Thursday, 14 August 2014

President’s address to the nation on the eve of India’s 68th Independence day.

Fellow citizens: 

On the eve of 67th anniversary of our Independence, I extend warm greetings to you and to all Indians around the world. I convey my special greetings to members of our armed forces, paramilitary forces and internal security forces. I also congratulate all our sportspersons, who have participated and won laurels in the recently-concluded Commonwealth Games held at Glasgow. 

Friends: 

1. Freedom is a celebration; independence is a challenge. In the 68th year of freedom, we have reaffirmed the power of our individual and collective liberties by electing through a remarkably peaceful electoral process, a stable government with a clear majority for a single party, after three decades. The increase in voter turnout to 66 per cent from the last election’s 58 per cent shows the vitality of our democracy. This achievement has given us an opportunity to take up the challenge of governance by reforming the policies, practices and systems of governance so that the enormous aspirations of our people can be fulfilled with vision, commitment, integrity, speed and administrative capability. 

2. Stagnant minds create immobile systems which become roadblocks to growth. India demands creative thinking in governance that enables fast-track development and ensures social harmony. The nation has to be placed above partisan impulses. The people come first. 

Friends: 

3. In a democracy, good governance is exercise of power for efficient and effective management of our economic and social resources for the well-being of the people. This power has to be exercised within the framework of the Constitution through the institutions of state. With the passage of time and changes in the eco-system, distortions do appear making some institutions dysfunctional. When one institution does not function in the manner expected of it, phenomenon of overreach sets in. While some new institutions might become necessary, the real solution lies in re-inventing and restoring the existing ones to serve the purpose of effective government. 

4. Good governance is critically dependent on rule of law, participatory decision-making, transparency, responsiveness, accountability, equity and inclusiveness. It calls for wider involvement of the civil society in the political process. It calls for deeper engagement of the youth with the institutions of democracy. It calls for quick dispensation of justice to the people. It calls for ethical and responsible behaviour from the media. 

5. A country of our size, heterogeneity and complexity calls for culture-specific governance models. It calls for cooperation in the exercise of power and assumption of responsibility, by all stakeholders. It calls for constructive partnership between the state and the citizen. It calls for taking a responsive administration to the door step of every hut and habitation in the land. 

Fellow Citizens: 

6. The decisive challenge of our times is to end the curse of poverty. The focus of our policies now has to move from alleviation of poverty to elimination of poverty. The difference is not mere semantics: alleviation is a process; elimination is a time-defined objective. In last six decades, the poverty ratio has declined from over 60 per cent to less than 30 per cent. Even then, nearly one-third of our population still lives below the poverty line. Poverty is not a mere statistic. Poverty has a face, which becomes unbearable when it scars the visage of a child. The poor cannot, and will not, wait for yet another generation to see the very essentials of life - food, shelter, education and employment - being denied to them. The benefits from economic development must percolate down to the poorest of the poor. 

7. In the last decade, our economy grew at an average rate of 7.6 per cent per year. Though the growth rate was subdued at below 5 per cent during the last two years, I sense renewed vigour and optimism in the air. Signs of revival are visible. Our external sector has strengthened. Fiscal consolidation measures are beginning to show results. Notwithstanding occasional spurts, inflation has started moderating. However, food prices still remain a matter of serious concern. Record food grains production last year helped agriculture sector to grow at a healthy 4.7 per cent. Employment has increased by an average of about 4 per cent per year in the last decade. Manufacturing sector is on the rebound. The stage is now set for our economy to move on a high growth trajectory of 7 to 8 per cent, which is essential to ensure the availability of adequate resources for equitable development. 

Fellow Citizens: 

8. Economy is the material part of development. Education is the essential part of it. A sound education system is the bedrock of an enlightened society. It is the bounden duty of our educational institutions to provide quality education and inculcate the core civilizational values of love for motherland; compassion for all; tolerance for pluralism; respect for women; performance of duty; honesty in life; self-restraint in conduct, responsibility in action and discipline in young minds. By the end of the Twelfth Five Year Plan, we would have achieved a literacy rate of eighty per cent. But would we be able to say that we have provided quality education and skills to our children to be good citizens and successful professionals? 

