Current Affairs

1.
MINISTRY OF DEFENCE
1. Humanitarian Assistance To Maldives From India
In a swift response to the National Crisis faced by the Maldives, following the shutting down the
desalination plants in a fire incident in capital in Male, the Indian Government has pressed into
service as much as five Indian Air Force transport aircraft and one Naval vessel carrying a large
consignment of potable water to meet the immediate requirement of the people in Male.
Maldives, an island nation in the Indian Ocean, has no natural water source and consumes only
treated sea water.
2. AGNI 4 Long Range Missile Successfully Test Fired
Agni 4, the 4000 kms range Nuclear Capable Ballistic Missile was successfully launched from the
wheeler island off the coast of Odisha. This was the fourth successful trial in a series. The long
range Radars and Electro-Optical Tracking systems (EOTS) located all along the coast tracked and
monitored all the parameters throughout the flight.
Agni 4 is equipped with state of the art Avionics, 5th generation On Board Computer and
distributed architecture. It has the latest features to correct and guide itself for inflight
disturbances. The most accurate Ring Laser Gyro based Inertial Navigation System (RINS) and
supported by redundant, highly reliable Micro Navigation System (MINGS), ensures high
accuracy.
The re-entry heat shield is capable of withstanding high temperatures that may reach as high as
4000 degree centigrade and above during reentry of missile in earths atmosphere and makes sure
that the avionics function normally, with inside temperature remaining less than 50 degree
centigrade. With Agni 1, 2, 3 and Prithvi already in Indias arsenal, Agni 4 further extends the
reach and enhances effective deterrence capability. The launch operations were carried out by the
Strategic Forces Command (SFC).
3. DRDO Tests 1000 Kg Class Indigenous Guided Glide Bomb
A 1000 kg glide bomb designed and developed by Defence Research and Development Organisation
(DRDO) was successfully tested, in Bay of Bengal of the coast of Odisha. The bomb was dropped
by an Indian Air force aircraft, The bomb, guided by its on board navigation system glided for
nearly 100 km before hitting the target with great precision. The flight of the glide bomb was
monitored by radars and electro-optic systems stationed at Integrated Test Range (ITR). Multiple
DRDO laboratories namely, DARE, Bangalore, ARDE, Pune and TBRL, Chandigarh, with RCI,
Hyderabad as the nodal laboratory have contributed towards development of the glide bomb. The
complete avionics package and navigation system has been designed and developed by RCI.
4. DRDO's Parachute System for Recovery of Mission Crew Capsule
The successful launch of GSLV MK3 by ISRO from Sriharikota yesterday, to validate Moon Mission
Crew Capsule Recovery system equipped with advanced parachute system designed and developed
by ADRDE (Aerial Delivery
R&D Estt), an Agra based ADRDE is the premier DRDO laboratory, one of its kind in the
lab of DRDO proved the country, specializing in design development and leading to
efficacy and reliability of production para drop systems for a comprehensive range of military
the parachute system. The applications. A large number of such systems such as Combat Free
parachute
deployment Fall system, heavy drop systems, P 7 & P 16, capable of aerial
system functioned perfectly delivery of payloads up to 7 tons and 16 tons respectively.
and achieved the required
descent rate. ISRO has
expressed happiness and thanked ADRDE & DRDO for the support.
5. Commissioning of Coast Guard Air Enclave Bhubaneswar & 743 SQN(CG)
In a befitting ceremony, the Coast Guard Air Enclave Bhubaneswar and743 Dornier Squadron
have been commissioned by Vice AdmiralAnurag G Thapliyal, Director General, Indian Coast
PIB Gist of the Month (December)
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Guard, at Biju Patnaik International Airport Bhubaneswar. The commissioning of the Air Enclave
will provide the required fillip for protection of sensitive marine environment and vital assets
thronging on the shores of coastal Odisha. Further, Odisha coast being hub of shipping traffic
emerging to east and Far East, the coordination of search and rescue efforts will certainly get the
required boost. As Odisha is also periodically affected by natural calamities; the availability of
Coast Guard maritime air assets will enhance the capability of disaster response.
6. DRDO Wins Innovation Excellence Award
Defence Research & Development Organisation (DRDO), has been once again awarded the
prestigious Thomson Reuters India Innovation Award- 2014 in category of Research Institutions.
The award was adjudged on the basis of patents filed, efficiency and effectiveness of research, the
impact of innovations as measured by patent citations and international competitiveness. DRDO
had also won the Thomson Reuters India Innovation Award- 2011 in the category of Hi-Tech
Academic & Government.
7. Maiden Flight of Panchi
Panchi, the wheeled version of Unmanned Aerial Vehicle (UAV) Nishant capable of taking-off and
landing using small airstrips had its maiden flight lasting about 20 minutes.
The conventional Nishant UAV already inducted in Army is a multi-mission UAV with Day/Night
operational capability, launched from an all-terrain hydro-pneumatic launcher and is recovered
with the help of on board parachute system and an underbelly airbag. It is designed for battlefield
surveillance and reconnaissance, target tracking& localization, and artillery fire correction.
The electro-optic payloads are mounted on a stabilized steerable platform. A sophisticated image
processing system is used for analyzing the images transmitted from the UAV. The aircraft has a
jam resistant command link and digital down link for transmission of imagery. The air vehicle has
autonomous flight capabilities and is controlled from a user friendly Ground Control Station.
2. MINISTRY OF FINANCE
1. Enhancing the Power of Forward Markets Commission (FMC)
The Government has issued draft rules to give the commodity markets regulator Forward Markets
Commission more powers to effectively regulate the intermediaries of the commodity derivatives
markets.
The Draft Rules provide, inter-alia for registration of intermediaries, obligations and responsibilities
and procedure for inspection and disciplinary actions against intermediaries of the commodity
derivatives market. National Spot Exchange Limited has not been under the regulatory supervision
of Forward Markets Commission (FMC). However, empowerment of the Forward Markets
Commission is an on-going activity. The government has enhanced the administrative and financial
powers of FMC. Besides, FMC has also been granted reasonable independence in engaging
professionals, including legal firms and counsels, for enhancing its efficiency and efficacy.
2. Indian Trusts (Amendment) Bill, 2014
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the introduction
of the Indian Trusts (Amendment) Bill, 2014 in the current session of Parliament to amend section
20 and 20A of the Indian Trusts Act, 1882. The amendments are intended to provide the trustees
greater autonomy and flexibility to take decisions on investment of trust money. This would enable
the Central Government to notify securities or class of securities, for investment by trusts and to
remove the outdated provisions occurring in section 20 of the Indian Trusts Act, 1882.
3. Amendments to Regional Rural Banks Act, 1976
The Union Cabinet, chaired by the Prime Minister approved the amendments in the Regional Rural
Banks (RRBs) Act, 1976 to enhance authorized and issued capital to strengthen their capital base
and to bring flexibility in the shareholding between Central Government, State Government and
Sponsor Bank. The term of the non-official directors appointed by the Central Government will be
fixed not exceeding three years.
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The amendments will ensure financial stability of RRBs which will enable them to play a greater
role in financial inclusion and meeting credit requirements of rural areas and the Board of RRBs
will be strengthened.
Background
Regional Rural Banks were established under Regional Rural Banks Act, 1976 (the RRB Act) to
create an alternative channel to the cooperative credit structure and to ensure sufficient
institutional credit for the rural and agriculture sector. RRBs are jointly owned by Government of
India, the concerned State Government and Sponsor Banks with the issued capital shared in the
proportion of 50 percent, 15 percent and 35 percent respectively. As per provisions of the
Regional Rural Banks Act, 1976 the authorized capital of each RRB is Rs. five crore and the
issued capital is maximum Rs one crore.
4. Shyamala Gopinath Committee for KVP
The Shyamala Gopinath Comrnittee constituted on Small Savings Schemes has submitted its
report to the Government. Major recommendations of the committee were:- (i) to reduce/abolish
agent`s commission except Manila Pradhan Kshetriya Bachat Yojana (MPKBY) agents to restrict
management cost (ii) secondary market yields on Central Government Securities of comparable
maturities should be the benchmarks for the interest on various small savings instruments and
should be reset every 1s1 April (iii) Committee recommended to reduce minimum share for States
from 80% to 50% against net collection and recommended that amount received on redemption of
Central/State Governments securities should be reinvested between Centre and States in the ratio
of 50:50.
After detailed deliberation and in light of views received from State Governments, various
Departments of Central Government and Agent`s Association, most of the recommendations of the
Committee are being implemented.
In view of developments observed by the Committee in 2011 on AML/CFT front the KVP was
recommended to be discontinued by the Committee. KVP has been re-notified by the Government
on 23-9-2014. Under the re-notified KVP the investor has to undergo the Know Your Customer
(KYC) modalities at Post Office or Bank.
5. India Signs Guarantee Agreement with the World Bank for IBRD Direct Lending
A Guarantee Agreement for World Bank (IBRD) lending of US $ 1100 million to the Dedicated
Freight Corridor Corporation India Ltd (DFCCIL) for Eastern Dedicated Freight Corridor-II Project
(EDFC-II) has been signed between the Government of India and the World Bank.
The objective of the EDFC-II Project is to augment rail transport capacity, improve service quality
and enhance freight carriage throughout on the 393 km Kanpur-Mughal Sarai secton of the
Eastern Dedicated Freight Corridor; and develop institutional capacity of DFCCIL to build,
maintain and operate the entire DFC network. This project is in continuation to the Phase-I of the
EDFC Project presently being implemented by the DFCCIL with the World Bank loan of US$ 975
million on the Khurja-Kanpur stretch of the Eastern rail corridor (Ludhiana-Delhi-Kolkata). The
project will directly benefit the power and heavy manufacturing industries of northern and eastern
India, which rely on railway network for transportation of their material inputs and also for the
distribution of bulk processed and semi-processed commodities and consumer goods. Railway
passengers will also be benefitted through decongestion of the existing passenger lines.
6. Shadow Banking Implementation Group (SBIG) Constituted to undertake Micro Mapping of
Shadow Banks and to Assess the Risks
Reserve Bank of India (RBI) has constituted Shadow Banking Implementation Group (SBIG) to
undertake micro mapping of shadow banks to assess the risks posed by such entities to the formal
financial sector. SBIG is chaired by RBI and constitutes of members from Ministry of Finance,
Stock Exchange Board of India, Ministry of Agriculture and Cooperation, National Housing Bank,
National Bank for Agriculture & Rural Development, Insurance Regulatory Development Authority,
Ministry of Corporate Affairs, Registrar of Agriculture and Cooperatives.
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Terms of Reference of SBIG are as follows:
As a first step, the Group will undertake an assessment of the position of compliance of the
regulatory framework in the country vis--vis the Financial Stability Board policy guidelines;
The Group will then carry out gap, analysis to identify the reform measures that can be
implemented and those where implementation may not be desirable given the specific domestic
conditions;
Where it may not be desirable to initiate the reform measures, the Group will document the
same setting out the reasons within an overall comply of explain framework;
The Group will set out a roadmap indicating the timelines for implementation of the reform area
concerned together with the regulatory/agency which will implement the reforms and the
framework for monitoring;
The Group will also recommend whether publishing of a formal approach to implementation of
reform measures, as being done by several jurisdictions for some of the reform areas, would be
appropriate in the Indian context; and
Setting up a data repository for the shadow banking sector.

