Thursday, March 15, 2012

Highlights of Railway Budget 2012-13

Union Railway Minister Dinesh Trivedi presented the Railway Budget in Parliament on 14 March, 2012.

The highlights of Railway Budget 2012

- Passenger fares increased marginally. The increase will be by 2 paise per km for suburban and ordinary second class; 3 paise per km for mail/express second class; 5 paise per km for sleeper class; 10 paise per km for AC Chair Car, AC 3 tier and First Class; 15 paise per km for AC 2 tier and 30 paise per km for AC I.
- Minimum fare and platform tickets to cost Rs 5.
- 50 per cent concession in fare in AC-2, AC-3, Chair Car & Sleeper classes to patients suffering from 'Aplastic Anaemia' and 'Sickle Cell Anaemia'.
- Extending the facility of travel by Rajdhani and Shatabdi trains to Arjuna Awardees.
- Travel distance under 'Izzat Scheme' to increase from 100 kms to 150 kms.
- SMS on passenger mobile phone in case of e-ticket to be accepted as proof of valid reservation.
- Introduction of satellite based real time train information system (SIMRAN) to provide train running information to passengers through SMS, internet, etc.
- On board passenger displays indicating next halt station and expected arrival time to be introduced.
- Installation of 321 escalators at important stations of which 50 will be commissioned in 2012-13.
- Introduction of regional cuisine at affordable rates; launching of Book-a-meal scheme to provide multiple choice of meals through SMS or email.
- Introduction of coin/currency operated ticket vending machines.
- Upgradation of 929 stations as Adarsh Stations including 84 stations proposed in 2012-13; 490 stations have been completed so far.
- Specially designed coaches for differently-abled persons to be provided in each Mail/Express trains.
- Introduction of Rail Bandhu on-board magazines on Rajdhanis, Shatabdis and Duronto trains.
- Setting up of AC Executive lounges at important stations
- 75 new Express trains to be introduced.
- 21 new passenger services, 9 DEMU services and 8 MEMU services to be introduced.
- Run of 39 trains to be extended.
- Frequency of 23 trains to be increased.
- 75 additional services to run in Mumbai suburban; 44 new suburban services to be introduced in Kolkata area, 50 new services to be introduced in Kolkata Metro; 18 additional services in Chennai area.
- 725 km new lines, 700 km doubling, 800 km gauge conversion and 1,100 km electrification targeted in 2012-13.
- Rs 6,872 cr provided for new lines, Rs 3,393 cr for doubling, Rs 1,950 cr for gauge conversation, Rs 828 cr for electrification
- Highest ever plan outlay of Rs 60,100 cr
- Rae Bareli coach factory manufactured 10 coaches in 2011-12; phase-II of the factory would be commissioned in 2012-13.
- A wagon factory to be set up at Sitapali (Ganjam District of Odisha)
- A rail coach factory with the support of Government of Kerala to be set up at Palakkad; two additional new manufacturing units for coaches to be established in the Kutch area in Gujarat and at Kolar in Karnataka with active participation of the State Governments.
- Setting up of a factory at Shyamnagar in West Bengal to manufacture next generation technology propulsion system for use in high power electric locomotives.
- Creating Missions as recommended by Pitroda Committee to implement the modernization programme.
- Setting up of Railway Tariff Regulatory Authority to be considered.
- New Board Members for Safety/Research and PPP/Marketing to be inducted.
- Rail-Road Grade Separation Corporation to be set up to eliminate level crossings.
- Indian Railway Station Development Corporation to be set up to redevelop stations through PPP mode.
- Logistics Corporation to be set up for development & management of existing railway goods sheds and multi-modal logistics parks.
- National High Speed Rail Authority to be set-up.
- Pre-feasibility studies on six high speed corridors already completed; study on Delhi-Jaipur-Ajmer-Jodhpur to be taken up in 2012-13.
- Introduction of a ‘Green Train’ to run through the pristine forests of North Bengal.
- Setting up of 200 remote railway stations as ‘green energy stations’ powered entirely by solar energy.
- Providing solar lighting system at 1,000 manned level crossing gates.
- 2,500 coaches to be equipped with bio toilets.
- Setting up of 72 MW capacity windmill plants in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and West Bengal.
- Installation of Integrated Security System at all 202 identified stations to be completed in 2012-13.
- Escorting of trains by RPF/GRP extended to 3,500 trains.
- Integration of RPF helpline with the All India Passenger Helpline.
- Setting up of a Railway Safety Authority as a statutory regulatory body as recommended by Kakodkar Committee
- Three 'Safety Villages' to be set up at Bengaluru, Kharagpur and Lucknow for skill development for disaster management.
- Over one lakh persons to be recruited in 2012-13 – backlog of SC/ST/OBC and other categories to be wiped off.
- Introduction of a wellness programme for railway staff at their work places.
- Ensuring proper rest for skilled and technical staff including the running crew.
- Institution of 'Rail Khel Ratna' Award for 10 rail sports-persons every year.
- New coaching terminal at Naihati, the birth place of Rishi Bankim Chandra Chattopadhyay commemorating him on 175th Birth Anniversary.
- Project to connect Agartala with Akhaura in Bangladesh to be taken up in 2012-13.
- Freight loading of 1,025 MT targeted; 55 MT more than 2011-12
- Passenger growth targeted at 5.4 per cent.

List of New Trains Introduced in Rail Budget 2012-13

As part of the Rail Budget 2012-13, Union Railway Minister Dinesh Trivedi announced 75 new express trains, 21 new Passenger Services, 9 DEMU and 8 MEMU services.

Moreover run of 39 trains will be extended, besides an increase in frequency of 23 trains.

List of New Express Trains
1. Kamakhya-Lokmanya Tilak (T) AC Express (Weekly) via Katihar, Mughalsarai, Itarsi
2. Secunderabad-Shalimar AC Express (Weekly) via Vijayawada
3. Bandra (T)-Bhuj AC Express (Tri-Weekly)
4. Delhi Sarai Rohilla-Udhampur AC Express (Tri-Weekly) via Ambala, Jalandhar
5. Coimbatore-Bikaner AC Express (Weekly) via,Roha,Vasai Road,Ahmedabad,Jodhpur
6. Kakinada-Secunderabad AC Express (Tri-weekly)
7. Yesvantpur-Kochuveli AC Express ( Weekly)
8. Chennai-Bangalore AC Double-decker Express (Daily)
9. Habibganj-Indore AC Double-decker Express (Daily)
10. Howrah-New Jalpaiguri Shatabdi Express (6 days a week) via Malda Town
11. Kamakhya-Tezpur Intercity Express (Daily)
12. Tiruchchirappalli-Tirunelveli Intercity Express (Daily) via Madurai,Virudunagar
13. Jabalpur-Singrauli Intercity Express (Daily) via New Katni Jn.
14. Bidar-Secunderabad Intercity Express (6 days a week)
15. Kanpur-Allahabad Intercity Express (Daily)

16. Chhapra-Manduadih Intercity Express (Daily) via Phephna, Rasra, Mau, Aunrihar
17. Ranchi-Dumka Intercity Express (Daily) via Deoghar
18. Barbil-Chakradharpur Intercity Express (Daily) via Dongoaposi, Jhinkpani
19. Secunderabad-Belampalli Intercity Express(Daily) via Kazipet
20. New Jalpaiguri – New Cooch Behar Intercity Express (5 days a week)
21. Ahmedabad-Ajmer Intercity Express (Daily)
22. Dadar (T)- Tirunelveli Express (Weekly) via Roha, Coimbatore,Erode
23. Visakhapatnam-Chennai Express (Weekly)
24. Visakhapatnam-Sai Nagar Shirdi Express (Weekly) via Vijayawada,Manmad
25. Indore-Yesvantpur Express (Weekly) via Itarsi,Narkher,Amravati,Akola,Kacheguda
26. Ajmer-Haridwar Express (Tri-weekly) via Delhi
27. Amravati-Pune Express (Bi-weekly) via Akola, Purna and Latur
28. Kacheguda-Madurai Express (Weekly) via Dharmavaram,Pakala,Jolarpettai
29. Bikaner-Puri Express (Weekly) via Jaipur,Kota,Katni Murwara, Jharsuguda, Sambalpur
30. Secunderabad-Darbhanga Express (Bi-weekly) via Ballarshah, Jharsuguda, Rourkela, Ranchi, Jhajha
31. Bilaspur-Patna Express (Weekly) via Asansol, Jhajha
32. Howrah-Raxual Express (Bi-weekly) via Asansol, Jhajha, Barauni
33. Bhubaneswar-Bhawanipatna Link Express (Daily) via Vizianagaram
34. Puri-Yesvantpur Garib Rath Express (Weekly) via Visakhapatnam, Guntur
35. Sai Nagar Shirdi-Pandharpur Express (Tri-weekly) via Kurduwadi
36. Bhubaneswar-Tirupati Express (Weekly) via Visakhapatnam,Gudur
37. Visakhapatnam-Lokmanya Tilak(T) Express (Weekly) via Titlagarh,Raipur
38. Howrah-Lalkuan Express (Weekly) via Mughalsarai,Varanasi,Lucknow
39. Kolkata-Jaynagar Express (Weekly) via Asansol,Jhajha,Barauni
40. Dibrugarh-Kolkata Express (Weekly)
41. Firozpur-Sriganganagar Express (Daily) via Fazilka,Abohar
42. Jaipur-Secunderabad Express (Weekly) via Nagda, Bhopal, Narkher, Amravati, Akola
43. Okha-Jaipur Express (Weekly) via Palanpur,Ajmer
44. Adilabad-Hazur Sahib Nanded Express (Daily) via Mudkhed
45. Shalimar-Chennai Express (Weekly)
46. Mysore-Sai Nagar Shirdi Express (Weekly) via Bangalore,Dharmavaram,Bellary
47. Valsad-Jodhpur Express (Weekly) via Palanpur,Marwar
48. Porbander-Secunderabad Express (Weekly) via Viramgam,Vasai Road
49. Bandra (T)-Delhi Sarai Rohilla Express (Weekly) via Palanpur, Phulera
50. Hapa-Madgaon Express (Weekly) via Vasai Road,Roha
51. Bikaner-Bandra (T) Express (Weekly) via Jodhpur,Marwar,Ahmedabad
52. Ahmedabad-Gorakhpur Express (Weekly) via Palanpur,Jaipur,Mathura,Farrukhabad, Kanpur
53. Durg-Jagdalpur Express (Tri-Weekly) via Titlagarh
54. Mannargudi – Tirupati Express (Tri-Weekly) viaThiruvarur,Villupuram,Katpadi
55. Gandhidham-Bandra (T) Express (Weekly) via Morbi
56. Kota-Hanumangarh Express (Daily) via Jaipur,Degana,Bikaner
57. Jhansi-Mumbai Express (Weekly) via Gwalior, Maksi, Nagda
58. Secunderabad-Nagpur Express (Triweekly) via Kazipet
59. Kanpur-Amritsar Express (Weekly) via Farrukhabad, Bareilly
60. Chappra-Lucknow Express (Tri-Weekly) via Masrakh,Thawe,Padrauna
61. Karimnagar-Tirupati Express (Weekly) via Pedapalli
62. Anandvihar-Haldia Express(Weekly) via Mughalsarai, Gomoh, Purulia
63. Barrackpore-Azamgarh Express (Weekly) via Jhajha, Ballia, Mau
64. Indore-Rewa Express ( Tri-weekly) via Bina
65. Running of independent train between Jabalpur-Hazrat Nizamuddin by delinking from 12405/12406 Bhusawal- Hazrat Nizamuddin and 12409/12410 Raigarh-Nizamuddin Gondwana Express
66. Darbhanga-Ajmer Express (Weekly) via Raxaul, Sitapur, Bareilly, Kasganj, Mathura
67. Solapur-Yesvantpur Express (Tri-weekly) via Gulbarga
68. Chennai-Puri Express (Weekly)
69. Hyderabad-Ajmer Express (Weekly)via Manmad, Itarsi, Ratlam
70. Asansol-Chennai Express (Weekly) via Purulia, Sambalpur,Vizianagaram
71. Shalimar-Bhuj Express (Weekly) via Bilaspur, Katni, Bhopal
72. Amritsar- Hazur Sahib Nanded Express (Weekly)
73. Santragachi-Ajmer Express (Weekly) via Kharagpur, Chandil, Barkakana, Katni, Kota
74. Malda Town-Surat Express ( Weekly) via Rampur Hat, Asansol, Nagpur
75. Dwarka-Somnath Express (Daily)