Fellow Citizens: 

9. Our thoughts are influenced by our environment. “Yadrishi Bhavana Yasya; Siddhir Bhavati Tadrishi”. It means, “Whatever are one’s thoughts, so will be the outcomes”. Clean environment breeds clean thoughts. Cleanliness is a mark of self-respect. Ancient travellers like Megasthenes in the 4th Century BC, Fa Hien in the 5th Century AD and Hiuen Tsang in the 7th Century AD, when they came to India, have written about the efficient administrative systems, with planned settlements and good urban infrastructure. What has gone wrong with us now? Why can’t we keep our environment free of filth? The Prime Minister`s call to honour the memory of Mahatma Gandhi on his 150th birth anniversary, by making India a clean country by 2019 is commendable, but it can be achieved only if each Indian converts this into a national mission. Every road, every path, every office, every home, every hut, every river, every stream, every particle in the air around us can be kept clean, if we but cared just a little. We must nurture nature, so that nature continues to nurture us. 

My fellow citizens: 

10. Though an ancient civilization, India is a modern nation with modern dreams. Intolerance and violence is a betrayal of the letter and spirit of democracy. Those who believe in the poison drip of inflammatory provocation do not understand India`s values or even its present political impulses. Indians know that progress, economic or social, is difficult without peace. This may be the appropriate moment to recall the great Shivaji`s letter to Aurangzeb when the latter imposed jizya. Shivaji told the emperor that Shah Jehan, Jehangir and Akbar could also have levied this tax "but they did not give place to bigotry in their hearts, as they considered all men, high and low, created by God to be examples of the nature of diverse creeds and temperaments". This 17th century epistle of Shivaji carries a message, which is universal. It must become a living testament that guides our behaviour today. 

11. We can least afford to forget this message at a time when an increasingly turbulent international environment has sparked off rising dangers in our region and beyond, some clearly visible, and some crawling out of the debris of unprecedented turmoil. Across parts of Asia and Africa, attempts are being made by radical militias to redraw the maps of nations to create a geography for theocratic ideology. India will feel the heat of blowback, particularly as it represents the values that reject extremism in all its manifestations. India is a beacon of democracy, equilibrium, inter-and-intra faith harmony. We must defend our secular fabric with vigour. Our security and foreign policies must combine the steel of strength with the velvet of diplomacy even as we persuade the like-minded as well as the hesitant to recognise the substantial dangers that breed within indifference. 

Fellow Citizens: 

12. Our Constitution is a consequence of our democratic culture, which reflects our ancient values. It pains me to note that this great national asset is becoming increasingly vulnerable to rash excess. Our right to freedom continues to flourish, and may that always be the case, but what about our duty to the people? I sometimes wonder: has our democracy become too noisy? Have we lost the art of contemplation and calm thinking? Is it not the time to restore the grandeur and glory of our institutions that have sustained and nourished our beautiful democracy? Should not Parliament again become the great hall of sombre thought and well-debated legislation? Should not our courts of law become temples of justice? This calls for collective action by all the stakeholders. 

13. A nation is very young at 68. India has the will, energy, intellect, values and unity to claim the 21st century. The vision to win the battle of freedom from poverty is set; the journey will seem formidable only to those without conviction. As an old saying goes, “Sidhir Bhavati Karmaja”, which means, “success is born of action”. 

14. Now is the time for action! 

Jai Hind



Source:- pib,nic.in 

Wednesday, 13 August 2014

Exim Bank India.

EXIM BANK - Export-Import Bank of India is the premier export finance institution in India.

-Established in 1982 under the Export-Import Bank of India Act 1981.
-Headquarters - Mumbai.

-Exim Bank - Provides financial assistance to exporters and importers with a view to promote country's international trade.
-Acts on business principles with due regard to public interest”
-A Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects, equipment, goods and services from India. 

-Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India.

-Exim Bank extends Lines of Credit to:

a) Foreign Governments or their nominated agencies such as central banks, state owned commercial banks and para-statal organizations;
b) National or regional development banks;
c) Overseas financial institutions;
d) Commercial banks abroad;
e) Other suitable overseas entities.

Sunday, 10 August 2014

SEZ :- Special Economic Zones- Designated areas in countries that possess special economic regulations that are different from other areas in the same country.


  • The creation of special economic zones by the host country is to attract foreign direct investment (FDI).
  •  Conducting business in a SEZ usually means that a company will receive tax incentives and the opportunity to pay lower tariffs. 
  • In Special Economic Zones business and trades laws that differ from the rest of the country. 


  • The aims of the zones include: 
         -increase trade, 
         -increase investment, 
         -job creation and 
         -effective administration.