The Committee on Shadow Banking is in initial stages in an ongoing assessment process being
monitored by Inter Regulatory Technical Group comprising of RBI, Securities and Exchange Board
of India, Pension Fund Regulatory and Development Authority, Forward Markets Commission and
Insurance Regulatory and Development Authority. The Committee will not submit its report to the
Government.
7. Amendments to the Electricity Act, 2003
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the various
amendments to the Electricity Act, 2003 as per the proposed Electricity (Amendment) Bill, 2014.
The amendments will usher in much needed further reforms in the power sector. The amendments
will also promote competition, efficiency in operations and improvement in quality of supply of
electricity in the country resulting in capacity addition and ultimate benefit to the consumers.
8. Amendments to the Insurance Laws (Amendment) Bill, 2008
The Union Cabinet, chaired by the Prime Minister, approved the officials Amendments to the
Insurance Laws (Amendment) Bill, 2008 and introduction in the Rajya Sabha when the Bill is
taken up for consideration and passing. The Bill is aimed at removing archaic and redundant
provisions in the relevant legislations and to enable the insurance sector to work for the betterment
of the insured with greater efficacy.
9. Establishment of 6 (Six) new Debts Recovery Tribunals (DRTs) at Chandigarh, Bengaluru,
Ernakulam, Dehradun, Siliguri and Hyderabad
Cabinet approved establishment of six new Debt Recovery Tribunals (DRTs) at Chandigarh,
Bengaluru, Ernakulam, Dehradun, Siliguri and Hyderabad (4 DRTs at Bangaluru, Chandigarh,
Ernakulam & Hyderabad are additional DRTs).
The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act) was
enacted to provide for the establishment of Debt Recovery Tribunals (DRTs) and Debt Recovery
Appellate Tribunals (DRATs) for expeditious adjudication and recovery of debts due to banks and
financial institutions. After the enactment of the SARFAESI Act 2002, DRTs have the Appellate
jurisdiction under the said Act. The Finance Minister, in his Budget Speech on 10.7.2014
announced that six new DRTs would be set up.
10. India Signs Credit Agreement with International Fund for Agricultural Development
(IFAD)
A financing agreement for a credit amount of US$ 50 million from International Fund for
Agricultural Development (IFAD) was signed for the Meghalaya Livelihood and Access to Markets
Projects (Megha-LAMP).
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The Objective of the project is to adapt expanded and sustainable livelihood opportunities to the
hill environment and to the effects of climate change. The project size is US $ 169.7 million, of
which US $ 50.00 million will come in the form of IFAD credit. The remaining amount will be
mobilized through State Government contributions, commercial Banks, complementary
government programmes and participating households. It is expected to benefit more than 147,000
households, comprising of about 827,000 people.
The Megha-LAMP Project will close in December 2022.
11. India Signs First Bilateral Advance Pricing Agreement (APA) With A Japanese Company
Central Board of Direct Taxes (CBDT) signed a bilateral Advance Pricing Agreement (APA) with a
Japanese Company. This is Indias first bilateral APA. The APA is for a period of five years.
The APA has been finalized in a period of about one and a half years, which is shorter than time
normally taken in finalizing APAs internationally. The APA scheme has been introduced to bring
about certainty and uniformity in transfer pricing matters of multi-national companies and
reducing litigation. APAs will improve investment climate in the country. In the context of growing
economic ties between Japan and India, especially after the Prime Minister Shri Narendra Modis
visit to Japan, this APA is expected to generate positive sentiments among Japanese investors in
India.
12. Government of India Signs Agreements with Germany worth Euro 625 Million for
Financial Cooperation to Support Green Energy Corridors (GEC) Project under Indo
German Bilateral Development Cooperation
The Government of India signed Note of Exchange with Government of Germany for financial
cooperation to support Green Energy Corridors (GEC) project under Indo German bilateral
Development Cooperation. GEC project in power sector aims to create transmission infrastructure
in the renewable energy potential rich states and facilitate evacuation of renewable energy (RE) into
the national grid. Government of Germany in the year
2012 had indicated its willingness to support the GEC
Agreements were also signed by the
project with funds amounting to Euro 1 billion over a
Department of Economic Affairs
period of five years under the ambit of Indo-German
with KfW for a grant amount of
bilateral development cooperation.
Euro 2 million to provide technical
assistance to Himachal Pradesh
Government of Germany has committed funds
Forest Ecosystems Climate Proofing
amounting to Euro 500 million for GEC project this year.
project and also for a grant amount
With this, the total commitment from Government of
of Euro 2 million for extending
Germany for GEC project stands at Euro 750 million. In
technical assistance for the ongoing
year 2013, Government of Germany had committed Euro
Tamil Nadu Urban Infrastructure
250 million. On the occasion, three separate loan
Development Fund project.
agreements were also signed for GEC project amounting
to Euro 625 million India signed loan agreements with
German Governments Development Bank KfW, for loan of Euro 76 million to the Government of
Tamil Nadu and a loan of Euro 49 million to Government of Rajasthan for intra-state transmission
schemes. Power Grid Corporation of India Limited signed loan agreement for Euro 500 million with
KfW for inter-state transmission schemes.
13.Government Signs Loan Agreement with Asian Development Bank (ADB) for $75 Million
and $1.8 Million Grant for Karnataka Integrated Urban Water Management Investment
Program
Government of India signed an agreement with Asian Development Bank (ADB) here today for a
$75 million loan and a $1.8 million grant that will help improve water resource management in
three (3) towns of Karnataka in the Upper Tungabhadra sub-basin. This loan from the ADBs
Ordinary Capital Resources has a 25-year term including a grace period of five years.
This first tranche of the loan under the Karnataka Integrated Urban Water Management
Investment Program will help expand and upgrade urban water supply and sanitation
infrastructure; improve water resource planning, monitoring and service delivery; and strengthen
operational and administrative capacity in the three towns of Byadagi, Davanagere and Harihar.
The investment program aims to improve water resource management in urban areas in a holistic
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and sustainable manner. Investment support will be provided to modernize and expand urban
water supply and sanitation (UWSS) while strengthening relevant institutions to enhance
efficiency, productivity and sustainability in water use. Innovative instruments, such as publicprivate partnership (PPP) or reform oriented incentive funds will also be pursued. The Program will
seek to assist more fragile environments increasingly affected by water resource degradation, often
located in North Karnataka. The Program will also promote climate-resilient development, capacitydevelopment
for
conducive
adaptation.
14 .Government Signs Loan Agreement with Asian Development Bank (ADB) for $60 Million
for
Jammu
and
Kashmir
Urban
Sector
Development
Investment
Program
The Government of India signed an agreement with Asian Development Bank (ADB) here today for
a $60 million loan that will help improve urban services, including water supply and urban
transport infrastructure, in two key cities of Jammu and Kashmir. This loan from the ADBs
Ordinary Capital Resources has a 25-year term including a grace period of five years.
The third tranche loan under the Jammu and Kashmir Urban Sector Development Investment
Program will supplement the urban infrastructure up-gradation program initiated under Project 1
and Project 2. About half-a-million people in Srinagar and Jammu will benefit from improved
access to water supply, functional drainage systems, and better transport infrastructure.
3. MINISTRY OF HOME AFFAIRS
1. Treaty on transfer of sentenced persons between India and Qatar
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the signing of the
treaty on transfer of sentenced persons between India and Qatar.
The signing of the Treaty shall facilitate Indian prisoners imprisoned in Qatar or vice-versa to be
near their families, for serving the remaining part of their sentence and shall facilitate their social
rehabilitation.
Prior to 2004, there was no domestic legislation under which foreign prisoners could be transferred
to the country of their origin to serve the remaining part of their sentence, nor was there a
provision for the transfer of prisoners of Indian origin convicted by a foreign court to serve their
sentence in India.
Hence the Repatriation of Prisoners Act, 2003 was enacted for serving this purpose. For achieving
the objectives of the Act, a Treaty/Agreement is required to be signed with countries having mutual
interest with India and later to be notified in the Official Gazette.
The Government of India has so far signed Agreements with the Governments of United Kingdom,
Mauritius, Bulgaria, Brazil, Cambodia, Egypt, France, Bangladesh, South Korea, Saudi Arabia,
Iran., Kuwait, Sri Lanka, UAE, Maldives, Thailand, Turkey, Italy, Bosnia & Herzegovina, Israel,
Russia, Vietnam and Australia. Negotiations have also been concluded with the Governments of
Canada, Hong Kong, Nigeria and Spain.
2. National Disaster Management Command Centre
India and Russia have signed a bilateral agreement by which either country can seek assistance
from the other by way of exchanging expert teams, equipments, supplies and support materials in
case of an emergency.
With a view to take suitable steps in this direction, the phase-I of the project titled National
Database for Emergency Management has been made operational. It was further decided to start a
pilot project which will be operative in 10 districts spread over 4 States.
The pilot project has similarities with the Russian Emergency and Disaster Management Command
Centre such as GIS based software application; two way video, audio and data communication
capabilities and can receive inputs from technical forecasting agencies like India Meteorological
Department. However, it differs from the Russian model in terms of role of the State Government in
Disaster management to suit our Federal Polity requirements without merger of existing
organizations or creation of a new Ministry. A pilot scheme for setting up a National Disaster
Management Command Centre was approved on 25th September, 2014 by the National Disaster
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Management Authority with an outlay of Rs. 19.64 crore to be implemented within a period of 18
months. The Scheme provides GIS based audio, video and data communication for emergency
operation control at National, State and District level. The learning from the pilot project would
help in further expansion of phase-II of National Database for Emergency Management.
3. Centre Extends SoO Pact With NDFB (P) for Further Six Months
The Centre has extended the Suspension of Operations (SoO) Agreement with the National
Democratic Front of Boroland (Progressive), NDFB (P), for six months. This followed tripartite talks
with the representatives of NDFB (P). After discussion, it was mutually agreed to extend the SoO
Agreement for a further period of six months up to June 30, 2015.

4. MHA enhances more financial powers to CAPFs and Intelligence Agencies
The Ministry of Home Affairs has enhanced financial powers in respect of items such as Major and
Minor Works, Special Repairs, Land Acquisition and Hiring of Buildings/Accommodation to the
Directors General of Central Armed Police Forces (CAPFs) and Directors of Intelligence Agencies.
The financial powers have been doubled from Rupees Five Crores to Rs. Ten Crores in respect of
Major Works that are to be executed by CPWD and Public Works Organisations. The limit for Major
Departmental Works undertaken by Organisations having Engineering Wing has been raised from
Rs.60 lakhs to Rs.One Crore and from Rs. 10 Lakhs to Rs.15 Lakhs for Organisations without
Engineering Wing.
Limits for Minor Works (petty works and repairs) for Residential Buildings has been hiked from
Rs.15 Lakhs to Rs.25 Lakhs and for non-Residential Buildings from Rs.30 Lakhs to Rs.50 lakhs.
Financial powers for Land Acquisition has also been raised from Rs.20 Lakhs to Rs.34 Lakhs in
each case with a provision that the proposed Land Acquisition should be through State
Government only.
Financial Powers have also been substantially raised in respect of Special Repairs and Hiring of
Buildings/Accommodation.
The CAPFs are Assam Rifles, Border Security Force, Central Industrial Security Force, Central
Reserve Police Force, Indo-Tibetan Border Police, National Security Guard and Sashastra Seema
Bal, besides the orders are applicable to the Intelligence Bureau and the National Intelligence
Agency.
Modernization and upgradation of the CAPFs is a priority of the Government. Earlier in October,
with a view to streamline and expedite processes in this regard, the Union Home Minister Shri
Rajnath Singh had more than doubled the delegation of financial powers to CAPFs for procurement
of Machinery & Equipment and Arms & Ammunition to Rs. 20 crores.
The Modernization Plan II of CAPFs has a total projected cost of Rs.11,009 crores till March 2017.
5.SMART Police Stations in each State shortly
The Prime Minister of India had introduced the concept of SMART Police (S-Sensitive and Strict; MModern with mobility; A- Alert and Accountable; R- Reliable and Responsive; T- Trained and
Techno-savvy) during the 49th Directors General/ Inspectors General Annual Conference at
Guwahati on Nov. 30, 2014. .Efforts are being made to involve the private sector and their
Corporate Social Responsibility (CSR) programmes to expand the roll out of SMART Police Stations.
The SMART Police Station would become the foundation towards SMART policing. A SMART Police
Station should be citizen friendly and clean. It should also meet the operational and welfare needs
of the police personnel posted there.
Some suggested features of a SMART Police Station are:
Basic amenities for visitors, waiting area, toilets, drinking water, Receptionist whom the visitors
can meet.
Rest room for constables, including separate room for women constables.
Natural lighting and ventilation, solar lighting, energy saving features.
CCTV, Safe & secure Armoury, Record Room, Communication Room for wireless, computers etc.
Automated kiosks for filing of complaints by public (with a back-end system for tracking follow up
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action).
The Police Station is the key functional unit from where the police discharges its tasks of
maintenance of law & order and investigation of cases etc. The Police Station is also the primary
point of interaction between the citizens and the police.
4. MINISTRY OF POWER
1. New Chairperson assumes office at Appellate Tribunal for Electricity
Mrs. Ranjana Prakash Desai, former Judge of Supreme Court has taken over the charge of
Chairperson, Appellate Tribunal for Electricity, New Delhi. Mrs. Ranjana Prakash Desai had
already served Supreme Court as a Judge for about three years prior to this assignment. She was
initially elevated as a judge of High Court of Mumbai.
2. Electricity Amendment Bill, 2014 Introduced in Lok Sabha
The Electricity (Amendment) Bill, 2014 was introduced in the Lok Sabha by the Minister of State
(I/c) for Power, Coal and New& Renewable Energy. The amendments will usher in much needed
further reforms in the power sector. It will also promote competition, efficiency in operations and
improvement in quality of supply of electricity in the country resulting in capacity addition and
ultimate benefit to the consumers.
Salient features of the proposed amendments
The Electricity Act, 2003 was enacted to amalgamate and modernize the earlier Electricity Laws,
namely, the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the Electricity
Regulatory Commissions Act, 1998. The Act was reviewed and amended twice, in the year 2004
and 2007, to give effect to certain changes considered necessary. Based on the experience gained
over the years, it was felt to review the provisions further to bring efficiency and competition in the
distribution sector, strengthening grid security and safety, promotion of renewable energy,
rationalization of tariff and strengthening and performance oversight of Regulatory Commissions
etc. Certain legislative changes were suggested by the Working Group on power for the formulation
of 12th Five Year Plan which were further examined under a Committee constituted under
Chairperson, CEA. Based on the recommendations of the said Committee, the proposed
amendments were uploaded on the website of Ministry of Power in the month of October, 2013.
Thereafter, consultations were held with various stakeholders including those from Central
Ministries, State Governments, Generation, Transmission, Distribution utilities, Regulatory
Commissions, Private Developers, traders, industry associations, consumer groups, power
exchanges and individuals etc., in meetings taken in the Ministry. Based on exhaustive
consultations, certain amendments to the Electricity Act, 2003 have been proposed broadly
covering the following areas:A. Enhancing
Grid
safety and
security
In order to strengthen and enhance Grid safety and security, specific

