Thursday, August 22, 2013

Sex Ratio

The Sex Ratio in the country has shown an improvement. As per the Census, sex ratio has increased from 933 females per thousand males in 2001 to 943 females per thousand males in 2011. State/UT-wise details of sex ratio are annexed.
The Government has been exhorting the States and UTs to pay utmost attention for effective implementation of theprovisions of the Pre-Conception & Pre-Natal Diagnostic Technique (Prohibition of Sex Selection) Act, 1994. Recently, on 18.05.2013, the Union Health Minister requested all the Chief Ministers of States and Lt. Governors/ Administrators of UTs, to ensure effective implementation of the provisions of the Act. The Union Health Secretary has also urged the Chief Secretaries and Secretaries (Health & FW) of all States/ UTs, to establish mechanism for monitoring and to take deterrent follow up action for effective implementation of the PC & PNDT Act. In response to these initiatives, State/UT Governments while reaffirming commitment towards strict compliance of the provisions of the Act, have taken a number of initiatives in this direction.

Government has provided funds to the States & UTs for implementation of the Act. Setting up of PNDT cells to monitor implementation of the Act, is one of the activities for which funds are provided to the States/UTs. Details of funds allocated/released and utilized for PNDT activities during each of the last three years are as under:-

Rs. in Lakh
Financial year
Allocation
Utilisation
2010-11
11417.44*
733.98
2011-12
1411.20
597.58
2012-13
1984.97
1078.84

* Allocation includes Innovations/Public Private Partnership/Non-Governmental Organisation of PC & PNDT.

Government has adopted a multi-pronged strategy devising schemes, programmes and awareness generation/advocacy measures to build a positive environment for the girl child through gender sensitive policies, provisions and legislation.

The measures include the following:-

·   The Government has intensified effective implementation of the said Act and amended various provisions of the Rules relating to sealing, seizure and confiscation of unregistered machines and punishment against unregistered clinics. Regulation of use of portable ultrasound equipment only within the registered premises has been notified. Restriction on medical practitioners to conduct ultrasonography at maximum of two ultrasound facilities within a district has been placed. Registration fees have been enhanced. Rules have been amended to provide for advance intimation in change in employees, place, address or equipment.

·  The Central Supervisory Board (CSB) under the PNDT Act has been reconstituted and regular meetings are being held. The 21st meeting of the CSB has recently been held on 23.07.2013.

·  The Ministry of Communication and Information Technology has been requested to block sex selection advertisements on websites.

·  The National Inspection and Monitoring Committee (NIMC) has been reconstituted and inspections of ultrasound diagnostic facilities have been intensified. Inspections have been carried out in many States including Bihar, Chhattisgarh, Delhi, Haryana, Madhya Pradesh, Maharashtra, Odisha, Punjab, Uttarakhand, Rajasthan, Gujarat, Jharkhand, Uttar Pradesh, Himachal Pradesh and Karnataka.

·  The Government is rendering financial support to the States and UTs for operationalisation of PNDT Cells, Capacity Building, Orientation & Sensitisation Workshop, Information, Education and Communication campaigns and for strengthening structures for the implementation of the Act under the National Rural Health Mission(NRHM).

·   States have been advised to focus on Districts/Blocks/Villages with low Child Sex Ratio to ascertain the causes, plan appropriate behaviour change communication campaigns and effectively implement provisions of the PC & PNDT Act.

·  Religious leaders, women achievers etc. are also being involved in the campaign against skewed child sex ratio and discrimination of the girl child.
  

Annexure
State/UT-wise details of sex ratio
Sl. No.
State/UTs
2001
2011

India
933
943
1
Jammu & Kashmir
892
889
2
Himachal Pradesh
968
972
3
Punjab
876
895
4
Chandigarh
777
818
5
Uttarakhand
962
963
6
Haryana
861
879
7
Delhi
821
868
8
Rajasthan
921
928
9
Uttar Pradesh
898
912
10
Bihar
919
918
11
Sikkim
875
890
12
Arunachal Pradesh
893
938
13
Nagaland
900
931
14
Manipur
978
992
15
Mizoram
935
976
16
Tripura
948
960
17
Meghalaya
972
989
18
Assam
935
958
19
West Bengal
934
950
20
Jharkhand
941
949
21
Odisha
972
979
22
Chhattisgarh
989
991
23
Madhya Pradesh
919
931
24
Gujarat
920
919
25
Daman & Diu
710
618
26
Dadra & Nagar Haveli
812
774
27
Maharashtra
922
929
28
Andhra Pradesh
978
993
29
Karnataka
965
973
30
Goa
961
973
31
Lakshadweep
948
947
32
Kerala
1059
1084
33
Tamil Nadu
987
996
34
Puducherry
1001
1037
35
Andaman & Nicobar Islands
846
876













