  • While many countries have set up special economic zones, China has been the most successful in using SEZ to attract foreign capital. In fact, China has even declared an entire province (Hainan) to be an SEZ, which is quite distinct, as most SEZs are cities. 



  • The operating definition of an economic zone is determined individually by each country

Inflation and its measures




INFLATION:- It can be defined as the persistent rise in general price level. A country is said to be in inflationary pressure when there is  excess of demand for everything causing an overall rise in price


Control of inflation :-

-SUPPLY MANAGEMENT 

·         Government has to resort the open market sale of rice and wheat through the (FCI) Food Corporation of India. FCI keeps a buffer stock of food grains built through procurement and market purchase of these items. So when the prices of these items are subject to rise FCI enters the market as a seller to supplement market supplies and thus reduce pressure on prices.  
·         -The network of( PDS) Public Distribution System  and (FPS) Fair Price Shop should be strengthened so that essential goods are made available to the masses at reasonable prices.
·         -PDS ensures that even the weaker sections of society are guaranteed a certain minimum number of essential goods at subsidized prices.
·         -PDS under which essential commodities such as wheat, rice, sugar, kerosene, edible oil, etc, are made available to the people via FPS. Each FPS is envisaged to serve around two thousand persons.

-DEMAND MANAGEMENT

-In the realm of monetary policy CRR and raising of bank rate as well as selective credit control measures should be taken.

-CRR- Cash Reserve Ratio –Minimum ratio of the total deposits of the customers that each commercial bank has to maintain with the RBI, means banks don’t have access to that much amount for any commercial or economic activity.

-By raising CRR the RBI takes away more money from the banks and reduces the amount left with them for lending to public. Present CRR is 4%.


-Repo Rate- Rate at which RBI lends to commercial banks in the event of any shortfall of funds.

-During inflation RBI increases repo rate as this acts as disincentive for banks to borrow from RBI. The ultimately reduces the supply of money in the economy and thus helps in arresting inflation.
-Present Repo Rate is 8.00%



Reverse Repo Rate- Rate at which the RBI borrows money from the commercial banks within the country.
-An increase in the RRP will decrease the money supply in the economy and vice-versa other things remains constant.
-It means banks will get more incentives to park their funds with the RBI and have less money to lend, thereby decreasing the supply of money in the market.
-Present Reverse Repo Rate is 7.00%

-Among fiscal measures Government should economize the non-development expenditure and unproductive administrative

Price Policy in India.


Price movements are recorded by two sets of index numbers in India. These are WPI and CPI.


WPI - Wholesale Price Index.
    -It is the main measure of price level changes. It is a central measure of Inflation.
·         -It doesn’t include nontrade-able goods and also excludes services.
·         -It focuses on price of goods traded between corporations.
·         -It traces the wholesale prices as it name suggests.
·         -The purpose of WPI is to monitor price movements that reflect supply and demand in industry, manufacturing and construction.
·         -The base year for the current WPI is 2004-05.

 CPI – Consumer Price Index.
     -It is based on retail prices as the consumers have to actually pay.
·         -It is the measure of the average change over time in the prices paid by the consumers
·         -Since consumption is different for different for groups of people (like urban,  Rural, agricultural and industrial, etc ) so different CPI indices are computed.
·         -It focuses on price of goods bought by consumers.
·         -It traces the retail prices.

Causes of rising price in India:-

Demand-pull factors:-
  • Massive increase in Government expenditure.
  • Increase in money supply.
  • Growth of black money.
  • Sizeable increase in population.

Cost-push factors:-
  • Slow growth of agriculture and industry.
  • Increase in production crises.
  • Increases in cess duties.
  • Hike in petroleum prices.
  • Changes in the minimum support prices (MSP).


Saturday, 9 August 2014

Largest and Brightest full Moon of the year- Aug 10

Aug,10 will be treated to the largest and brightest full moon of the year.
An optical illusion known as “the Moon Illusion” makes the moon appear larger near the horizon, because of the Ponzo effect

Ponzo illusion :- It is a geometrical-optical illusion given by Italian psychologist Mario Ponzo. 
He suggested human mind judges an object's size based on its background. He showed this by drawing two identical lines across a pair of converging lines, similar to railway tracks. The upper line looks longer because we interpret the converging sides according to linear perspective as parallel lines receding into the distance.

