be put to trial

 ● Induction of self-propelled accident relief trains along with fast and reliable disaster management system

 ● Railway passengers deserve safe and comfortable travel. Safety is a mandate in running trains. There has been a significant reduction in accidents - .41 per million kms in 2003-04 to .13 in 2011- 12. We will strive to work towards a zero accident situation.

 ● Our targets need to be higher

 ● Mounting scarcity of resources, thin spread of funds continue to be a problem 

 ● The number of passenger trains has increased from 8000 in 2001 to over 12000 in 2012 - yet losses continue to mount. It is estimated to be Rs. 24,000 cr in 2012-13 

 ● Indian railways must remain financially viable

 ● Indian Railways plays an unparalleled growth in integrating the nation

Railway Budget 2013-14: New 67 Express, 26 Passenger Trains introduced

Union Rail Minister Pawan Kumar Bansal on 26 Feb., 2013 announced 106 new trains in Railway Budget 2013-14. Of the new trains 67 are Express, 26 passenger trains, 5 MEMUs and 8 DEMUs.

Express Trains

1. Ahmedabad – Jodhpur Express (Weekly) Via Samdari, Bhildi 

2. Ajni (Nagpur) – Lokmanya Tilak (T) Express (Weekly) Via Hingoli 

3. Amritsar – Lalkuan Express (Weekly) Via Chandigarh 

4. Bandra Terminus – Ramnagar Express (Weekly) Via Nagda, Mathura, Kanpur, Lucknow, Rampur

5. Bandra Terminus – Jaisalmer Express (Weekly) Via Marwar, Jodhpur 

6. Bandra Terminus – Hisar Express (Weekly) Via Ahmedabad, Palanpur, Marwar, Jodhpur, Degana 

7. Bandra Terminus – Haridwar Express (Weekly) Via Valsad 

8. Bangalore – Mangalore Express (Weekly) 

9. Bathinda – Jammu Tawi Express (Weekly) Via Patiala, Rajpura 

10. Bhubaneswar – Hazrat Nizamuddin Express (Weekly) Via Sambalpur 

11. Bikaner – Chennai AC Express (Weekly) Via Jaipur, Sawai Madhopur, Nagda, Bhopal, Nagpur 

12. Chandigarh –Amritsar Intercity Express (Daily) Via Sahibzada Ajitsingh Nagar (Mohali), Ludhiana 

13. Chennai – Karaikudi Express (Weekly) 

14. Chennai – Palani Express (Daily) Via Jolarpettai, Salem, Karur, Namakkal 

15. Chennai Egmore – Thanjavur Express (Daily) Via Villupuram, Mayiladuthurai 

16. Chennai – Nagarsol (For Sai Nagar Shirdi) Express (Weekly) Via Renigunta, Dhone, Kacheguda 

17. Chennai – Velankanni Link Express (Daily) Via Villupuram, Mayiladuthurai, Tiruvarur 

18. Coimbatore – Mannargudi Express (Daily) Via Tiruchchirappalli, Thanjavur, Nidamangalam 

19. Coimbatore – Rameswaram Express (Weekly) 

20. Delhi – Firozpur Intercity Express (Daily) Via Bathinda 

21. Delhi Sarai Rohilla – Sikar Express (Bi-weekly) after gauge conversion 

22. Delhi – Hoshiarpur Express (Weekly) 

23. Durg – Jaipur Express (Weekly) 

24. Gandhidham – Visakhapatnam Express (Weekly) Via Ahmedabad, Wardha, Ballarshah, Vijaywada 

25. Hazrat Nizamuddin – Mumbai AC Express (Weekly) via Bhopal, Khandwa, Bhusawal 

26. Howrah – Chennai AC Express (Bi-weekly) Via Bhadrak, Duvvada, Gudur 

27. Howrah – New Jalpaiguri AC Express (Weekly) Via Malda Town 

28. Hubli – Mumbai Express (Weekly) Via Miraj, Pune 

29. Indore – Chandigarh Express (Weekly) Via Dewas, Ujjain, Guna, Gwalior, Hazrat Nizamuddin 

30. Jabalpur – Yesvantpur Express (Weekly) Via Nagpur, Dharmavaram 

31. Jaipur – Lucknow Express (Tri-weekly) Via Bandikui, Mathura, Kanpur 

32. Jaipur-Alwar Express (Daily) 

33. Jodhpur –Jaipur Express (Daily) Via Phulera 

34. Jodhpur – Kamakhya (Guwahati) Express (Weekly) Via Degana, Ratangarh 

35. Kakinada – Mumbai Express (Bi-weekly) 

36. Kalka – Sai Nagar Shirdi Express (Bi-weekly) Via Hazrat Nizamuddin , Bhopal, Itarsi 

37. Kamakhya (Guwahati) – Anand VIhar Express (Weekly) Via Katihar, Sitapur Cantt, Moradabad 

38. Kamakhya (Guwahati) – Bangalore AC Express (Weekly) 

39. Kanpur – Anand Vihar Express (Weekly) Via Farrukhabad 

40. Katihar – Howrah Express (Weekly) Via Malda Town 

41. Katra – Kalka Express (Bi-weekly) Via Morinda 

42. Kolkata – Agra Express (Weekly) Via Amethi, Rae Bareli, Mathura 

43. Kolkata – Sitamarhi Express (Weekly) Via Jhajha, Barauni, Darbhanga 

44. Kota – Jammu Tawi Express (Weekly) Via Mathura, Palwal 

45. Kurnool Town – Secunderabad Express (Daily) 

46. Lokmanya Tilak (T) – Kochuveli Express (Weekly) 

47. Lucknow – Varanasi Express Via Rae-Bareli (6 Days a week) 

48. Madgaon – Mangalore Intercity Express (Daily) Via Udupi, Karwar 

49. Mangalore – Kacheguda Express (Weekly) Via Dhone, Gooty, Renigunta, Coimbatore 

50. Mau – Anand Vihar Express (Bi-weekly) 

51. Mumbai – Solapur Express (6 Days a week) Via Pune 

52. Nagercoil – Bangalore Express (Daily) Via Madurai, Tiruchchirappalli 

53. New Delhi – Katra AC Express (6 Days a week) 

54. Nizamabad – Lokmanya Tilak (T) Express (Weekly) 

55. Patna – Sasaram Intercity Express (Daily) Via Ara 

56. Patliputra (Patna) – Bangalore Express (Weekly) Via Chheoki 

