National Project on Climate Resilient Agriculture

Climate Change, caused by the increased concentration of greenhouse gases (GHGs) in the atmosphere, has emerged as the most prominent global environmental problem. Most of the countries including India are facing the problems of rising temperature, melting of glaciers, rising of sea-level leading to inundation of the coastal areas, changes in precipitation patterns leading to increased risk of recurrent droughts and devastating floods, threats to biodiversity, an expansion of pest and a number of potential challenges for public health.

Realizing that the climate change is likely to have major impacts on agriculture, the Government through Indian Council of Agricultural Research (ICAR) has assessed the impact of climate change on Indian agriculture under different scenarios using crop simulation models. 

The Indian Council of Agricultural Research (ICAR) has conducted climate change impact analysis on crop yields through various centres in different parts of the country using crop simulation models (INFO-CROP and HAD CM3) for 2020, 2050 and 2080.

The results indicate variability in temperature and rainfall pattern with significant impacts on crop yields. These studies projected reduction in yields of irrigated rice by about 4% in 2020, 7% in 2050 and 10% in 2080. 

The Government through Indian Council of Agricultural Research (ICAR) has initiated a network project on ‘National Initiative on Climate Resilient Agriculture’ (NICRA) to enhance resilience of Indian agriculture through Strategic Research on adaptation and mitigation (covering crops, livestock, fisheries and natural resource management), Technology Demonstration, Capacity Building and Sponsored/Competitive Grant Projects.

Objectives:

To enhance the resilience of Indian agriculture covering crops, livestock  and fisheries to climatic variability and climate change through development and application of improved production and risk management technologies•  To demonstrate site specific technology packages on farmers’ fields for adapting to current climate  risks• To enhance the capacity building of scientists and other stakeholders in climate resilient agricultural research and its application.

XII Five Year Plan objectives related to the project are:• Strengthening the existing network research on adaptation and mitigation (food crops, horticulture, livestock and fishery) with more infrastructure and capacity building.• Setting up of high through put phenotyping platforms and temperature, CO2, ozone gradient facilities at identified locations/ institutions including North East region.• Strengthening research on  climate sensitive crops like cotton, maize, sugarcane, onion, etc. which are critical for India’s farm GDP/exports but not covered in the XI Plan.• Projected impacts on water availability at the river basin level and participatory action research at large number of sites on evolving coping strategies through water saving technologies.• Evolving a national level pest and disease monitoring system to assess the changing pest/disease dynamics under changed climate (both in crops and livestock).• Strengthening crop simulation and climate scenario down-scaling modeling capabilities at major Institutes and a dedicated unit at IARI, New Delhi.• Piloting the operationalization of the district/block level agromet advisory services through KVKs/district line departments and contingency plans during droughts and floods.• Expanding the technology demonstration and dissemination to 130 vulnerable districts of the country.

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Interim Budget & Vote on Account

What is it?

• Interim budget is basically a vote-on-account that authorizes the government to carry out expenditure on different heads for a certain part of the financial year.

• Since the government of the day will not be presenting the budget for the full year, it will need funds in the next financial year (beginning April) to carry out its functions till the time a new government is formed and then gets the budget passed. Thus, the need for an interim budget.

• As per the law, it is necessary for the central government to have Parliament’s approval to raise tax revenue or incur expenditure. Article 265 of the Indian Constitution, for instance, says, “No tax shall be levied or collected except by authority of law.” Similarly, article 266 talks about the conditions for expenditure.

According to a news report by the Press Trust of India, Chidambaram was quoted as saying, “We can make any proposal short of amending any law. We cannot propose amendments to the Income-tax Act, Customs Act or the Excise Act. But any proposal short of amending a law can be made. We can also outline vision for the future.”

In the past two instances of when interim budgets were presented (2004-05 and 2009-10), the government of the day sought the nod of Parliament for carrying out expenditure in the first four months of the financial year.

Going into the technicalities between Interim Budget and Vote -on-Account ...!

Are a vote-on-account and an interim Budget the same?

No. While a vote-on-account deals only with the expenditure side of the government's budget, an interim Budget is a complete set of accounts, including both expenditure and receipts.

So what is a full Budget?

The Budget is a statement of the financial position of an administration for a definite period of time based on estimates of expenditures during the period and proposals for financing them. A full budget thus spells out both the manner in which the money is to be spent and how it is to be raised.

Why a vote-on-account and not an interim Budget?

A caretaker government typically opts for a vote-on-account, as it is regarded improper for an outgoing government to impose on its successor changes that may or may not be acceptable to the incoming government.

Can a caretaker government not present a full Budget?

