ECONOMY MARCH 2015

China kicks off Silk Road infrastructure project worth $79.8bn in Gansu province.

China has launched a massive Silk Road infrastructure project worth $79.8 billion in the northwest

province of Gansu as part of its ambitious Silk Road plan. These project will facilitate trade and people

exchanges between China and central Asian Countries.

Key facts

It will be six-year Silk Road development project. On its completion it is going to add more than 60,000

kilometres of road network including 4,070 km expressways.

Thus improving the connectivity of the existing transportation network. This project will also build 12

civilian airports in the next six years. Thus, expanding the air service reach to 82 per cent of the province‟s

population. Gansu province does not share its borders with any central Asian countries but it will be an

important part of the Silk Road Economic Belt.

About Silk Road projects

The Silk Road projects are part of China‟s ambitious Silk Route plan, which involves maze of roads and

ports connecting Asia, Europe and Africa. These projects aims to revive China‟s trade links especially its

declining exports besides globally enhancing its sphere of influence.

World’s first electric satellites successfully lifted off by SpaceX rocket

World‟s first electric satellites were successfully lifted off by a Space Exploration (SpaceX) Technologies

rocket from Cape Canaveral Air Force Station, United States. The rocket was carrying two all-electric

commercial satellites built by Boeing. The satellites are owned by the French satellite provider Eutelsat

and Asia Broadcast Satellite (ABS). Eutelsat‟s satellite is part of its 35-member commercial network. It

will provide services like mobile, internet, video and other communications services to expand its reach

into the Americas. While, ABS new satellite will serve its customers in Africa, Europe and the Middle East.

Features of electric satellites

These satellites are fitted with lightweight, all-electric engines rather than conventional chemical

propulsion systems. These electric engines allow satellites to produce electric propulsion in order to reach

and remain fixed in particular orbit. Electric propulsion from these satellites consumes less fuel compared

with satellite having chemical propulsion. Thus making satellites lighter in weight and further reducing

cost of launch.

Election Commission launches NERPAP throughout the country

Election Commission of India (ECI) has launched National Electoral Roll Purification and Authentication

Programme (NERPAP). Objective: To bring out a totally error-free and authenticated electoral roll

throughout the country.

Key facts about NERPAP

For the authentication purpose, Electoral Photo Identity Card (EPIC) data of electors will be linked with

Aadhar data.

It also focuses to improve the image quality of electors along with sorting issues like corrections of errors.

Facility to link Aadhar number will be provided to electors through sms, email, mobile application and

National Voters Service Portal using web services through ECI website.

Electors also can link their Aadhar number by making a call at 1950 to state call centres.

ECONOMY MARCH 2015

Under NERPAP, collection and feeding of Aadhar will also be done by Electoral Registration Officer. In

this regard special Camps will be organized, Voter Facilitation Centres, e-Seva centres and Citizen Service

Centres. While Booth Level Officers will conduct door-to-door surveys to collect the details.

Union Government and RBI sign agreement to keep inflation below 6%

Union Government and the Reserve Bank of India (RBI) have signed an agreement on Monetary Policy

Framework in order to move towards the RBI Governor Raghuram Rajan‟s view of inflation targeting.

Presently, Union Government and RBI give inflation estimates and do not set targets. But as per this

agreement government has set a target for RBI to bring down inflation below 6 per cent by January 2016.

4 per cent for financial year and all subsequent years with band of +/- 2 percent.

This agreement mentions that if RBI fails to meet the target, it will

Report to the government with the reasons for the failure to achieve the target.

Propose remedial actions to be taken.

Further estimate the time period within which the failed target would be achieved.

As per the agreement, this Monetary Policy Framework will be monitored by the RBI and it is binding on

Union Government to take proactive measures for price control. This agreement will put in place a

framework of a modern monetary policy to meet the challenges of an increasingly complex economy.

Background

The agreement comes in line with the recommendations of the RBI’s Urjit Patel committee on

inflation targeting aiming to smoothen the monetary policy. During the budget 2015-16 speech Finance

minister Arun Jaitley also had mentioned that government will amend the RBI Act to provide for a

Monetary Policy Committee and have a memorandum of understanding with the Reserve Bank.

How does inflation targeting work?