57. Puducherry – Kanniyakumari Express (Weekly) Via Villupuram, Mayiladuthurai, Tiruchchirappalli 

58. Puri – Sai Nagar Shirdi Express (Weekly) Via Sambalpur, Titlagarh, Raipur, Nagpur, Bhusawal 

59. Puri –Ajmer Express (Weekly) Via Abu-Road 

60. Radhikapur – Anand Vihar Link Express (Daily) 

61. Rajendra Nagar Terminus (Patna)– New Tinsukia Express (Weekly) Via Katihar, Guwahati 

62. Tirupati – Puducherry Express (Weekly) 

63. Tirupati – Bhubaneswar Express (Weekly) Via Visakhapatnam 

64. Una / Nangaldam– Hazoor Saheb Nanded Express (Weekly) 

Via Anandpur Saheb, Morinda, Chandigarh, Ambala 

65. Visakhapatnam – Jodhpur Express (Weekly) Via Titlagarh, Raipur 

66. Visakhapatnam – Kollam Express (Weekly) 

67. Yesvantpur – Lucknow Express (Weekly) via Rae Bareli, Pratapgarh 

Passenger Trains

1. Bathinda – Dhuri Passenger (Daily) 

2. Bikaner-Ratangarh Passenger (Daily) 

3. Bhavnagar – Palitana Passenger (Daily) 

4. Bhavnagar – Surendranagar Passenger (Daily) 

5. Bareilly – Lalkuan Passenger (Daily) 

6. Chhapra –Thawe Passenger (Daily) 

7. Loharu – Sikar Passenger (Daily) after gauge conversion 

8. Madgaon – Ratnagiri Passenger (Daily) 

9. Marikuppam – Bangalore Passenger (Daily) 

10. Muzaffarpur – Sitamarhi Passenger (Daily) via Runnisaidpur 

11. Nadiad – Modasa Passenger (6 days a week) 

12. Nandyal – Kurnool Town passenger (Daily) 

13. New Amravati – Narkher Passenger (Daily) 

14. Punalur – Kollam Passenger (Daily) 

15. Purna – Parli Vaijnath Passenger (Daily) 

16. Palani-Tiruchendur Passenger (Daily) 

17. Ratangarh - Sardarsahar Passenger (Daily) after gauge conversion 

18. Samastipur- Banmankhi Passenger via Saharsa, Madhepura (Daily) after gauge conversion 

19. Shoranur – Kozhikode Passenger (Daily) 

20. Surendranagar – Dharangdhara Passenger (Daily) 

21. Suratgarh – Anupgarh Passenger (Daily) 

22. Somnath – Rajkot Passenger (Daily) 

23. Sitamarhi – Raxaul Passenger (Daily) 35 

24. Sriganganagar – Hanumangarh-Sadulpur Passenger (Daily) after gauge conversion 

25. Talguppa – Shimoga Town Passenger (Daily) 

26. Thrisur-Guruvayur Passenger (Daily) 

MEMU Services

1. Barabanki – Kanpur 

2. Chennai – Tirupati 

3. Delhi- Rohtak (Replacement of conventional service by MEMU) 

4. Lucknow – Hardoi 

5. Sealdah – Berhampore Court 

DEMU Services 

1. Bhatkal – Thokur 

2. Delhi – Kurukshetra Via Kaithal 

3. Katwa – Jangipur 

4. Lucknow – Sultanpur 

5. Lucknow – Pratapgarh Via Gauriganj 

6. Madgaon – Karwar 

7. Rohtak – Rewari 

8. Taran Taran – Goindwal Saheb 

Extension of Trains 

1. 19601/19602 Ajmer-New Jalpaiguri Express to Udaipur 

2. 15715/15716 Ajmer-Kishanganj Express to New Jalpaiguri 

3. 12403/12404 Allahabad – Mathura Express to Jaipur 

4. 17307/17308 Bagalkot-Yesvantpur Express to Mysore 

5. 18437/18438 Bhubaneswar – Bhawanipatna Express to Junagarh 

6. 18191/18192 Chhapra – Kanpur Anwarganj Express to Farrukhabad 

7. 16127/16128 Chennai-Madurai portion of Chennai-Guruvayur Express to Tuticorin 

8. 12231/12232 Chandigarh-Lucknow Express to Patna (2 days) 

9. 12605/12606 Chennai-Tiruchchirappalli Express to Karaikudi 

10. 14007/14008 Delhi-Muzaffarpur Express to Raxaul after gauge conversion 

11. 14017/14018 Delhi-Muzaffarpur Express to Raxaul after gauge conversion 

12. 12577/12578 Darbhanga-Bangalore Express to Mysore 

13. 14731/14732 Delhi – Bathinda Express to Fazilka 

14. 14705/14706 Delhi Sarai Rohilla-Sadulpur Express to Sujangarh (Salasar Express) 

15. 15159/15160 Durg- Chhapra Express to Muzaffarpur and Gondia 

16. 12507/12508 Guwahati-Ernakulam Express to Thiruvananthapuram 

17. 17005/17006 Hyderabad-Darbhanga Express to Raxaul after gauge conversion 

18. 17011/17012 Hyderabad- Belampalli Express to Sirpur Kaghaznagar 

19. 16591/16592 Hubli-Bangalore Express to Mysore 

20. 12181/12182 Jabalpur-Jaipur Express to Ajmer 

21. 15097/15098 Jammu Tawi-Barauni Express to Bhagalpur 

22. 13117/13118 Kolkata – Berhampore Court Express to Lalgola 

23. 22981/22982 Kota-Hanumangarh Express to Shri Ganga Nagar 

24. 15609/15610 Lalgarh- Guwahati Express to New Tinsukia 

25. 12145/12146 Lokmanya Tilak (T)-Bhubaneswar Express to Puri 

26. 12545/12546 Lokmanya Tilak (T)-Darbhanga Express to Raxaul after gauge conversion 

27. 12449/12450 Madgaon-Hazrat Nizamuddin Express to Chandigarh 

28. 12653/12654 Mangalore – Tiruchchirappalli Express to Puducherry 

29. 29019/29020 Meerut-Nimach Link Express to Mandasor 30. 22107/22108 Mumbai CST-Latur Express to Hazoor Saheb Nanded 

31. 14003/14004 New Delhi -New Farakka Express to Malda Town 

32. 15723/15724 New Jalpaiguri-Darbhanga Express to Sitamarhi 

33. 18419/18420 Puri-Darbhanga Express to Jaynagar 

34. 19327/19328 Ratlam-Chittaurgarh Express to Udaipur 

35. 13133/13134 Sealdah – Varanasi Express (2 Days) to Delhi via Lucknow, Moradabad 

