- Mrunal - http://mrunal.

org -
[Economic Survey] Ch4: Monetary Policy Trends, Reforms, RBI Restructuring program
1. Prologue
2. Why RBIs monetary policy fails to control inflation?
1. Urjit Patel: reforms in monetary policy
2. Rajan Reforms in Monetary policy
3. Monetary Policy Trend 2013
3. Monetary Policy trend Jan 2014 onwards
1. Why Rajan decreased SLR?
2. Rajan Wisdom during press conference
4. RBI restructuring
1. Existing departments
2. Five clusters
3. Chief Operating officer (COO)
4. Staff Posting & promotion in clusters
Prologue
Chapter 4: Prices and Monetary Management. FIVE subparts
1. Inflation indexed bonds
2. measures of money supply
3. Monetary policy trends, RBI restructuring
4. Indexes Theory: WPI, CPI, IIP, Services index and others
5. Indexes Current: Survey observations on WPI, CPI & IIP, How to combat inflation
Why RBIs monetary policy fails to control inflation?
As per Economic Survey all of the following are responsible:
1. government borrowings
2. financial repression (e.g Government compelling public sector banks to invest money in G-sec beyond their SLR
requirement)
3. High level of non-performing assets (NPAs)
4. high inflation
5. informal finance / moneylenders.
6. Rigidity in reprising for fixed deposits
Urjit Patel: reforms in monetary policy
Refer to the mile-long separate article, published earlier. Click me
Gist of Urjit Patels recommendations:
RBI Target inflation
RBI should try to control inflation within 4% CPI (Combined).
With 2% (+/-) band = control inflation within 2 to 6% of CPI (Combined.)
RBI fix Accountability
Setup a monetary policy Committee to decide the monetary policy.
Appoint 2 outsider members, fix Accountability.
Govt.side reforms Restructure MNREGA like bogus schemes & subsidies, reduce fiscal deficit.
Rajan Reforms in Monetary policy
Before After Rajanbhais entry
Monetary policy was designed using multiple-
indicator method.And within that RBI focused on WPI
to measure inflation.
From April 2014 onwards, Rajan decided to use CPI (Combined)
as key measure of inflation- just like how Urjit Patel had
recommended.
Monetary policy review was done every 45 days Every 60 days (2 months)**starting from April 2014
**You might wonder how is that a reform? Cant we say Rajan is LAZY because he gives policy after 60 days instead of
45?
Ans. No. it takes time for RBIs monetary policy to show impact on credit market. Just like medicines also take time to
show impact on body.
Rajan felt that 45 days was too soon, if we wait for a few more days, we get better picture of our previous policys
impact and then new policy could be designed more effectively. Hence 2 months. Uriit Patel recommended the same.
Monetary Policy Trend 2013
As such RBI did not relax the repo rate but still they injected truckload of cash in the system:
Tool Money injected in the economy
OMO 52,000 cr.
MSF, LAF, Repo 91,800 cr
Total (2013-14) 1,43,800 cr. injected
Open market operations (OMO) i.e. purchase and sale of Government securities by RBI . In above table, we can see
RBI would have paid ~52k crore to purchase G-sec from juntaa. (only then money will be injected- right!)
Liquidity adjustment facility (LAF) i.e. repo and reverse repo rate. (meant for all clients of RBI banks, Non-banking
financial institutions and both State and union Government)
Marginal standing facility meant only for Scheduled commercial banks. BUT RBI had to put some restrictions on it
to contain volatility in forex market, after rumor of Fed Tapering. (eg. For the given week, banks cant borrow above
0.5% of their net time and demand liabilities)
beyond this, the trend of monetary policies from 2008 to 2013, is already discussed click me
Survey observes:
Inflation should moderate during 2014-15
Then RBI will have freedom to ease the monetary policy i.e. reducing repo rate.
Monetary Policy trend Jan 2014 onwards
Lets check policies From Jan.2014 onwards
Time BankRate MSF Repo ReverseRepo SLR CRR
Dec 2013 9 8.75 7.75 6.75 23 4
Jan 2014 9 9 8 7 23 4
Rajan raised repo rate because core WPI had increased.
But Rajan promised he wont raise repo rate beyond 8%
After this he made no changes anywhere EXCEPT SLR in last two polices.

Bi-monthlyPolicy number 2014 BankRate MSF Repo ReverseRepo SLR CRR
first April 9 9 8 7 23 4
second June 9 9 8 7 22.5* 4
third August 9 9 8 7 22* 4
fourth Sept,30

*Why Rajan decreased SLR?
Decrease in statutory liquidity ratio = banks will have to invest less amount of money in Government securities (G-
sec).
Result? Theyll have more money to loan in other productive sectors of economy.
Why did RBI permit this? Because Government promised fiscal consolidation =reducing fiscal deficit.
Meaning, Government will borrow less in future and since Government plans to borrow less (via G-sec) therefore
Rajan decided to reduce SLR. Let the money be used for other sectors of economy.
Rajan Wisdom during press conference
My inflation targets are
Time CPI (Combined) Target
January 2015 8%
January 2016 6%
Im worried that inflation will continue BECAUSE
1. 60% chance of El-nino
2. Geo-political problems in Middle east (Iraq-ISIS, Israel-Palestine) and their negative impact on crude oil prices
3. IF Government INCREASES the MSP and fuel-fertilizer subsidies (for votebank politics)
My projections about GDP and CAD
Are
GDP growth %
2013-14 Below 5%
2014-15 5-6%
CAD projections: 2% of GDP
My reforms on Foreign portfolio investors
Wont permit them to invest in Government treasury bills. (difference between G-Sec and T-Bill is that T-bill has less
than 1 year maturity. G-sec more than 1 yearupto 20-30 years)
Ill simplify KYC norms for Foreign Portfolio Investors. (more on FDI, FII classification when we see ch.6 and 7 of
survey)
Financial inclusion and customer relations
Will expand the mobile banking network and Banking Correspondent (BC) network.
Will simplify KYC norms.
To reduce bank NPA, Ill make a comprehensive framework.
Banks should not levy penal charges for non-maintenance of minimum balance in ordinary savings bank account and
inoperative accounts, but instead curtail the services accorded those accounts until the balance is restored.
My reforms in forex market
Before after
Liberalised Remittance Scheme (LRS) quota: $75,000 per year $1,25,000
Only Indians can take currency notes upto Rs.10,000 outside India.Non-
residents visiting India are not permitted to take out any Indian currency
notes while leaving the country.
Increased this quota to Rs.25,000.
Even NRIs and foreign residents allowed
to take away this much currency from
India.
BUT Bangladesih and Pakistanis not
allowed.
Well see more on exchange rates during survey ch6 and 7.
RBI restructuring

Important for interviews, especially RBI grade B.
Timeline RBI restructuring plan
2013, November RBIs senior officials proposed re-structure plan.
2014, August RBIs board approved the structuring plan.
Existing departments
At present, RBI is made up of following departments
HRM
Banking Operations
Financial Markets
Payment and Settlement Systems
Banking Supervision
Currency Management
Secretarys Department
Internal Debt Management
Expenditure and Budgetary Control
Monetary Policy
Government and Bank Accounts
Non-Banking Supervision
Rural Planning and Credit
Statistics and Information Management
Economic & Policy Research
Inspection
External Investments and Operations
Information Technology
Foreign Exchange
Premises
Customer Service Department
Legal Department
Financial Stability Unit
Rajbhasha Department
Risk Monitoring Department
Department of Communication
Five clusters
Under Rajans restructuring Formula, All of above departments will be grouped into five clusters.
Cluster Head of the cluster
Monetary policy Dy Governor
Regulatory Dy Governor
Supervision Dy Governor
Financial market & infra. Dy Governor
Services: HRM, Expenditure, Budget control Chief Operating Officer (COO)*
This will help in better work division and coordination between various departments
Chief Operating officer (COO)
Hell head the Services cluster- dealing with Human resources management, RBIs own Expenditure and budget.
COO will be an an official of Deputy governor rank.
Problem: In the present RBI Act, only 4 Dy.governors can be appointed by Government of India.
So, Act has to be amended, to add fifth Dy. Governor and give him COO posting.
Staff Posting & promotion in clusters
At present ~17,000 employees in RBI
Under Rajan formula, an employee can be transferred only among the departments within same cluster.
Rajan will let the employees to pick their cluster- after assessing their CSAT aptitude.
But Staff union is apprehensive about their posting-promotion opportunities under the new cluster plan.
At present, 2 out 4 Dy.Governor posts are reserved for RBI officers. Union fears that if 5 Dy.Governors, Rajan will
give fifth job to outsiders like Nachiket Mor, instead of giving the promotion to any career-officer.
Union also fears Rajans plan for hiring outsiders as Chief general manager- Again less promotion chances for the
career-officers (recruited through Grade B officers exam).
Rajan trying to build consensus by holding video conferences with them.

- Mrunal - http://mrunal.org -
[Economic Survey] Ch4: Inflation- Trends in WPI, CPI, IIP & International market, Government reforms to combat
price rise
1. Prologue
2. [Act 1] Theory recap
3. [Act 2] WPI inflation trend: Survey points
4. [Act 3] CPI inflation trend: Survey points
5. [Act 4] IIP Trend: survey points
1. Mining and Power
2. Manufacturing
3. 8 Core industries in IIP
6. [Act 5] Trend in international market (2014-15)
7. [Act 6] How can Government fight inflation?
8. Appendix: Actual STUPID numbers WPI, CPI, IIP
1. Consumer Food Price Indices (CFPI)
2. IIP data growth compared to previous year
3. IIP over two years
4. IIP data compared to BASE year
Prologue
Chapter 4: Prices and Monetary Management. Three subparts
Monetary management, measures of money supply, Urjit Patel
Indexes Theory: WPI, CPI, IIP, Services index and others
Indexes Current: Survey observations on WPI, CPI & IIP, How to combat inflation.
Waitwhat happened to remaining chapters?
Ch. 8 to 13 published as articles.
Chapter 1 to 3; 5 to 7 available as powerpoint and videos. (Will release them as articles after prelims and its
unofficial answerkey.)
[Act 1] Theory recap
Make sure, youve read earlier part for the theory. Overall gist can be summarized in following table:

QUESTION WPI CPI IIP
HOW? Lespeyres formula same same
WHO? Economic advisor CSO CSO
WHEN? weekly & monthly monthly monthly
WHERE they get data? ministries, dept., industries NSSO and Postal workers ministries, dept, bodies
Components 3: MFG > Primary > Fuel 5 categories 3: MFG > Mining >electricity
types only one WPI Rural, urban, combined Sector wise and goods Usage wise.
items 676

682
base year 2004 2010 2004
CORE non-food manufacturing headline (food+fuel) 8 industries
Now, what does Economic Survey Chapter 4 say about these indexes?
[Act 2] WPI inflation trend: Survey points
WPI food inflation has remained persistently high during 2013-14,
Peak: 11.95% in 2013-Q3
Two reason: high inflation in food + fuel.
Food: high inflation in cereals, fruits, vegetables, and eggs, fish and meat. Reason: structural factors (APMC, hoarding)
and seasonal factors. + juntaas income increased hence buying more protein.
Fuel inflation has remained in double digits, because
1. Rupee weakened against dollar after rumors of Fed Tapering in 2013.
2. Global crude prices became volatile after geopolitical crisis in Iraq, Syria, Ukraine.
3. Oil marketing companies are allowed to revise retail prices of diesel upto 50 paise per month.
4. In many states, Electricity tariffs were revised, and increased.
Headline vs Core WPI inflation
Headline WPI
All components viz. primary, fuel and mfg.
Core WPI inflation
Only WPI of Nonfood manufacturing industries.
Headline WPI MINUS primary MINUS fuel MINUS food-mfg. industries
Core WPI inflation also increased because inflationary pressure within the chemicals, machinery and textile groups.
HSBCs purchasing managers index (PMI) also showing correlation with WPI core inflation.
Therefore looking at PMI trend, survey believes, that core-WPI will also increase in upcoming months.
[Act 3] CPI inflation trend: Survey points
Headline
CPI
All components. Here high inflation due to food items
Core CPI
Core CPI =Headline CPI MINUS food and fuel components.
Here, high inflation due to services-led components such as medical, education, household requisites.
Because food inflation, fuel inflation => demand for higher wages => service components become
expensive e.g. doctor, tuition teacher.
Housing
Housing is a component in CPI. Data shows that housing inflation has declined in recent months.
National housing bank (NHB)s RESIDEX gives us a better picture. According to RESIDEX- overall
price increased for all cities. Except Kochi and Hyderabad.
Economic Survey observation for 2013-14:
CPI inflation remained close to double digits during a large part of the year
Within CPI, Rural CPI inflation has been higher than urban
~50% of inflation in CPI is because food. (For last three years).
Within that, 80% of inflation coming from vegetables, cereals and protein items.
[Act 4] IIP Trend: survey points
For last two years, Industrial sector has lost momentum due to supply-side and demand-side constraints.
Slowdown in mining and manufacturing activity.
Slowdown in private investment, gross fix capital formation.
Now lets check a few specific industries within IIP
Mining and Power
Declined for the third successive year because
Coal Contributes ~40% of mineral output
Hardly 0.7% increase due to environment clearance issues.
Natural gas
KG-6 production down.
Decline: -13%
Iron
SC ban.
Later, ban lifted but global demand is low.
Power generation
Slight increase because of hydropower sector.
Manufacturing
Manufacturing = ~60% of industrial GDP. But slowed down because
1. Higher bank interest
2. Infrastructure bottlenecks
3. Low demand- both domestic and foreign
4. Inflation= input costs increased.
5. Automobile sector: Juntaas per capita income is low. So cant grow much even if we want.
6. Consumer durables sales declined. Especially, gems and jewellery, passenger cars, colour TV sets, and telephone
instruments.
7. Globally, one of the fastest growing manufacturing sectors= electronics. But we dont have technological edge like
S.Korea, China, Apple or Samsung.
8 Core industries in IIP
Within IIP, following 8 are core industries because theyve impact on almost all other economic activities:
coal, fertilizer, electricity, crude oil, natural gas, refinery products, steel, and cement.
Within that negative growth in: natural gas, crude oil.
Since construction activity declined => Steel-cement demand also down => production decline.
Overall, very low growth in 8-core industries
[Act 5] Trend in international market (2014-15)
Gold price will remain flat
Other Commodity market prices will either decline or remain flat.
Fuel supply should increase and price should decline.
Copper price will decline because Chinese demand will decline.
IMFs World economic outlook: INFLATION
Country AdvancedEconomies EmergingDeveloping
2013 1.4 5.8
2014 1.5 5.5
2015 1.6 5.2
Overall Price rise fall
As per above IMF-projections, commodity prices should fall, and WPI (headline) should decreased in 2014 and 2015. But
there are challenges:
More
inflation in
IF following happens
Food
Below normal monsoon due to El-Nino. 70% probability that El nino will occur. Rainfall will reduce to
93% of the average. (as per Meteorological Department)
Fuel
Higher crude oil prices due to geo-political situation in the Middle East. (Iraq-ISIS, Israel-Palestine).
Rupee weakens further, because of Fed tapering.
[Act 6] How can Government fight inflation?
Economic Survey hints following reforms:
1. Cut down Fiscal deficit, as per time-bound targets under the Fiscal Responsibility and Budget Management (FRBM)
Act.
2. Deregulate diesel prices, powersector reforms, and generally the move from administered to market-determined
prices.
3. This will raise inflation in short term but in long term, itll reduce fiscal deficit and thereby reduce inflation.
4. MNREGA doesnt improve productivity of the agricultural sector commensurately.
5. Raising MNREGA wages => shortage of farm labour => input cost increased, food supply decreased => food inflation.
6. Therefore, MNREGA should be restructured to create productive assets
7. Agriculture: MSP should be linked cost of production. FCIs Procurement should not be open-ended. Bring UREA
under NBS scheme. Give Fertilizer Subsidy to farmers instead of companies.
8. Some stages charge ~15% mandi tax, and use that money to pay bonus above MSP to farmer (for vote bank politics).
This practice must be stopped.
9. FCI should release grains in market to soften food inflation.
10. Government should reduce restrictions on agriculture exports.
11. Reform APMC Acts
12. Immediately take out fruits and vegetables from purview of the APMC Acts immediately.
13. How can RBI fight inflation? Ans. Urjit Patel Committee.
Appendix: Actual numbers WPI, CPI, IIP
Numbers not important but TREND is

WPI and CPI yearly trend
year WPI CPI combined (Rural +urban)
2012-13 7.35 10.21
2013-14 5.98 9.49

WPI and CPI monthly trend
Month WPI CPI (combined)
Jun-13 5.16 9.87
Jul-13 5.85 9.64
Aug-13 6.99 9.52
Sep-13 7.05 9.84
Oct-13 7.24 10.17
Nov-13 7.52 11.16
Dec-13 6.4 9.87
Jan-14 5.11 8.79
Feb-14 5.03 8.03
Mar-14 6 8.31
Apr-14 5.55 8.59
May-14 6.01 8.28
Jun-14 5.43 7.46
This is inflation corresponding to previous year. Example- In June-2014 the CPI was 7.46% higher than what it was
in June 2013.
and in June 2013, CPI was 9.87% higher than what it was in June 2012 and so on
If you DIRECTLY compared to BASE YEAR 2010, then CPI for July 2014 is 149.6! Meaning prices ~50% higher
than what they were at 2010 (Base price 100)
Consumer Food Price Indices (CFPI)
year Rural Urban Combd.
Jul13 10.66 12.52 11.22
Jul14 9.85 8.45 9.36
IIP data growth compared to previous year
June 2013 -1.8
June 2014 3.4
Interpretation: IN June 2014, the production Quantity increased by 3.4 compared to June 2013s level. AND in June
2013, production quantity declined by -1.8% compared to June 2012 and so on.
IIP over two years
IIP sectors 2012-13 2013-14
Mining 2.3 0.6
Manufacturing 1.3 0.8
Electricity 4 6.1
overall 1.1 -0.1
IIP-goods Usage wise 2012 2013-14
Basic Goods 2.4 2.1
Consumer non-durable 2.8 5
Intermediate Goods 1.6 3.1
Capital Goods -6 -3.6
Consumer durable 2 -12.2
overall 1.1 -0.1
Interpretation: compared to consumer durables produced in 2012, there was -12.2% decline in 2013.
this doesnt mean decline in Price, it means decline in production quantity
IIP data compared to BASE year
Month 2013 2014
Apr 166.5 172.2
May 166 174.3
Jun 164.9 170.5
Jul 171.4

Aug 165.4

Sep 167.5

Oct 169.6

Nov 163.6

Dec 179.5

Jan 184

Feb 172.7

March 193.3

Interpretation: if in 2004, industrial production was 100 units then in June 2014, it increased to 170.5 units. i.e. 70.5%
increased. so here positive but compared to last year, overall mostly negative. (Observe previous table).

- Mrunal - http://mrunal.org -
[Economic Survey] Ch8:
National
market for Agriculture, Reforms in APMC, Commodities market, NSEL crisis
1. Prologue
2. Indian Agriculture: Strength/potential
3. Why focus on Agriculture
4. R1: APMC Act
5. Why do we need a National Market for Agriculture?
1. How to setup national market for Agriculture?
2. Budget 2014 announcement
6. R2: Commodity market
1. What is NSEL crisis?
2. Who is Jignesh Shah?
3. Steps taken to fix NSEL crisis
4. Why do we need Commodity markets?
5. Commodity trading Policy uncertainty
6. WDRA
7. R3: Productive vs Production
8. R5: small-marginal farmers= less productive?
9. R6: Farm Mechanization = why necessary in India?
10. Overall Reforms required
Prologue
Economic Survey 2013: Chapter 8 on Agriculture. 4 subparts.
1. Schemes and budget 2014 announcements
2. Food Subsidies: MSP, Nutrient based subsidy, FCI, Bali problem.
3. Overall reforms- APMC, National market, Commodity market etc. (Mostly, mains fodder but not much for prelims, so
you may skip this one for now.)
4. El-Nino, its impact on Indian agriculture. (Old article but updated with points from Economic Survey).
Indian Agriculture: Strength/potential
1. Share in GDP: 14% (Service > Industries > Agriculture)
2. Share in employment: ~49% (Agri > Services > Industries)
3. 1st rank in Milk (17% of world production)
4. 1st rank in Mango, banana, coconut, cashew, papaya, peas, cassava and pomegranate
5. Largest producer and exporter of spices
6. Overall, second largest producer of vegetable, fruits and fishes
7. Weather permits multiple crops throughout year.
Why focus on Agriculture
BRICS study: 1% Growth in Agro=2-3 times more effective in poverty removal (than equivalent growth in industries
or service sector).
Canada, US: mechanized agriculture, large track of land = they lead in wheat and corn production.
India has large population = can focus on labour intensive high value agriculture example saffron, fruits and vegetables.
India can be a producer and exporter in all these areas = high income for everyone=a livelihood in agriculture does not
have to be a promise of poverty.
Aids in women empowerment. HOW?
o ~10% of total rural households headed by a woman.
o Women play productive roles in all facets of the agriculture, dairy and sericulture.
o Therefore agri reforms => income rise => women empowerment.
R1: APMC Act

What is APMC act, how does it lead to harassment of farmers, what is Model APMC act.all topics covered in detail under
[Food processing] series, click me.
Why do we need a National Market for Agriculture?
After LPG reforms in 1991, Industrial sector allowed to buy from, and sell to, anyone in the world
But Under State APMC Acts, the Indian farmers are still required to buy and sell only in the government-designated
Mandis known as Agricultural Produce and Marketing Committees (APMC).
Farmers are not allowed to sell their produce directly to the consumers.
The monopoly of government-regulated mandis has prevented development of a competitive agriculture marketing
system in the country.
These Mandis dont even have proper physical infrastructure = fruits/veggies damaged + nuisance of middlemen = they
charge commission and involve in hoarding of onions and potatoes.
Ultimate result: food inflation.
To solve this issue- union Government circulated the model APMC Act 2003 to states. Some states adopted it, but
overall, even the reformed APMC act has not solved the problem.
Therefore, Survey recommends a national market for food / agriculture
Jaitley budget promises to do the same.
Challenge: To create a national market the central government needs to use powers under the Union List and the
Concurrent List of the Seventh Schedule of the Constitution to end the APMC.
How to setup national market for Agriculture?
Survey recommends following steps:
1. Parliament should pass a new law, to setup a national market for agriculture.
2. Parliament should also create a statutory Commission to monitor this national market, to prevent any cartels and anti-
competitive practices.
3. Itll override statewise APMC laws.
4. Farmers and traders will be free to buy/sell across state borders.
5. APMC mandis can continue functioning but farmers will have no legal obligation to sell produce in them.
6. Also, Permit sale and purchase of all perishable commodities such as fruits and vegetables, milk and fish in any market,
and exempt market fees on them.
7. Reduce commission charges on agricultural/ horticultural produce.
8. Encourage self-help groups (SHGs) to organize farmers markets near urban centres, malls, etc. that have large open
spaces. At least one agriculture market within 5 km radius.
Existing direct marketing initiatives
Apni Mandi Punjab
Uzhavar Sandhai Tamil Nadu
Shetkari Bazaar Maharashtra
Hadaspur Vegetable Market Pune
Rythu Bazar Andhra Pradesh
Krushak Bazaar Odisha
Kisan Mandi Rajasthan
If company helps setting such direct agriculture markets, count it under corporate social responsibility (CSR)
activities under Companies Act 2013. (so company can fillup their mandatory 2% CSR quota).
Setup supply chain infrastructure- similar to the e-Choupal initiative of ITC Ltd.
Tie-up with commodity exchanges to help farmers know spot and futures prices of agricultural commodities. So, they
can decide next crop accordingly.
Budget 2014 announcement
We will work closely with the State Governments to re-orient their respective APMC Acts.
This will help setting up private market yards/ private markets.
Well encourage state governments to develop Farmers Markets in town areas to enable the farmers to sell their
produce directly.
R2: Commodity market

Farmer deposits his wheat in a warehouse.
He gets a warehouse receipt.
o He can mortgage this warehouse receipt to a banker to get loans. OR
o He can trade this WR @Commodity exchange.
In commodity exchange there are variety of trade agreement
Type wheat price interpretation
T+2 Rs.1400 Ive to pay within 2 days to farmer, and he gives me the WR.
T+20 Rs.1800 Ive to pay within 20 days, this much money and farmer must be give WR.
Usually, longer duration contract has higher price.
But Farmers usually sell on shorter duration because they need quick money for next crop. So if I bought a WR in T+2
and sold to another guy @T+20, I would make profit. Well and good.
What is NSEL crisis?

