Government constitutes Banks Board Bureau (BBB) to Improve The Governance of Public Sector Banks: Shri Vinod Rai, Former CAG of India, appointed as the Chairman of Banks Board Bureau

Government constitutes Banks Board Bureau (BBB) to Improve The Governance of Public Sector Banks: Shri Vinod Rai, Former CAG of India, appointed as the Chairman of Banks Board Bureau

With a view to improve the Governance of Public Sector Banks (PSBs), the Government had decided to set up an autonomous Banks Board Bureau. The Bureau will recommend for selection of heads - Public Sector Banks and Financial Institutions and help Banks in developing strategies and capital raising plans. Now, the Government has announced the constitution of Banks Board Bureau which will have three ex-officio members and three expert members in addition to Chairman. All the Members and Chairman will be part time. The BBB, which will start functioning from 1^st April, 2016 is constituted as follows:

Sl No.	Name/Designation	Designation
1	Shri Vinod Rai, Former CAG of India	Chairman
2	Secretary, Department Financial Services	Ex-officio member
3	Secretary, Department of Public Enterprises	Ex-officio member
4	Deputy Governor, Reserve Bank of India	Ex-officio member
5	Shri Anil K. Khandelwal, Former CMD of Bank of Baroda	Member
6	Shri H.N. Sinor, Former Joint MD, ICICI Bank	Member
7	Ms. Rupa Kudwa, Former MD&CEO, CRISIL	Member

Atal Mission plans

Atal Mission plans

Ministry of Urban Development has approved an investment of Rs.495.11 cr in water supply, sewerage networks and septage management, storm water drains, urban transport and provision of green spaces in 13 cities in 6 states under Atal Mission for Rejuvenation & Urban Transformation (AMRUT) Action Plans for 2015-16.

• Six states are- Assam, Jammu & Kashmir, Goa, Tripura, Meghalaya and Puducherry.
• Out of the total project cost of Rs.495.11 cr, Central Government will provide an assistance of Rs.425 cr.
• Central Government will bear 90% of the project costs in respect of North-Eastern States and J&K, 100% for Puducherry and 50% of the cost in case of Goa.
• With these approvals, the Ministry of Urban Development has so far approved Atal Mission Action Plans for 2015-16 for 483 mission cities in 26 states and Union Territories with a total investment of Rs.20,491 cr.

Atal Mission for Rejuvenation and Urban Transformation (AMRUT):

• AMRUT is the new avatar of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
• It adopts a project approach to ensure basic infrastructure services relating to water supply, sewerage, storm-water drains, transportation and development of green spaces and parks with special provision for meeting the needs of children.
• Under this mission, 10% of the budget allocation will be given to states and union territories as incentive based on the achievement of reforms during the previous year.
• It is being implemented in 500 locations with a population of one lakh and above.
• It would cover some cities situated on stems of main rivers; a few state capitals and important cities located in hilly areas, islands and tourist areas.
• Under this mission, states get the flexibility of designing schemes based on the needs of identified cities and in their execution and monitoring.
• States will only submit state annual action Plans to the centre for broad concurrence based on which funds will be released.
• Under the mission, states will transfer funds to urban local bodies within 7 days of transfer by central government and no diversion of funds to be made failing which penal interest would be charged besides taking other adverse action by the centre.

Quantifying the caste quotas

We have, in the past, observed that our political system wakes up only when the demand for reservation by a particular community turns into a violent protest. Even then, the government just confines itself to ascertaining demands of only that particular group.

• The government has never tried to re-examine the whole conundrum of reservation holistically.
• Added to this is the non availability of any data to tell who deserves preferential policies and why.

Concerns:
The proportion of individuals identifying themselves as Other Backward Classes (OBCs) has steadily grown over the years. The National Sample Survey Office data show that in 1999-2000, about 36% of the population fell in the self-identified OBC category. By 2011-12, this proportion had grown to 44%.

• If combined with about 9% of the Scheduled Tribe (ST) and 20% of the Scheduled Caste (SC) population, the total proportion eligible for reservation comprises 73% of the Indian population.
• If new claimants to the OBC category are added to this group, easily 80% of Indians would be eligible for reservation of some kind.
• This would make it impossible for the government to provide effective benefits to this large a group. Thus, some choices within these categories will inevitably need to be made.