measures regarding maintenance of spinning reserves along with strong and
effective deterrence in the form of enhanced penalties for violations of the
directions given by the State and Regional Load Despatch Centres etc., have
been envisaged.
B.
Separation of
Carriage & Content
in the Distribution
sector
To achieve the objectives of efficiency and for giving choice to consumers

through competition in different segments of electricity market, concept of
multiple supply licensees is proposed by segregating the carriage from
content in the distribution sector and determination of tariff based on
market principles, while continuing with the carriage (distribution network)
as a regulated activity. To protect the interest of consumers, the tariff for
retail sale of electricity is proposed to be capped through the Regulator and
one of the supply licensees is proposed to be a Government controlled
company. Further, the existing distribution licensees are proposed to
continue till the expiry of their term as specified in their licence.
C.
Promotion
Renewal Energy
In order to accelerate the development of Renewable Energy sources, a

number of measures including the provision for a separate National
of
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Renewable Energy Policy, development of renewable energy industry,

Renewable Generation Obligation on coal and lignite based thermal power
plants, specific exemptions to Renewal Energy sources from open access
surcharge, separate penal provisions for non-compliance of Renewal
Purchase Obligation etc., have been envisaged under the Renewable
Generation Obligation for coal and lignite based thermal power plants.
D. Tariff
Rationalization
To rationalize the tariff structure on sound financial principles for the

viability of the distribution sector and recovery of revenue requirement of
licensees without any gap, the provisions of Tariff Policy are proposed to be
made mandatory for the determination of tariff. Further, the bill envisages
timely filing of tariff petitions by utilities, disposal of the same by the
Appropriate Commission within a specified time period and powers to
Appropriate Commissions for initiating suo-motu proceedings for
determination of tariff in case the Utility/Generating Companies do not file
their petitions in time.
E.
Suitable amendments are also proposed for improving the accountability and
transparency in the working of Appropriate Commissions without affecting
their
functional
autonomy;
bringing
clarity
in
regard
to appointments, functions and powers of the Chief Electrical Inspector/
Electrical Inspectors and levying of fees for electrical inspections; exemption
to developer of SEZs, Railways and Metro Rail for obtaining distribution
licence; collection and realization of any dues along with the electricity dues,
etc.
Miscellaneous
3. Government sets up an Independent Government Company-POSOCO for Reforms in Power

Sector
The government has decided to set up of Power System Operation Corporation (POSOCO) as an
Independent Government Company. In the process, the institutional framework for an
independent, secure and reliable power system operation entity at the national level has been put
in place as mandated under the Electricity Act 2003. POSOCO operates the National Load
Despatch Centre (NLDC) and Regional Load Despatch Centres (RLDCs) which are also responsible
for operating the vibrant electricity market working in the country. POSOCO is also designated as
the nodal agency for major reforms in the power sector such as the Renewable Energy Certificate
(REC) Mechanism, transmission pricing, short term open access in transmission, Deviation
Settlement Mechanism, Power System Development Fund (PSDF), etc.
The need for independent Government Company in light of the introduction of competition as per
Electricity Act 2003 which resulted in tremendous growth in the Indian power sector by the private
sector participation in generation, transmission, distribution and trading. With transmission
coming under competition and multiple transmission licensees operating, need was felt to ensure
the independence and neutrality of the system operation function. The Enquiry Committee set up
following the July, 2012 grid disturbances, has recommended inter alia putting in place zero
tolerance systems including setting up of an Independent System Operator.
It has been decided to establish POSOCO as a wholly owned Government of India Company under
Ministry of Power thereby giving a big thrust to bringing in further reforms in the power sector at
the Central level. The decision also creates an example for implementing similar reforms at the
State level to ensure independent system operation by the State Load Despatch Centers (SLDCs).
The strengthening of the institutional mechanism of System Operation would help bring in
innovation in the power sector as the RLDCs/NLDC operated by POSOCO by achieving economy
and efficiency in the power system operation and facilitating implementation of various
Government of India policies for Power Sector as well as provide feedback to the policymakers,
regulators and planners.
BYJUS CLASSES
4. Foundation Stones of Two Power Sub Stations

Union Minister for Finance, Corporate Affairs & Information and Broadcasting Arun Jaitley laid the
foundation stone of two power sub-stations and dedicated one sub-power station to the people in
Delhi. The 400 kV sub-station of POWERGRID at Rajghat, 220k V substation at Preet Vihar of
Delhi Transco Limited and Harsh Vihar substation of Delhi Transco Limited will significantly
improve power availability in Delhi.
Various projects are being implemented by the Government for strengthening the power system in
Delhi. After implementation of these schemes Delhi residents will no longer need to depend on their
diesel generators and invertors for power supply. He announced that Five Lac LED lights will be
installed in Delhi with an approximate cost of Rs.500 Crores. These schemes will also help Delhi in
reducing the overall power consumption. He also added that in the coming time Delhi consumers
will be able to select their power service provider as per their suitability in terms of services. These
substations will be built with state-of the-art technology and will cater to the power demand
especially to Central, East and North Delhi.
5.Deendayal Upadhyaya Gram Jyoti Yojana:Deendayal Upadhyaya Gram Jyoti Yojana
(DDUGJY), announced in the budget 2014-15 envisages feeder separation, strengthening of subtransmission & distribution network including metering at all levels for the rural areas. The major
components of the scheme are : feeder separation ,strengthening of sub transmission and
distribution network, metering at all levels, including input points, feeders and distribution
transformers, micro grid and off grid distribution network and rural electrification to complete
already sanctioned projects. This scheme will help in round the clock power to rural households
and adequate power to agricultural consumers.
6.Integrated Power Development Scheme :The integrated power development scheme envisages
strengthening of sub-transmission and distribution network including metering at all levels in the
urban areas. The major components of the project include strengthening of sub-transmission and
distribution network, metering, IT application-ERP and customer care services, provisioning of
solar panels and completion of the ongoing works of the Restructured Accelerated Power
Development and Reforms programme (R-APDRP).
7.North Eastern Region Power System Improvement Project:The North Eastern Region Power
System Improvement Project (NERPSlP) is for the six States of Assam, Manipur, Meghalaya,
Mizoram, Tripura and Nagaland. The scheme is to be implemented with the assistance of World
Bank loan and the budget of MoP. Implementation of this project will create a reliable State power
grid and improve its connectivity to the upcoming load centres, and thus extend the benefits of the
grid connected power to all the consumers. This project is a major step towards meeting the
national objective of "Power to All" through enhancement in access of consumers to grid connected
power supply through improving its availability and reliability, thereby facilitating inclusive growth.
This shall also increase the per capita power consumption of these States, which is lagging behind
the average national consumption and shall contribute to the economic development of the NorthEastern Region.
Important projects - dedicated to Nation or foundation stone laid by Prime Minister:
240 MW URI-II Power Station of NHPC located in Baramulla district of Jammu and Kashmir. It
is a run of the river scheme on the Jhelum River
44 MW Chutak hydroelectric Project located in Kargil District of Jammu & Kashmir. The project
is a run-off-river scheme on the river Suru, to generate 216 MU.
45 MW Nimoo-Bazgo Hydro electric Project. This project is a Run of the River scheme to harness
the potential of river Indus in Leh district of Ladakh region. The project is designed to generate
239 MUs of energy.
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Laid foundation stone for the first power transmission line from Leh to Kargil and Kargil to
Srinagar. This 375 KM transmission line with four 220/33kV Sub-stations at Drass, Kargil, Leh
and Khalsti will connect Leh/ Kargil area in Ladakh with Northern Region Grid at 220kV level.
Raichur-Sholapur 765 kilovolt (kV) transmission line in Maharashtra. This transmission line has
established the infrastructure for transfer of power from the regional grids of Northern, Eastern,
Western and North-eastern regions to Southern region .
Mouda Super Thermal Power Project Stage-I (1000 MW) situated in Nagpur Distt. of
Maharashtra. The project will have ultimate capacity of 2320 MW on completion of 1320 MW (
2X660MW) Stage-II.
765 kV Ranchi-Dharamjaygarh-Sipat transmission line in Jharkhand and initiated the
commencement of work on 3x660 MW North Karanpura Super Thermal Power Project. This line
is the first 765kV inter-regional link between Eastern Region and Western Region.
The 110 MW unit II of Muzzafarpur Thermal Power station (Stage I ) of Kanti Bijlee Utpadan
Nigam Limited and the first 660 MW unit of NTPC`s Barh Super Thermal Power Station
commenced commercial generation.
5. MINISTRY OF HEALTH AND FAMILY WELFARE
1. National Commission for Human Resources for AYUSH
The Ministry of Health and Family Welfare had conceived a proposal for establishing an
overarching body namely, National Commission for Human Resources for AYUSH (NCHRA)
which was modeled on
lines of the National
There are five Research Councils, namely, Central Council for
Commission for Human
Research in Ayurvedic Sciences (CCRAS), Central Council for
Resources
for
Health
Research in Homoeopathy(CCRH), Central Council for Research in
(NCHRH)
Bill,
2011,
Unani Medicines(CCRUM), Central Council for Research in
proposed
by
the
Siddha(CCRS) and Central Council for Research in Yoga and
Department of Health and
Naturopathy(CCRYN) under Ministry of AYUSH. A total of 81
Family Welfare. Since the
institutes/units are functioning under these Councils.
proposal of the Department
Government provides financial assistance for both plan and nonof Health and Family
plan expenditure, in the form of Grants-in aid to all Research
Welfare to set up NCHRH
institutes/ units including Siddha Central Research Institute
was not agreed to by the
(SCRI) through the respective Research Councils to take up
Parliamentary
Standing
various research projects.
Committee,
therefore,
Ministry of AYUSH is not
intending to set up NCHRA at present.
AYUSH Gram has been envisaged as a component of AYUSH Services in the Centrally Sponsored
Scheme of National AYUSH Mission (NAM) approved and notified on 29.09.2014 only. However, as
of date, no AYUSH Gram has been established under this scheme by the State/UTs.
2. Mission Indradhanush
Shri J P Nadda, Health & Family Welfare Minister launched Mission Indradhanush,. The Mission
Indradhanush, depicting seven colours of the rainbow, aims to cover all those children by 2020
who are either unvaccinated, or are partially vaccinated against seven vaccine preventable diseases
which include diphtheria, whooping cough, tetanus, polio, tuberculosis, measles and hepatitis B.
Enumerating on the Mission, the Health Minister said, We have identified 201 high focus districts
in the country in the first phase which have nearly 50% of all unvaccinated or partially vaccinated
children. These districts will be targeted by intensive efforts to improve the routine immunization
coverage. Of the 201 districts, 82 districts are in just four states of UP, Bihar, Madhya Pradesh
and Rajasthan and nearly 25% of the unvaccinated or partially vaccinated children of India are in
these 82 districts of 4 states.
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Between 2009-2013 immunization coverage has increased from 61% to 65%, indicating only 1%
increase in coverage every year. To accelerate the process of immunization by covering 5% and
more children every year, the Mission Mode has been adopted to achieve target of full coverage by
2020.
6. MINISTRY OF COMMUNICATION & INFORMATION TECHNOLOGY
1. Task Force on Leveraging the Post Offices Network of the Country
A Task force on leveraging the post offices network of the country among others had suggested
setting up of three subsidiaries as a part of a holding company under the Postal Department under
the Ministry of Communication and Information Technology for extending services in the fields of
banking, insurance and e-commerce. The Report of the Task Force headed by former Cabinet
Secretary Shri T.S.R. Subramanian was submitted to the Minister for Communications and
Information Technology Shri Ravi Shankar Prasad in New Delhi.
In all five subsidiary companies will be called Strategic Business Units (SBU). Two other
subsidiaries are for distribution of 3rd party products and services like providing e-services for
general public for bill collections and providing of application forms, documents and certificates on
commercial basis.
Another subsidiary is for .delivery of government services like Aadhaar ration cards, Vikas patras,
etc. on agency basis. It was also proposed that each SBU will have a separate independent board
to operate commercially as a profit centre. Each one of the SBU over the time may go for public
participation through public issue. It was proposed that a new postal law may be enacted to give
statutory basis for these operations. The Task Force was constituted on 21st August this year.
2. India and Japan to Cooperate in the Fields of Cyber Security and Green ICT (Information
and Communication Technology)
India and Japan decided to cooperate in the fields of Cyber security and Green ICT (Information &
Communication Technology). In a statement after India-Japan Joint Working Group Meeting on
ICT, in New Delhi, the two countries announced the decision to work on the following five areas
which are to be implemented as India-Japan joint projects:1.
Green ICT - Green Mobile Base Station project
2.
Cyber Security Cooperation - Japan-India Combat Spam project
3.
Cooperative project for detecting symptoms and quick response to cyber attacks
(PRACTICE)
4.
ICT for Disaster Management (ICT4DM) - ICT Use in disaster-affected areas project
5.
ICT Application for Social and Economic Challenges - National ID Application and
Utilization Platform project
Ministry for Communication and Information Technology (MCIT) in India and Ministry of Internal
Affairs and Communication (MIC, Japan will coordinate the activities for taking these projects
forward by involving industrial partners in both the countries. They will aim towards
implementation of these joint projects by early 2015. The two countries also decided to further
discuss development of standards in the field of ICT, for future cooperation. Further, India had also
offered Japan to manufacture ICT equipment in India by taking advantage of new conducive
environment for manufacturing in India. The next meeting of the joint working group is to be held
in Tokyo next year.
7. MINISTRY OF WATER RESOURCES
1. 120 Special Teams Start Working on Ganga, Yamuna and Ramganga
Special teams set up by the Ministry of Water Resources, River Development and Ganga
Rejuvination have submitted their reports. 120 such teams were constituted to study various
aspects of 118 places along the rivers Ganga,Yamuna and Ramganga.
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These places were located in Uttarakhand,UP,Bihar and West Bengal. These teams were asked to
find out the latest position of sewage treatment plants located at these places and the types of
plantation required along the rivers. The teams were also directed to find out the latest available
techniques to modernize these treatment plants to obtain quicker results. Old and nonfunctional
treatment plants will be replaced by new ones.
2.Ministry of Water Resources takes New Initiatives for Ganga Rejuvination
The Union Minister for Water Resources, River Development and Ganga Rejuvination Sushri Uma
Bharti has finalized a Ganga Rejuvination Programme which will have three groups, seven
objectives and 21points. The committee of senior officials of the Ministry and consortiums of seven
IITs constituted to ensure uninterrupted flow of Ganga will submit its final report by the month
end. The Minister has directed Central Water Commission( CWC) to prepare plans for the
construction of reservoirs along Ganga,Yamuna and its tributaries to ensure sufficient water in
these rivers during non monsoon season.
To ensure cleanness of Ganga and Yamuna , 41 teams of CWC experts visited several places to
assess the impact of open drains falling into these rives and status of Sewage Treatment Plants (
STPs). Three expert teams were constituted to suggest measures for setting up of new STPs and
modernization of existing STPs. These committees have so far examined 18 major suggestions. For
riverfront development and beautification of ghats, DPRs have been prepared for two such ghats at
Delhi and Haridwar. It has also been decided to constitute Ganga Task Force to ensure proper
implementation of Ganga rejuvenation programme. Ministry of Defence will provide manpower for
this.
8. MINISTRY OF RAILWAYS
1. Railways Identify Projects for 100 Per Cent Foreign Direct Investment
The Government of India has permitted 100 percent Foreign Direct Investment (FDI) in
construction, operation and maintenance of:
Suburban corridors through Public Private Partnership (PPP).
High speed train projects.
Dedicated freight lines.
Rolling stock including trains sets and locomotive/coaches manufacturing and maintenance
facilities.
Railway electrification.
Signaling system.
Freight terminal.
Passenger terminal.
Infrastructure in industrial park pertaining to railway line/siding.
Mass Rapid Transport System.
Currently there are no operational projects of Suburban corridor through PPP, High speed train
and Dedicated Freight Corridors. Also, Rolling Stock manufacturing and maintenance facilities,
Railway Electrification, Signaling system, Freight terminals, Passenger terminals, Rail sidings in
industrial parks are not separate profit centers on Indian Railways. In view of this, no revenue
generation figures of the last five years are available.
9. MINISTRY OF WOMEN AND CHILD DEVELOPMENT
Beti Bachao Beti Padhao (BBBP) Scheme
Government of India has introduced the Beti Bachao, Beti Padhao (BBBP) scheme for survival,
protection & education of the girl child. It aims to address the issue of declining Child Sex Ratio
(CSR) through a mass campaign across the country targeted at changing societal mindsets &
creating awareness about the criticality of the issue. The Scheme will have focussed intervention &
multi-sectoral action in 100 districts with low Child Sex Ratio.
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The criteria/norms for selection/identification of 100 districts under the BetiBachaoBetiPadao