Game collapsed when FMC ordered them to settle all contracts within ten days (T+10)
NSEL is a commodity exchange platform. In BSE, shares are bought and sold. Similarly @NSEL, the warehouse
receipts are bought and sold.
NSEL launched an E-series platform to do online trading of commodities.
Problem comes with entry of middlemen- they asked investors to give money, with following promise
1. We use your money to buy WR (from farmers @cheap cost).
2. We sell those WR to other parties (when prices are favorable), and make big profits for you. (This is one way how
hoarding happens, because someone has stock in warehouse, but not selling it in hope of higher prices in future).
Who is Jignesh Shah?
NSEL => parent company FTIL => its boss Jignesh Shah.
Jignesh Shah and the middlemen connived and began make contracts using fake warehouse receipts e.g. T+20,
T+30. etc.
Their gameplan was to arrange genuine receipts within those 20-30 days (using investors money).
This scam ran for long. Something like this- you go to a bookstore, owner lies to you Ive book in godown, just wait
for 20 minutes.and in the meantime, his assistant arranges book from another store.
NSEL CEO Anjani Sinha & other executives turned blind eye, because NSEL would earn ~2% commission on every
contract. (And Jignesh was boss of their parent company.)
How did the scam collapse?
July, 2013: FMC sensed some wrongdoing ,and felt long duration contracts to be culprit behind food-inflation.
FMC banned such 20-30 days-walla contracts. Ordered the traders to settle within 10 days i.e. T+10 system.
Obviously Jignesh gang couldnt arrange genuine receipt within short time, thus the game collapsed.
Size of the NSEL crisis
Brokers such as Motilal Oswal, Indiainfoline have made contracts worth Rs.700
Total contracts worth 5500+ crore
Total investors more than 15000.
Steps taken to fix NSEL crisis
1. NSEL began auctioning commodities from its warehouses. But its not generating sufficient money to settle the claims
of investors.
2. Government banned E-series system of NSEL and formed panel under Arvind Mayaram.
3. Forward market commission started investigation against NSEL. Gave directives to all commodities exchanges
regarding board of directors appointments and investment limits.
4. Chindu transferred the control of FMC from consumer affairs ministry to finance ministry.
5. Income tax department began investigation against NSEL board members, and their allied companies.
6. NSEL CEO, Anjani Sinha arrested and chargesheeted.
7. May 2014: Jignesh Shah arrested.
Anyways, back to the topic. so far we learned that commodity market leads to speculative hoarding and scam. So, should be
ban commodity market system altogether? Answer is no.
Why do we need Commodity markets?
Gives bargaining power to farmer.
Commodity market, acts a messenger of future price trends.
The contracts for successive months- they signal future price trends. Government can take pre-emptive action,
whenever required
BUT Information asymmetry is a major market barrier. Big traders know world agro-price movement, farmers dont.
Thereby traders buy cheap and sell high.
If we want the farmers to take informed decisions about cropping pattern, marketing strategies, price bargaining.then
they MUST know the price movements in commodity market.
Therefore, the FMC is implementing the Price Dissemination Scheme via AGMARKNET system.
It provides real-time prices on 1700 Mandis, Kisan Vikas Kendra and other places where farmers make frequent visits.
Commodity trading Policy uncertainty
In recent years, Government suddenly puts ban and lift bans on future trading of onion, potato, sugar etc.
This has hampered the development of commodity market as a platform for price discovery. Consequently,
o Farmers cannot make rational decision on cropping pattern and investment intensity of cultivation or price
bargaining.
o And food processing companies cannot get necessary supply of raw material.
Thus, despite being a leading producer major agricultural commodities, India has not taken on the role of a global price
setter.
Economic survey recommends Government to have a stable policy on commodity trading and export.
WDRA
Warehousing Development and Regulator Authority (WDRA)
Statutory body to regulate warehouses and their Negotiable warehousing receipts for 40 agricultural commodities
including cereals, pulses, oilseeds, and spices.
FMC directed all commodity exchanges to register with the WDRA. (Because NSEL crisis = traders used fake
warehouse receipts to make future contract.)
Warehouse Development and Regulatory Authority (WDRA) has begun setting a public information setup. So all
farmers, traders, public can get information about performance of warehouses across the country.
R3: Productive vs Production
Our agriculture productivity are far below global standards
Rice-wheat has hardly increased after green revolution.
YET, rice-wheat production has increased. How? because more area under cultivation because of higher MSP +
cheaper Urea.
So, is it good or is it bad?
Area
More Area under rice-wheat = less cultivation of oilseeds and vegetable = food inflation comes, anyways.
More area under cultivation = reduced forest cover, water table.
+mindless use of fertilizers = soil fertility declined in Punjab, Haryana.
Therefore, we must focus on R&D to increase agro. Productivity RATHER than bringing more area under
cultivation.
MSP
Wheat + rice production increased because government raised MSP.
But this also increased the amount of rotten grains, due to inefficiency in FCI and PDS.
Therefore, DESPITE bumper production of foodgrains, 25% of all undernourished people in the world are
living in India.
Besides, Government only focuses on giving rice-wheat to poor. But to combat malnutrition, youve to increase
consumption of milk, fruits and vegetables as well.
THEREFORE, Survey recommends giving DBT / Food stamps to poors, to let them decide what to eat.
Focus on Agro research to raise productivity
>85% agriculture investment comes from private sector. But within that, Private sector doesnt contribute much to
investment in Agri.research.
Therefore Government needs to allot more money here and Empower Indian universities to produce world class
research.
R5: small-marginal farmers= less productive?
Empirical studies indicate that small land holdings are not a deterrent to increasing productivity.
Because productivity depends on modern inputs, appropriate technology, and innovative supply chain.rather than on
farm size.
Therefore, Government should organize the small and marginal farmers through farmer producer organizations (FPOs)
and provide market linkages to them.
R6: Farm Mechanization = why necessary in India?
Although India is one of the top countries in agricultural production, farm mechanization ~25%, against >90%
mechanization in first world.
Farm mechanization can raise productivity by ~80,000 crore rupees per year. (ICAR report).
Farm mechanization can generate employment for rural youth and artisans for the production, operation, service and
maintenance of farm machines.
Farm labour wages have increased (due to MNREGA created labour shortage). Therefore, higher levels of farm
mechanization are necessary for sustaining productivity and profitability.
although easier said than done because
o Different soil and climatic zones,
o Small land holdings with limited resources.
Overall Reforms required
1. a National Common Market for agricultural commodities with uniform taxes in the domestic market
2. Stable policy for agricultural export and commodity trading.
3. Focus on the rural non-farm sector, manufacturing sector, and labor-intensive segments of services. This will reduce
no. of farmers => land consolidation =>Mechanization.
4. Crop protection and insurance schemes need to be revamped.
5. Fresh look at policies towards FCI procurement, marketing, transport, storage, and processing.
6. To farmers: give subsidy via Direct Benefit Transfer (DBT). Bring Urea under Nutrient Based subsidy regime.
7. To poors: food stamps / DBT, instead of giving rice+wheat.
If above steps taken then possible to sustain the 4% growth rate in agriculture.




- Mrunal - http://mrunal.org -
[Economic Survey] Ch9: Public Sector Undertakings, CPSE-ETF, Disinvestment, NIF, Mini-Nav-Maharatna
1. Prologue
2. [Act 1] PSU Classification
1. Classification #1: where they operate?
2. Classification #2: How they were born?
3. [Act 2] Disinvestment
1. National investment fund (NIF-2005)
4. [Act 3] CPSE-ETF Exchange traded fund
1. How is CPSE ETF different from Mutual funds?
5. [Act 4] Various Ratna for PSU
Prologue
Economic Survey Ch.9 Industrial performance. Four subparts:
1. Industries, Acts, Policies, excise and customs duty
2. PSUs, Disinvestment, CPSE-ETF
3. Companies Act 2013
4. MSME sector

[Act 1] PSU Classification
Classification #1: where they operate?
STRATEGIC NON-STRATEGIC
1. Arms, Ammunition, defense equipment Those who are not under Strategic
2. defense air-crafts and warships
3. Atomic Energy (except nuke energy for agriculture, medicine and non-
strategic industries)
4. Railways transport
category

Classification #2: How they were born?
GOVERNMENT COMPANIES PUBLIC CORPORATIONS
ONGC, SAIL, Coal India ltd etc. LIC, Air India, IDBI, UTI etc.
registered under companies act, Government owns >50% shares setup under an act of parliament /Vidhan Sabha
Government decides majority of the board of directors.
(independent directors will have to be appointed as per
Companies Act 2013)
Government decides ALL Board of directors. the
independent director provision under Companies act
doesnt apply
Audit by CAG appointed private auditors. (with term limits as
per Companies Act 2013)
CAG directly audits using his own staff (some exceptions
to certain large corporations).
Their Employees are not public servants or
Government employees.
Their disciplinary rules, salary-pension benefits are
separate from Government employees.
same
RTI applies same
Dept. of public enterprises (under Heavy ministry) acts as nodal
agency
same
Their top executives are selected by Public sector enterprises
selection board (PSEB) under personnel ministry.
same
What about Railways and Postal department?
Viewpoint #1:
Railways and posts are departmental undertakings.
And since all departmental undertakings are public sector undertakings, as per the classification given in Laxmikanth
(Public Administration book) and NIOS courses.
Therefore, railway, posts, also PSU or PSE.
Viewpoint #2:
Railways and Postal department are not public sector enterprises (PSE) or public sector undertaking (PSU) because of the
following reasons:
1. Department of public enterprises has no jurisdiction over them.
2. Their manpower and finance are directly controlled by respective ministries.
3. Their top Executives are Group-A Government officers recruited through UPSC civil service exam. [And not through
Public sector enterprises selection board (PSEB) under personnel ministry.]
4. If railway and post were PSUs then parliamentary Committee on PSU would have been examining them.
5. But railways under parliamentary standing Committee on railways; Postal under parliamentary standing Committee
Information Technology.
Names not important except for PSU interviews
Top profit maker Top loss makers
1. The Oil and Natural Gas Corporation Ltd
2. National Thermal Power Corporation Ltd
3. Fertilizer Corporation of India Ltd
4. Coal India Ltd
5. Bharat Heavy Electricals Ltd
1. Bharat Sanchar Nigam Ltd
2. Mahanagar Telephone Nigam Ltd
3. Air India Ltd
4. Chennai Petroleum Corporation Ltd
5. Hindustan Photo Films Manufacturing Co. Ltd
Overall 277 Central public sector enterprises
Out of them ~80 loss making.
Problems with PSUs REFORMS TAKEN
Overstaffed. cant hire and fire easily like private companies
Voluntary retirement scheme- VRS
APM: Administered pricing mechanism- over coal, steel, cement,
fertilizer petroleum products etc.
Government began deregulating the
prices- example petroleum, steel, cement
survey recommends Government to
deregulate coal prices as well
Since Government is majority shareholder- constant political interference
in board appointments, policy decisions, factory locations, product pricing
etc.
disinvestment
operational flexibility to Miniratna,
Navratna and Maharatna PSUs
[Act 2] Disinvestment
Mind the money flow in annual financial statement
Revenue Part: Annual financial statement
(Non-Tax) Receipts Expenditure
interest from loans given to PSU
dividend from shares owned in
PSU
1. Cost of running the department of disinvestment, Department of Public
Enterprises etc.
2. grants () given to PSUs
Capital Part: Annual financial statement
Receipt Expenditure
1. money earned from selling PSU shares aka Proceeds from disinvestment loans given to PSUs
2. when PSU repays loan principal, counted here. (interest payment in revenue reciept)
Current skeleton framework of disinvestment comes from UPA-Is Common Minimum Program
1. Department of Disinvestment will look after this matter.
2. Well not disinvest from strategic Public sectors viz. arms, ammunition, defense equipment, railways and atomic
energy.
3. Well not privatize the profit making PSU. Government will control atleast 51% shareholding in them
4. Well not disinvest Navratna PSU
5. Well close / sell off the loss making PSUs, with adequate compensation to workers.
6. Well setup Board for reconstruction of public sector enterprises (BRPSE) + National investment fund.
National investment fund (NIF-2005)
Disinvestment = when Government sells its shares of Public sector undertaking.
Obviously, Government would earn money from this share-selling.
This money doesnt go into Consolidated Fund Of India
It goes to National investment fund (under Public accounts of India), therefore, outside parliament control.
Three fund managers look after NIF viz. UTI, LIC and SBI
From NIF, money goes into
75% into sarkaari schemes- MNREGA, health education, JNNURM etc.
25% into reviving / expanding other PSUs
Above 75:25 rule continued till 31st March 2013. After that, NIF Money is used for following purposes
buying shares of CPSE to enture 51% sarkaari ownership
recapitalizing sarkari banks and insurance companies
Investing in EXIM bank, NABARD, Regional rural banks,
Uranium corporation, Nabhikiya Vidyut Nigam
Metro projects and Indian railways capital Expenditure.
And Government budget will decide where to spend money among these sectors. For Budget 2013, NIF money was spent on
Bank recapitalization and Indian railways.
Disinvestment targets
Budget 2013 Rs. 40,000 crore but #EPICFAIL
Budget 2014 ~63,000 crores.
[Act 3] CPSE-ETF Exchange traded fund

CPSE-ETF = a novel method of doing Disinvestment
Government takes out its shares of TEN Central public sector enterprises (CPSE) ONGC, CIL, GAIL etc. worth total
3000 crore rupees.
gives them to fund manager Goldman Sach.
Goldman Sach packs these shares into a box. Then, he cuts off this box into smaller pieces, each piece sold for Rs.
17.45 as new fund offer.
You can buy these pieces (minimum order has to be Rs.5000)
if youre first time investor, you can even get tax benefit under Rajiv Gandhi Equity Savings Scheme.(upto Rs.50k)
Later, you earn dividend (From the profit of those CPSE companies).
if you dont want to wait for the dividend, simply sell your piece to another guy in the secondary market/stock
exchange (BSE, NSE). (July rate Rs.26 for each unit).
Hence these are called Exchange traded funds (ETF)
and since the original shares were of Central public sector enterprises (CPSE)=> hence we callem CPSE-ETF.
How is CPSE ETF different from Mutual funds?
Mutual fund CPSE-ETF
no such free offer
Initially Goldman sach made an offer- if you buy 15 ETF units, they give you 1 unit
free. (but with caveats on investment limit etc.)
When you return your mutual fund
UNIT to the fund manager, hell
repay CASH.
when you return your ETF, Goldman SAch wont give you CASH, hell give you
shares (of those CPSE companies), then you can sell them in secondary market (at
BSE/NSE etc) and recover the CASH
Fund manager takes higher
Commission than ETF manager
lower commission (meaning more return for you).
1963: UTI was the first mutual fund
company in India
1993: ETF launched in USA
2002: ETF launched in India
SEBI Public listing norms
Minimum public shareholding
Non PSU (listed) public ltd. company 25%
PSUs 25% within next 3 years. (Earlier 10%)
So in other words, Government shareholding in PSUs, will decline to atleast 75% in the days to come.
Since Government will have to sell its shares= automatic disinvestment = ~60,000 crores will be earned = less fiscal
deficit.
May be Jaitley himself secretly told SEBI to order this? One can come up with many conspiracy theories.
Related topic: PJ Nayak Committee for reducing Government shareholding in Sarkaari banks. But well see that under
chapter on financial intermediaries.
[Act 4] Various Ratna for PSU
Cost benefit of mugging up this topic= bad. But putting for the record.
Miniratna
two categories: CAT1 and CAT2
Common condition: must have made profit in last 3 years.
then further classification, based on how much profit they made
common benefit: capital Expenditure without Government approval
Miniratna CAT1 CAT2
condition
30 cr. profit in any one year
profit all three years
positive networth
Expenditure
freedom
500 crore or upto their whichever higher 300 crore or 50% of their networth
examples Airport Authority of India, Antrix (ISRO), BSNL
HMT, Mineral Exploration Corporation Limited
etc.
Navratna PSU (1997)
CONDITIONS BENEFITS
1. already has miniratna cat1 status
2. MoU with Government- has very good or
excellent ratings
can invest 1000 cr / 15% of networth in a single project-
without Government approval
Examples: BEL, Hindustan Aeronautics, MTNL, Neyveli
3. 60 out of 100 marks in various criterias
4. 4 independent directors in the board
Lignite etc. total 17 as of June 2014.
Maharatna PSU (2010)
CONDITIONS BENEFITS
already has navratna status
significant global presence
listed on Indian stock exchange with minimum public
shareholding as per SEBI rules (earlier 10%, new limit
25%)
in the last 3 years
1. turnover >25,000 crores
2. net worth >15,000 crores
3. net profit after tax >5000 crores
can invest 5000 cr / 15% of networth in a single
project- without Government approval.Full List (7)
BHEL, SAIL, GAIL
NTPC, Coal India
ONGC, Indian oil


- Mrunal - http://mrunal.org -
[Economic Survey] Ch9: Micro Small & Medium enterprises (MSME), Definitions, SSI reserved items, SIDBI,
SIDF, Sick industries, Budget 2014
1. Prologue
2. [Act 1] MSME Basics
1. Definition: MSME sector
2. Definition: Cottage vs Village industry
3. Definition: organized vs unorganized sector
4. Problems of these industries:
3. [Act 2] MSME Government initiatives
1. Public procurement policy
2. SIDBI, SIDF and NEF
3. Taxation, Subsidy, Schemes for MSME
4. Items reserved for MSME sector
5. Budget 2014: MSME related announcements
6. Budget-Textiles / handloom related
4. [Act 3] Sick industries
1. IIFB (closed)
5. [Act 4] Survey Summary: MSME reforms
Prologue
Economic survey chapter 9. Industrial Performance. Three subparts
Companies act and corporate governance
Policies, PSUs, excise and custom duties
MSME sector
[Act 1] MSME Basics

Definition: MSME sector
Initial classification based on Abid Hussain committee.
Latest classification based on MSME Act 2006
Classification Mfg. Sector Service Sector
criteria investment in plant and machinery equipment
MICRO upto 25 lakhs upto 10 lakhs
SMALL >25 lakhs >10
MEDIUM
>5 cr.
Upper limit 10 cr. (proposal to raise it to 20 crores)
>2 cr.
upper limit 5 cr.
distribution 32% of MSME are in mfg. sector 68% of MSME are in service sector
>55% of MSME located in rural area
have shown consistent growth above 10% since 2010
Definition: Cottage vs Village industry
Cottage industry village industry
family members managing it
no hired employee.
negligible capital investment
Handmade production using their own tools and
material.
in area below 10,000 population
less than Rs.15,000 capital investment (per
worker)
Definition: organized vs unorganized sector