The central bank forecasts the future path of inflation and compares it with the target inflation rate

(the rate the government believes is appropriate for the economy). The difference between the forecast

and the target determines how much monetary policy has to be adjusted. An inflation target of zero is

not recommended because it would not allow real interest rates to fall sufficiently to stimulate overall

demand when a central bank is trying to boost the economy.

A major advantage of inflation targeting is that it combines elements of both “rules” and “discretion”

in monetary policy. This “constrained discretion” framework combines two distinct elements: a precise

numerical target for inflation in the medium term and a response to economic shocks in the short

term.

What is required?

Inflation targeting requires two things. The first is a central bank able to conduct monetary

policy with some degree of independence. No central bank can be entirely independent of

government influence, but it must be free in choosing the instruments to achieve the rate of inflation

that the government deems appropriate. Fiscal policy considerations cannot dictate monetary policy.

The second requirement is the willingness and ability of the monetary authorities not to

target other indicators, such as wages, the level of employment, or the exchange rate.

ECONOMY MARCH 2015

Not a panacea

Inflation targeting has been successfully practiced in a growing number of countries over the past 20

years, and many more countries are moving toward this framework. Over time, inflation targeting has

proven to be a flexible framework that has been resilient in changing circumstances, including during the

recent global financial crisis. Individual countries, however, must assess their economies to determine

whether inflation targeting is appropriate for them or if it can be tailored to suit their needs. For example,

in many open economies, the exchange rate plays a pivotal role in stabilizing output and inflation. In such

countries, policymakers must debate the appropriate role of the exchange rate and whether it should be

subordinated to the inflation objective.

NPCI links 15 crore bank accounts with Aadhaar

National Payments Corporation (NPCI) has successfully linked 15 crore Direct Benefit Transfer (DBT)

accounts with the Aadhaar numbers. With this achievement NPCI has moved a step closer to map its

target of linking all 17 crore DBT accounts with Aadhaar numbers by 30 June 2015. Under the linking

programme of DBT accounts with Aadhaar numbers, Government is seeking to bring all beneficiaries of

all government subsidies/benefit transfers under the programme in order to plug leakages and save cost.

Apart from this linking programme NPCI is also nodal agency for all retail payment systems under the

Pradhan Mantri Jan Dhan Yojana (PMJDY) which was launched in 2014 to push DBT and financial

inclusion.

About National Payments Corporation (NPCI)

NPCI is an umbrella body for all retail payments system in India. It operates under the aegis of Reserve

Bank of India (RBI) was incorporated in 2008 under the Companies Act.

Its main objective is to facilitate an affordable payment mechanism in order facilitate financial inclusion

and benefit the common man across the country. It also seeks to consolidate and integrate the multiple

systems with varying service levels into nation-wide uniform and standard business process for all retail

payment systems.

Indian Railways inks MoU with LIC for Rs 1.5 lakh crore investments in rail infrastructure

Indian Railways on 11 March 2015 inked an MoU with Life Insurance Corporation (LIC) to raise Rs 1.5

lakh crore for financing the development of its various commercially viable infrastructure projects.

The MoU was signed by Financial Commissioner (Railways) Rajalakshmi Ravikumar and LIC Chairman

SK Roy in presence of Union Finance Minister Arun Jaitley and the Minister of Railways Suresh Prabhu.

Under the MoU State-run insurance giant LIC will provide a Financial Assistance of Rs 1.5 lakh crore to

Indian Railways for developing infrastructure.

From the Financial Year 2015-16 the financial assistance will be made available by LIC for over a period of

5 years as part of its commercial decision.

The investment will be done in the form of bonds issued by various railway entities such as Indian

Railways Finance Corporation (IRFC). There will be a 5 year moratorium in interest and loan repayment.

The rate will be linked to 10-year benchmark plus 10 basis points. With the Financial Assistance from LIC,

the cash-strapped Railways will be able to augment its resources for speedier execution of projects.

ECONOMY MARCH 2015

Five sick PSUs to be closed down: Union Government

Union Government has announced that 5 sick public sector undertakings (PSUs) will be closed. It was

announced by Union Heavy Industries Minister Anant Geete while replying to a question in the Lok

Sabha. The 5 sick PSU that will be closed include HMT and its three units, Hindustan Shipyard.

