Renewable Energy: Need and Initiatives

Electricity is one of the key infrastructure requirements for the economy to grow.  In today’s world it is indispensable to every walk of life. Agriculture, Services, Industry…..you name it and you need it there. Considering the indispensability India is making all efforts  to generate  it from various sources viz. Hydro, Thermal, Nuclear and even non conventional sources like solar and wind energy.

The country stands today at a place where there is acute power shortage and its per capita consumption one of the lowest. As much as 75% of its electricity is generated by burning coal and natural gas. The extent of bankability on coal raises questions in the direction of limited reserves and the environmental concern thus posing a dual challenge, to be met, of availability of Power and clean environment.

This leaves India with the option of generating energy through non conventional sources and thus came the Ministry of new and renewable energy, trebling the generation from 5 to 15 GW. By 2022 it is expected to reach 40 GW. The country holds the potential to generate 150 GW of Power through renewable sources. As of now, electricity generation from renewable sources of energy is only 3.5%. It is likely to increase to 10% by 2022.

Jawaharlal Nehru National Solar Mission, launched on the 11th January, 2010 by the Prime Minister Dr. Manmohan Singh is a major initiative in the field of giving a boost to utilisation of non-conventional sources of energy. The Mission has set the ambitious target of deploying 20,000 MW of grid connected solar power by 2022 . It is aimed at reducing the cost of solar power generation in the country through long term policy; large scale deployment goals; aggressive R&D; and domestic production of critical raw materials, components and products. The  Mission will create an enabling policy framework to achieve this objective and make India a global leader in solar energy.

The 11th Five Year Plan witnessed an impressive progress in research and development and deployment in renewable energy sector. Ministry of new and renewable energy has sponsored 169 R&D projects in the area of solar energy, bio-energy and hydrogen and fuel cells with a total outlay of about Rs.525 crore. Renewables contributed to nearly 14,660 MW power during the 11th Plan and they will become more important in future.

The Ministry is providing subsidy of 30% of the benchmark cost  of the solar photovoltaic (SPV) systems. It is also providing subsidy  for installing solar lanterns, home lights and small capacity PV plants  through NABARD, Regional Rural Banks and other Commercial Banks.  Banks also extend credit facility to the beneficiaries at usual commercial rates to meet the rest of the cost. Upto 31st March, 2012 over nine lakh five thousand  solar lanterns,  eight lakh sixty two thousand  solar home lights and about eight thousand  solar water pumping systems have been installed in the country. During 2011-12, the  Ministry sanctioned a project for installation of standalone SPV power plants aggregating to 8740 kWp capacity in 4115 schools and 9 examination centers. During the current financial year,  a project for installation of 560 SPV water pumping systems in six districts of Bihar has been sanctioned. A Plan has also been prepared for increased exploitation of various renewable energy sources in the country during the 12th Plan .

The 12th Plan proposals envisage 29,800 MW grid-interactive and 3267 MW off-grid power generation capacity addition from various renewable energy sources and deployment of 7 lakh biogas plants, 35 lakh cook stoves, 8.5 lakh solar cookers and 80.5 lakh solar thermal energy systems in the country .  Twenty  million solar lighting systems and 20 million sq. solar thermal collector area is envisaged by 2022.

Efforts are also on to promote wind power through private sector investment by providing fiscal and promotional incentives such as concessional import duty on certain components of wind electric generators and  excise duty exemption to manufacturers. 10 years tax holiday on income generated from wind power projects is also available.  Besides, loans for installing windmills are available from Indian Renewable Energy Development Agency (IREDA) and other Financial Institutions. Technical support  is provided by the Centre for Wind Energy Technology (C-WET), Chennai.  The Government had announced a Generation Based Incentive (GBI) during 11th Plan period. Efforts are being made to continue the GBI scheme in 12th Plan.

National Tariff Policy was amended mandating State discoms to have a solar RPO of 0.25% by 2013 reaching  3% by 2022. The Government has already implemented a scheme to procure 1000 MW of solar power and supplying it to State discoms after bundling with equivalent capacity of thermal power.

Even generation of power from garbage and municipal solid waste is also being given due attention. The 16 megawatt project installed at Okhla in New Delhi is the only such project in operation in the country. The project, commissioned in May this year, has so far generated about 24 million units (kWh) of electricity. Projects on energy from municipal solid wastes (MSW) are being taken up by the Municipal Corporations in public private partnership mode by tying up with selected private companies.

There is abundance of solar energy available in most parts of the country. Ladakh, for instance has bright sunshine for 300 out of 360 days a year and it is one of the focus areas of the ministry in exploiting solar energy. What matters is to tap it for electricity generation or for other useful purposes. To make it affordable and cost effective, sincere efforts have to be made and suitable policies formulated. A total of around 1000 MW capacity solar power plants have been installed in the country in last two years and if this trend continues, the country will indeed achieve the target of 20000 MW by 2022. Alongside, due attention has to be paid to provide quality product and service to develop confidence among the users.

 

Tackling the Backlog of Cases in the Courts

Huge backlog and pendency has been a matter of concern as it delays the disposal of cases in the courts.  Of the 3 crore cases pending, 74% are less than 5 years old.  The Chief Justice of India has expressed the need of making the judicial system 5+ free by addressing 26% of the old cases which are of more than 5 years. The Government has been constantly endeavouring and working towards improvement in judicial system in the country jointly with the judiciary. In this direction the Government has been undertaking computerization of courts since 2007 and has been investing on improving infrastructure in the judiciary since 1993-94. Of late, establishment of National Court Management System has been notified by the Chief Justice of India.  This would be addressing issues of case management, court management, setting standards for measuring performance of the courts and a national system of judicial statistics in the country.