Why there is a need to reexamine our reservation policy?

1. Changed external conditions:

Since independence, the external conditions which initially led to reservations have changed tremendously. Economic growth has resulted in a decline in poverty numbers from 37% of the population to 22%. Such development should have brought down the number of people seeking reservations, in contrast, rewards to government jobs have grown sharply.

2. Increased popularity:

Wage increases associated with the Sixth Pay Commission and the expected implementation of the Seventh Pay Commission have made government jobs highly attractive. Hence, many groups historically tied to the land are now seeking favourable treatment while seeking entry into non-farm work.

3. Increased competition:

In the last decade, access to government jobs has been declining for all groups. The India Human Development Survey (IHDS) by University of Maryland and National Council of Applied Economic Research shows that although in 2004-05 15.3% of men aged 22-39 with education level of class 12 or more had a regular salaried job in the government or public sector, this proportion fell to 11.7% by 2011-12.

• This is because government jobs have stagnated while educational attainment has increased rapidly. Thus, it is not surprising that more claimants for these scarce jobs are aggressively staking their claims.

4. Ambiguity in the reservation process:

Since the First Backward Classes Commission headed by Kaka Kalelkar submitted its report in 1955, several attempts have been made to identify backward castes, resulting in frequent discordance between these lists. Lack of consistency and clarity has lead to ambiguity in the entire process of reservation, leaving communities like Jats, Marathas and Patels dissatisfied.

5. Lack of Data:

The problem is exacerbated by the lack of credible recent data. Since the 1931 Census, the only effort at collecting data on different castes and their socio-economic circumstances was undertaken by the Socio-Economic Caste Census (SECC), 2011. The National Commission for Backward Classes claimed, in a report dated February 2015, that these data are neither available nor usable for the purpose of establishing the economic condition of various castes.
How can we address these problems?

1. Regular Surveys:

Conduct regular surveys to identify the beneficiaries who can claim the benefits under the reservation policy. This can be achieved by including data on caste in census surveys. The present phase in the planning cycle of the 2021 Census is the ideal time for ensuring that comprehensive data about caste and religion for all the groups, including forward castes, backward castes, and SCs and STs, are included in this Census.

2. Reevaluation:

These data should also be used to re-evaluate the eligibility of groups for inclusion in reserved categories every 10 or at least every 20 years. Much of the social stratification in India is linked to the occupational status of the various castes.

• With the changes in the economy, we can expect both the link between caste and occupation to weaken and the economic fortunes of various occupations to change considerably.
• The opportunity for re-examination of the caste-wise economic status would facilitate the setting up of a structure for the redressal of grievances.

3. Ensure wider reach:

We must also find a way of ensuring a churn in the number of individuals eligible for benefits to ensure that these benefits reach the widest segment of society. Though the creamy layer criteria exist, it has not been very effective.

• With the advent of the Aadhar card, one way of ensuring that the same families do not capture all the benefits is to ensure that each time someone uses their reserved category certificate, their Aadhar number is noted down and linked with the certificate.
• Further, it may be stipulated that the reserved category certificate can be used only once in 20 years, thus allowing for the benefits to reach even the sections that have hitherto been excluded from their ambit.
• This would ensure that the same individual is not permitted to obtain both college education as well as a government job by using the same eligibility criterion, nor can one obtain an initial posting as well as promotion using the same criterion.

Conclusion:
The key to dealing with the quota quagmire lies in shuffling people in and out of the eligibility criteria and ensuring that the benefits are not concentrated among certain groups and/or individuals. All these principles are consistent with the democratic ideals and vision of social justice envisaged in India’s Constitution. It may be possible to achieve a consensus across the political spectrum for adopting a non-political and pragmatic approach to reservations. If we expect to phase out the reservation policy 100 years after Independence, the time for finding a long-term solution is clearly upon us, and we need to act now.