• Yes it can. Since the concept of 'caretaker government' does not exist in the Indian Constitution, legally there is no distinction between caretaker government and a normal one.

• Technically, it is not necessary for a government to present a vote-on-account in an election year. But a full Budget just before the elections makes a mockery of the whole exercise.

Can the finance minister make policy statements while presenting the vote-on-account?

• Barring any announcement on taxation, the finance minister's speech before seeking Parliament's approval of the vote-on-account can contain his intentions on economic policy.

• When former finance minister Yashwant Sinha presented the vote-on account in 1991, he announced the Chandra Shekhar government's plan to divest government equity in public sector undertakings.

For how long can a vote-on-account be in force?

• Normally, the vote-on-account is taken for two months only. But during election year or when it is anticipated that the main Demands and Appropriation Bill will take longer time than two months, the vote-on-account may be for a period extending two months.

• Typically this period does not exceed six months, as that is the maximum gap possible between two sittings of the Parliament.

• Normally a vote-on-account is in operation till the full Budget is passed.

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National Solar Mission

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, gave its approval for stepping up of India’s solar power capacity target under the Jawaharlal Nehru National Solar Mission (JNNSM) by five times, reaching 1,00,000 MW by 2022. The target will principally comprise of 40 GW Rooftop and 60 GW through Large and Medium Scale Grid Connected Solar Power Projects. With this ambitious target, India will become one of the largest Green Energy producers in the world, surpassing several developed countries.

The total investment in setting up 100 GW will be around Rs. 6,00,000 cr. In the first phase, the Government of India is providing Rs. 15,050 crore as capital subsidy to promote solar capacity addition in the country. This capital subsidy will be provided for Rooftop Solar projects in various cities and towns, for Viability Gap Funding (VGF) based projects to be developed through the Solar Energy Corporation of India (SECI) and for decentralized generation through small solar projects. The Ministry of New and Renewable Energy (MNRE) intends to achieve the target of 1,00,000 MW with targets under the three schemes of 19,200 MW.

Apart from this, solar power projects with investment of about Rs. 90,000 crore would be developed using Bundling mechanism with thermal power. Further investment will come from large Public Sector Undertakings and Independent Power Producers (IPPs). State Governments have also come out with State specific solar policies to promote solar capacity addition.

The Government of India may also approach bilateral and international donors as also the Green Climate Fund for achieving this target. Solar power can contribute to the long term energy security of India, and reduce dependence on fossil fuels that put a strain on foreign reserves and the ecology as well. The solar manufacturing sector will get a boost with this long term trajectory of solar capacity addition. This will help in creation of technology hubs for manufacturing. The increased manufacturing capacity and installation are expected to pave way for direct and indirect employment opportunities in both the skilled and unskilled sector.

The new solar target of 100 GW is expected to abate over 170 million tonnes of CO2 over its life cycle. This Solar Scale-up Plan has a target of 40 GW through Decentralized Solar Power Generation in the form of Grid Connected Rooftop Projects. While Decentralized Generation will stabilise the grid, it will minimise investment on power evacuation.

To facilitate such a massive target, the Prime Minister’s Office has been pushing various Ministries to initiate supporting interventions, like:-

a) incorporating changes in land use regulations and tenancy laws to facilitate aggregation and leasing of land by farmers/ developers for solar projects;

b) identification of large chunks of land for solar projects;

c) identification of large government complexes/ buildings for rooftop projects;

d) clear survey of wastelands and identification of transmission/ road infrastructure using satellite technology for locating solar parks;

e) development of power transmission network/ Green Energy Corridor;

f) setting up of exclusive parks for domestic manufacturing of solar PV modules;

g) provision of roof top solar and 10 percent renewable energy as mandatory reform under the new scheme of Ministry of Urban Development;

h) amendments in building bye-laws for mandatory provision of roof top solar for new construction or higher FAR;

i) considering infrastructure status for solar projects; raising tax free solar bonds; providing long tenor loans; making roof top solar a part of housing loan by banks/ NHB and extending IIFCL credit facility to such projects by the Department of Financial Services;

j) suitable amendments to the Electricity Act for strong enforcement of Renewable Purchase Obligation (RPO) and for providing Renewable Generation Obligation (RGO);

k) incorporating measures in Integrated Power Development Scheme (IPDS) for encouraging distribution companies and making net-metering compulsory.