In order to free the criminal justice system of clogging, which is taking place on account of cases under the Negotiable Instruments Act, 1881 and the Motor Vehicle Act, 1988 serious efforts are being made to dispose them of on priority through special courts, Lok Adalats and Alternate Dispute Resolution (ADR) mechanisms.  Instructions have also been given to the States to utilize funds under the Thirteenth Finance Commission for this purpose as well as for setting up special courts and morning/ evening courts to dispose of such cases.

Reducing the delay and arrears in courts has been the constant endeavour of the Government.  For this, several steps have been taken in the past both for making structural changes as well as for monitoring the performance of the courts in so far as their disposal are concerned.  The disposal has been accelerated by undertaking special drives, the recent one being from 1^st July, 2011 to 31^st December, 2011.  Of late, the Government has set up a National Mission for Justice Delivery and Legal Reforms which will be addressing the issues of delays and arrears in the judicial system as well enforcing better accountability at all levels through a variety of methods which will include setting and monitoring of performance standard, enhancement of capacity through training at various levels etc.

Besides, the Government has been assisting the States in many ways:

·         The 13^th Finance Commission has recommended a grant of Rs. 5,000 crore for the states over a period of 5 years between 2010-2015.  The amount is being provided as a grant to the States for various initiatives like – Increasing the number of court working hours using the existing infrastructure by holding morning/ evening/ shift courts; Enhancing support to Lok Adalats to reduce the pressure on regular courts; Providing additional funds to State Legal Services Authorities to enable them to enhance legal aid to the marginalized and empower them to access justice; Promoting the Alternate Dispute Resolution (ADR) mechanism to resolve part of the disputes outside the court system; Enhancing capacity of judicial officers and public and public prosecutors through training programmes; and Creation of the post of Court Managers in every judicial district and High Courts buildings.  An amount of Rs. 1,353.62 crore has already been released to the States on this account.

·         Under the Central Sector Scheme, 100% funds are being provided by Central Government for computerization of the District and Subordinate Courts (e-Courts project) in the country and for upgradation of the ICT infrastructure of the Supreme Court and the High Courts.  Out of 14,229 courts, 9697 courts have been computerized in the country as on 31 March, 2012.  The balance courts would be computerized by 31 March, 2014.

·         The Gram Nyayalayas Act, 2008 has been enacted for establishment of Gram Nyayalayas at the grass roots level for providing access to justice to citizens at their doorstep.  The Central Government is providing assistance to States towards non-recurring expenses for setting up of Gram Nyayalayas subject to a ceiling of Rs. 18.00 lakh per Gram Nyayalaya.   The Central Government also provides assistance towards recurring expenses for running these Gram Nyayalayas subject to a ceiling of Rs. 3.20 lakh per Gram Nyayalaya per year for the first three years.  As informed by the State Governments, 153 Gram Nyayalayas have been notified already.  Out of these 151 Gram Nyayalayas have started functioning.

·         A Centrally Sponsored Scheme for development of infrastructure facilities for the judiciary is being implemented since 1993-94 under which central assistance for construction of court buildings and residential quarters for judicial officers is released to augment the resources of the State Governments.  The expenditure on the scheme is shared by the Centre and the State Governments on 75:25 basis, except for States in North East Region, which is on 90:10 basis.  An expenditure of Rs. 1841 crore has been incurred on this scheme up to 31.3.2012 since inception.

The Government is also conscious of the need to recruit talented and experienced persons including lawyers as Judges as this goes a long way in disposing of cases in courts. The Constitution was amended in 1977 to provide for an All India Judicial Service (AIJS) under Article 312 of the Constitution.  There has been overwhelming support in favour of AIJS later also by the Law Commission in its Reports, the First National Judicial Pay Commission, Committee on Centre State Relations and Department Related Parliamentary Standing Committee.  However, consensus on having AIJS has not been possible in the consultations held with the State Governments and the State High Courts.  But the Government proposes to pursue it by offering a more plausible and acceptable formulation of AIJS.

source-PIB

Infrastructure Debt Fund

India has emerged as one of the fastest growing economies during the past decade. However, infrastructure development has not kept pace with the growth in the rest of the economy. Realizing this, India initiated an ambitious reform programme in all infrastructure sectors. The Government has taken several initiatives to promote private sector participation in the infrastructure sector as a result of which the share of GDP going into infrastructure investment has increased from 5% in 2007 to 7% during 2009-10 and has increased to more than 8% in 2011-12. For the XII Five Year Plan (2012-2017), the target of infrastructure investment has again been doubled to US $ 1 trillion 50% of which is envisaged from the private sector.

The Ministry of Finance has taken several initiatives to promote the flow of long term funds in infrastructure sector (both domestic and off-shore funds) like setting up of the Infrastructure Debt Fund (IDF), raising the FII limits and liberalizing the ECB regime in order to facilitate off shore fund flows to infrastructure.

The Finance Minister in his Budget speech for 2011-12 had announced setting up of Infrastructure Debt Funds (IDFs) to accelerate and enhance the flow of long term debt in infrastructure projects. To attract off-shore funds into IDFs, it was decided to reduce withholding tax on interest payments on the borrowings by the IDFs from 20% to 5%.