Railway Budget special:

Railway Budget special:

Theme of the Budget

• Overcoming challenges – Reorganize, Restructure Rejuvenate Indian Railways: ‘Chalo, Milkar Kuch Naya Karen’
• Three pillars of the strategy i.e. Nav Arjan – New revenues, Nav Manak – New norms, Nav Sanrachna – New Structures. 

Four new categories of trains announced
Four new categories of trains have been announced in the budget— one for unreserved passengers and three for reserved passengers.
The four new categories of trains are- Humsafar, Tejas, Antyodaya Express and Uday.

1. Humsafar would be fully air-conditioned third AC service with an optional service for meals.
2. Tejas on the other hand will showcase the future of train travel in India. Operating at speeds of 130 kmph or more, it will have on-board services such as entertainment, local cuisine, Wi-Fi etc.
3. Utkrisht Double-Decker Air-conditioned Yatri (UDAY) Express will be introduced on the busiest routes, which has the potential to increase carrying capacity by almost 40%.
4. Antyodaya Express is a long-distance, fully unreserved, super-fast train service, for the common man to be operated on dense routes.

The railway minister has also announced that two to four Deen Dayalu coaches would be added in some long distance trains for unreserved travel. These coaches will also have facility for potable drinking water and a higher number of mobile charging points.
Seven missions to improve functioning
To make the functioning of railways more efficient, Railway Minister Suresh Prabhu has announced seven missions, including activities to increase the average speed of superfast mail trains by 25 kilometres per hour in the next five years.
The seven missions are ’25 Tonne’, ‘Zero Accident’, PACE (Procurement and Consumption Efficiency), ‘Raftaar’, ‘Hundred’, ‘beyond book-keeping’ and ‘capacity utilisation’.

• Under Mission Raftaar, the railways would target doubling average speeds of freight trains and increasing the average speed of superfast mail/express trains by 25 kmph in the next 5 years.
• On Mission 25 Tonne, railways will augment the carrying capacity to realise the goal of revenue enhancement. A critical step in that direction is making our infrastructure suitable to carry 25-tonne axle load. It is proposed to introduce 10-20% freight loading through 25-tonne axle-load wagons in 2016-17 and target movement of 70% of freight traffic on high axle load wagons by FY 19-20.
• Among others, Mission Hundred would focus on sidings and freight terminals.
• Under ‘Beyond Book-keeping’, Indian Railways will establish an accounting system where the outcomes can be tracked to inputs.

Each of the missions would be headed by a director reporting directly to the Railway Board Chairman.
Three freight corridors to be built on priority
The country will get three new dedicated freight corridors, according to the Railway Budget 2016, in addition to the Delhi-Mumbai and Delhi-Kolkata freight corridors that are due to be commissioned in 2019.

• The new projects are a North-South corridor, from Delhi to Chennai, an East-West corridor from Karaghpur to Mumbai and an East Coast corridor, from Karaghpur to Vijayawada.
• These projects will be financed through a PPP (public private partnership) mechanism and rolled out on a high priority basis.

SC does U-turn, admits plea for Court of Appeal

SC does U-turn, admits plea for Court of Appeal

The Supreme Court has admitted a Chennai lawyer’s petition for setting up a National Court of Appeal with regional benches to act as the final courts of justice in criminal and civil cases.

• With this, the court has questioned the past views of its own Chief Justices of India about bifurcation of judicial powers and a government order in 2014 that such a court of appeal is constitutionally impermissible.

Details:
The proposed court is meant to act as final arbiter of appeals against decisions of the High Courts and tribunals in civil, criminal, labour and revenue cases.
Background:
This plea was previously rejected by the centre. The lawyer had approached the Union Ministry for Law and Justice with his proposal after the Supreme Court asked the government to hear him out through a judicial order on October 10, 2014.
In its order, the Ministry cited three grounds for rejecting the idea —

1. The Supreme Court always sits in Delhi as per the Constitution.
2. The Chief Justices of India in the past have consistently opposed the idea of a National Court of Appeal or regional Benches to the Supreme Court.
3. A National Court of Appeal would require an amendment in Article 130 of the Constitution of India which is impermissible as this would change the Constitution of the Supreme Court completely.