Government also announced that while closing these PSUs, their employees will be provided with very

good VRS package. In the reply, the Minister also announced that there are total 65 units in the list of sick

PSUs as of March 31, 2014.

Government also has declared Air India and MTNL as sick PSU units as per the criteria after they have

incurred losses worth 50 per cent or more of their average net worth during past four years.

According to the loss figures tabled in Lok Sabha

Air India has accumulated losses of Rs 5,388 crore in 2013-14. Rs 5,490 crore in 2012-13 and Rs 7,559

crore in 2011-12 respectively.

MTNL had showed profit of Rs 7,820 crore in year 2013-14. But in the previous years it has incurred

losses of 5,321 crore rupees and 4,109 crore rupees.

Hindustan Shipyard has reported losses of Rs 859 crore, Rs 551 crore and Rs 462 crore in past 3 years.

India, Kyrgyzstan ink MoU for cooperation on textile, clothing

India and Kyrgyzstan on 17 March 2015 signed MoU to strengthen bilateral cooperation on textile and

clothing. The MoU was signed by Minister of State (MoS) for Textiles Santosh Kumar Gangwar and his

counterpart Minister of Energy and Industry of Kyrgyzstan Kubanychbek Turdubaev in New Delhi. T

he MoU seeks to strengthen bilateral cooperation between both nations in the three fields including

Textiles and Clothing, Silk and Sericulture and Fashion. The MoU also aims to achieve enhance

cooperation between both nations in Development of trade and economic & investment relations.

Collaboration in techno-commercial and joint trade missions. Investment cooperation. Mutual assistance

in R&D. Technical collaboration in the field of product development and manufacturing, testing and

certification. Apart from signing MoU, both nations also agreed to set up a joint working group (JWG) in

order to explore areas of cooperation within the scope of the MoU and the steps required to facilitate

bilateral trade and investment.

Trade Agreements

India's Current Engagements in RTAs

Association of South East Asian Nations (ASEAN) and India Free Trade Agreement (FTA)

negotiationss

India-Thailand Comprehensive Economic Cooperation Agreement (CECA) negotiations

Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Free

Trade Agreement (FTA) negotiations

India-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA) negotiations

India-SACU Preferential Trade Agreement (PTA) negotiations

Second Review of India-Singapore Comprehensive Economic Cooperation Agreement

ECONOMY MARCH 2015

Expension of India-Chile Preferential Trade Agreement (PTA)

India-MERCOSUR Preferential Trade Agreenent (PTA) Negotiations

India-EU Broad Based Trade and Investment Agreement (BTIA) negotiations

Brief on India-EFTA Broad based Trade and Investment Agreement (BTIA) negotiations

Global System of Trade Preferences (GSTP)

Asia Pacific Trade Agreement (APTA)

India -New Zealand Free Trade Agreement / Comprehensive Economic Cooperation Agreement

India-Canada Comprehensive Economic Partnership Agreement (CEPA)

India-Australia Comprehensive Economic Cooperation Agreement (CECA)

INVITING COMMENTS ON THE DRAFT GOLD MONETIZATION SCHEME

The Finance Minister in his budget speech for the Union Budget 2015 - 16 made the following

announcement:

"India is one of the largest consumers of gold in the world and imports as much as 800-1000 tonnes of

gold each year. Though stocks of gold in India are estimated to be over 20,000 tonnes, most of this gold is

neither traded, nor monetized. Keeping this in view, the government in Budget 2015-16 has announced

the Gold Monetization Scheme which will replace both the present Gold Deposit and Gold metal Loan

Schemes. The new scheme will allow the depositors of gold to earn interest in their metal accounts and the

jewellers to obtain loans in their metal account. Banks/other dealers would also be able to monetize this

gold".

Proposed Gold Monetisation Scheme will replace both the present Gold Deposit and Gold metal Loan Schemes. The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewelers to obtain loans in their metal account. Banks and other dealers would also be able to monetize this gold. Indian cold coin The Government also proposed to commence work on developing an Indian gold coin, which will carry the Ashok Chakra on its face. Such an Indian gold coin would help reduce the demand for coins minted outside India and also help to recycle the gold available in the country.