Organized sector unorganized sector
~17% of workforce here ~83% workforce here. (NSSO-2011)
establishments which are covered by
1. Factories Act, 1948
2. Shops and Commercial Establishments Acts
of State Governments,
3. Industrial Employment Standing Orders
Act, 1946 etc.
not covered under those acts/orders
workers get social security benefits- EPF, maternity
benefit etc.
as such they dont get.
but 2008: Government enacted Unorganized Workers Social
Security Act 2008
under this act, Social security boards setup at national and
state levels.
2010: Swavalamban scheme- Government makes contribution
in NPS account of unorganized laborers.
permanent employment (in most cases)
casual labor. high mobility, lower bargaining power
dont get protection by trade unions
Problems of these industries:
Common to MSME, cottage and village industries
Value addition to raw material is very low because they lack technology and skilled manpower.
Small size = no economies of scale = high cost of operations, transport and raw material. Hence MRP wise cannot
compete with MNCs. e.g. Tide washing powder (P&G) vs. some small scale detergent company
Electricity supply, market connectivity poor.
Weve learned the definition and problems of MSME, now lets check Government initiatives to help them
[Act 2] MSME Government initiatives
Public procurement policy
applicable from 2012- for three years.
applies to every central ministry, department and PSU
annual target 20% of their total purchase from MSME sector
SC/ST within those 20%, 4% procurement from MSME owned by SC/ST entreprenurs.
SIDBI, SIDF and NEF
SIDBI
one of the four All Indian financial institution (other three are NABARD, EXIM and NHB)
Owned by consortium of SBI, LIC, IDBI and other public sector financial intermediaries.
setup in 89, administers SIDF and NEF
SIDF
small industries Development fund (SIDF)
under SIDBI
when foreign banks less than 20 branches, cannot meet RBIs Priority sector lending target (PSL), theyve to
contribute money to this fund
money used for refinance, expansion; rehabilitation of sick industries etc.
NEF
National equity fund
Purchases shares of small industries.
So in a way they provide easy money/capital/finance to the company.
Because in shares/equities- the company will have to repay dividend only if it makes profit, unlike the bank
loans.
Taxation, Subsidy, Schemes for MSME
List not exhaustive
Excise Duty MSME upto Rs. 1.5 crore turnover are exempted from Excise duty payment
Service Tax
doesnt apply, if firm selling
services
less than Rs.10 lakh in the given year.
Capital Subsidy upto Rs.15 lakh for purchasing plant and machinery
India Inclusive Innovation
Fund
to promote grassroot innovations related social sector- health, education, rural Development etc.
VC for SC
Venture capital fund for Schedule caste entreprenurs. managed by IFCI [Industrial Finance
Corporation of India]
UdhyamiMitra
Rajiv Gandhi udhyami mistra yojana
Helps getting NOC, legal compliance, capital, training, plants-machinery-technology etc.
to startup entrepreneurs.
thus saves the new players from redtape and harassment
runs helpline
Credit guarantee
Up to 1 crore loans to Small scale industry- without any collateral/mortgage.
bank gives the loan, MSME ministry takes the Guarantee that given businessman will
repay the loan, else well repay.
This increases bankers confidence = hassle free loans to small businessmen.
marketing assistance provides information, workshops to connect buyers with manufactures
SIDO
Small scale industries Development organization provide research, training, technical
assistance to those entrepreneurs
Cluster
MSE- cluster Development program its similar to giving common support infrastructure in
SEZ and mega food parks.
Khadi board Khadi and Village Industries Commission, statutory body under MSME ministry
Coir board statutory body under MSME ministry.
nationalawards
for entrepreneurs in 3 categories
1. MSME
2. Khadi and village
3. coir
Reserveditems only Micro and small enterprises allowed to produce 20 items.
Items reserved for MSME sector
Pickles & chutneys
Bread
Safety matches
Fire works
two edible oils (without solvent extraction) -Mustard oil, Ground nut oil
Wooden furniture and fixtures
Exercise books and registers
Wax candles
Laundry soap
Agarbatties
Glass bangles
Steel almirah
Rolling shutters
Steel chairs, tables, furniture
Padlocks
utensils- stainless steel, aluminum
if a non-small scale industry wants to launch above products, theyve get license + must export 50% of annual
production.
Exempted: Companies in SEZ and Export processing zone (EPZ).
Budget 2014: MSME related announcements
Bankruptcy
Entrepreneur friendly legal bankruptcy framework will also be developed for SMEs to enable
easy exit.
Committee
SCs, STs and OBCs own majority of MSME enterprises.
Therefore, Government will setup a committee on how to provide easier finance to MSME.
This Committee will have members from Finance Ministry, Ministry of MSME, RBI to give
concrete suggestions in three months.
Related topic: in 2013, Government had setup R.S. Gujaral committee to boost MSME exports.
Incubation
District level Incubation and Accelerator Program
Incubation of new ideas and providing necessary support for accelerating entrepreneurship.
MSME definition Ceiling will be raised so more industries can be brought under it.
Startup companies
Venture capital fund in MSME sector
10k crore
To provide soft loans and capital for start-up companies
technology centre
network
to promote innovation, entrepreneurship and agro-industry (200 cr)
MoU
(not in budget but under Modi regime)
Flipkart Karigaar Ke Dwaar to provide artisans sell their products on flipkart.com
Tata sons made knowledge partner of MSME ministry
Raymond will give tranining for mens garments mfg.
Budget-Textiles / handloom related
Will setup Textile mega-clusters in following places (200 cr):
1. Varanasi
2. Bareily
3. Lucknow
4. Surat
5. Kuttch
6. Bhagalpur
7. Mysore
8. Tamil Nadu
Budget 2014: Misc. announcements
Hastkala Academy
At delhi (30 cr)
For handloom, handicraft sector- will preserve and promote them.
P3
Pashmina Promotion Programme (P-3) in J&K. (50 cr)
Misc.
Crafts Museum
Trade Facilitation Centre
Textile Misc. Factoids:
Textile export ranking: China > EU > India (3rd)
4.5 crore employed, majority in unorganized sector.
[Act 3] Sick industries
1987: Sick industrial companies Act, based on Tiwari recommendations.
Definition of Sick industry:
Does not apply to micro and small enterprises.
applies to medium and large scale companies
registered under companies act, for minimum 5 years
making losses in this year and last year
Has eroded its entire networth / paid up capital.
What are the benefits of becoming of a SICK company? well Government provides financial help or help you shut down!
BIFR= board for industrial and financial reconstruction
statutory body: setup under sick industries act
Quasi-judicial body: decides whether a company is sick or not. Its decision is final and binding.
if a loss making company is declared SICK, its given three options
1. time extension to make net worth positive
2. revival package (from SIDF fund money from SIDBI)
3. Wind up the company.
IIFB (closed)
Industrial investment bank of India
Provided finance and technical assistance to revive the SICK industries. (after BIFR gave Certificate that given
company is SICK)
it was the fifth all India financial intermediary (AIFI)- other four were SIDBI, NHB, NABARD and EXIM bank
2012: finance ministry closed it down because hardly any positive impact.
[Act 4] Survey Summary: MSME reforms
# E-governance
1. Create a website with all the rules and regulations applicable to businesses across states and the centre.
2. Department of industrial Policy and Promotion (DIPP) implement E-biz module under National E-governance plan.
We can utilized it for this purpose
3. Minimize human interaction. Shift reporting/data submission to an online-only mode whenever possible, e.g. for
routine registration, repeated filing and reporting of information.
4. Ask State Governments to share best practices on business regulations- and adopt it at national level.
# less interference
1. Strengthen grievance redressal mechanisms against inspections- with clear norms and deadlines.
2. Give extension time to companies, to correct their fault instead of penalizing them immediately.
3. System for self-certification and third-party certification.
4. Review and remove outdated regulations
5. Reform the Apprenticeships Act of 1961.
6. Amend MSME act to help financially distressed companies
7. Long term: completely revamp Indian laws governing taxation, labour, environment, and safety.
8. Setup a productivity commission similar to Australian Productivity Commission. Itll serve a knowledge base, and
champion for business change.
# Land availability
1. Permit mixed use of residential and commercial properties. Otherwise, given the real estate inflation- the MSME
entreprenurs cannot expand.
2. Ask PSUs and departments to sell away their Surplus / unutilized land to MSME. The government could institute a
use it or lose it policy to free up this locked land.
#social security
1. Give wider social security and health benefits like New Pension Scheme (NPS) and Rashtriya Swasthya Bima Yojna
(RSBY).
2. Coupon system for casual workers- which grants them social security benefits.

- Mrunal - http://mrunal.org -
[Economic Survey] Ch9: Industrial Policy, Labor Reforms, Factories Act, Apprentice Act, Customs & Excise duties
in Budget 2014
1. Prologue
2. [Act 1] Industrial license & reserved sectors
3. [Act 2] Policies and Acts
1. P1: Industrial policy 1991
2. P2: National Manufacturing Policy 2011
3. A1: Factories Act 1948 / Bill 2014
4. A2: Apprentice Act 1961 / Bill 2014
5. F1: Fodder: Why India needs labor reforms?
4. [Act 4] Excise and Customs
1. Custom Duty in Budget 2014
1. #1: Electronics sector
2. #2: Energy related
3. #3: Mineral, Metal, Precious Stones
2. Excise Duty in Budget 2014
5. [Act 5] Stupid statistics and rankings
6. Epilogue
Prologue
Economic Survey Ch.9 Industrial performance. Four subparts:
1. Industries, Acts, Policies, excise and customs duty
2. PSUs, Disinvestment, CPSE-ETF
3. Companies Act 2013
4. MSME sector

[Act 1] Industrial license & reserved sectors

Desi Liquor, Tobacco Products, Defense Aerospace Electronics, Industrial explosive, Hazardous chemicals
Industrial License Required For Areas Reserved For Public Sector
1. Alcoholic Drinks
2. Tobacco & cigar products
3. Defense & electronics
aerospace Equipment
4. Industrial Explosives,
Including Matchboxes
5. Hazardous Chemicals*
1. Atomic Energy
2. Atomic Minerals
3. Rail Transport
Similarly, there are items reserved for MSME sector- bread, agarbatti etc. if large
company wants to enter, theyve to get license click me to know more.

*Hazardous chemicals that need license
Nitrocellulose
Guncotton.
Originally used in film reels but stopped due to explosive nature.
Used in pregnancy tests
Hydrocyanic acid
prussic acid (HCN)
Used in gas chambers for judicial execution in some U.S. states.
Phosgene
COCl
2

chemical (gas) weapon in WW1.
Making plastics and pesticides.
Phosgene > Methyl Isocyanate (MIC) >pesticides.
Methyl Isocyanate
(MIC)
CH
3
NCO
Union Carbide Company used Methyl Isocyanate (MIC) for making pesticides. (Brand name
Sevin)
3
rd
December 1984: Bhopal tragedy due to leakage of this gas.
[Act 2] Policies and Acts
Industrial policy,
National
Manufacturing Policy 2011, Factories Act, Apprentice Act.
P1: Industrial policy 1991
1948 Shyama Prasad Mukerjee declared Indias first industrial policy.
1956 policy revised- main focus on Public sector undertakings.
1991 LPG reforms, Narsimharaos new industrial policy.
Q. Whatre the salient features of new Industrial policy 1991? (200 words)
1. Liberated industrial licensing. Presently, only five sectors require license.
2. For the industries that donot require license- they only need to submit an industrial entrepreneurs memorandum to
Department of Industrial Policy and Promotion (DIPP), under commerce ministry.
3. Reduced the no. of areas reserved for public sector. (at present only 3)
4. FDI relaxed for many sectors.
5. NRIs allowed to invest upto 100% in majority of the industries.
6. Software technology parks, Electronic hardware technology parks etc.
7. HRD focus: gainful employment and optimal use of Human resources.
8. Provided disinvestment of PSU
9. Govt. signed MoU with PSUs giving them operational flexibility. Later Maharatna, Navratna, Miniratna categories to
give them further freedom depending on profit making. (more details PSU subpart of this chapters summary).
10. To facilitate merger and acquisitions Government relaxed the MRTP act (Monopolies and Restrictive trade practices
Act 1969) => later Government replaced this act with Competition Act 2002 and established a statutory body CCI
(Competition commission of India).
~160 words.
P2: National Manufacturing Policy 2011
Q. Write a note on the salient features of the national manufacturing policy 2011. (100 words)
Enhance share of manufacturing industries in GDP to 25%. (At present ~15%)
Create 100 million jobs over a decade.
Will setup manufacturing promotion board- to coordinate between union and states.
will simplify labor and environment laws => related topic factories bill and apprentice bill. (Given in separate section
in this same article).
will create enabling infrastructure via PPP => related topic REITs, INViTs under ch13, urban infra.
will create of national investment and manufacturing zones (NIMZ)
16 NIMZ announced, 8 along Delhi-Mumbai Industrial Corridor (DMIC)=> related topic industrial corridors under
Ch11.
Tax reliefs on venture capital funds to increase fund-flow to startup companies.
Funds to polytechnics for skill development
Focus industries
o employment intensive, produce capital goods, have strategic significance,
o sector where India enjoys a competitive advantage (e.g. IT, textiles)
o small and medium enterprises => related topic Government schemes for MSME.
o Public-sector enterprises => related topic Various Ratna. (in this same article)
A1: Factories Act 1948 / Bill 2014
1. GS2 syllabus: Government intervention in various sectors.
2. GS3 Syllabus: Changes in Industrial policy, their impact on industrial growth.
(GS3) Q. Write a note on the salient feature of the Factories Bill 2014 (200 words)
2010 Dr. Narendra Jadhav Committee to examine factory act
2014 Factories amendment bill as per Jadhav recommendations
First the definition of a factory
criteria Factories Act 1948 New Bill 2014
mfg unit where power used 10 workers 20
power not used 20 workers 40
1. Redefines factory as a manufacturing units where minimum 20 workers employed in a given year (for units using
power), OR 40 workers for non-power units.
2. Women workers permitted to do nightshift with safety provisions and home transport facilities.
3. Nightshift not permitted for pregnant / lactating mothers.
4. Women workers can work on moving / heavy machinery. But pregnant women and disabled workers cant.
5. Paid leaves reduced to 90 days (earlier 240!)
6. Each worker can do 100 hours overtime in every quarter (3 months).
7. Re-defined hazardous substances itll include any item that can cause physical or health hazards to any person,
animal, plant or the environment.
8. Factory can decide its own workweek. (doesnt have to be Monday to Sunday)
9. Factory must provide cool drinking water in hot weather, irrespective of number of workers employed.
10. Installed Power capacity will be measured in kilowatts. (Earlier horsepower)
11. Factory owner will have to maintain spittoons, washing facilities, drying lines, sitting facilities etc. But if he doesnt =>
compoundable offense i.e. he can do compromise with workers (victims), no need to waste court time in lengthy trial.
12. Factory owner has to open restrooms, lunchrooms if 75/more workers
13. Factory owner has to run canteen if 200/more workers
14. Factory expansion permitted via self-certification. Reduces the nuisance of inspections and bribes.
15. Even Union Government can make rules for factories. (Earlier only State Governments could do).
Overall, the new bill
1. Puts women workers on equal footing with men
2. Improves safety and facilities for workers.
3. Saves factory owners from getting arrested in minor issues. (Therefore, trade unions dont like this bill. NOT ONE
BIT.)
~300 words. But you may not recall all points in exam, so itll automatically FIT the 200 words limits.
A2: Apprentice Act 1961 / Bill 2014
GS2 syllabus: issues relating to Development and Management of human resources.
GS3 Syllabus: Issues relating to employment.
Q. Write a note on the salient feature of the Apprentice Bill 2014 (200 words)
by Labor ministry
To amend the original (And outdated) act of 1961
Minimum age of apprentice
non-hazardous industry 14
hazardous industry 18
Government will decide the number of apprentices in each industry
Government will provide the syllabus and equipment for PRACTICAL training, for specific trades.
However, companies free to launch new courses other than designated trades.
Companies can accept non-engineering graduates and diplomas for apprenticeship.
Companies free to fix work / leave period for these apprentices.
Multiple companies can come together to give common training. Can even outsource the basic training (for teens that
have received no institutional training e.g. grownup child laborers.)
After training, the apprentice will have to give a certificate-exam by National Council for Vocational Training (NCVT).
In case of violation Reasonable fines and inspection. To reduce harassment and inspection raj.
Web portal to file self-compliance reports.
Overall, new bill gives more flexibility to companies, and makes apprenticeship more attractive to youth, and will make them
more employable in future, thus helping India to reap its demographic dividend.
~160 words.
Moving on
F1: Fodder: Why India needs labor reforms?
India has 44 labour acts union Government and 150+ labor acts from state governments.
These laws have overlapping provisions= inspection-raj, Owner cant comply with one act without breaking/side-
stepping another law = bribery and inefficiency.
Industrial
DisputesAct1947
If company has >100 workers. The owner must seek Government permission before laying
them off / closing the firm.
To evade this, companies hire workers via Contractors = no social security, no EPF.
Even IT/Tech companies try to evade industrial dispute act, by hiring temporary staff from
supercontractors like Teamlease.
Apprentice Act
Companies get tax benefits and CSR benefits for giving training to teens.
But these young apprentices are made to work like a regular workmen/laborer.
They dont even get paid for overtime. And companies can remove them anytime.
So in a way, companies misuse apprentice act, to evade the archaic industrial dispute act (100 worker firing).
Ultimately both sides suffer.
o Worker doesnt give his 100% because, he is not permanent.
o Owner doesnt invest in his training /skill upgrade because he is not permanent = low skill, low output,
demographic dividend cant be reaped.
FactoriesAct 1948
Limits overtime in firms with more than 10 employees.
Even petty offenses like not installing a Spittoon = can lead to criminal cases registered
against owner.
Contract Labour Act,
1970
Companies with >20 workers have to setup cafeterias.
Government can decide what food is to be served!

Labour reforms in Rajasthan (2014)
Provision elsewhere Rajasthan
Owner has to get Government permission before firing employees if 100 workers 300
Trade union can be setup IF 15% workers join 30%
contract labour act applies IF workers more than 20 50
factories act applies to power units IF 10 20
factories act applies to non-power units IF 20 40
Q. If Union Government tables all these bills/acts in parliament then how can Rajasthan reform labor laws?
Ans. because Labour laws come into CONCURRENT list under 7
th
Schedule.
[Act 4] Excise and Customs
EXCISE DUTY CUSTOMS DUTY
on goods manufactured in India
on imported goods
on exported goods
as per Central Excise Act, 1944 as per customs Act 1962
Its an indirect tax under CBEC same
1. TobaccoYes
2. Hemp, opium, other narcoticsNO
3. Desi LiquorNO
4. Alcohol used in medicinal and toiletry preparations.yes (e.g. Deodorant,
mouthwash)

Custom Duty in Budget 2014
well setup 24/7 clearance facility on selected airports and seaports
Indian Customs Single Window Project for traders. So theyve to submit all documents at one site/office, and theyll be
forwarded to respective organizations, files will be cleared within given timeframe.
Result: Our ranking will improve in World Banks ease of doing business. At present top 3= Singapore, Hong Kong,
NZ. Indias rank slipped from 131 to 134 (2014).
#1: Electronics sector
import of custom duty
Cathode ray tubes (for TVs mfg by MSME, for poor junta) 0
LCD, LED panels (<19) 0
Other specific inputs in mfg. of these TV 0
Implications: cheaper TVs for poors and middleclass, boost in demand, boost in electronics sector and employment.
#2: Energy related
Already discussed in ch.11 energy but for the recap
RENEWABLE NON-Renewable
0% on import of certain specific
items used in solar plants.
5% on other plant/machinery for
solar, Bio-CNG plants
5% on wind mill steel rings
implications:
Boost to
clean energy
sector
Simplified tax regime on all variety of coal (2.5% custom duty and 2%
CVD). previously each had separate tax rates = disputes between companies
and CBEC
Raised clean energy cess on imported coal, peat and lignite (Rs.100 per ton)
=> more money for clean energy projects
#3: Mineral, Metal, Precious Stones
Bauxite Export: increased to 20% less exploitation of this mineral resource from India
Ship breaking: reduced (Steel) more orders from abroad
All type of cut/semi-processed diamonds
(2.5%)
Diamond export (pre-form): 0%
Earlier each had separate tax rates.Now simplified = less litigation between
traders and CBEC.
Baggage allowance
raised from 35,000 to 45,000
=aam junta can bring more items (for personal use) from abroad
while on tour/vacation
Excise Duty in Budget 2014
not important except for Stress interviews in Bank/MBA
Decreased increased
Chindus interim budget had reduced Excise duty on SUV, small
cars, two wheelers and mobile phones, for upto 30
th
June 2014, to
boost domestic companies.
Jaitley promised to continue it till 31
st
December 2014.
Tobacco products.
pan masala=16%
unmanufactured tobacco: 55%
Gutka=70%
cigarette less than 65mm=72%
Implications: less demand, less cancer. Atleast
in theory.
food processing and packaging machines
carbonated drinks
Implications: less demand, less weight
gain and lifestyle disorders.
footware upto Rs.500 = 0%, upto Rs.1000=6%
Smart Cards

Overall (not important)
Absolute Earning Custom Duty Excise Duty
we earned this much in 2013 1.75 lakh crore 1.79 lakh crore
we hope (estimate) to earn this much in 2014 2.02 lakh crore 2.07 lakh crore

Ranking (important)
2013(Actual) Corporation > IT > Excise > Custom > Service > Wealth
2014(Estimate) Corporation > IT > Service > Excise > Custom > Wealth
[Act 5] Stupid statistics and rankings
share in GDP services > Industry > Agro
share in employment Agro > services > Industry

8 Core industries in IIP
1. coal
2. fertilizer
3. electricity
4. crude oil
5. natural gas
6. refinery products
7. steel
8. Cement

World Ranking
Steel China, Japan, USA, India (4th)
Sponge iron India First rank.

Manufacturing giants

MFG share in GDP World Export
China 34.1 14.6
India 14.9 2
Industrial Growth
POSITIVE NEGATIVE
Textile
Electrical equipment
Mining declined, 3rd consecutive year
manufacturing
Automobiles (low per capita income)
gems-jewelry (gold import controls)
Diesel consumption declined 1st time since 2001
Negative growth because:
1. inflation = input cost increased
2. Low demands in Indian and world economy due to inflation and slowdown.
3. Investment declined since last three years
4. mega projects stalled, new projects not coming up
5. land accusation, rehabilitation, environment clearance problem
6. infra bottlenecks, rail road power connectivity, coal supply
Epilogue
1. Last years survey contained lot of topics like Industrial gears, foundry clusters, jute mission, TUFS etc. But this years
budget and survey silent on them, hence not dwelling. But if you want to check, click me for last years survey.
2. Industrial corridors already covered under Chapter.11 on infra
3. IIP along with ch4 on inflation
4. export, import etc. under ch7 international trade
5. Location factors for various industries: under Mrunal.org/GEOGRAPHY

- Mrunal - http://mrunal.org -
[Economic Survey] Ch10: Service Sector- service tax, negative list, FDI limits, ICT, Tourism, Trade, R&D, Budget
2014 provisions
1. [Act 1] Services: theory and statistics
1. Service Tax: theory
2. Services kept out?
3. Service tax: negative list (17 services)
4. Budget 2014: Service Tax provisions
5. Service sector vs GDP, Employment
6. Service sector: FDI
2. [Act 2] Tourism sector
1. Budget 2014: tourism related
2. Sacred Rivers
3. E-Visa
3. [Act 3] Real Estate Services and Housing
1. RESIDEX
2. Budget 2014 provisions
4. [Act 4] IT industry
1. National Policy on IT 2012
2. Budget 2014: Digital India
5. [Act 5] Trade industry
6. [Act 6] Media, Entertainment
1. Cable Digitization
2. Research and Development
3. Budget 2014: research related provision
7. Service sector: Overall Challenges & Outlook
[Act 1] Services: theory and statistics

Service Tax: theory
Service tax is an Indirect tax of the Union.
Collected by CBEC-Central board of excise and customs.
Doesnt apply to Jammu and Kashmir.
Doesnt apply to person/company selling less than Rs.10 lakhs worth services in a financial year.
Tax deduction at source (TDS) mechanism doesnt apply.
o Suppose, there was TDS system in service tax, then if hotel bill was 100 rupees, then customer would have to
pay only Rs.87.64 to hotel owner and remaining 12.36 directly to Government as service tax payment.
o And in that case, we wouldnt call it indirect tax either but direct tax.
o There was a similar hotel receipt tax (a direct tax) in past, but it was abolished.
Service tax: Constitutional angle
Originally, Constitution did not provide for service tax. Therefore Government had to amend the Constitution
88
th
Constitutional amendment, 2003.
Art. 268A
Empowers union Government to levy
services
tax.
7
th
Sch. Entry 92C Tax on services, falls under Union list.
For income tax, there is income tax act; for excise duty there is excise duty act; for custom duty there is custom duty
act.
BUT there is no separate service tax act for collection of service tax.
Service tax levied under provisions of ch.5 of the finance Act.*
*Recall that along with budget (Annual financial statement art.112), Government puts two bills:
o APPROPRIATION BILL: to spend money from consolidated fund of India
o FINANCE BILL: to collect taxes
Services kept out?
Government collects service tax using Comprehensive approach i.e. service tax applicable on all services except those given
in kept out.
Two types of services kept out of tax ambit
Negative List Exempted
These services are specifically listed in finance
act. (sec.66D)
these services are exempted (temporarily) by Government notification
Changing this list, requires parliamentary
approval- because youll need to amend
the Finance Act itself.
Doesnt require parliamentary approval. Government can change it any
time.
17 services in negative list (given below)
some examples-veterinary healthcare, legal service, cord blood bank,
sports-recreation, hotel rooms below Rs. 1000, non-AC restaurants,
general insurance and so on.
Service tax: negative list (17 services)
Service tax will not apply to following services:
1. services provided by Government /local authority
a. Post card, inland letter, money order etc. kept out of service tax. but premium services like speedpost, express
parcel=service tax applies.
b. No service tax on sovereign functions- like granting spectrum license, delivering justice etc.
2. RBIs services (Except when RBI acts as bankers bank)
3. foreign diplomatic mission in India
4. agriculture related services for example
a. Renting agro. machineries
b. supplying farm labour
c. Grading, sorting, processing, packaging as long as essential characteristics not changed.
d. research and extension services
e. pisciculture (fish), sericulture (silk), plantations
5. Trading of goods
6. processes required in goods manufacture
7. Advertisement except radio and television.
8. toll charges while crossing road, bridge etc*
9. Betting, gambling, lottery*
10. Entertainment events, amusement parks*
11. Electricity transmission
12. Education upto higher secondary and vocational centres. (Coaching classes have to pay service tax, except those
making less than 10 lakhs)
13. Renting property for residential purpose. (In other words renting hotel room=service tax applies but then
EXEMPTION given to rooms below Rs.1000).
14. Financial sector- bank loans, deposits etc. (Although bank has to pay corporate tax on its profits)
15. Passenger transport via road and inland waterway* (But airplane, Rail tickets in firstclass/AC have to pay service tax)
16. goods transport
17. Funeral services.
*because under 7
th
Schedule, State Governments have the power to collect taxes over them.
Budget 2014: Service Tax provisions
Jaitley kept service tax unchanged
A. Service tax 12.00%
B. Education cess 2%
C. Secondary and Higher education Cess 1%
effective service tax (A+B+C) 12.36%
Some books mention education cess =3%, because they count (B+C = 2+1 =3%)
Cess applies as tax on tax therefore 3% of 12%=12.36% (And not 12+2+1=15%)
In excise and custom duty the tax rates vary according to item. But in service tax, all services face same uniform rate of
12.36%.
Budget 2014 announcements
will levy service tax from EXEMPTED following
1. Ads on online sites
2. Rent-a-car, radio-taxis
3. drug testing on
humans
4. AC contract carriages
1. Desi Tour operator selling foreign trip package to foreign tourist (e.g. Yatra.com,
Makemytrip.com)
2. Biomedical waste treatment
3. Micro-insurance upto 50,000 rupees
4. Cotton storage, loading, warehousing
Jaitley expects to collect ~2.15 lakh crores from service tax (Budget estimate 2014).
Tax Collection Ranking
2013(Actual) Corporation > IT > Excise > Custom > Service > Wealth
2014(Estimate) Corporation > IT > Service > Excise > Custom > Wealth
Service sector vs GDP, Employment
Ranking Service sector GDP: USA (1)> Japan(2) > China (3)>..>India (12)
Overall GDP: USA (1)> Japan(2) > China (3)>..>India (10)
Service sectors share
Share In GDP Share In Employment
1. Services (60%)
2. Industries (26%)
3. Agri (14%)
1. Agri. (49%)
2. Services (27%)
3. Industries (24%)