Passenger Trains
1. Koderma-Nawadih Passenger (6 Days)
2. Sriganganagar-Suratgarh Passenger (Daily)
3. Yerraguntla-Nosam/Nanganapalli Passenger (Daily)
4. Villupuram-Katpadi Passenger (Daily)
5. Gunupur-Palasa (Via Parlakhemundi) Passenger (Daily)
6. Ajmer-Pushkar Passenger (5 Days)
7. Kota-Jhalawar City Passenger (Daily)
8. Bareilly-Kasganj Passenger (Daily)
9. Anandnagar-Barahani Passenger (Daily)
10. Rangiya-Tezpur Passenger (Daily)
11. Mysore-Shravan Belgola (Daily)
12. Jodhpur-Bilara Passenger (Daily)
13. Villupuram-Mayiladuthurai Passenger (Daily)
14. Rohtak-Panipat Passenger (Daily)
15. Miraj-Kurudwadi Passenger (Daily)
16. Phulera-Rewari Passenger (Daily)
17. Mysore-Chamarajanagar Passenger (Daily)
18. Gorakhpur-Siwan Passenger (Daily) via Kaptanganj,Thawe
19. Running of independent Passenger trains between Rewa-Bilaspur & Rewa-Chirmiri by delinking from 51751/51752 Rewa-Bilaspur Passenger &51753/51754 Rewa-Chirmiri Passenger
20. Mysore-Birur Passenger via Arsikere (Daily)
21. Jhansi-Tikamgarh Passenger via Lalitpur

MEMU
1. Dahod-Anand
2. Anand-Gandhinagar
3. Bina-Bhopal MEMU service in lieu of conventional services.
4. Palakkad -Coimbatore-Erode
5. Ernakulam – Thrissur
6. Adra-Asansol
7. Adra-Bishnupur via Bankura
8. Sealdah-Lalgola

DEMU
1. Baripada-Bangriposi (Daily)
2. Masagram-Matnashibpur (Daily)
3. Mannargudi-Trichy-Manamadurai (Daily)
4. Hoshiarpur-Firozpur (Daily)
5. Siliguri-Changrabandha (Daily)
6. Pratapnagar- Chota Udepur (Daily)
7. New Jalpaiguri–Bamanhat DEMU service in lieu of conventional services.
8. Delhi Sarai Rohilla – Farukhnagar (6 days a week)
9. Katwa – Azimganj (Daily)

Extension of Trains
1. 12037/12038 New Delhi-Ludhiana Shatabdi Express on 2 days to Moga
2. 12537/12538 Manduadih-Bapudham Motihari Express to Muzaffarpur
3. 19051/19052 Valsad-Sonpur Express to Muzaffarpur
4. 18417/18418 Bhubaneswar-Jharsuguda Rajya Rani Express to Rourkela
5. 12945/12946 Surat-Varanasi Express to Chhapra
6. 13237/13238/13239/13240 Patna-Mathura Express to Kota
7. 15013/15014 Kathgodam-Delhi Sarai Rohilla Express to Jodhpur
8. 12991/12992 Udaipur-Ajmer Express to Jaipur
9. 16779/16780 Madurai-Tirupati Express to Rameswaram
10. 22609/22610 Palakkad-Mangalore Express to Coimbatore
11. 16227/16228 Bangalore-Shimoga Express to Talguppa
12. 19781/19782/19771/19772 Jaipur-Amritsar Express to Ajmer
13. 18005/18006 Howrah-Koraput Express to Jagdalpur
14. 18207/18208 Durg-Jaipur Express to Ajmer
15. 13155/13156 Kolkata-Darbhanga Express to Sitamarhi
16. 19605/19606 Kolkata-Ajmer Express to Ahmedabad (via Abu Road)
17. 12687/12688 Dehradun-Chennai Express to Madurai (via Erode)
18. 11017/11018 Dadar-Yesvantpur Express to Puducherry (3 days) via Jolarpettai-Katpadi-Villupuram & to Tirunelveli (3 days) via Dharmapuri-Erode
19. 14553/14554 Delhi-Una Himachal Express to Amb Andaura
20. 12941/12942 Ahmedabad - Asansol Express to Bhavnagar
21. 16649/16650 Mangalore-Thiruvananthapuram Express to Nagercoil
22. 53139/53140 Kolkata-Chittaranjan Passenger to Deoghar
23. 58207/58208 Raipur-Kesinga Passenger to Bhawanipatna
24. 54033/54032 Delhi-Jind Passenger to Narwana
25. 51973/51974 Mathura-Bandikui Passenger to Jaipur
26. 55713/55714 New Jalpaiguri-Bongaigaon Passenger to Tezpur
27. 54043/54044 Jind-Sirsa Passenger to Hisar
28. 54809/54810 Rewari-Degana Passenger to Jodhpur
29. 57502/57503 Bodhan-Nizamabad Passenger to Kamareddi
30. 56011/56012 Arakkonam-Nandalur Passenger to Cuddapah
31. 59117/59122 Pratapnagar-Bodeli Passenger to Chota Udepur
32. 56714/56711 Tiruchchirapalli-Nagore Passenger to Karaikal
33. 54581/54582 Nangal Dam-Una Himachal Passenger to Amb Andaura
34. 66532 Bangalore – Bangarapet Passenger to Marikuppam
35. 66533 Bangarpet –Krishnarajapuram Passenger to Marikuppam.
36. 66602/66603 Coimbatore-Erode MEMU to Salem
37. 78816/78815 Dallirajhara-Durg DEMU to Raipur
38. 74001/74002 Delhi-Muzaffarnagar DEMU to Saharanpur
39. 76818/76813 Velankanni-Nagore DEMU to Karaikal
40. 13243/13244 Patna-Dehri On Son Express to Bhabua Road

Increase in Frequency
1. 15903/15904 Dibrugarh-Chandigarh Express 1 to 2 days
2. 12731/12732 Secunderabad-Tirupati Express 2 to 4 days
3. 12069/12070 Raigarh-Gondia Janshatabdi Express 4 to 6 days
4. 17003/17004 Hyderabad-Kolhapur Express 2 to 7 days
5. 22451/22452 Chandigarh-Bandra(T) Express 1 to 2 days
6. 16779/16780 Madurai-Tirupati Express 2 to 3 days
7. 12685/12686 Chennai-Mangalore Express 6 to 7 days
8. 16535/16536 Yesvantpur-Solapur Express 3 to 7 days
9. 12187/12188 Jabalpur-Mumbai (CST) Express 2 to 3 days
10. 14009/14010/14019/14020 Chhindwara-Delhi Sarai Rohilla Express 4 to 7 days
11. 16315/16316 Bangalore-Kochuveli Express 3 days to daily
12. 12641/12642 Nizamuddin Kanniyakumari Express 1 to 2 days
13. 22603/22604 Kharagpur-Villupuram Express from 1 to 2 days
14. 12453/12454 New Delhi-Ranchi Rajdhani Express from 1 to 2 days.
15. 12457/12458 Delhi Sarai Rohilla-Bikaner Superfast Express from 3 to 7 days.
16. 56231/56232 Mysore-Bangalore Passenger 6 to 7 days
17. 56237/56238 Mysore-Bangalore Passenger 6 to 7 days
18. 56223/56224 Bangalore-Arsikere Passenger 6 to 7 days
19. 56523/56524 Bangalore-Hindupur Passenger 6 to 7 days
20. 75705/75706 New Jalpaiguri-Aluabari-Siliguri DEMU from 6 to 7 days.
21. 75707/75708 Radhikapur-New Jalpaiguri DEMU from 6 to 7 days.
22. 75709/75710 Balurghat-New Jalpaiguri DEMU from 6 to 7 days.
23. 12485/12486 Shri Ganganagar-Hazur Sahib Nanded Express from 1 to 3 days.