Aadhar e-KYC : Fast, Secure & Cost Effective

The Unique Identification Authority of India, UIDAI has developed the e-KYC (Electronic – Know Your Customer) service, which promises to substantially improve customer services in the near future.  The new offering,  e-KYC allows an Aadhar number-holder to authorize UIDAI to release his personal details to any service provider to allow instant activation of services like bank account, mobile connection etc. 
Towards paperless transaction

Know Your Customer or KYC is a mandatory process that most financial institutions and mobile companies need to complete in regards to all their customers. Aadhar card is already a valid KYC instrument, still the KYC process takes much longer time and involves documentation.   The e-KYC service being offered by UIDAI will  enable to electronically verify identity and address proof of the residents, which will cut down time required on many things like getting a new mobile connection, opening a Bank account or a trading account etc.

“Not only will this service streamline the process of on-boarding new customers but it will also simplify the process of linking existing customer accounts to their respective Aadhaar numbers in an easy, yet secure manner. The eKYC service will extend the power and convenience of Aadhaar KYC to paperless transactions. Using the eKYC service, residents can authorise the UIDAI to release their KYC data to a service provider,” says UIDAI Chairperson Nandan Nilekani.

The authorization for release of personal data can either be done in person – through biometric authentication or it can be done online using OTP (One Time Password).  Upon successful authentication and consent of the resident, the UIDAI will provide the resident’s name, address, date of birth, gender, photograph, mobile number (if available), and email address (if available) to the service provider electronically.

As the service is paperless and fully electronic, document management can be eliminated. Also, the KYC data being consent based, it can only be provided upon authorisation by the resident through Aadhaar authentication, thus protecting resident’s privacy.

This process will eliminate the requirement of lengthy paperwork and facilitate quicker transactions. It is expected that the e-KYC will enhance customer convenience and greatly increase business efficiency across sectors. That apart, e-KYC  will also eliminate document forgery and reduces the risk of identity misuse.

Both end-points of the data transfer are secured through the use of encryption and digital signature as per the Information Technology Act, 2000 making e-KYC document legally equivalent to paper documents. In addition, the use of encryption and digital signature ensures that no unauthorized parties in the middle can tamper or steal the data. The Ministry of Finance, has already recognized e-KYC as a valid document for all financial services under the Prevention of Money Laundering (PML) Rules.

e-KYC is not only beneficial to consumers, but also to service providers because they do not have to store any kind of photo copies. Everything is centralized and stored digitally helping them save on paper costs. Since the entire data is machine readable, it is possible for the service provider to directly store it as the customer record in their database for purposes of service, audit, etc. without human intervention making the process low cost and error free. Additionally, e-KYC is instantaneous so service providers can start consumer service immediately, which will go a long way in enhancing customer satisfaction.

e-KYC impact on Aadhar enrolment
As per the latest figures put out by the UIDAI, 40.36 crore Aadhar cards have been generated and issued till the middle of August 2013. The progress has not been even across the country.  While Andhra Pradesh (6.74 crores) and Maharashtra (6.43 crores) lead in absolute numbers, the states of  Goa (88.7%) Delhi (87.5 %), Himachal Pradesh (86.4%)  Sikkim (85.9%) and  Kerala (81.94%) have achieved better coverage.
Though, the  process of issuing Aadhar cards began in September 2010, a large number of city dwellers are still fence sitters, not being able to see much of the perceived benefits accruing to them. The launch of e-KYC which promises to remove KYC hassles is expected to work as a motivator for large number of people to enrol for Aadhar in the near future. UIDAI Chairperson Nandan Nilekani expects to issue 60 crore Aadhar cards by 2014.  To facilitate issue of Aadhar cards, the UIDAI has announced setting up of permanent enrolment centres in various states.
Top 10 states by absolute numbers :
Rank
State
Population
(2011 Census)
AADHAARs Issued
 % of Population
INDIA
121,05,93,422
40,36,50,286
33.34%
1
Andhra Pradesh
8,46,65,533
6,74,56,581
79.67%
2
Maharashtra
11,23,72,972
6,43,15,705
57.23%
3
Madhya Pradesh
7,25,97,565
2,83,08,980
38.99%
4
Kerala
3,33,87,677
2,73,58,063
81.94%
5
Karnataka
6,11,30,704
2,68,96,649
44.00%
6
Rajasthan
6,86,21,012
2,62,89,295
38.31%
7
Tamil Nadu
7,21,38,958
2,52,25,569
34.97%
8
West Bengal
9,13,47,736
2,01,74,821
22.09%
9
Jharkhand
3,29,66,238
1,93,20,345
58.61%
10
Punjab
2,77,04,236
1,86,11,732
67.18%