Ranking: Growth rate within service sector (%)
Sector (highest to lowest) 2013
1. Financing, insurance, real estate, & business services 12.9
2. Community, social & personal services
5.6
3. Trade, hotels, transport, storage, & communication
3

Service sector: growth in States
doubt digit growth lowest ~5% growth
Goa due to tourism
Tripura due to banking-insurance
Arunanchal Pradesh
Kerala
Service sector as part of states GSDP: highest in Delhi & Chandigarh
Service sector: FDI
List not exhaustive- only focusing on services- not manufacturing etc.
100%
Single brand retail (automatic upto 49%, beyond that need Government approval)
E-commerce sites (business2business only)
74% private banks, DTH, Mobile TV
51% multibrand retail
49% insurance, private security, commodity exchange
20% Public sector banks.
prohibited lottery, betting, gambling
Service sector receives ~45% of total FDI inflows in India.
Top 5 services attracting FDI:
1. Services sector(financial & non-financial)
2. Construction development
3. Telecommunications
4. Computer software & hardware
5. Hotels & tourism
Services export
Ranking: software > business services > Tourism > transport
We export more services than we import.
Service exports brought ~73,000 million USD in India.
Now lets take a look at individual service sectors- survey observations and budget provisions for them.
[Act 2] Tourism sector
Tourism contributes to 9% of global GDP. >6 trillion USD in absolute terms.
>25 crore people employed worldwide. 1 in 11 of total world jobs come from tourism.
But, India has not tapped the full potential of its tourism sector. Hardly 4 crore people employed.
India has not been able to convert its comparative natural and economic advantages into competitive advantages.
Suggested reforms
Create world class tourism infrastructure even by PPP
Solve the multiple taxation issues
Give skill and etiquettes training to tour operators
special focus on cleanliness and women safety of tourist sites
Use MNREGA labour for creating permanent assets like tourism infrastructure and facilities
Organize mini India cultural shows on a daily basis at important tourist sites. Itll attract more tourists and generate
employment for Indian artists
Urgently implement E visa facilities. (Jaitley budget implemented this)
Budget 2014: tourism related announcements
PRASAD National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive
Tourist circuit will create 5 tourist circuits around specific themes
Sarnath-Gaya-
Varanasi
Buddhist circuit would also be developed with attract foreigners
HRIDAY
National Heritage City Development and Augmentation Yojana (HRIDAY)for Mathura, Amritsar, Gaya,
Kanchipuram, Vellankani and Ajmer.
with help of PPP, universities and local community
Goa
Already declared as permanent venue for International Film Festival of India. (IFFI)Well setup
infrastructure for world class convention /events.
tour operators
Dont need to pay service tax, if serving foreign tourist for foreign trips. (e.g. yatra.com and other
online sites)
Status of Unity funding for Sardar Patels statue over Narmada Dam in Gujarat.
Archelogical sites 100cr for their preservation
Sacred Rivers
Riverfronts
Ghat development
and beautification of river front at Kedarnath, Haridwar, Kanpur, Varanasi, Allahabad, Patna and
Delhi
Because theyre heritage and religious value (100 cr)
Namami Gange Integrated Ganga Conservation Mission
NRI Ganga
Fund
So they can also contribute in cleaning ganga.
100 cr To prepare detail project report on how to clean up sacred rivers.
E-Visa
India gets less than 70 lakh foreign tourists every year (rank 41st). In next 3-5 years, we want to receive >1 crore tourists.
Budget 2014: E-visa
Solution Electronic Travel Authorization (e-Visa).
Feature Foreigner applies online, hell get visa in five days.
Benefit Will increase foreign tourists by 25%.
Where 9 airports, in phased manner.
Timeframe within next 6 months
Challenge Need 600 men in Home ministry to implement it.
Related topic: Visa on arrival
Under home ministry
2010 scheme started for five countries
2011 six more added
2014, Feb 180 countries
What is the mechanism for visa on arrival?
Foreigner applies online three days before his arrival in India.
Gets via on airport, 30 days validity, cannot be renewed.
Following are NOT eligible
1. Pakistan
2. Sudan
3. Afghanistan
4. Iran
5. Iraq
6. Nigeria
7. Somalia
8. Sri Lanka
India is not the first country in the world to have Visa on arrival facility. Japan, Finland, Singapore et al already have this.
[Act 3] Real Estate Services and Housing
Potential / Importance:
Estimates show that every rupee invested in housing and construction adds 78 paise to the GDP.
Real estate services contribute to capital formation, employment generation, income opportunities and economic
growth.
Challenges:
~30% Indians live in Cities. By 2030, 50% of Indians will live in cities.
There is widening gap between demand and supply of houses.
Procedural delays are another major constraint in this sector. A Builder needs to get total 35 files approved, compared
to 16 in South Asia.
Lack of easy housing finance.
Government had enacted Rajiv Rinn Yojana (RRY) to provide cheap loans to economically weaker section. Individual
family gets 5-8 lakh rupees loan, but given the heavy price rise in real estate sector, this loan amount is insufficient in
most cities.
RESIDEX
National housing bank (NHB)s index to measure inflation in housing sector.
Using 2007s prices as base year.
RESIDEX residential properties
prices increased decreased
1. Chennai 1. Kochi
2. Pune
3. Bhopal
4. Mumbai
2. Hyderabad
Budget 2014 provisions
Rurban mission, smart cities, FDI relaxation, ReITs etc. topics already covered under Ch13 subpart rural and urban
infrastructure.
click me
[Act 4] IT industry
IT and IT-ese (information technology-enabled services) accounts for >55% of global out coursing.
Why Indias leading IT outsourcing destination?
Potential challenges
1. Flat entry-level salaries
2. Near flat employee pyramids
3. Skilled workforce
4. India is seven-eight times cheaper than source
locations (US and EU)
5. India is 30% cheaper than the next nearest low-cost
country.
1. increased competition from Malaysia, Philippines &
other Asian giants
2. Wage inflation
3. Rupee volatility
Revival of US and European economy in recent months. Indias IT exports have increased.
National Policy on IT 2012
Q. write a note on the salient features of national policy on Information technology (100 words)
1. Atleast 1 person in each household should become e-literate.
2. get total 1 crore additional personnel in IT sector
3. For physically disabled, create IT softwares.
4. All public services be delivered in electronic mode, in local languages- be it health, education, rural Development or
financial services
5. Use ICT for good governance, transparency, accountability, efficiency, reliability in public services.
6. Against cybercrimes- strengthen regulatory framework
7. Focus Cloud Computing, Social Media, open source softwares.
8. Give tax reliefs to SME and start companies for adopting IT technologies.
9. Gain significant market share in global IT trade.
Target figures under NPIT-2012
Year Total Revenue Export earning
2011 100 billion$ ~70 billion$
2020 300 billion$ 200 billion$
Budget 2014: Digital India
Jaitley announced digital india scheme to bridge the divide between digital haves and have-nots. Will provide
following benefits:
Broad band connectivity at village level
greater transparency via e-governance
Boost to indigenous production of IT hardware and software.
Budget: other announcements for IT
A National Rural Internet and
Technology Mission
for services in villages and schools, training in IT skills and E-Kranti for government
service delivery (500 cr)
E-kranti for government service delivery
Program to promote good governance 100 cr
[Act 5] Trade industry
Trade is categorized under Service sector
Includes both wholesale and retail traders
Includes middlemen, brokers and auctioneers
Provides employment to 3.5 crore people (~7% of the total workforce)
FDI in retail
2012 Permitted in single brand retail e.g. Armani, Starbucks, Dunkin Donuts
2013
Permitted in multi-brand retail- with preconditions about investment, sourcing, store locations, and state
government approval. more details click me
At present FDI not permitted in Retail e-commerce. Except Business to Business (B2B) ecommerce sites.
Government released whitepaper for discussion on FDI in retail e-commerce.
Challenges in trade sector
1. Multiple controls by union and state departments.
2. fragmented market hindering the free flow of goods within the economy,
3. higher transportation cost
4. overall low level of efficiency and productivity
[Act 6] Media, Entertainment
Include television, print, films, radio, music, animation, gaming and visual effects, and digital advertising. India has one of the
largest broadcasting industries in the world
numbers not important
16 crore TV households
800 TV channels
245 Radio channels
170 Radio stations
Cable Digitization
To shift from Analog TV services to digital services. Deliver TV channels via Set top boxes (STB)
Four phases, Deadline: 31/12/2014
Chennai is yet to undergo full transition owing to pending court cases.
Whatre the benefits of Cable digitization?
Customer has to pay only for the channels he wants to see
Higher picture and sound quality
Cable operator cannot under-report connections and evade payments to Channels companies
More tax collection for state and union Government. Primary data shows, state Governments entertainment tax has
increased by 3-4 times.
Phase II was concluded on 31 March 2013 in 36 cities (having population more than 10 lakh) spanning 14 states and 1
UT. Three crore set top boxes (STBs) were installed in the first two phases.
Opportunity for local manufacturing of STBs, leading to employment generation.
Community radio Film/movies
2006: Government allowed NGOs and educational institutions to
setup their own Community Radio Stations.
matter falls under Ministry of Information and Broadcasting
~95 per cent of Indias cinema
screens already digitized
Piracy remains a challenge to the
400 already permitted
200 new stations planned
Indian film industry

Budget 2014 announcements
Institutes of national importance
This status given to
Film & Television Institute, Pune
Satyajit Ray Film & Television Institute, Kolkata
Games National Centre for Excellence in Animation, Gaming and Special Effects will be set up.
Research and Development
Global Competitiveness Report 2013-14
Among BRICS nations, Indias innovation capacity is lowest after Russia.
Scientific research done by Indian institutions- it doesnt result into commercial Usage.
This is proof poor collaboration between universities and industries- compared to other brics nations.
Even with such large population, and so many self-financed colleges, India will have 25% shortage of Engineers by
2025.
Budget 2014: research related provision
PPP
To strengthen technical research centres
For nanotechnology, materials science and bio- medical devices
Biotech clusture
Already @Faridabad and Bengaluru
Will modernize them
Agro-biotech cluster
Already at Mohali- will upgrade it.
Two new @Pune and Kolkata
Service sector: Overall Challenges & Outlook
Summary points from Economic Survey
Among the developing countries, Indias growth story is unique- because its led by service sector. (Other countries
grew by manufacturing sector)
Therefore, India must focus on revival of service sector.
More than 50% of GDP comes from services sector.
Service sector is the largest and fastest-growing sector of the economy
Indias services sector covers a wide variety of activities that have different features and dimensions. For example
IT, Telecom Very sophisticate, need high technology
Barbers, plumbers Simple, crude
Transport Has high linkages with industrial sector
Tourism Has high linkages with employment generation
Even after the 2008 global recession, services sector growth is still higher than that of other sectors.
But Slowdown in the manufacturing and mining sectors directly affected some services like railways, shipping, ports.
Same way, Inflation @domestic level and Declined incomes @international levels, has badly affected other services
particularly airlines, IT, branded retail segment.
But all is not lost
2014 has ebgan with Indications of revival in developed countries.
This would translate into revival of the IT, aviation, shipping and tourism sectors.
With a stable government in place and growing optimism of foreign investors- service sector is poised to grow at a high
rate
just needs some quick reforms and removal of some obsolete regulations.
Suggested reforms (overall):
Need to create a single nodal ministry or Department of services.
Government should disinvest from Service sector PSUs. Itll help reducing fiscal deficit and promote growth of these
services.
Need to provide collateral free soft loans to service sector entrepreneurs- especially for exports.
PS:
1. Not covering NALSA, legal services- NALSA etc. because the new survey and budget silent on them. However, if you
want to go through these topics, refer click meto Economy survey summary 2012.
2. Service inflation measured via services price indices (SPI)- will cover that topic under inflation topic for parallel
revision with WPI, CPI.
- Mrunal - http://mrunal.org -
[Economic Survey] Ch11: PPP challenges & reforms, 3P-India, highway projects, Industrial corridors, DMIC vs
DFC, Golden vs Diamond quadrilateral
1. Prologue
2. [Act 1] Infrastructure Corridors GK/theory
1. C1: (Rail) Dedicated Freight Corridor Project
2. C2: (Road) Industrial corridors: DMIC
3. C3: Other industrial corridors
4. C4: Golden vs. Diamond Quadrilateral
5. C5: (Road) North South, East West corridor
6. Budget 2014: industrial corridor announcements
3. [Act 2] Road infrastructure
1. R1: National highway authority of India (NHAI)
2. R2: NHAI: Where do they get cash?
3. R3: Highways in troubled areas
4. R4: Budget 2014: Highways related announcement
4. [Act 3] PPP & Infrastructure: challenges & reforms
1. P1: Why infrastructure important?
2. P2: Government role in Infra Development?
3. P3: PPP Challenges
4. P4: PPP reforms: Economic Survey points
5. P5: 3P India: Jaitleys solution to PPP problems
6. P6: Infrastructure Financing
Prologue
Economic Survey Ch11. Energy, Infrastructure and Communications. Total four subparts
1. Energy & communication
2. Roads, Industrial corridors, PPP, Infrastructure problems & reforms
3. Shipping, aviation
4. Railways infrastructure

[Act 1] Infrastructure Corridors GK/theory
For stupid MCQs: list of rail and highway corridors:
C1: (Rail) Dedicated Freight Corridor Project

2005: By rail ministry + Japanese help
Western Eastern
~1500km ~1800km
Jawaharlal Nehru Port in Mumbai to Dadri near Delhi from Dankuni near Kolkata to Ludhiana in Punjab
Japan International Cooperation Agency (JICA) World bank funding
Starts: Dadri in UP Ludhiana, Punjab
1. Haryana
2. Rajasthan
3. Gujarat
1. Haryana,
2. Uttar Pradesh
4. Maharashtra 3. Bihar
Ends: J.Nehru Port near Mumbai Dankuni, W.Bengal
Total 3000+ kms. ~96% land acquired.
Land compensation as per Railway Amendment Act08
Benefits:
1. Only electric trains =less greenhouse gases.
2. More transportation capacity
3. LESS unit costs of transportation
C2: (Road) Industrial corridors: DMIC

2006: MoU India and Japan
2008: DMIC Development Corporation as the implementing agency. (and NOT NHAI)
States covered under DMIC
1. Delhi
2. Haryana
3. Uttar Pradesh
4. Rajasthan
5. Gujarat
6. Maharashtra
7. Madhya Pradesh
above six states list, as per PIB-April 2007. and in July 2007, Commerce ministry elaborated that itll pass through
Madhya Pradesh as well.
Total length: 1483 kms
Railways designing (Western) Dedicated rail freight corridor to extract maximum leverage with DMIC.
C3: Other industrial corridors

Industrial corridor States Funding
Chennai-Bengaluru-Chitradurga KarnatakaAndhra PradeshTamil Nadu Japan
Bengaluru-Mumbai Economic
Corridor (BMEC)
Maharashtra, Karnataka
United
Kingdom
East Coast Economic Corridor
(ECEC)
linking Kolkata-Chennai-Tuticorin ADB
Vizag-Chennai Industrial Corridor
(VCIC)
Andhra Pradesh and Tamilnadu ADB
Amritsar-Kolkata Industrial
Corridor (AKIC), 2014
150-200 km band on either side of the Eastern Dedicated Freight
Corridor (EDFC) in a phased manner. 7 states:
Punjab, Haryana, Uttarakhand
Uttar Pradesh, Bihar, Jharkhand
West Bengal
Govt.ofIndia
C4: Golden vs. Diamond Quadrilateral
Golden Quadrilateral Diamond quadrilateral
1999 2014
under NHAI under Rail budget
To connect four main cities of India Delhi-Kolkata-Chennai-Mumbai.
~6000km length
To connect major metros through High Speed
Rails.
(length wise, longest to shortest)
1. Kolkata-Chennai
2. Delhi Kolkata
3. Delhi Mumbai
4. Chennai Mumbai
Proposed routes
1. Mumbai-Ahmedabad
2. Howrah-Haldia
3. New Delhi-Patna
4. Hydrabad-Chennai
C5: (Road) North South, East West corridor
Under NHAI, to connect following
North Srinagar (Kashmir)
South Cochin (Kerala), Kanyakumari + Salem (TN)
East Silchar (Assam)
West Porbandar (Gujarat)
Budget 2014: industrial corridor announcements
National
Industrial Corridor Authority
to coordinate the development of the industrial corridors,
with smart cities
linked them all using transport connectivity
HQ Pune. (100 cr allotted)
Additionally: Three new smart cities in the Chennai-Bengaluru Industrial Corridor region:
Names not important except for profile based interview Q.
Ponneri Tamil Nadu
Krishnapatnam Andhra Pradesh
Tumkur Karnataka
1. Amritsar Kolkata Industrial master planning will be started.
2. Bengaluru Mumbai Economic corridor (BMEC) and Vizag-Chennai will be developed.
[Act 2] Road infrastructure
Type of roads
Name Responsibility of Connects
National Highways Union Government State capitals
State highways State Government State Capital to District HQ
district roads Zila Parishad District HQ to tehsil and Blocks
village roads Gram Panchayat Villages to neighboring towns

Lengthwise: (numbers not important but ranking is)
other roads >46 lakh kms
state highways 1.4 lakh kms
national highways / expressways ~93,000 kms
R1: National highway authority of India (NHAI)
Statutory body under ministry of road transport and highways
its responsible for national highways development, maintenance and management
Three main projects
o National Highway developmental Project (NHDP)
o Golden quadrilateral
o north-south + East-west corridors
NHDP phase 6 started from 2013.
R2: NHAI: Where do they get cash?
1999: Government imposes CESS on petrol and (high speed) diesel.
Rate: 2 Rupees per litre
This FUEL CESS money goes to Central Road Fund (CRF) [in public accounts and NOT in consolidated fund of
India].
from CRF, money goes to four places:
1. state highways
2. rural roads
3. rail over bridges
4. NHAIs national highway Development Program. (0.50 paisa from every two rupee)
NHAI also borrows fund by issuing bonds in Debt market.
World bank, ADB, JICA also gives them fund, mostly used for LWE areas.
R3: Highways in troubled areas
a.k.a. fodder for GS3 (mains)
SARDP-
NE
In North East region- to connect state capitals, district HQ and remote places
NHAI provides 2lane/4 lane connectivity upto State capitals
build atleast 2 lane highway between state capital to district HQ
Connect all strategically important border area/remote places.
full name: Special Accelerated Road Development Programme in North East (SARDP-NE)
2004
Prime Ministers Reconstruction Plan for J&K.
Construction of the Mughal Road (joining Jammu and Kashmir.)
double-laning of the Srinagar-Kargil-Leh Road (NH-1D)
2009
Road Requirement Plan (RRP) to make two-lane state roads and national highways in LWE areas.
Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and Uttar
Pradesh

Highway reforms: Already taken
PBJY FDI and tax reliefs
Pradhan Mantri Bharat Jodo Yojana (2004)
Permitted PPP BOT (Build operate transfer) mechanism
in highway construction.
To join state capitals with important tourism and
economic centers.
100% FDI permitted in road sector.
100% tax exemption for companies doing
highway widening projects
Private developers given right to collect and
retain toll.
R4: Budget 2014: Highways related announcement
Expressways in parallel to Industrial Corridors. This will help faster transport of goods across country.
more funds for NHAI (>37k.cr) and North East road Development(3k.cr)
Will built 8500 km highway in FY2014
[Act 3] PPP & Infrastructure: challenges & reforms
from the points given in Economic Survey:
P1: Why infrastructure important?
1. Population + Economic growth= heavy pressure on Transport + Energy + communications.
2. So, if these 3 not improved = GDP bottleneck + poverty rise + costly essential services.
3. Without environmentally sustainable infrastructure= No inclusive growth
4. Lack of infrastructure = Poor GDP growth rate
P2: Government role in Infra Development?