Monday, March 12, 2012

CURRENT ECONOMY MCQs

1.    Cabinet Committee for Economic Affairs approved the National Dairy Development Board’s ambitious National Dairy Plan for the 12th Five-Year Plan to be initiated in 2012. Which of the following facts with regard to the statement is not true?
2.    The project is aimed at boosting milk production using scientific breeding and feeding programmes covering about 2.7 million milch animals in 40000 villages
3.    According to  the National Dairy Development Board, the demand for milk is likely to be about 150 million tonne by 2016-17 and 200-210 million tonne by 2021-22. India was the third largest milk producing nation in 2010-11 with a production of 100.2 million tonne.
4.    Cooperatives currently procure about 16% of the national marketable milk surplus covering around 21% of the country’s villages and 18% of rural milk producing households
5.    The cooperative sector is needed to achieve a procurement share of at least 20% of the marketable milk surplus by 2016-17 so as to retain an overall 50% share of the marketable surplus handled by the organised sector
a.    1 & 3
b.    Only 3
c.    Only 2
d.    3 & 4
Answer: (c)

2. Reserve Bank of India (RBI) on13 February 2012 changed the bank rate, a medium-term signal rate after nine years with the objective to realign it with the marginal standing facility (MSF) rate as a one-time technical adjustment to link it with the main policy repo rate. What does the changed bank rate stand stand at?
a.    9.5%
b.    8.3%
c.    10.1%
d.    8%
Answer: (a)
3. As per the first nationwide retail inflation data released by the Centre of Statistical Office on 21 February 2012, inflation based on the all India Consumer Price Index stood at what per cent in January 2012?
a.    6.6%
b.    7.65
c.    8.32%
d.    5.50%
Answer: (b)
4. The Prime Minister's Economic Advisory Panel (PMEAC) on 22 February 2012 projected 7.5 - 8 per cent growth rate for the fiscal 2012-13. Which of the following facts are true with respect to the above statement?
1.    The economy recorded a growth rate of 8.4 per cent in 2010-11, which according to the CSO estimates is expected to moderate to 6.7 per cent in the current fiscal 2011-12
2.    Inflation was projected to moderate to 6.5% by March 2012 and 5-6 per cent in 2012-13.
3.    The manufacturing sector was projected to grow by 4.8 percent while construction segment is expected to expand by 5.3 percent.
4.    Projected Gross Domestic Product (GDP) growth for 2012 is substantially down from the budgetary target of around nine percent, and 8.4 percent expansion registered in 201
a.    Only 4
b.    Only 1
c.    Only 2
d.    1, 2 & 4
Answer: (d)

5.    Reserve Bank of India (RBI) panel on priority sector lending on 21 February 2012 proposed increment in the target (priority sector) for foreign banks to what per cent of net bank credit from the current level of 32 per cent with sub-targets of 15 per cent for exports and 15 per cent for the MSE sector?
a.    53%
b.    40%
c.    46%
d.    39%
Answer: (b)

 6. Consider the following statements and using the code given below identify the personality with whom these statements are associated
1.    He was the founder of Max Telecom
2.    He is the founder and Chairman of Max India
3.    He has been appointed the Non-Executive Chairman of Vodafone India
4.    He is a veteran of Telecom Industry
(a).    Deepak Parekh
(b).    Sunil Bharati Mittal
(c).    KP Singh
(d).    Analjeet Singh
Answer: (d)
 

7. Which of the following Indian Telecom company on 16 February 2012     got the RBI nod for FCCB redemption?
(a).    Reliance Telecom
(b).    Uninor
(c).    Airtel
(d).    Vodafone
Answer: (a) 
8. Cognizant which on 13 February 2012 inked a 5-year deal with Future Group is a
(a).    Logistic Company
(b).    Aviation Company
(c).    Online Retail Company
(d).    Technology Solution Company
Answer: (d)
 
9. Kintetsu World Express of Japan and Gati on 13 February 2012 entered into a Joint Venture  of which of the following sector?
(a).    Electronic Equipments
(b).    Supply Chain
(c).    Single Brand Retail
(d).    Technology Solution
Answer: (b)

10. Legrand, the French electronic and digital equipments company on 9 February 2012 acquired the UPS business of which of the following Indian brand?
(a).    Luminous
(b).    Onida
(c).    Numeric Power
(d).    Invertabular
Answer: (c)

Saturday, March 10, 2012

India home to 4 p.c. of world’s billionaires: Forbes

India is home to over four per cent of the world’s billionaires, including the likes of Ambani brothers, Azim Premji and N R Narayan Murthy alongside Warren Buffet and Bill Gates in Forbes magazine’s annual list of the world’s richest people.
Forbes’s list of 1,226 billionaires is topped by Mexico’s 72-year-old telecom czar Carlos Slim, boasting of a networth of $ 69 billion.
Mr. Slim retained his title as the world’s richest man for the third year in a row. In the second spot is Microsoft founder Gates with a $ 61 billion networth followed by American investment giant and philanthropist Buffet whose networth is $ 44 billion.
Forbes said this year’s 1,226 billionaires are a record high, up one per cent from last year’s total. The numbers are up significantly from the 140 billionaires who had made the cut when the list was first released 25 years ago.
Between them, this year’s billionaires are worth a record $ 4.6 trillion and have an average net worth of $ 3.7 billion.
The list has 48 billionaires from India as well as nine of Indian-origin living in countries like Indonesia, Ireland, Thailand, UK and the US, taking the total number of billionaires hailing from India to 57. India’s 48 billionaires have a total networth of $ 194.6 billion.
Among India’s billionaires, the richest is Reliance Industries Chairman Mukesh Ambani with a networth of $ 22.3 billion. The 54-year-old is ranked 19 in the global rich list.
“Mr. Mukesh Ambani is the world’s richest Indian, despite losing $ 4.7 billion in the past year,” Forbes said.
The publication added that a spat between Ambani’s oil and gas conglomerate Reliance and India’s Oil Ministry over declining output at KG-D6, India’s largest offshore gas field, has dragged down the market cap of the country’s most valuable company.
ArcelorMittal Chairman Lakshmi Mittal comes second with a $ 20.7 billion networth. Forbes said Mr. Mittal lost $ 10.4 billion in the past year, more than anyone else in the world and dropped out of the top 10 rankings for the first time since 2004.
Mr. Mittal had ranked sixth in last year’s list when his networth was $ 31.1 billion. Shares of ArcelorMittal, the world’s largest steelmaker, tanked due to surging costs and tepid demand in Europe, Forbes said.
Wipro boss Azim Premji is the third richest Indian in the list. With a networth of $ 15.9 billion, 66-year-old Mr. Premji is ranked 41 on the Forbes list.
The list has only two women billionaires from India, both matriarchs of big corporate houses. Jindal group’s Savitri Jindal is ranked 80 in the rich list with a networth of $ 10.9 billion. Chair of the media group Bennett Coleman Indu Jain, 75, is ranked 578th in the Forbes list with a networth of $ 2.2 billion.
With an $ 8.1 billion networth, Bharti Entreprises chairman Sunil Mittal is ranked 113. Reliance Anil Dhirubhai Ambani Group chairman Anil Ambani comes in at the 118th position in the list, his networth of $ 7.8 billion, only about a third of that of his wealthier elder brother.
“Despite patch up with brother Mukesh that included a much photographed reunion in their late father’s hometown, Mr. Anil Ambani continues on a losing streak, down one billion dollars in past year and down $ 34.2 billion from his 2008 peak,” Forbes said.
Other billionaires from India include real estate major DLF chief K P Singh ($ 6.4 billion), IT company HCL’s Shiv Nadar ($ five billion), healthcare tycoons Malvinder and Shivinder Singh ($ 3.5 billion), Godrej group chairman Adi Godrej ($ 2.4 billion), Chairman of the Bajaj group conglomerate Rahul Bajaj ($ 1.8 billion) and Infosys co-founder N R Narayan Murthy and his family ($ 1.7 billion).
With a networth of $ 1.4 billion, former Infosys chief executive Nandan Nilekani, pharma tycoons Ajay Piramal and K Anji Reddy and head of the Avantha group Gautum Thapar are tied for the 913rd rank. Investment bigwig Rakesh Jhunjhunwala occupies the 1,075th rank with $ 1.1 billion of networth. Tied for the 1,153th rank is liqour baron Vijay Mallya and Spice group chief Bhupinder Kumar Modi with networth of a billion dollars each.
Also in the list is construction tycoon Pallonji Mistry, an Irish citizen, who with a networth of $ 9.7 billion is ranked 96th. Mistry’s younger son Cyrus has been anointed successor to Tata group Chief Ratan Tata when he retires in December. Incidentally, like last year, Tata is not on the rich list this year.
Among the Indians, who are based outside their native country and have been named in the Forbes list, is venture capitalist Vinod Khosla, whom Forbes calls the “rare Silicon Valley venture capitalist able to generate profits from a clean tech portfolio.”
The IIT and Stanford University alumnus has a networth of $ 1.3 billion and is ranked 960. California-based Kavitark .
“Ram” Shriram, the founding board member of Google and one of the first investors in Google, comes in at rank 804. A trustee at Stanford University, Mr. Shriram’s networth is $ 1.6 billion.
India-born, Indonesian citizen Sri Prakash Lohia and his brother Thai resident Aloke Lohia are ranked 634 and 683 respectively in the list. They are two of three brothers whose fortune spans India, Thailand and Indonesia through the Indorama group of companies involved in textiles, polyester and plastics. Between them, the networth of the two brothers is $ four billion.
Software guru Romesh Wadhwani ranks 634 in the list with a networth of $ two billion. Based in California, the IIT Mumbai alumnus heads Symphony Technology Group which is focused on building software and services companies.
This year there were 128 new additions to the Forbes billionaire list, while 117 dropped off. The US retained its position as the global epicenter of wealth, boasting of being home to 425 billionaires, including Oracle’s Larry Elison who had a networth of $ 36 billion.
Among the American billionaires are New York Mayor Michael Bloomberg ($ 22 billion), Google’s founders Sergey Brin and Larry page ($ 18.7 billion), Facebook founder Mark Zuckerberg ($ 17.5 billion), News Corp chief Rupert Murdoch ($ 8.3 billion) and fashion czar Ralph Lauren ($ 7.5 billion).

Friday, March 9, 2012

DTAAs : to curb black money

Basically DTAAs are those pacts that seek to eliminate double taxation of income or gains arising in one country and paid to residents or companies of another. In other words, the treaty is devised to ensure that the same income is not taxed twice. In a bid to curb the growing menace of black money, the Government of India has written, under revised tax treaties, some countries to freeze the assets of Indians that have not been declared in India and repatriate the money. It is important to note that India has renegotiated Double Taxation Avoidance Agreements (DTAAs) with 29 out of the 79 countries with which it has such agreements, including the US, Mozambique, Tanzania, Ethiopia, Colombia and Norway. Further, India has also involved into the process of revising DTAAs with Switzerland and Mauritius as well.

Depreciation of rupee : Discouraging and unwarranted

Off late there has been a remarkable rise in rupee value against dollar currency. In the month of August, 2011, rupee value against dollar was 44.5-45.0 range but in the month of September, 2011 the rupee value has hovered around the range of 49.0-50.0 range.  It is expected to rise further which would result in weakening the rupee value against the dollar currency. This kind of increase would have the drastic impact on the macro economy of the country like heavy raise in the import cost where countries like India heavily depends on the importing on Oil and other crucial raw materials needs for the industries. Rupee depreciation means that rupee has become less valuable with respect to dollar. If the rupee moves upward from 30 per dollar to 40 per dollar then rupee is said to depreciate. It means that rupee is now cheaper than what it used to be earlier, so if the dollar was Rs 30 and now it reached 40.
'J' curve is used to represents the theory stating that a country's trade deficit will worsen initially after the depreciation of its currency because higher prices on foreign imports will be greater than the reduced volume of imports. The effects of the change in the price of exports compared to imports will eventually induce an expansion of exports and a cut in imports-which, in turn, will improve the balance of payments.
Implications of Rupee Depreciation: The depreciation of a currency has several repercussions, which could have mixed effects on the economy. The popular 'J' curve leads us to believe that although initially the costs of such depreciation may outweigh the benefits, in the long run the country tends to be much better off. Let us consider the sectors of the economy which will be affected by the depreciation of rupee:
  • (a) A depreciation of the Indian rupee will give competitive advantage to the Indian export firms, thus boosting Indian exports. The rise in exports will give a boost to the recovery of economic growth.
  • (b) A weak domestic currency will make the imports dearer. This will act as a barrier against imports; it will thus improve the trade balance of the country. However, imports of commodities, like oil, whose demand is relatively inelastic, could dilute, fully or partially, the likely improvement in the trade scenario. Although capital imports are needed for economic growth, the need to curb the deficits is more pressing because deficits have an inflationary impact and they can also lead to financial vulnerability. In case there is exchange depreciation, Indian importers would prefer to purchase locally manufactured goods. This would add to the growth in demand for goods and services, thus helping in the economic recovery.
  • (c) A weaker domestic currency would help attract more foreign domestic investment. This is so because international companies would find it more attractive to set up units in India to service their foreign units because of the cost advantages, which in the case of a strong currency could be partially or fully wiped out.
  • (d) The repayment of foreign debt by the government will be severely affected due to depreciation in the value of the rupee.
  • (e) Another drawback of a weak currency is that it might dissuade foreign institutional investment (FII) from investing in India. The prospects of a weaker currency could also lead to a rush for repatriation of funds by FIIs. The FIIs are permitted to transfer money in and out of the country at will and therefore if there were a legitimate fear of a large fall in the value of currency, they may be tempted to repatriate a part of their funds. This could result in a selloff in the capital markets.
  • (f) Depreciation of rupee will lead to higher interest rates in the economy, with the help of which the RBI might want to fight off the pressure of depreciation in the value of the domestic currency.

