Friday, 15 February 2019

GENERAL UPDATES 15.02.2019





RBI GOVERNOR SHAKTIKANTA DAS RULES OUT ASSET QUALITY REVIEW OF NBFCS

Reserve Bank of India (RBI) Governor Shaktikanta Das shrugged off liquidity concerns pertaining to non-banking financial companies (NBFCs) and ruled out an asset quality review in the immediate future, saying such a move might not be well-received by the market. Das told a group of 60-70 foreign portfolio investors (FPIs) during a meeting in Hong Kong on Tuesday that the RBI was prepared to step in to ensure that the liquidity needs of NBFCs were duly met, said sources in the know. He said the quantum of non-performing assets (NPAs) had dipped significantly in the past one year and that the worst seemed to be over for the banking sector. FPIs in the meeting included asset managers such as Temple­ton, Fidelity and Blackrock, as well as a few hedge funds and distressed asset investors. The governor justified the recent policy rate cut, citing low inflation, among other things, and said the central bank would not shy away from more cuts provided data supported such action Annual retail inflation in January rose 2.05 per cent, its slowest pace since June 2017, showed the data put out by the government on Tuesday. Similarly, wholesale price inflation cooled to 2.76 per cent in January from 3.8 per cent in the previous month. Das also apprised the investors about the country’s key economic parameters such as gross domestic product (GDP) growth, inflation, fiscal deficit, and current account deficit, while expressing confidence that India had the potential to get back on the 8 per cent growth trajectory. The governor is expected to meet the heads of banks and NBFCs again in the coming weeks, said sources. Das also discussed the current regulations and requirements for investment in fixed income for FPIs.
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RBI FINES 3 BANKS

The Reserve Bank of India has imposed a monetary penalty of 1.50 crore on Oriental Bank of Commerce and 1 crore each on Bank of India and Punjab National Bank. The penalty has been imposed on the banks for non-compliance with various directions issued on monitoring of end use of funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring of accounts. In the case of all these three banks, the RBI, in a statement, said: These penalties have been imposed in exercise of powers vested in RBI under the provisions of the Banking Regulation Act, 1949, taking into account failure of the above banks to adhere to the aforesaid directions issued by RBI. This action is based on deficiencies in regulatory compliance, and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.
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SMES NEED GREATER INSTITUTIONAL FRAMEWORK TO BOOST ACCESS TO CREDIT

For about 48 million small and medium enterprises (SMEs) operating in India, continuous investment for enhancing their technology is a pre-requisite for supporting their sustainability and scaling up plans. To do so SMEs need access to risk capital to deploy state-of-the-art technology through means of technology acquisitions. This does not require any tax benefits or subsidies. Instead, the need of the hour is liberalization of policies relating to off-balance sheet funds to be established by existing institutions to enable SMEs to access financing for technology acquisitions. In the European Union (EU), there are around 23 million SMEs, and these are the true backbone of its economy. The crux of their success is that most European SMEs continuously invest in new technologies, innovate themselves, rapidly adapt themselves to changing business environment, and thus they form the backbone of all large manufacturing businesses. The technology platforms and R&D centres of European institutions offer technical and scientific support at negligible costs. This vital infrastructural support is woefully inadequate in India. Foreign businesses are rapidly setting up manufacturing facilities in India, to address the growing needs of the Indian market and also to meet their offshoring manufacturing requirements. Proof of the pudding lies in the fact of a rapid rise in FDI, which rose from $24 billion (FY2014) to a projected of $55 billion in FY2019. Most of the large foreign companies that have set up or are setting up manufacturing facilities in India are seeking their home country supply chain businesses to join them in the manufacturing process in India. The foreign supply chain companies, which are SMEs, do not have the bandwidth to go solo to establish an SME manufacturing unit in India. They need to establish joint ventures with Indian counterparts. This is the core of the opportunity space for the Indian SMEs in the near future. The Indian SMEs are rising to this opportunity space, but the challenge they are facing is largely about financing the risk capital required for collaborations with a European or any other foreign company. Alternate funding routes of venture capital (VC) or PE funding is not easily obtainable for these fledgling businesses operating on wafer-thin margins and limited capability of the entrepreneurs to bring in equity capital. Creating an institutional framework for SMEs to raise equity or mezzanine financing, perhaps under bodies like Invest India or SIDBI, can help them solve the challenge of meeting their needs of technology funding. Mezzanine capital works best for such young companies that are 3-5 years from the startup stage but their earnings books are not resilient enough yet to support their growth or technology upgradation projects.
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IS CASH REALLY BACK AFTER DEMONETISATION? NO

The debate on merits of demonetisation continues with recent data showing an increase in the total cash in circulation (CIC) in the economy, compared to pre-demonetisation levels, raising questions on the resurgence of informal sector. However, currency circulation at Rs 20.4 lakh crore is still short of trend by at least Rs 1.5 lakh crore, SBI said in its Ecowrap research report. Thus, any argument of cash coming back aggressively into the system and financing informal activities is not entirely correct, Soumya Kanti Ghosh said in the report. The study rather points out towards a state of paradox, where even though currency circulation has expanded, income velocity of money has shown a sharp plunge. This decline, in the rate of exchange of money from one transaction to another, indicates the inadequate supply of money in the system. Lower income velocity of money in larger and developed states indicates economic activity is indeed slowing down, the report said. The report has further highlighted the distress in rural economy, which is also apparent from the latest data on Consumer Price Index (CPI) inflation and Wholesale Price Index (WPI) inflation, and falling bank credit. Thus any meaningful pick up in food and even manufacturing inflation is still at a distance, the report said. A probable reason for this paradox could be the dramatic change in demand for cash more than two years after re-monetisation. In FY17 when re-monetization was achieved, there was no 200 rupee denomination. However in FY18 the pace of circulating 200 denomination has increased manifold, as has been the case with notes of smaller denomination. This may have altered the demand for smaller denomination notes in a larger way to possibly substitute for the currency of larger denominations (Rs 2000 rupee notes are not getting printed as per RBI), said the report. Hence, using currency in circulation as a leading indicator of heightened economic activity, specifically the narrative of large cash usage in informal economy is erroneous, according to the SBI report.
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GROWTH LIKELY TO REACH 7.5 PER CENT NEXT FISCAL: CHIEF ECONOMIC ADVISER