Wide-scale consultations with stakeholders were undertaken . Ministry of Finance issued the guidelines for the IDFs that inter alia allowed IDFs to be set up as NBFCs or as mutual funds in June, 2011. Regulations governing IDFs structured as mutual funds was issued by SEBI in August, 2011 and regulations governing IDFs structured as NBFCs was issued by RBI in November, 2011.

The IDFs through innovative means of credit enhancement is expected to provide long-term low-cost debt for infrastructure projects by tapping into source of long tenure savings like Insurance and Pension Funds which have hitherto played a comparatively limited role in financing infrastructure in India. Further, the IDFs set up as NBFC shall invest only in PPP projects which have successfully completed one year of commercial operation and are a party to a Tripartite Agreement with the concessionaire and the Government authority sanctioning the project. Banks and NBFCs would be eligible to sponsor IDFs subject to existing prudential limits. The restricted portfolio of investment of the IDF, tripartite agreement and first loss of the sponsors would enable the IDFs to issue bonds with at least AA rating.  Thus the IDFs would present an attractive option for such entities who wish to invest for long term in comparatively secure instruments. The off-shore investors that these IDFs are targeted to tap are Pension Funds, Insurance Companies, Sovereign Wealth Funds, Endowment Funds etc.

So far 3 IDFs have already been launched. The first IDF structured as a NBFC was launched on March 5, 2012, with ICICI Bank, Bank of Baroda (BoB), Citicorp Finance India Limited (Citi) and Life Insurance Corporation of India (LIC) entering into a Memorandum of Understanding (MoU). The initial size of this IDF is expected to be Rs. 8,000 crore.

IDBI along with a consortium of public sector banks has also launched an IDF structured as a NBFC with an initial equity of Rs. 1000 crore which enables it to raise funds upto Rs. 26,000 crore.

IDFC has launched an IDF structured as a mutual fund.   Three more funds are awaiting regulatory approval.

source-PIB

Mangroves for the Future

The National Environment Policy, 2006 recognizes that mangroves are an important coastal environmental resource. The Ministry of Environment & Forests is at the forefront in regard to the conservation and management of mangroves, which provide habitats for marine species; protection from extreme weather events and a resource base for sustainable tourism. The Government seeks to sustain mangroves in the country by both regulatory and promotional measures.

What are Mangroves?

Mangroves are plants that survive high salinity, tidal regimes, strong wind velocity, high temperature and muddy anaerobic soil – a combination of conditions hostile for other plants. The mangrove ecosystems constitute a symbiotic link or bridge between terrestrial and marine ecosystems. They are found in the inter-tidal zones of sheltered shore, estuaries, creeks, backwaters, lagoons, marshes and mud-flats. Mangrove vegetation has been reported in all the coastal States/UTs. India is home to some of the best mangroves in the world. West Bengal has the maximum of mangrove cover in the country followed by Gujarat and Andaman & Nicobar Islands. However, not all coastal areas are suitable for mangrove plantation as mangrove requires an appropriate mix of saline and freshwater, and soft substrate like mudflats to be able to grow and perpetuate. The Government has identified 38 mangrove areas on a country wide basis for intensive conservation and management. In Tamil Nadu, Pichavaram, Muthupet, Ramnad, Pulicat and Kazhuveli mangrove areas have been identified.

Mangroves Protect the Coast

Mangrove ecosystems are rich in biodiversity and harbour a number of floral and faunal species (both terrestrial and aquatic) many of which, e.g. the tiger, gangetic dolphin, estuarine crocodile etc. are endangered. They also act as nurseries for fin fish, shell fish, crustaceans and mollusks. Mangrove forests are regarded as the most productive ecosystems in the world on account of the large quantities of organic and inorganic nutrients released in the coastal waters by these ecosystems.

The mangroves besides providing a number of ecological services also play a major role in protecting coastal areas from erosion, tidal storms and surges (tsunamis). They help in land accretion by trapping the fine debris particles. They are also an important source of honey, tannins, wax, besides fish. Presently, these are one of the most threatened ecosystems on account of both anthropogenic factors (reclamation of land, discharge of waste etc) and natural factors like global warming.

Intensive Conservation in Eight States

The current assessment shows that the mangrove cover in the country is 4,662.56 sq km. The mangrove plantation with an average, annual target of 3,000 hectares is undertaken on a country wide basis. The areas supported are among the 38 areas as already identified by MoEF for intensive conservation. During 2010-11, financial assistance to the tune of Rs. 7.10 crores had been distributed among West Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa and Gujarat for conservation and management of mangroves.

The project entitled “Mangroves for Future (MFF): a strategy for promoting investment in Coastal Ecosystem Conservation” is being coordinated by the International Union for Conservation of Nature (IUCN) covering, initially, eight countries, including India.

-PIB

Communal Harmony

India is a vast country, with people belonging to different religions living amicably for centuries together. The rich traditions of tolerance, perseverance, plurality and assimilation have kept the identity of the country intact, and civilization thriving.

Declared a secular country in the constitution, India has several provisions for protection of minority communities. The State does not discriminate on the basis of any particular religion. There are constitutional provisions for equality of opportunities for all. Despite precautionary, preventive and positive measures having been envisaged in the constitution, to rule out any feeling of being left-out, communal disturbances keep recurring. The Government had, often expressed its commitment toward maintaining communal harmony in the country, and has been taking steps- statutory, legal, administrative, economic, and so on.