programe are as under:i)
87 Districts have been selected from 23 States/UTs having Child Sex Ratio below the
National average of 918.
ii)
8 Districts have been selected from 8 States/UTs having Child Sex Ratio above National
average of 918 but showing declining trend
iii)
5 Districts have been selected from 5 States/UTs having Child Sex Ratio above National
average of 918 and showing improving trend so that other parts of country can learn from them.
It is a joint initiative of Ministry of Women and Child Development, Ministry of Health and Family
Welfare and Ministry of Human Resource Development. The Sectoral interventions under the
programme include the following:
i)
Ministry of WCD: Promote registration of pregnancies in first trimester
in AnganwadiCentres (AWCs); Undertake Training of stakeholders; Community Mobilization &
Sensitization; Involvement of Gender Champions; Reward & recognition of institutions & frontline
workers.
ii)
Ministry of Health & Family Welfare: Monitor implementation of Pre-Conception and
Pre-Natal Diagnostic Techniques (PCP&DT)Act, 1994; Increased institutional deliveries;
Registration of births; Strengthening PNDT Cells; Setting up Monitoring Committees.
iii)
Ministry of Human Resource Development: Universal enrolment of girls; Decreased dropout rate; Girl Child friendly standards in schools; Strict implementation of Right to Education
(RTE); Construction of Functional Toilets for girls.
As the Beti Bachao, Beti Padhao (BBBP) scheme has been approved recently, no fund allocation
has been made so far to the States.
10. MINISTRY OF CIVIL AVIATION
1. Air India Signs MoU with NBCC for Monetization of Land Assets
Air India signed an MoU with National Buildings Construction Corporation Ltd. (NBCC) for
monetization of surplus land assets of the national carrier. It will be a non-binding, non-exclusive
agreement and each land asset will be individually evaluated for a particular mode of monetization
process. This MoU is intended to blend together NBCCs huge expertise in successful completion of
several prestigious projects and Air Indias vast surplus land assets.
The MoU has provided for three models of development of properties.
In Model 1, the land value will be the Air India interest in the partnership. Money on development
of the project shall be the interest of the NBCC. The sale proceeds will be shared by NBCC and Air
India in the ratio of partnership interest.
In Model 2, NBCC shall pay Air India a portion of the value of the land as upfront money. NBCC
interest in the project would be the project cost and upfront money paid to Air India. The sale
proceeds are shared by NBCC and Air India in the ratio of partnership interest.
In Model 3, NBCC shall construct the project on behalf of Air India and development cost will be
invested by NBCC and will charge fixed internal rate of return (IRR) on the project on its
investment on mutually acceptable terms. This will help Air India in realizing full potential of its
surplus land assets in partnership with NBCC.
2. Introduction of comprehensive Anti-hijacking Bill 2014
The Union Cabinet chaired by the Prime Minister gave its approval for introduction of the
comprehensive Anti-Hijacking Bill 2014. The current law, the Anti-Hijacking Act, 1982, was last
amended in 1994.
After the hijacking of Indian Airlines Flight IC-814 in December, 1999, it was felt necessary for
providing the award of death penalty to perpetrators of the act of hijacking. The incident of 9/11,
where aircrafts were used as weapons, also created the need to further amend the existing Act.
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BYJUS CLASSES
The Anti-Hijacking (Amendment) Bill, 2010 was introduced in the Rajya Sabha in August, 2010.
During the process of amendment, a global diplomatic Conference was held at Beijing in AugustSeptember, 2010. India is a signatory to the Beijing Protocol signed at the Conference. This
Protocol brought out new principal offences combined with ancillary offences, enlarged the scope of
hijacking, expanded jurisdiction and strengthened extradition and mutual assistance regimes. The
Bill provides death punishment for the offence of the highjacking, where such offence results in the
death of a hostage or of a security personnel; or with imprisonment for life and the moveable and
immoveable property of such persons shall also be liable to be confiscated.
Keeping in view these facts, the Cabinet has given approval for:i. Ratification of the Beijing Protocol, 2010;
ii. Repealing of the Anti-Hijacking Act, 1982 as amended in 1994;
iii. Withdrawal of the Anti-Hijacking Amendment Bill, 2010 and
iv. Introduction of a new Anti-Hijacking Bill, 2014.
11. MINISTRY OF HUMAN RESOURCE DEVELOPMENT
1. Saksham Scholarship Scheme
The Ministry of HRD is implementing Saksham Scholarship Scheme through All India Council for
Technical Education (AICTE) to provide encouragement and support to 1000 differently abled
students to persue technical education in a year.
The amount of scholarship is tuition fee of Rs.30000/- or at actual, whichever is less and Rs.
2000/- per month for l0 months as incidentals. This scholarship is for those differently abled
students whose family income is less than Rs Six lakhs per annum. The candidates will be selected
on merit at the qualifying examination to pursue technical education from amongst such
candidates.
The other criteria is that the candidates should have been admitted to first year of the Degree or
Diploma programme in any of the AICTE approved institute during the academic year 2014-15
through centralized admission process of the State/Central Government.
The Saksham Scholarship Scheme has been launched on 11th November 2014, and till now 84
differently abled students have applied for scholarship under the scheme till date.
2. Pragati Scholarship for Girls
To provide encouragement and support to Girl Child to pursue technical education Pragati
Scholarship has been launched by the Government from the year 2014-15. The salient features of
the Pragati Scholarship are as under:
(i) Number of scholarship per annum: 4000
(ii) One Girl per family whose family income is less than Rs.6 Lakhs per annum
(iii) The candidates will be selected on merit at the qualifying examination
(iv) The candidates should have been admitted to 1st year of the Degree or diploma programme in
any of the AICTE approved institute during the academic year 2014-15 through centralized
admission process of the State /Central Government.
(v) Amount of scholarship: Tuition Fee of Rs. 30000/- or at actual, whichever is less and Rs.
2000/- per month for 10 months as incidentals each year.
At present, the Government does not propose to revise the eligibility criteria and other conditions of
the Pragati Scholarship.
3. Higher Education for Person with Special Needs (HEPSN)
The University Grant Commission (UGC) has implemented a scheme called Higher education for
Persons with Special needs (HEPSN) which is basically meant for creating an environment at the
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higher education institutions to enrich higher education learning experiences for differently-abled
persons. Creating awareness about the capabilities of differently-abled persons, constructions
aimed at improving accessibility, purchase of equipments to enrich learning etc. are the broad
categories of assistance under the scheme.
12. MINISTRY OF CORPORATE AFFAIRS
1. Companies (Amendment) Bill, 2014
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the introduction
of the Companies (Amendment) Bill, 2014 in Parliament to make certain amendments in the
Companies Act, 2013.
The Companies Act, 2013 (Act) was notified on 29.8.2013. Out of 470 sections in the Act, 283
sections and 22 sets of Rules corresponding to such sections have so far been brought into force.
In order to address some issues raised by stakeholders such as Chartered Accountants and
professionals, following amendments in the Act have been proposed:
1. Omitting requirement for minimum paid up share capital, and consequential changes. (For ease
of doing business)
2. Making common seal optional, and consequential changes for authorization for execution of
documents. (For ease of doing business)
3. Prescribing specific punishment for deposits accepted under the new Act. This was left out in the
Act inadvertently. (To remove an omission)
4. Prohibiting public inspection of Board resolutions filed in the Registry. (To meet corporate
demand)
5. Including provision for writing off past losses/depreciation before declaring dividend for the year.
This was missed in the Act but included in the Rules.
6. Rectifying the requirement of transferring equity shares for which unclaimed/unpaid dividend
has been transferred to the IEPF even though subsequent dividend(s) has been claimed. (To meet
corporate demand).
7. Enabling provisions to prescribe thresholds beyond which fraud shall be reported to the Central
Government (below the threshold, it will be reported to the Audit Committee). Disclosures for the
latter category also to be made in the Boards Report. (Demand of auditors)
8. Exemption u/s 185 (Loans to Directors) provided for loans to wholly owned subsidiaries and
guarantees/securities on loans taken from banks by subsidiaries. (This was provided under the
Rules but being included in the Act as a matter of abundant caution).
9. Empowering Audit Committee to give omnibus approvals for related party transactions on
annual basis. (Align with SEBI policy and increase ease of doing business)
10. Replacing special resolution with ordinary resolution for approval of related party
transactions by non-related shareholders. (Meet problems faced by large stakeholders who are
related parties)
11. Exempt related party transactions between holding companies and wholly owned subsidiaries
from the requirement of approval of non-related shareholders. (corporate demand)
12. Bail restrictions to apply only for offence relating to fraud u/s 447. (Though earlier provision is
mitigated, concession is made to Law Ministry & ED)
13. Winding Up cases to be heard by 2-member Bench instead of a 3-member Bench. (Removal of
an inadvertent error)
14. Special Courts to try only offences carrying imprisonment of two years or more. (To let
magistrate try minor violations).
13. VICE PRESIDENTS SECRETARIAT
1. Vice President Confers First Justice Nagendra Singh International Peace Award On Justice
Dalveer Bhandari
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The Vice President of India Shri M. Hamid Ansari conferred the First Justice Nagendra Singh
International Peace Award instituted by the International Goodwill Society of India on Justice
Dalveer Bhandari, Member of the International Court of Justice. Justice Bhandaris achievements
in the field of law and justice are well known to this gathering. His work, as part of the higher
judiciary in our country for over two decades, speaks for itself. However, few of our judges have
had the opportunity to make their mark in the International arena. Justice Bhandari is amongst
the selected few. His presence on the ICJ is a matter of pride for all of us.
14. MINISTRY OF AGRICULTURE
1. Extension of financial assistance for setting up food processing units in North Eastern
States during XII Plan
The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Shri Narendra
Modi, has approved the inclusion of all North Eastern States for setting up food processing units
within the Sub scheme of the Horticulture Mission for North East & Himalayan States (HMNEH) of
the Integrated Mission for Development of Horticulture (MIDH).
North Eastern States, which are horticulturally rich, will be able to take up projects on food
processing industries, thus enabling better shelf life and value addition of produce. The programme
for setting up food processing units will cover all States in the North East and the Himalayan
Region of the country.
The total expenditure of Rs. 16,840 crore has been envisaged for implementing MIDH during the
XII Plan. This includes Rs. 15,794 crore as Government of India share out of which Rs. 3000 crore
is for the HMNEH sub scheme. Expenditure on setting up food processing units in the North
Eastern States will be met within this provision.
Background:
MIDH was launched during 2014-15 by subsuming six ongoing schemes of the Department of
Agriculture & Cooperation on horticulture development viz. three Centrally Sponsored Schemes of
the National Horticulture Mission (NHM), Horticulture Mission for North East & Himalayan States
(HMNEH), National Bamboo Mission (NBM), and three Central Sector Schemes viz. National
Horticulture Board (NHB), Coconut Development Board (CDB) and Central Institute for
Horticulture CCIH) Nagaland. The interventions under MIDH include production and productivity
improvement programmes along with infrastructure development for post harvest management,
food processing and markets.
2. Setting up of National Centres for Developing New Breeds of Desi Cows
Government is implementing schemes having component for development and conservation of
indigenous breeds namely National Programme for Bovine Breeding and Dairy Development,
National Dairy Plan-I, Central Cattle Breeding Farms, Central Herd Registration Scheme and
Central Frozen Semen production and Training Institute.
With a view to conserve and develop indigenous bovine breeds the Government has provided a
further focus on indigenous bovine breeds by way of a new initiative Rashtriya Gokul Mission,
under the National Programme for Bovine Breeding and Dairy Development. Scheme National
Kamdhenu Breeding Centre (NKBC) has been initiated for establishment of two NKBC as Centres of
Excellence to develop and conserve Indigenous Breeds in a holistic and scientific manner.
15. MINISTRY OF NEW AND RENEWABLE ENERGY
1. Implementation of scheme for development of Solar Parks and Ultra Mega Solar Power
Projects
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the scheme for
setting up 25 solar parks each with a capacity of 500 MW and above and Ultra Mega Solar Power
Projects in various parts of the country where large chunks of land can be spared for this purpose.
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These parks will be able to accommodate over 20,000 MW of solar power projects. The Solar Parks/
Ultra Mega Solar Power Projects will be set up during five years that is from 2014-15 to 2018-19
and will require Central Government financial support of Rs.4050 crore. Smaller parks in
Himalayan and other hilly States where contiguous land may be difficult to acquire in view of the
difficult terrain, will also be considered.
The solar parks will be developed in collaboration with State Governments and their agencies. The
choice of implementing agency for developing and maintaining the park is left to the State
Government. The States, applying under the scheme, will have to designate an agency for the
development of the solar park. The State Government will first nominate the implementing agency
for the solar park and also identify the land for the proposed solar park. It will then send a
proposal to the Ministry of New and Renewable Energy (MNRE) for approval along with (or later) the
name of the implementing agency. The implementing agency may be sanctioned a grant of upto
Rs.25 Lakh for preparing a Detailed Project Report (DPR) of the Solar Park, conducting surveys,
etc. The DPR must be prepared in 60 days. Thereafter, application may be made by the
implementing agency to SECI for the grant of up to Rs. 20 lakhs/MW or 30 percent of the project
cost including Grid-connectivity cost, whichever is lower. The approved grant will be released by
Solar Energy Corporation of India (SECI) as per milestones prescribed in the scheme.
All the States and Union Territories are eligible for benefitting under the scheme. Solar parks will
enable development of solar power in remote areas where land is inexpensive. As the transmission
system will be developed for the entire park, developers will not have to set up their own
transmission lines. This will not only save money but will also avoid damaging the landscape of the
area as only limited transmission lines would be laid.
Developers would be able to set up projects very fast as they will not have to get statutory and
other clearances. India will emerge as a major solar power producing country as nowhere in the
world are solar parks being developed on such a large scale.
Background
The Finance Minister, while presenting Budget for the year 2014-15, had amongst other
things announced that the new and renewable energy deserves a very high priority and proposed to
take up Ultra Mega Solar Power Projects in Rajasthan, Gujarat, Tamil Nadu, and Laddakh in
Jammu & Kashmir for which he had set aside a sum of Rs. 500 crore in the Budget.
The scheme for development of Solar Parks and Ultra Mega Soiar Power Projects has been
conceived on the lines of the "Charanka Solar Park" in Gujarat which is a first-of-its-kind large
scale Solar Park in India with contiguous developed land and transmission connectivity.
2. Implementation of scheme for setting up 1000 MW of Grid Connected Solar PV Power
projects by CPSUs and GoI organisations under various Central / State Schemes / self-use /
3rd party sale / merchant sale with Viability Gap Funding under batch V of Phase-II of
JNNSM
The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, has approved
the scheme for setting up of 1000 MW of Grid-Connected Solar PV Power Projects with VGF
(Viability Gap Fund) support of Rs.1000 crore, by CPSUs under various Central/State Schemes, in
three years period from 2015-16 to 2017-18. The Scheme will have a mandatory condition that all
PV cells and modules used in solar plants set up under this Scheme, will be made in India.
All States and Union Territories are eligible for benefitting under the scheme. Solar parks will
enable development of solar power in remote areas where land is inexpensive. As a transmission
system will be developed for the entire Park, developers will not have to set up their own
transmission lines. This will not only save money but will also avoid damaging the landscape of the
area as only limited transmission lines would be laid.
Further developers would be able to set up projects quickly as they will not have to get statutory
and other clearances. India will emerge as a major solar power producing country as nowhere in
the world are solar parks are being developed on such a large scale. The CPSUs and Government of
India organisations will participate in various Central/State Government tenders, from time to time
for sale of solar power to the State.
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The State Government will first nominate the implementing agency for the solar park and also
identify the land for the proposed solar park. It will then send a proposal to the Ministry of New
and Renewable Energy (MNRE) for approval along with (or later) the name of the implementing
agency. The implementing agency may be sanctioned a grant of upto Rs.25 Lakh for preparing a
Detailed Project Report (DPR) of the Solar Park, conducting surveys, etc. The DPR must be
prepared in 60 days. Thereafter, application may be made by the implementing agency to Solar
Energy Corporation of India (SECI) for the grant of up to Rs. 20 lakhs/MW or 30 percent of the
project cost including Grid-connectivity cost, whichever is lower. The approved grant will be
released by SECI as per milestones prescribed in the scheme.
Background
The CPSUs and Government of India organisations like NTPC, NHPC, CIL, IREDA, Indian Railways,
etc. are coming forward to set up solar power projects. The scheme has a provision of VGF support
of Rs.1000 crore for setting up of Grid-connected solar PV power projects of 1000 MW aggregate
capacity to be developed by CPSUs under various Central/State Schemes by using cells and
modules made in India. Requisite funds for provision of the VGF support will be made available to
MNRE from the National Clean Energy Fund operated by Ministry of Finance.
16. CABINET
1. Establishment of Credit Guarantee Funds for Factoring
The Union Cabinet chaired by the Prime Minister, gave its approval to establish a Credit Guarantee
Fund for Factoring for MSME units. The corpus of the Fund is Rs.500 crore. Assuming a leverage
of 5 times of the corpus, gross factoring transactions would cover Rs.20,000 crore per annum at
the end of fifth year. The corpus is estimated to be Rs.492 crore at the end of fifth year. In third
year of operations, a mid-term review of the Fund may be undertaken and propose modifications if
any.
The goal is to promote "factoring without recourse". The mechanism would be:
i. Governing structure - DoFS will be "the Settlor" and shall establish a Fund for guaranteeing
factored debts. The Fund shall be under "National Credit Guarantee Trustee Company (NCGTC). It
will have a Management Committee consisting of Secretary, DFS as the ex-officio Chairman. The
convenor of the Management Committee will be nominated by the Settlor. The Management
Committee shall be responsible for all policy aspects of the Fund.
ii. Coverage - Credit guarantee cover for a maximum of 50 percent of factored debt will be provided
under the Fund. To start with, only transactions covered under the Factoring Regulation Act, 2011
are to be included.
iii. Guarantee Fee - The guarantee fee chargeable from the MLIs shall not exceed 0.75 percent per
quarter of the guaranteed factored debts for the amount of guarantee cover.
iv. Filing of claims by factors - Claims shall be filed by MLIs with the proposed Fund, as per
guidelines prescribed by the Management Committee.
v. Interest rate - The actual interest rate to be charged from the MSMEs will be left to Factors.
vi. Modifications to the parameters under the scheme - The key elements of the structure have
been proposed based on very preliminary data in the sector. These may require to be revisited and
will be done with the approval of FM.
Factoring is a financing arrangement for suppliers by making prepayments against invoices. This
provides liquidity to MSMEs and facilitates collection of receivables. India`s factoring volume is
below Rs.20,000 crore. The Factoring Regulation Act, 2012 provides the legal framework for
factoring. RBI has issued guidelines. However, there is no insurance for factoring.
2.Setting up over 300 MW of Grid-Connected Solar PV Power Projects by Defence
Establishments under Ministry of Defence and Para Military Forces with viability gap
funding under Phase-II/III of JNNSM
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The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, gave its approval for the
following
i. Setting up over 300 MW of Grid-Connected and Off-Grid Solar PV Power Projects by Defence
Establishments under Ministry of Defence and Para Military Force under Ministry of Home Affairs
(MHA) with Viability Gap Fund (VGF) under the Jawaharlal Nehru National Solar Mission (JNNSM)
in five years that is from 2014 to 2019;
ii. Stipulation of mandatory condition that all PV cells and modules used in the solar plants set up
under this Scheme will be made in India;
iii. Provision of an amount of Rs.750 crore for Ministry of New and Renewable Energy (MNRE) from
the National Clean Energy Fund (NCEF) for the purpose as recommended by the IMG; and
iv. Permission for right to use Defence land by the developers chosen by Defence Establishments
by way of lease and otherwise or for self- use of the same by Defence Establishments themselves,
for the purpose of setting up of Solar Power Projects and sale of excess power to distribution
companies.
The Defence organisations/establishments will be free to own the power projects that is get an EPC
contractor to build the project for them or get a developer who makes the investment and supplies
power at a fixed tariff of Rs. 5.50 per unit.
Installation of solar power plants in Defence sector by utilising available land/rooftop will help in
achieving energy security and promote ecologically sustainable growth. The use of domestically
manufactured equipment shall boost indigenous production of solar cells and modules. Defence
organisation will be able to get clean power at reasonable price for 25 years.
3. Amendment for the seats in the Legislative Council for the successor State of Andhra
Pradesh in Andhra Pradesh Reorganisation Act, 2014
The Union Cabinet chaired by the Prime Minister, Narendra Modi, gave its approval for amending
section 23(1) and section 23(2)(i)(a) of the Andhra Pradesh Reorganisation Act, 2014 to rectify the
anomaly in allocating the number of seats in Andhra Pradesh State Legislative Council and to
enhance the total number of seats to 58 as per the provisions of the Constitution.
Since the existing strength of Andhra Pradesh Legislative Assembly is 175 and 1/3rd of its strength
is constitutionally permissible, it is hence proposed to increase the strength to 58 MLCs from
current strength of 50 MLCs.
3.Insurance Laws (Amendment) Ordinance, 2014 to Make Amendments to the Insurance Act,
1938, the General Insurance Business (Nationalization) Act, 1972 and the Insurance
Regulatory and Development Authority Act, 1999
The Union Cabinet had approved the promulgation of the Insurance Laws (Amendment) Ordinance
2014 to amend the Insurance Act, 1938, the General Insurance Business (Nationalisation) Act,
1972 and the Insurance Regulatory and Development Authority Act, 1999.
The proposed step is also for furtherance of the broad objective of deepening the reform process in
the economy in general and the Insurance sector in particular. This is of paramount importance to
create an investor friendly environment in the country to achieve the various goals related to
enhanced investment, economic growth and job creation in the economy.
Some of these key aspects incorporated in the proposed Ordinance are as follows:
(a) The Ordinance is aimed at amending the Insurance Act, 1938, the General Insurance Business
(Nationalization) Act, 1972 and the Insurance Regulatory and Development Authority Act, 1999 to
remove archaic and redundant provisions in the Insurance Laws, empower IRDA to enable more
effective regulation and enhance the foreign equity investment cap in an Indian Insurance
Company from 26 to 49% with the safeguard of Indian ownership and control.
(b) Insurance penetration in India is very low compared to the global average. The sector is in need
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of capital to expand and ensure better access to insurance services, especially in rural areas and
for economically weaker sections. Enhancement of the foreign equity cap from 26% to 49% with the
safeguard of Indian Ownership and Control is a critical aspect of the Ordinance, which will
potentially enhance capital availability.
(c) Towards these ends, the content of the Ordinance is aimed also at allowing insurance
companies to raise capital through new and innovative instruments, which would help capital
intensive insurance industry to garner resources for business growth;
(d) The Ordinance will also enable empowering IRDA to regulate key aspects of Insurance Company
operations in areas like solvency, investments, expenses and commissions, which is in keeping
with global best practices of regulation. The absence of such empowerment for IRDA potentially
undermines faith in our regulatory framework and discourages investment in the sector.
(e) The Ordinance will also substantially enhance penalty provisions to ensure compliance with
Insurance Laws by companies, which is essential to uphold the consumer interest.
17. MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
1. Amendments to the Lokpal and Lokayuktas Act, 2013 (1 of 2014) and the Delhi Special
Police Establishment Act, 1946 (25 of 1946) and for introduction of a Bill in Parliament
The Union Cabinet chaired by the Prime Minister gave its approval for amending the Lokpal and
Lokayuktas Act, 2013 (1 of 2014) and the Delhi Special Police Establishment Act, 1946 (25 of
1946) and for introduction of a Bill in Parliament during the winter session of Parliament, on the
lines of the Lokpal and Lokayuktas and other related law (Amendment) Bill, 2014 with such
modifications or changes of drafting and consequential nature, if any, as may be considered
necessary.
The proposed amendments will address some crucial deficiencies noticed in both the Acts as
under:
a) as regards the composition of the Selection Committee for selection of the Chairperson and
Members of Lokpal, by providing, inter alia, that when there is no Leader of Opposition In the
House of the People, recognized as such, the expression "Leader of Opposition" shall include the
"Leader of the Largest Party in Opposition of the Government" in the Lok Sabha;
b) for providing for qualifications for appointment of Director of Prosecution in the CBI and for his
functional independence.
The proposed amendments will also address other deficiencies in the Lokpal and Lokayuktas Act,
2013
The Act, as now proposed to be amended, seeks to remove the deficiencies and provide for the
alternative of Leader of Single Largest Opposition Party in the Lok Sabha in the event there is no
Leader of Opposition in the Lok Sabha, for being represented on the Selection Committee for
appointments of Chairperson and Members of. Lok Pal. The amendments will, inter alia, also
ensure functional independence to the Director of Prosecution under the Delhi Special Police
Establishment (DSPE) Act. The amendments seek to synchronize the provisions of the Lokpal and
Lokayuktas Act with the existing regulating Acts, Rules and Regulations in respect of declaration of
assets and liabilities by various categories of public servants and establish appropriate
mechanisms to obtain and publish such information received from public servants, for the benefit
of the public. The proposed amendments will, also ensure functional independence to the Director
of Prosecution under the DSPE Act.
18. MINISTRY OF COMMERCE AND INDUSTRY
1. WTO Appellate Body Accepts Major Indian Challenges to US Countervailing Duties on Hot
Rolled Carbon Steel Flat Products Exported from India
The United States Department of Commerce (US DOC) imposed Countervailing Duty (CVD) on
Indias exports of Hot Rolled Carbon Steel Flat Products. India had challenged the determinations
made by the US DOC in various investigations / reviews treating several programmes of India as
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subsidy whereas, these programmes do not confer any subsidy on the Indian exporters. Various
provisions under challenge were that of US Tariff Act and the Code of Federal Regulations as being
inconsistent with the provisions of WTO Subsidy Agreement (ASCM). The Panel Report was
circulated on 14 July, 2014.
Thereafter, India and the US appealed before the WTO Appellate Body (AB) on various issues
related to the Panels Rulings. On 8 December, 2014 the AB published its Report.
India has achieved a significant victory at the WTO, as the AB held that the Countervailing Duty
(CVD) measures imposed by the United States against certain Hot Rolled Carbon Steel Flat
Products are inconsistent with various provisions of the Agreement on Subsidies and
Countervailing Measures (ASCM). It will definitely help the domestic manufacturers who had been
suffering on account of inconsistent practices by the USDOC.
Under the US law, cumulation of subsidised imports and dumped imports is mandated for the
participating countries to arrive at the injury margin. India challenged this measure as it has been
impacting the CVD investigations by the US leading to exorbitant CVD against India. The AB ruled,
in line with the Panel ruling, with a minor modification and found that the USDOC determination
pursuant to Section 1677(7)(G)(iii) is as such inconsistent with Article 15 of the ASCM. It may be
recollected that the Panel Ruling on inconsistency of the US application of this measure was not
appealed by the US. The implication of this Ruling is that the US has to amend its domestic law to
be WTO compliant and so far as the pending and the future CVD investigations are concerned, the
same would be subject to challenge if cross-cumulation is applied again. It has significant trade
impact for India as out of the current 10 products on which US has imposed CVD, about 7
products suffer from the same inconsistency.
The AB has emphatically endorsed India`s position that a Public Sector Undertaking (PSU) shall
be treated as a public body only when they possess governmental authority and discharge
governmental functions. This ruling would provide significant relief to exporters who buy raw
materials from PSUs such as SAIL or NMDC. The ruling also has world-wide implications on how
the WTO disciplines on subsidies can be applied against alleged financial contributions from Stateowned enterprises.
The AB also agreed with India that the United States` benefit methodology while calculating the
benefit in the case of sale of iron ore by NMDC is unfounded. The AB confirmed the Panel`s
reasoning that proxies indicating domestic prices cannot be ignored in determining benchmarks
under the ASCM.
The AB Report is also relevant with regard to a number of other systemic issues concerning the
implementation of ASCM. For instance, on the aspect of determining an appropriate benchmark to
determine benefit, it has now been clarified that investigating authorities cannot presumptively
reject government-related prices as relevant benchmarks; in applying adverse inferences against
non-cooperating parties, investigating authorities cannot arbitrarily choose to apply any inference,
but instead account for all substantiated facts; and in selecting one fact over another in such
cases, the finding is to be supported by reasoning and evaluation. This AB ruling will usher in
transparency in the conduct of investigations by all the Member countries.
Further, the AB has ruled that investigating authorities do not have the unfettered right to add
new subsidies in the course of reviews of existing CVD measures. Only new subsides that are
closely linked to subsidies examined earlier can be added in a review proceeding. This has
significant systemic implications on the United States practice of indiscriminately including new
subsidies during annual Administrative Reviews.
India will actively monitor the implementation of this ruling by the United States in order to
ensure that the interests of Indian exporters are fully protected. India`s efforts in this dispute show
case its commitment to ensuring a level playing field for its industry. India recognizes with
appreciation the contribution made by various stakeholders including the domestic industry, the
law firm and the various departments who worked in close coordination to achieve this result.
2.Government has approved setting up of the Specialized Agency under the Spices Board with the
nomenclature of Saffron Production & Export Development Agency (SPEDA) to be headquartered at
Srinagar (J&K) to plan and implement programmes for development and promotion of exports of
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quality saffron. The project will benefit all saffron farmers of J&K by assuring higher production
and realization for the unique product of Kashmir.
19. MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
1. National Manufacturing Competitiveness Programme
The Government has announced formulation of a National Manufacturing Competitiveness
Programme (NMCP) with an aim to support the Micro, Small and Medium Enterprises (MSMEs) in
their endeavor to become competitive. The objective of NMCP is to develop global competitiveness
among Indian MSMEs.
This programme targets at enhancing the entire value chain of the MSME sector through the
following components:
(1)
Lean Manufacturing Competitiveness Scheme for MSMEs;
(2)
Promotion of Information & Communication Tools (ICT) in MSME sector;
(3)
Technology and Quality Up gradation Support to MSMEs;
(4)
Design Clinics scheme for MSMEs;
(5)
Enabling Manufacturing Sector to be Competitive through Quality Management
Standards (QMS) and Quality Technology Tools (QTT);
(6)
Marketing Assistance and Technology Up gradation Scheme for MSMEs;
(7)
National campaign for building awareness on Intellectual Property Rights (IPR);
(8)
Support for Entrepreneurial and Managerial Development of SMEs through