Union Government approves 17 Mega Food Parks for food processing across the country

Union Government has approved 17 mega food parks for food processing across the country. It was

announced by Union Cabinet Minister of Food Processing Harsimrat Kaur Badal. Out of these 17 food

parks, 7 parks have been allotted to state agencies whereas 10 to private players in 11 states.

Key facts These food parks will attract more investment in the concerned states and generate employment

opportunities. It will also benefit five lakh farmers who are suffering due to lack of storage and proper

transport system. These projects would help create infrastructure in rural areas in the line of Prime

Minister Narendra Modi‟s pet project Make in India.

About Mega Food Park Scheme

This scheme is based on cluster approach and on hub and spoke model.

The scheme aims at facilitating the establishment of a strong food processing industry in the country.

It will be backed by an efficient supply chain, which includes collection centres, central processing center

(CPC) and cold chain infrastructure.

The Ministry of Food Processing Industries (MOFPI) is a ministry of the Government of

ECONOMY MARCH 2015

India responsible for formulation and administration of the rules and regulations and laws relating to

food processing in India.

The subjects looked after by the Ministry are

Fruits and vegetable processing industry

Food grain milling industry like SOEI FOODS

Dairy products

Processing of poultry and eggs, meat and meat products

Fish processing

Bread, oilseeds, meals (edible), breakfast foods, malt extract, protein isolate, high protein food,

weaning food and extrude/other ready to eat food products.

Beer, including non-alcoholic beer

Alcoholic drinks from non-molasses base

Aerated waters / soft drinks and other processed foods

Specialized packaging for food processing industries

Technical assistance and advice to food processing industry

The Food Safety and Standards Authority of India (FSSAI)

has been established under Food Safety and Standards Act, 2006 which consolidates various acts & orders

that have hitherto handled food related issues in various Ministries and Departments. FSSAI has been

created for laying down science based standards for articles of food and to regulate their manufacture,

storage, distribution, sale and import to ensure availability of safe and wholesome food for human

consumption.

Spectrum auction fetches Rs.1.10 lakh crore to Union Government

The Union government has fetched about 1.10 lakh crore rupees after the auctioning of a telecom

spectrum.

The spectrum auction concluded on 25 March 2015 after 19 days and 115 rounds of rigorous bidding.

However the 11 percent airwaves were not sold in this auction. The process of auction was conducted for

800 MHz, 900 MHz, 1800 MHz and 2100 MHz spectrum covering both mobile telephony and broadband,

including 4th Generation (4G).

A total of 380.75 MHz of spectrum was put on sale in the premium 900 MHz, 1,800 MHz and 800 MHz

bands and 5 MHz of spectrum was put for bidding in the 2,100 MHz band which is used for 3G mobile

services across 17 out of total 22 telecom circles.

The spectrum auction included airwaves held by 9 licences of Idea Cellular, 6 permits of Bharti Airtel and

7 each of Reliance Telecom and Vodafone that were expiring in 2015-16. These auctioned airwaves mostly

included frequencies in 900 MHz band and 1800 MHz band.

The government also auctioned airwaves in 1800 MHz band that remained unsold in 2014, and 800 MHz

i.e. CDMA band frequencies that were left after sale in 2013. The Department of Telecommunication

(DoT) later will disclose details of the result and names of successful bidders after the Supreme Court‟s

permission as a case is pending in the court.

ECONOMY MARCH 2015

Union Government amends guidelines for financial support to PPP in infrastructure

Union Government on 31 March 2015 approved amendments to the Public Private Partnerships (PPP)

guidelines. The approved amendments seek to enhance financial support to projects in infrastructure

sector.

Decision in this regard was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by the

Prime Minister Narendra Modi.

Amendments approved

1. Change in the definition of a Private Sector Company in the guidelines for financial support to PPP in Infrastructure under the Viability Gap Funding (VGF) Scheme.

2. The definition of a Private Sector Company means a company which is not a Government Company.

3. In this case Government company is defined as any company in which more than 51 per cent of the paid-up share capital is held by the Union Government or State(s) Government or partly by Union Government and partly by State Government (s).

4. It also includes a company which is a subsidiary company of such a Government company.

This decision was taken to remove any ambiguity in interpretation of the term Private Sector Company in

order to align it with the definition of Government Company defined under Section 2 (45) of the

Companies Act, 2013.