What the petitioner says?
The petitioner submits that establishment of a ‘National Court of Appeal’ as suggested in the case of Bihar Legal Support Society would rectify the inequality in the state of affairs in as much as the said National Court of Appeal would have benches in all possible regions of the country.

• This would also considerably reduce the cost of litigation and would enable the litigants to have the services of the lawyer who appeared for them before the High Court.
• The petitioner also argues that the Supreme Court was never intended to be a regular court of appeal against orders made by the high court or the sessions court or the magistrates. It was created as an apex court for the purpose of laying down the law for the entire country.

However, legal experts feel that setting up of regional benches will dilute the constitutional superiority of the Supreme Court.

Vedanta wins country's first gold mine auction in Chhattisgarh

London-listed Vedanta Resources Inc bagged a gold mine in Chhattisgarh that was put up for auction by the state government.

The company quoted the highest price to get the Baghmara (Sonakhan) gold mine, which became country’s first mine carrying the yellow metal to be auctioned. The company would be granted the composite licence that includes both prospecting licence and cum-mining lease.

“Vedanta Resources Inc quoted the highest bid of 12.55% of the IBM price at Rs 74,712 per troy ounce (1 troy ounce = 31.10 gram) to win the gold mine,” Subodh Kumar Singh, secretary mines, told Business Standard. The auction would fetch Rs 80 crore to the state exchequer in addition to existing royalty, he added.

The Baghmara mine is spread across an area of 608 hectares in a densely forested pocket of the Balodabazar-Bhatapara district — about 130 km northeast of Raipur. Based on the exploration and available reports, the mine has an estimate reserve of 2,700 kg of gold metal. The bidding went on for nearly 13 hours Friday and concluded late in the night. Over 160 bids were submitted.

Singh said the attractive policies of the state government had resulted in large participation in the bid. The mine is the oldest explored gold deposit in Central India and has long been held as having a commercial potential, he said, adding that the development of the Baghmara gold mine will contribute towards India’s target to reduce gold import besides promoting gold, gems and jewelry business in the state.

Vedanta Resources, a global diversified metals and mining company, has added gold in its mineral portfolio by bagging the mine. The group produces oil, zinc, aluminium, copper, lead and silver. The company is also eyeing at the gold mines put for auction in the neighbouring Jharkhand state.

India can gain over $500 bn yearly joining TPP: Economic Survey

By joining an expanded Trans-Pacific Partnership (TPP) or participating in a comprehensive Free Trade Area of the Asia Pacific (FTAAP) and the country's national income would expand by 4%, or $200 billion

India could experience export gains of more than $500 billion per year, or 60% increase, from joining an expanded Trans-Pacific Partnership (TPP) or participating in a comprehensive Free Trade Area of the Asia Pacific (FTAAP) and the country's national income would expand by 4%, or $200 billion, said the Economic Survey 2015-16.
The Survey, presented by Finance Minister Arun Jaitley in parliament on Friday, cited experts to say that India is most competitive in services trade and reduction of trade barriers in services among TPP members will result in growth in India's services exports.
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"The possible risks of not joining the TPP are difficult to quantify, but some of the research has highlighted the possibility of trade diversion and raised concerns about erosion of India's share in exports to the US and Europe," it said.
The TPP is a US-led trade agreement involving twelve Pacific Rim countries and concerning a variety of matters of trade and economic policy, on which consensus was reached in October last year after seven years of negotiations.
"The TPP is expected to make around 11,000 tariff lines duty free for its members, which may result in loss of competitiveness of Indian exports in these markets," it added.
Noting TPP economies on average are more open than the Indian economy, the survey said the service trade restriction index of the World Bank indicates that the TPP economies are less stringent about entry of services than India.
Last month, Commerce Minister Nirmala Sitharaman sought to reassure Indian industry that there would be no adverse impact of entering into the TPP agreement.
"There is nothing to worry about the adverse impact of TPP on India. We have taken necessary steps to boost India's trade and investment in the wake of emerging new trade architecture," she said in her address at the Confederation of Indian Industry's annual partnership summit here.
Sitharaman also said the real implementation of TPP has a long way to go as till date, not a single TPP member has got it passed through their parliament.