The economic growth is likely to accelerate to 7.5 per cent in 2019-20, from 7.2 per cent projected for the current fiscal, K V Subramanian has said. We have done the projections. All the external agencies and internally our estimates are also 7.5 per cent (2019-20). The nominal rate we are expecting is 11.5 per cent and inflation of about 4 per cent, he told. The Reserve Bank of India, in its latest monetary policy review released last week, too projected an economic growth rate of 7.4 per cent for the next fiscal. Talking about average growth in the last four years, he said the GDP growth rate has been 7.3 per cent, highest across all government since liberalisation. This growth rate has been achieved amidst very low inflation. Prior to 2014, the average inflation was in excess of 10 per cent he said, adding the significant reduction in inflation can be attributed to setting up of Monetary Policy framework that mandates the RBI to keep it within a particular band. Monetary Policy Committee, the interest rate setting body headed by the RBI Governor, has been given objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. We are the fastest growing major economy in the world with an annual average GDP growth during last five years higher than the growth achieved by any government since economic reforms began in 1991, he had said. On fiscal deficit, Subramanian said, it has been secularly coming down and India is on the glide path to achieving the target set under the FRBM (Fiscal Responsibility and Budget Management) Act. This fiscal prudence has been achieved despite greater devolution to states. So as part to 14th Finance Commission, 42 per cent is devolved to states from earlier 32 per cent, he said.
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DATA LOCALIZATION MAY BE KEY FOCUS AREA OF INDIA'S DRAFT E-COMMERCE POLICY

Data localization will be one of the major focus areas of the new draft e-commerce policy that is expected to be put out by the department for promotion of industry and internal trade (DPIIT) as early as next week, said two people familiar with the matter, requesting anonymity. The draft of the policy is ready, just has to go through the final approval, said the first person cited above. This draft, which is expected to stress on data localization, will be open to public consultation.
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ARUN JAITLEY TO RESUME CHARGE AS FINANCE MINISTER, PRESIDENT CONFIRMS APPOINTMENT

President Ram Nath Kovind, as advised by Prime Minister Narendra Modi, has directed that the Finance and Corporate Affairs portfolios be assigned to Union minister Arun Jaitley, a Rashtrapati Bhavan spokesperson said on Friday. He attended a meeting of the Cabinet Committee on Security to discuss the Pulwama attack in which at least 37 CRPF personnel were killed.
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GOVERNMENT HIKES MINIMUM SELLING PRICE OF SUGAR BY RS 2/KG

Concerned over mounting cane arrears ahead of Lok Sabha polls, the government Thursday hiked the minimum selling price of sugar by Rs 2 per kg to Rs 31 to help millers clear farmers' dues. The minimum selling price (MSP) is the rate below which the mills cannot sell sugar in the open market to wholesalers and bulk consumers like beverage and biscuit makers. We have increased the minimum selling price of sugar from Rs 29 per kg to Rs 31 per kg. This will help millers to make the payment to sugarcane growers, Ram Vilas Paswan told. Industry body ISMA had recently said cane arrears stood at around Rs 20,000 crore at the end of January.
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GOVT'S PUBLICITY BILL: RS 2,374 CR ON ELECTRONIC MEDIA, RS 670 CR ON OUTDOOR PUBLICITY

The Central government has spent Rs 2,374 crore on its publicity in electronic media and Rs 670 crore on outdoor publicity in the last five years, according to an RTI reply by the Bureau of Outreach and Communication under the Ministry of Information and Broadcasting. Giving a break up of expenditure on electronic media, including social media platforms, television and radio, it said Rs 470.39 crore was spent in 2014-15, Rs 541.99 crore in 2015-16 and Rs 613.78 crore during 2016-17. The sum was Rs 474.76 crore for 2017-18,and Rs 273.54 crore from April 2018 to December 2018. It added up to Rs 2,374.46 crore being spent on electronic media between April 2014 and December 2018, the Bureau said in reply to a Right to Information query by bureaucrat Sanjiv Chaturvedi. The expenditure was done on All India Radio, DD National, internet, production, radio, SMS, theatre, TV and on miscellaneous heads among others, the RTI reply said. A sum of nearly Rs 670 crore was spent on outdoor publicity during 2014 and November 26, 2018, the Bureau said without specifying details of what constituted outdoor publicity. Of this, Rs 81.27 crore was spent in 2014-15, Rs 118.51 crore during 2015-16, Rs 186.37 crore in 2016-17 and Rs 208.54 crore during 2017-18, the RTI reply said. A total of Rs 75.08 crore has been spent on outdoor publicity during April 2018 and November 26, 2018, it said. In case of outdoor publicity, the Bureau of Outreach and Communication also gave details of expenditure since 2009-10. It said about Rs 19.85 crore was spent during 2009-10, Rs 31.06 crore during 2010-11 and Rs 45.47 crore in 2011-12. As much as Rs 51.42 crore was spent on outdoor publicity in 2012-13 and nearly Rs 74.35 crore during 2013-14, the RTI reply said.
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DOT FLOATS CABINET NOTE ON VODA IDEA'S FDI PROPOSAL AHEAD OF RS 25,000 CR RIGHTS ISSUE

The telecom department has floated a cabinet note on proposed foreign fund infusion plans by India's largest telecom operator Vodafone Idea Ltd, which is planning up to Rs 25,000 crore rights issue according to a source. A telecom department official privy to the development said that the proposal is likely to be taken up by the Cabinet soon The official noted that a cabinet note has already been circulated on the FDI proposal linked to the proposed rights issue of the company.
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STATE AGENCIES SHOULD BE HELD RESPONSIBLE FOR DELAYS IN REALTY PROJECT APPROVALS: VENKAIAH NAIDU

Urban local bodies and state development authorities should be made responsible for any delay in giving approvals to real estate projects just as developers are held accountable for not completing houses on time under the new realty law RERA, M Venkaiah Naidu said on Thursday. He asked developers to evolve an internal self-regulation mechanism and improve their image that has taken a hit due to wrongdoings of certain players. Delivery of project on time is important. Approval by government and municipal agency is equally important. They also have responsibility. When you want to make real estate companies accountable for delay, you also make local bodies responsible for the delays, Naidu said. Stressing on the need for ease of doing business he said the central and state authorities should facilitate steady growth of the real estate sector Naidu also favoured online approvals for realty projects and asked builders to go for digital transactions. Real estate sector is an important sector of our economy that contributes 7.9 per cent to the GDP of the country. Being the second largest job provider in the economy after agriculture, the entire country has stake in the real estate sector. Around 50 million people are employed in construction sector, which is likely to reach 67 million by 2022, the Vice President said, adding that developers should focus on skilling their workforce. He also termed as very disturbing a recent CAG report which said that 95 per cent of developers do not have mandatory PAN. Asking developers to take corrective action, he said industry bodies like CREDAI should institutionalise internal self regulations. Unless you take internal correctives, unless you evolve a code of conduct and unless you do your business on ethics, the sector and country cannot prosper. The country cannot suffer because of wrongdoings of some people. Few black sheep are spoiling the atmosphere, Naidu said.
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GOVERNMENT PANEL TO REVIEW FARMERS LEFT OUT OF PM KISAN SCHEME