Tuesday, August 13, 2013

Rajiv Gandhi Udyami Mitra Yojana

Rajiv Gandhi Udyami Mitra Yojana (RGUMY), launched in 2008, is aimed at providing financial assistance to the selected lead agencies i.e. Udyami Mitras for rendering assistance and handholding support to the potential first generation entrepreneurs. Till date 650 Udyami Mitras have been empanelled in 28 States and 3 Union Territories. The Udyami Mitras have so far registered 35154 beneficiaries for rendering handholding support. Through ‘UdyamiHelpline’ (a Toll free Call Centre for MSMEs on 1800-180-6763), support, guidance and assistance to first generation entrepreneurs as well as other existing entrepreneurs is also provided to guide them regarding various promotional schemes of the Government, procedural formalities required for setting up and running of the enterprise and help them in accessing Bank credit etc.

The Ministry of MSME does not provide any financial assistance to entrepreneurs under Rajiv Gandhi UdyamiMitra Yojana.  However, organizations empanelled as Udyami Mitra by the Ministry provide handholding support to first generation entrepreneurs and in return are paid handholding charges under the scheme.

Monday, August 12, 2013

Schemes for Handloom Weavers

 Up-gradation of handlooms is ongoing process and Integrated Handloom Development Scheme provides need based inputs to clusters of 300 – 500 handlooms and Groups of 10 –100 weavers by providing them financial assistance for new looms, dobbies, jacquards, accessories etc under basic input component. The scheme is applicable throughout the country, including rural areas. Further, financial assistance is also provided for up-gradation of looms and accessories etc. under Comprehensive Handloom Cluster Development Scheme. State-wise financial assistance released for up-gradation of handlooms, including State of Andhra Pradesh is given at Annexure-I.

         The Technology Up-gradation Fund Scheme (TUFS) implemented by the Ministry of Textiles facilitates the modernization and up-gradation of the textiles industry, including handloom by providing credit at reduced rates to the entrepreneurs both in the organized and the unorganized sector. Thrust areas of the scheme are modernization of spinning, weaving, processing, technical textiles and garmenting segments, which have great potential for employment generation as well as value addition and are not specific to any State/area.

         The Government of India is implementing following schemes for development of handlooms and welfare of weavers and providing need based interventions for holistic and sustainable development of the handloom sector and to improve the condition of the weavers:-