36. 14711/14712 Shri Ganga Nagar – Haridwar Express to Rishikesh 

37. 16535/16536 Solapur-Yesvantpur Express to Mysore 

38. 19251/19252 Somnath-Dwarka Express to Okha 

39. 12629/12630 Yesvantpur – Hazrat Nizamuddun Sampark 

Kranti Express 2 days to Chandigarh 

40. 59601/59602 Ajmer-Beawar Passenger to Marwar 

41. 56513/56514 Bangalore-Nagore Passenger to Karaikal 

42. 51183/51184 Bhusaval-Amravati Passenger to Narkher 

43. 57502/57503 Bodhan-Kamareddi Passenger to Mirzapalli 

44. 54632/54633 Dhuri-Hisar/ Hisar- Ludhiana Passenger to Sirsa 

45. 56700/56701Madurai-Kollam Passenger to Punalur 

46. 56709/56710 Madurai-Dindigul Passenger to Palani 

47. 56275/56276 Mysore-Shimoga Town Passenger to Talguppa 

48. 59297/59298 Porbander-Veraval Passenger to Somnath 

49. 66611/66612 Ernakulam-Thrisur MEMU to Palakkad 

50. 67277/67278 Falaknuma-Bhongir MEMU to Jangaon 

51. 66304/66305 Kollam-Nagarcoil MEMU to Kanniyakumari 

52. 63131/63132 Krishnanagar City-Berhampore Court MEMU to Ranaghat and to Cossimbazar 

53. 74021/74024 Delhi-Shamli DEMU to Saharanpur 

54. 76837/76838 Karaikudi-Manamadurai DEMU to Virudunagar after gauge conversion 

55. 79454/79445 Morbi-Wankaner DEMU to Rajkot 

56. 77676/77677 Miryalguda-Nadikudi DEMU to Piduguralla 

57. 79301/79302 Ratlam-Chittaurgarh DEMU to Bhilwara 38 

Increase in frequency 

The frequency of the following trains will be increased:

1. 12547/12548 Agra Fort –Ahmedabad Express 3 to 7 days 

2. 11453/11454 Ahmedabad-Nagpur Express 2 to 3 days 

3. 22615/22616 Coimbatore-Tirupati Express 3 to 4 days 

4. 14037/14038 Delhi-Pathankot Express 3 to 6 days 

5. 19409/19410 Gorakhpur – Ahmedabad Express 1 to 2 days 

6. 13465/13466 Howrah – Malda Town Express 6 to 7 days 

7. 12159/12160 Jabalpur – Amravati Express 3 to 7 days 

8. 11103/11104 Jhansi – Bandra (T) Express 1 to 2 days 

9. 19325/19326 Indore – Amritsar Express 1 to 2 days 

10. 12469/12470 Kanpur – Jammu Tawi Express 1 to 2 days 

11. 12217/12218 Kochuveli – Chandigarh Express 1 to 2 days 

12. 12687/12688 Madurai – Dehradun/Chandigarh Express 1 to 2 days 

13. 13409/13410 Malda Town – Jamalpur Express 6 to 7 days 

14. 17213/17214 Narsapur – Nagersol (Near Sainagar Shirdi) Express 2 to 7 days 

15. 12877/12878 Ranchi-New Delhi Garib Rath Express 2 to 3 days 

16. 18509/18510 Visakhapatnam – Hazoor Saheb Nanded Express 2 to 3 days 

17. 22819/22820 Visakhapatnam – Lokmanya Tilak (T) Express 2 to 7 days 

18. 18309/18310 Sambalpur-Hazoor Saheb Nanded Express 2 to 3 days 

19. 12751/12752 Secunderabad – Manuguru Express 3 to 7 days 

20. 12629/12630 Yesvantpur – Hazrat Nizamuddun Sampark Kranti Express 2 to 4 days 

21. 56221/56222/56525/56526 Bangalore – Tumkur Passenger 6 to 7 days 

22. 56321 Kanniyakumari-Tirunelveli Passenger 6 to 7 days 

23. 56325 Nagercoil – Kanniyakumari Passenger 6 to 7 days 

24. 56312 Tirunelveli - Nagercoil Passenger 6 to 7 days

 

Economic Survey of India 2012 - 13 Highlights

The Economic Survey 2013 says that foreign exchange reserves were steady at $295.6 billion at December 2012 end. Fiscal deficit may be at 5.3%, possible that Chidambadarm may bring it down to 5.2%, committed to controlling fiscal deficit. Food inflation was mainly driven by cereal prices. Diesel price hike will put upward pressure on inflation. The Survey also said that the economic slowdown is a wake up call for stepping up reforms.

Here are the other highlights:
● FY13 GDP growth target of 5% not difficult to achieve
● Medium term fiscal consolidation plan 'credible'
● Fund flows to be influenced by risk perception of investors
● Need to hike Diesel, LPG prices in line with global prices
● Montek says: Not surprised finance ministry has used CSO estimates for basis of survey
● Need to access credit at lower costs
● Tight RBI policy led to sharper than expected slowdown
● RBI rate cut has had massive impact already
● On inflation, survey echos sentiment that in short run, impact of policy easing may not increase inflation
● Curb import, keep public spending in check
● FY14 Current account deficit seen at 4.6%
● Cushion for lowering trade deficit must be limited
● Core inflation down on rbi action, fall in global prices
● Tight RBI policy led to sharper than expected slowdown
● Further steps needed to diversify software exports
● FY13 tax mop up significantly lower than budget estimate
● 0.2% fiscal slippage possible in FY14
● Will need direct, indirect tax increases will get you revenue numbers: financial experts
● Credible austerity has to be the way to growth: experts
● Finance sector to be influenced by short-term, long term of
● Outlook on public finance: controlling subsidy, petroleum subsidy, recent reforms in diesel prices, medium term consolidation plan seems secure
● Need to curb gold and oil imports to curb current account deficit: Economic Survey
● Need to stay on path of indicated fiscal deficit
● Raghuram Rajan: slowdown in economy, euro crisis, uncertainty in fiscal policy in US and weak monsoon
● Raghuram Rajan: difficult times but India has navigated such time before and with good policies we can go ahead
● Unless india undertakes reforms, will growth far below potential
● Monetary policy has limited influence on food prices
● Mixed signals that ind growth has bottomed out
● Main focus shud be on import of curbs of oil and gold
● FII flows need to be tageted
● Need to improve acccess to credit at lower rates
● IIP growth may remain sluggish
● Widening trade, current account gap matters of concern
● Room to increase exports limited in short term
● Need to curb gold imports to curb current account deficit
● Need to stay on path of indicated fiscal deficit
● FY13 services growth seen at 6.6%
● WPI may decline to 6.2-6.7% in FY14, fall in inflation to increase monetary easing
● Room to increase exports limited in short term limited
● Growth downturn more or less over, economy looking up
● Need to curb gold imports to cut CAD
● Diesel price hike to put pressure on inflation
● Widening trade, current ac defiit matter of concern
● FY13 tax mop up significantly lower than last year
● Food inflation mainly driven by cereal prices
● Medium-term fiscal consolidation plan credible
● Industrial growth still vunerable to local, global factors
● Apr-Dec data shows 5.3% fiscal deficit achievable
● Need to stay on path of indicated fiscal consolidation
● Overall global economic environment remains fragile
● Govt committed to fiscal consolidation
● Concerns food security bill may push up subsidy
● Lower ind growth due to sluggish investments
● Economy to grow at 6.1-6.7% in FY13
● WPI at 6.2% to 6.6% in march
● Controlling supsidy remains crutial concern
● Need to up diesel lpg prices in line with global rates
● Tight RBI policy led to sharper than expected slowdown
● Mixed signals that ind growth has bottomed out
● Main focus shud be on import of curbs of oil and gold
● FII flows need to be tageted
● Need to improve acccess to credit at lower rates
● IIP growth may remain sluggish
● Indian economy to grow at 6.1-6.7%
● WPI inflation in March may go down to 6.2-6.6%
● Lower inflation to create more room for rate cuts
● Growth downturn more or less over; economy looking up