The government has set up an inter-ministerial committee headed by the finance minister to decide on exceptions and further inclusions of left-out farmers who fail to meet the existing eligibility criteria of the PM KISAN scheme. The committee may review such cases on request of state governments if the left-out beneficiaries are large in number. There are land ownership-related problems in states where land records are still not updated. There, record shows the ownership still in the name of grandfather while grandson is cultivating it after his death. Such cases may be referred to the committee for resolution, said a senior official. He said the guidelines of PM KISAN may be modified as and when need arises following suggestions from the states. The scheme is dynamic. Since these guidelines were drafted without inviting much consultations, these may be modified to suit the best interest of farmers, he said. There is another inter-ministerial committee to look into the issues of north eastern states where the land ownership rights are community based and it is not possible to assess the quantum of land holder farmers. In such states, alternate implementation mechanism would be developed to ascertain the eligibility of farmers. An inter-ministerial committee represented by ministers of development of northeast region (DoNER), land resources, agriculture and concerned chief ministers of the states will decide the road map, he said.
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RAHUL GANDHI’S INCOME GUARANTEE MAY DO MORE HARM THAN GOOD, SAYS EX-SONIA GANDHI ADVISOR

With the Congress President Rahul Gandhi announcing to introduce a minimum income guarantee scheme in 2019, if voted to power, talks about the effectiveness of such direct income transfer scheme has again gained momentum. Rahul Gandhi’s proposed scheme will do more harm than good if it comes at the cost of existing subsidies for the poor, says Harsh Mander. This income transfer will target the poor with a minimum income of Rs 1,000 to Rs 1,800 a month, Harsh Mander. The proposed scheme is based on the acknowledgement that massive market-led economic growth, by itself, cannot raise millions out of poverty, but needs a sensitively-designed direct state support to the downtrodden, he wrote. He however, raised some basic questions such as how these households will be identified, how the required resources will be raised, and what other elements of social protection, if any, would together with income-transfers would be used to eradicate poverty. Warning about the huge exclusion error these scheme are prone to, he said that there are no objective ways of evaluating incomes of households in the informal sector. Moreover, these targeted scheme give far too much discretion to the bureaucracy, leading to enormous rent-seeking. He recommended to design income transfer schemes to farmers like that of Telangana and Odisha government, and expanding the Mahatma Gandhi National Employment Guarantee Scheme to a massive housing, water and sanitation programme for the urban poor.
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PROCESS TO APPOINT CHIEF INFORMATION COMMISSIONER SHOULD BE SAME AS CEC: SC

The Supreme Court on Friday passed a slew of directions on filling up vacancies in the Central Information Commission (CIC) and state information commissions (SICs) and said the process of appointments must start one to two months before a post falls vacant. A bench comprising Justices A K Sikri and S A Nazeer said the post of a chief information commissioner is on a higher pedestal and the appointment process for a CIC should be on the same terms as in the process of a chief election commissioner. The apex court also took note of the existing vacancies in CIC and SICs and directed authorities to fill them up within six months.
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COMMERCIAL COAL MINING AUCTIONS UNLIKELY DUE TO ELECTIONS: OFFICIAL

Auctions for commercial coal mining may not take place soon as the country is entering the election mode said a senior government official. The statement comes amid resistance from the trade unions operating in the coal sector against commercial coal mining. With the nation almost entering the election mode, I think it will be difficult to hear anything soon. Maybe, after a couple of months, we will be able to make bigger progress in this area (commercial coal mining auction), said Ashish Upadhyaya. When the policy (on commercialisation) came labours and workforce, who are important stakeholders in this industry, had apprehensions; fear that the conditions of pre-nationalisation will come back. So, it was necessary for the government to allay those fears. Had a constant interaction, dialogue and convinced them that ultimately, privatisation will be in favour of everyone, he said.
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EXPERT COMMITTEE SUBMITS ITS REPORT ON DETERMINING METHODOLOGY FOR FIXING NATIONAL MINIMUM WAGE

The Ministry of Labour and Employment had constituted an expert committee on 17th January 2017, under the Chairmanship Dr. Anoop Satpathy, Fellow, V. V. Giri National Labour Institute (VVGNLI) to review and recommend methodology for fixation of National Minimum Wage (NMW). The Expert Committee has submitted its report on Determining the Methodology for Fixation of the National Minimum Wage to the Government of India through the Secretary, Ministry of Labour and Employment on 14-02-2019. There have been several developments since the norms for the fixation of the minimum wages were recommended by the 15th ILC in 1957 and subsequently strengthened by the judgement of the Supreme Court in the judgement of Workmen v Reptakos Brett & Co. case in 1992. The report using scientific approach has updated the methodological framework of fixation of minimum wages based on the overall guidelines of the ILC 1957 and the Supreme Court Judgment of Workmen v Reptakos Brett & Co. in 1992. The report has undertaken a rigorous and meticulous analysis and has generated a large amount of evidence relating to changes in the demographic structure, consumption pattern and nutritional intakes, the composition of food baskets and the relative importance of non-food consumption items to address the realities in the Indian context by using official data made available by the National Sample Survey Office (NSSO). Using the nutritional requirement norms as recommended by the Indian Council of Medical Research (ICMR) for Indian population, the report has recommended a balanced diet approach which is culturally palatable for fixation of national minimum wage. Accordingly, it has proposed that food items amounting to the level of ± 10 per cent of 2,400 calories, along with proteins ≥ 50 gm and fats ≥ 30 gm per day per person to constitute a national level balanced food basket. Further, this report proposes minimum wage should include reasonable expenditure on ‘essential non-food items’, such as clothing, fuel and light, house rent, education, medical expenses, footwear and transport, which must be equal to the median class and expenditure on any ‘other non-food items’ be equivalent to the sixth fractile (25-30 per cent) of the household expenditure distribution as per the NSSO-CES 2011/12 survey data. On the basis of the aforesaid approach, the report has recommended to fix the need based national minimum wage for India at INR 375 per day (or INR 9,750 per month) as of July 2018, irrespective of sectors, skills, occupations and rural-urban locations for a family comprising of 3.6 consumption unit. It has also recommended to introduce an additional house rent allowance (city compensatory allowance), averaging up to INR 55 per day i.e., INR 1,430 per month for urban workers over and above the NMW.
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ARUN JAITLEY TO RESUME DUTY AS FINANCE MINISTER BY 18 FEB; MAY ADDRESS RBI BOARD MEET