RBI cuts CRR to infuse Rs 48,000cr

The Reserve Bank in a surprise move on  announced 0.75 percentage points cut in its key policy ratio to pump Rs 48,000 crore in the economy, but the move may not lead to immediate reduction in lending rates.
Without waiting for the scheduled policy review due next week, RBI reduced the cash reserve ratio (CRR) — the portion of deposits banks require to keep with the central bank — from 5.5 per cent to 4.75 per cent with effect from tomorrow with a view to ease the liquidity situation.
With this move, the Reserve Bank of India (RBI) would be injecting around Rs 80,000 crore into the economy in less than 40 days. The central bank in January had reduced CRR by 0.5 percentage points, releasing Rs 32,000 crore liquidity.
These measures, according to the central bank, are aimed at addressing “the liquidity deficit (which) is expected to increase significantly during the second week of March on account of to advance tax outflows and the usual front-loading of cash balances by banks with the Reserve Bank.”
The last date for advance tax payment in March 15 and is estimated to drain out Rs 60,000 crore from the system.

Tuesday, March 6, 2012

Budget


Need for Budget
 It is not as if the Government can tax, borrow and spend money the way it likes. Since there is a limit to the resources, the need for proper budgeting arises to allocate scarce resources to various Governmental activities. Every item of expenditure has to be well thought out and total outlay worked out for a specific period. Prudent spending is essential for the stability of a Government and proper earnings are a pre-requisite to wise spending. Hence, planned expenditure and accurate foresight of earnings are sine-qua-none of sound Governmental finance.

 Demands for Grants
The estimates of expenditure included in the Budget and required to be voted by Lok Sabha are in the form of Demands for Grants. These Demands are arranged Ministry-wise and a separate Demand for each of the major services is presented. Each Demand contains first a statement of the total grant and then a statement of the detailed estimate divided into items.

Railway Budget

The Budget of the Indian Railways  is presented separately to Parliament and dealt with separately, although the receipts and expenditure of the Railways form part of the Consolidated Fund of India and the figures relating to them are included in the 'Annual Financial Statement'.

Budget Presentation
The Budget is presented to Parliament  on such date as is fixed by the President. The Budget speech of the Finance Minister is usually in two parts. Part A deals with general Economic Survey  of the country while Part B relates to taxation proposals. General Budget was earlier being presented at 5 P.M. on the last working day of February, but since 2001 the General Budget is being presented at 11 A.M. on the last working day of February, i.e. about a month before the commencement of the Financial year except in the year when General Elections to Lok Sabha are held.

  Key elements and Budget Documents

Alongwith the 'Annual Financial Statement  Government presents the following documents: an Explanatory Memorandum briefly explaining the nature of receipts and expenditure during the current year and the next year and the reasons for variations in the estimates for the two years, the Books of Demands showing the provisions Ministry-wise and a separate Demand for each Department and service of the Ministry. The Finance Bill which deals with the taxation measures proposed by Government is introduced immediately after the presentation of Budget . It is accompanied by a memorandum explaining the provisions of the Bill and their effect on the finances of the country.

Vote on Account
The discussion on the Budget begins a few days after its presentation. In a democratic set-up, Government is anxious to give Parliament full opportunity to discuss the budgetary provisions and the various proposals for taxation. Since Parliament is not able to vote the entire budget before the commencement of the new financial year, the necessity to keep enough finance at the disposal of Government in order to allow it to run the administration of the country remains. A special provision is, therefore, made for "Vote on Account" by which Government obtains the Vote of Parliament for a sum sufficient to incur expenditure on various items for a part of the year.

Cut Motions
Motions for reduction to various Demands for Grants are made in the form of Cut Motions seeking to reduce the sums sought by Government on grounds of economy or difference- of opinion on matters of policy or just in order to voice a grievance.

Appropriation Bill
After the General Discussion on the Budget proposals and Voting on Demands for Grants have been completed, Government introduces the Appropriation Bill. The Appropriation Bill is intended to give authority to Government to incur expenditure from and out of the Consolidated Fund of India. The procedure for passing this Bill is the same as in the case of other money Bills.

Finance Bill
The Finance Bill  seeking to give effect to the Government's taxation proposals which is introduced in Lok Sabha immediately after the presentation of the General Budget, is taken up for consideration and passing after the Appropriation Bill is passed.

Central Rural Sanitation Programme

The Programme was launched in 1986 with the objectives of improving the quality of life of rural people and providing privacy and dignity to women. The concept of sanitation was expanded in 1993 to include personal hygiene, home sanitation, sage water and disposal of garbage, human excreta and wastewater. The components of the programme included construction of individual sanitary toilets for household below poverty-line (BPL), conversion of dry latrines to water-pour flush toilets, construction of village sanitary complexes for women, setting up of sanitary marts and production centres, intensive campaign for creating awareness and health education, etc.
Keeping in view the experiences of the Central and state governments, NGOs and other implementing agencies and the recommendations of the Second National Seminar on Rural Sanitation, the strategy for the Ninth Five Year Plan was revised and the programme was restructured form 1 April 1999. The restructured programme moves away form the principle of state-wise allocation of funds, primarily based on poverty criteria, to a demand driven approach in a phased manner. Total Sanitation Campaign (TSC) was introduced and the Allocation Based Programme was phased out by 31 March 2002. TSC is community-led and people-centred. There was a shift from a high subsidy to a low subsidy regime. The TSC approach emphasized awareness-building component and meets the demand through alternate delivery mechanism. School Sanitation has been introduced as a major component to encourage wider acceptance of sanitation among rural masses. The States/UTs are required to formulate project proposals under the TSC in order to claim Central government assistance.
Under the TSC, so far 559 projects in 30 States/UTs have been sanctioned with the total project outlay of about Rs.6240.27 crore. The Central, State and Beneficiary/Panchayat contributions are about Rs.3675.38 crore, Rs.1424.09 crore and Rs.1140.80 crore respectively. The components sanctioned in the 559 projects are
  1. Construction of 499 lakh individual household latrines
  2. 656690 toilets for Schools
  3. 36098 Community Sanitary Complexes
  4. 199033 toilets for Balwadis/Anganwadis and
  5. 4030 Rural Sanitary Marts/Production Centres.
Besides, funds have been earmarked for start-up activities, Information, Education and Communication (IEC) and Administrative charges. The total numbers of household toilets constructed up to 2005-06 are 14,48,1807.
To add vigour to the implementation of TSC Government of India has separately launched an award scheme 'Nirmal Gram Puraskar'(NGP) for fully sanitised and open defecation free Gram Panchayats, block and districts. In the first year of its institution only 40 PRIs were awarded NGP on 24 February 2005. In the second year the number of awarded PRIs/Blocks and organisation have increased to 772. His Excellency, Dr. A.P.J. Abdul Kalam, President of India, distributed the Awards on 23 March 2006.

Monitoring and Evaluation

The Ministry of Rural Development lays great emphasis on monitoring and evaluation of all rural development programmes in general and poverty alleviation and employment generation schemes in particular, being implemented in various States/UTs.It is well recognised that the success of the programmes largely depends on the effective delivery system and efficient implementation at the grass-roots level so that the programme benefits reach the rural poor in full measures. In order to ensure this, the Ministry has evolved a comprehensive multi-level and multi tool system of Monitoring and Evaluation for the implementation of its programmes. The Monitoring mechanism includes, inter-alia, the Performance Review Committee, Review meetings by the Minister of Rural Development and Ministers of State with the Chief Ministers/ Ministers of Rural development and Officers of the States, the Area Officer Scheme, periodic progress reports, audit and utilisation certificates, video conferencing and field visits. The Ministry conducts quick evaluation/concurrent evaluation of all major programmes. Impact assessment studies to asses the overall impact of programmes of village-level is also conducted in selected district. The Vigilance and Monitoring Committees at State and District Levels in all States/UTs monitor the implementation of Programmes and introduce greater transparency in the process. These Committees inter-alia include MPs/ MLAs representatives of Panchayti Raj Institutions and NGOs. The Members of Parliament both Lok Sabha and Rajya Sabha have been assigned a Central role in the reconstituted V&M Committees and they have been nominated Chairman/Co-Chairman of the district level V&M Committees.
The Ministry has also taken initiatives to strengthen the monitoring mechanism and quality of implementation of programmes by introducing District Level Monitoring (DLM) System in 130 district of 27 States through external agencies which include monthly reporting of physical and financial performance, qualitative reporting about policy and implementation environments in the district and physical verification of the assets crated under various programmes of the Ministry. Similarly DLM of Total Sanitation Campaign (TSC) and Swajaldhara is implemented in 398 districts of the country w.e.f. 1 July 2005 This system aims at providing continuous, transparent and accountable monitoring inputs in reporting format with the objectives of reporting of the process and progress of the programmes covering different components of the programmes. It also aims at identification of gaps in the implementation at the village, block, district and state level. The monitoring system also elicits the stakeholders' views; assesses the institutional issues and document case studies and success stories on best practices, innovations and lesson learned.
In order to strengthen the monitoring mechanism, the Ministry has a panel of about 300 National Level Monitors comprising retired servicemen and Retired Civil Servants to monitor and furnish periodic reports to the Ministry on the implementation of programmes in selected districts including verifying facts of the cases and complaints if any, which may be referred to them.
The Union Government in recent years has given emphasis to e-governance in all possible areas. Accordingly, the Ministry of Rural Development has also initiated action with the state Governments and UTs to ensure that information and progress reports completed by Districts Rural Development Agencies (DRDAs) are sent through the electronic medium. About 400 (DRDAs) have started sending their reports through online. Efforts are being made in this direction to obtain online progress reports from all the remaining DRDAs.