(i)                            Integrated Handloom Development Scheme (IHDS)  provides need based inputs to clusters of 300 – 500 handlooms, Groups of 10 – 100 weavers for making them self sustainable by providing them financial assistance for margin money, new looms, dobbies, jacquards, accessories, skill up-gradation, construction of worksheds etc. 
(ii)                          Marketing and Export Promotion Scheme (MEPS) provides platform to the weavers and their organizations to participate in the domestic as well as international trade events and sell their products directly to the buyers. 
(iii)            Handloom Weavers Comprehensive Welfare Scheme (HWCWS): This comprises of two separate sub-schemes viz. the Health Insurance Scheme (HIS) for providing Health Insurance to the Handloom weavers and Mahatma Gandhi BunkarBimaYojana (MGBBY) for providing Life Insurance Cover in case of natural/ accidental death, total/partial disability due to accident. 
(iv)            Mill Gate Price Scheme (MGPS): This scheme makes available all types of yarn at Mill Gate Price to the eligible handloom agencies and the transport and depot operating expenses are being borne by the Government of India. Further, to provide the subsidized yarn to handloom weavers in order to compete withpowerloom and mill sector, a new component of 10% price subsidy on cotton hank yarn and domestic silk yarn has been incorporated in the Mill Gate Price Scheme w.e.f. 6.1.2012.
(v)                          Diversified Handloom Development Scheme (DHDS): This scheme provides assistance for technological  and skill up-gradation of weavers for design and product development through 25 Weavers’ Service Centres and 05 Indian Institutes of Handloom Technology all over the country to improve the productivity and earnings of the handloom weavers.
(vi)            Revival Reform and Restructuring Package (RRR): In order to open the choked credit lines to enable access to fresh credit for handloom sector, GoI has approved RRR package for waiver of overdue loan as on 31/03/2010 for eligible apex and primary weaver cooperative societies and individual weavers.  The Government has also approved weaver credit card under institutional credit component,  providing margin money assistance @ Rs. 4200/- per weaver, 3% interest subvention for three years and credit guarantee for 3 years by Credit Guarantee Trust Fund for Micro, Small and Medium Enterprises.

         Under IHDS & MEPS, State-wise financial allocations are not made and funds are released to the State Governments/implementing agencies, based on the viable proposals submitted by them. State-wise funds released and utilized under IHDS & MEPS during the last three years is given at Annexure-II. While under MGPS, DHDS, HWCWS and RRR Package, the funds are released to the implementing agencies like National Handloom Development Corporation (NHDC), NABARD, ICICI Lombard, LIC etc. and not to the States.

         For effective implementation, the schemes are reviewed/monitored by the officers of the State Governments and Central Government through periodic reviews and field visits.

         In order to provide loans at concessional rate to handloom weavers,the Government of India has approved institutional credit componentunder IHDS on 18th December,2011 wherein the Government of India is providing margin money assistance @ Rs.4200/- per weaver; interest subvention @ 3% p.a. for 3 years from the date of the first disbursal and Credit Guarantee through Credit Guarantee Trust for Small Enterprises (CGTMSE).  Further, Finance Minister has announced loan to handloom sector at 6% interest rate in the budget of 2013-14.

         The Government of India has approved RRR package for waiver of overdue loan as on 31/03/2010 for eligible apex and primary weaver cooperative societies and individual weavers wherein 100% principal and 25% interest is borne by the GoI and remaining 75% interest is borne by the Banks. The state-wise details of number of handloom weavers and co-operatives benefitted under RRR package is given at Annexure-III.

         No such report of irregularities/misuse of funds has been received from the State Governments.

         The schemes implemented during 11th Plan have been evaluated through independent agencies and recommended for their continuation with modifications in XII Plan. These recommendations/observations have been incorporated in the schemes for  implementation in the 12th Plan. 

Monday, August 5, 2013

Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY)

An estimated 5 million Indian Nationals with ECR (Emigration Check Required) passports are working on temporary employment/contract visas in the Gulf Countries.

It is observed that a majority of the earnings periodically remitted by overseas Indian workers to their families in India are rarely accumulated as savings and often cause only a temporary improvement in the consumption expenditure of their families. As a result majority of overseas Indian workers face the risk of poverty when they return to India and when they are too old to work. Overseas Indian workers are largely excluded from formal social security benefits available to residents of ECR countries.

Overseas Indian workers are largely excluded from formal social security benefits available to residents of ECR countries.

Thus, to provide them social security, the Ministry has launched Mahatma Gandhi Pravasi Suraksha Yojana(MGPSY) in May 2012. The objective of MGPSY is to encourage and enable overseas Indian workers having Emigration Check Required (ECR) passports going to ECR countries, to (a) save for their return and resettlement and (b) save for their pension. They are also provided Life Insurance cover against natural death, during the period of coverage, without any additional payment by them.

Overseas Indian workers with ECR passports and aged between 18 and 50 years on an employment/contract visa are eligible to join the scheme.