Arun Jaitley, who has recently returned home from the US after treatment of an illness, is likely to resume charge as the Finance Minister by 18 February 2019, an official in the Ministry of Finance told. Arun Jaitley is expected to address the upcoming meeting of RBI Central Board of Directors on 18 February. However, the invite was soon revised, now saying that Finance Minister will address the meeting, while omitting the name. There is no official note on Arun Jaitley resuming charge as the Finance Minister, but it is likely that he would resume the charge in time for the RBI board meet, the official told.
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CBDT CHAIRMAN SUSHIL CHANDRA APPOINTED AS THE NEW ELECTION COMMISSIONER

Sushil Chandra, chairperson of the Central Board of Direct Taxes (CBDT), has been appointed as the new Election Commissioner of India Chandra, an IIT graduate, is a 1980 batch officer of the Indian Revenue Service (Income Tax cadre). Chandra’s role was crucial in the Union budget as direct taxes remained the biggest element of the annual Finance Bill. Currently, he is serving as the chairman of the CBDT till May 2019. This is his second extension after taking over as the chief of the CBDT, the apex policy-making body of the Income Tax Department, on November 1, 2016. Satya Pinisetty, Joint Commissioner of Income Tax, tweeted the appointment of Sushil Chandra.
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CABINET APPROVES ASHWANI LOHANI'S APPOINTMENT AS OF AIR INDIA

The Cabinet on Wednesday approved the appointment of Ashwani Lohani as the new Chief Managing Director of Air India. Lohani was retired from his previous role as Railway Board Chairman on January 1. Lohani was appointed chairman of the Railway Board after AK Mital resigned in August last year following the derailment of the Kaifiyat Express near Auriya in Uttar Pradesh. He also set a Guinness World Record in 1998 for operating the oldest working steam locomotive in the world.
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WELFARE MEASURES TO CONTINUE IN INDIA POST GENERAL ELECTION

Some of the new welfare measures in India will continue to take shape regardless of the outcome of the general election, a top Singapore bank said on Thursday. Despite a change in the government in 2014, impetus for Goods and Services Tax (GST), financial inclusion, and fuel subsidy reduction did not waver, said Indian-origin economist with DBS Research Group Radhika Rao. General elections are likely to take place in April and May in India. We expect some of the new welfare measures to take shape independent of the election outcome, she said. India’s political economy is attaining modern welfare dimensions with direct cash transfer, universal basic income and jobs provisions, Rao said. With a mixed result in the recent parliamentary by-polls and state legislature elections, risks of a hung Parliament cannot be discounted, she said. Four recent opinion polls point to an average of 220-230 seats for the Bharatiya Janata Party-led coalition, falling short of a majority, Rao said.
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INDIA COULD EXTEND DEADLINE ON STEEL IMPORT RULES FOR AUTOMAKERS: SOURCES

India is considering extending by four months a compliance deadline on tougher import rules for steel that are aimed at forcing automakers to use locally made alloy said two sources familiar with the matter. Compliance to the new rules had been set for Feb. 17, which was an extension of two months, but strict adherence to the regulations would have stalled production for India's auto industry, a federal minister has warned. Carmakers continue to rely on imports because they say local steel companies do not manufacture the grades they need, said Sugato Sen. Auto companies want an extension until the end of 2019. There are some grades that are not manufactured in India and we may allow those to be kept out of quality control for some more time, a senior steel ministry official told Reuters on condition of anonymity, as the discussions are not public.
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LENDERS IN PILOT'S SEAT AT JET AIRWAYS; GOYAL'S STAKE MAY REDUCE TO 22%

Lenders led by State Bank of India (SBI) will become the largest shareholders in Jet Airways in a move to bail out the country’s second-largest domestic airline. The Naresh Goyal-led company made the disclosure to the stock exchanges on Thursday after its board approved a draft resolution plan comprising conversion of lenders' debt into 114 million equity shares at an aggregate consideration of Rs 1, issue of fresh interim loan to the airline and changes in governance structure and board composition. Even as the stock exchange disclosure did not give out the specifics of the proposed deal, including the amount of fund infusion to be made by the shareholders, loan amount to be converted into equity or who would hold how much in the new entity, sources indicated that Goyal’s stake would be diluted to around 22 per cent from the current 51 per cent. Foreign partner Etihad will possibly retain its shareholding at the current level of 24 per cent. While the lenders’ consortium will hold 51 per cent, the National Infrastructure Investment Fund (NIIF) may be amongst the new investors in the airline, one of the sources said. The draft plan estimates a funding gap of Rs 8,500 crore (including aircraft loan repayment of Rs 1,700 crore) which would be met through equity infusion, debt restructuring, sale and lease back of planes, among others. The numbers are close to final unless the stakeholders concerned bring in more or less to the table, a person in the know pointed out, referring to the shareholding pattern in the new entity. However, governance related matters are yet to be frozen, he said, when asked whether Goyal would remain on the Jet board or step down. In the past few months, the buzz was that Goyal would exit the board and his son Nivaan would be inducted. It is believed that Goyal is still negotiating with the lenders on retaining his board seat.
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BANKS COME UP WITH RESCUE PACKAGE FOR JET

After months of negotiations, lenders led by State Bank of India are set to take control of debt-laden Jet Airways, with the company board on Thursday approving a bank-led provisional resolution plan Under this plan, the SBI-led lenders will convert the debt into 11.4 crore shares for just 1. With that, the lenders will become the largest shareholders in the company, with a stake of about 50 per cent. Though Jet did not disclose the details of the restructuring plan, it said in a statement the plan proposes a restructuring under the provisions of the RBI in order to meet a funding gap of nearly 8,500 crore, which is to be met by a mix of equity infusion, debt restructuring, and sale and lease back of aircraft, among other things. The plan will now be presented to the consortium of lenders, the Overseeing Committee of the Indian Bankers’ Association, the Etihad Airways board, and Jet promoter Naresh Goyal for approval. Shareholders’ approval for the conversion of lenders’ debt into equity will be taken on February 21. The plan also envisages the sanction of interim credit facilities by domestic lenders to manage operational exigencies.
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COAL SHORTAGE, STATE DUES, HIGHER SALARIES BEHIND LOSSES AT DISCOMS