Background:

JNNSM was launched in 2009 with a target for Grid Connected Solar Projects of 20,000 MW by 2022. In the last two to three years, the sector has witnessed rapid development with installed solar capacity increasing rapidly from 18 MW to about 3800 MW during 2010 - 15. The price of solar energy has come down significantly from Rs.17.90 per unit in 2010 to under Rs.7 per unit, thereby reducing the need of VGF / GBI per MW of solar power. With technology advancement and market competition, this Green Power is expected to reach grid parity by 2017-18. These developments would enable India to achieve its present target of 20,000 MW. But considering its international commitment towards Green and climate friendly growth trajectory, the Government of India has taken this path-breaking decision.

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Olive ridley Turtle

Efforts to conserve Olive Ridley Turtles:

• Wildlife authorities have launched a massive exercise to conserve Olive Ridley turtles in the Krishna Wildlife Sanctuary (KWS).
• An unprecedented number of over 10,500 eggs of the turtles have been collected since early March. They are being conserved in the rookeries set up within the KWS limits.
• 139 artificial nests have been arranged in the three rookeries set up at Sangameswaram, lighthouse area, and Jinkapalem of Nagayalanka mandal as part of the in situ conservation method.
• The incubation period ranges from 45 to 60 days
• Members of the Yanadi tribe are directly involved in the conservation bid. They have been given the task of collecting the eggs on the beach and maintaining the rookeries.

Threats: 

• Approximately 1 hatchling survives to reach adulthood for every 1000 hatchlings that enter the sea waters. 
• Olive-ridleys face serious threats across their migratory route, habitat and nesting beaches, due to human activities such as turtle unfriendly fishing practices, development and exploitation of nesting beaches for ports, and tourist centres. 
• these turtles and their products is banned under CITES Appendix I, still extensively poached for their meat, shell and leather, and their eggs, 
• Accidental killing of adult turtles through entanglement in trawl nets and gill nets due to uncontrolled fishing 
• To reduce accidental killing in India, the Orissa government has made it mandatory for trawls to use Turtle Excluder Devices (TEDs), a net specially designed with an exit cover which allows the turtles to escape while retaining the catch. However, this has been strongly opposed by the fishing communities as they believe TEDs result in loss of considerable amount of the catch along with the turtle. 

All About Olive Ridley Turtles

1. The Olive ridley turtles (also known as the Pacific ridley sea turtle) are the smallest and most abundant of all sea turtles found in the world, inhabiting warm waters of the Pacific, Atlantic and Indian oceans. 
2. These turtles, along with their cousin the Kemps ridley turtle, are best known for their unique mass nesting called Arribada, where thousands of females come together on the same beach to lay eggs. 
3. Though found in abundance, their numbers have been declining over the past few years. Classified as ‘Vulnerable’ by the International Union for Conservation of Nature (IUCN) several Olive Ridley turtles lay eggs during this time of the year along the Visakhapatnam coast, considered a sporadic nesting zone.
4. Growing to about 2 feet in length, and 50 kg in weight, the Olive ridley gets its name from its olive colored carapace, which is heart-shaped and rounded. 
5. Olive Ridley Turtles take 25 to 30 years to reach adulthood but the survival rate of the young ones is abysmally low.
6. They are carnivores, and feed mainly on jellyfish, shrimp, snails, crabs, molluscs and a variety of fish and their eggs. 
7. Interestingly, females return to the very same beach from where they first hatched, to lay their eggs. During this phenomenal nesting, up to 600,000 and more females emerge from the waters, over a period of five to seven days, to lay eggs. 
8. They lay their eggs in conical nests about one and a half feet deep which they laboriously dig with their hind flippers. 
9. The coast of Orissa in India is the largest mass nesting site for the Olive-ridley, followed by the coasts of Mexico and Costa Rica. 
10. After about 45-65 days, the eggs begin to hatch, and these beaches are swamped with crawling Olive-ridley turtle babies, making their first trek towards the vast ocean. 
11. During this trek they are exposed to predators like jackals, birds, hyenas, fiddler crabs, and feral dogs lurking around, waiting to feed on them. 
12. WWF-India, along with the fishermen community, has been involved in protecting the Olive ridley rookery at the mass nesting site at Rushikulaya, in Orissa, by fencing off the nesting area and patrolling it till hatching and ensuring a safe passage for the hatchlings to the sea. 

NTPC, forest dept sign MoU to protect Olive Ridley turtles

• The National Thermal Power Corporation (NTPC) has joined hands with the state forest department to protect the endangered species along the nine districts of Andhra Pradesh.
• NTPC Shimhadri handed over a cheque for Rs 1 crore to the forest department for carrying out the conservation works in AP for the current financial year.
• As part of the conservation programme that will be spread over five years, NTPC will contribute Rs 4.6 crore under which inventory mapping of breeding sites of Olive Ridleys along with identification of nesting and breeding habits along the shore line will be undertaken.
• The conservation programme will also develop guidelines to safeguard and minimise turtle mortality apart from developing the local and national cooperative and taking collaborative action for turtle conservation. The conservation project envisages involving local communities, NGOs, forest department and other stakeholders in protection and conservation of in-situ and ex-situ of nests thus providing livelihood, construction and repairing of hatcheries, awareness campaigns and knowledge sharing in Srikakulam, Vizianagaram, Visakhapatnam, East Godavari, West Godavari, Krishna, Guntur, Prakasam and Nellore districts.