The Ministry also contributes, for a period of five years, or till the return of workers to India, whichever is earlier, as under:

a) Rs.1,000 per subscriber who saves between Rs.1,000 and Rs.12,000 per annum in their National Pension Scheme(NPS) -Lite account;
b) An additional contribution of Rs.1,000 per annum for overseas Indian women workers who save between Rs.1,000 and Rs.12,000 per annum in National Pension Scheme(NPS)-Lite account;
c) An annual contribution of Rs. 900 per annum per subscriber who saves at least Rs. 4000 per annum towards Return and Resettlement fund;
d) Rs.100/- for life insurance cover of Rs.30,000 per year against natural death and Rs.75,000 against death by accident through the Janshree Bima Yojana of Life Insurance Corporation of India (LIC).

There is an integrated enrollment process for the subscribers who will be issued a unique MGPSY account number upon enrolment. On their return to India, the subscriber can withdraw the Return and Resettlement savings as a lump sum.

However, the subscriber would be able to continue savings for their old age in the NPS-Lite in line with the Swavalamban Scheme. Alternatively subscriber can withdraw pension corpus as per the guidelines prescribed by the Pension Fund Regulatory Development Authority (PFRDA).


What is ECR:

As per the Emigration Act, 1983, Emigration Check Required (ECR) categories of Indian passport holders, require to obtain "Emigration Clearance" from the office of Protector of Emigrants (POE), Ministry of Overseas Indian Affairs for going to following 18 countries.

United Arab Emirates (UAE), The Kingdom of Saudi Arabia (KSA), Qatar, Oman, Kuwait, Bahrain, Malaysia, Libya, Jordan, Yemen, Sudan, Brunei, Afghanistan, Indonesia, Syria, Lebanon, Thailand, Iraq (emigration banned). 

However , the Ministry of Overseas Indian Affairs (Emigration Policy Division) have allowed  ECR passport holders traveling abroad for purposes others than employment  to leave the country on production of valid passport, valid visa and return ticket at the immigration counters at international airports in India w.e.f. 1st October 2007.

Wednesday, June 26, 2013

Dramatic liberalization of India's foreign direct investment regime

A government panel on 19 June has recommended a dramatic liberalization of India's foreign direct investment regime, including raising the FDI limit to 74% in multi-brand retail and allowing complete foreign ownership of telecom and aviation companies. "We have given our recommendations to the finance minister. He has forwarded them to the Department of Industrial Policy & Promotion (DIPP)," department of economic affairs Secretary Arvind Mayaram, who headed the panel, told reporters on 19 June. He did not provide details of the report's contents. It has also batted for raising or doing away with FDI caps in a number of sectors, including non-scheduled air transport, ground handling at airports, satellites, private security agencies and Internet Service Providers (ISPs) to attract capital flows that are needed to finance the current account deficit and bolster the rupee. The DIPP, the administrative ministry in charge of FDI policy, will now have to implement the Mayaram Committee report. Key ministers, notably Finance Minister P Chidambaram and Commerce Minister Anand Sharma, are expected to meet in the first week of July to finalise the plan. The panel has suggested allowing foreign supermarkets to buy up to 74% in Indian retailers with prior government approval. The multi-brand retail sector was thrown open to foreign investors in September 2012 but has failed to see any investment so far. The panel has suggested 100% FDI in telecom and non-scheduled air transport and amending rules to allow complete ownership by foreign investors, including airlines, in scheduled carriers. FDI in telecom will need approval of the Foreign Investment Promotion Board (FIPB), a government panel. The committee has also favoured allowing 100% FDI in ISPs, private security agencies, satellite, ground handling operations, cable networks, direct-to-home services, mobile TV and teleports. It has also suggested lifting caps to 49% from 26% in a number of sectors and doing away with mandatory FIPB clearance in these industries. The government is actively discussing raising FDI in defence production to 49% and in telecom to 100%. 

Infrastructure debt fund (IDF)

India Infrastructure Finance Company Limited (IIFCL) has launched on 18 June, its first infrastructure debt fund (IDF) with targeted initial corpus of $1 billion. The company has launched the debt fund through the mutual fund route. After launching the new scheme, Finance Minister P Chidambaram said the fund would help mobilize long-term financing for infrastructure projects. Chidambaram said introduction of the new scheme by the IIFCL would "pave the way for setting-up of more such infra debt funds."Besides IIFCL, other investors in the debt fund include Canara Bank, Oriental Bank of Commerce, Corporation Bank and HUDCO. The new scheme will mainly undertake investment in debt securities or securitized debt instruments of infrastructure companies, infrastructure capital companies or infrastructure projects, special purpose vehicle (SPV), bank loans etc. with the investment objective of capital appreciation and trade on the stock exchange, according to a statement issued by the finance ministry. IIFCL chairman S.K. Goel said the IDF will complement commercial banks in providing the required long-term funding to infrastructure sector and help in addressing their asset liability mismatch. 