Shortage of coal at power plants, inadequate tariff hikes and rising operational costs after the 7th Pay Commission have been putting additional pressure on already hard-pressed electricity distribution companies (discoms). In a review meeting recently held here to map the progress of various schemes under the Union power ministry, discom officials also blamed the late subsidy disbursal of state governments for their increasing woes. At the end of the first half of FY19, all India aggregate technical and commercial (AT&C) losses — an indicator of losses due to pilferage and billing inefficiencies — stood at 22%, rising from 18.6% at FY18-end and making it nearly impossible to achieve the target of reducing them to under 15% by March under the Ujwal Discom Assurance Yojana (UDAY). These losses, one of the primary reasons for the discoms being perennially in the red, were the highest in Bihar (38.9%), followed by Jharkhand (36.9%) and Uttar Pradesh (33.1%). AT&C loss of one percentage point translates to financial under-recovery of about 4,000 crore on a pan-India basis. Power purchase cost in UP has risen 14% y-o-y to Rs 4.48/unit due to coal shortage, rise in coal and railway transportation cost and higher transmission charges. Rise in rural electrification has also hampered the discoms’ ability to collect payments, officials said. The state has also sought the central government’s intervention to recover outstanding dues from the state irrigation department. Power minister RK Singh has proposed in the new tariff policy that AT&C losses above 15% won’t be compensated for through tariffs after FY19, which means that discoms would not be compensated for their inefficiencies through higher consumer bills.
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EESL GARNERS 3,000 CR FROM LED BULB PROGRAMME

Energy Efficiency Services Ltd (EESL) has raised nearly 3,000-crore revenue through the Unnat Jyoti by Affordable LEDs for All (UJALA) programme. UJALA is the LED-based Domestic Efficient Lighting Programme (DELP) launched in January 2015 with a target of replacing 77- crore incandescent lamps with LED bulbs. The programme was implemented by EESL, a joint venture of public sector enterprises under the administrative control of the Ministry of Power. EESL has earned nearly 3,000-crore revenue from the UJALA programme in the past four years. This has been accrued from the sale of LED bulbs to consumers. These 32.5-crore bulbs have been sold between 70 to 180 per bulb to the consumers, Saurabh Kumar, Managing Director at Energy Efficiency Services Ltd, told BusinessLine. Kumar said, Nearly 95 per cent of the consumers have gone for an upfront payment while the remaining 5 per cent went for the instalment scheme. Recovery from these consumers has been as per schedule.
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EMPLOYMENT OF INDIAN SEAFARERS GROWS BY AN UNPRECEDENTED 35 PERCENT THIS YEAR

The shipping sector has witnessed an unprecedented growth of 35 per cent in the number of Indian seafarers employed on Indian or foreign flag vessels this year. The figure rose from 154349 in 2017 to 208799 in 2018. Along with this, the number of students placed for on-board training also increased from 14307 last year to 19545 this year, showing a jump of nearly 37 per cent. The number of seafarers employed on Indian flag vessels increased from 22,103 last year to 27,364 this year, while the employment figures on foreign vessels went up from 60,194 to 72,327during the same period. The total number of Officers employed increased from 60194 in 2017 to 72327 in 2018 while the number of Ratings during the period also increased from 72,052 to 109,108. The number of Indian seafarers had earlier gone up from 103835 in 2013 to 126945 in 2015. This phenomenal growth in the number of Indian seafarers has been possible due to a series of measures taken by the Government in the last four years to improve the standards of maritime training, increase on-board training opportunities, improve the examination and certification system and facilitate ease of doing business. While India has created a large capacity in imparting class room training for Merchant Navy, there has been a major constraint in providing on-board ship training for the students enrolled for class room training.
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DTH, CABLE TV OPERATORS TO PAY NEW TARIFFS TO BROADCASTERS FROM FEBRUARY

Distribution platform operators (DPOs) will have to pay broadcasters based on the new pricing starting this month, the Indian Broadcasting Foundation (IBF) has said. Telecom Regulatory Authority of India’s (TRAI) earlier noted that only 65 percent of cable services subscribers and 35 percent of DTH subscribers have migrated to the new MRP regime, prompting it to extend the deadline to March-end for those who haven’t migrated. Effective from February 2019 onwards our member broadcasters will be raising invoices on DPOs in accordance with the provisions stipulated by TRAI under the new MRP regime, IBF said in a statement. The IBF issued the statement regarding the pricing after DPOs sought clarification following TRAI decision to extend the deadline to March 31, 2019 to those subscribers who have not yet migrated to new tariff regime. The foundation also said its member broadcasters have executed the Reference Interconnect Offer (RIOs) under the new MRP regime with the DPOs and have implemented the new MRP regime effective February 1, 2019 as mandated by TRAI. Thus all DPOs are statutorily bound to adhere to the provisions of the new MRP regime. Accordingly, DPOs are hereby requested to provide their monthly subscriber reports as mandated under the new MRP regime in respect of each of their subscribers on the duly notified dates — 7th, 14th, 21st and 28th of every month, IBF said. As per the new tariff regime, which came into effect from February 1, viewers can pick and choose the channels they wish to watch and pay for only those selected, rather than the earlier system of paying for a bundle of channels that were being pushed to viewers at a fixed rate. The order was created to bring in transparency and empowering the audience, who were earlier offered packs by DTH and cable TV operators without much choice of selection.
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TELECOM DEPARTMENT REFUTES BSNL SHUTDOWN REPORT, SAYS MULLING REVIVAL

The department of telecom (DoT) is seriously considering the revival of public sector telecom service provider Bharat Sanchar Nigam Limited (BSNL), it said in a statement Thursday. Country's fourth-largest telecom service provider's statement has come following an unconfirmed report saying the government was looking at options including shutting down the telco. Department of Telecom (DoT) is in the process of finalising a proposal for revival of BSNL to be considered by the Digital Communications Commission (DCC) very soon, Delhi-headquartered telco said. BSNL strongly denied such reports, and said there was no proposal under consideration with the government for the closure of BSNL, and added that on the contrary, the government recognises and values the inherent strengths of BSNL as a telecom services provider with huge infrastructure and reach, especially in rural areas.
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TELCOS ASK DOT TO DEFER DEADLINE TO TEST GEAR IMPORTS