Bharat Nirman

Bharat Nirman is a time-bound business plan for action in rural infrastructure. Under Bharat Nirman, action is proposed in the areas of irrigation, rural housing, rural water supply, rural electrification and rural telecommunication connectivity.

Rural Roads

To upgrade rural infrastructure, the Government has formulated a proposal for providing the road connections to more than 38,484 villages above 1000 population and all 20,867 habitations above 500 populations in hilly and tribal areas.
To achieve the targets of Bharat Nirman, 1,46,185 kms. of road length is proposed to be constructed by 2009. This will benefit 66,802 unconnected eligible habitations in the country. To ensure full farm to market connectivity, it is also proposed to upgrade 1,94,132 kms. of the existing Associated Through Routes. A sum of approximately Rs.48,000 crore is proposed to be invested to achieve this.
The main thrust of research and development (R&D) in the roads sector is to build a sustainable road infrastructure comparable to the best roads in the world. The various components of this strategy are improvement in design, modernization of construction techniques, introduction of improved material conforming to latest trends, evolving better and appropriate specifications, encouraging development and use of new technologies etc. The dissemination of these matters is done through the publication of new guidelines, code of practices, instructions/circulars, compilation of state-of-the-art reports and seminars/presentations etc. The research schemes sponsored by the Department are generally 'applied' in nature, which, once completed, would enable them to be adopted by user agencies/departments in their work in the field. The areas covered are roads, road transport, bridges, traffic and transportation techniques etc. The Department takes the help of various research institutions, academic institutions and universities to implement the schemes. An outlay of Rs.600.00 lakhs has been provided for R&D in 2007-08. Some of the ongoing major schemes are as follows:
  • Roads:
    • Development of GIS based National Highways information system;
    • Guidelines for soil nailing techniques in highway engineering;
    • Pilot study on effect of overloading on road infrastructure;
    • Investigation on field performance of bituminous mixes with modified binders;
    • R&D Studies on performance evaluation of rigid pavements on high density traffic corridors using instrumentation supported by laboratory tests.
    In addition to the above, the proposal of IIT, Roorkee for establishment of the Ministry's Chair in it in the area of development of Highway System has also been sanctioned.
  • Bridges:
    • Creation of complete range of independent testing facility at Central Road Research Institute (CRRI ), New Delhi.

Rural Housing

Housing is one of basic requirements for human survival. For a shelterless person, possession of a house brings about a profound social change in his existence, endowing him with an identity, thus integrating him with his immediate social milieu.
The Ministry of Rural Development is implementing Indira Awaas Yojana (IAY) with a view to providing financial assistance to the rural poor living below poverty line for construction of pucca house. The details of the scheme along with its performance are given below:

Indira Awaas Yojana (IAY)

The Government of India is implementing Indira Awaas Yojana (IAY) since the year 1985-86 to provide financial assistance for construction / upgradation of dwelling units to the below poverty line (BPL) rural households belonging to the scheduled castes, scheduled Tribes and freed bonded labourers categories. From the year 1993-94, the scope of the scheme was extended to cover non-Scheduled Castes and Scheduled Tribes rural BPL poor, subject to the condition that the benefits to non-SC/ST would not be more than 40% of the total IAY allocation. The benefits of the Scheme have also been extended to the families of ex-servicemen of the armed and paramilitary forces killed in action, 3% of the Houses are reserved for the rural Below Poverty Line physically and mentally challenged persons, from 2006-07 onward, funds and physical targets under IAY are also being earmarked for BPL minorities in each state.
Under the scheme, financial resources are shared between the centre and the states on a 75:25 basis. Since, reduction of shelterlessness is the primary objective, 75% weightage is given to housing shortage and 25% to the poverty ratios prescribed by Planning Commission for state level allocation. For district level allocation, 75% weightage is given again to housing shortage and 25% to SC/ST population of the concerned districts.
On the basis of allocations made and targets fixed, district Rural development Agency (DRDAs)/Zilla Parishada (ZPs) decide Panchayat-wise number of houses to be constructed under IAY and intimate the same to the concerned Gram Panchayat. Thereafter, the Gram Sabha selects the beneficiaries, restricting its number to the target allotted, from the list of eligible households from the Permanent IAY Waitlists. No further approval of the higher authority is required.
The ceiling on construction assistance under the IAY has been enhanced w.e.f. 1.4.2008, Rs.25, 000/- to Rs.35,000/- per unit in the plain areas and from Rs.27,500/- to Rs.38,500/- in hilly/difficult areas. For upgradation of kutcha house, the financial assistance has also been enhanced from Rs.12,500/- to Rs.15,000/- per unit. In addition, The Reserve Bank of India has been requested by the Ministry of Finance to include IAY houses under the Differential Rate of Interest (DRI) scheme for lending upto Rs.20,000 per unit at an interest rate of 4%.
Further, the dwelling units should invariably be allotted in the name of a female member of the beneficiary household. Alternatively, it can be allotted in the name of both husband and wife. Only in case there is no eligible female member in the family, the house can be allotted in the name of an eligible male member.
The Sanitary latrine and smokeless chullah and proper drainage are required for each IAY house. Latrine could be constructed separate for the IAY house on the site of beneficiary.
The construction of the houses is the sole responsibility of the beneficiary. Engagement of contractors is strictly prohibited.
No specific type design has been stipulated for an IAY house. Choice of design, technology and materials for construction of an IAY house is the sole discretion of the beneficiaries.
About 181.51 lakh houses have been constructed under IAY since inception of the Scheme with an expenditure of Rs.36900.41 crores (upto 31/5/2008).

Performance during the year 2007-08

During 2007-08, the Central allocation for Rural Houseing was Rs.40,322.70 crore. The target for construction/upgradation of IAY houses was 21.27 lakh. Against this target, 19.88 lakh houses were constructed/upgraded by incurring an amount of Rs.5,458.01 crores (including State share).

Performance during the year 2008-09

The Central allocation for 2008-09 under the IAY is Rs.5,645.77 crore for the target of constructing/upgrading 21.27 lakh IAY houses. Out of this, an amount of Rs.1,694.48 crore has been released as part of first instalment and 85,879 houses have been constructed so far, (upto 31/5/2008).

Irrigation

Under the Irrigation Component of Bharat Nirman, the target of creation of additional irrigation potential of 1 crore hectare in 4 years (2005-06 to 2008-09) is planned to be met largely through expeditious completion of identified ongoing major and medium irrigation projects. Irrigation potential of 42 lakh hectare is planned to be created by expeditiously completing such ongoing major and medium projects.
There is a definite gap between irrigation potential created and the potential utilized. Under Bharat Nirman it is planned to restore and utilize irrigation potential of 10 lakh hectare through implementation of extension, renovation and modernization of schemes alongwith command area development and water management practices.
There are considerable areas in the country with unutilised ground water resources. Irrigation potential of 28 lakh hectare is planned to be created through ground water development.
The remaining target for creation of irrigation potential of 10 lakh hectare is planned to be created by way of minor irrigation schemes using surface flow.
10 lakh hectare of irrigation potential is also planned by way of repair, renovation and restoration of water bodies and extension, renovation and modernization of minor irrigation schemes.

Telephone Connections

Telecom connectivity constitutes an important part of the effort to upgrade the rural infrastructure. Under the Bharat Nirman Programme, it will be ensured that 66,822 revenue villages in the country, which have not yet been provided with a Village Public Telephone (VPT), shall be covered. Out of the above villages, connectivity in 14,183 remote and far flung villages will be provided through digital satellite phone terminals. Assistance for both capital as well as operational expenditure for these VPTs will be met out of the Universal Services Obligation Fund (USOF).

Rural Water Supply

To build rural infrastructure, Bharat Nirman has been launched by the Government of India in 2005 to be implemented in a period of four years from 2005-06 to 2008-09. Rural drinking water is one of the six components of Bharat Nirman. During Bharat Nirman period, 55,067 un-covered and about 3.31 lakh slipped-back habitations are to be covered with provisions of drinking water facilities and 2.17 lakh quality-affected habitations are to be addressed for water quality problem.
While prioritising the addressal of the water quality problem, Arsenic and Fluoride affected habitations have been accorded priority followed by Iron, Salinity, Nitrate and other contaminants. To ensure that habitations once provided with drinking water supply infrastructure do not slip back and face drinking water problem, sustainability of drinking water sources and systems has been accorded high priority. To achieve drinking water security at village/ habitation level, conjunctive use of water i.e. judicious use of rainwater, surface water and ground water is promoted.
To enable the rural community shoulder the responsibility in management, operation and maintenance of water supply systems at village level, decentralized, demand-driven, community-managed approach in the form of Swajaldhara have been adopted. To further strengthen community participation in the drinking water sector for sustainability, National Rural Drinking Water Quality Monitoring & Surveillance programme has been launched in February, 2006 under which 5 persons in each Gram Panchayat are to be trained to carry out regular surveillance of drinking water sources for which 100% financial assistance including water testing kits, are provided.

Rural Electrification

Ministry of Power has introduced the scheme Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) in April 2005, which aims at providing electricity in all villages and habitations in four years and provides access to electricity to all rural households. This programme has been brought under the ambit of Bharat Nirman.
Under RGGVY, electricity distribution infrastructure is envisaged to establish Rural Electricity Distribution Backbone (REDB) with at least a 33/11KV sub-station, Village Electrification Infrastructure (VEI) with at least a Distribution Transformer in a village or hamlet, and standalone grids with generation where grid supply is not feasible.
This infrastructure would cater to the requirements of agriculture and other activities in rural areas including irrigation pump sets, small and medium industries, khadi and village industries, cold chains, healthcare and education and IT. This would facilitate overall rural development, employment generation and poverty alleviation.
Subsidy towards capital expenditure to the tune of 90% will be provided, through Rural Electrification Corporation Limited (REC), which is a nodal agency for implementation of the scheme. Electrification of un-electrified Below Poverty Line (BPL) households will be financed with 100% capital subsidy @ Rs.1500/- per connection in all rural habitations.
The Management of Rural Distribution is mandated through franchisees. The services of Central Public Sector Undertakings (CPSU) are available to the States for assisting them in the execution of Rural Electrification projects.