9 agricultural products from north-east India accorded GI registration tag

Nine organic and exotic agricultural products from Northeast India were accorded geographical

indication (GI) registration tag.

GI tag will help to protect these exclusive special local crops and pave way for better branding and

marketing of these products both in domestic and international Market.

Geographical Indication (GI) accorded products are

1. Assam Karbi Anglong Ginger.

2. Assam Tezpur Litchi.

3. Meghalaya Khasi Mandarin.

4. Sikkim Large Cardamom.

5. Mizoram Bird Eye Chilly.

6. Manipur Kachai Lemon.

7. Tripura Queen Pineapple.

8. Arunachal Orange.

9. Nagaland Tree Tomato.

Union Government owned North Eastern Regional Agricultural Marketing Corporation Limited

(NERAMAC) had played important role in getting GI registry. North Eastern Council (NEC) provided the

financial support to this initiative.

About Geographical Indication (GI)

Geographical Indication is an insignia on products having a unique geographical origin and evolution over

centuries. It is a mark of authenticity and ensures that registered authorised users (or at least those

residing inside the geographic territory) are allowed to use the popular product name. In India GI

registration is governed by the Geographical Indications of goods (Registration and Protection) Act, 1999.

ECONOMY MARCH 2015

Darjeeling tea was the first product in India accorded with GI tag.

What is a Geographical Indication?

It is an indication It originates from a definite geographical territory. It is used to identify agricultural,

natural or manufactured goods The manufactured goods should be produced or processed or prepared in

that territory. It should have a special quality or reputation or other characteristics

Jurisdiction:

A Geographical Indications Registry with all India jurisdiction operates in Chennai, as per the

Geographical Indication of Goods (Registration and Protection) Act 1999. Under the Act, agricultural,

natural or manufactured goods originating or manufactured in the territory of a country, or a region or

locality in that territory, where a given quality, reputation or other characteristic of such goods is

essentially attributable to its geographical origin and in cases where such goods are manufactured goods,

one of the activities of either production or of processing or preparation of the goods concerned takes

place in such territory, region or locality, are registrable as Geographical Indications.

Horticulture:

Mysore Jasmine : Karnataka

Udupi Jasmine : Karnataka

Hadagali Jasmine : Karnataka

Coorg Orange : Karnataka

Mysore Betel leaf : Karnataka

Nanjanagud Banana : Karnataka

Incense Sticks: Mysore Agarbathi

Paintings: Mysore Traditional Paintings : Karnataka

Textiles & Textile Goods:

Pochampalli Ikat : Andhra Pradesh

Salem Fabric : Tamil Nadu

Chanderi Fabric : Madhya Pradesh

Solapur Chaddar : Maharashtra

Solapur Terry Towel : Maharashtra

Kotpad Handloom fabric : Orrissa

Mysore Silk : Karnataka

Kota Doria : Rajasthan

Kancheepuram Silk : Tamil Nadu

Kullu Shawl : Himachal Pradesh

Madurai Sungudi : Tamil Nadu

Orissa Ikat : Orissa

Srikalahasthi Kalamkari : Andhra Pradesh

Muga Silk : Assam

Ilkal Sarees : Karnataka

Nakshi Kantha : New Delhi

Navalgund Durries : Karnataka

Molakalmuru Sarees : Karnataka

ECONOMY MARCH 2015

Salem Silk : Tamil Nadu

Kovai Cora Cotton : Tamil Nadu

Arani Silk : Tamil Nadu

Bhavani Jamakkalam (carpet ) : Tamil Nadu

Wet Grinder: Coimbatore Wet Grinder.

Foreign Trade Policy 2015-2020 Unveiled

Two New Schemes – “Merchandise Exports From India Scheme” And “Services Exports

From India Scheme” Introduced

The new five year Foreign Trade Policy, 2015-20 provides a framework for increasing exports of goods

and services as well as generation of employment and increasing value addition in the country, in keeping

with the “Make in India” vision of Prime Minister. The focus of the new policy is to support both the

manufacturing and services sectors, with a special emphasis on improving the „ease of doing business‟.