Incubators.
(9)
Bar Code under Market Development Assistance (MDA) scheme.
The NMCP programme is still under implementation. Total expenditure of about Rs. 122.00 crore
has been made so far, since inception of the programme.
The various programmes of this
Ministry in general and NMCP programme in particular are expected to enhance competitiveness of
Indian MSMEs to face stiff competition from other countries including China and other
neighbouring countries.
Rehabilitation package for the revival of viable sick MSEs is provided by primary lending
institutions (PLIs), including commercial banks, which provide credit to the MSEs. The
rehabilitation package is determined as per the guidelines issued by RBI from time to time. The
latest guidelines were issued by RBI in November, 2012, based on the recommendations of the
Committee set up by Ministry of MSME to examine the definition of sickness and the procedure for
assessing the viability of sick MSEs. The guidelines, inter alia, provide for:
(i)
Early detection of sickness;
(ii) A viability study to form the basis of rehabilitation package to potentially viable sick MSEs;
and
(iii) A non-discretionary one time settlement scheme for
the MSE sector.
2. NIESBUD signs MoU with World Centre India
Services Council
The National Institute for Entrepreneurship and Small
Business Development (NIESBUD) an autonomous
organization under the Ministry of MSME and World
Trade Centre India Services Council (WTCS) has entered
into a cooperation agreement to promote trade and
commerce for the Micro, Small and Medium Enterprise
(MSME) sector in India.
23
Being a member of WTC Association,