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Pradhan Mantri Ujjwala Yojana | Free LPG Gas Connection Scheme

A unique Indian central government scheme to extend availability of cooking gas to the women who belong to households that are Below Poverty Line (BPL). It is well known that India with its vast rural area have a huge population who are yet resorting to usage of cooking fuel that is both unclean as well as damaging to the environment at large. Due their low income status, such families are unable to afford the LPG which is used in other households.

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13th ANNUAL INDIA-RUSSIA SUMMIT

Venue: New Delhi

• The Indian side was led by Prime Minister Manmohan Singh while the Russian delegation was led by the visiting President Vladimir V. Putin
• Setting aside their differences over civil nuclear cooperation and Russian telecom giant Sistema’s investment, India and Russia have signed two key defence deals worth about Rs 25,000 crore for the supply of 42 new Su-30 MKI combat aircraft and 71 Mi-17V5 helicopters to India.
• The two countries also inked other agreements in fields, such as space, trade and investment, science and technology, education and culture, reinforcing the strong dynamics of their time-tested friendship.

 NEW ACCORD ON CIVIL NUCLEAR ENERGY:

• Under the new accord, Russia has committed that it would build another nuclear power plant in Koodankulam (Tamil Nadu) where it has already set up two plants for generating nuclear energy.
• The new plant will have a capacity of producing 1000 mw of nuclear energy every year. As a result, India’s nuclear energy generating capacity will go up to over 20,000 mw.

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REGULATIONS ON SURROGACY

• While the new Assisted Reproductive Technology (ART) Regulation Bill and Rules, 2010, are still in the womb, the non-statutory Indian Council of Medical Research (ICMR) Guidelines, 2005, are being followed.
• As per the latest and new Indian visa regulations, effective November 15, 2012, all foreigners visiting India for commissioning surrogacy will be required to apply for medical visas and cannot avail of simple tourist visas for surrogacy purposes. 

 NEW REGULATIONS:

• Foreigners visiting India for commissioning surrogacy must apply for medical visa

• The man and woman should be duly married and the marriage should have sustained for at least two years
• A letter from the embassy should be enclosed with the visa application stating that the country recognizes surrogacy and the child born thereof will be treated as a biological child of the couple
• The couple will furnish an undertaking that they would take care of the child
• The treatment would be done only at registered ART clinics recognized by the ICMR
• The couple should produce a notarized agreement between the applicant couple and the prospective surrogate mother
•  For return journey, the couple will need exit permission from FRRO/FRO
• The couple can be permitted to visit India on a reconnaissance trip on tourist visa, but no samples can be given to any clinic during such visit 

  RECOMMENDATIONS OF LAW COMMISSION:

• Surrogacy arrangement will continue to be governed by contract among parties, which will contain all the terms requiring consent of surrogate mother, medical procedures, reimbursement, willingness to hand over the baby, etc. This arrangement should not be for commercial purposes.
• Surrogacy arrangement should provide for financial support for surrogate baby in the event of death of the commissioning couple or individual before delivery, or divorce between the intended parents and subsequent unwillingness to take the baby.
• Life insurance covers for surrogate mother.
• One of the intended parents should be a donor to foster the bond of love and check chances of child abuse.
• Legislation should recognize a surrogate child to be the legitimate child of the commissioning parent(s) without there being any need for adoption or even declaration of guardian.
• The birth certificate of the child should contain the name(s) of the commissioning parent(s) only.
• Right to privacy of the donor as well as surrogate mother should be protected.
• Sex-selective surrogacy should be prohibited.
• Cases of abortions should be governed by the Medical Termination of Pregnancy Act.
• The ART Bill, 2010, has legal lacunae and lacks creation of a specialist legal authority for determination and adjudication of legal rights of parties, in addition to falling in conflict with existing family laws. These pitfalls should not become a graveyard for a law yet to be born. Surrogacy needs to be regulated by a proper statutory law. Till then, the visa regulations will provide succor and relief.