India’s top mobile service providers have asked the department of telecommunications (DoT) to defer the April 1 deadline for mandatory testing and certification of imported network equipment due to a paucity of labs to undertake such in-country screening. They are likely to urge DoT and its technical wing, the telecom engineering centre (TEC), to instruct customs authorities not to insist on the required certification to preempt imported 3G and 4G equip-ment worth billions of dollars from getting stuck and delaying network rollouts and expansion after April 1. Mobile operators import an estimated $6-7 billion of network gear annually, primarily for 4G networks, from vendors such as Ericsson, Nokia, Huawei, Samsung and ZTE. We’ve requested the authorities that the requirements of mandatory testing and certification of telecom equipment should not be implemented until sufficient test labs are established in India and all related technical and procedural challenges have been addressed by the government, Rajan Mathews, director general of the Cellular Operators Association of India, which represents Vodafone Idea, Bharti Airtel and Reliance Jio, told. Implementation of the testing and certification norms, he said, has a very high dependency on availability of a robust test labs ecosystem. Their current unavailability can prevent timely testing, which could hold up imports and deployment of network elements, delaying expansion of networks and adversely impacting business interests of all stakeholders. A senior TEC official conceded there are only 33 such labs now and that India would need at least a 100-odd to meet the national requirement of mandatory testing and certification of telecom equipment at current import volumes. However, he expects the screening ecosystem to evolve rapidly as at least 30-40-odd new test labs are in the pipeline. In the absence of a testing ecosystem, the companies urged DoT and TEC to pave the way for early mutual recognition agreements (MRA) between India and other countries for testing and certification of telecom gear. The TEC official said the processing of MRA pacts is undertaken by the commerce ministry. The DoT issued the testing rules in September 2017 and implementation was scheduled in October 2018. The deadline was deferred twice, initially to January 1, 2019, and subsequently to April 1, in the absence of adequate test labs. A third extension seems imminent with little changed at the ground level.
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INDIGO CONTINUES TO FACE SHORTAGE OF PILOTS, CANCELS AROUND 130 FLIGHTS FOR FRIDAY

Acute shortage of pilots along with NOTAMs at some airports forced IndiGo to cancel around 130 flights for Friday, a source said. The cancelled flights account for almost 10 per cent of the airlines operations, the source said. An Indigo spokesperson, however, said the airline has not cancelled any additional flights other than the schedule cancellations. The Gurugram-based budget carrier operates over 1,300 flights per day with a fleet of 210 planes. IndiGo has cancelled around 130 flights for Friday as it continues to face shortage of pilots, the source said. The airline has not pulled out anu additional flights other than the schedule cancellations but refused to issue a statement.
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PAYTM PLEDGES ALL ITS ASSETS TO BORROW 1,400 CRORE FROM ICICI BANK

Vijay Shekhar Sharma's One97 Communications Ltd, the parent of fintech startup Paytm, has pledged all its current assets and mutual fund investments to be able to borrow 1,400 crore for working capital needs from ICICI Bank Ltd. On 18 January, Paytm and ICICI Bank Ltd entered into an agreement under which One97 Communications’ entire current assets worth 7,085.1 crore as on 31 March 2018 was hypothecated by the bank to boost the startups borrowing capacity. Until now, Paytm could borrow up to 400 crore from the bank for working capital. The higher borrowing limit helps Paytm secure capital for everyday operations amid tight liquidity conditions in the market and banks’ unwillingness to lend to startups and financial services companies. It may also help Paytm fuel its growth plans that primarily include online-to-offline (O2O) retail businesses and enter new overseas markets in the digital payments space—moves that are aimed at narrowing losses. The agreement was formally registered with the ministry of corporate affairs on Wednesday. Paytm’s online retail business Paytm Mall, under Paytm E-Commerce Pvt. Ltd, saw its financials deteriorating with a loss of 1,787.55 crore on a total revenue of 774.86 crore during FY18, according to filings with the registrar of companies.
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ONLY 17% OF FIRMS REPORT CYBER ATTACKS: EY

Only 17 per cent of 235 Indian organisations surveyed in the EY Global Information Security Survey 2018-19 report what breaches have taken place in their network systems. This was disclosed in the India edition of the EY survey, released here on Thursday, The EY report also reveals that while banking and telecom are the most attacked sectors, manufacturing, healthcare, and retail have also faced a significant number of cyber attacks. Burgess Cooper, told that cyber attacks could be for money as well as impact. When a power plant is attacked, the impact is huge. It could shut cities down. Hence, manufacturing industries are a target for cyber attacks too Cooper said. Releasing the report, Gulshan Rai, Cyber Security Chief, Prime Minister’s Office, said there are provisions under the IT Act (such as section 43A) under which incident reporting is mandatory. Further, he said that the Justice Srikrishna committee (of which he was also a member) has recommended making it mandatory to disclose a breach not only to the authority but also to the person whose data has been affected. That will follow as a law in due course of time. But, there is a thinking in that direction. and it will get strengthened over a period of time, Rai said. Malware (22 per cent), phishing (15 per cent) and disruptive cyber attacks (15 per cent) are the top three threats to organisations, the survey said.
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HACKERS STEAL OVER 600 MN ACCOUNT DETAILS FROM 16 WEBSITES

Hackers have made available on the dark web details of some 617 million accounts stolen from 16 websites including ShareThis, Dubsmash and MyFitnessPal among others, The Register reported. It has been claimed that databases, which are aimed at making life easier for hackers, can be purchased from the Dream Market cyber-souk, located in the Tor network, for less than $20,000 in bitcoin. The stolen information mainly includes account holders names, email addresses and passwords, according to the report that appeared this week. The price appears to be relatively cheap because the information is targeted at spammers and credential stuffers who could use the information to also get access to other sites for which the users use the same usernames and passwords. The hacked websites are Dubsmash (162 million), MyFitnessPal (151 million), MyHeritage (92 million), ShareThis (41 million), HauteLook (28 million), Animoto (25 million), EyeEm (22 million), 8fit (20 million), Whitepages (18 million), Fotolog (16 million), 500px (15 million), Armor Games (11 million), BookMate (8 million), CoffeeMeetsBagel (6 million), Artsy (1 million), and DataCamp (700,000), according to the report in The Register.
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DIAL '112' FOR HELP IN ANY EMERGENCY; TO KICK OFF IN 14 STATES, UTS ON FEB 19