The Prime Minister, Dr Manmohan Singh, while speaking at the Communal Harmony award ceremony, 2009 reiterated the need for communal harmony and national integration. He said “India has been home to all the great religions of the world. While some were born here, others took root in this ancient land of ours. The sub-continent has for centuries provided a unique social and intellectual environment in which many distinct religions have not only co-existed peacefully but have also enriched each other. It is the sacred duty of each one of us to carry forward this great tradition. I believe that both the government and civil society groups must continuously watch and raise our voice against groups and individuals who use violence in the name of religion. No religion sanctions violence. No religion preaches hatred. No religion endorses animosity towards another human being. Those who use religious symbols and forums to talk of violence, sectarianism and discord cannot be said to be true spokesperson of their respective religion. However, we also know that all societies, including ours, have to contend with such preachers of disharmony and disagreement. That is why it is all the more important to recognize and applaud those – like today’s distinguished award winners – who work selflessly for communal harmony and national integration. It is our obligation to nurture such voices of sanity”.

Gandhiji, the father of the nation, commented “Communalism of the virulent type is a recent growth. The lawlessness is a monster with many faces. It hurts all, in the end, including those who are primarily responsible for it”.

The Government has taken initiatives to promote communal harmony. These include constitution of the National Integration Council (NIC) (1960s), setting up of the National Foundation for Communal Harmony (1992) and laying down of the guidelines for the promotion of communal harmony from time to time. The NIC, comprising of prominent members of various sections of society, besides several union ministers and chief ministers of states, has been meeting regularly, to discuss and sort out the issues of discord. Since the decision makers at the Centre and the States are members of the council, a patient hearing is given to the grievances of various sections of society.

The vision of the National Foundation for Communal Harmony  (NFCH) is to have India free from communal and all other forms of violence, where all citizens especially children & youth live together in peace & harmony. For this, the Foundation promotes communal harmony, strengthens national integration and fosters the spirit of unity in diversity through collaborative social action, awareness programs, reaches out to the victims of violence especially children, encouraging interfaith dialogue for India’s Shared Security, Peace & Prosperity. It provides financial assistance to the child victims of societal violence for their care, education & training, aimed at their effective rehabilitation. It promotes communal harmony and national integration by organizing variety of activities either independently or in association with State Governments, NGOs & other organizations. It confers awards for outstanding contribution to promotion of communal harmony and national integration. It undertakes activities to highlight and strengthen the bonds of unity and affinity between different religious groups in the country, and encourages activities to promote belief in the principles of non-violence in resolving disputes.

There is no denying the fact that the maintenance of communal harmony, and the prevention/avoidance of communal disturbances/riots and, in the event of any such disturbances occurring, action to control the same and measures to provide protection and relief to the affected persons, is a prime responsibility of the State Governments. The Central Government has issued guidelines for maintenance of communal harmony, which cover preventive and Administrative Measures, Personnel Policy, and relief and rehabilitation measures. They reiterate the fact that if due vigilance is maintained, careful planning done and preparatory measures put in place, many possible incidents of communal violence can be pre-empted and prevented; and, wherever, despite this, communal violence does occur, it can be contained effectively, and much human suffering avoided, if it is tackled with promptness, grit and determination. Utmost care and attention requires to be given to the planning and implementation of a range of measures to alleviate the sufferings of those affected by any incidents of communal violence, including the provision of relief and rehabilitation assistance to the victims of such violence.

The guidelines underline the fact that preventing a communal riot is far more important than containing it. It is the duty of the District Administration to carefully assess the communal situation in the District on a regular basis and prepare a profile of the District, identifying the areas which are prone to communal sensitivities and tensions. The police officers should keep a close watch on the situation in such areas, periodically visit them for promoting public contact and interface with the civilian population and community leaders. Manpower requirements for these areas should be realistically assessed, and all vacancies filled up and manned. In the sensitive/hyper-sensitive areas, detailed Standard Operating Procedures (SOPs), and contingency plans to deal with escalated situation/riots, etc., should be kept ready. The unregulated use of loudspeakers, which is often a cause for arousing passions and evoking violent reactions among different groups of people, need to be checked. Various kinds of religious processions, which very frequently lead to communal confrontation and clashes as often various organisations tend to organise, and view, processions on religious occasions as a show of strength, which could itself become a cause for provocation, should be checked. There should be involvement of identified respectable members of the community, in the peaceful conduct of processions. The use of technology, like Video/Audio coverages of events and processions could also act as deterrent.  Effective and meaningful action needs to be taken to curb and check rumours, and proper assignment of nodal responsibility and modalities for information management needs to be ensured. Adequate steps need to be taken to ensure that no damage is caused to places of worship,

The guidelines stipulate that composition of the police force, especially those deployed in communally sensitive areas, should be representative of the social structure of the region so as to ensure its credibility, and help in creating a feeling of confidence among all sections of the people. In communally sensitive and riot prone areas police and administrative officials of proven integrity, efficiency, impartiality and non-partisan outlook should be posted. Every public servant should exercise the lawful authority vested in him/her to prevent commission of any communal violence, protect or provide protection to any victim of communal violence in a strictly neutral manner, and any malafide act or omission should be severely dealt with. Due recognition should be given to the services rendered by the district administration in preventing and dealing with communal disturbances.

In a communally-sensitive area, small shopkeepers, entrepreneurs and daily-wagers are most prone to loss and damage to life and property, if the situation goes out of control, leading to arson or violence. They are most likely to face economic burden, due to loss of income or property, most of which is not covered under any type of insurance. They can thus be the most willing partners in maintaining peace and communal harmony in the area. Similarly, women who are the worst sufferers in such situations may also be keen to ensure communal harmony. The district administration can tap the resources and energy of these people/groups in ensuring peace.