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Crime and Criminal Tracking Network System

• CCTNS: Crime and Criminal Tracking Network System
• To be launched at 5,000 locations, including 3,000 police stations, across the country on January 4.
• The project is based on the principle of “centralized planning and decentralized implementation”. 
• The Ministry of Home Affairs (MHA)-backed project will provide a national databank of crime and criminals and their biometric profiles.
• This database will be connected with databases of other agencies of the criminal justice system like courts, jails, immigration and passport authorities.

 APPLICATIONS:

• The system will have a wide-ranging application. It will automate police functioning; make it transparent, accountable, effective and efficient.
•  Nationwide data will be available at 15,000 police stations and offices of middle and senior rank officials.
• It will also help in knowing progress of investigation in criminal cases and status of court proceedings

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INDO-FRENCH TIES

• The visit to New Delhi by French President Francois Hollande, for the first time to any Asian capital after he came to power in May last year, was a significant development.
• It came after India supported the French military action in Mali to restore the government’s authority.
• The deals for the Rafale aircraft and the Maitri surface-to-air missiles, for which negotiations have been completed, will mark a new beginning in Indo-French relations as these two defence items will be co-produced in India.
• The two countries have decided to establish an annual dialogue between their Finance Ministers to boost bilateral economic relationship.
• On Afghanistan, the two sides expressed commitment to the key principles for a peaceful inter-afghan dialogue: acceptance of the Afghan Constitution, renunciation to violence and breaking links with terrorism.
• France is among the countries which agreed to go in for nuclear trade with India soon after the India-US civilian nuclear deal
• The French are committed to building six next generation European pressurized reactors at Jaitapur.
• France has always been a supporter of India’s case of becoming a permanent member of the United Nations Security council.

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ECONOMIC SURVEY 2012-13

•  Presented by: Finance Minister P. Chidambaram
• The survey takes stock of the economic performance of the country over the preceding 12 months and serves as a guidebook for the budget estimates for the following financial year.

 HIGHLIGHTS:

• India's GDP growth seen around 5 per cent in 2012/13
• Economy likely to grow 6.1-6.7 per cent in 2013/14
•  Fiscal deficit in FY13 to be contained at 5.3 per cent
•  Fiscal consolidation roadmap says deficit at 3 per cent by FY17
•  Addressing key fiscal risks of petroleum subsidies is critical for fiscal consolidation
• Widening tax base and prioritizing expenditure seen as key ingredients of credible medium-term fiscal consolidation plan
• Raising tax to GDP ratio to more than 11 pct seen as critical for sustaining fiscal consolidation
• WPI inflation may decline to 6.2-6.6 per cent
•  Diesel price hike to put upward pressure on inflation
•  Economy looking up, downturn more or less over. Economic slowdown a wake-up call for stepping up reforms
• Trade, current account deficit matter of concern
• Focus on curbing imports, making oil prices more market determined to rein in current account deficit
•  Recommends curbing gold imports to reign in current account deficit
• Industrial output seen growing around 3 pct in 2012/13
•  Need long-term finance for infrastructure projects
• Foreign Institutional Investors (FIIs) flows need to be targeted towards long-term rupee instruments
• India on verge of creating quality jobs to seize 'demographic dividend'
• The Economic Survey is integral to the budget process, bringing out the economic trends in the country on the eve of the budget presentation. This facilitates a better appreciation of resource mobilization and allocation in the budget. The economic survey released by the government paints a "cautiously optimistic" picture of the economy.

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NATIONAL CHILD POLICY

• For the first time since Independence, India has adopted a policy document at the highest level to recognize every child’s right to survival, development, protection and participation and define a child as a person below 18 years of age.
• The Policy approved by the Cabinet will inform all existing laws related to children and prevent future conflicts on the issue of child’s definition
• The change in child’s definition stems from India’s commitment to the UN Convention on Rights of the Child which it ratified long ago but failed to bring its laws in line with the UNCRC.

 HIGHLIGHTS:

• The National Policy for Children 2030 states for the first time that a child will be any person below the age of 18 years. It adds that all existing legislations will have to change to honour the policy.
• The Prohibition of Child Marriage Act 2006 will have to be amended to define all children below 18 years. At present, this law differentiates between male and female children defining a child as anyone below 21 years in case of “males” and “anyone below 18 years in case of “females”.
• The Prohibition of Child Labour Act will have to change as it currently defines a child as someone below 14 years for the purpose of child labour
• The Policy for the first time recognizes the children’s right to life, survival and development and goes beyond their physical existence.
• India adopted the last National Child Policy way back in 1974. The old policy stressed Integrated Child Development Services, immunization and child labour. But since the advent of globalization, rise in crimes against children and strides in mass media, the Government had not revised its policy which could guide the national plans properly.