Fourteen states and Union Territories will next week join a pan-India network of single emergency helpline number '112' where any immediate assistance can be sought by people in need, officials said on Thursday. The Emergency Response Support System (ERSS) is an integration of police (100), fire (101), health (108) and women (1090) helpline numbers to provide emergency services through the single number '112'. To access the emergency services, a person can dial 112 from phone or press power button on smart phone 3 time quickly to activate panic call to Emergency Response Centre (ERC). In case of normal phone, long press of '5 or '9' key on the phone will activate the panic call, a home ministry official said. People can also log onto ERSS website for the state and lodge emergency Email or send SOS alert to state ERC. They can use '112' India mobile app, which is available free on Google Playstore and Apple store. The states where the single emergency number '112' will be operationalised on February 19 include Uttar Pradesh, Uttarakhand, Punjab, Rajasthan, Madhya Pradesh, Tamil Nadu, Kerala, Andhra Pradesh and Telangana. The single number for various emergency services, which is similar to the '911' all-in-one emergency service in the US, will be gradually rolled out across the country, the official said. Under the Union Home Ministry sponsored project, the states will have to set up a dedicated ERC The ERC will have a team of trained call-takers and dispatchers to handle emergency requests relating to assistance from police, fire and rescue, health and other emergency services. Police can view all events after an emergency call is made at the ERC. The ERCs are connected to district command centres (DCC) and the emergency response vehicles and assistance/response to victims are facilitated through them, another official said. The ERSS is designed to be a common protocol managed by each state and UT. The ERSS provides a 112 India mobile app. For women and children, 112 India app provides a special 'SHOUT' feature which alerts registered volunteers in the vicinity of victim for immediate assistance. The Centre for Development of Advanced Computing (C-DAC) has been designated as the total service provider by the home ministry for the project. The C-DAC has developed complete ERSS solutions for state and UTs and is also supporting states and UTs in setting up the ERSS. The central government is providing Rs 321.69 crore to the states and UTs for the ERSS as part of the Nirbhaya scheme. The service has already been launched in Himachal Pradesh and Nagaland.
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INDIA’S FIRST SEMI HIGH SPEED TRAIN, VANDE BHARAT EXPRESS TO BE FLAGGED OFF BY PM

The ‘Make in India’ effort of Indian Railways has culminated into India's first Semi High Speed Train, Vande Bharat Express. Prime Minister Narendra Modi will flag off the maiden run of the train on New Delhi-Kanpur-Allahabad-Varanasi route train morning from the New Delhi Railway Station. He will inspect the facilities in the train and address a gathering on this occasion. Vande Bharat Express can run up to a maximum speed of 160 kmph and has travel classes like Shatabdi Train but with better facilities. It aims to provide a totally new travel experience to passengers. All coaches are equipped with automatic doors, GPS based audio-visual passenger information system, on-board hotspot Wi-Fi for entertainment purposes, and very comfortable seating. All toilets are bio-vacuum type. The lighting is dual mode, viz. diffused for general illumination and personal for every seat. Every coach has a pantry with facility to serve hot meals, hot and cold beverages. The insulation is meant to keep heat and noise to very low levels for additional passenger comfort. Vande Bharat Express has 16 air-conditioned coaches of which 2 are executive class coaches. The total seating capacity is 1,128 passengers. It is much more than the conventional Shatabdi rake of equal number of coaches, thanks to shifting of all electric equipment below the coaches and seats in the driving coach also.
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MOBILE APP TO ALLOW BENEFICIARIES TO CAPTURE & UPLOAD PHOTOGRAPHS OF COMPLETED HOUSES

Shri Hardeep S Puri,Minister of State (I/C) for Housing and Urban Affairs has stated that the PMAY (U) Mobile App will allow beneficiaries to capture and upload high resolution photographs of completed houses along with their families. The App will also allow uploading of selfies of beneficiaries with their house and a 30 - 60 seconds video clip where beneficiaries share their stories of owning a house under PMAY (U). These stories would be an emotional recount of experiences such as increased self-esteem, sense of pride and dignity, improved social status, safety and security for the family, protected environment for the girl child, children’s education among others. A one-minute film showcasing the impact of PMAY(U) in the lives of beneficiaries was also released on the occasion. Shri Hardeep S.Puri emphasized that the mission intends to create a closer interface with its beneficiaries Hence a mobile application has been developed to bring beneficiaries directly in contact with the mission. The application would allow beneficiaries of PMAY (U) to capture and upload photosand videos of completed houses along with testimonies. These photos and videos ofbeneficiary testimonies will be scrutinized at State as well as at Central level. The selected beneficiaries from States/UTswould be awarded and invited as special guestfor anniversary celebration of PMAY (U). The PMAY (U) mission was launched on 25th June 2015 with the aim to provide houses to every eligible urban household in India by the year 2022. The scheme has achieved a significant milestone of approving more than 73 lakh houses against a validated demand for about one crore houses in urban areas. Around 40 Lakh houses are at various stages of construction and more than 15 lakh houses have already been completed. Further around 12 lakh houses are being constructed using new and emerging technologies.
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AS MINISTRY DRAGS FEET ON POLICY, KIDS WITH RARE DISEASES PAY THE PRICE

The ongoing tussle between the Union Health Ministry and the All India Institute of Medical Sciences (AIIMS) over providing treatment to children with rare diseases is fast turning into a humanitarian crisis And caught in the crossfire are siblings Arshi (17) and Ubed (15), who first came to limelight as the first set of kids in New Delhi to get the costly Enzyme Replacement Therapy (ERT) for treating their rare genetic condition — Mucopolysaccharidosis I (MPS I). While both my children require the drugs every week, we have not received treatment for more than seven weeks in a year, Ayesha Begum, told. Last year, after the Health Ministry did a U-turn and said that the National Policy for Rare Diseases 2017 is being put on hold and after the 100-crore corpus announced for treatment of rare diseases was withdrawn for lack of allocation, Ubed and Arshi's treatment also came to a halt at AIIMS. On February 8, the Delhi High Court called this move of the Ministry, a somersault, and directed AIIMS to restart the treatment. While the Health Ministry is still formulating its new policy which, according to Preeti Sudan will take close to nine months, doctors from AIIMS said that in pursuance of the court’s previous orders, they had purchased Enzyme Replacement Therapy vials, worth close to 67 lakh. The Health Ministry has neither paid for it nor has given any sanction for administering it, AIIMS submitted to the HC. Meanwhile, with lack of treatment, the health of the children has deteriorated. While Arshi has now been relegated to a wheel-chair and has stopped going to school, Ubed has started losing balance while walking, Ayesha said.
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KERALA'S TOURISM FOOTFALL IN 2018 AT HALF ITS POPULATION: MINISTER

Kerala collected Rs 36,528.01 crore as revenues from tourism last year: an increase of Rs 2,874.33 crore over last year. Over 16.7 million tourists, both domestic and foreign, visited Kerala in 2018, compared to 15.76 million the previous year, recording an increase of 5.93 per cent. Of the total footfalls, 1.09 million were foreign tourists The share of revenue from foreign visitors touched Rs 8,764.46 crore. There was also a spurt in arrival of domestic tourists to the southern state. United Kingdom (UK) accounted for the largest number of foreign visitors, at 200,000, followed by the United States, France, Germany and Saudi Arabia. The number of visitors from other European countries such as Sweden and Italy also rose during the period. In the first quarter of calender year 2018, tourist arrivals to the state recorded a 12.3 per cent growth of foreign visitors and a 20 per cent rise of domestic tourists.
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YOUR ELECTRIC VEHICLE DREAM MAY GET A RS 50,000 JUMP-START