Many voluntary organisations in the country are working in the field of promoting peace, national integration and communal harmony. Such Organisations usually have motivated and well-intentioned volunteers and workers. The district administration should mobilize support of, and encourage, such organisations, in their efforts to maintain communal harmony, and diffusing tension if a communal situation arises Whenever any communal incidents are apprehended or occur, prompt and immediate preventive/enforcement action may be taken, including, imposition of prohibitory orders/ curfew, and strict and neutral enforcement of the same, apprehension /arrest of the potential miscreants/ those indulging in violence, arson, etc., registration/institution of cases. Prosecution of all offences relating to communal violence/ rioting should be carefully monitored and, wherever necessary, Special Investigation Teams (SIT) may be constituted for ensuring fair and impartial investigation.

A lot of resentment is generated on account of non-payment of timely relief/ex-gratia to the riot victims. Interim relief may be provided immediately to the individuals for any loss or damage suffered due to communal violence. While providing assistance and relief to the victims of communal violence, it should be ensured that there is no discrimination on the ground of sex, caste, community, descent or religion. The district administration should ensure timely provision of essential supplies/services such as food, milk, medicines, water and electricity, etc., in areas affected by communal violence. Wherever it becomes necessary to set up relief camps, proper arrangements for security and other appropriate amenities should be made, including arrangements for medical examination/ assistance, etc. Wherever required, on account of damage to residential and commercial property, an appropriate mechanism may be established for speedy disposal of insurance claim and assistance from financial institutions by way of loans/ rescheduling of loans, etc.

The Central Government has launched a Central Scheme for assistance to victims of terrorist and communal violence, whereunder there is provision for one time payment of Rs.3 lakh to the affected families in addition to any ex-gratia relief that may be provided.

The Government has enacted “The Religious Institutions (Prevention of Misuse) Act, 1988”, with a view to maintaining sanctity of religious places and to prevent their misuse for political, criminal, subversive or communal purposes. It casts responsibility on the manager to inform the police in the event of misuse of the place of worship. The Act also prohibits storage of arms and ammunition inside any place of worship.

The Places of Worship (Special Provisions) Act 1991, is the law to prohibit conversion of any place of worship and to provide for the maintenance of the religious character of any place of worship as it existed on the 15th day of August, 1947. According to it, no religious institution or manager thereof shall use or allow the use of any premises belonging to the institution for the promotion or propagation of any political activity, or  for the harbouring of any person accused or convicted of an offence under any law for the time being in force. No arms or ammunition can be stored, nor can it erect or put up any construction or fortification, including basements, bunkers, towers or walls without a valid licence or permission. Such premises can’t be used for the carrying on of any unlawful or subversive act prohibited under any law, or for the doing of any act which promotes or attempts to promote disharmony or feelings of enmity, hatred or ill-will between different religious, racial, language or regional groups or castes or communities.

All the religions have the fundamental teaching of love and the feeling of brotherhood towards fellow beings. When such is the basic tenet of each religion, where is the scope of discord, hatred and violence. It is amply clear that some people misconstrue or misinterpret the religious teachings for their selfish, egoistic and short-term gains, and sometimes fan communal feelings. It is also commonly known that usually the communal disturbances sprout from small, trivial incidents but with vested interests, they take the shape of a giant.

India is a developing country, and an emerging economy. The vision of our leaders to make India a developed nation and an economic powerhouse, can’t fructify unless the internal security of the nation, particularly communal harmony, is intact.  Maintenance of Communal peace and tranquillity occupies lot of Government attention and energy, and in case peace prevails, an ambience of trust will develop between various communities, leading the nation on the path of development and economic advancement.

-PIB

National Strategy for Financial Education

The first decade of the 21st century has seen a universal recognition for spreading financial literacy among people.   Most of the countries  are adopting a unified and coordinated national strategy for financial education.  Given the fact that India is having large population, a fast growing economy with national focus on inclusive growth and an urgent need to develop a vibrant and stable financial system, it has become all  the more necessary to quickly formulate and  implement a national strategy.

Also since a large number of stakeholders including the central and state governments, financial regulators, financial  institutions, civil society, educationists and others are involved in spreading financial literacy; a broad national strategy is a prerequisite to ensure that they  work in tandem according to the strategy and not at cross purposes.

The National Strategy, thus, seeks to create a financially aware and empowered India. It aims at undertaking a massive Financial Education campaign to help people manage money more effectively to achieve financial well being by accessing appropriate financial products and services through regulated entities

What is Financial Literacy?

Organization for Economic Cooperation & Development  defines Financial Literacy as  a combination of financial awareness, knowledge, skills, attitude and behaviour necessary  to make sound financial decisions and ultimately achieve individual financial well being. People achieve financial literacy through a process of financial education.

Financial Inclusion : A Top Policy Priority of Government

Government of India has recognized the importance of spreading financial literacy to intensify efforts to channelize domestic savings to investments. However, increasing range and complexity of products has  made it very difficult for an ordinary person to take an informed decision. Financial literacy develops confidence, knowledge and skills to manage financial products and services enabling them to have more control of their present and future circumstances. Financial literacy will also help in protecting society and individuals against exploitative financial schemes and  exorbitant interest rate charged by moneylenders.

It is expected that financial education can lead to multiplier effects in the economy. A well educated household would resort to regular savings, which in turn would lead to investment in right channels and income generation. Thus, the financial well  being of individuals, will in turn increase the welfare of the society.