Rural Water Supply Programme

Clean drinking water is a basic necessity of life. Supply of clean drinking water in the rural areas has always been one of the highest priorities of the government. A Technology Mission on drinking water named "National Drinking Water Mission" (NDWM) was launched in 1986, which subsequently was rechristened as "Rajiv Gandhi National Drinking Water Mission (RGNDWM) in 1991 with three key objectives:
  1. Providing safe drinking water to all villages,
  2. Assisting local communities to maintain sources of safe drinking water in good condition, and
  3. Giving special attention for water supply to Scheduled Castes and Scheduled Tribes.
To achieve the objectives, Accelerated Rural Water Supply Programme (ARWSP) is being implemented to resolve the drinking water problem in rural habitations. The Central Government supplements the efforts of the states by providing financial and technical support. The Tenth Plan emphasizes participatory approach where PRIs should be the key institutions for convergence of drinking water supply programmes at the ground level. The strategy to achieve the Tenth Plan objectives can be briefly summarised as:
  1. Accelerating coverage of the remaining Not Covered and Partially Covered habitations including those slipped back from fully covered to partially and not covered categories, with safe drinking water systems.
  2. To tackle problems of water quality in affected habitations and to institutionalize water quality monitoring and surveillance systems.
  3. To promote sustainability, both of systems and sources, to ensure continued supply of safe drinking water in covered habitations
Accelerated Rural Water Supply Programme (ARWSP) aims at achieving this objective. Considerable success has been achieved in meeting the drinking water needs of the rural population through the said scheme. There are more than 4 million hand pumps and 2 lakh piped water schemes in the rural areas.
The ARWSP was launched during 1972-73. It is currently being implemented through the Rajiv Gandhi National Drinking Water Mission. The scheme aims at coverage of all rural habitations with population of 100 and above, specially the un-reached ones, ensure sustainability of the systems and sources, tackle the problem of water quality and institutionalise water quality monitoring and surveillance through a Catchment Area Approach.
As on 1 April 2005, 96.13 per cent of rural habitations have been Fully Covered (FC) with drinking water facilities and 3.55 per cent are Partially Covered (PC) and 0.32 per cent is Not Covered (NC) with drinking water facilities. There are slippages of FC into NC or PC due to various factors such as lowering of ground water table, systems outliving their lives, increase in population, etc.
Drinking water supply is one of the six components of Bharat Nirman, which has been envisaged to build strong rural infrastructure in four years (2005-06 to 2008-09). The task ahead is to cover all the remaining uncovered habitations and also to cover the slipped back as well as the water quality affected ones. Action Plans from State/UT Governments for achieving the goals of Bharat Nirman in a time bound manner have been obtained.
For ensuring sustainability of the systems, steps were initiated in 1999 to institutionalise community participation in the implementation of rural drinking water supply schemes by incorporating the following three basic principles:
  1. Adoption of a demand-driven responsive and adaptable approach based on empowerment of villagers to ensure their full participation in the project through a decision making role in the choice of scheme design, control of finances and management arrangements.
  2. Increasing role of government for empowering user groups/gram panchayats for sustainable management of drinking water assets and integrated water management and conservation.
  3. Partial capital cost sharing either in cash or kind or both and 100 per cent responsibility of Operation and Maintenance by end-users.
Sector Reforms Projects, based on the above principles were sanctioned in 67 districts on pilot basis. With the experience gained from these pilot projects, reform process has been scaled up in the entire country through Swajaldhara launched on 25 December 2002. A notable feature of Swajaldhara is involvement of Village Water and Sanitation Committee (VWSC)/Panchayati Raj Institutions (PRIs) in planning, implementation, operation and maintenance. This would in turn ensure sustainability of the system. 10 per cent contribution is made by the community and 90 per cent funds are provided by the Central government. In case of SC and ST habitations, community contribution can be in the form of cash, kind, labour or land or a combination of these.
Rajiv Gandhi National Drinking Water Mission (RGNDWM) adopts an integrated approach so that conservation and augmentation of water sources is interrelated with rural water supply schemes to provide sustainable supply of safe drinking water to the rural population. The Mission seeks to provide supply of 40 liters of safe drinking water in rural areas.
An initiative has been taken by Government of India in February 2006 by launching the National Rural Drinking Water Quality Monitoring and Surveillance Programme which envisages institutionalisation of community participation for monitoring and surveillance of drinking water sources at the grass-root level by Gram Panchayats and Village Water and Sanitation Committees, followed by checking the positively tested samples at the district and State level laboratories.
Another initiative taken by the Government is that from 2006-07 onwards focused funding to tackle drinking water has been started. Up to 20 per cent of ARWSP funds are to be earmarked separately for tackling water quality problems. For 2006-07, 20 per cent of ARWSP funds have been allocated for funding under water quality.

Wednesday, February 29, 2012

Capital Account Convertibility (CAC)

A currency is said to be convertible when it can be freely exchanged for other currency at market rates. Current account transactions are those dealing with payments relating to foreign trade, travel and other services. Capital account deals with transaction of financial assets. While India has made the Indian rupee fully convertible on current account, it is yet to accept capital account convertibility as a goal.
One reason prompting the policy makers to go slow on capital convertibility is the experience of Mexico. It was one of the largest recipients of foreign private capital ($28 billion in 1993). But with the devaluation of the peso, and the collapse of the exchange rate, much of the capital fled country. This catastrophic collapse was made possible by capital account convertibility, which encouraged even Mexican residents to convert their capital into dollars, precipitating the crisis. Similar situation arose in the late 1997 in South East Asian countries also where their local currencies were hammered by speculators leading to devaluation of Indonesian rupiah by almost 58 per cent in one month.
While India make rupee fully convertible under current account, it was felt that the economy was not yet ready for capital account convertibility. The countries which went in for hasty CAC in the 1980s had to face financial crisis. The thinking was that trade and domestic liberation process should be completed before CAC can be thought of. Many economists feel that CAC will only help the drain of Indian capital, which will get invested abroad. The present policy is to go slow on CAC.
There is a school of thought represented by Prof. James Tobin, which even advocated an international tax on financial transaction to prevent speculative flight on capital. After the 1994 Mexico crisis, the idea of a 'Tobin Tax' received fresh attention.

India and ADB signed Loan Agreement to Support Electricity Transmission Capacity in Assam

India and ADB (Asian Development Bank) on 27 February 2012 Signed the third and last tranche of loan agreement  to support electricity transmission and distribution capacity in Assam  under the Assam Power Sector Enhancement Investment Programme. It amounts to 120.6 million US dollars. Tranches 1 and 2 are already given.

The objective of the Assam Power Sector Enhancement Investment Programme is to meet increasing demand for electricity in the state, where the large rural population depends mainly on the agriculture and manufacturing sectors for income.

The programme will help ASEB add an additional 430 MVA substation capacity and reduce system losses by four percent. Part of the loan will be utilised to increase energy efficiency through renovation and modernization of existing 33/11 kV substations, the introduction of high voltage distribution systems, and conversion to aerial bunched cables for some high voltage and low voltage lines in the urban areas. The programme will help around 1 million households, hospitals, businesses, and schools in the state.

The loan has a 20-year term and it includes a five-year grace period with an annual interest rate decided in accordance with ADB`s LIBOR-based lending facility. The project will be completed by 30 June, 2014.

All India Consumer Price Index Numbers for Industrial Workers


All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of January, 2012 increased by 1 point and stood at 198 (one hundred & ninety eight).

            During January, 2012, the index recorded maximum increase of 9 points each in Haldia and Bhilai centres, 7 points  in Jamshedpur centre, 6 points each in Tiruchirapally and Srinagar centres, 5 points  in 2 centres, 4 points in 7 centres, 3 points in 7 centres, 2 points in 11 centres and 1 point in 18 centres. The index decreased by 3 points each in Rangapara Tezpur and Godavarikhani centres, 2 points each in Madurai and Mercara centres, 1 point in 8 centres, while in the remaining 16 centres the index remained stationary.

            The maximum increase of 9 points in Haldia and Bhillai centres is mainly on account of Housing Index and increase in the prices of Wheat, Mustard Oil, etc. The increase of 7 points in Jamshedpur centre is mainly due to Housing Index and increase in the prices of Mustard Oil, Goat Meat, Vegetable & Fruit items, Tea (Readymade), Firewood, Soft Coke, Barber Charges, etc. The increase of 6 points in Tiruchirapally and Srinagar centres is mainly on account of Housing Index and increase in the prices of Rice, Wheat Atta, Mustard Oil, Milk, Vegetable & Fruit items, Tea (Readymade), etc. The decrease of 3 points in Rangapara Tezpur and Godavarikhani centres is due to decrease in the prices of Rice, Onion, Chillies Green, Vegetable items, etc. The decrease of 2 points in Madurai and Mercara centres is due to decrease in the prices of Rice, Wheat, Fish Fresh, Poultry (Chicken), Onion, Vegetable & Fruit items, etc.
            The indices in respect of the six major centres are as follows :
1. Ahmedabad
192
2. Bangalore
200
3. Chennai
187
4. Delhi
181
5. Kolkata
184
6. Mumbai
199

            The point to point rate of inflation based on CPI-IW (General) for the month of January, 2012 is 5.32% as compared to 6.49% in December, 2011. Inflation based on Food Index dipped to the level of 0.49% in January, 2012 as compared to 1.97% in December, 2011.

First Nationwide Annual India Consumer Price Index released by the Centre of Statistical Office

As per the first nationwide retail inflation data released by the Centre of Statistical Office on 21 February 2012, inflation based on the all India Consumer Price Index stood at 7.65 per cent in January 2012. The annual consumer price index (CPI) data released for the first time measures retail prices in major food groups, fuel, clothing, housing and education across rural and urban India.

While food and beverages reported a moderate rate of price rise of 4.11 per cent year-on-year in January, the inflation numbers for fuel and light, and clothing, bedding and footwear segments were in double-digits. Overall retail inflation in rural and urban areas stood at 7.38 per cent and 8.25 per cent in January, respectively.
Consumer price inflation for rural India (CPI-R) was recorded at 7.38%, for urban India (CPI-U), it stood at 8.25%.

Inflation as measured by the WPI eased to a 26-month low of 6.55% in January 2012.

Beginning 21 February 2012, the union government will release the nation-wide Consumer Price Index (CPI) on a monthly basis for better reflection of retail price movement as well as help the Reserve Bank take effective monetary policy steps to tackle inflation. The new CPI will eventually replace the Wholesale Price Index (WPI) for policy actions to deal with the price situation.

The monthly CPI will exist in addition to the three retail price indices- for agricultural labourers, rural labourers and industrial workers prepared by the Ministry of Labour. The new nationwide CPI is to be prepared by the Ministry of Statistics and Programme Implementation (MOSPI).

CPI uses defined basket of goods and services that represents purchasing pattern of a particular household. As the pattern is driven from the consumption side, it provides a relatively realistic view on how consumers are affected. The CPI data is reliable indication of demand side pressures and inflation is received from utilising CPI as a measure.

State of Education Report

According to the Annual Status of Education Report (ASER), 2011, the grim tale of India’s school education has got grimmer, with new evidence surfacing to show that families across rural India have been ignoring the guaranteed Right to Education to seek private paid education.

Though a whopping 96.8 per cent children aged 6 to 14 years (the age group the RTE Act covers) are now enrolled in school, children’s attendance is declining and so is their ability to read simple text and do simple mathematical calculations.

Almost half (48.1 per cent) of India’s rural primary school students are either attending private schools or seeking paid tuition. Across the nation, private school enrolment for children aged 6 to 14 years rose from 18.7 per cent in 2006 to 25.6 per cent in 2011.