the WTCS has access to a large
database of buyers and sellers,
products and markets and thereby
would help in promoting trade and
commerce for its members. The
agreement would enable exchange of
information
on
various
products,
markets, buyers & sellers for benefit of
MSME.
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WTCS and NIESBUD will provide training in the form of entrepreneurship development and
upskilling of domestic enterprises to facilitate export promotion by providing various services,
information, certifications and data for smooth operations. The World Trade Centre will promote
trade and business under one roof. It would be a Hub for export oriented, financial and allied
services which would cover all major cities through the Hub & Spoke model. It will help micro,
small and medium enterprises in accessing overseas markets for their products and services.
MSMEs will get benefits of robust and most modern infrastructure facilities and world-class
services by World Trade Centre.
20. MINISTRY OF SCIENCE AND TECHNOLOGY
1. India's Communication Satellite GSAT-16 Launched Successfully
India`s communication satellite, GSAT-16, was successfully launched on December 7, 2014 by the
Ariane-5 launch vehicle VA221 of Arianespace from Kourou, French Guiana. Ariane-5 precisely
placed GSAT-16 into the intended Geosynchronous Transfer Orbit (GTO).
2.First Experimental Flight of Indias Next Generation Launch Vehicle GSLV MK-III
Successful
The first experimental flight (GSLV Mk-III X/CARE) of Indias next generation launch vehicle GSLV
Mk-III was successfully conducted on December 18, 2014 from Satish Dhawan Space Centre
SHAR, Sriharikota.
Also known as LVM3-X/CARE, this suborbital experimental mission was intended to test the
vehicle performance during the critical atmospheric phase of its flight and thus carried a passive
(non-functional) cryogenic upper stage.
21. PRIME MINISTERS OFFICE
1. List of documents signed during the Official Visit of President of Russian Federation to
India (December 10-11, 2014)
1.
Inter-Governmental Documents
1.
Protocol
for
consultations
Envisages close consultation between the two
between the Ministry of External Foreign Ministries on as many as 17 issues, ranging
Affairs & Ministry of Foreign Affairs of from Asia-Pacific to West Asia to West Europe to
Russia for the period 2015-2016.
Latin America as also at various multilateral for a
like UN, G20, BRICS, SCO, RIC.
2. Agreement for Training of Indian