International Experience and the Lessons for India

Globally, Countries like Czech Republic, Netherlands, New Zealand, Spain, and UK have already implemented National Strategy for Financial Education, while many other countries are in the process of formulation and implementation.

In India, we need a tiered approach under National  strategy in view of our diversity.  The draft National Strategy has been prepared with the objectives  of i) Creating awareness and educating consumers on access to financial services, various types of products and their features, ii)changing attitudes to translate knowledge into behavior and  iii) Making consumers understand their rights and responsibilities as clients of  financial services.

Given the fast pace of changes in the financial  world, it has been envisaged to have a five year timeframe for implementing the strategy, using Strategic Action Plans.

Sample Survey to Assess the State of Financial Literacy and Inclusion

The Strategy provides for conduct of a nation wide sample survey for assessing the state of financial inclusion and financial literacy. The survey, inter-alia will assess the level of financial inclusion, level of financial awareness about various financial products, level of financial competency to make informed decisions, people’s attitude towards money as well as their attitude towards risk taking.

Based on the assessment of the survey, various financial regulators would develop their financial education modules to address the needs of their clients. It would then be delivered through school curriculum, social marketing, advertising through radio, television, print and outdoor and by setting up dedicated financial education websites. There is also a proposal to rope in Self-Help Groups, Micro-Finance Institutions, investors and consumer associations etc.

Financial Education in School Curriculum

Governments have recognized that financial education should start at school and that people should be educated about financial matters as early as possible in their lives. Organization for Economic Cooperation & Development has developed Guidelines to assist policymakers and interested stakeholders in designing, introducing and developing efficient financial  education programmes in schools.

However, it needs to clearly be specified that the financial education would not be another subject  taught in the schools. What is needed is its  appropriate integration in the school curriculum. For example, compound interest is taught in Arithmetic as an abstract concept of, A lending to B at some interest rate compounded annually. This can be turned into an opportunity of financial education by weaving into a problem of a company that borrows from a bank or a bank customer who opens a Cumulative Deposit Account instead of a simple Fixed Deposit Account. Similarly, moral science courses could have content which are based on day to day financial transactions

CBSE has agreed, in principle, to introduce it in an integral manner in school education at the post primary level and to facilitate the process, a committee of experts has been constituted.

Synergizing the Efforts of Regulators in Spreading Financial Literacy.

In India, various financial regulators including Reserve Bank of India, Securities Exchange Board of India, Insurance Regulatory & Development Authority etc have already embarked upon massive financial literacy programmes adopting multi-pronged approach.

Reserve Bank of India has undertaken a project titled ‘Project Financial Literacy’ to disseminate information regarding the central bank and general banking concepts to various target groups, including school and college students, women, rural and urban poor, defense personnel and senior citizens.

Securities Exchange Board of India has empanelled Resource Persons throughout India who organize workshops to target segments on various aspects viz. savings, investment, financial planning, banking, insurance, retirement planning etc. More than 3500 workshops have been already conducted in various states covering nearly 3 lakh participants.

Insurance Regulatory & Development Authority has been disseminating simple messages about the rights and duties of policyholders, channels available for dispute redressal etc through radio, TV and print media in English, Hindi and 11 other Indian languages.

The Pension Fund Regulatory and Development Authority(PFRDA) has been engaged in spreading social security messages to the public.  PFRDA has developed FAQ on pension related topics on its website, and has been associated with various non government organizations in India in taking the pension services to the disadvantaged community.

Similarly, commercial banks, Stock Exchanges, Broking Houses and Mutual Funds have the initiatives in the field of financial education that spawns conducting of seminars, issuance of do’s and don’ts, and newspaper campaigns.

It will be necessary to collate and classify the vast amount of material developed by these institutions, that can serve as the knowledge base for financial education in India.

Institutional arrangements envisage creation of the National Institute of Financial Education(NIFE), with representatives of various regulators as members. The main role of NIFE shall be to create financial education material for respective financial sectors. NIFE shall also create and maintain a website exclusively for financial education.

The entire policy is sought to be implemented through existing institutional mechanism.  The Technical Group of Sub-Committee of Financial Stability & Development Council on Financial Inclusion and  Financial Literacy shall be made responsible for periodic monitoring and implementation of the strategy.
-PIB

Crime and Criminal Tracking Network

The Crime and Criminal Tracking Network and Systems (CCTNS) project is a mission mode project under the National, e-Governance Plan being implemented by the Ministry of Home Affairs. The project aims at creating a comprehensive and integrated system and a nation-wide networked solution for connecting more than 15,000 Police Stations and nearly 6,000 higher offices in 28 States and 7 UTs of the country for sharing of real-time crime and criminal information.

The project has been conceptualized based on the principle of ‘Centralized Planning and Decentralized Implementation’. A Core Application Software (CAS) is being developed with common definitions, scheme and specifications at the Central level which would be handed over to the States/UTs for State specific customization. However, States which have been allowed to continue to run on their existing applications have to align their existing software to facilitate information exchange with CAS.

The States/UTs have complete operational independence in project implementation. The implementation is through Bundle of Services wherein a System Integrator agency implements all the requisite services as defined by Service level agreements with the States/UTs. A strong governance mechanism with various Committees has also been created as a part of CCTNS project to ensure quality and for timely completion of project.

Objectives

·               Make the police functioning citizen friendly, transparent, accountable, effective and efficient by automating the process and functions at the level of the police stations and other police offices at various levels.