Janani Shishu Suraksha Karyakram, the new initiative of Ministry of Health and Family Welfare

About 56,000 women in India die every year due to pregnancy related complications. Similarly, every year more than 13 lacs infants die within 1year of the birth and out of these approximately 9 lacs i.e. 2/3rd of the infant deaths take place within the first four weeks of life. Out of these, approximately 7 lacs i.e. 75% of the deaths take place within a week of the birth and a majority of these occur in the first two days after birth.
In order to reduce the maternal and infant mortality, Reproductive and Child Health Programme under the National Rural health Mission (NRHM) is being implemented to promote institutional deliveries so that skilled attendance at birth is available and women and new born can be saved from pregnancy related deaths.
Several initiatives have been launched by the Ministry of health and Family Welfare (MoHFW) including Janani Suraksha Yojana (JSY) a key intervention that has resulted in phenomenal growth in institutional deliveries. More than one crore women are benefitting from the scheme annually and the outlay for JSY has exceeded 1600 crores per year.

Key features of the scheme:

• The initiative entitles all pregnant women delivering in public health institutions to absolutely free and no expense delivery, including caesarean section.
• The entitlements include free drugs and consumables, free diet up to 3 days during normal delivery and up to 7 days for C-section, free diagnostics, and free blood wherever required. This initiative also provides for free transport from home to institution, between facilities in case of a referral and drop back home. Similar entitlements have been put in place for all sick newborns accessing public health institutions for treatment till 30 days after birth.
• The scheme aims to eliminate out of pocket expenses incurred by the pregnant women and sick new borns while accessing services at Government health facilities.
• The scheme is estimated to benefit more than 12 million pregnant women who access Government health facilities for their delivery. Moreover it will motivate those who still choose to deliver at their homes to opt for institutional deliveries.
• All the States and UTs have initiated implementation of the scheme.

 

Rogi Kalyan Samiti (RKS)/ Hospital Management

In most developing countries, provision of basic preventive, promotive and curative services is a major concern of the Government and decision makers. With growing population and advancement in the medical technology and increasing expectation of the people especially for quality curative care, it has now become imperative to provide quality health care services through the established institutions.
Upgradation of CHCs to Indian Public Health Standards (IPHS) is a major strategic intervention under the National Rural Health Mission (NRHM). The purpose is to provide sustainable quality care with accountability and people's participation alongwith total transparency.

PMO forms executive panel on implementing the 8 missions of the NAPCC

A secretary level committee has been constituted by Prime Minister Manmohan Singh to assist the PM’s council on climate change in implementing the 8 missions of the National Action Plan of Climate Change (NAPCC).
The absence of Inter-ministerial coordination has crippled the implementation of the missions resulting in the setting up of the executive panel on climate change to be headed by principal secretary to Prime Minister Pulok Chatterji.

What is the job of the panel:
The committee will regularly monitor the implementation of the eight missions, other climate change initiatives and advise the Prime Minister’s council on modifications in the objectives, strategies and structure of the missions.
The Prime Minister’s council on climate change was formed in 2007, in order to co-ordinate national action for assessment, adaptation and mitigation of climate change.

What is NAPCC and what are its 8 missions:

 NAPCC is a comprehensive action plan which outlines measures on climate change related adaptation and mitigation while simultaneously advancing development. The 8 Missions form the core of the Plan, representing multi-pronged, long termed and integrated strategies for achieving goals in the context of climate change. The Eight Missions are:

I. National Solar Mission
Objective:

• Make solar energy competitive with fossil-based energy options.
• Launch an R&D programme facilitating international co-operation to enable the creation of affordable, more convenient solar energy systems.
• Promote innovations for sustained, long-term storage and use of solar power.

II. National Mission for Enhanced Energy Efficiency

• The Energy Conservation Act of 2001 provides a legal mandate for the implementation of energy efficiency measures through the mechanisms of The Bureau of Energy Efficiency (BEE) in the designated agencies in the country.
• A number of schemes and programmes have been initiated which aim to save about 10,000 MW by the end of the 11th Five-Year Plan in 2012.

III. National Mission on Sustainable Habitats
Objective:

• Make habitats sustainable through improvements in energy efficiency in buildings, management of solid waste and a modal shift to public transport.
• Promote energy efficiency as an integral component of urban planning and urban renewal through its initiatives.

IV. National Water Mission
Objective:

• Conserving water, minimizing wastage, and ensuring more equitable distribution and management of water resources.
• Optimizing water use efficiency by 20% by developing a framework of regulatory mechanisms.

V. National Mission for Sustaining the Himalayan Ecosystem
Objective:

• Empowering local communities especially Panchayats to play a greater role in managing ecological resources.
• Reaffirm the measures mentioned in the National Environment Policy, 2006.

VI. National Mission for a Green India
Objective:

• To increase ecosystem services including carbon sinks.
• To increase forest and tree cover in India to 33% from current 23%.

VII. National Mission for Sustainable Agriculture
Objective:

• Make Indian agriculture more resilient to climate change by identifying new varieties of crops (example: thermally resistant crops) and alternative cropping patterns.
• Make suggestions for safeguarding farmers from climate change like introducing new credit and insurance mechanisms and greater access to information.

VIII. National Mission on Strategic Knowledge on Climate Change
Objective:

• Work with the global community in research and technology development by collaboration through different mechanisms. It also has its own research agenda supported by climate change related institutions and a Climate Research Fund.
• Encourage initiatives from the private sector for developing innovative technologies for mitigation and adaptation.

Venezuela announces currency devaluation

Venezuela’s government has announced that is devaluing the country’s currency, a change expected to push up prices in the heavily import-reliant economy.
The fixed exchange rate is changing from 4.30 bolivars to the dollar to 6.30 bolivars to the dollar.