Monday, June 24, 2013

Mid Day Meal Scheme

The Mid Day Meal is the world’s largest school feeding programme reaching out to about 12 crore children in over 12.65 lakh schools/EGS centres across the country.
Mid Day Meal in schools has had a long history in India. In 1925, a Mid Day Meal Programme was introduced for disadvantaged children in Madras Municipal Corporation. By the mid 1980s three States viz. Gujarat, Kerala and Tamil Nadu and the UT of Pondicherry had universalized a cooked Mid Day Meal Programme with their own resources for children studying at the primary stage By 1990-91 the number of States implementing the mid day meal programme with their own resources on a universal or a large scale had increased to twelve states.
1. With a view to enhancing enrollment, retention and attendance and simultaneously improving nutritional levels among children, the National Programme of Nutritional Support to Primary Education (NP-NSPE) was launched as a Centrally Sponsored Scheme on 15th August 1995, initially in 2408 blocks in the country. By the year 1997-98 the NP-NSPE was introduced in all blocks of the country. It was further extended in 2002 to cover not only children in classes I -V of Government, Government aided and local body schools, but also children studying in EGS and AIE centres. Central Assistance under the scheme consisted of free supply of food grains @ 100 grams per child per school day, and subsidy for transportation of food grains up to a maximum of Rs 50 per quintal.
2. In September 2004 the scheme was revised to provide cooked mid day meal with 300 calories and 8-12 grams of protein to all children studying in classes I – V in Government and aided schools and EGS/ AIE centres. In addition to free supply of food grains, the revised scheme provided Central Assistance for (a) Cooking cost @ Re 1 per child per school day, (b) Transport subsidy was raised from the earlier maximum of Rs 50 per quintal to Rs. 100 per quintal for special category states, and Rs 75 per quintal for other states, (c) Management, monitoring and evaluation costs @ 2% of the cost of foodgrains, transport subsidy and cooking assistance, (d) Provision of mid day meal during summer vacation in drought affected areas.
3. In July 2006 the scheme was further revised to provide assistance for cooking cost at the rate of (a) Rs 1.80 per child/school day for States in the North Eastern Region, provided the NER States contribute Rs 0.20 per child/school day, and (b) Rs 1.50 per child/ school day for other States and UTs, provided that these States and UTs contribute Rs 0.50 per child/school day.
4. In October 2007, the scheme has been further revised to cover children in upper primary (classes VI to VIII) initially in 3479 Educationally Backwards Blocks (EBBs). Around 1.7 crore upper primary children were included by this expansion of the scheme. From 2008-09 i.e w.e.f 1st April, 2008, the programme covers all children studying in Government, Local Body and Government-aided primary and upper primary schools and the EGS/AIE centres including Madarsa and Maqtabs supported under SSA of all areas across the country. The calorific value of a mid-day meal at upper primary stage has been fixed at a minimum of 700 calories and 20 grams of protein by providing 150 grams of food grains (rice/wheat) per child/school day.
5.During the year 2009 the following changes have been made to improve the implementation of the scheme:-
a) Food norms have been revised to ensure balanced and nutritious diet to children of upper primary group by increasing the quantity of pulses from 25 to 30 grams, vegetables from 65 to 75 grams and by decreasing the quantity of oil and fat from 10 grams to 7.5 grams.
b) Cooking cost (excluding the labour and administrative charges) has been revised from Rs.1.68 to to Rs. 2.50 for primary and from Rs. 2.20 to Rs. 3.75 for upper primary children from 1.12.2009 to facilitate serving meal to eligible children in prescribed quantity and of good quality .The cooking cost for primary is Rs. 2.69 per child per day and Rs. 4.03 for upper primary children from 1.4.2010.The cooking cost will be revised by 7.5% from 1.4.2011.
c) The honorarium for cooks and helpers was paid from the labour and other administrative charges of Rs.0.40 per child per day provided under the cooking cost. In many cases the honorarium was so little that it became very difficult to engage manpower for cooking the meal. A Separate component for Payment of honorarium @ Rs.1000 per month per cook- cum-helper was introduced from 1.12.2009.Honorarium at the above prescribed rate is being paid to cook-cum-helper. Following norms for engagement of cook-cum-helper have been made:
(i) One cook- cum-helper for schools up to 25 students. (ii) Two cooks-cum-helpers for schools with 26 to 100 students . (iii) One additional cook-cum-helper for every addition of upto 100 students. More than 26 lakhs cook-cum-helper at present are engaged by the State/UTs during 2010-11 for preparation and serving of Mid Day Meal to Children in Elementary Classes.
d) A common unit cost of construction of kitchen shed @ Rs.60,000 for the whole country was impractical and also inadequate .Now the cost of construction of kitchen-cum-store will be determined on the basis of plinth area norm and State Schedule of Rates. The Department of School Education and Literacy vide letter No.1-1/2009-Desk(MDM) dated 31.12.2009 had prescribed 20 sq.mt. plinth area for schools having upto 100 children. For every additional upto 100 children additional 4 sq.mt plinth area will be added. States/UTs have the flexibility to modify the Slab of 100 children depending upon the local condition.
e) Due to difficult geographical terrain of the Special category States the transportation cost @ Rs.1.25 per quintal was not adequate to meet the actual cost of transportation of foodgrains from the FCI godowns to schools in these States. On the request of the North Eastern States the transportation assistance in the 11 Special Category States (Northern Eastern States, Himachal Pradesh, Jammu & Kashmir and Uttarakhand) have been made at par with the Public Distribution System (PDS) rates prevalent in these States with effect from 1.12.2009.
f) The existing system of payment of cost of foodgrains to FCI from the Government of India is prone to delays and risk. Decentralization of payment of cost of foodgrains to the FCI at the district level from 1.4.2010 will allow officers at State and National levels to focus on detailed monitoring of the Scheme.
8.41 cr Primary children and 3.36 cr Upper Primary children i.e a total of 11.77 cr children were estimated to be benefited from MDM Scheme during 2009-10. 11.04 Crore children were covered under MDM Scheme during 2009-10.
During 2010-11 11.36 Cr children i.e 7.97 Cr. children in primary and 3.39 Cr. children in upper primary are expected to be covered in 12.63 lakhs institutions .
Today, Mid day Meal scheme is serving primary and upper primary school children in entire country.