·               Improving delivery of citizen-centric services through effective usage of Information and Communication Technology (ICT).

·               Facilitate collection, storage, retrieval, analysis, transfer and sharing of information among police stations, districts, State headquarters and other organizations/ agencies, including those at Government level.

·               Enabling and assisting the senior Police Officers in better management of police force.

·               Keep track of the progress of the crime and criminal investigation and prosecution cases, including progress of cases in the courts.

·               Reduction in manual and redundant record keeping.

The CCTNS project aims at providing online services to the Citizens. The following is an indicative list of the same:

·               Filing of complaints/information to the concerned police stations.

·               Obtaining the status of the complaint or case registered at police station.

·               Obtaining the copies of FIRs, post-mortem reports and other permissible documents etc.

·               Details of arrested persons/wanted criminals and their illegal activities etc.

·               Details of missing/kidnapped persons and their matching with arrested, unidentified persons and dead bodies.

·               Details of stolen/recovered vehicles, arms and other properties.

·               Submission of requests for issue/renewal of various NOCs, clearances and permits and status of such requests online.

·                     Verification requests for servants, employment, passport, senior citizen registrations etc.

·                     Portal for sharing information and enabling citizens to download required forms/certificates etc.

A Core Application Software (CAS) has been developed and is being tested by the Software Development Agency at the Central level. The CAS would be implemented both at Central level and States/UTs to enable information exchange for crime and criminal tracking as per objectives of CCTNS project. The CAS would be further customized as required by the States/UTs and implemented at States/UTs by the System Integrator agencies.

A nation-wide network and connectivity solution is being implemented by the network solution provider and the readiness survey is currently underway for implementation of the network. It has been completed for 28 States/UTs as of 15.03.2012

The commissioning of IT infrastructure for implementation of national data centre and disaster recovery site are in advanced stage. Deployment of CAS will happen after software certification by STQC. System Integrators have been finalized in 16 States/UTs and rest are in various stages of finalization. All States/UTs have implemented project initiation activities in terms of capacity building and strengthening of training institutions.
-PIB

Financial Inclusion

In his Budget Speech 2010-11, the Finance Minister had directed all banks to provide appropriate banking facilities to habitations having population in excess of 2000 by March, 2012 using various models and technologies including branchless banking through Business Correspondents (BCs). The Financial Inclusion Campaign has been named ‘Swabhimaan’. The Banks formulated their road maps for Financial Inclusion through the mechanism of the State Level Bankers Committee (SLBCs) and had identified approximately 74,000 habitations across the country having a population of over 2000 for providing banking facilities. These habitations were allocated to Public Sector Banks, Regional Rural Banks, Private Sector Banks and Cooperative Banks for extending banking services by March, 2012. As per information received from SLBC Convener Banks, out of 74,398 villages identified under the campaign, 74,194 villages have been covered and 3.16 crore Financial Inclusion bank accounts have been opened by end of March, 2012.

Further, the banks have been advised to set up Ultra Small Branches in villages covered under Business Correspondent model where the officer designated by the bank would be available with a lap top on predetermined day and time in a week. While the cash services would be offered by the Business Correspondent Agent, the bank officer would offer other services to be offered by the bank, undertake field verification and follow up the banking transactions.

The Government issued Strategy and Guidelines on Financial Inclusion in October, 2011, vide which it was, inter-alia, advised to banks to open bank branches by September 2012 in all habitations of 5,000 or more population in under banked districts and 10,000 or more population in other districts. As per reports received from the Convener Banks of State Level Bankers Committees (SLBCs), of the 3,905 bank branches to be opened, 739 bank branches have been opened by end of April, 2012.

Regional Rural Banks (RRBs) have also been advised to work out branch expansion plan such that there is an increase of 10% in bank branches in 2011-12 and also in 2012-13 over the respective previous years. As per provisional data, RRBs opened 914 branches during 2011-12.

Of the 71 unbanked blocks in the country, as on 31 March, 2011, with the persistent efforts of the Government, banking facilities have been provided in all unbanked blocks by March 31, 2012. As a next step it has been advised to cover all those blocks with Business Correspondents and Ultra Small Branch which have so far been covered by mobile banking only.
-PIB

IT-BPO, A Key Sector of Indian Economy

The year 2011-12 was marked by growing global uncertainties. Global recovery has stalled, growth prospects have dimmed and downside risks have escalated. By contrast, the Indian IT-BPO Industry (including hardware) continued to exhibit resilience. It weathered uncertainties in global business environment and reached a significant milestone in the year 2011-12 by aggregating revenue of US $ 101 billion, a growth of about 14.7 per cent over the previous year. Thus, the year 2011-12 is a landmark year for the IT-BPO Industry.

The Indian software and services export including BPO exports is estimated at US $ 68.7 billion in 2011-12, an increase of 16.4 per cent. The IT services exports is estimated to be US $ 39.8 billion, showing a growth of 18.8 per cent. BPO exports are estimated to grow to US $ 15.9 billion in 2011-12, a year-on-year growth of about 12 per cent. IT services contributed 58 per cent of total IT-BPO exports in 2011-12, followed by BPO at 23 per cent and Software products/engineering services at 19 per cent.

USA continues to drive IT-BPO exports growth. Growth is being driven by higher demand for IT services and support. Continental Europe and UK, the second largest markets for Indian IT-BPO exports are seeing their share decline in the last three years. Indian service providers have been aggressively growing business in the Asia-Pacific (APAC) market. Aimed at reducing their geographic dependency and spread currency risk, APAC is growing fastest at nearly 18 per cent; its share in total IT-BPO exports is expected to increase to nearly 8 per cent.