The devaluation had been widely expected by analysts in recent months.

It was the first devaluation to be announced by President Hugo Chavez’s government since 2010.

Planning and Finance Minister Jorge Giordani said the new rate takes effect immediately, though the old rate would still be allowed for some transactions that already were approved by the state currency agency.

Venezuela’s government has had strict currency exchange controls since 2003 and maintains a fixed, government-set exchange rate.

Under the currency controls, people and businesses must apply to a government currency agency to receive dollars at the official rate to import goods, pay for travel or cover other obligations.

While those controls have restricted the amounts of dollars available at the official rate, an illegal black market has also flourished and the value of the bolivar has recently been eroding.

In black market trading, dollars have recently been selling for more than four times the official exchange rate of 4.30 bolivars to the dollar.

MCX-SX to begin trading in equities, equity derivatives

MCX Stock Exchange (MCX-SX) will begin trading in equities and equity derivatives from February 11.

With its 40-stock index named SX40, MCX-SX is the third full-fledged equity bourse after BSE and NSE. The bourse was formally launched by Finance Minister P. Chidambaram on Saturday.

Free-float based index:

SX40 will be a free-float based index of large-cap and liquid stocks, representing diverse sectors. The base value will be 10,000 with a base date of March 31, 2010, MCX-SX Vice-Chairman Jignesh Shah said during the launch.

The index is designed to measure the economic performance with better representation of various industries and sectors based on the ICB (industry classification benchmark), a global classification from the FTSE of the London bourse.

Globalization and International Business

Globalization is a process through which different economies of the world gradually lift up the restrictions, that hinders the free flow goods, services, resources etc. across various political boundaries.

This is done in particular through International Business (carries out mainly through International Trade and Investment), aided by sophisticated technologies and market integration.

International Business

International Business means carrying out businesses beyond national boundaries. The international business includes both International Trade as well as Foreign Direct Investment (FDI).

International Trade can broadly be divided into two parts viz. Export and Import.

• Export - The transaction of goods and services (via. sales, barter, gift or grant) from home country to the host country is called Export.
• Import - The transaction of goods and services (via. sales, barter, gift or grant) to home country from host country is called Import.

Foreign Direct Investment occurs when an investor based in one country (at home country) acquires an asset in another country (the host country) with intent to manage that asset. It is the management dimension that typically differentiates FDI from Portfolio Investment in foreign securities and financial instruments in foreign securities  and financial instruments.

In most cases both the investor and the asset it manages abroad are business entity. In such a case investor is typically referred to as 'parent firm' and the asset it manage is called 'affiliate' or 'subsidiary'.

Motive behind Foreign Direct Investment (FDI) includes:-

• Acquiring natural resources
• Recovery of large expenditure made on research and development
• Capturing a large International Market System
• Earning Large Profit
• Maintaining Balance of Payment

Importance of International Business

The importance of International Business can be studied at two levels:

Macro Level

1. No country (be it developed or developing) produces all the commodities to meet its requirement as such it needs to port those commodities that are either not produced or produced in insufficient quantity in domestically to meet its requirements.
2. At the same time all the countries tries to export all the commodities that are in excess of its domestic consumption.
3. Maintaining favorable balance of payment.

Micro Level

1. Maximization of corporate wealth
   Corporate wealth is the value of productive asset plus the present value of wealth created by those assets.
   Alternatively, corporate wealth quals to the sum of total of debt and equity of a firm.
2. Minimization of cost
   Acquiring the resources which are relatively cheaper helps reduce the cost of production.
3. Minimization of risk through
   (A) Diversification of business
   (B) Expansion of business

Approaches to International Business

• Ethnocentric- In this form of approach, the policies of a firm operating in foreign country are based upon that of home country.
• Polycentric- In this form of approach, the policies of a firm operating in foreign country are based upon that of host country in which it is operating.
• Geocentric- Between above two approaches, geocentric approach follows a real life situation, where there exist no distinction (or boundaries) of framing the policies in terms of either home or host country. This approach aims to fit the "right policy at right place".

REPORT ON POVERTY LINE IN THE URBAN AREAS

Planning Commission Annual Report 2011-2012 - English

India's per capita income rises to Rs 5,729 per month

India's per capita income, a gauge for measuring living standard, is estimated to have gone up 11.7 per cent to Rs 5,729 per month in 2012-13 at current prices, compared with Rs 5,130 in the previous fiscal.
The estimated rate of growth in per capita income for the current fiscal, however, is lower than the previous fiscal when it grew by 13.7 per cent.
"The per capita income at current prices during 2012-13 is estimated to be Rs 68,747 as compared to Rs 61,564 during 2011-12, showing a rise of 11.7 per cent," an official release by the Central Statistics Office (CSO) on Advance Estimate of National Income, 2012-13.
The per capita income in real terms (at 2004-05 constant prices) during 2012-13 is likely to attain a level of Rs 39,143 as compared to the First Revised Estimate for the year 2011-12 of Rs 38,037, it said.
The Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs 29.94 lakh crore in 2012-13 as against Rs 27.49 lakh crore in 2011-12, the release said.
However, at 2004-05 constant prices, the GFCF is estimated at Rs 19.44 lakh crore in the current fiscal as against Rs 18.97 lakh crore in the previous fiscal, it added. The data also estimated an increase of 13.8 per cent in the Government Final Consumption Expenditure (GFCE) to Rs 11.87 lakh crore at current prices for 2012-13 against Rs 10.43 lakh crore in 2011-12.
On Private Final Consumption Expenditure (PFCE) for the current fiscal, it has estimated an increase of 12.8 per cent to Rs 57.06 lakh crore at current prices as against Rs 50.56 lakh crore in the previous fiscal. "These advance estimates are based on anticipated level of agricultural and industrial production, analysis of budget estimates of government expenditure and performance of key sectors like railways, transport other than railways, communication, banking and insurance, availbale so far," said the data.

Rashtriya Bal Swasthya Karyakram launched in Thane, Maharashtra

UPA chairperson Sonia Gandhi on 6 February 2013 launched a new health initiative called Rashtriya Bal Sawsthya Karyakram at Palghar town in Thane district of Maharashtra. The Rashtriya Bal Swasthya Karyakram, is a part of the National Rural Health Mission of the Union Ministry of Health and Family Welfare.
The Main Features of Rashtriya Bal Swasthya Karyakram are as following:
• The Rashtriya Bal Swasthya Karyakram is aimed at improving overall quality of life of children through early detection of birth defects, diseases and deficiencies, which are among key factors for child mortality.
• The new initiative would assure a package of health services for all children up to 18 years of age. The programme will also prove economical for poor and marginalized.
• The services will be provided through dedicated mobile health teams placed in every block. The scheme, which will be implemented in a phased manner, is expected to benefit approximately 27 crore children across the country.