Government role in infra = three angles: planning, contracting, and regulating.
State#1: Planning
Planning = the decision to build an element of infrastructure.
Requires inter-relationships between multiple elements: e.g. where there is a port, there will be a requirement for
railway lines and roads
Political considerations inevitable in the planning process.
As an example, political authorities may decide that it is important to build transportation infrastructure in backward
states, or in states with greater law and order problems, even when their economic viability is lower.
Stage#2: Contracting
The task of giving contract to a private producer for building infrastructure.
survey recommends creating a new agency for drawing the complex PPP contracts, and prevent future litigations.
Stage#3: Regulating
Once an asset is working, autonomous body must regulate the infrastructure Usages and service charges
1. to prevent market failure
2. to prevent monopoly of any private/public company
3. to provide level playing field between public and private sector companies
P3: PPP Challenges
1300 projects worth ~7 lakh crore by the end of March 2014
These projects are at different stages of implementation, i.e. bidding, construction, and operational.
PPP worldwide PPP in India
combines private sector efficiency
With public purpose of Government.
combines Governments efficiency
with private companies public purpose
=#EPICFAIL

1. In India, Initial PPP projects were successful (early 2000s), because private companies finished within deadline. Many
highways, ports, airports successfully working.
2. With booming Indian economy (before sub-prime crisis), the private companies started overleverage i.e. creating
assets on borrowed money beyond a sustainable level. Even companies with modest balance sheets started bidding for
big PPP projects beyond their aukaat.
3. They had hoped, the booming economy would reward their risk taking ability e.g. lot of highway traffic = well mint
crores via toll collection.
4. They had hoped even in worst case scenario, Government would redraw the PPP contracts extending deadlines or
allowing them to collect more toll charges.
5. But with subprime crisis, global economic slowdown, these companies couldnt finish projects on time, OR sustain the
losses (because expected traffic did not come.)
6. They couldnt raise fresh loan / equity /capital / finance because of the slowdown.
7. Government did not help them. In fact Government aggravated the problem by stalling environment clearance, policy
paralysis, corruption, rent seeking etc.
8. Even when PPP contracts were redrawn, matter was stuck in courts because of corruption allegations.
9. Result= #epicfail, bank NPA increased.
More problems in PPP
1. No integrated planning: ports that lack railway lines or power plants that lack coal supplies
2. Corporate bond market is not developed. Companies rely on banks for finance. higher interest rate = more chances of
NPA
P4: PPP reforms: Economic Survey points
1. for future highway PPP contracts do following:

Traffic trigger re-equilibrium discount
It is a conditional clause in the PPP highway contract.
If traffic increases beyond a limit, the private developer
is required to increase road capacity to maintain
Another conditional clause in PPP highway
agreement.
If the private developer cannot provide minimum
minimum level of service. level of services to road user, hell have to reduce
the toll-fees.
2. overleveraged companies cant finish highway projects, so
o simplify corporate debt market regulation, to help them get fresh capital
o Allow them to EXIT, let new player takeover the project.
3. Highway tolls should have correlation between
o reasonable profit for the private player
o users capacity to pay
4. Setup a Separate institute for designing PPP contracts. (Budget 2014 implemented this)
5. Division of work
o infrastructure construction work should be handed over to giant companies having expertise in construction
o After the asset is built, the operation work / toll collection work should be given to another company having
expertise in operation part.
P5: 3P India: Jaitleys solution to PPP problems
What was the problem?
1. PPP projects often run into time and cost over runs
2. then private players want more share from profit/revenue
3. PPP contract doesnt provide that
This problem leads to
1. private player compromises service quality
2. private player goes for court litigation
3. Government demands bribes to rework the PPP contract to help the distressed private company
Budget 2014 Solution?
1. Budget 2014 announced new institution called 3P India (500 cr provided)
2. 3P India will ensures proper PPP contract-making with proper grievance redressal mechanism
3. 3P India will not provide funding / finance to any PPP projects.
P6: Infrastructure Financing
12th FYP projections: ~1 trillion USD investment necessary for infra. Development. 50% of that expected to come
from private sector.
To achieve this, Government has taken following initiatives
Bank loans flow rank: power > roads > Telecom
FDI
flow rank: Telecom > Power >
Renewable energy
IDF
infrastructure debt fundFor long term loans to infra. projectsIDF can be setup either as an NBFC (2 exist);
or a Mutual fund (5 exist)
IIFCL
India Infrastructure Finance Company Limited (IIFCL)
Long term finance to infra. projects with long gestation period
IIPDF India Infrastructure Project Development Fund (IIPDF) under Economic Affairs department.
InvITsREITs Discussed under chapter 13=> rural and urban infrastructure segment.
Municipal
bonds
Government has simplified municipal bond norms, to helpem raise funds for urban infra. Development
Tax free bonds 2013: Government allowed the PSUs to issue tax free bonds worth 50,000 cr. for infra. Development
PPP training
national PPP capability building program at LBSNAA and other institutes
Finance ministry launched PPPinindia.com website- for better Decision Making.


- Mrunal - http://mrunal.org -
[Economic Survey] Ch12: Sustainable Development, Millennium Development Goals, MDG, SDG, NAPCC, WTO
Solar subsidies
1. [Act 1] MDG, SDG, Kyoto Agreements
1. #1: Millennium Development goals (MDG)
2. MDG & India
3. Budget 2014 on sustainable Development
4. #2: Sustainable Development goals (SDG)
5. #3: Kyoto and WARSAW
6. #4: Fodder: Future agreements
7. #5: Fodder: Emission cuts vs India
2. [Act 2] Climate funding
1. CF#1: Global environment facility (GEF)
2. CF#2: National Clean Energy Fund (NCEF)
3. Fodder: Climate finance problems
3. [Act 3] India specific
1. #1: National Action Plan on Climate Change (NAPCC)
2. #2: Environment clearance problem
3. #3: Assertion reasoning: Market vs Environment
4. Appendix
1. #1: Desi Liquor Solar subsidies =Anti-WTO, says USA
2. #2: Ecuador oil drilling in Yasuni Park
3. #3: Tar balls
[Act 1] MDG, SDG, Kyoto Agreements
Economic survey ch12: sustainable Development and climate change.
As such chapter has hardly any new topics. Most of the stuff is fodder and bolbachhan.
#1: Millennium Development goals (MDG)
Who? UN General assembly
When? Framed in 2000. (but targets calculation done based on 1990 levels)
deadline 2015

MDG has 8 goals and 18 targets
GOAL TARGET DESCRIPTION
1.povertyhunger
1. reduce BPL junta by 50%
2. reduce hungry people by 50%
2.edu 3. all boys & girls complete primary education
3. genderequality 4.Eliminate gender disparity in primary and secondary education
4.child 5. reduce child mortality by 2/3
rd

5.mother 6. Reduce MMR by 3/4
th
(75%)
6.disease
7. halt HIV/AIDS spread
8. halt malaria etc.
7.SustainbleDevelopment
9. integrate sustainable Development into national policies, reverse environment loss
10.junta without access to water-sanitation : reduce their # by 50%
11. Improve life of at least 10 crore slum dwellers.
8.partnership
12. reform training, financial system, good governance etc.
13.needs of LDC countries
14. needs of small island and land locked countries
15. debt problem of developing countries
16. youth productive work
17. affordable drugs with help of pharma cos.
18. new ICT technology with help of private cos.
MDG & India
Data taken from Economic Survey 2013, page 218
Indicator MDG target Indiaslikelyachievement
1.Poverty. BPL earning <1$/day 23.9% BPL earning <1$ 20.74
2A.Edu. Net enrollment ratio
2B.Literacy rate (15-24 years)
100% 100%
3A. Gender parity index(boys to girls in primary edu) 1 1
3B. share of women in non-agri. employment 50 23.1
4A. under five mortality rate (1000 live births) 42 50
4B. IMR (1000 live births) 27 41
5A. MMR (1 lakh live births) 109 139
5C. births attended by skilled personnel 100% 62%
6.Halt HIV & other disease

no projectionsgiven in survey
7A.households with water access 94%(Urban) 79%(Rural) 98%(U) 96%(R)
7B. households without sanitation access 16%(U) 47%(R) 12%(U) 61%(R)
Overall Indias performance on MDG deadline (2015)
India can achieve these by 2015 cannot achieve these by 2015
1. Poverty reduction
2. households with water access
3. Gender parity, universal primary education
4. under five mortality rate (With some effort)
5. MMR
6. share of women in non-agri.employment
7. birth attended by skilled personnel
8. sanitation
Budget 2014 on sustainable Development
Re-affirmed global commitment to develop new set of Sustainable Development Goals (SDGs) when the MDG expires
in 2015.
Outlined Indias performance on sustainable development viz.
1. 12th FYP gave prominent focus to Sustainable development.
2. Since 90s till now, India has reduced its Carbon dioxide emission by 20% (per unit of GDP)
3. 12% of our energy comes from renewable sources. (23 Gigawatts).
4. National Action Plan on Climate Change (NAPCC) and State Action Plans on Climate Change (SAPCCs.) have been
development.
#2: Sustainable Development goals (SDG)
2015: millennium Development goals will expire.
Therefore, under RIO+20 summit, the leaders had decided to enact new Sustainable development goals (SDG)
UN general assembly has setup 30 member group to design SDG.
Proposed focus area under SDG (fodder for mains/Essay)
1. poverty eradication
2. food security and nutrition
3. health and population dynamics
4. education
5. gender equality and women empowerment
6. water and sanitation
7. energy
8. employment
9. sustainable cities and human settlements
10. sustainable production and consumption
11. means of implementation
What is sustainable Development?
Development which meets the needs of current generations without compromising the ability of future generations to
meet their own needs.
Brundtland commission on World Commission on Environment and Development (1987) gave above definition.
This has been asked in MCQ- who gave definition, therefore need to remember.
What is Rio+20 summit?
1992: Earth Summit in Rio de Janeiro, Brazil
2012: United Nations Conference on Sustainable Development, in same place.
but since 20 years had lapsed between two summit, therefore, second summit called RIO+20
For more details on RIO+20 and a mile long article click me.
#3: Kyoto and WARSAW
Kyoto protocol WARSAW summit
3
rd
conference under UNFCC (1997) 19
th
conference under UNFCC (2013)
Kyoto Protocol designed in this conference.
It wants the Industrialized nations to reduce their GHG
emission by around 5.2% by 2012. (against 1990 levels)
Like-minded Developing countries wanted NO LEGALLY
BINDING commitment on DEVELOPING countries.
Kyoto protocol expires in 2020
Decided to meet at Paris in 2015, to outline post- what
to do after Kyoto protocol expires in 2020
Kyoto protocol expires in 2020
Decided to meet at Paris in 2015, to outline post- what
to do after Kyoto protocol expires in 2020
three mechanisms
1. Carbon trading. 2013: India registered 115 project=
highest by any country.
2. Clean Development mechanism
3. Joint implementation
two mechanisms
Loss and Damage mechanism
REDD+ mechanism- UK, Norway and USA gave
funds.
more details click me more details click me
List of Greenhouse gases under Kyoto
1. Carbon dioxide (CO
2
);
2. Methane (CH
4
);
3. Nitrous oxide (N
2
O);
4. Hydrofluorocarbons (HFCs);
5. Perfluorocarbons (PFCs);
6. Sulphur hexafluoride (SF
6
)
Mug up above list for tricky MCQs which of the following is not a GHG?
Do read NCERT Chemistry class11 chapter 14: environmental chemistry.
#4: Fodder: Future agreements
Kyoto MDG
born in 1997 2000
expires in 2020 2015
Kyoto focus= industrialized (developed)
countries to cut down their emission.
MDG focus= developing countries to improve human and environment welfare.
But, in 2015: all countries will have to
pledge emission cuts for the post 2020
period.
But in 2015: MDG will end. Therefore, global community designing future
sustainable development goals (SDGs), according to Rio+20 mandate. Budget
2014, also affirmed this commitment.
2014 is the last chance for all stakeholders to introspect to be able to wisely choose the world they want post 2015.
Therefore future agreements: (1) post Kyoto agreement (2) SDG= these two will apply to all countries- whether
theyre developing, developed countries.
But applicability to all, should not amount to uniformity of application.
Per capita energy use in developing countries is hardly 25% of developed countries.
The bottom half of the world can do its bit but it cannot be expected to shoulder the bulk of the worlds development,
sustainability, and climate crisis burden.
In other words, first world countries should further reduce emission and send truckload of donation to third world
countries.
In other words, Global community must embed the principles of equity and CBDR in the new agreements.
Developing countries should have the discretion to fulfill their domestic goals in accordance with their national
circumstances
Developing countries must be given their fair share of carbon and development space.
Global community must stop taking solace in limited progress and move to decisive action.
#5: Fodder: Emission cuts vs India
Points from Economic Survey, about Indias commitment towards climate change and sustainable Development
India has not even utilized its fair share of the earths carbon space.
Between 1850 to 2010: Indias contribution to global emissions was only 2.7%, while that of the USA was 27%
India lacks the resources to effectively respond to sustainability and climate challenges.
Weve not even achieved basic minimum standards of living for its entire population.
4 crore Indians dont have electricity in their homes
8 crore Indians still use firewood for cooking
We have to maintain a high economic growth for a large population
We have to provide urbanization and industrialization.
But mitigation and adaptation must continue.
Weve enacted a number of legislations on conservation of forests and ecosystems, waste management, and pollution
control.
We strongly believe that environmental conservation can go hand in hand with development
But while pursuing higher GDP, well keep sustainability at the core of Indias planning process.
[Act 2] Climate funding
Only covering the climate funding mechanisms discussed in survey/budget.
CF#1: Global environment facility (GEF)
1991: started in the world bank
Provides funding for UNFCC, convention of biological diversity (CBD), Stockholm convention on organic pollutants,
Minamata convention on Mercury etc.
So far, India used ~50 cr dollars from GEF. And itself pledged 1.2 core $ in GEF-5.
India has used majority of GEF funding on mitigation projects ($4 cr), and only a small fraction on adaptation projects.
Difference between two projects?
Adaptation Mitigation
post-measure pre-measure
Building sea walls to protect against sea rise
Reduce emission to prevent global warming which
leads to sea rise.
Having ambulance facilities in dangerous highways/roads with
curves and narrow lanes
Dont make dangerous roads in the first place.
CF#2: National Clean Energy Fund (NCEF)
Was created from a coal cess of 50 per ton.
Falls under public account of India (And not under Consolidated fund of India).
Budget 2014 increased coal cess to Rs.100 per tonne
>15k crore rupees spent from this fund on JNNURM Solar lights, wind power projects etc.
Fodder: Climate finance problems
Developed countries committed to providing US$ 100 billion per year to developing countries by 2020.
But there is no comprehensive system for tracking climate finance
proliferation of funds, and lack of coordination
Developed countries providing Technological transfer instead of granting money
To reduce global temperature by 2 Degree in 2050, we need 44 trillion USD. No single source will be sufficient for this
amount.
Countries can raise more money via domestic resource mobilization (DRM). But that depends on factors such as fiscal
performance of the country, natural resource base, and size of tax base etc.
We must explore new funds from South-South cooperation, and private finance.
[Act 3] India specific
#1: National Action Plan on Climate Change (NAPCC)
The new economic survey itself shamelessly says Weve covered this topic in previous economic survey. Therefore, time to
shamelessly copy paste from previous summary, with minor updates.
TIMELINE of NAPCC
2008 PM launched NAPCC.
2009 PM requested state govt. to prepare SAPCC. (State Action plan on climate change)
2014 26 states/UT submitted their SAPCC so far (as per economic survey)
Thanks to NAPCC, weve reduced the CO2 emission per GDP unit by 20%

Nehru Solar
2010: (Jawaharlal Nehru) National solar mission launched.
Under ministry of new and renewable energy
Targets by 2022
1. install 20GW solar power
2. 2 GW of off-grid Solar
3. 20 million sq. meter of solar thermal collector area
4. 20 million rural households to have solar lighting
mission will be implemented in 3 phases
Phase Till March
First 2013
Second 2017 [we are in second phase]
Third 2022
Other missions under NAPCC
2.Energy
National Mission on Enhanced Energy Efficiency (NMEEE)
by 2015, help save about 5% of our annual energy consumption, and nearly 100 million tonnes of
carbon dioxide every year
via PAT and ESCert mechanism.
3.Water
National water mission.
increase water use efficiency by 20%
focus on over-exploited areas, integrated water Management, awareness generation etc. fancy
stuff
Finished pilot study on Godavari and Brahmani-Baitarani basin.
Water resource ministry got ADBs technical assistance.
4.Agro
National mission for sustainable agriculture.
to enhance agro productivity
to reduce agro vulnerability to weather, floods, draught etc.
New activities focusing on horticulture, increases fish production, warehousing and seed
processing.
5.Green India
(forest)
National mission for Green India
Plant additional 10 million ht. of forest lands, wastelands and community lands.
6.Habitat
National mission on Sustainable Habitat
Energy-efficient buildings, sewage Management, urban planning, transport, etc. six sub sector.
2009: Green Building norms made mandatory for the CPWD since 2009
2013: Energy Conservation Building Code 2007 made mandatory for new as well as old buildings
and incorporated in the Central Public Works Department (CPWD)
7.Knowledge
National mission on Strategic Knowledge for Climate Change
to Identify challenges arising from climate change,
Promote knowledge development for health, demography, migration, and livelihood of coastal
communities.
8.Himalayan
Ecosystem
National mission for sustaining the Himalayan Eco System
To reduce climate impacts on the Himalayan glaciers
To promote community-based management of these ecosystems
#2: Environment clearance problem
Lengthy topic, only summarizing points from survey.
Why environmental clearance gets delayed?
Fragmented policy. Several government agencies with differing policy mandates.
State institutes have shortage of trained personnel, database, funds and infrastructure.
Reforms taken?
Environment ministry has relaxed general conditions relating to distance of project from state boundaries.
If mining projects that have already obtained Environmental Clearance (EC) under EIA Notification 2006, then they
dont have to get another EC during mining license
Renewal.
Relaxed norms for Highway expansion projects.
As such Environment impact assessment work is classified into two categories:
Category A Category B
Need clearance from environment ministry Need clearance from state level agencies.

Reform taken: B category projects further sub classified
B1 Need public hearing.
B2 Dont need public hearing anymore.
#3: Assertion reasoning: Market vs Environment
Ive shifted this topic from Chapter on Industries to this chapter, for continuity in revision. Lets direct check assertion
reasoning type:
Assertion Environmental degradation is the result of market failure
Reason Markets for environmental goods and services is non-existent in India.
Correct answer Both correct, R explains A.

Second A&R question
Assertion Environmental degradation is the result of market failure.
Reason Lack of well-defined property rights is one of the reasons for market failure.
Correct
answer
Both correct, but R doesnt explain A. (R explains what causes market failure but doesnt explain how market
failure causes environment degradation)

Third A&R question
Assertion
Governments price control and subsidies on fossil fuelAggravates the achievement of environmental
objectives.
Reason Such interventions create Market distortions.
Correct
answer
R right and explains A
More fodder:
Indian manufacturing technology puts a heavy stress on the environment- via intensive resource and energy use.
Significant polluters result
Petro refine
Iron-Steel
Metallic mineral extraction
Resource depletion
Contamination of air, water and land
Biodiversity loss
Fertilizer
Cement.
Small scale Foundries, brick making etc.
Health hazards
Appendix
some related topics in current affairs:
#1: Desi Liquor Solar subsidies =Anti-WTO, says USA
Under Jawaharlal Nehru National Solar Mission, Government has made specific guidelines for local sourcing i.e.
some of the solar equipment must be procured from desi companies only. also called Domestic content requirement
(DCR)
So, indirectly the American (And any other foreign products) are eliminated from competition.
America accuses India defends
Earlier India used to import thin solar films from outside.
But in Nehru Solar mission (phase II), Indian government
specifically made guidelines that thin solar films must be
procured from desi players
This is one type of non-tariff barrier = youre violating
WTO agreement.
In many states of USA, youre also doing the same
against our solar panels. So, this is tit-for-tat.
As per WTOs Government Procurement Agreement, you cannot
discriminate between desi vs foreign players while procuring
goods/services for government projects.
But weve not signed that stupid agreement!
Youre running a vendetta to hurt American businessmen.
We only want to protect Indian businessmen.
In past weve even imposed anti-dumping duty
on Chinese and Indonesian solar companies.
So far weve not impose such duties on
American businessman.
Our solar panels are of higher quality and cheaper price than
your bogus desi products.
On that logic, if we continue buying everything
American for Government projects, then our
local industry will never develop,
because they wont make good profits to invest
in R&D. We must attain self-reliance for energy
security.
So even if it means using public money on
expensive desi products- thats fine.
Public money should not be used to pay for
imports- but to develop domestic production
capacity.
What happened next?
2014: USA complained to WTO. WTO asked both parties (India-US) to find a solution through (informal)
talks/consultation with 60 days deadline.
But talks did not lead to satisfactory outcome.
May 2014: USA asked to WTO form a dispute settlement panel and adjudicate this like a court matter.
July 2014: onwards its just taarikh pe taarikh.
Aug 2014: US envoy on climate change meets our Environment minister. Only Lip service on dispute. Their main
agenda is to sign energy efficiency projects for those SMART CITIES.
#2: Ecuador oil drilling in Yasuni Park
Amazon Rainforests= lungs of the world
Ecuador found large reserve of oil near Amazon basin Yasuni National Park.
Yasuni national park UNESCO Biosphere reserve. Has two primitive uncontacted tribes (Kichwa and Waorani tribe)
Park has more biodiversity than entire North America
2007: Ecuador Government asked world to give money, in exchange of not drilling the oil and harming environment.
So far, hardly 13 million$ received. Government wanted >3.5 billion$.
Therefore, Government decided to start oil drilling in Yasuni National park.
#3: Tar balls
Tar balls are lumps of petroleum
How are they formed? Oil spillage from tankers. Regular ships discharging burnt-oil into sea.
This oil reacts with sea-water=> tar balls formed.
Tar balls were washed ashore during the pre- and post-monsoon period along the Konkan belt Goa, Karwar in
Karnataka and south Ratnagiri in Maharashtra.
Why problem? Tar balls harmful for marine organism. They have foul smell, sticky to walk on=beach tourists decline.


- Mrunal - http://mrunal.org -
[Economic Survey] Ch13: Health, Women, Children- Policies, Acts, Schemes, Statistics, IMR, MMR, Beti Bachao,
National
Health Profile
1. Prologue
2. [Act 1] Health
1. National Population Policy 2000
2. National health profile 2013
3. Health Schemes
4. National health missions
5. Indira Gandhi Matritva Sahyog Yojana (IGMSY)
6. ASHA
7. Safe drinking water
8. PMSSY
9. Economic Survey: Health reform points
3. [Act 2] Women and Children
1. National policy for children 2013
2. Women and Child: Administrative Legal initiatives
3. Anti-Sexual Harassment law 2013
4. Anti-Rape law 2013
5. National mission for empowerment of Women
6. Nirbhaya Fund 2013
7. Rape Crisis Centre: Maneka Gandhi Proposal
8. (New) Beti Bachao, Beti Padhao
9. Budget 2014: women schemes
Prologue
Economic Survey Chapter 13, Total five subparts:
1. UNDPs Human Development report 2014, poverty [coming soon]
2. Healthcare, women and children [youre here]
3. Demographic Dividend: Education, youth, Skill Development [done]
4. Minorities, SC, ST, PH, Elderly, Sports & Defense [done]
5. Rural and urban infrastructure [done]

Only covering topics mentioned in Budget 2014 or Economic Survey 2013
[Act 1] Health
As such Ive taken data from Economic Survey 2013, page 236, 237 and 247.
But at certain places, National Health Profile 2013 (NHP) has provided new data, therefore, Ive included it with (*)
mark.