Sky-watchers gazing at the full moon rising on the evening of Sunday, August 10, will be treated to the largest and brightest full moon of the year—also known as an extra-supermoon

Such tight timing won’t occur again until 2034

Try using tripods and remote timers to stabilize your shots. Also, a telephoto lens (200 mm and up) will allow you to zoom in on the lunar disk while getting a distant foreground object to appear larger in the same frame.
And if you miss this week’s lunacy, remember to mark your calendar for September 9, for your next chance to catch the so-called supermoon..

Thursday, 7 August 2014

Cabinet Approved Juvenile Justice Bill 2014

Cabinet approved Juvenile Justice (Care and Protection of Children) Bill 2014.
It includes lowering the juvenile age to 16 so that those in the 16-18 age group can be tried as adults in cases of heinous crimes.
 Read more  : http://www.hindustantimes.com/india-news/cabinet-approves-amendments-to-juvenile-justice-act/article1-1249009.aspx

Himachal Pradesh became India’s first state to have a hi-tech Legislative Assembly with e-Vidhan.

Himachal Pradesh became India’s first state to have a hi-tech Legislative Assembly with e-Vidhan.

SBL, a Kochi-based IT company is the mastermind behind the project. The company had earlier digitised the entire proceedings of Kerala Legislative Assembly since 1888.

A secure end-to-end solution that will make the proceedings and processes a lot more efficient while reducing cost and making the house paperless.

The system  fully automates the day-to-day functioning of the entire legislative assembly and will radically change how the legislation process works in India in the near future.

The Assembly Session proceedings will be completely paperless and introducing bills and laying various reports and answers to questions inside the House will be handled through touch-screen based computer systems deployed for each legislative member inside the House.

The new system increases the people participation in the legislation process by automating the process of Assembly Bills and allowing to seek people’s suggestions on bills online through a secure web interface. 

The system also ensures that the proceedings inside the House will be instantly available for the public at the end of every session by digitising and publishing verbatim record of house/committee Proceedings.

Project was developed as a joint venture between the HP State Legislative Assembly, National Informatics Centre Services Incorporated (NICSI) and the Government of HP.

NICSI selected SBL as associatepPartner for the project development and implementation of the entire system.

Wednesday, 6 August 2014

Eminent cartoonist Pran died.

Eminent cartoonist Pran( Pran Kumar Sharma)died at 75.
Pran's comic characters Chacha Chaudhury, Sabu, Shrimatiji, Pinki, Billoo, Raman and Channi Chachi will remain children & family favpurite

The Finance Commission


The Finance Commission of India came into existence in 1951. It was established under Article 280 of the Indian Constitution by the President of India. It was formed to define the financial relations between the centre and the state. The Finance Commission Act of 1951 states the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission.
The commission is appointed every five years and consists of a chairman and four other members. Since the institution of the first finance commission, stark changes have occurred in the Indian economy causing changes in the macroeconomic scenario. This has led to major changes in the Finance Commission’s recommendations over the years. Till date, Thirteen Finance Commissions have submitted their reports.
The First Finance Commission was appointed by the president on 20 November 1951, which was chaired by Mr. K.C. Neogy for the period 1952-1957. 13th Finance Commission is established in the year 2007 headed by Vijay kelkar for the period 2010-15. The Operational duration for the finance commission is five years.
The Thirteenth Finance Commission recommendations relating to urban local bodies inter alia aim at strengthening municipal finances and urban governance in India. The 13th FC, making a departure from the previous Finance Commissions, divided the grants to be distributed to the states for local bodies into two parts – general basic grant and general performance grant. The performance grant can be accessed only if the state complies with nine conditions, which in other words can be called reforms.

Functions of the Finance Commission:

  • Distribution of net proceeds of taxes between Centre and the States, to be divided as per their respective contributions to the taxes.
  • Determine factors governing Grants-in Aid to the states and the magnitude of the same.
  • To make recommendations to president as to the measures needed to augment the Consolidated Fund of a State to supplement the resources of the panchayats and municipalities in the state on the basis of the recommendations made by the Finance Commission of the state.
The President will constitute a Finance Commission within two years from the commencement of the Constitution and thereafter at the end of every fifth year or earlier, as the deemed necessary by him/her, which shall include a chairman and four other members.
The Commission is constituted to make recommendations to the president about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same amongst the States themselves. It is also under the ambit of the Finance Commission to define the financial relations between the Union and the States. They also deal with devolution of non-plan revenue resources.
The 14 Finance Commission would suggest measures for maintaining a stable and sustainable fiscal environment consistent with equitable growth.
source : ias.org.in