Birth defects account for 9.6 per cent of all new-born deaths and 4 per cent of under-five mortality. According to the programme, a set of thirty common conditions have been identified for screening and further management of child health.

National Rural Health Mission (NRHM) is an Indian health program for improving health care delivery across rural India. It was launched on 12 April 2005 for a period of 7 years.

CCEA gave its nod to Price Pooling Mechanism on Coal to Control Prices of Coal

The Cabinet Committee on Economic Affairs (CCEA) on 5 February 2013 gave its principle approval for the price pooling mechanism of coal. The mechanism includes cost blending of the domestic coal with the imported one to counterbalance price hike. Basic principles and parameters of the price pooling mechanism have been identified and a specific data on the same would be created by the Power and Coal Ministries.  

The mechanism has been created before government decided to put on sale the 9.5 percent stake of the National Thermal Power Corporation (NTPC) from its present holding of 84.50 percent. The sale of the stake was approved by the Empowered Group of Ministers on disinvestment chaired by Finance Minister P Chidambaram on 5 February 2013. This disinvestment of NTPC would fetch about 12000 crore rupees for the exchequer.

BHEL and GAIL Granted Maharatna Status by the Union Government of India

The Union Government of India gave the Maharatna status to two PSUs- BHEL and GAIL on 1 February 2013. Granting Maharatna status to BHEL and GAIL will provide them with better functional and financial freedom and will also guarantee them with better valuation of the shares.

Ideally any Maharatna firm has a capacity to take investment decision of around 5000 crore Rupees without taking assistance from the government. On the other hand, forms with Navratna status have the capability of 1000 crore Rupees.

However, both BHEL and GAIL do not have enough non-official directors on the board, which is why they cannot exercise their Maharatna powers. Even though all other conditions of Maharatna status were met by both these PSUs but their boards do not have requisite number of board members. While GAIL is short of 4 independent directors, BHEL, on the other hand is short of 6 non-official directors.

In terms of turnover, networth as well as net profit, both these companies meet all the eligibility criterions.

Eligibility of a company to get a Maharatna status

•For any company to qualify for Maharatna status, the annual turnover should be over 25000 crore Rupees in past three years, as per the guidelines issued by Department of Public Enterprises.
•The net worth of the PSU should be more than 15000 crore Rupees in past three years.
•The net profit should be over 5000 crore Rupees during past three years.

At present, there are seven Maharatna companies, after inclusion of BHEL and GAIL and these companies are - ONGC, Indian Oil, SAIL, NTPC and CIL. Also, there are 14 Navratna companies, including Rashtriya Ispat Nigam Limited and NMDC.

Rashtriya Bal Swasthya karyakram launched

A new health initiative “Rashtriya Bal Swasthya Karyakram” was launched by Smt. Sonia Gandhi, Chairperson, UPA from Palghar, a Tribal Block in Thane district, Maharashtra today. The initiative is to provide comprehensive healthcare and improve the quality of life of children through early detection of birth defects, diseases, deficiencies, development delays including disability. 

Launching the programme, Smt. Gandhi said UPA Government is committed to achieve the objective of “Health for All” through accessible, affordable and equitable healthcare services. The Congress party has always strived to be the vehicle of empowerment of the people especially the marginalized sections of the society to see everybody’s dreams fulfilled through inclusive development. Under the National Rural Health Mission, several new initiatives have been taken, particularly to improve maternal and child health. Over Rs. 90,000 crores has been released to the states for strengthening health systems. Despite tremendous improvements in health indicators, about 15 lakh children die before their fifth birthday every year. Many more suffer from debilitating diseases affecting their growth and quality of life. 

Smt. Gandhi said India accounted for more than half of the global burden of polio in 2009. With intensive effort and resolute political will, India has remained polio free for more than two years now. Over 23 lakh volunteers under 1.7 lakh supervisors administer polio drops to about 17 crore children in one nation-wide round, which is the largest exercise in the world. There are 8.80 lakh ASHAs acting as a strong interface between the health system and the community. UPA 1 introduced Janani Suraksha Yojana in 2005 to encourage institutional deliveries by giving cash assistance to pregnant women as incentives. Building on the success of the JSY scheme, Janani Shishu Suraksha karyakram was launched in 2011 to eliminate out-of-pocket expenses for both pregnant women and sick neonates. Under this scheme, every pregnant woman is entitled to absolutely free delivery, including caesarean section, in public health institutions now. Besides the free ante-natal and post-natal check-ups, the scheme provides for free diagnostics, free medicines, free consumables, free food during hospital stay, free caesarean section and free blood, if required and free transport to health facility and drop back home. 

Smt. Gandhi said Mother and Child Tracking System (MCTS) has been put in place to reach out to every pregnant woman for proper care during pregnancy and to every child for proper vaccination. A BPO type system has been set up in the Health Ministry to verify data and give information about check-ups and immunization schedule. A new scheme has been initiated for the promotion of menstrual hygiene among adolescent girls in rural areas. It covers 1.5 crore girls in the age group of 10-19 years in 152 districts of 20 states. To address the growing burden of non-communicable diseases particularly diabetes, cardiovascular diseases and cancer a National Programme was initiated in 100 districts in 21 States for screening of persons above 30 years and pregnant mothers for early detection, control and treatment of diabetes, hypertension and cancer. Under the Pradhan Mantri Swasthya Suraksha Yojana, 6 new AIIMS have been established at Bhopal, Bhubaneswar, Jodhpur, Patna, Raipur and Rishikesh, each with a 976 bedded hospital with 42 super specialty departments and a medical college. In Phase II of PMSSY, 2 new AIIMS will come up at Rae Bareli in Uttar Pradesh and Raiganj in West Bengal. Besides this, up-gradation of 19 medical colleges with super-specialty blocks has been taken up across the country under PMSSY. 

Smt. Gandhi said the initial three years of a child’s life are most critical from the point of view of physical and cognitive development. Regular health screening and early intervention can yield rich dividends. Around 15 lakh children are born with defects, which contributes to 10% of neonatal mortality in our country. Many children suffer from developmental delays, diseases and deficiencies specific to childhood which, if unattended, become severely debilitating and a source of suffering for the entire family. With the launch of the Rashtriya Bal Swasthya Karyakram, regular health screening of children in public health facilities, Aanganwadis and Government and Government aided schools for defects at birth, diseases, deficiencies and development disorders will be done now. This programme will cover 25 crore children all over the country in a phased manner and provide for free follow up management and treatment at the district hospitals and at tertiary levels. She hoped that all State Governments would march in step with the Central Government and take proactive steps to roll out the screening and intervention services at the earliest to improve the survival, health and overall development of children. 