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FLAG MEET WITH CHINA

• A second flag meeting between India and China to sort out the issue of intrusion by Chinese troops along the Line of Actual Control (LAC) in northern Ladakh remained inconclusive even as the two countries traded charges against each other.
• Delhi reminded Beijing that the act of its troops of not moving back was a violation of an‘operational’ agreement signed between the two nations in April 2005. The flag meeting was held between Brigadier-level officers at Chushul in eastern Ladakhalong the LAC.

 

CURRENT STANDOFF:

• The current standoff is a result of Chinese intrusion in the Daulat Beg Oldie sector

 BORDER FACE-OFF:

• The Indian side proposed that troops on either side withdraw to the pre-incursion location at the second flag meet
• This was not agreeable to China, who, in turn, accused India of getting aggressive in the Daulat Beg Oldie sector in northern Ladakh
• Chinese troops had on April 15 pitched a tent around 8 km inside the LAC in the Raki Nallah area in northern Ladakh

 BEIJING’S OLD WAYS:

• The current incursion, wherein a tent has been pitched in Indian territory, is the first such incident in Ladakh after 1962
• In 1987, Chinese troops had resorted to a similar exercise at Sum Dorong Chu, north of Tawang in Arunachal. India had ramped up its forces and then withdrawn. China still holds that territory

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Doing Business Report 2013

The Doing Business Project provides objective measures of business regulations and their enforcement across 185 economies and selected cities at the sub-national and regional level.

The Doing Business Project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle.

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages countries to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each country.

In addition, Doing Business offers detailed sub-national reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the country or region and with the 185 economies that Doing Business has ranked.

The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 185 economies.

Doing Business captures several important dimensions of the regulatory environment as they apply to local firms. It provides quantitative measures of regulations for starting a business, dealing with construction permits, getting electricity,  registering property, getting credit, protecting investors, paying taxes, trading  across borders, enforcing contracts and  resolving insolvency. Doing Business also looks at regulations on employing workers. Pending further progress on research in this area, this year’s report does not present rankings of economies on the employing workers indicators or include the topic in the aggregate ranking on the ease of doing business. It does present the data on the employing workers indicators.

The economies that rank highest on the ease of doing business are not those where there is no regulation—but those where governments have managed to create rules that facilitate interactions in the marketplace without needlessly hindering the development of the private sector. In essence, Doing Business is about smart business regulations, not necessarily fewer regulations.

In constructing the indicators the Doing Business project uses 2 types of data. The first come from readings of laws and regulations in each economy

Key findings:

a) Singapore topped the global ranking on the ease of doing business for the seventh consecutive year, followed by Hong Kong SAR, China,; New Zealand; the United States; and Denmark.

b) Georgia was a new entrant to the top 10.

c) Poland was the global top improver in the past year. It enhanced the ease of doing business through four institutional or regulatory reforms, making it easier to register property, pay taxes, enforce contracts, and resolve insolvency.

d) Besides Poland, nine other economies are recognized as having the most improved ease of doing business across several areas of regulation as measured by the report: Sri Lanka, Ukraine, Uzbekistan, Burundi, Costa Rica, Mongolia, Greece, Serbia, and Kazakhstan.

e) The WB's report has ranked Sri Lanka at 81st, Maldives at 95th, Pakistan at 107th, Nepal 108th, India 132nd, Bangladesh 129th, Bhutan 148th and Afghanistan 168th in the 185 economies of the world.

f) Worldwide, 108 economies implemented 201 regulatory reforms in 2011/12 making it easier to do business as measured by Doing Business. Reform efforts globally have focused on making it easier to start a new business, increasing the efficiency of tax administration and facilitating trade across international borders. Of the 201 regulatory reforms recorded in the past year, 44% focused on these 3 policy areas alone. 

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FDI in Single Brand Retail

Retailing in India is one of the pillars of its economy and is estimated to be of US$ 450 billion. 

The term ‘retail’ has been defined as a sale for final consumption in contrast to a sale for further sale or processing (i.e. wholesale). Thus, retailing can be said to be the interface between the producer and the individual consumer buying for personal consumption. 

Retail industry in India is divided as: 

1) Organized Retailing: Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses.

2) Unorganized Retailing: Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

SINGLE BRAND RETAIL

51 per cent investment in a single brand retail outlet has been permitted since 2006 under the Government route. But FDI in single brand product retail trading under the FDI

Policy was subject to the following conditions:

• Products to be sold should be of a 'Single Brand' only.

• Products should be sold under the same brand internationally i.e. products should be sold under the same brand in one or more countries other than India.

• 'Single Brand' product-retailing would cover only products which are branded during manufacturing.

•  The foreign investor should be the owner of the brand.