Lays down provisions and procedures for
Armed Forces Personnel in the Military training courses in military educational and training
Educational
Establishments
of establishments. Will facilitate better understanding
the Defence Ministry of the Russian between the two defence forces.
Federation.
3.
Strategic Vision for Strengthening

Envisages roadmap of bilateral cooperation in
Cooperation in Peaceful Uses of the civil nuclear energy sector for the next two
Atomic Energy between the Republic decades.
of India and the Russian Federation
4.
Provisions for the Technical Data

Envisages provisions/terms of information
and Information Nondisclosure in the exchange between the nuclear agencies of both the
framework of cooperation in the field countries. Will provide an impetus to scientific and
of Peaceful Use of Nuclear Energy
technological cooperation in the peaceful use of
nuclear energy.
5.
Programme of Cooperation (POC)

Sets out a concrete programme for cooperation,
under
Framework
of
Inter- envisaging projects including joint exploration and
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governmental
Agreement
for production of hydrocarbons, long term LNG supplies
Enhancement of Cooperation in Oil & and joint study of a hydrocarbon pipeline system
Gas in 2015-16
connecting Russia with India.
6.
MoU between Quality Council of

Aims at development of accreditation systems,
India (QCI) and Federal Accreditation sharing of information, recognition of test reports,
Service of Russian Federation on and creation of conditions for the elimination of
technical cooperation on accreditation technical
barriers
in
trade
and
economic
cooperation.
7.
Memorandum of Understanding
Envisages programme of cooperation in specific
between the Indian Council of Medical areas of health research such as oncology,
Research (ICMR) and the Russian bioinformatics & bio-imaging, neurosciences, new
Foundation for Basic Research (RFBR) generation vaccine research and research in
on cooperation in Health Research
HIV/AIDS.
COMMERCIAL CONTRACTS
8.
MoU between TATA Power

Describes cooperation in exploring investment
and Russian Direct Investment opportunities in the energy sector across the
Fund (RDIF)
Russian Federation.
9.
MoU between ACRON of

Envisages acquisition of stakes by a
Russia and NMDC of India consortium of Indian companies in a US$ two billion
(consortium
leader)
to project of ACRON, a Russian fertilizer company.
implement the understanding
reached to acquire stake in a
potash mine in Russia
10.
MoU between
VTB
Envisages finance arrangement of US$ one
(Vneshtorgbank) of Russia and billion to ESSAR by VTB for general corporate
ESSAR Group
purpose.
11.
MoU between
IDFC
Describes terms and conditions on creation of
(Infrastructure
Development a fund for investments in India and Russia.
Finance Corporation Ltd) and
RDIF
(Russian
Direct
Investment Fund) on a coinvestment opportunity up to
US $ one billion.
12.
MoU between Oil India

Envisages cooperation in joint search and
Limited and Zarubezhneft
evaluation of new hydrocarbons exploration,
production, and transportation projects. Will
facilitate technological association on hydrocarbon
projects in India.
13.
MoU between FICCI and

Aims at broadening and strengthening
Delovaya Rossiya
economic ties and identifying new areas of economic
cooperation. Will facilitate exchange of information
and support to enterprises in both countries.
14.
MoU between
agencies PTI and TASS
25
news
Envisages cooperation on exchange of news

and the right to use news items. Aims at exchange
of expertise and technical assistance through
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contacts between editorial staff, experts, journalists,

press photographers and senior managers.
15.
MoU between Electronics

Describes support to companies in the
and Software Export promotion Information Technology and innovation sectors in
Council of India (ESEPCI) and their efforts to enter new markets by means of joint
Skolkovo Foundation of Russia ventures, strategic alliances and in joint research
and development.
16.
MoU between ESSAR and

Envisages ten year supply and purchase by
ROSNEFT for long-term supply India of crude oil and feed stocks/products.
of crude oil.
17.
Supplement
to
the
Will operationlise the
General
Framework
General Framework Agreement Agreement (GFA) and Technical Commercial Offer
(GFA) for Units 3 and 4 (TCO) signed in April 2014, for the implementation
of Kudankulam Nuclear Power of Kudankulam Nuclear Power project (KKNPP)
Project between Nuclear Power Units 3 and 4.
Corporation of India Limited
(NPCIL)
and
ATOMSTROYEXPORT (ASE)
18.
Contract between Nuclear

Will
mark
the
commencing
of
the
Power Corporation of India implementation
of
the
Units
3
and
4
Limited
(NPCIL)
and of Kudankulam Nuclear Power with supply of some
ATOMSTROYEXPORT (ASE) for major equipment by ATOMSTROYEXPORT.
unit 3 and 4 of Kudankulam
Nuclear Power Plant.
19.
MoU between Gamesa Win

Will facilitate cooperation between the two
d Turbine Pvt Ltd. of India and companies in wind power equipment.
ROTEK of Russia.
20
MoU between
EIRENE
Envisages a joint venture to market GLONASS
SYSTEMS and GLONASS Union technologies and solutions in India. Will contribute
to joint development and implementation of projects
like Navigation Platform and Geographical
Information System in India.
2.PM: NREGA should be integrated with the overall plan of Pradhan Mantri Krishi Sinchai
Yojana
In yet another initiative aimed at benefiting farmers, the Prime Minister has asked concerned
Departments and Ministries of the Union Government to fast-track the Pradhan Mantri Krishi
Sinchai Yojana. Today`s meeting follows yesterday`s decision by the Union Cabinet, in which
amendments to the Land Acquisition Act, 2013, were cleared. The amendments include the profarmer step of bringing 13 most frequently used Acts for Land Acquisition for the Central
Government Projects into the purview of the Land Acquisition Act, thus benefiting a large number
of farmers whose land is acquired for such projects.
The Prime Minister noted that NREGA had been used over the past few years for creation and
augmentation of irrigation assets. He said that NREGA should be integrated with the overall plan of
Pradhan Mantri Krishi Sinchai Yojana. He also called for precise monitoring of outcomes in this
regard.
At the macro-level, the Prime Minister asked the Ministry of Water Resources to identify riverinterlinking projects that could be immediately taken up.
The Prime Minister called for comprehensive mapping and identification of water bodies across the
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country. He said satellite imagery and 3D photography could be used to guide villages to best
possible sources of irrigation.
The Prime Minister has asked concerned departments to look into the possibility of identifying
progressive farmers, who could take the lead in implementing water conservation and innovative
irrigation techniques.
The Prime Minister has also called for integrating water recycling projects of key towns and cities,
to irrigation in nearby rural areas. He emphasized the importance of generating consciousness
among people towards water conservation.
22. Ministry for Development of North-East Region
1. Scheme for Promoting use of Geotechnical Textiles in North East Region Approved
The Ministry of Textiles has approved A Scheme for promoting Usage of Geotechnical Textiles in
North East Region (NER) in order to capitalize on the benefits of Geotechnical textiles. The
scheme has been approved on 3rd December 2014 with financial outlay of Rs. 427 Crore for five
years from 2014-15. This would include Rs. 374 crores for Geotextiles Material application and Rs.
53 Crores for the training and other soft components. The use of this modern and globally proven
technology will help in creating Roads and Infrastructure in North East (NE) which will require less
maintenance and shall have longer life. North Eastern Region has young Himalayas which are
prone to landslides, has high seismic activity and weak soil conditions. The Geotextiles technology
shall prove an apt solution for such conditions.
The scheme envisages use of Geotextiles on pilot basis for demonstration and proving efficacy in
areas of Road and infrastructure building, Slope and hill protection and Water Reservoirs in North
Eastern States. The scheme aims to utilize Geotextiles in developing infrastructure in NE by
providing the incremental cost for utilization of Geotextiles up to 15% of the project cost. The
scheme will be driven by Textile Ministrys Centers of Excellence and will also provide technological
support, capacity building, training, market development support and create awareness about
Geotextiles by supporting the entire Supply Chain.
North Eastern Region is prone to heavy rain fall. The use of Geotextiles in water reservoirs will help
in storing the rain water and shall address the water scarcity in the region. The use of Geotextiles
in slope and hill protection shall prevent the landslides which are common in North Eastern
Region. Once the Technology is demonstrated in North Eastern Region which is one of the most
difficult terrains, it is expected that usage of Geotextiles will increase in NER and also in rest of
India which shall result in growth of Industry and hence employment.
23. Ministry of Urban Development
1. National Capital Territory of Delhi Laws (Special Provisions) Amendment Bill, 2014 passed
by the Lok Sabha
The National Capital Territory of
Delhi Laws (Special Provisions)
Amendment Bill, 2014 has been
passed by the Lok Sabha. The Bill
seeks to extend the validity of the
National Capital Territory of Delhi
Laws (Special Provisions) Second
Act, 2011 upto 31.12.17.
The objective of the extension of time is not only to

protect certain forms of unauthorized developments
from punitive action in the NCT of Delhi, but also to
provide for opportunity to the Government agencies to
finalize the norms, policy guidelines and feasible
strategies as well as orderly implementation of the plan
in this regard. National Capital Territory of Delhi Laws
(Special Provisions) Second Act, 2011 is due to expire
on 31st December 2014.
The bill seeks orderly arrangements