General Dong MCQ WRONG !
STATISTICS NUMBER
Total Fertility Rate:
The total fertility rate refers to the total number of live births that a
hypothetical woman would have
If she lived through the reproductive age group and had the average
number of babies in each segment of this age group.
Highest: UP; lowest- tie (W.Bengal and TamilNadu)*
2.4 (2012)
Rural: 2.6
Urban: 1.8
Target 2.1 (replacement level)
Maternal Mortality Ratio (MMR)
Death of mothers during or within 42 days
per 1 lakh live births
Highest Assam (382), lowest Kerala (66)*
178 (census 2011)
200 (UNDP)
Infant Mortality Rate (IMR)
death of infant before 1
st
birthday
per 1000 live births
Lowest: Kerala, highest: MP (Census 2011)
Lowest: Manipur, Highest Rajasthan (NHP 2013)*
Total (42)
Rural (46)
Urban (28)
12
th
FYP target: 25
MDG target: 28
Child Mortality Rate
death of kids in 0-4 years age group
per 1000 kids
11 (Economic Survey)
MDG target: 42 (under5 age
Mortality rate)
Birth Rate per 1000 mid-year population
Lowest Andhra Pradesh, Highest Bihar*
21.6
Death rate per 1000 mid-year population
lowest tie (Chandigarh, Tripura); highest Odisha
7
Decedal Population Growth Rate
Lowest Kerala (5%), Highest Bihar (25%)
17.7%
Population Density per sq.km
Highest Delhi, Lowest Arunanchal*
All India 382*
Sex Ratio*
States: highest Kerala (1084) Lowest Haryana (879)
UT: highest Puducherry, lowest Daman-Diu
All India: 943/1000
Child Sex Ratio (0-6 age group) 914, constantly declining since 71
Life Expectancy @Birth
All India 66.1 years
Male 64.6
Female 67.7
National Population Policy 2000
Q. Write a note on the salient features of National Population policy (100 words)

I doubt even the Babu/politicians who made this target remembers it!
Targets of National Population policy

present Policy target
MMR 178 below 100 per 1 lakh live birth
IMR 42 30 per 1000 live births
TFR 2.4 2.1 (replacement level)
promote girl marriage after age of 20
Compulsory registration of birth and death.
80% institutionalized deliveries, to reduce MMR
Compulsory school education, reduce dropout rate
Achieve Stable population by 2045
promote sterilization, family planning, 2-children norm, safe abortions, HIV control, universal immunization
BPL couple undergoing sterilization will get free health insurance.
National health profile 2013
Central bureau of Health intelligence under Health Ministry has prepared it.
This comprehensive database helps in Policy making, tracking Millennium development goal (MDG) targets
Overall, just statistical data, hardly any recommendations. Therefore, not much important for exam. (except those
rankings given in above table)
Here are some gem statistics: 125 Cr. People but barely 9 lakh Allopathic doctors and 6 lakh beds, highest Swine flu
cases in Delhi but most deaths reported in Gujarat, 21% rise in Cancer in Next 6 years and so on. You can see not
much exam worthiness.
Health Schemes
Previous schemes, acts available at- wp.me/p2tsJl-1Ec its a mile long list, cost:benefit bad hence not dwelling in to them.
Only focusing on topics discussed in survey / budget.
National health missions
Both under Ministry of Health and Family Welfare
NUHM NRHM
National Urban Health Mission National Rural Health mission
Cities above 50,000 population upto 50,000 population villages, town
These missions provide infrastructure, services, drugs and human resources for public health.
Reproductive and Child health (RCH)
Both under Health Ministry
Janani Suraksha Janani Shishu Suraksha
Under National rural health mission
Promote institutional (hospital) delivery among poor
pregnant women
Free drugs, Diet, Medical checkup, transport to home,
and caesarean deliveries.
Mother and child tracking system (MCTS)
1. Under national E-governance plan (NeGP)
2. Government keeps maintains data of the mothers with their addresses, telephone numbers, etc.
3. This contact database is used for ante-natal (before birth) and post-natal (immediately after birth) check-up of mothers
and vaccination for their babies.
Indira Gandhi Matritva Sahyog Yojana (IGMSY)
By Women and Child Development Ministry under National mission for empowerment of women. (NOT by Health
Ministry)
To compensate mothers for wage-loss during childbirth and childcare.
Available to all women for first two children.
Not available to women who get paid maternity leave.
Conditional cash transfer via Direct benefit transfer (DBT)
Condition: she should get pre-natal checkups, get vaccination for infant, attend counseling session etc.
PM Modis Health reforms:
He listed 17 point agenda, out of which 3 points for health:
1. A district health knowledge institute at every district hospital.
2. B.Sc course in community health (3 years)
3. Ashok: male community health worker, on the lines of the female ASHA workers.
ASHA
Q. What is the role of ASHA worker in community healthcare system of India? (100 words)
Under National Rural health mission (2005)
Every village/large habitat has a female Accredited Social Health Activist (ASHA) chosen by and accountable to
the Panchayat.
She acts as the interface between the community and the public health system and schemes related to health, nutrition
and hygiene- including toilets under Nirmal Bharat Abhiyan.
She also generates awareness about female infanticide, family planning, STD/HIV
She carries a Drug Kit containing generic AYUSH, allopathic drugs for common ailments, Rehydration Therapy
(ORS), Iron Folic Acid Tablet(IFA), chloroquine, pills, condoms etc.
She receives performance based incentive depending on number of children immunized under Polio vaccination drive,
No. of institutionalized deliveries under Janani Suraksha Yojana, no. of pregnant no. of TB patients covered under
DOTS therapy and so on.
Safe drinking water
1. Budget 2014 gave additional funding give to National rural drinking water program.
2. Itll provide safe drinking water to 20,000 habitations affected with arsenic, fluoride, heavy/ toxic elements, pesticides/
fertilizers
3. Via community water purification plants
4. Time limit? next 3 years
Budget 2014: Healthcare announcements
Health 4 ALL
the two key initiatives
1. Free Drug Service
2. Free Diagnosis Service
Elderly National Institutes of Ageing will be set up in Delhi and Chennai
Food and drug Additional money for modernizing state labs for checking drugs and foods.
Rural health research 15 new institutes will be setup
Dental
1. A national level higher dental studies inst.
2. Dental facilities in all the hospitals.
AIIMS 4 new AIIMS will be setup under PMSSY
PMSSY
Pradhan Mantri Swasthya Suraksha Yojana (PMSSY)
Two components:
1. setup new AIIMs institutes
2. upgrade existing Government medical colleges.
Locations not important except for Interview
6 Already finished 4 new Proposed in budget 2014
1. Jodhpur 1. Andhra Pradesh
2. Bhopal
3. Patna
4. Rishikesh
5. Bhubaneswar
6. Raipur
2. West Bengal
3. Vidarbha in Maharashtra
4. Poorvanchal in UP
Additionally, Budget 2014 promised to setup 12 new Government medical colleges. (Present number is 58).
Economic Survey: Health reform points
1. Existing Schemes have created Good infrastructure but at bad locations- without good facilities for transport,
communication and electricity.
2. There is already brain drain, Staff Shortage, women doctors-nurses reluctant to serve in rural areas because of safety
issues.
3. Government schemes only focus on inputs e.g. how much money allotted, how many beds, health centers built?
4. But they donot focus on reduction how many cases of malaria, diarrhea, child mortality reduced?
5. Therefore, survey recommends a shift in public health policy and budget Expenditure. Prime focus should be on
hygiene and malnutrition- itll automatically reduce the disease incidence.
[Act 2] Women and Children
As such infinite topic, but Im only covering the terms, schemes, policies, acts given in economic survey / budget.
National policy for children 2013
Timeline
1974 National Policy for children
2003 National Charter for Children
2013 National Policy for children
Q. Write a note on the salient features of National Policy for children (100 words)
1. Ministry of Women and Child Development (MWCD) will be the nodal agency for all child related schemes.
2. Child definition includes all aged below 18 years
3. National plan > State > District > Local level plans will be prepared.
4. will setup Action groups to monitor implementation of this policy
5. Priority: Survival, health, nutrition, development, education, protection and participation of Children.
6. Then you can cite a few schemes and statistics to reach 100 word limit.
Sidenote: National policy for empowerment of Women was made in 2001. Hence not going into its details. Compared to that
Children policy (2013) and Youth policy (2014) more important since they were made in recent times.
Women and Child: Administrative Legal initiatives
>70% Indian population consists of women and children. Government has taken following initiatives to protect them:
1. 2005: started Gender budgeting started. It received ~6% of total budget outlet.
2. 2012: Protection of Children from Sexual Offences (POSCO) Act
3. 2013:
1. Committee under Dr. Pam Rajput for status of women in India (2 years deadline)
2. Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act
3. Criminal Law (Amendment) Act 2013, also known as Anti-rape law.
Anti-Sexual Harassment law 2013
Q. Write a note on the salient features of Prevention of Sexual Harassment Act 2013 (200 words)
1. Based on definition of Vishakha judgment, and even covered areas/aspects not under Vishakha judgment.
2. Protects all women employee, of all ages, organized or unorganised sectors, public or private, permanent or dailywage.
3. Even covers women clients, customers and domestic workers as well.
4. Even protects against harassment in non-office places such as transportation, sports complex, nursing home,
educational institution etc.
Provides Two types of Committees
ICC LLC
Internal complaints Committee Local complaints Committee
@office level.
Mandatory for workplaces with 10 or more
working women
at district level
Covers domestic maids etc. who cannot approach ICC.
Committee will have 4 members. 5
chairman: senior woman employee
Chairman: woman with experience of social work, fighting for
womens causes.
6. Conciliation permitted, only if victim requests.
7. Employer has to setup ICC Committee, arrange workshops etc. Rs.50000 fine for employer, if he violates any rules
under this act.
Deadlines under this Act
Stage Deadline
victim can file complaint in 3 months
ICC/LCC Committee has to finish inquiry within 2 months
Employer/district officer has to take action based on Committee report within 2 months
Anti-Rape law 2013
Q. Write a note on the salient features of Criminal Law (Amendment) Act 2013 (100 words)
Based on the report of Justice JS Verma Committee after Delhi Gangrape in December 2012.
Salient feature are following:
1. It amends IPC, CrPC, POSCO and Indian Evidence Act to increase punishment for sexual offenders.
2. Adds new sexual offenses under IPC: acid attack, public disrobing of women, voyeurism and stalking.
3. Stalking and voyeurism: non-bailable, if caught second time.
4. Acid attack: upto 10 years jail time.
5. Rape- jail time no less than 20 years, and can be extended to life sentence.
6. Death sentence for serial rapists.
National mission for empowerment of Women
Q. Write a note on salient features of National mission for empowerment of women (100 words)
under ministry of women and child Development (2010)
also known as Mission Poorna Shakti
Provides Single window service and convergence for all women specific schemes across various central ministries and
departments.
Provides funding for women skill Development, micro-credit and research.
Focus areas:
o Prevent child marriage, domestic violence, sexual abuse, prostitution.
o Provide education, financial inclusion, health-sanitation services, vocational training and better representation in
Panchayati raj institutions.
Recall that Woman & Child Development ministry implements Indira Gandhi Matritva Sahyog as part of this
national mission.
Nirbhaya Fund 2013
Q. Write a short note on Nirbhaya Fund (100 words)
Started in Budget 2013
Provides funding for women safety projects by ministries, department, private sector and NGOs.
Example projects: CCTV @Public places, GPS and emergency buttons in public transport; helplines, Toll free
numbers; self-defense lessons for women
Interim Budget made Nirbhaya fund non-lapsable (meaning, even if money is unspent, itll not go back in the
consolidated fund of India.)
Total 2000 crore rupees in this fund.
Jaitley budget 2014: well setup Rape Crisis Management Centers In Delhi- in all public and private hospitals, using
money from Nirbhaya fund.
Rape Crisis Centre: Maneka Gandhi Proposal
After Badayun (UP) gangrape and public hanging of two girls.
There will be one Rape Crisis Centre per district.
They will provide medical, police and legal service to rape victims.
They will be linked with a national helpline.
(New) Beti Bachao, Beti Padhao
in Budget 2014. Details yet to be worked out. But CM Modi had started a scheme Beti Bachao in Gujarat. Lets check its
salient features
Census 2001: Gujarat child sex ratio was 883/1000. Therefore in 2005, then CM Modi began Beti Bachao scheme to
save the girl child.
He setup State monitoring agency to enforce Pre Natal Diagnostic Technique Act, PNDT Act in a strict manner.
Workshops NGO, spiritual leaders, Anganwadi workers.
Even Gujarat HC ran its own legal awareness campaign.
At Community gatherings and mass-marriage ceremonies, couples made to take vow of protecting the girl child.
Success? Partial success-Yes, Gujarats child sex ratio improved from 883 to 890 in 2011.
Budget 2014: women schemes
Jaitley only gave list, no specific salient features given. Hence nothing much to write.
1. Safety in public transport (50 cr)
2. Safety in large cities- project under Ministry of Home Affairs, 150 cr.
3. Rape crisis Management centers in Delhi hospitals, using Nirbhaya fund.
4. Beti Bachao, Beti Padhao
5. School Syllabus to include a new topic: Gender Mainstreaming
6. National program on Malnutrition for children. Its strategy will be worked out in next 6 months.

- Mrunal - http://mrunal.org -
[Economic Survey] Ch13: Demographic Dividend, Education & Skill Development schemes,
National
Youth Policy 2014
1. Prologue
2. [Act I] Demography related Theories (DT)
1. DT1: Malthusian theory of population growth
2. DT2: Demographic transition
3. DT3: Demographic dividend
3. [Act II] Education
1. Census 2011: Literacy ranking
2. Mid-Day Meal (MDM)
3. Sarva Sikhsha Abhiyan (SSA)
4. RMSA & RUSA
5. Model School scheme (MSS)
6. Saakshar Bharat (SB)
7. Education: Budget 2014 New schemes
8. Economic survey: Education reforms
4. [Act II] Youth & Skill Development
1. National youth policy 2014 (NYP)
2. (NEW) Skill India Program
3. (NEW) Revamping Employment exchanges
4. (NEW) Young leaders program
5. Udan and STAR
5. Appendix
1. Pt. Madan Mohan Malviya
2. Jay Prakash Narayan
Prologue
Economic Survey Chapter 13, total four sub-parts
1. UNDPs Human Development report 2014, poor, women and children [coming soon]
2. Demographic Dividend: Education, youth, Skill Development[youre here]
3. Minorities, SC, ST, PH, Elderly, Sports & Defense [done]
4. Rural and urban infrastructure [done]
[Act I] Demography related theories (DT)

Here Im only giving the outline of the theories. For more details, refer to NCERT Sociology, Class12, Chapter 2,
Demographic structure of Indian Society.
DT1: Malthusian theory of population growth
Food production increases in arithmetic progression while population increases in geometric progression.
Therefore, Nature itself tries to establish equilibrium between population vs food supply, using positive checks.
Positive checks by nature Preventive checks by humans
famine
disease
delayed marriage
celibacy
Viewpoints
Malthus Poverty is caused by population growth
Marxists Poverty is caused by unequal distribution of wealth
DT2: Demographic transition

Stage Birth rate
Death
Rate
Remarks
1 HIGH HIGH
low growth because of famine, wars, diseases
short life expectancy
India till 1921
2 HIGH MED.
Agri revolution: famine impact reduced
medical research: epidemics contained
Life expectancy increases but people yet to change breeding behavior. Result:
population explosion
Western Europe in late 19
th
& Early 20
th
Century.
3 MED. LOW
stationary phase
nuclear families, modern contraceptives, fertility starts declining
India since Census 2011
4 LOWEST LOWEST
Population begins to contract / shrink
Highest life expectancy.
Most developed countries in this phase.
DT3: Demographic dividend
A country is said to be in Demographic dividend phase WHEN
1. Majority of the population is in working age group
2. Dependency ratio is minimum i.e. very few persons below 15 and above 64 age.
3. Age pyramid shows Bulge in middle portion.
Observe the age pyramids of India, US, China and Japan for the year 2008 and 2020:

Bigger bulge in middle of Age Pyramid=Demographic Dividend
We can see, by 2020, India will have the youngest population among all four leading economies.
Year Working age population in India
2001 58%
2021 64%
However, to reap the Demographic dividend, we must invest in Health, education and skill Development of the young
generation. In the previous part, we learned about the health related issues and schemes. In this part, we shall see education,
skill Development.
[Act II] Education
First lets observe the Census-2011 data


mugup these formulas


Sakshar Bharat scheme won UNESCO 2013 award for this


mugup approx. total literacy & female literacy figure for Essay & Interview
Census 2011: Literacy ranking
Best Performers
Total Literacy Female Literacy
1. Kerala (93%)
2. Lakshadweep (UT)
3. Mizoram
4. Tripura
5. Goa
1. Kerala
2. Mizoram
3. Lakshadweep (UT)
4. Tripura
5. Goa
Bottom 5 States/UT in literacy
Worst performers
Total Literacy Female Literacy
1. Bihar (Lowest)
2. Arunanchal
3. Rajasthan
4. Jharkhand
1. Rajasthan
2. Bihar
3. Jharkhand
4. J & K
5. Andhra 5. UP
Now lets begin with educational schemes
Old schemes, organizations covered here: wp.me/p2tsJl-1zM (cost: benefit not that great).
In this new article, Im covering schemes mentioned in Economic survey 2013 or Budget 2014.
Mid-Day Meal (MDM)
WHO? Ministry of Human Resource Development (HRD)
Official name National Programme for Nutritional Support to Primary Education
WHAT?
hot cooked meals
WHERE?
Class 1 to 8
Government schools, Government aided schools, Madresa, Maqtab etc.
Accountability tools used:
1. Social audit
2. Interactive voice response system (IVRS) automated calls from state HQ to headmasters. Theyve to provide
performance data on daily basis, which is automatically tabulated in computer system.
Economic Survey reforms:
1. Poor quality food affecting child health.
2. Provide Separate dining rooms to prevent rains and dust.
3. Teachers should only supervise. At present, theyve to even cook the food due to staff shortage, as a result, education
activity suffers.
Sarva Sikhsha Abhiyan (SSA)
WHO? Ministry of Human Resource Development (HRD)
WHAT?
Right to education is implemented via SSA.
provides funding for infrastructure (building), services (teachers), free textbook, bags, uniforms,
transport, hostel etc.
Budget
2014
Gave ~28,000 crores.
Economic Survey reforms:
1. Right to Education (RTE) Act mandates a school within 1 km radius of every habitation. but this has led to
mushrooming of schools at certain places. Better construct one single bigger school at nearby places, with facility from
class 1 to 12.
2. Regularize temporary teachers. Assess their performance on learning outcome of students.
3. Fix the shortage of toilets, safe drinking water and safai karmachari.
RMSA & RUSA
HRD ministry implements both these schemes
RMSA RUSA
Rashtriya Madhyamik Shiksha Abhiyan Rashtriya Uchhtar Shiksha Abhiyan
Targets
2017: achieve above 90% gross enrollment ratio
2020: universal retention i.e. all primary school children
should reach high school.
Earlier schemes for girls hostels, vocational education
etc. merged into this schemes.
Budget 2014: gave ~5000 cr.
Setup 80 new universities by merging existing
autonomous colleges.
Create support infrastructure for existing
universities
Indian Bank Association (IBA): provides cheaper loans to all economically weaker section (EWS) students
World Bank: provides funding for technical education quality improvement.
Model School scheme (MSS)
WHO? Ministry of Human Resource Development (HRD)
WHAT?
Total 6000 new secondary schools, to absorb the primary school passout kids.
3500 model schools in educationally backward blocks (EBB), with help of state governments.
2500 models schools in normal blocks, via PPP funding.
Saakshar Bharat (SB)
WHO? Ministry of Human Resource Development (HRD), 2001
What?
Adult education program, main focus on women.
Aim: 80% total literacy by 2012; 100% female literacy by 2014.
won UNESO King Sejong Literacy Prize 2013
How
Funding given to districts having less than 50% adult literacy
Provides 3 Rs (i.e. Reading, Writing & Arithmetic) with skill Development program.
Education: Budget 2014 New schemes
Jaitley did not elaborate the features of these schemes. Hence nothing much to write at the moment.
Pandit Madan Mohan Malviya New Teachers Training Programme. (500 cr)
Jai Prakash Narayan National Centre for Excellence in Humanities in Madhya Pradesh.
Click
virtual classrooms and online courses (100 cr)
Via Communication Linked Interface for Cultivating Knowledge (CLICK)
New IITs and IIMS under budget 2014
Following Locations not important except for interview-profile based Questions
5 new IIT 5 new IIM
1. Jammu
2. Chhattisgarh
3. Goa
4. Andhra Pradesh
5. Kerala
1. Himachal Pradesh
2. Punjab
3. Bihar
4. Odisha
5. Maharashtra
Economic survey: Education reforms

Five year Plan outlays not converting into outcomes
From above charts, we can observe that over the years, government Expenditure on children has increased. But it has
not translated into learning outcome of the children.
Therefore, more and more parents opt to send their kids in private schools.
Economic survey prescribes two solutions for this:
1. Zero base budget i.e. scrap down all Programs and start again from zero.
2. Feedback loop i.e. at the end of the financial year, independent agency should give report card for the performance of
HRD ministry. In the next budget, Finance minister should make reforms in the financial allocations and schemes
accordingly.
[Act II] Youth & Skill Development
Youth policy + New schemes + Statistics =good points for Essay on demographic dividend.
National youth policy 2014 (NYP)
Different Definitions of
Youth
Youth definition age group
NYP 2003 13-35
NYP 2014 15-29
UN 15-24
NYP-2014 will focus on 11 pillars. Ive consolidated those under five heads. Existing schemes will be streamlined, converged
to give maximum focus on following areas:
1. Education, employment, skill, entrepreneurship
2. Healthy lifestyle, Sports.
3. social values, Community engagement, youth engagement
4. Participation in politics and governance
5. Inclusion, Social justice.
Implementation:
By Ministry of Sports and Youth affairs
Government will form a Youth Council, consisting of exceptionally talented young men and women across India.
Theyll oversee the implementation of the policy.
(NEW) Skill India Program
national multi-skill programme, launched in Budget 2014
Itll give Youth training for employability and entrepreneur skills
Even traditional professions like welders, carpenters, cobblers, masons, blacksmiths, weavers etc. will be given training
and support.
Itll have convergence with other vocational schemes, to bring maximum output.
(NEW) Revamping Employment exchanges
Budget 2014 promised to transform employment exchanges into career centers.
Theyll give counseling services, to help the youth pursue career path based on their caliber and aptitude.
(NEW) Young leaders program
100 crore allotted for this. Salient features, provisions yet to be announced.
Udan and STAR
Existing schemes
UDAAN STAR
by Ministry of Home affairs (MHA) by National Skill Development council (NSDC)
provides skill Development training to Jammu-
Kashmir youth with help of NSDC and PPP
1. National Skill Certification and Monetary Rewards Scheme
2. You enroll for a vocational course, and after final exam, they
give money depending on your grade in the certificate.
Organizations in News
NSDC Skill Ministry
National Skill Development council
Ownership: 51% private ; 49% Finance Ministry
Target: give skill training to 15 Cr. Indians by 2022. Thereby
fixing the mismatch in supply-demand of skilled personnel.
Runs STAR Scheme, helps MHA in Udaan Scheme.
Modi has setup separate ministry for skill
and entrepreneurship.
Presently Minister Sarbananda Sonowal
holding charge of two ministries:
(Skill Development, Entrepreneurship) +
(Youth Affairs and Sports)
Appendix
Since Budget 2014 schemes named after following Freedom fighter, they automatically become important for Mains General
studies paper 1. Therefore, you must have atleast 100 words shortnotes ready.