Merchandise Exports from India Scheme (MEIS)

(a) Earlier there were 5 different schemes (Focus Product Scheme, Market Linked Focus Product

Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) for rewarding

merchandise exports with different kinds of duty scrips with varying conditions (sector specific or

actual user only) attached to their use. Now all these schemes have been merged into a single

scheme, namely Merchandise Export from India Scheme (MEIS) and there would be no

conditionality attached to the scrips issued under the scheme.

(b) Rewards for export of notified goods to notified markets under „Merchandise Exports 2 from

India Scheme (MEIS) shall be payable as percentage of realized FOB value (in free foreign

exchange). The debits towards basic customs duty in the transferable reward duty credit scrips

would also be allowed adjustment as duty drawback.

Service Exports from India Scheme (SEIS)

(a) Served From India Scheme (SFIS) has been replaced with Service Exports from India Scheme

(SEIS). SEIS shall apply to „Service Providers located in India‟ instead of „Indian Service

Providers‟. Thus SEIS provides for rewards to all Service providers of notified services, who are

providing services from India, regardless of the constitution or profile of the service provider.

(b) The rate of reward under SEIS would be based on net foreign exchange earned. The reward issued

as duty credit scrip, would no longer be with actual user condition and will no longer be restricted

to usage for specified types of goods but be freely transferable and usable for all types of goods

and service tax 3 debits on procurement of services / goods. Debits would be eligible for CENVAT

credit or drawback.

B. BOOST TO "MAKE IN INDIA"

Reduced Export Obligation (EO) for domestic procurement under EPCG scheme: Specific Export

Obligation under EPCG scheme, in case capital goods are procured from indigenous manufacturers,

which is currently 90% of the normal export obligation (6 times at the duty saved amount) has been

reduced to 75%, in order to promote domestic capital goods manufacturing industry.

ECONOMY MARCH 2015

Facilitating & Encouraging Export of Defence Exports

e-Commerce Exports -- (a) Goods falling in the category of handloom products, books / periodicals,

leather footwear, toys and customized fashion garments, having FOB value up to Rs.25000 per

consignment (finalized using eCommerce platform) shall be eligible for benefits under FTP.

Duty Exemption -- (a) Imports against Advance Authorization shall also be eligible for exemption from

Transitional Product Specific Safeguard Duty.

Additional Ports allowed for Export and import Calicut Airport, Kerala and Arakonam ICD, Tamil Nadu

have been notified as registered ports for import and export

Paramparagat Krishi Vikas Yojana

(Traditional Farming Improvement Programme) has been launched by Government of India to support

and promote organic farming and thereby improving soil health. This will encourage farmers to adopt

eco-friendly concept of cultivation and reduce their dependence on fertilizers and agricultural chemicals

to improve yields. Budget Allocation Government has made budgetary allocation of Rs. 300 Crores for the

same in the Union Budget 2015-16.

The Organic Farming Policy 2005 was a sound regulation to promote technically-endowed, economical,

environment-friendly, and socially acceptable use of natural resources in favour of organic agriculture. It

also laid emphasis on soil health and fertility maintenance.

Prime Minister to Launch Pradhan Mantri Suraksha Bima Yojana (PMSBY),

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana

(APY) on 9th May 2015 at Kolkata

RULES FOR THE PRADHAN MANTRI SURAKSHA BIMA YOJANA

DETAILS OF THE SCHEME: The scheme will be a one year cover, renewable from year to year, Accident

Insurance Scheme offering accidental death and disability cover for death or disability on account of an

accident. The scheme would be offered / administered through Public Sector General Insurance

Companies (PSGICs) and other General Insurance companies willing to offer the product on similar terms

with necessary approvals and tie up with Banks for this purpose.

Scope of coverage: All savings bank account holders in the age 18 to 70 years in participating banks will

be entitled to join. Enrollment Modality / Period: The cover shall be for the one year period stretching

from 1st June to 31st May for which option to join / pay by auto-debit from.

Eligibility Conditions: The savings bank account holders of the participating banks aged between 18

years (completed) and 70 years (age nearer birthday) who give their consent to join / enable auto-debit, as

per the above modality, will be enrolled into the scheme.