The government is planning to incentivise the purchase of electric vehicles (EVs) with rebates of up to Rs 50,000, bringing them under the umbrella of priority sector lending and lowering interest rates on loans, said an official with knowledge of the matter. The move is part of the government’s bid to promote the manufacture and sale of EVs in India so that they eventually comprise 15% of total sales from the current negligible share in the next five years. A cabinet note is being prepared and a decision is expected soon, the senior government official told on condition of anonymity. The idea is to give enough incentives so that the prices of electric vehicles match the current conventional internal combustion engines so that prospective buyers start giving preferences to electric vehicles over conventional vehicles, the person said. The plan could be rolled out in select cities for a fixed tenure in the first phase, said the person cited above. The sops may be linked to battery size and vehicle type. India is banking on cleaner energy sources to help clean up its polluted cities. Extensive infrastructure development will be needed to provide adequate charging facilities to ensure this isn’t a constraint for adoption, the official said. Stakeholder ministries have already issued notifications to facilitate the domestic manufacture of EVs and creation of infrastructure, following intervention by the Prime Minister’s Office (PMO). The single biggest factor for slow penetration of electric vehicles is their high price, which is around 2 to 2.5 times more than a comparable conventional vehicle, according to the Society of Indian Automobile Manufacturers (SIAM). Another concern is the range per charge. That’s despite electric vehicles having a significant advantage in terms of operating cost, which could be as low as one-fourth that of a conventional vehicle. Total electric vehicle sales in India in FY18 amounted to 56,000 units, up from 25,000 in FY17. Of this, electric two-wheelers dominated with 54,800 units, up from 23,000 in the previous fiscal. However, electric four-wheelers witnessed a drop in FY18 to 1,200 units from 2,000. SIAM data show total passenger vehicles sold in India in FY18 stood at 3.3 million units while total two-wheeler sales amounted to 2.02 million units.
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SPORTS MINISTRY SETS UP SIX-MEMBER COMMITTEE TO REVIEW SPORTS AND CASH AWARDS

In a bid to create a more transparent atmosphere for awarding sports and cash awards to deserving athletes, the sports ministry on Thursday constituted a six-member committee to review the different award schemes The committee can change the schemes if required and can also increase and decrease the amount of the cash awards. It can also decide the number of awards being given out per year. The committee will also review the eligibility and marks criteria of the sports awards. It can also recommend the inclusion of new international sports events which can be considered for the cash award scheme. The committee has been asked to submit its report within 10 days.
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CII STRESSES DIGITAL SKILLS FOR THE FUTURE

Indian companies are now in a rush to recruit people with digital skills because the supply is far less than demand, said CK Ranganathan. We have made some of our employees take digital courses and found that their market value (compensation) has increased from 4 lakh a year ago to 10-12 lakh now, Ranganathan added. Given the dearth of digitally skilled manpower in India, over the next five years, companies will compete to recruit such talent, he added. He also said that technological disruptions like artificial intelligence (AI), internet of things (IoT) and blockchain technology will affect our daily lives in more ways in the future.
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BENGALURU, DELHI LIKELY TO BE 3RD & 4TH FASTEST-GROWING IN OFFICE RENTALS GLOBALLY

Bengaluru and New Delhi are likely to be the third and fourth fastest-growing office markets globally in terms of prime rentals on the back of upbeat demand and inadequate availability of quality properties. Office rental values in Bengaluru are expected to increase 6.6% over 2018, while in New Delhi they may rise 6.5%, this year, according to a report by Knight Frank India. Rentals are getting a boost as demand remains buoyant from IT/ITeS companies and startups amid lack of quality space in key markets. Bengaluru saw prime rental values of Rs 125 per square foot per month in 2018, mainly on account of low Grade A supply, according to the report titled, ‘Global Outlook 2019,’ which evaluates 33 global cities. New Delhi’s prime rental values of Rs 326 per sq ft per month came mainly on the back of constricted fresh supply. Mumbai’s prime office rentals are expected to remain stable with growth estimated at only 0.3% in 2019. The recorded rental for prime markets in the city is about Rs 300 per sq ft per month, largely because demand has shifted to secondary and peripheral locations due to high rental values in other places. The vacancy rate is expected to improve to 15% in New Delhi in 2021 from 16.5% in 2018 and to 14% in Mumbai from 19.8%, indicating an increase in employment generation.
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FINANCE COMMISSION MEETS DEPARTMENT OF SCHOOL EDUCATION AND LITERACY

The Fifteenth Finance Commission had a meeting with the Department of School Education and Literacy, Ministry of Human Resource Development in New Delhi. The meeting discussed key issues of the sector requiring the Commission’s intervention including investment in School Infrastructure, Teacher’s salaries & training, Career Counselling, school students, Pre-schooling of children akin to the Sikkim model to give a boost to early learning, and other issues. The meeting also discussed steps to attract greater to private capital and private Partnership into the school education sector as well as integrate B.Ed courses into two year integrated BA.B.ED courses, B.Com. B.ED courses in the future to streamline the availability of trained teachers. The Commission expressed concern over parents’ preference to send children to Private English schools over the Government schools and stressed on the requirement for evaluation of schools and dissemination of the results to help parents in making informed choices. The HRD has asked for the support from 15th Finance Commission on the following issues:

·       Incentive based grants to States based on Performance Grading Index (PGI).
·       Requirement of Central funds amounting to a minimum of Rs. 4,37,994.74 crore (to meet RTE Norms and other essential requirements) and Rs. 5,66,087.74 crore to meet the SDG Goals by 2030.
·       Ring fencing (of about 20%) of resources devolved to the States for School Education OR clear award for States and UTs for implementation of RTE Act, 2009 and other essential requirements (on the lines of 13th Finance Commission).

The Commission is scheduled to hold its second meeting with MHRD on 22nd February to deliberate on the issues of Higher Education.
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INDIA SIGNS LEGAL AGREEMENTS WITH THE WORLD BANK FOR FIRST PROGRAMMATIC WATER SUPPLY

The Government of India, Government of Himachal Pradesh (GoHP) and the World Bank signed a $40 Million Loan Agreement to help bring clean and reliable drinking water to the citizens of the Greater Shimla area, who have been facing severe water shortages and water-borne epidemics over the last few years. The Shimla Water Supply and Sewerage Service Delivery Reform Programmatic Development Policy Loan 1 is expected to improve water supply and sanitation (WSS) services in and around the iconic hill city of Shimla.





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Thanks & Regards,
CS Meetesh Shiroya    

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