The survey, which covered 6.5 lakh children in 16,000 villages of 558 districts, found that one in every four rural children was attending private schools. In Kerala and Manipur, over 60 per cent children go to private schools. The percentage of students going to private schools is 71.1 for Manipur; 39.6 for Punjab, 43.4 for Haryana, 37.7 for Jammu and Kashmir and 29.6 for Himachal.

In UP, 45 per cent students were found to be going to private schools in 2011, as against 22 per cent in 2005. In Tamil Nadu, 35 per cent are attending private schools as against 16 per cent in 2005. And the percentage of students seeking paid tuitions is rising. The figure was 22.5 in 2010 and is 23.3 per cent today.

The ASER report further found levels of reading abilities to have declined in several States. Except in Punjab, Gujarat and Tamil Nadu, reading abilities declined pan India, where the percentage of fifth graders able to read Class II text dropped across the nation from 53.7 per cent in 2010 to 48.2 per cent in 2011. Except in Himachal, Standard III children showed decline in ability to read Class I text across India.

In arithmetic, the situation is worse. As for the nation, the percentage of Class III graders who can do two-digit subtractions with borrowing dropped from 36.3 per cent in 2010 to 29.9 per cent in 2011. The decline was seen everywhere except in Andhra, Karnataka and Tamil Nadu, where the situation improved. The percentage of Class V children who can solve subtraction problems declined from 70.9 in 2010 to 61 this year.

Friday, February 24, 2012

BGREI turns Eastern region into food surplus region

The Bringing Green Revolution in Eastern India programme launched in 2010-11 as a Prime Minster's initiative based on the Inter Ministerial Task Force has resulted in impressive increase in production of food grains with the eastern region now turning a food surplus region. The BGREI is a subscheme of the Rashtriya Krishi Vikas Yojna (RKVYJ ) with an outlay of Rs. 400 crores in the eastern region including Assam, Bihar, Chhattisgarh, Jharkhand, Odisha, Eastern Uttar Pradesh & West Bengal.

The programme gained momentum in 2011-12 with the focus on rice and wheat only and strategic interventions relating to crop production, water harvesting and recycling, asset building and site specific activities needed for improving the agronomy-adopting cluster approach aimed at enhancing the productivity per unit area and the income of the farmers.

Eastern region hitherto known as food deficit region, has with the help of the programme, turned food surplus region. The rice production from the region is estimated at 562.6 lakh tons an increase of 19.8% over last year against an all India increase of 7%. And the foodgrain production from the region is estimated at 1032 tons an increase of 11.9% against an all India increase of 2.2%.

The increased productivity/ production was optimized due to resource allocation and utilization. The significant increase in production of food grains in the region not only offset the decline in production in central and peninsular India but also contributed significantly to the highest ever production of food grains. The growth in food grains i.e. rice and wheat provides an opportunity to procure and create food grain reserves locally reducing the pressure on Punjab and Haryana, and cutting costs on transport and other logistics.

The focus will now be to consolidate the gains with continued emphasis during the 12th Plan. Further steps will be taken to improve the infrastructure for procurement and storage of the produce and to ensure a reasonable price for the farmers.

Review of the Economy 2011/12

Thursday, February 23, 2012

Prime Minister's Economic Advisory Panel projected 7.5 - 8 % Growth Rate for 2012-13 Fiscal

The Prime Minister's Economic Advisory Panel (PMEAC) on 22 February 2012 projected 7.5 - 8 per cent growth rate for the fiscal 2012-13. India is also expected to achieve a higher economic expansion if the global environment turns favourable. Indian economy was growing at over nine per cent before the financial meltdown of 2008 pulled down the growth rate to 6.7 per cent in 2008-09.

The economy recorded a growth rate of 8.4 per cent in 2010-11, which according to the CSO estimates is expected to moderate to 6.7 per cent in the current fiscal 2011-12.

As per the Review of Economy (2011-12) released, the growth rate in 2011-12 is likely to be 7.1%, marginally higher than 6.9 per cent projected by the Central Statistical Organisaton (CSO).

Inflation was projected to moderate to 6.5% by March 2012 and 5-6 per cent in 2012-13. While the retail inflation based on Consumer Price Index (CPI) was 7.65 per cent in January, the Wholesale Price Index (WPI) inflation was 6.55 per cent.

Moderation of subsidy is expected to have a positive impact on manufacturing. It is also likely to help in softening of monetary policy. A need to make adjustment on the sale of petrol, diesel, gas and kerosene to reduce the huge burden of subsidy was also felt.

The negative developments in the Eurozone outweighed the small improvements in evidence in the US economy. The PMEAC projected the US economy to grow by more than the 1.8 per cent projected by the International Monetary Fund in September 2011 and reiterated in January 2012.

Sector-wise projection

The council pegged farm sector growth at three percent as compared to 2.5 percent growth projected in the advance estimate. A record output of rice and wheat on the back of good monsoon and strong growth in horticulture and animal husbandry segments are likely to push upward the agricultural sector growth. The farm sector had grown by seven percent in 2010-11.

The manufacturing sector was projected to grow by 3.9 percent while construction segment is expected to expand by 6.2 percent.
As per the PMEAC’s projection, strong growth in the services sector will continue with overall growth estimated at 9.4 percent for the fiscal ending 31 March 2012.

Projected Gross Domestic Product (GDP) growth for 2012 is substantially down from the budgetary target of around nine percent, and 8.4 percent expansion registered in 2011. High interest rates, fragile global economic conditions and the government's inability to push through key reforms hindered growth.

Investment activity slowed down and as a result the gross fixed capital formation for 2011-12 slipped to 29.3 percent, a decline of almost four percentage points over the last four years.

Friday, February 17, 2012

Objective Question based on Union Budget, Railway Budget and Economic Survey 2011-12

1. According to economic survey 2011-12, tabled in the parliament on February 25, 2011, how many villages in India are still out of telecom loop?
(1) 61,586
(2) 62,443
(3) 63,342
(4) 62,634

2. Union Railway Minister Ms. Mamata Banerjee presented the Railway Budget for 2011-12on
February 25, 2011 and fixed the plan outlay for 2011-12 at Rs.57, 630 crore, which is___ percent higher than the outlay for the year 2011-11.
(1) 38
(2) 42
(3) 44
(4) 40

3. According to the provisions of Railway Budget 2011-12, presented on February 25, 2011, which of the following combinations of project and proposed investments is not correct?
(1) New Railway Lines-Rs 9,583 crore
(2) Doubling the Lines-Rs5, 406 crore
(3) Gauge Conversion-Rs 2,470 crore
(4) Acquisition of rolling Stock-Rs 12,380 crore

4. Ms. Mamata Banerjee while presenting the Railway Budget for 2011-12 on February 25, 2011 fixed the target to load 993 million tones goods during 2011-12 to earn.
(1) Rs.68, 620 crore
(2) Rs.62, 489 crore
(3) Rs.67, 826 crore
(4) Rs.63, 765 crore

5. In the Railway Budget 2011-12, tabled on February 25, 2011, Ms.Mamata Banerjee has set an ambitious goal of enhancing the sundry earnings to Rs. 4,060 crore during 2011-12, which was___in 2010-11.
(1) Rs. 3170 Crore
(2) Rs. 3,530.34 Crore
(3) Rs.2, 596.31 Crore
(4) Rs.2, 778.34 Crore

6. Which one of the following projects was not announced by the Union Railway Minister Ms.Mamata Banerjee in the Railway Budget 2011-12, presented on February 25, 2011?
(1)Laying of 40 new lines
(2)Gauge Conversion of 1,017 km
(3)Trebling of 1125 km of track
(4)Electrification of 1,000km of track

7. Union Railway Minister Ms.Mamata Banerjee while presenting the Railway Budget for 2011-12 on February 25, 2011 proposed to set up a 700-megawatt gas-based power plant at Thakurli,which is situated in the state of
(1) West Bengal
(2) Andhra Pradesh
(3) Manipur
(4) Maharastra

8. How many new express trains were proposed in the Railway Budget 2011-12 on February 25, 2011 besides three new Shatabdis and nine new Duronto trains?
(1) 56
(2) 58
(3) 62
(4) 54

9. Which of the following statements regarding the Economic Survey 2010-11, tabled in the Parliament on February 25, 2011 is not correct?
(1) Estimated GDP growth in 2010-12, 8.6 percent
(2) Survey favours phased opening of foreign direct investment in multi-brand retail
(3) Survey does not favour second green revolution
(4) Efficient taxation of goods and services through GST

10. Union Finance Minister Pranab Mukherjee presented the Budget 2011-12 on February 28, 2011.Which of the following is not a key features of this Budget?
(1) Gross Tax receipts are estimated at Rs. 932,440 crore
(2) Exemption limit for general category of individual taxpayers was not enhanced
(3) Total expenditure proposed at Rs. 12, 57,729 crore
(4) Rate of Minimum Alternative Tax increased to18.5 percent

11. Which of the following statements is not correct about the Budget 2011-12, tabled in the parliament of February 28, 2011?
(1) Increase of 18.3 percent in total plan allocation
(2) Standard rate of service tax retained at 10 percent
(3) Allocation of Rs. 900 crore for National Mission for protein supplement
(4) redit flow for farmers raised from Rs. 3,75,000 crore to Rs. 4,75,000 Crore in 2011-12.

12. According to Economic Survey 2010-11, during April 2006 to March 2010, India witnessed foreign direct Investment inflows worth ____ in the retail sector.
(1) $ 190 million
(2) $ 194.69 million
(3) $ 290 million
(4) $ 294.69 million

13. According to Economic survey 2010-11, presented in the Lok Sabha on February 25, 2011, while the overall gross domestic product (GDP) has grown by an average of 8.62 percent during 2004-05 to 2010-11, GDP of the agricultural sector has increased by only____during the same period.
(1) 3.46 percent
(2) 4.46 percent
(3) 2.46 percent
(4) 5.46 percent

14. According to the data presented in the Economic Survey 2010-11, from 2000-2001 to 2009-2010, the growth in wheat acreage was around 1.21 percent, What was the growth in yield?
(1) 1.89 percent
(2) 0.68 percent
(3) 1.59 percent
(4) 1.61 percent

15. In the Union Budget 2011-12 presented in the LokSabha on February 28, 2011, what amount has been proposed to be raised through disinvestment of Public Sector Undertakings?
(1) Rs. 35,000 crore
(2) Rs. 40,888 crore
(3) Rs. 40,000 crore
(4) Rs. 37,000 crore

16. According to the proposal of Union Budget 2011-12, the government is to finalise Direct Taxes Code for enactment during 2011-12.When will it be effective from?
(1) April 1, 2012
(2) May 1, 2012
(3) April 1, 2013
(4) May 1, 2013

17. According to proposals of Union Budget, 2011-12, to empower women and promote their self help groups (SHG) Women’s SHGs Devlopment Fund is to be created with a corpus of
(1) Rs. 600 crore
(2) Rs. 525 crore
(3) Rs. 625 crore
(4) Rs. 500 crore

