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INDIA YEAR BOOK - 2015

INDIA YEAR BOOK-2015| Part - I 1

INDIA YEAR BOOK-2015

Dear Students,

With the focus to simply understanding of complex concepts and separate the wheat from the

chaff, Rau’s IAS Study Circle presents a synopsis of the voluminous yet very important INDIA

YEAR BOOK-2015.

This issue prepared by the Study Circle, titled INDIA YEAR BOOK 2015 | PART I, covers all

useful information of the first fifteen chapters and presents them in a very concise and lucid

manner. All the important points are given in bold and highlighted. The content is complimented

by figures and pictures as and when required.

The aim is coverage of all relevant study material within minimum readable pages.

INDIA YEAR BOOK 2015 |PART I covers the following topics:

1. Land and the People 11. Energy

2. National Symbols 12. Environment

3. The Polity 13. Finance

4. Agriculture 14. Corporate Affairs

5. Culture and Tourism 15. Food and Civil Supplies

6. Basic Economic Data

7. Commerce

8. Communications and Information Technology

9. Defence

10. Education

By preparing the synopsis of the Year Book, the Study Circle hopes that all students will be able to make the

best use of information available in the least amount of time.

Good Luck!

RAU’S IAS STUDY CIRCLE

TABLE OF CONTENTS


TABLE OF CONTENTS

CHAPTER ONE | LAND AND THE PEOPLE……………………………………………………….......... 03

CHAPTER TWO | NATIONAL SYMBOLS………………………………………………………..……… 10

CHAPTER THREE | THE POLITY………………………………………………………..…………………. 11

CHAPTER FOUR | AGRICULTURE………………………………………………………..…………….… 22

CHAPTER FIVE | CULTURE AND TOURISM…………………………………………………………... 25

CHAPTER SIX | BASIC ECONOMIC DATA………………………………………………………..…… 30

CHAPTER SEVEN | COMMERCE………………………………………………………..………………… 33

CHAPTER EIGHT | COMMUNICATIONS AND INFORMATION TECHNOLOGY………… 40

CHAPTER NINE| DEFENCE………………….………………….………………….………………….….… 44

CHAPTER TEN| EDUCATION………………………………………………………..…………………….. 58

CHAPTER ELEVEN| ENERGY.………………………………………………………..…………………….. 60

CHAPTER TWELVE| ENVIRONMENT……………………………………………..…………………..... 65

CHAPTER THIRTEEN| FINANCE…..………………………………………………..………………….… 73

CHAPTER FOURTEEN| CORPORATE AFFAIRS....………………………………………..……….…. 80

CHAPTER FIFTEEN| FOOD AND CIVIL SUPPLIES …………………………..………………….…. 82

CHAPTER-1 | LAND AND THE PEOPLE


CHAPTER ONE | LAND AND THE PEOPLE

INDIA is the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of

legend and the great grandmother of tradition. Our most valuable and most instructive materials in the history of man

are treasured up in India only.’—Mark Twain

India has a unique culture and is one of the oldest and greatest civilizations of the world. It stretches from the snow-

capped Himalayas in the North to sun drenched coastal villages of the South and the humid tropical forests on the

south-west coast, from the fertile Brahmaputra valley on its East to the Thar desert in the West. It covers an area of

32,87,263 sq. km.’

Lying entirely in the northern hemisphere, the mainland extends between latitudes o

8 4' and o

37 6' north, longitudes o

68 7' and 97 25’° east and measures about 3,214 km from north to south between the extreme latitudes and about

2,933 km from east to west between the extreme longitudes. It has a land frontier of about 15,200 km. The total length

of the coastline of the mainland, Lakshadweep Islands and Andaman & Nicobar Islands is 7,516.6 km.

The plains of the Ganga and the Indus, about 2,400 km long and 240 to 320 km broad, are formed by basins of three

distinct river systems – the Indus, the Ganga and the Brahmaputra. They are one of the world’s greatest stretches of flat

alluvium and also one of the most densely populated areas on the earth.

The desert region can be divided into two parts - the ‘great desert’ and the ‘little desert’. The great desert extends from



the edge of the Rann of Kuchch beyond the Luni river northward. The little desert extends from the Luni between

Jaisalmer and Jodhpur up to the northern west. Between the great and the little zone of absolutely sterile country,

consisting of rocky land, cut up by limestone ridges.