Global Warming



Global warming is the unequivocal and continuing rise in the average temperature of Earth’s climate system. Since 1971, 90% of the warming has occurred in the oceans. “Global warming” is also used to refer to increases in average temperature of the air and sea at Earth’s surface.
The IPCC stated that the largest driver of global warming is carbon dioxide (CO2) emissions from fossil fuel combustion, cement production, and land use changes such as deforestation.
Warming is expected to be strongest in the Arctic, with the continuing retreat of glaciers, permafrost and sea ice. Other likely effects of the warming include more frequent extreme weather events including heat waves, droughts and heavy rainfall; ocean acidification; and species extinctions due to shifting temperature regimes. Effects significant to humans include the threat to food security from decreasing crop yields and the loss of habitat from inundation.
Human influence has been detected in warming of the atmosphere and the ocean, in changes in the global water cycle, in reductions in snow and ice, in global mean sea level rise, and in changes in some climate extremes.
The United Nations Framework Convention on Climate Change (UNFCCC), whose ultimate objective is to prevent dangerous anthropogenic (human-induced) climate change. Parties to the UNFCCC have adopted a range of policies designed to reduce greenhouse gas emissions and to assist in adaptation to global warming. Parties to the UNFCCC have agreed that deep cuts in emissions are required, and that future global warming should be limited to below 2.0 °C (3.6 °F) relative to the pre-industrial level. Reports published in 2011 by the United Nations Environment Programme and the International Energy Agency suggest that efforts as of the early 21st century to reduce emissions may be inadequate to meet the UNFCCC’s 2 °C target.
Depletion of the ozone layer by chemical refrigerants has also resulted in a strong cooling effect in the stratosphere. If the sun were responsible for observed warming, warming of both the troposphere and stratosphere would be expected. The main negative feedback is the energy which the Earth’s surface radiates into space as infrared radiation.
Climate change could result in global, large-scale changes in natural and social systems. Two examples are ocean acidification caused by increased atmospheric concentrations of carbon dioxide, and the long-term melting of ice sheets, which contributes to sea level rise.

Global Warming Impacts

Rising Seas, Changes in rainfall patterns, Increased likelihood of extreme events, Melting of the ice caps, Widespread vanishing of animal populations, Spread of disease, Bleaching of Coral Reefs due to warming seas and acidification due to carbonic acid formation, Loss of Plankton due to warming seas.
Soource: ias.org.in

THE NARASIMHAM COMMITTEE


The Finance Ministry of Government of India (GOI) set up various committees with the task of analyzing India’s banking sector and recommending legislation and regulations to make it more effective, competitive and efficient. Two such expert Committees were set up under the chairmanship of M. Narasimham. They submitted their recommendations in the 1990s in reports widely known as the Narasimham Committee-I (1991) report and the Narasimham Committee-II (1998) Report. These recommendations not only helped unleash the potential of banking in India, they are also recognized as a factor towards minimizing the impact of global financial crisis starting in 2007.
The purpose of the Narasimham-I Committee was to study all aspects relating to the structure, organization, functions and procedures of the financial systems and to recommend improvements in their efficiency and productivity. The Narasimham-II Committee was tasked with the progress review of the implementation of the banking reforms since 1992 with the aim of further strengthening the financial institutions of India. It focused on issues like size of banks and capital Adequacy ratio.
Narasimham Committee –I was formed in 1991 and Narasimham Committee –II was formed in 1998 and both were related to Banking Sector Reforms.
The purpose of the Narasimham-I Committee was to study all aspects relating to the structure, organisation, functions and procedures of the financial systems and to recommend improvements in their efficiency and productivity. The Committee submitted its report to the Finance Minister in November 1991 which was tabled in Parliament on 17 December 1991.
The Narasimham-II Committee was tasked with the progress review of the implementation of the banking reforms since 1992 with the aim of further strengthening the financial institutions of India. It focused on issues like size of banks and capital adequacy ratio among other things. M. Narasimham, Chairman, submitted the report of the Committee on Banking Sector Reforms (Committee-II) to the Finance Minister Yashwant Sinha in April 1998.
Problems Identified by the Narasimham Committee are Directed Investment Programme, Directed Credit Programme, Interest Rate Structure.
The Narasimham Committee was set up in order to study the problems of the Indian financial system and to suggest some recommendations for improvement in the efficiency and productivity of the financial institution. They are:
Reduction in the SLR and CRR, Phasing out Directed Credit Programme, Interest Rate Determination, Structural Reorganizations of the Banking sector, Establishment of the ARF Tribunal, Removal of Dual control, Banking Autonomy,
In 1998 the government appointed yet another committee under the chairmanship of Mr. Narasimham. It is better known as the Banking Sector Committee. It was told to review the banking reform progress and design a programme for further strengthening the financial system of India. The committee focused on various areas such as capital adequacy Ratio, bank mergers, bank legislation, Strengthening Banks in India, Narrow Banking etc