Addressing the programme, Shri Ghulam Nabi Azad, Union Minister of Health & Family Welfare said Smt. Gandhi has been always at the forefront in areas of public health, whether it is the flagging off the Red Ribbon Express to spread awareness against HIV/AIDS or the launch of the Janani Shishu Suraksha Karyakram to provide cashless healthcare to pregnant women and sick newborns during institutional deliveries. We are indeed privileged to have her with us at the National Launch of the Rashtriya Bal Swasthya Karyakram today. Continuum of care extending over different phases of the life over the first 18 years would improve the quality of life of children in our country, Shri Azad added

Amendments to the National Bank for Agriculture and Rural Development (NABARD) Act, 1981

The Union Cabinet  gave its approval to the amendments to the National Bank for Agriculture and Rural Development (NABARD) Act 1981 

The following amendments to the NABARD Act 1981 are proposed:- 

. 1. Raising the authorized capital of NABARD to Rs. 20,000 crore from Rs. 5,000 crore. 

2. The meaning of cooperative society is proposed to be enlarged to include multistate cooperative societies registered under any Central law or any other Central or State law relating to cooperative societies. 

3. Change of ownership to facilitate the transfer of the remaining share capital of NABARD from the Reserve Bank to the Central Government. 

4. Increasing the scope of operations of NABARD under short term funding purposes and other changes. 

The following benefits are projected by this amendment:- 

1. By increasing the authorized capital of NABARD to Rs 20,000 crore from Rs 5,000 crore, the ability of NABARD to mobilize resources from the market will be enhanced thereby new credit products, new credit linkages and new clients will be developed. 

2. The amendments allow NABARD to lend to new institutions, mainly Societies covered under multistate cooperative societies act and other central laws, producer organizations or such class of financial institutions which are approved by the Central Government. This is likely to benefit a larger segment of the financially excluded farmers in the country. 

3. The amendments allow combination of credit, creation of short term operations fund and swapping of debt of farmers. 

4. The decision of the Government to transfer the balance one percent shares to the Govt. of India from Reserve Bank of India (RBI) in NABARD shall be carried out, which will provide for increased public accountability, as the Government will acquire the equity held by RBI. 

5. NABARD will combine the post of Chairman and the post of Managing Director, into one, therefore Chairman and Managing Director, under the provisions of the NABARD Act relating to these two posts. This shall ensure a distinct line of command. 

Background 

NABARD was established on 12 July 1982 to provide sharp focus to agriculture credit and rural development. NABARD adopted, as its mission, the promotion of sustainable and equitable development of agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives.

Advance Estimates of National Income, 2012-13

The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has released the advance estimates of national income at constant (2004-05) and current prices, for the financial year 2012-13.

2.         These advance estimates are based on anticipated level of agricultural and industrial production, analysis of budget estimates of government expenditure and performance of key sectors like, railways, transport other than railways, communication, banking and insurance, available so far. The advance estimates at current prices are derived by estimating the implicit price deflators (IPDs) at sectoral level from the relevant price indices. The salient features of these estimates are detailed below:

I           ADVANCE ESTIMATES OF NATIONAL INCOME, 2012-13

Estimates at Constant (2004-05) Prices

Gross Domestic Product

3.                  Gross Domestic Product (GDP) at factor cost at constant (2004-05) prices in the year 2012-13 is likely to attain a level of Rs.55,03,476 crore, as against the First Revised Estimate of GDP for the year 2011-12 of Rs. 52,43,582 crore, released on 31^st January 2013. The growth in GDP during 2012-13 is estimated at 5.0 per cent as compared to the growth rate of 6.2 per cent in 2011-12.

4.                  The sectors which registered growth rate of over 5 percent are ‘Construction’, ‘trade, hotels, transport and communication`, `financing, insurance, real estate and business services`, and `community, social and personal services`. There may be slow growth in the sectors of ‘agriculture, forestry and fishing’ (1.8%), manufacturing (1.9%) and electricity, gas & water supply (4.9%). The growth in the mining and quarrying sector is estimated to be (0.4%).

Agriculture

5.         The ‘agriculture, forestry and fishing’ sector is likely to show a growth of 1.8 per cent in its GDP during 2012-13, as against the previous year’s growth rate of 3.6 per cent. According to the information furnished by the Department of Agriculture and Cooperation (DAC), which has been used in compiling the estimate of GDP from agriculture in 2012-13, production of foodgrains is expected to decline by 2.8 per cent as compared to growth of 5.2 per cent in the previous agriculture year. The production of cotton and sugarcane is also expected to decline by 4.0 per cent and 6.5 per cent, respectively, in 2012-13. Among the horticultural crops, production of fruits and vegetables is expected to increase by 3.5 per cent during the year 2012-13 as against 5.1 percent in the previous year.

Industry

6.         The manufacturing sector is likely to show a growth of 1.9 per cent in GDP during 2012-13. According to the latest estimates available on the Index of Industrial Production (IIP), the index of manufacturing and electricity registered growth rates of 1.0 per cent and 4.4 per cent, respectively during April-November, 2012-13, as compared to the growth rates of 4.2 per cent and 9.5 per cent in these sectors during April-November, 2011-12. The mining sector is likely to show a growth of 0.4 per cent in 2012-13 as against negative growth of 0.6 per cent during 2011-12. The construction sector is likely to show a growth rate of 5.9 per cent during 2012-13 as against growth of 5.6 per cent in the previous year. The key indicators of construction sector, namely, cement production and steel consumption have registered growth rates of 6.1 per cent and 3.9 per cent, respectively during April-December, 2012-13.

Services

7.         The estimated growth in GDP for the trade, hotels, transport and communication sectors during 2012-13 is placed at 5.2 per cent as against growth of 7.0 percent in the previous year. This is mainly on account of decline of 3.4per cent and 4.8 per cent respectively in passengers and cargo handled in civil aviation and decline of 3.1 per cent in cargo handled at major sea ports during April-November, 2012-13. There has been an increase of 4.3 per cent in stock of telephone connections as on November 2012. The sales of commercial vehicles witnessed an increase of 0.74 per cent per cent in April-December 2012. The sector, `financing, insurance, real estate and business services`, is expected to show a growth rate of 8.6 per cent during 2012-13, on account of 11.1 per cent growth in aggregate deposits and 15.2 per cent growth in bank credit as on December 2012 (against the respective growth rates of 17.2 per cent and 16.0 per cent in the corresponding period of previous year). The growth rate of `community, social and personal services` during 2012-13 is estimated to be 6.8 per cent.