ECONOMY MARCH 2015

Benefits:

Premium: Rs.12/- per annum per member. The premium will be deducted from the account holder‟s

savings bank account through „auto debit‟ facility in one installment on or before 1 st June of each annual

coverage period under the scheme.

RULES FOR PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA DETAILS OF THE

SCHEME

The scheme will be a one year cover, renewable from year to year, Insurance Scheme offering life

insurance cover for death due to any reason. The scheme would be offered / administered through LIC

and other Life Insurance companies willing to offer the product on similar terms with necessary approvals

and tie ups with Banks for this purpose.

Scope of coverage: All savings bank account holders in the age 18 to 50 years in participating banks will be

entitled to join.

Enrolment Modality: The cover shall be for the one year period stretching from 1st June to 31st May for

which option to join / pay by auto-debit from the designated savings bank account on the prescribed

forms will be required to be given by 31st May of every year, with the exception as above for the initial

year.

Benefits: Rs.2 lakhs is payable on member‟s death due to any reason Premium: Rs.330/- per annum per

member.

Atal Pension Yojana (APY)

The GoI has therefore announced a new scheme called Atal Pension Yojana (APY)1 in 2015-16 budget. The

APY is focussed on all citizens in the unorganized sector. .

The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA)

through NPS architecture.

Under the APY, there is guaranteed minimum monthly pension for the subscribers ranging between Rs.

1000 and Rs. 5000 per month.

GoI will co-contribute to each eligible subscriber, for a period of 5 years who joins the scheme between the

period 1st June, 2015 to 31st December, 2015. The benefit of five years of government Co-contribution

under APY would not exceed 5 years for all subscribers including migrated Swavalamban beneficiaries.

Eligibility

APY is applicable to all citizen of India aged between 18-40 years.

ECONOMY MARCH 2015

Exit : On attaining the age of 60 years: The exit from APY is permitted at the age with 100% annuitisation

of pension wealth. On exit, pension would be available to the subscriber.

Exit Before the age of 60 Years: Exit before 60 years of age is not permitted however it is permitted

only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.

Green India

Target of renewable energy capacity revised to 175000 MW till 2022, comprising 100000 MW

Solar, 60000 MW Wind, 10000 MW Biomass and 5000 MW Small Hydro.

Skill India

Deen Dayal Upadhyay Gramin Kaushal Yojana to enhance the employability of rural youth.

According to Census 2011, India has 55 million potential workers between the ages of 15 and 35 years in

rural areas. At the same time, the world is expected to face a shortage of 57 million workers by 2020. This

presents a historic opportunity for India to transform its demographic surplus into a demographic

dividend. The Ministry of Rural Development implements DDU-GKY to drive this national agenda

for inclusive growth, by developing skills and productive capacity of the rural youth from poor families.

Implementation Model DDU-GKY follows a 3-tier implementation model. The DDU-GKY National Unit at MoRD functions as the policy-making, technical support and facilitation agency. The DDU-GKY State Missions provide implementation support; and the Project Implementing Agencies (PIAs) implement the programme through skilling and placement projects.

Training Requirements DDU-GKY funds a variety of skill training programs covering over 250 trades across a range of

sectors such as Retail, Hospitality , Health, Construction, Automotive, Leather, Electrical, Plumbing, Gems and Jewelry, to name a few. The only mandate is that skill training should be demand based and lead to placement of at least 75% of the trainees.

The trade specific skills are required to follow the curriculum and norms prescribed by specified

national agencies: the National Council for Vocational Training and Sector Skills Councils.

BUDGET ESTIMATES

Non-Plan expenditure estimates for the Financial Year are estimated at `13,12,200 crore.

1. Plan expenditure is estimated to be `4,65,277 crore, which is very near to the R.E. of 2014-15.

2. Total Expenditure has accordingly been estimated at `17,77,477 crore.

3. The requirements for expenditure on Defence, Internal Security and other necessary expenditures

are adequately provided.

4. Gross Tax receipts are estimated to be `14,49,490 crore.

5. Devolution to the States is estimated to be `5,23,958. Cr

6. Share of Central Government will be `9,19,842. Cr

7. Non Tax Revenues for the next fiscal are estimated to be `2,21,733 crore.

8. Fiscal deficit will be 3.9 per cent of GDP and Revenue Deficit will be 2.8 per cent of GDP.