18. Which of the following pairs based on Union Budget 2011-12 estimates is wrongly matched?
(1) Revenue Receipts-Rs. 789892 crore
(2) Capital Receipts-Rs. 467837crore
(3) Non Plan Expenditure-Rs. 816000 crore
(4) Revenue Deflect- Rs. 307270 crore

19. According to the Union Budget 2011-12 estimates for each rupee that comes in the government’s ex-chequer the share of different heads has been listed below. Which of the following is not correctly matched?
(1) Borrowings and other liabilities-27 paise
(2) Corporation tax-23 paise
(3) Service tax and other taxes-6 paise
(4) Union Excise duties-11 paise

20. According to the Union Budget 2011-12 estimates presented in the Lok Sabha on February 28,2011,for each rupee that goes from government’s ex-chequer.the share of different heads has been listed below. Which of the following is not correctly matched?
(1) Central Plan-22 paise
(2) Interest Payment-18 paise
(3) Defence-10 paise
(4) subsidies-9 paise

21. According to the Union Budget 2011-12, to further encourage States to allocate more funds for agriculture over and above their base line expenditure on farming, an additional sum of ____has been proposed for the Rashtriya Krishi Vikas Yojana.
(1) Rs. 1190 crore
(2) Rs. 1105 crore
(3) Rs. 1150 crore
(4) Rs. 5110 crore

22. In the Union Budget 2011-12 proposals presented in Lok Sabha on February 28, 2011, to provide Housing finance to targeted groups in rural areas at competitive rates, what provision has been made for the Rural Housing Fund?
(1) Rs. 2000 crore
(2) Rs. 3500 crore
(3) Rs. 3000 crore
(4) Rs. 2500 crore

23. Handloom weavers have been facing economic stress. In the Union Budget 2011-12, to benefit 15000 cooperative societies and about 300000 handloom weavers, it has been proposed to provide_____ to NABARD.
(1) Rs. 3000 crore
(2) Rs. 2000 crore
(3) Rs. 3500 crore
(4) Rs. 4661 crore

24. With an objective to bring green revolution in the eastern region of India i.e. Assam, West Bengal, Orissa, Bihar, Jharkhand, eastern Uttar Pradesh and Chhattisgarh, what amount has been allocated in Union Budget 2011-12 for the programme that will target the rice based cropping system?
(1) Rs. 325 crore
(2) Rs. 400 crore
(3) Rs. 315 crore
(4) Rs. 415 crore

25. To build judicial infrastructure and E-courts project, the plan provision for the Department of justice has been increased three-fold to in the Union Budget 2011-12.
(1) Rs. 1000 crore
(2) Rs. 951 crore
(3) Rs. 2000 crore
(4) Rs. 1051 crore

26. In the Union Budget 2011-12 estimates presented in the Lok Sabha on February 28, 2011 the government has pegged fiscal deflect for 2011-12, at____ of Gross Domestic Product (GDP).
(1) 4.8 percent
(2) 4.6 percent
(3) 4.9 percent
(4) 4.15 percent

27. Plan expenditure which broadly includes spending on assets and is perceived to provide a push to the economic growth is estimated to be____in 2011-12, as mentioned in the Union Budget 2011-12.
(1) Rs. 441500.09 crore
(2) Rs. 400000 crore
(3) Rs. 441546.75 crore
(4) Rs. 14546.7 crore

28. In the Union Budget 2011-12 presented on February 28, 2011, a big push to the infrastructure sector has been announced. What allotment has been proposed on the transport and the energy sectors out of Rs. 5.92 lakh crore earnmarked in the Central Plan?
(1) Rs. 2.72 lakh crore
(2) Rs. 1.72 lakh crore
(3) Rs. 1.75 lakh crore
(4) Rs. 1.89 lakh crore

29. Union Finance Minister Pranab Mukherjee has made a total allocation of____to give a greater to flagship programme Bharat Nirman,covering six sectors.
(1) Rs. 56000 crore
(2) Rs. 58000 crore
(3) Rs. 10000 crore
(4) Rs. 85000 crore

30. In the Union Budget 2011-12 proposals,what amount has been allocated under the Indira Awas Yojana for construction of house for BPL families in the left wing Extremist(LWE) districts?
(1) Rs. 8096 crore
(2) Rs. 18999 crore
(3) Rs. 8996 crore
(4) Rs. 7996 crore

31. In the union Budget 2011-12 presented in the parliament on February 28, 2011 by what percentage the defence budget has been raised from Rs. 147344 crore in 2010-11?
(1) 11.59 percent
(2) 12.59 percent
(3) 11.95 percent
(4) 12.5 percent

32. According to the Union Budget 2011-12, an international award with prize money of Rs. 1crore is to be instituted for promoting the values of universal brotherhood in the memory of
(1) Mahatma Gandhi
(2) Rabindranath Tagore
(3) Devendranath Tagore
(4) Subhash Chandra Bose

ANSWERS
1.(2) 2.(4) 3.(4) 4.(1) 5.(2) 6.(3) 7.(4) 8.(1) 9.(3) 10.(2) 11.(3) 12.(2) 13.(1) 14.(2) 15.(3) 16.(1) 17.(4) 18.(3) 19.(2) 20.(3) 21.(2) 22.(2) 23.(1) 24.(2) 25.(1) 26.(2) 27.(3) 28.(1) 29.(2) 30.(3) 31.(1) 32.(2)

18. (2) The correct answer is Rs. 816182 crore 19. (2) The correct answer is Rs. 24 paise. 20. (3) The correct answer is Rs. 11 paise.

Thursday, February 16, 2012

Indian Council of Overseas Employment- A think Tank on ‘International Migration

The Indian Council of Overseas Employment (ICOE) is a ‘not for profit’ society established by the Ministry of Overseas Indian Affairs (MOIA) in 2008 to serve as a think tank on all matters relating to ‘International Migration’. The ICOE undertakes empirical, analytical and policy related research, implements pilot projects to document good practices and assists in capacity building of stakeholders at the sub-national level. The mandate of the Council is to devise and execute medium to long term strategies to enable Indian emigrant workers and professionals to move up the value chain and to position India as a preferred source of qualified, skilled and trained human resources across a wide gamut of sectors.
Vision: Lead 'evidence based' work on international migration to support informed policy making and enable strategic interventions for a coherent and harmonised response to the transnational movement of people.
Mission: Partner with individuals, institutions and governments to drive empirical, analytical and policy related research; enhance capacities and pilot good practices in international migration and its governance.
Governance Structure: The Council has a two- tier body comprising of a Governing Body and an Executive Directorate. The Governing Body provides the broad policy framework for the programmes and activities of the Council. The Governing Body is headed by Secretary, MOIA who is the Chairman while the other Members include the Secretaries or their representatives from the Department of Economic Affairs, the Ministry of Finance, the Ministry of Labour and Employment; Secretaries of three State Governments by rotation and four external nominees. The Chief Executive Officer, ICOE functions as Member Secretary of the Council and looks after the functions of the Council and its operations, assisted by a small team.
Key Partnerships: ICOE is building strong research partnerships with institutions of international repute as well as multilateral organisations. Some of the partner institutions include:
•   European University Institute (EUI), Florence, Italy
•   International Organization for Migration (IOM), India
•   Migration Policy Institute (MPI), Washington, USA
•   Hellenic Migration Policy Institute, Athens, Greece
•   V. V. Giri National Labour Institute, India
•   UN Women, India
ICOE also works closely with the following institutions which have partnered with MOIA for various research initiatives on international migration:
•   Center for Development Studies, Trivandrum, India
•   Jawaharlal Nehru University (JNU), New Delhi, India
•   Center for the Advanced Study of India (CASI), University of Pennsylvania, Philadelphia
•   International Migration Institute (IMI), University of Oxford, UK
•   University of the Witwatersrand, Johannesburg
Initiatives of ICOE
  1. Skill Development Initiative for Potential Migrants from the North-Eastern States of India is a pilot project currently underway in eight North-Eastern states in partnership with International Organization for Migration (IOM). The objective of the project is to provide job readiness and augment employability of the potential overseas migrants, in the international labour market, especially high demand sectors of hospitality & healthcare. The project will develop standards andan internationally recognized framework for skills up-gradation, assessment, accreditation & certification. The project will be scaled up at national level.
  2. Developing a Knowledgebase for Policymaking on India–EU Migration project is being implemented in partnership with EUI, Florence, with an objective to consolidate a constructive dialogue between the EU and India on migration covering all migration-related aspects. The project is co-financed by European Commission (EC).The objective of the project is to assemble high-level Indian-EU expertise in major disciplines that deal with migration (demography, economics, law, sociology and politics) with a view to building up migration studies in India and to provide the Government of India as well as the European Union, its Member States, the state governments, academia and civil society, with evidence-based policy-oriented research, capacity building, and outreach programmes at sub-national level.
  3. Study on Health of Migrant Workers from India in the Gulf is being undertaken by ICOE in collaboration with WHO and IOM in three major Indian states of origin (Kerala, Andhra, Pradesh, Punjab), and in the UAE, Oman and Bahrain. The scope of the study is to understand the etiology of the high incidence of hypertension, gestational diabetes and depression amongst Indian workers, relative to their counterparts in India as well as in comparison with other ethnic groups.
  4. Empowerment of Women Migrant Workers in the Gulf is a pilot project instituted by ICOE in collaboration with UN Women for empowering women migrant workers in the Gulf. The project will be implemented over a period of two years in select districts of two major states of origin for women migrants workers; Andhra Pradesh &Kerala. The project aims to institutionalize ‘good practices’ in the entire cycle of migration from pre-departure to return and resettlement through a series of awareness and capacity building programmes covering all stakeholders in the migration process.
  5. Labour Market Assessment (LMA) of six European countrieswas conducted by ICOE in partnership with IOM to present a market overview and sectoral opportunities in the labor markets in respective countries. The LMA also provided broad-based as well as short-term recommendations for potential improvement on the supply side of labour mobility in India. The second phase of Labour Market Assessment will be carried out in select EU Member States, Australia and Canada.
  6. Research Project on the Movement of Indian Capital, Goods and Labour in Africa in partnership with The Centre for Indian Studies in Africa (CISA) - Wits University to create the basis for a realistic assessment of Indian capital and labour in Africa; and inform policy and practice in India. The project will build statistical &data analysis systems and establish institutional links with think-tanks in Africa to support evidence based research. The research outputs will inform India’s engagement with matters of investments and management of overseas Indian labour with particular reference to skills needed. It will also provide recommendations for action to improve labour flows and to engage with the issue of entrepreneurial capital as opposed to direct investments.
  7. Second Employer’s Conference will be organizedin 2012 with an objective to showcase India as a preferred country of origin for skilled and trained human resource. The conference will be hosted by Haryana Overseas Placement Assistance Society (HOPAS) and is expected to be attended by recruiters from EU member states, Gulf, South-East Asia and Australia.