National Income

8.         The net national income (NNI) at factor cost, also known as national income, at 2004-05 prices is likely to be Rs.47,64,819 crore during 2012-13, as against the previous year`s First Revised Estimate of Rs. 45,72,075 crore. In terms of growth rates, the national income registered a growth rate of 4.2 per cent in 2012-13 as against the previous year’s growth rate of 6.1 per cent.

Per Capita Income

9.         The per capita income in real terms (at 2004-05 prices) during 2012-13 is likely to attain a level of Rs.39,143 as compared to the First Revised Estimate for the year 2011-12 of Rs. 38,037. The growth rate in per capita income is estimated at 2.9 per cent during 2012-13, as against the previous year`s estimate of 4.7 per cent.

Estimates at Current Prices

Gross Domestic Product

10.       GDP at factor cost at current prices in the year 2012-13 is likely to attain a level of Rs. 94,61,979 crore, showing a growth rate of 13.3 per cent over the First Revised Estimate of GDP for the year 2011-12 of Rs. 83,53,495 crore.

National Income

11.       The NNI at factor cost at current prices is anticipated to be Rs. 83,68,571 crore during 2012-13, as compared to Rs. 73,99,934 crore during 2011-12, showing a rise of 13.1 per cent.

Per Capita Income

12.       The per capita income at current prices during 2012-13 is estimated to be Rs. 68,747 as compared to Rs. 61,564 during 2011-12, showing a rise of 11.7 per cent.

II         ESTIMATES OF EXPENDITURES ON GDP, 2012-13

13        Alongwith the Advance Estimates of GDP by economic activity, the CSO is also releasing the Advance Estimates of expenditures of the GDP at current and constant (2004-05) prices. These estimates have been compiled using the data on indicators available from the same sources as those used for compiling GDP estimates by economic activity, detailed data available on merchandise trade in respect of imports and exports, balance of payments, and monthly accounts of central government. As various components of expenditure on gross domestic product, namely, consumption expenditure and capital formation, are normally measured at market prices, the discussion in the following paragraphs is in terms of market prices only.

Private Final Consumption Expenditure

14.       Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs. 57,05,857 crore in 2012-13 as against Rs. 50,56,219 crore in 2011-12. At constant (2004-05) prices, the PFCE is estimated at Rs. 34, 72,980 crore in 2012-13 as against Rs. 33,34,900 crore in 2011-12. In terms of GDP at market prices, the rates of PFCE at current and constant (2004-05) prices during 2012-13 are estimated at 56.9 per cent and 59.7 per cent, respectively, as against the corresponding rates of 56.3 per cent and 59.2 per cent, respectively in 2011-12.

Government Final Consumption Expenditure

15.       Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs. 11,86,726 crore in 2012-13 as against Rs 10,42,677 crore in 2011-12. At constant (2004-05) prices, the GFCE is estimated at Rs. 6,60,630 crore in 2012-13 as against Rs. 6,34,559 crore in 2011-12. In terms of GDP at market prices, the rates of GFCE at current and constant (2004-05) prices during 2012-13 are estimated at 11.8 per cent and 11.4 per cent, respectively, as against the corresponding rates of 11.6 per cent and 11.3 per cent, respectively in 2011-12.

Gross Fixed Capital Formation

16.       Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs. 29,93,873 crore in 2012-13 as against Rs. 27,49,072 crore in 2011-12. At constant (2004-05) prices, the GFCF is estimated at Rs. 19,44,279 crore in 2012-13 as against Rs.18,97,309 crore in 2011-12. In terms of GDP at market prices, the rates of GFCF at current and constant (2004-05) prices during 2012-13 are estimated at 29.9 per cent and 33.4 per cent, respectively, as against the corresponding rates of 30.6 per cent and 33.7 per cent, respectively in 2011-12. The rates of Change in Stocks and Valuables at current prices during 2012-13 are estimated at 3.0 per cent and 2.4 per cent, respectively.

17.       Estimates of gross/net national product, gross/net domestic product and per capita income, alongwith GDP at factor cost by kind of economic activity and the Expenditures on GDP for the years 2010-11 and 2011-12 and 2012-13, at constant (2004-05) and current prices are given in Statements 1 to 6.

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RBI panel proposes curbs on import of gold

The working group of the central bank on issues related to gold imports and gold loan NBFCs has proposed to limit import of gold into India, which is putting pressure on India’s current account and threatening the country’s sovereign credit ratings. It has also stated that a combination of demand-reduction and supply-management steps and measures to increase monetization of idle stocks of gold need to be put in place. 

The recommendations, if implemented by the government, will make gold costly and enhance the level of disclosure in gold loans business. This could lead to a tougher business environment for gold loan NBFCs.

The group also suggested that under extreme conditions, the government may also think of putting limits on the volume and value of gold to be imported by banks, and imposing export obligation on bulk gold importers.

It’s not only import of the yellow metal, the RBI panel in its report also suggested to the government to take steps that would make it easier for the authorities to track gold buyers, like payment by cheques for purchases above a threshold limit, use of income tax PAN by NBFCs giving loans over Rs 5 lakh and also use of know-your-customer processes for the buyers.

Although the working group stated that gold loan NBFCs are serving social causes, but it suggested that there was no case for granting these NBFCs a status at par with banks, these entities need to be monitored cautiously and their overdependence on banks for funds should be reduced. The RBI group also recommended that India’s idle gold reserves, which is about 20,000 tonnes at present, should be use to set up a gold bank and this reserve could be put into productive use through exchange-traded funds (ETFs).

On the issue of setting up the gold bank, RBI suggested that it may be given “powers to import, export, trade, lend and borrow gold and deal in gold derivatives.” The panel also suggested new ways to channelize investors’ savings into financial assets backed by gold, rather than they directly buying the metal in physical form.

Amendments to Regional Rural Banks (RRBs) Act, 1976

The Union Cabinet today gave its approval to the proposed amendments in the Regional Rural Banks (RRBs) Act, 1976 to enhance authorized and issued capital to strengthen their capital base. The term of the non official directors appointed by the Central Government is proposed to be fixed not exceeding two years. 

The proposed amendments will ensure financial stability of RRBs which will enable them to play a greater role in financial inclusion and meet the credit requirements of rural areas and the Boards of RRBs will be strengthened. 

Background 

Regional Rural Banks (RRBs) were established under Regional Rural Banks Act, 1976 (the RRB Act) to create an alternative channel to the `cooperative credit structure and to ensure sufficient institutional credit for the rural and agriculture sector. RRBs are jointly owned by the Government of India, the concerned State government and sponsor banks, with the issued capital shared in the proportion of 50 percent, 15 percent and 35 percent, respectively. As per provisions of the Regional Rural Banks Act, 1976 the authorized capital of each RRB is Rs. 5 crore and the issued capital is a maximum Rs. 1 crore.