FDI in single-brand retail implies that a retail store with foreign investment can only sell one brand. For example, if Adidas were to obtain permission to retail its flagship brand in India, those retail outlets could only sell products under the Adidas brand. For Adidas to sell products under the Reebok brand, which it owns, separate government permission is required and (if permission is granted) Reebok products must then be sold in separate retail outlets.

Recently the Cabinet has approved the proposal of the Department of Industrial Policy & Promotion for amendment of the existing policy on Foreign Direct Investment in Single-Brand Product Retail Trading. 

Vide Press Note 1(2012 Series) dated 10.1. 2012, Government had permitted FDI, up to 100%, in single brand product retail trading, subject to specified conditions, including, interalia, the conditions that: 

  a) The foreign investor should be the owner of the brand.

 b) In respect of proposals involving FDI beyond 51%, 30% sourcing would mandatorily have to be done from SMEs/ village and cottage industries artisans and craftsmen.

The CCEA has approved modification of the above mentioned conditions, for the activity of single brand product retail trading, as under: 

 a) Only one non-resident entity, whether owner of the brand or otherwise, shall be permitted to undertake single brand product retail trading in the country, for the specific brand, through a legally tenable agreement, with the brand owner for undertaking single brand product retail trading in respect of the specific brand for which approval is being sought. The onus for ensuring compliance with this condition shall rest with the Indian entity carrying out single-brand product retail trading in India. The investing entity shall provide evidence to this effect at the time of seeking approval, including a copy of the licensing/ franchise/sub-licence agreement, specifically indicating compliance with the above condition. 

 b) In respect of proposals involving FDI beyond 51%, sourcing of 30%, of the value of goods purchased, will be done from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors, where it is feasible. 

`Small industries` would be defined as industries which have a total investment in plant & machinery not exceeding US $ 1.00 million. This valuation refers to the value at the time of installation, without providing for depreciation. Further, if at any point in time, this valuation is exceeded, the industry shall not qualify as a `small industry` for this purpose. The compliance of this condition will be ensured through self-certification by the company, which could be subsequently checked, by statutory auditors, from the duly certified accounts, which the investors will be required to maintain. 

Regarding the condition that 30% sourcing be mandatorily done from Indian small industry, investors have pointed out that it would be difficult to comply with this condition in the case of very specialized/high technology items. Global single brand retailers are often engaged in the business of retailing specialty/high-tech products. Such products are niche products, wherein it may not be viable for the foreign investors to build capacities wherever they engage in retailing, owing to the specialized requirements of quality and precision which the local small industry may not be able to provide.

Investors are, therefore, of the view that the condition of 30% mandatory sourcing from Indian small industries/ village and cottage industries, artisans and craftsmen, is acting as a deterrent to the desired foreign investment in this activity. 

The other category of products relate to the entire range from household appliances, utensils, furniture, crockery to furnishings, etc. These products are far more amenable to sourcing from MSMEs, village and cottage industries, artisans and craftsmen.

Therefore, the proposed modification of the condition is envisaged to take into account the circumstances of both the specialized/high technology niche products, as well as the general category, covering a wide range of items. The fact that 30% domestic sourcing is being mandated would imply that the single brand retailers would have to build production capacities in the country, either in existing units, or set up new ones, catering specifically to their sourcing requirements. Hence, even the 30% domestic sourcing is expected to develop production capacities in the country, with the attendant global best practices, relating to design, production and quality. Since single brand retailers are global players, Indian suppliers and vendors to these retailers would have an opportunity of becoming a part of their global supply chains. Thus, Indian products could find their way in the stores of these single brand retailers located in other countries, thereby augmenting exports from India as well. 

Thus, the amended condition relating to sourcing of 30%, of the value of goods purchased, being done from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors, where feasible, is expected to benefit Indian producers, including the Indian handicrafts sector, which provides livelihood to millions and is important from the point of low capital investment, high value-addition and high potential for export, as also to meet the critical need to integrate Indian producers with the domestic and global markets. Skill integration with craftsmen abroad is likely to help develop synergies with international brands and generate more employment. The consequential benefits, arising from the integration of global best practices in management, along with global standards in quality, design, packaging and production, would help build capacities of local producers, by making it worthwhile for them to scale-up their production, thereby creating a multiplier effect on employment and income generation. This would also lead to up-gradation of technology, which, in turn, would have a further multiplier effect on the economy. 

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S Korea, US extend nuclear pact

The U.S. and South Korea are extending for two years their current civilian nuclear agreement and postponing a contentious decision on whether Seoul will be allowed to reprocess spent fuel as it seeks to expand its atomic energy industry. The current pact, signed in 1974, had been due to expire next year.