Pt. Madan Mohan Malviya (1861-1946)
1. Lawyer from Allahabad
2. Served in provincial and central legislature.
3. Foundation of Banaras Hindu University (BHU), The Leader newspaper.
4. Moderate leader of INC, Four times President.
5. Gandhiji gave him a title Mahamana
6. Opposed separate electorate for Muslims under Lucknow pact of 1916
7. He participated in 1st round table conference in 1930, later established Congress Nationalist Party to oppose communal
award
8. Popularized the slogan Satyamev Jayate
9. Editor of The Hindustan, Indian Union and Abyudaya.
10. Budget 2014: Teachers training program named after him.
~90 words
Jay Prakash Narayan (1902-1979)
1. Born in Bihar, Post-graduation from USA
2. popularly called LokNayak
3. Participated in both Non Cooperation movement (NCM), Civil disobedience movement (CDM), and went to jail.
4. Participated in Vinobas Sarvodaya and Bhoodan movement.
5. Wanted abolition of Zamindari and nationalization of heavy industries.
6. Founded All India socialist party before independence
7. Key role in settingup Janta party after independence.
8. 1975: Allahabad HC declared Indiras election null and Void. JP demanded her resignation, but she imposed National
emergency and got him arrested.
9. Awarded Magsaysay and Bharat Ratna.
10. Budget 2014: A national institute for humanities to be setup in MP, bearing his name.
~100 words

- Mrunal - http://mrunal.org -
[Economic Survey] Ch13: P1- UNDPs Human Development report 2014, HDI, Gender Development, gender
inequality, Multidimensional poverty, World Banks Gini-Coefficient
1. Prologue
2. Human Development Report
1. Five indexes under HDR-2014
2. Index#1: Human development index (HDI)
1. Ranking
2. Tie in Ranking
3. No ranking in HDR 2014
4. Index#2: Inequality adjusted HDI
5. Index#3: Gender Development India (GDI)
6. Index#4: Gender inequality index
7. Index#5: Multi-dimensional poverty index
3. Human Development: 4 culprits & 6 prescriptions
4. Hyogo Framework for Action
5. World Humanitarian Summit
6. Gini Coefficient: income inequality
Prologue
PS: slight correction in part2: Poverty line- Tendular had included food, health, education and clothing in his formula.
Summary of Economic Survey Chapter13: Human development. I had to divide it in total six parts for ease in revision &
loading images on mobile internet.
1. UNDPs Human Development report 2014 & World Banks Gini Co-efficient
2. Poverty Line: Tendulkar vs Rangarajan, Engels Law, MNREGA, Aajeevikaa, Urban Livelihood
3. Healthcare, women and children, statistics and budget schemes
4. Demographic Dividend: Education, youth, Skill Development
5. Minorities, SC, ST, PH, Elderly, Sports & Defense
6. Rural and urban infrastructure: schemes & budget announcements
Human Development Report
Who publishes this report? UNDP; HQ: NewYork; chief: Helen Clark
Who designed this system?
Indian Economist Amartya Sen
Paki Economist Mahbub ul Haq
Since When? 1990
Report themes
2013 Rise of the South: Human Progress in a Diverse World
2014 Sustaining Human Progress: Reducing Vulnerability and Building Resilience
Five indexes under HDR-2014
Human developmentrelated (2)
1. Human development index HDI
2. inequality adjusted (HDI)
Gender related (2)
3. Gender Development index
4. Gender inequality
Poverty related (1)
5. Multidimensional poverty index
total 5 indexes
Lets checkem one by one
Index#1: Human development index (HDI)

Prakash Jhas Gangaajal should be included in GS4 (Ethics) syllabus
It ranks human development in terms of three basic parameters:
Parameter Quantitative measure (INDEX)
A.to live a long and healthy life A. life expectancy @birth (years)
B.to be educated and knowledgeable
B1: Mean years of schooling
B2: Expected years of Schooling
From these you get Education index, lets call it
B
C.to enjoy a decent economic standard of living.
C. Per capita gross
national
income ($$)
then you normalize A, B and C by this formula (which not important for
exam)
(actual value-min.value)/(max value-min value)
finally HDI is the Geometric Mean of three normalized values =cube root of (A x B X C)
HDI doesnt use arithmetic mean (A+B+C)/3, because even large value in one part, hide deficiency in other areas.
Example Arithmetic mean (90,0,0)= 30. so overall good development, but country has ZERO development on
education and income part! Geometric Mean (90,0,0)=0 will disclose this bogusness.
Ranking
Only focusing on best & most bogus; India, its partners & neighbors
Very HIGH (0.994 onwards) High (0.790 onwards)
1. Norway
2. Australia
3. Switzerland
4. Netherlands
5. USA
57. Russia
73. Sri Lanka
79. Brazil
91. China
Medium (0.698 onwards) Lowest (0.540 onwards)
103. Maldives (highest among all Medium)
135. India (HDI=0.586)
136. Bhutan
142. Bangladesh
In reverse order
1. Niger (187)
2. Congo (186)
3. Central African Republic
4. Chad
5. Sierra Leone
India: One rank improvement
report Indias rank source*
2012 134 out of 187 Survey page. 230
2013 136 out of 186 Survey page. 230
2014 135 out of 187 all over Internet
*clarification because one of the article in TimesofIndia says rank unchanged. But rank has improved.
Tie in Ranking
Since HDR-2013, theyve introduced the concept of tie.
if two countries have same HDI index number upto 3 decimal points, then theyre given same rank.
For example, in HDR-2014 report, Austria, Belgium and Luxembourg each has HDI value of 0.881, therefore given
same rank#21.
But then next rank will be 24 (Iceland). Noone will get rank number 22, 23.
Last rank is Niger 187, means total 187 countries have been ranked.
No ranking in HDR 2014
Following are not given any rank
1. North Korea
2. Monaco (French border)
3. San Marino (Italian Peninsula)
4. Somalia
5. South Sudan
6. Marshall Islands (Oceania)
7. Nauru (Oceania)
8. Tuvalu (Oceania)
Index#2: Inequality adjusted HDI
HDI ranking compares different countries on three parameters: health + education + income.
But what about internal inequality within same country.
For this, another rank created- inequality adjusted HDI.
India Rank same for both HDI and inequality adjusted HDI =135.
Then whats point of calculating? Ans. the Absolute figure tells us how much human development lost due to
inequality within a country.
Indias performance absolute figure
HDI 0.586
inequality adjusted 0.418
% difference over HDI 29%
In other words, 29% of Human development is lost due to inequality.
loss due to inequality %
Russia and highly advanced economies 12%
India 29%
world 23%
Index#3: Gender Development India (GDI)
Calculation Stopped since 2010. But resumed with 2014s report.
Only calculated for 148 countries and not for all those 187 ranked in HDI.
Formula = Female HDI/ Male HDI
So, the best country, where female and male HDI is same, what will be the answer- 0, 0.5 or 1?
Ans. 1. Because numerator and denominator will cancel each other.
So, which country got first rank? Norway? Ans. No, wrong guess.
country G.D.index rank in GDI
Slovakia (Capital Bratislava) 1.000 1
Norway 0.997 5
India 0.828 132 (HDI 135)
Moral of the story: Norway and Kerala wont get #1 everywhere. so, dont tick MCQs on guess work and gut feeling.
Index#4: Gender inequality index (GII)
Based on three parameters
Parameter components India
1. Reproductive health
MMR 200/lakh
Adolescent birth rate 32/1000
2. Empowerment
women in parliament 10.9%
higher education 26.6%
3. Economic activity Labor force participation 28.8%
In Gender inequality index: 0= no inequality and 1 = maximum inequality.
Only calculated for 157 countries. (NOT all 187)
GII-2014 ranking
Rank Gender Inequality
1 Slovenia Capital Ljubljana (not Slovakia)
2 Switzerland
3 Germany
37-94 China>Rus>Brazil>S.Africa
127 India (Value 0.563)
Index#5: Multi-dimensional poverty index
First weve to find two things:
Poverty Incidence Poverty Intensity
has three indicators
1. health
2. education
3. std. of living
How many indicators does the given household lacks?
Finally, MPI = (incidence x intensity)
All over world total 1.5 billion junta suffering from multi-dimensional poverty.
Country % of junta suffering multidimensional poverty?
Maldives 2
China 6
South Africa 10
Nepal 41
Pakistan 46
Bangladesh 50
India 55
We are done with five indexes. Now some filler topics

India sucks everywhere except Life expectancy where Africa sucks due to AIDS
HDI: India vs BRICS Overall world
India lowest among all BRICS except life expectancy (South
Africa lowest)
S.Africa lowest life expectancy among BRICS due to AIDS
Life expectancy: China >>S. Africa
GNI per capita: Russia > Brazil > China > Africa > India
Overall gender gap in the world is 8%
per capita income of men is double than
women
Human development slowed down
worldwide
Human Development: 4 culprits & 6 prescriptions

Fodder for Mains and Essay
Four culprits that slowed Human Development worldwide:
1. Climate change
2. Conflict
3. Social unrest
4. Economic crisis
SIX prescription to combat those 4 culprits.
1. Universal basic service: health, education, water supply, sanitation and public safety (policing).
2. A person is most vulnerable @3 stages in lifecycle. Govt. must protect here
1. First 1000 days after birth
2. When he joins coaching classes
3. When Entering workforce
4. When leaving workforce (due to retirement or disability)
Otherwise, setback at these three stages can be particularly difficult to overcome and may have prolonged impacts. e.g.
malnutrition => low skilled=> less social security @retirement.

Recall that 2014s report theme is Sustaining Human Progress: Reducing VULNERABILITY and Building Resilience. This
chart directly copied from report.
3. Social protection (80% of world lacks). Lack of social security = people sell their assets, takeout children from school
& sent them to child labor.
4. Full employment (50% world informal jobs). Unemployment = crime, suicides; children education, health also suffers.
5. Inclusion of women, disabled and minorities in development.
6. Disaster preparedness. Because natural disasters worsen the existing vulnerabilities, such as poverty, inequality,
environmental degradation and weak governance.
India specific prescription in HDI:
India needs to spend just four per cent of its GDP to ensure a social security net. This social security net should include
NREGA, universal primary health coverage, old age and disabled pensions and child benefits
1999 Odisha cyclone >10,000 dead but 2013 cyclone with same intensity yet less than <50 dead thanks to Disaster
preparedness. Meaning improvement possible, all it takes is political and bureaucratic will.
In MCQs, UPSC is unlikely to ask what are the four culprits or six prescriptions. But you can use this structure to frame good
essay on human Development, demographic dividend etc.
Anyways, enough of Human Development, lets move to other topics
Hyogo Framework for Action
Topic important because
1. mentioned in HDR-2014 report
2. GS3 has disaster Management topic.
Disaster Management conferences
1994 Yokahoma (Japan): World Conference on Natural Disaster Reduction
2005
Hyogo Framework for Action (2005-2015)
Hyogo is in Honshu island of Japan.

Hyogo framework
Who? United Nations Office for Disaster Risk Reduction (UNISDR)
Theme building resilience of nations and communities to disasters.
Target reduce global disaster risk by 2015
168 countries adopted it
It has five priority areas, and steps on how to implement them. MCQ wise not much to ask because 2005s topic. But
lot of fodder for Mains GS3.
Right now, Im not dwelling into it because of space and time limit. You can refer to its two-page summary chart from
this linkunisdr.org/files/8720_summaryHFP20052015.pdf
World Humanitarian Summit
Basics important, because mentioned in HDR 2014 report
Where Istanbul, Turkey
When 2016. But the consultation process has started two years in advance (i.e. since 2014)
By whom?
initiative by UN Secretary-General Ban Ki-moon
UN Office for the Coordination of Humanitarian Affairs (OCHA)
purpose Address the humanitarian crisis caused by natural disasters and conflicts.
Beyond that, not much to write because mostly bol-bachchan. you can find it here:
worldhumanitariansummit.org/whs_about
Gini Coefficient: income inequality
first draw a graph: (cumulative) households on x-axis and (cumulative) wealth on y-axis
If an imaginary country has equal income distribution of wealth, then graph will be a 45 degree line. it can be
interpreted as
o 10% of households own 10% of nations wealth
o 40% of the households own 40% of national wealth and so on.
But a real-countrys graph will not show 45 degree graph. instead itll look curved line (Lorentz Curve) as in following
image:

For India Gini coefficient is ~33% but still we are better than BRICS, US, Swiz; although Japs and Germans have even lesser
inequality than India.
The blue curved line (Lorenz curve) can be interpreted as:
poorest 30% households own only 2% of nations wealth
Richest 10% own 90% of national wealth and so on.
Ok but what is Gini coefficient?
in the graph, straight line = equal wealth distribution
and curved line = real life income inequality.
so, Gini coefficient is derived by finding area under pink(A) and Blue(B), then formula is
Gini coefficient= (A/A+B)
mugup this table for MCQs
Gini value Interpretation
0 equal wealth distribution
between 0 to 1
inequality in wealth distribution
For example, India=0.334. (sometimes expressed in percentage form i.e. 33.4%)
In this criteria, India has lesser inequality than BRICS, USA and Switzerland.
1 most unequal distribution
Lets try some direct MCQ from 22
nd
January 2014s Thehindus Businessline
Q1. Consider following statements
1. World Bank publishes Gini Coefficient
2. Gini Coefficient is an internationally accepted measure of income inequality
3. Higher the Gini Coefficient, lower the inequality
Which of the above statements are correct?
1. Only 1 and 2
2. Only 2
3. Only 2 and 3
4. Only 1 and 3
Correct Answer: A 1 and 2 correct. Third statement wrong because higher gini = higher inequality.
Lets try one more from the same Hindu article:
Q2. Find incorrect statement about Gini coefficient
1. In India, income inequality is lower than USA, as per Gini Coefficient.
2. Its a purely mathematical measure of inequality within a population.
3. Its named after Italian statistician Corrado Gini
Answer choices
1. Only 1 and 2
2. Only 2
3. Only 2 and 3
4. None
Correct Answer: D None. (Because all statements are right.)
- Mrunal - http://mrunal.org -
[Economic Survey] Ch13 P3: Human Resources- Minorities, SC, ST, PH, Elderly; USTAAD, Van Bandhu, Hamari
Dharohar
1. Prologue
2. [Act 1] Minorities
1. Minorities in India?
2. Jains Minority status
3. Shia vs Sunni: Whats the difference?
4. (New) USTAAD
3. [Act 2] SC/ST/OBC
1. Areas without SC/ST population
2. % SC Population: Top 5 & Bottom 5
3. % ST Population: Top 5 & Bottom 5
4. Schemes
5. (SC) Entrepreneur fund
6. (ST) Van Bandhu Kalyan Yojana
7. (ST) Minor Forest produce
8. (OBC) JAT OBC status
4. [Act 3] Physically challenged
1. Adip (existing scheme)
2. Visually challenged (VC): budget 2014
3. Currency: Existing Shapes for blind
4. Plastic Notes
5. PH: New institutions (Budget 2014)
6. WIPOs Marrakesh Treaty
5. [Act 4] Elderly & social security
1. EPFO reforms in Budget 2014
6. [Act 5] Sports
7. [Act 6] Defense: One Rank One pension
8. Appendix
1. Tribals: Andaman vs Nicobar
2. Primitive Tribal groups of India (75)
Prologue
Economic Survey Chapter 13, total four parts
1. UNDPs Human Development report 2014, poor, women and children [coming soon]
2. Demographic Dividend: Education, youth, Skill Development[coming soon]
3. Minorities, SC, ST, PH, Elderly, Sports & Defense [youre here]
4. Rural and urban infrastructure [done]

[Act 1] Minorities

Minorities in India?
Total six minorities in National Commission for Minorities Act 1992
Population wise ranking: (1) Muslims > (2) Christians > (3) Sikhs > (4) Buddhists > (5) Jains > (6) Parsi
NSSO Per capita Expenditure wise: Sikhs > Christians > Muslims > remaining
Minorities are majorities in certain regions for example:
Religion Forms majority in
Muslims
1. Lakshadweep (UT)
2. Jammu and Kashmir
Christians
1. Nagaland
2. Mizoram
3. Meghalaya
Sikhs Punjab
Jains Minority status
6
th
and latest name to be added in central list of minorities. (2014)
Although 11 states had already given them minority status- Chhattisgarh, Delhi, Karnataka, UP, MP, Rajasthan etc.
What Benefits will Jains get?
1. Government cannot interfere in their educational institutions, temples and trusts.
2. They can evict tenants from their community properties. Tenant cannot seek relief under Rent control laws.
3. Eligible for Government schemes for scholarships, fellowships, free coaching for competitive exams etc
4. Bank loans given to Jains will be counted under Priority sector lending (PSL) targets.
Shia vs Sunni: Whats the difference?
Sunni Shia
They chose Abu Bakr, a close Companion of the Prophet
Muhammad, as the Caliph (politico-social leader) of Muslim
community.
They wanted Prophet Muhammads son-in-law Ali
to be appointed as Caliph.
Mughals were Sunni Muslims.
Majority of Indian Muslims are Sunni
India has second largest population of Shia
after Iran
Gujarats Dawoodi Bohra and part of
Varansis weavers are Shia Muslims.
By and large Shia leaders support/have soft
corner for Modi.* (IE, TheDiplomat)
Saudi, Bahrain, Turkey, Qatars ruling regime. Iran and Syrias ruling regime.
Iraqs ISIS
Egypts Muslim brotherhood
Lebanons Hezbollah.
*UPSC is not going to ask that in Prelims. But for interviews,youve to keep in mind that in Politics and Diplomacy, not
everything is black and white, Modi vs Muslims has variety of shades so dont fall into any leading-questions by the panel.
Anyways, lets move to schemes. Im not dwealling into past schemes because most of them being scholarship type, no
questions seen in recent times. Therefore, directly focusing on new schemes:
(New) USTAAD
1. Up gradation of Traditional Skills in Arts, Resources and Goods.
2. Will provide skill Development, marketing linkages and support to minority artisans.
Some examples of Minority arts/handicraft:
1. Muslims: Zardozi Embroidery of Lucknow- given GI tag in 2013. Zardosi is a Persian word for embroidery in gold.
2. Sikh: Phulkari embroidery.
3. Buddhists: Thangka paintings
Other announcements
Hamari Darohar to preserve rich heritage of minority Indian culture
Nai Manzil to give Skill training Madrasa passouts, to help them find job/business in mainstream.
Khwaza Garib Nawaz Maulana Azad Education Foundation (MAEF) will setup this Senior secondary school at Ajmer.
[Act 2] SC/ST/OBC
First Census 2011 data and ranking
Areas without SC/ST population
Census counts SC only in Hindu. No religion bar for ST though.
NO SC NO ST
1. Arunachal Pradesh
2. Nagaland
3. Lakshadweep
4. A&N Islands
1. Punjab
2. Chandigarh
3. Haryana
4. Delhi
5. Pondicherry
list made under article 341 Art. 342
% SC Population: Top 5 & Bottom 5
SC %: Top 5 Bottom 5
1. Punjab
2. Himachal
3. West Bengal
4. Uttar Pradesh
5. Haryana
1. Mizoram (lowest)
2. Meghalaya
3. Goa
4. D & N Haveli
5. Daman & Diu
% ST Population: Top 5 & Bottom 5
ST %: Top 5 Bottom 5
1. Lakshadweep
2. Mizoram
3. Nagaland
4. Meghalaya
5. Arunachal
1. Uttar Pradesh (lowest)
2. Tamil Nadu
3. Bihar
4. Kerala
5. Uttarakhand
We can even prepare separate rankings based on Absolute numbers, only states, no UTbut then cost benefit declines
because hard to memorize so much data.
So moving on:
Schemes
a. Previous schemes available at: wp.me/p2tsJl-1II
b. Again, Im not repeating them here because cost: benefit is bad. Majority of them deal with scholarship and finance
corporations. In recent times, hardly any MCQs seen from that genre in any competitive exam. Prime study focus
should be on Constitutional provisions.
c. Therefore, lets directly jump to new schemes
(SC) Entrepreneur fund
Under IFCI [Industrial Finance Corporation of India]
To promote entrepreneurship among SC theyll receive loans @concessional rates.
Interim budget had given 200 crores, new General budget gave another 200 crores.
(ST) Van Bandhu Kalyan Yojana
NDA Government yet to work out details. But earlier CM Modi had launched a scheme with same name, in Gujarat. So lets
check the salient features of that Gujarat Scheme.
Officially called: Chief ministers 10 point program for Scheduled Tribes
1. Employment 5 lakh Tribal families
2. Education- ITI, Hostel in tribal tehsil
3. Economy: market linkage
4. Health: Chiranjivi Yojana, medical camps for
anemia etc.
5. Housing for all tribal families
6. Safe Drinking water
7. Irrigation, watershed
8. All weather roads (to habitats with population of 250 or
more)
9. 24/7 electricity
10. Urban Development, broadband connectivity in tribal
tehsils
(ST) Minor Forest produce
NAME Mechanism for Marketing of Minor Forest Produce (MFP) through MSP
WHO Tribal ministry, 2013 via Tribal Cooperative Marketing Development Federation of India Limited (TRIFED)
WHAT?
Government announces Minimum support price (MSP) for 12 minor forest produce and herbal medicinal
plants.
Fund for infrastructure Development, knowledge base, market intelligence sharing.
List of Minor forest produce under this scheme
1. Tendu
2. Bamboo
3. Mahuwa Seed
4. Sal Leaf
5. Sal Seed
6. Lac
7. Chironjee
8. wild honey
9. myrobalan (Amla)
10. Tamarind
11. gums
12. Karanj.
(OBC) JAT OBC status
2014: Jats were included in the central OBC list, thereby eligible for reservation in central government jobs and
admissions.
But keep in mind that OBC status depends on domicile.
Therefore, only Jats domiciled in from following nine states are eligible: Bihar, Gujarat, Haryana, Himachal Pradesh,
Madhya Pradesh, Delhi, Uttar Pradesh, Uttarakhand and Rajasthan.
National Commission for Backward Classes (NCBC) had advised government not to give them OBC status.
[Act 3] Physically challenged
There are many existing schemes & organization: ALIMCO, DDRS, DDRC, Jaipur foot etc. but as I explained earlier- cost
benefit is bad. Still, if you want to check visitwp.me/p2tsJl-1JF
Adip (existing scheme)
WHO Ministry of Social justice and Empowerment
WHAT? Money for purchasing aids/devices for Physically challenged.
Budget-2014 Will give fund for modern/contemporary devices.
Visually challenged (VC): budget 2014
India has worlds largest population of visually challenged people. More than 2 crores.
Will setup 15 new braille presses, to meet demand of books for VC.
Will modernize 10 existing presses.
Currency notes with Braille like signs for easy identification.