pursuant
to
guidelines
and
regulations for regularization of
unauthorized colonies, village abadi areas (including urban villages) and their extensions, as
existed on the 31st day of March 2002, and where construction took place even beyond date and
upto 1st June, 2014.
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2. NCT of Delhi Laws (Special Provisions) Amendment Bill, 2014 passed by Parliament
The National Capital Territory of Delhi Laws (Special Provisions) Amendment Bill, 2014 has been
passed by Parliament.
The Bill seeks to extend the validity of the National Capital Territory of Delhi Laws (Special
Provisions) Second Act, 2011 upto 31.12.17. As per the provisions of the said Act of 2011, orderly
arrangements had to be made for relocation or rehabilitation of slum dwellers and Jhuggi-Jhopri
clusters; regulation of street vendors; regularization of unauthorized colonies, village abadi areas
and their extensions and existing farm houses; regularization of schools, dispensaries, religious
and cultural institutions, storages, warehouses and godowns built on agricultural land;
redevelopment of existing godown clusters and building regulations for Special Areas.
While progress has been made in evolving the policies, norms and strategies towards
implementation of the Act, more time is needed to bring in orderly arrangements keeping in view
the current ground realities in the National Capital Territory of Delhi. Further, the norms, policies
and guidelines for unauthorized developments, including complexities in regularizing unauthorized
colonies, may also need to be appropriately modified to bring them in conformity with revised MPD2021. The review of MPD 2021 is likely to be completed in early 2015.
The objective of the extension of time is not only to protect certain forms of unauthorized
developments from punitive action in the National Capital Territory of Delhi but also to provide
for opportunity to the Government agencies to finalize the norms, policy guidelines and feasible
strategies as well as the orderly implementation of the plan in this regard.
The Bill seeks orderly arrangements pursuant to guidelines and regulations for regularization of
unauthorized colonies, village abadi areas (including urban villages) and their extensions, as
existed on the 31st day of March 2002, and where construction took place even beyond date and
upto 1st June, 2014.
24. Ministry of Environment and Forests
1. Statement of Shri Prakash Javadekar, Minister of Environment, Forests and Climate
Change on the conclusion of COP 20 Summit at Lima
We are happy that the final negotiated statement at COP 20 in Lima has addressed the concerns of
developing countries and mainly the efforts of some countries to re-write the convention has not
fructified. It gives enough space for the developing world to grow and take appropriate nationally
determined steps.
This Final Draft has paved the way for a Paris Agreement to be arrived next year on the basis of
principles of equity and differentiated responsibility. The Final Draft also clearly mandated the
developed world to take more firm financial commitments to scale it up to Dollar 100 billion per
year from 2020. Developed world is also mandated to provide resources for technology
development, transfer and capacity building. There is a greater role for public finance for
Adaptation Funding. The provision in the earlier draft for Ex-ante review of actions of even
developing countries has been removed. The aspirations and main concerns of the Least Developed
Countries and developing countries are addressed. India pro-actively engaged with the developed
as well as developing world to arrive at a negotiated settlement based on the principles of the
convention and the whole edifice will continue to be under the convention.
25. Ministry of Food Processing Industries
1.Mega Food Park inaugurated at Dabwala Kalan, in Fazilka District Punjab
Union Minister for Food Processing Industries, inaugurated the first of its kind Rs 136 Crore Mega
International Food Park at Dabwala Kalan, in Fazilka District Punjab.
Inaugurating the food park, which is among the fourth such parks in the country, the Union
Minister gave a clarion call for establishment of more food processing units to reduce the huge food
wastage worth Rs 45,000 crores in the country. The 55 acre food park has come up at a cost of Rs
136 crore having facilities for processing milk and milk products besides packaging vegetables and
fruits.
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26. President's Secretariat

1. 14th Finance Commission Submits Its Report
The Fourteenth Finance Commission on December 15, 2014 submitted its Report for the period
April 1, 2015 to March 31, 2020. The report was submitted to the President of India, for placing
before the President in accordance with the Order of the President dated January 2, 2013
constituting the Finance Commission, as amended vide Order dated October 31, 2014 extending
its tenure till December 31, 2014.
27.MINISTRY OF PETROLEUM AND NATURAL GAS
PAHAL - Direct Benefit Transfer for LPG consumer (DBTL) scheme launched in 54 districts on
15.11.2014. Will be expanded to rest of the country on 1.1.2015. Will cover 15.3 crore active LPG
consumers of the country. It will be the biggest direct cash transfer scheme in the world. The
Scheme aims to plug leakage in LPG subsidy due to diversion of subsidized LPG in commercial
sector.
28.MINISTRY OF SOCIAL JUSTICE AND EMPOWERMENT
The Department of Disability Affairs (Nishaktata Karya Vibhag) under the Ministry of Social Justice
& Empowerment has renamed as Department of Empowerment of Persons with Disabilities
(Viklangjan Sashaktikaran Vibhag).
29.MINISTRY OF TOURISM
Government has set a target to achieve one percent share in global tourism arrivals by next year:
Dr Mahesh Sharma.Five theme based-circuits i.e., Ganga , Krishna , Buddha , North East and
Kerala circuits being developed by the Ministry of Tourism.
Among the steps taken recently, the Government has identified 25 monuments for Adarsh Smarak
Campaign, in which they will be developed as model monuments. The path breaking initiative of ETicketing at monuments has already begun with the launch of E-Ticketing at the Taj Mahal at Agra
and Humayuns Tomb at Delhi.
30. MINISTRY OF DRINKING WATER AND SANITATION
Nationwide Monitoring of use of Toilets will be launched from January, 2015
The Ministry of Drinking Water and Sanitation will launch a Nationwide Real Time Monitoring of
use of toilets from January 2015. The Monitoring System will be unveiled to give a big push to
Swachh Bharat Mission, which aims at attaining a 100% Open Defecation Free India by 2019.
People across the country will be mobilized to check
and verify the use of toilets in the rural areas through
Mobile Phones, Tablets or I-Pads and upload the same
in case of any discrepancy on the Ministrys Website in
tune with online Citizen Monitoring. Earlier, the
monitoring was done only about the construction of
toilets, but now the actual use of toilets will be
ascertained on a sustained basis.
Recent initiatives:
Provision of entering progress under the

Swachh Bharat Mission (Gramin) with names
of Individual beneficiaries; Photos of Toilets
constructed and Coordinates of the toilets to
be uploaded
Key Resource Centres identified for carrying
out training on Sanitation
Media Campaign at National & State level
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States starting large IPC Campaign at GP level

Conjoint approach to Water and Sanitation has been adopted in planning
Focus on Menstrual Hygiene Management
Evaluation by National Level Monitors of Ministry of Rural Development/ Drinking Water
and Sanitation carried out in 57 Districts in 2014
Independent 3rd. Party National Evaluation of NBA has been started
Concurrent Monitoring with Mobiles with support of WSP
Bottleneck Analysis Tool (BAT) with support of UNICEF
The main objectives of the Swachh Bharat Mission (Gramin) are as under:
Bring about an improvement in the general quality of life in the rural areas.
Accelerate sanitation coverage in rural areas to achieve the vision of Swachh Bharat by
2019 with all Gram Panchayats in the country attaining Nirmal status.
Motivate communities and Panchayati Raj Institutions promoting sustainable sanitation
facilities through awareness creation and health education.
Encourage cost effective and appropriate technologies for ecologically safe and sustainable
sanitation.
Develop community managed environmental sanitation systems focusing on solid & liquid
waste management for overall cleanliness in the rural areas.
The Total Sanitation Campaign (TSC) under the restructured CRSP was launched with effect from
1.4.1999 following a community led and people centered approach. TSC moved away from the
principle of state-wise allocation to a demand-driven approach. The programme lays emphasis on
Information, Education and Communication (IEC) for generation of effective demand for sanitation
facilities. It also lays emphasis on school sanitation and hygiene education for bringing about
attitudinal and behavioral changes for adoption of hygienic practices from an early age.
To encourage the Panchayati Raj Institutions to take up sanitation promotion, the incentive award
scheme of Nirmal Gram Puraskar (NGP) was launched in 2005. The award is given to those PRIs
which attain 100% open defecation free environment. This award publicized the sanitation
programme significantly all across the country.
Encouraged with initial success of NGP, and looking into the need to upscale the sanitation
interventions, the TSC was revamped as the Nirmal Bharat Abhiyan, (NBA) in 2012, with the
objective to accelerate the sanitation coverage in the rural areas so as to comprehensively cover the
rural community through renewed strategies and saturation approach and to transform rural India
into Nirmal Bharat.
While the programme has been successful to some extent, the fact that there are still a large
number of rural households without access to safe sanitation facilities, which is a issue which
needs to be tackled on war footing in a time bound manner, the Swachh Bharat Mission (Gramin)
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has been launched on 2nd October, 2014, which aims at attaining a 100% Open Defecation Free
India by 2019.
Sanitation Coverage:Census 2011 has reported that sanitation coverage in rural India has reached 32.70% taking into
consideration the increased population.
Census 2011 has also reported an increase in
2.96 crore households in rural areas as
compared to census 2001.
The NSSO-2012 report has estimated that
40.6% of rural households have sanitation
facilities. As per Baseline Survey Report 2013,
40.35% households have toilet. State-wise
Status is as under :-
Financial progress during the last two

years and current year (Rs. in crore)
The Allocation and Utilisation during the last 2 years and current is as under Swachh Bharat
Mission (Gramin) :
Nirmal Gram Puraskar

To encourage the Panchayati Raj Institutions to take up sanitation promotion, the incentive award
scheme of Nirmal Gram Puraskar (NGP) has been launched. The award is given to those PRIs
which attain 100% open defecation free environment. Under NGP, a total of 28589 Gram
panchayats, 181 Intermediate panchayats and 13 District panchayats have received the award
till date.Swachh Bharat Award is proposed to be launched for Individuals; Institutions; GPs,
Districts; States who do exceptional work.
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1.

PIB Gist of the Month (December)

PIB Gist of the Month (December)

PIB Gist of the Month (December)

Terms of Reference of SBIG are as follows:

Setting up a data repository for the shadow banking sector.

PIB Gist of the Month (December)

PIB Gist of the Month (December)

PIB Gist of the Month (December)

Agreement for a further period of six months up to June 30, 2015.

PIB Gist of the Month (December)

In order to strengthen and enhance Grid safety and security, specific

To achieve the objectives of efficiency and for giving choice to consumers

In order to accelerate the development of Renewable Energy sources, a

PIB Gist of the Month (December)

Renewable Energy Policy, development of renewable energy industry,

To rationalize the tariff structure on sound financial principles for the

3. Government sets up an Independent Government Company-POSOCO for Reforms in Power

PIB Gist of the Month (December)

4. Foundation Stones of Two Power Sub Stations

PIB Gist of the Month (December)

PIB Gist of the Month (December)

PIB Gist of the Month (December)

Suburban corridors through Public Private Partnership (PPP).

High speed train projects.

Dedicated freight lines.

Infrastructure in industrial park pertaining to railway line/siding.

Mass Rapid Transport System.

PIB Gist of the Month (December)

The criteria/norms for selection/identification of 100 districts under the BetiBachaoBetiPadao

PIB Gist of the Month (December)

PIB Gist of the Month (December)

PIB Gist of the Month (December)

PIB Gist of the Month (December)

PIB Gist of the Month (December)

PIB Gist of the Month (December)

PIB Gist of the Month (December)

PIB Gist of the Month (December)

PIB Gist of the Month (December)

Lean Manufacturing Competitiveness Scheme for MSMEs;

Promotion of Information & Communication Tools (ICT) in MSME sector;

Technology and Quality Up gradation Support to MSMEs;

Design Clinics scheme for MSMEs;

Marketing Assistance and Technology Up gradation Scheme for MSMEs;

National campaign for building awareness on Intellectual Property Rights (IPR);

Support for Entrepreneurial and Managerial Development of SMEs through

Bar Code under Market Development Assistance (MDA) scheme.

Early detection of sickness;

PIB Gist of the Month (December)

Being a member of WTC Association,

2. Agreement for Training of Indian

Strategic Vision for Strengthening

Provisions for the Technical Data

Programme of Cooperation (POC)

PIB Gist of the Month (December)

MoU between Quality Council of

MoU between TATA Power

MoU between ACRON of

MoU between Oil India

MoU between FICCI and

PIB Gist of the Month (December)

Envisages cooperation on exchange of news

contacts between editorial staff, experts, journalists,