South Korea is the world’s fifth-largest nuclear energy producer and is planning to expand domestic use of nuclear power and exports of nuclear reactors. South Korea argues that it needs to produce its own nuclear fuel to feed the 23 reactors that provide one-third of its energy needs and to deplete stockpiles of spent fuel rods which it says are reaching full capacity. 

The United States has refused on proliferation grounds, as reprocessing creates stockpiles of separated plutonium that can then be enriched to weapons-grade. South Korea has proposed pyro-processing, a new technique which is considered less conducive to proliferation as it leaves separated plutonium mixed with safer fissile materials.

The issue of allowing South Korea to produce its own nuclear fuel has become more vexed in the light of North Korea's advancing nuclear weapons programme. This has led to growing calls from an influential minority in South Korea for the country to have its own deterrent, rather than to keep relying on the US nuclear umbrella.

The extension was agreed to allow more negotiations on the heated topic of allowing the South to reprocess spent fuel rods.

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EU ended sanctions against Myanmar

Foreign ministers from the 27 nations in the European Union agreed in Luxembourg to lift trade and economic sanctions against Myanmar in recognition of the country's ongoing democratic reforms, but arms embargo would stay in place.Earlier hundreds of people were targeted by a travel ban and asset freeze, while on the economic front the EU had barred investments and banned imports of the country’s lucrative timber, metals and gems.

Whereas In April last year, the European Union began easing sanctions against Myanmar as the military, in power for decades, progressively ceded power to civilians and implemented reforms of the economy. The Foreign ministers had agreed to a one-year suspension of measures targeting almost 500 individuals and more than 800 firms.

Now after removing the sanctions - the EU will also look at the feasibility of a bilateral investment agreement, as well as more development assistance to assist Myanmar’s economy. 

But still there were significant challenges to be addressed,” in particular an end to hostilities in Kachin state and improving the plight of the Rohingya people. HRW has in a new report accused authorities in Myanmar, including Buddhist monks, of fomenting an organised campaign of ethnic cleansing against the country’s Rohingya Muslim minority that killed hundreds of people and forced 125,000 from their homes. While state security forces sometimes intervened to protect fleeing Muslims, more often they fuelled the unrest either by standing by idle or directly participating in atrocities.

In western Myanmar, the crisis goes back decades and is rooted in a highly controversial dispute over where the region’s Muslim inhabitants are really from. Although many Rohingya have lived in Myanmar for generations, they are widely denigrated by majority Buddhists as foreign intruders who came from neighbouring Bangladesh to steal scarce land. The U.N. estimates their number at 800,000. The government does not count them as one of the country’s 135 ethnic groups, and like Bangladesh denies them citizenshi

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CAG report on MGNREGA

An audit report of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has slammed the State government for non-performance and poor maintenance of records in implementing the scheme from 2007 to 2012. The performance audit report of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has shown significant decline in per rural household employment generation in the last two years.

CAG conducted door-to-door survey to identify persons willing to register under the MGNREGS was not conducted in 39 grama panchayats and tampering with muster rolls was noticed in all grama panchayats in Thiruvananthapuram. Delay in wage payment from 23 to 138 days was reported in all grama panchayats. Besides, payment of Rs.12.86 lakh was made without measuring the works and wage slips were not generated in 37 of the 39 grama panchayats. Details of the wages paid were not recorded on the job card at most of the grama panchayats,.

Significant irregularities are:

a) The per rural household employment has declined from 54 days in 2009-10 to 43 days in 2011-12.
b) There is a substantial decline in the proportion of works completed in 2011-12. The works amounting to around Rs 4,070 crore were incomplete even after one to five years of launching. It points to impermissible works undertaken to the tune of about Rs 2,252 crore.
c) The audit report also observes that Bihar, Maharashtra and Uttar Pradesh which constituted 46 per cent of the rural poor utilised only 20 per cent of the total funds released under the Scheme. This indicated that the correlation between poverty levels and implementation of MGNREGA was not very high, the report states.
d) The CAG audit blames the ministry for relaxing all conditionalities and releasing a sum of Rs 1,960.45 crore in March, 2011 to the states, contravening norms of financial accountability. An amount of Rs 4,072.99 crore was released by the ministry during 2008-12 to states for use in the subsequent financial year, in contravention of budgetary provisions and General Financial Rules, the report states.

MGNREGA was enacted with the objective of enhancing livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year, to every household whose adult members volunteer to do unskilled manual work.

The Act initially came into force in 200 districts with effect from 2 February 2006 and was extended to cover all the rural districts by 1 April 2008.

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