Currency: Existing Shapes for blind
note shape in the middle of left side
Rs.1000 Diamond
Rs.500 Round
Rs.100 Triangle
Rs.50 Square
Rs.20 Rectangle
Rs.10 No Shape
Rs.5 No Shape
Plastic Notes
Current paper currency is printed on Cotton Fibre paper.
RBI plans to introduce Polymer plastic notes of Rs.10
Pilot testing will be done in five cities Kochi, Mysore, Jaipur, Shimla and Bhubaneswar- selected for their different
climate conditions.
Benefits: longer life span (5 years), difficult to counterfeit, stain proof, tear proof, cheaper to produce.
Australia: first country to introduce plastic notes.
Timeframe to introduce plastic notes: India (2015), UK (2016)
PH: New institutions (Budget 2014)
1. Universal inclusive design institution- for construction of disabled friendly building, public transport and civic
amnesties.
2. National mental health rehabilitation institute.
3. Centre for disability sports.
WIPOs Marrakesh Treaty
Copyright doesnt apply IF book is reproduced for visually challenged (VC) people i.e. in Braille language, audiobooks
etc.
Even permits cross-border exchange and translation of such books for the benefit of VC.
BUT with conditions: only non-profit purpose, have to get license from national bodies.
2014: India signed and ratified this treaty.
more details on WIPO: wp.me/p2tsJl-1gC
[Act 4] Elderly & social security
a. Existing Sarkaari Insurance schemes: wp.me/p2tsJl-1Dv. (Ill cover Insurance FDI, PFRDA, NPS, Swavlamban etc
under Chapter 5 financial intermediaries).
b. Social security, EPFO, ESIC, factories act etc: wp.me/p2tsJl-gs
Lets directly move to:
Budget 2014: new announcements
Varishtha Pension
BIMA Yojana
for those aged 60 and above
Scheme validity only 1 year from 15
th
August 2014.
Unclaimed Money
Lot of money lying in PPF, Post office Savings- it belongs to senior citizens who did not give
proper payment instructions before their death.
Budget 2014 promised a committee on how to use this unclaimed money for welfare of
other senior citizens.
EPFO reforms in Budget 2014
a. Promised Minimum Rs.1000 pension per month, to all subscribers.
b. All workers whose basic pay is upto Rs.15,000- theyll have to compulsorily join EPS scheme.
c. Meaning theyll have to contribute 12% of basic in provident fund and their employer will also have to contribute 12%.
d. Earlier this ceiling was 6500. Thus, now more workers will be covered in this social security net.
e. Uniform Account Number (UAN)- so you dont have to open a new EPFO account every time you switch jobs.
[Act 5] Sports
Budget 2014 announcements
Training
Will setup National level sports academies across India. Theyll Will train potential champions from
junior level
100 cr. For training our athletes for ASIAN and commonwealth games.
New institutions
Sports University at Manipur (100 cr)
Centre for Disability sports. (location undecided)
J&K
indoor and outdoor sports stadiums (200cr.)
Itll help prevent extremists influence on youth.
Himalayan
sports
Will host
games
to unique Himalayan sports; will Invite Nepal, Bhutan and hill states.
Related: PIN-2014: Sports, venues, mascots and awards: wp.me/p2tsJl-2Dz
[Act 6] Defense: One Rank One pension
2006: UPA government modified pension rules for defense services
As a result, a serviceman retiring after 2006 would receive bigger pension than someone retired before 2006.
Even if both were in same rank and had spent same number of years in service!
Therefore, defense personnel were demanding one rank one pension.
Both Interim budget and General budget 2014 made additional funding for this.
Defense: Budget 2014 announcements-some fodder for GS3.
Numbers not important
1. War memorial for defense forces at Princes park, Delhi 100 cr
2. Police memorial: Location yet to be decided
50 cr
3. Socio-economic Development of border villages
990 cr
4. Rail connectivity to border areas 1000 cr
5. Research fund. Money will be given to PSU, private companies and universities
100 cr
6. Marine police station, boats 150 cr
7. Internal security
3000 cr
8. Capital assets for defense 5000 cr
Related Topics (Click on the links)
1. PIN 2014: Defense related persons / terms in News.
2. Defense compilation for static information on various forces, missiles, weapons etc.
Appendix
Once in a while, UPSC asks human geography question about Tribe vs location.
Tribals: Andaman vs Nicobar
Andaman: Negrito Tribes Nicobar: Mongoloid Tribes
1. Great Andamanese
2. Onge
3. Jarawa
4. Sentinalese
1. Nicobarese
2. Shompens
Primitive Tribal groups of India (75)
Government calls them Particularly Vulnerable Tribal Groups (PTGs) (2006 onwards)
Andhra Pradesh Odisha
1. Bodo Gadaba
2. Bondo Poroja
3. Chenchu
4. Dongria Khond
5. Gutob Gadaba
6. Khond Poroja
7. Kolam
8. Kondareddis
9. Konda Savaras
10. Kutia Khond
11. Parengi Poroja
12. Thoti
1. Birhor
2. Bondo
3. Didayi
4. Dongria-Khond
5. Juangs
6. Kharias
7. Kutia Kondh
8. Lanjia Sauras
9. Lodhas
10. Mankidias
11. Paudi Bhuyans
12. Soura
13. Chuktia Bhunjia
MP+Chattisgarh Bihar+Jharkhand
1. Abujh Marias
2. Baigas
3. Bharias
4. Hill Korbas
5. Kamars
6. Saharias
7. Birhor
1. Asurs
2. Birhor
3. Birjia
4. Hill Kharia
5. Korwas
6. Mal Paharia
7. Parhaiyas
8. Sauria Paharia
9. Savar
Gujarat Kerala
1. Kathodi
2. Kotwalia
3. Padhar
4. Siddi
5. Kolgha
1. Cholanaikayan
2. Kadar
3. Kattunayakan
4. Kurumbas
5. Koraga
Karnataka UP+Uttaranchal
1. Jenu Kuruba
2. Koraga
1. Buxas
2. Rajis
Maharashtra WB
1. Katkaria (Kathodia)
2. Kolam
3. Maria Gond
1. Birhor
2. Lodhas
3. Totos
Tamilnadu Andaman Nicobar
1. Kattu Nayakans
2. Kotas
3. Kurumbas
4. Irulas
5. Paniyans
6. Todas
1. Great Andamanese
2. Jarawas
3. Onges
4. Sentinelese
5. Shom Pens
Finally, states with only 1 Primitive tribal group each
Manipur Marram Nagas
Rajasthan Seharias
Tripura Reangs


- Mrunal - http://mrunal.org -
[Economic Survey] Ch13 P4: Rural & Urban Infrastructure, REITs, Smart Cities, Swatchh Bharat, Rurban, Gram
Jyoti
1. Prologue
2. [Act I] Rural Infrastructure (RI)
1. RINS1: Rurban Mission
2. RINS2: Gram Jyoti Mission
3. RIES1: Indira Awas Yojana
4. RIES2: Rural housing fund (NHB)
5. RIES3: National rural Drinking water Program (NRDWP)
6. RIES4: Nirmal Bharat Abhiyan
7. RINS1 (NEW) Swatchh Bharat Abhiyan
8. RIES5: Backward Region Grant Fund (BRGF)
9. RIES6: Pradhan Mantri Gram Sadak Yojana (PMGSY)
3. [Act II] Urban Infrastructure (UI)
1. Urban Area Definition (Census 2011)
2. City Tiers
3. UINS1: Smart cities
1. What is smart city?
2. FDI in Smart cities
4. UINS2: Real Estate Investment Trusts (REITS)
1. How does REITs work?
2. Whatre the benefits of REITS?
3. What is InvITS?
5. UINS3: Housing for All 2022
6. UINS4: 500 Cities Urban renewal
7. UIES1: JNNRUM 2005
8. UIES2: Rajiv Awas Yojana
9. UIES3: Rajiv RINN Detergent Yojana
10. UIES4: Municipal Debt
4. [Act III] State specific Misc.
1. SS1: North East | SS2: Jammu Kashmir
2. SS3: Delhi | SS4: UTs
5. Appendix:
1. Pt. Deendayal Upadhyaya (1916-1968)
2. Dr. Shyama Prasad Mukerjee (1901-1953)
3. Delhi Pact (Nehru- Liaqat) 1950
4. FAQ | Credits
Prologue
Chapter 13, total four parts
1. UNDPs Human Development report 2014, poor, women and children [coming soon]
2. Education, youth, minorities, SC, ST, PH, Elderly [coming soon]
3. Rural and urban infrastructure [youre here]
Structure of these articles:

1. Trivial Statistics | Theory (if and where applicable)
2. Schemes: New | Existing (Only those mentioned in Survey OR budget.)
3. Economic Survey observations (if and where applicable)
[Act I] Rural Infrastructure (RI)
But first, some trivial GK from Census 2011.

For MCQs
1. in absolute numbers, both urban and rural population increased
2. But percentage wise, rural population has declined.
3. Maximum number of villages: UP >> MP >> Odisha
4. Lowest number of villages: Chandigarh << Laskhdweep << Diu-Daman
5. Total Villages: 597485 = ~6 Lakh
6. Total Villagers: 80 crore+
7. Villages occupied by Pakistan and China not counted in Census 2011.
Now lets start with the bogus sarkaari schemes:
RINS: Rural infra new scheme
RIES: Rural Infra Existing scheme
RINS1: Rurban Mission
NAME Shyama Prasad Mukerjee Rurban Mission* (Ref. Appendix for more details on him)
WHO Undeclared. most probably rural Development ministry
WHY? Villagers get civic infrastructure similar to city folks. including skill development and economic opportunities
FUNDING Via PPP
RINS2: Gram Jyoti Mission
NAME Deendayal Upadhyaya Gram Jyoti Yojana *(Ref. Appendix for more details on him)
WHO Undeclared. Most probably Power ministry because they run R***** G***** Vidhuytikaran Yojana.
WHY? give 24/7 electricity to villagers. upgrade distribution in rural areas
FUNDING 500 cr. (figure not important)
Third is Swatch Bharat given after few paras- to keep continuity in revision. Now lets move to existing schemes:
RIES1: Indira Awas Yojana
Who? Rural Development ministry
What? Gram sabha identifies BPL households. They get money to construct house.
Money flow DRDA => Gram Panchyat.
Benefits
Nature of work figures not important
house in plains 70,000/-
house in hills, difficult terrain, LWE area 75,000/-
upgrading existing house 15,000/-
land purchase 20,000/-
Land development portion: eligible for MNREGA project work. They also get electricity connection under R** G**
Vidhutikaran Yojana, toilet under Nirmal Bharat abhiyan.
Single women get separate quota under Indira Awas Yojana and Rajiv Awas Yojana
MIS Software: Awaasoft for transparency, target tracking and automation of work.

RIES2: Rural housing fund (NHB)
By whom?
National
Housing Bank (NHB) since 2008. BTW, RBI owns NHB.
Why? Give home loans to weaker sections in rural area. Upto 15 lakh rupees.
Budget 2014 Gave 8000 crores to it.
RIES3: National rural drinking water program (NRDWP)
Who? Ministry of drinking water supply, 2009
What?
by 2022 well supply 70 litre water per person
within his household or within 50 metres distance
68% junta already covered but slippage due to groundwater depletion, population rise and passive gram
Sabhas
Related topics: Neelanchal and PM sinchayi yojana- but under agro chapter.
RIES4: Nirmal Bharat Abhiyan
Earlier known as Total Sanitation Campaign (TSC) Renamed in 2012.
Who? Ministry of drinking water supply
What?
As per Census 2011, hardly 33% households have latrine.
NBA aims to provide 100% latrine access to all household. technically called Individual House Hold Latrines
(IHHL)
Money given to BPL.
Money given to APL SC, ST and other vulnerable communities.
Gram Panchayats get Nirmal Gram Puraskar award for being free of open defecation.
Sikkim: first Nirmal State in the country having achieved full sanitation coverage.
Challenges:
1. Rural sanitation is a state subject. But state governments more interested in giving funds to free electricity, food etc. for
vote bank politics. Therefore, rural sanitation not getting the necessary support.
2. New research on region wise low cost toilets.
RINS1 (NEW) Swatchh Bharat Abhiyan
Who? Undeclared, but most like the Ministry of Drinking water supply
What? 100% toilet access to all households
When? By 2019: Gandhis 150
th
Birth anniversary.
RIES5: Backward Region Grant Fund (BRGF)
Who? Ministry of Panchayati Raj (also runs another scheme Panchayat Shashaktikaran Yojana)
What? Additional money to backward regions, so they can reach Development level of other normal areas.
This money is used for improving water, sanitation, schools, street lights etc. rural infrastructure.
Using Panchayati Raj institutions (PRI), bottom up Development model.
BRGF has two components
District component State component
~272 district, minimum 1 crore given to each Bihar, Odisha, W.Bengal, UP (Bundelkhand)
Budget 2014 promised to restructure BRGF such that
1. intra-district inequalities reduced
2. Sub-districts units within States get adequate support.
RIES6: Pradhan Mantri Gram Sadak Yojana (PMGSY)
Who? Rural Development ministry 2000 under Vajpayee regime.
What?
To construct all weather roads to unconnected habitats.
500 persons in plains area.
250: tribal, desert and special category- North East, JK, Himachal and Uttranchal
Population conditions as per Census 2001
How? Money comes from Cess on High speed diesel via Central Road Fund Act.
Budget 2014: >14k crore allotted
[Act II] Urban Infrastructure (UI)
ES: existing scheme
NS: New scheme
But first some trivial GK
Urban Area Definition (Census 2011)
Two categories
Statutory Towns Census towns
All places with a municipality, corporation, cantonment board or
notified town area committee, etc.
that meet following conditions
A. minimum population 5000
B. minimum population density 400
persons per sq.km
C. 75% of males in non-agro work
4041 towns. Number not important but interpretation is: majority of
Urban India is Statutory towns.
3894 towns
City Tiers
Center city Population is ____
Metropolitan 10 lakh and above
Urban Tier 1 1 lakh and above
Semi-Urban
Tier 2 50,000 to 99,999
Tier 3 20,000 to 49,999
Tier 4 10,000 to 19,999
Rural
Tier 5 5,000 to 9,999
Tier 6 less than 5,000.
(CENSUS-2011) Population wise Metropolitans: Mumbai > Delhi > Kolkata > Chennai > Bangalore.
UN report 2014: Delhi highest population. then Mumbai.
Total population in Urban area: ~31.2% OR 37+ crores public.
well see IMR, MMR etc data under Health part of Chapter 13.
UINS1: Smart cities
WHO Ministry of Urban Development
WHY Rise of neo middle class who wants better civic amnesties
Where
Will construct new satellite towns outside larger cities.
Will modernize existing mid-size cities
What is smart city?
Provides civic amnesties via Information communication technology (ICT) solution.
Street lights switched on and off via automated timers, to save maximum energy.
Real time information on parking, traffic congestion, public transport
As a result, Smart cities are energy efficient and have low carbon foot print.
Smart cities Examples
Surat online monitoring of water quality
Boston, US gunshot sensors placed around city, to immediately notify police on crime in progress.
Dublin (Ireland) mobile apps for parking slot, so you dont have to loiter here and there to find empty space.
London, UK
Mayor gets constant data on city performance, even data mining tools to analyze live
twitter
feeds (e.g. junta complaining about traffic or late trains)
Proposed smart cities across Industrial corridors:
1. Manesar (HAR)
2. Dholera (Guj)
3. Shendra (MH)
4. Tumkur (KAR)
5. Khushkera (RAJ)
6. Krishnapatanam (Andhra)
7. Ponneri (TN)
FDI in Smart cities
With following caveats
Condition Before after
*Minimum build up area (sq.m) 50k 20k
*Investment (USD) 10 mil. 5 mil.
Lock in period after project completion 3 years same
*These limit dont apply to foreign investor, IF 30% of the money spent on low-cost housing for poors/lower middle class.
UINS2: Real Estate Investment Trusts (REITS)
Hindi:
Not exactly a scheme but investment tool. Anyways, what is REITS? Observe the words
Real Estate to construct homes, offices, townships
Investment Indians, NRIs, foreigners all welcome to invest
Trust operated by professional managers (similar to mutual fund managers)
How does REITs work?

Mechanism similar to Mutual funds
Junta pools money. Each gets unit according to his contribution in the pool.
Trust manager invests money in completed / almost completed projects.
Such Property is rented / leased. Rent money distributed among investors according to number of units held by them.
In US, UK: Trust manager must distribute 90% of earning as dividends. (in other words, he can keep upon 10%
commission)
Budget 2014 promised well permit REITs and will not demand corporate tax on them.
SEBI will notify rules in August 2014.
Whatre the benefits of REITS?
1. (Proposed) minimum investment limit will be 5 lakh rupees. (Probably) will provide higher return on investment than
bank, sharemarket= less investment in gold, less current account deficit.
2. REITS units can be sold at stock exchange. (Just like those CPSE exchange traded Funds). Therefore, you dont have
to wait till maturity or real estate prices to go up. You can sell your units anytime and recover money.
3. This will provide additional source of finance for real estate developers. So they can finish existing projects, recover
money and repay bank loans. NPA will be reduced.
What is InvITS?
Infrastructure investment trusts
Mechanism similar to REITS.
You give money, fund manager builds infrastructure- ports, powerlines, highways. Asset generates income (Port fees,
toll collection etc.) from there, you get dividend in proportion to units held by you.
Budget 2014 permitted InvITS as well.
UINS3: Housing for All 2022
Exact details not disclosed. but, to achieve this, following measures taken
1. Income tax: home loan interest deduction raised from 1.5 lakh to 2 lakh.
2. National housing bank given funds for mission on low cost affordable housing.
3. Under companies act, certain companies have to spend 2% of their profit on CSR activities. From now on, slum
development also included in one such corporate social responsibility (CSR) work.
4. FDI for smart cities
5. REITs
6. Municipal debt pool.
UINS4: 500 Cities Urban renewal
In 500 cities, 4 things for next 10 years, via PPP
1. digital connectivity
2. safe drinking water
3. Waste management
4. Recycled water for growing organic fruits and vegetable.
Now lets check some old schemes mentioned in economic survey and or budget 2014
UIES1: JNNRUM 2005
NAME Jawaharlal Nehru National Urban Renewal Mission (JNNURM) 2005
WHO Ministry of Urban Development
WHEN
7 years time frame. UPA-II wanted to renew but then regime Change. New minister Naidu says well rename and re-
launch this scheme.
JNNURM has submission for water supply, sanitation, waste Management, transport etc.
State and local bodies have to first reform themselves to become eligible for JNNURM funding. eg. Adopting e-
governance, simplifying property tax collection etc.
Not going into more details because as Naidu said, well rename and relaunch!
UIES2: Rajiv Awas Yojana
WHO Ministry of housing and urban poverty alleviation
WHEN
1. Preparatory phase: 2011-13
2. Implementation phase: 2013-22
Why
to create Slum free (Urban) India
How
curative approach: to upgrade existing slums into proper houses
Preventive approach to prevent new slums.
UIES3: Rajiv RINN Detergent Yojana
WHO Ministry of housing and urban poverty alleviation
Why
Provide loans to economic weaker section (EWS). so they can buy homes in Urban areas, instead of living
in slums.
EPICFAIL
because
Ceiling 1-1.6 lakh rupee. Not possible to buy in cities @this price!
Loan was to be given via banks. Banks reluctant to give loans to these sub-prime borrowers.
Lets check new schemes under Abki baar Modi Sarkar.
UIES4: Municipal Debt
a. 2006: Government setup Pooled Municipal Debt Obligation Facility
b. It provides loans to municipalities
c. For projects related to public transport, solid waste disposal, sewerage treatment, drinking water etc.
d. Budget 2014: promised to give 50,000 crores in next 5 years.
So far we learned Rural infra and Urban Infra. Now last part of this whole series.
[Act III] State specific Misc.
SS1: North East
Will promote Commercial organic farming.
Will launch Arun Prabha Channel for cultural integrity.
Rail connectivity: 1000 cr given.
From all India Plan outlay: 10% will be given North east. This will be Non-lapsable. i.e. even if they can spend money
by 31st March 2015, they wont have to return money back.
SS2: Jammu Kashmir
Numbers not important
Rehabilitate displaced Kashmiri Migrant 500 cr
indoor outdoor stadium- building new, upgrading existing. 200 cr
Pashmina Promotion Programme (P-3) 50 cr.
SS3: Delhi
Numbers not important
Water, electricity reform 700cr.
setup Hastkala Academy for handicrafts 30cr.
Renuka Dam 50cr.
What Is Renuka Dam?
Yamuna river => Tributary Giri River (HP)
Himachal Power corp. ltd. will construct a dam on it, in Renuka wildlife sanctuary.
petitions filed in National green tribunal (NGT)
SS4: UTs
Numbers not important
Andaman Nicobar communication infrastructure modernization 150
Puducherry disaster Management preparedness 188
Appendix:
Since Modi named schemes after these leaders, weve to prepareem for General Studies Mains Paper 1: pre-independence and
post-independence India.
Pt. Deendayal Upadhyaya (1916-1968)

1. Born: Mathura district in UP
2. Bharatiya Jan Sangh (BJS) General Secretary for 15 years
3. Gave Political philosophy Integral Humainism (BJP)
4. Editor of Panchjanya and Swadesh
5. Budget 2014 Scheme named after him- Gram Jyoti for 24/7 electricity supply to villagers.
Dr. Shyama Prasad Mukerjee (1901-1953)
Barrister from England
Youngest VC of Calcutta University
Active in Asiatic society of Calcutta
President of Hindu Mahasabha (1940-44)
Opposed Sarat Suharawady pact, which aimed to create separate Bengal nation.
Minster of Industries and Supply in Nehrus Interim Central government. But resigned due to Delhi Pact.
Bharatiya Jansangh founder
Wanted Uniform civil code
Wanted full integration of Jammu and Kashmir i.e. remove article 370
Budget 2014: Scheme named after him Rurban mission.
Delhi Pact (Nehru- Liaqat) 1950
Signed between Nehru and Paki PM Liaqat Ali Khan.
To prevent communal violence and persecution of refugees.
Salient Features:
1. Equal citizenship to minorities in both countries. Their minority rights will be enforced.
2. Refugees can return to dispose their properties.
3. Abducted women, looted properties will be returned.
4. Forced religious conversions will be unrecognized.
5. Well appoint minority commissions to implement these terms.
Shayama Prasad Mukerjee opposed this pact because Two similar agreements were made in past but they were #EPICFAIL.
So, he felt Pakis would not honor this third agreement either.
FAQ
Q. UPSC exam postpone or not?
Ans. Panel has submitted report, government deliberating on it. Ref: firstpost.com/?p=1643723. Either way, study-momentum
must be sustained.
Q. I had filed RTI to get mains answersheet but UPSC replied NO.
Ans. Talked with RTI expert lawyer friends. UPSC filed SLP against CIC judgment in Supreme Court. (CIC had
earlier ordered disclosure of mains answersheets).
So, if you appeal to FAA hell take CPIOs side saying case in SC. You further appeal in CIC, video conferencing date
may be allotted after 3-5-6 months because of the case pendency.
Nonetheless, if you want to make appeal to FAA, then my RTI champion lawyer friend has drafted readymade petition.
Just download following wordfile :files.secureserver.net/0shQTLbTl9pIg5
edit details, and upload it on onlinerti portal /OR SEND VIA post it to FAA.
Q. What about those youtube videos?
Ans. Long story cut short, It had become difficult to ride two horses, so I stopped giving lectures, till prelim is over. So no
lecture, no video.
Q. This is chapter 13 what about remaining chapters?
Ans. Im publishing in reverse order of chapters: 13, 12, 11
Q. Youve not mentioned XYZ scheme / fund /policy in this article?
Ans. Many reasons
1. Scheme to be included in some other part e.g. safe drinking water under health part. Neelanchal under Agro part and so
on.
2. Scheme not given in economic survey / budget.
3. As such there are 66 centrally sponsored schemes, and many of them covered under previous summary of Economic
survey 2012. But cost benefit = bad, if you start digging and mugging up all of them. Hence focusing only on the
schemes that are in news.
4. Existing scheme that doesnt have much MCQ worthy glamour in them e.g. Panchayat Shashaktikaran yojana.
Q. Youve hardly given any points for the new schemes
Ans. Jaitley himself did not discuss which ministry will implement? Wholl be the eligible beneficiaries, whatll be the salient
features etc. Most probably, Modi saving all those details for his 15
th
august speech which will be a mini-budget in itself!
Q. Youre giving so many stupid ascending descending sequence for everything- taxes, census, GDP components and so
on. It is humanly impossible to memorize so much data.
Ans. Its called spray and pray technique. Throw up enough data, at least 1 MCQ gets asked in atleast one competitive exam.
Then I can make bogus marketing propaganda that it came from my site. Besides, Compared to the amount of spray and pray
data thrown in coaching material and competitive magazines, Im the lesser evil in this mafia town.
Q. Will you finish this series before prelim comes?
Ans. I will try to. But unlike Salman Khan, I cant make commitment because there are many factors beyond my control.
Credits
Technically, this is the last part of the Economic Survey 2013 article series. Therefore, credits must roll at the end of the
movie.