Sunday, June 23, 2013

Commodities Transaction Tax (CTT) on non-farm products

Commodities Transaction Tax (CTT) on non-farm products from July 1, 2013 As per an announcement made by the Central Board of Direct Taxes (CBDT), from July 1, 2013, the Commodities Transaction Tax (CTT) shall be levied on the derivative contracts of non-agricultural commodities which are transacted via recognized commodity bourses.

What is Commodities Transaction Tax (CTT):
Proposed in Finance Bill, 2013 for enhancing financial resources.
A tax which shall be levied on non-agricultural commodities futures contracts at the same rate as on equity futures that is at 0.01% of the price of the trade.
CTT would tax trading of non-farm commodities like gold, silver and non-ferrous metals such as copper and energy products like crude oil and natural gas in India.
CTT exempts 23 specified agricultural commodities which include wheat, turmeric, soya bean, red chilli, mustard seed, potato, pepper, cotton, cotton seed, coriander, copra, channa, castor seed, cardamom, barley and almond.
All the processed agricultural items such as guar gum, soya oil and sugar are subject to the CTT on future contracts.
Here both parties—buyer & seller of contract—will be taxed depending on the amount of contract size.
Similar to the Securities Transaction Tax (STT) levied on the purchase and sale of equities in the stock market.
So far, commodity transactions have been exempted from any levy.

What are the Advantages of levying CTT:
It will open up new resources for the augmentation of government finances.
CTT would generate revenues of around Rs.45 billion to government.
It is also aimed at bringing transparency in the commodity exchange market.

What could be the disadvantages of CTT:
CTT has been opposed by the experts and the PMEAC had also suggested against levying such a tax.
CTT will increase the transaction cost because traders already pay brokerage, deposit margin, brokerage, stamp duty and transaction charges.