Source: ias.org.in

Monday, 4 August 2014

PM's Nepal Visit - Some Highlights

-Focus on 4Cs: Cooperation. Connectivity. Culture. Constitution

-India will give Nepal a one billion dollar line of credit. This will be in addition to any existing lines of credit. 

-Pancheswor Development Authority will be set up and DPR finalized in one year

-India and Nepal have agreed to conclude Power Trading Agreement in 45 days. 

-India will provide assistance for construction of a motorable bridge over the Mahakali River. 

-India will expedite construction of postal roads and feeder roads to the Terai. 

-Prime Minister announced a gift of 2500 kg of sandalwood to the Pashupatinath Temple. Work on a Dharamshala to be set up by Pashupatinath Development Authority will commence soon with Indian assistance. 

-Renovation and restoration of the Complex will be done using expertise of Archaeological Survey of India. India will provide Rs. 25 crore for the same. 

-India will offer assistance for development of Janakpur-Lumbini, including Lumbini as part of Buddhist circuit. 

-Scholarships for Nepali students increased from 180 to 250. 

-Joint Working Group on Agriculture will meet quickly. India will offer assistance in soil testing. 

-Nepal gave an assurance that Nepali soil will not be used for anything inimicable to Indian interests. 

-During his meeting with Nepali leaders from across the political spectrum, Prime Minister Shri Narendra Modi urged them - dal ke hit me mat socho, desh ke hit mein socho - Think in terms of the nation`s benefit, not the party`s benefit. 

Sunday, 3 August 2014

THE INTERNATIONAL ATOMIC ENERGY AGENCY (IAEA)



The International Atomic Energy Agency (IAEA) is an international organization that seeks to promote the peaceful use of nuclear energy, and to inhibit its use for any military purpose, including nuclear weapons. The IAEA was established as an autonomous organization on 29 July 1957. Though established independently of the United Nations through its own international treaty, the IAEA Statute, the IAEA reports to both the United Nations General Assembly and Security Council.
The IAEA has its headquarters in Vienna, Austria. The IAEA has two “Regional Safeguards Offices” which are located in Toronto, Canada, and in Tokyo, Japan. The IAEA also has two liaison offices which are located in New York City, United States, and in Geneva, Switzerland. In addition, the IAEA has three laboratories located in Vienna and Seibersdorf, Austria, and in Monaco.
The IAEA serves as an intergovernmental forum for scientific and technical cooperation in the peaceful use of nuclear technology and nuclear power worldwide. The programs of the IAEA encourage the development of the peaceful applications of nuclear technology, provide international safeguards against misuse of nuclear technology and nuclear materials, and promote nuclear safety (including radiation protection) and nuclear security standards and their implementation.
The IAEA and its former Director General, Mohamed ElBaradei, were jointly awarded the Nobel Peace Prize on 7 October 2005. The IAEA’s current Director General is Yukiya Amano.
In 1953, the President of the United States, Dwight D. Eisenhower, proposed the creation of an international body to both regulate and promote the peaceful use of atomic power (nuclear power), in his Atoms for Peace address to the UN General Assembly.
Three main pillars or areas of work underpin the IAEA’s mission: Safety and Security; Science and Technology; and Safeguards and Verification.

The IAEA is generally described as having three missions:

  • Peaceful uses: Promoting the peaceful uses of nuclear energy by its member states,
  • Safeguards: Implementing safeguards to verify that nuclear energy is not used for military purposes,
  • Nuclear safety: Promoting high standards for nuclear safety.
The IAEA has 162 member states. IAEA programmes and budgets are set through decisions of its policymaking bodies – the 35-member Board of Governors and the General Conference of all Member States. Reports on IAEA activities are submitted periodically or as cases warrant to the UN Security Council and UN General Assembly.
The IAEA reports annually to the UN General Assembly and, when appropriate, to the Security Council regarding non-compliance by States with their safeguards obligations as well as on matters relating to international peace and security.