The IT-BPO market is being driven by demand across all key consumer segments. Notwithstanding the growth witnessed in the IT-BPO domestic segment, it accounts for a little over 21 per cent of overall industry revenues. India continued its dominant position as the leading sourcing market as compared to other emerging economies. Its share is global sourcing stood at 58 per cent in 2011.

The IT-BPO sector has become one of the key sectors for the Indian economy because of its economic impact. The sector is responsible for creating significant employment opportunities in the economy. Direct employment within the IT-BPO sector reached 2.77 million, with over 2,30,000 jobs being added in 2011-12.

The spectacular growth performance in the IT-BPO industry in the last decade has helped the industry contribute substantially to India’s GDP. In 2011-12, this sector’s contribution to GDP is estimated to be 7.5 per cent. The IT-BPO industry has played a key role in putting India on the world-map. This segment has enormous potential to grow in the year to come. By 2012-13, this would have developed to a potential to touch US $ 100 billion in revenues as compared to US $ 87.7 billion in 2011-12, a growth of about 14 per cent.
-PIB

NERAMAC – A Vibrant Agri-Marketing Organization of North East

North Eastern Regional Agricultural Marketing Corporation (NERAMAC) Ltd, is a Government Enterprise under the Ministry of Development of North Eastern Region (DoNER). The Company with an authorized capital of Rs 10.00 Cr and a paid up capital of only Rs 7.62 Cr has registered a sales turnover of Rs. 96 Cr during the just concluded fiscal year 2011-12 with a net profit of Rs 1 Cr.

NERAMAC is playing a significant role by intervening in the sourcing, procuring and marketing of cash crops like ginger, fresh pineapple, cashew nut, Kiwi fruits etc. from the farmers and growers of the North Eastern Region. Its role as a dynamic and vibrant marketing organization essentially to support farmers of North East has started showing visibility through its operations to sustain farmers’ interest in production by application of post harvest technology thereby arresting decline in prices arising from larger output of the farm produces and marketing.

It has also procured and marketed various other items such as turmeric, large cardamom, maize etc, input supplies like fertilizer, assorted seeds, planting materials, floriculture items etc. under the Horticulture Mission for North East & Hill States (HMNEHS) & National Horticulture Mission. It has tied up with reputed companies in the field of setting up of various Horticultural Projects like High-tech green house, tissue culture laboratory, supply of planting materials etc. besides its initiative in supporting tiny and small scale processors in marketing their end products. NERAMAC helped farmers in getting better price of their produce besides procurement of the same. The Corporation has initiated building linkages by tying up through MoU with different farmer’s Societies as well processed products manufacturers having FPO licenses. It has helped building confidence among farmers and producers for a better network of procurement through NERAMAC.

It has taken initiative in involving various stakeholder particularly private sector in the field of processing thereby playing a greater role to tap the market potential for Kiwi and Passion fruit. Linkage were initiated with Passion Fruit Growers Association of Manipur and for procurement of passion fruit from them to make end product with the help of private and women entrepreneurs and marketing them through NERAMAC.  Similiarly, Kiwi fruit was introduced  by sourcing them from Arunachal Pradesh by involving private entrepreneur group.

In order to support the large cardamom growers of Sikkim, NERAMAC has set up a Large Cardamom Auction Centre at Rongpo, Sikkim during the last fiscal. Large cardamom growers are getting immense benefit as it has given them edge in getting value for their produce. Traders from all over the country are coming and participating in this auction program which has given a fillip to the cardamom producers.

NERAMAC has also taken a lead in setting up a outlet at Siliguri Regulated market to make way for produces like oranges and other fresh produces. This has given a facelift to the farmers. Oranges from Wakro and Tezu of Arunachal Pradesh are coming to Assam.

The Company has hosted a series of programs in the North-East to scale up awareness among the budding agri-preneurs, inviting investment on food processing involving national institutes and organizations of repute and large business houses in agro- horticulture processing with the financial support of Ministry of Food Processing Industries & North Eastern Council.

It has organized North East Food Processing Expo, an exhibition for the fruit processors of North East followed with conference and buyers sellers meet at Guwahati during January 2012 where processors from all the North Eastern states participated. This initiative was organised for the first time with the financial support of the Ministry of DoNER.

NERAMAC in association with IIP, Mumbai, organised for the first time in the region,  INDPACK 2012 at Maniram Dewan Trade Centre, Guwahati to support the first generation entrepreneurs of the North East in food processing and value addition. Two food processing entrepreneurs from each state of North East was taken to INDPACK 2011 at Hyderabad to give them the knowledge and expertise in packaging with the support of North Eastern Council.

100 Orange farmers were taken to National Research Centre for Citrus at Nagpur, Maharastra for giving them exposure to better orange production technique & demonstration.

North East Connect program was organised to show case potential of north east at Delhi, Kolkata, Mumbai & Bengaluru seeking investment opportunities as well as create business opportunity for the naturally grown organic produces of North East.

For the first time, an initiative has been taken to set up kiosks at six Malls in the National Capital Region (NCR) Delhi to sell North East produces to the consumers of NCR Delhi. Outlets in the name N E Fresh are located at Shipra mall, EDM mall, Mahugana mall, Sab mall, Star City mall & TDI mall at NCR Delhi. This was followed with weeklong Mall festivals in the beginning.

-PIB