THE FINANCE COMMISSION


The Finance Commission of India came into existence in 1951. It was established under Article 280 of the Indian Constitution by the President of India. It was formed to define the financial relations between the centre and the state. The Finance Commission Act of 1951 states the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission.
The commission is appointed every five years and consists of a chairman and four other members. Since the institution of the first finance commission, stark changes have occurred in the Indian economy causing changes in the macroeconomic scenario. This has led to major changes in the Finance Commission’s recommendations over the years. Till date, Thirteen Finance Commissions have submitted their reports.
The First Finance Commission was appointed by the president on 20 November 1951, which was chaired by Mr. K.C. Neogy for the period 1952-1957. 13th Finance Commission is established in the year 2007 headed by Vijay kelkar for the period 2010-15. The Operational duration for the finance commission is five years.
The Thirteenth Finance Commission recommendations relating to urban local bodies inter alia aim at strengthening municipal finances and urban governance in India. The 13th FC, making a departure from the previous Finance Commissions, divided the grants to be distributed to the states for local bodies into two parts – general basic grant and general performance grant. The performance grant can be accessed only if the state complies with nine conditions, which in other words can be called reforms.

Functions of the Finance Commission:

  • Distribution of net proceeds of taxes between Centre and the States, to be divided as per their respective contributions to the taxes.
  • Determine factors governing Grants-in Aid to the states and the magnitude of the same.
  • To make recommendations to president as to the measures needed to augment the Consolidated Fund of a State to supplement the resources of the panchayats and municipalities in the state on the basis of the recommendations made by the Finance Commission of the state.
The President will constitute a Finance Commission within two years from the commencement of the Constitution and thereafter at the end of every fifth year or earlier, as the deemed necessary by him/her, which shall include a chairman and four other members.
The Commission is constituted to make recommendations to the president about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same amongst the States themselves. It is also under the ambit of the Finance Commission to define the financial relations between the Union and the States. They also deal with devolution of non-plan revenue resources.
The 14 Finance Commission would suggest measures for maintaining a stable and sustainable fiscal environment consistent with equitable growth.
Source: ias.org.in

Friday, 1 August 2014

Discount and Finance House of India (DFHI)

DFHI is the apex body in the Indian money market.

It was set up in 1988 by RBI jointly with public sector banks and all India institutions to develop money market and to provide liquidity to money market. 

Its establishment is a major step towards developing a secondary market for money instruments.

The objective is to ensure that short-term surplus and deficits of these institutions are equilibrated at market-re­lated rates through inter-bank transactions and various money market instruments.

DFHI deals in the following instruments/products:
  1. Treasury Bills
  2. Dated Government Securities
  3. Certificates of Deposit
  4. Commercial Papers
  5. Call (overnight) Money
  6. Notice Money
  7. Term Money
  8. Derivative Usance Promissory Notes of Commercial Banks
  9. Interest Rate Swaps/Forward Rate Agreements. 

BranchesDFHI opened its branches at Ahmedabad, Bangalore, Calcutta, Chennai, New Delhi and very recently at Hyderabad with a view to catering to the requirements of the small and medium sized institutions operating at these centres and at the same time integrating the markets at these regional centres with main money market at Mumbai.

TREASURY BILLS

Treasury bills are the instruments of the short term borrowing by the State/Central Government.

They are promissory notes issued at discount and for a fixed period. These were first issued in India in 1917. 

Objectives
 
These are issued to raise funds for meeting expenditure needs and also provide outlet for parking temporary surplus funds by investors. 


Investors 
Treasury bills can be purchased by any one (including individuals) except State govt. These are issued by RBI and sold through fortnightly or monthly auctions at varying discount rate depending upon the bids. 


Denomination
 

Minimum amount of face value Rs.1 lac and in multiples there of. There is no specific amount/limit on the extent to which these can be issued or purchased. 


Maturity : 91 days and 364 days. 

Rate of interest
 
Market determined, based on demand for and supply of funds in the money market. 


Other features
 
• These are highly liquid and safe investment giving attractive yield. 
• Approved assets for SLR purposes and DFHI is the market maker in these instruments and provide (daily) two way quotes to assure liquidity. 
• RBI sells treasury bills on auction basis (to bidders quoting above the cut-off price fixed by RBI) every fortnight by calling bids from banks, State Govt. and other specified bodies.