The Peninsular Plateau is marked off from the plains of the Ganga and the Indus by a mass of mountain and hill

ranges varying from 460 to 1,220 metres in height. Prominent among these are the Aravali, Vindhya, Satpura and

Ajanta.

The southern point of plateau is formed by the Nilgiri Hills where the Eastern and the Western Ghats meet. The

Cardamom Hills lying beyond may be regarded as a continuation of the Western Ghats.

RIVER SYSTEMS : The river systems of India can be classified into four groups viz., (i) Himalayan rivers, (ii) Deccan

rivers, (iii) Coastal rivers, and (iv) Rivers of the inland drainage basin. The Himalayan rivers are formed by melting

snow and glaciers and therefore, continuously flow throughout the year. The Deccan rivers on the other hand are

rainfed and therefore fluctuate in volume. Many of these are non-perennial. The Coastal streams, especially on the

west coast are short in length and have limited catchment areas. Most of them are non-perennial. The streams of inland

drainage basin of western Rajasthan are few and far apart. Most of them are of an ephemeral character.



The main Himalayan river systems are those of the Indus and the Ganga-Brahmaputra-Meghna system. The Indus,

which is one of the great rivers of the world, rises near Mansarovar in Tibet and flows through India and thereafter

through Pakistan and finally falls into the Arabian sea near Karachi. Its important tributaries flowing in Indian

territory are the Sutlej (originating in Tibet), the Beas, the Ravi, the Chenab and the Jhelum.

The principal tributes of Brahmaputra in India are the Subansiri, Jia Bhareli, Dhansiri, Puthimari, Pagladiya and the

Manas. The Brahmaputra in Bangladesh fed by Teesta, etc. finally falls into Ganga. The Barak river, the head stream of

Meghna, rises in the hills in Manipur.

The Godavari in the southern Peninsula has the second largest river basin covering 10 percent of the area of India.

Next to it is the Krishna basin in the region and the Mahanadi is another large basin of the region. The basin of the

Narmada in the uplands of the Deccan, flowing to the Arabian Sea and of the Kaveri in the south, falling into the Bay

of Bengal are about the same size, though with different character and shape.

FLORA : India is rich in flora. Available data place India in the tenth position in the world and fourth in Asia in plant

diversity. From about 70 per cent geographical area surveyed so far, over 46,000 species of plants have been described

by the Botanical Survey of India (BSI), Kolkata. The vascular flora, which forms the conspicuous vegetation cover,

comprises 15,000 species.

With a wide range of climatic conditions from the torrid to the arctic, India has a rich and varied vegetation, which

only a few countries of comparable size possess.

The Western Himalayan region extends from Kashmir to Kumaon. Its temperate zone is rich in forests of chir, pine,

other conifers and broad-leaved temperate trees. Higher up, forests of deodar, blue pine, spruce and silver fir occur.

The alpine zone extends from the upper limit of the temperate zone of about 4,750 metres or even higher. The

characteristic trees of this zone are high- level silver fir, silver birch and junipers.

The Assam region comprises the Brahmaputra and the Surma valleys with evergreen forests, occasional thick clumps

of bamboos and tall grasses. The Indus plain region comprises the plains of Punjab, western Rajasthan and northern

Gujarat. It is dry, hot and supports natural vegetation. The Ganga plain region covers the area which is alluvial plain

and is under cultivation for wheat, sugarcane and rice. Only small areas support forests of widely deferring types. The

Deccan region comprises the entire table land of the Indian Peninsula and supports vegetation of various kinds from

shrub jungles to mixed deciduous forests. The Malabar region covers the excessively humid belt of mountain country

parallel to the west coast of the Peninsula. Besides being rich in forest vegetation, this region produces important

commercial crops, such as coconut, betelnut, pepper, coffee, tea, rubber and cashewnut. The Andaman region abounds

in evergreen, mangrove, beach and diluvial forests. The Himalayan region extending from Kashmir to Arunachal

Pradesh through Sikkim, Meghalaya and Nagaland and the Deccan Peninsula is rich in endemic flora, with a large

number of plants which are not found elsewhere.

Ethno-botanical study deals with the utilisation of plants and plant products by ethnic races. A scientific study of such

plants has been done by BSI. A number of detailed ethno-botanical explorations have been conducted in different tribal

areas of the country.

FAUNAL RESOURCES OF INDIA : India is very rich in terms of biological diversity due to its unique bio location,

diversified climate conditions and enormous ecodiversity and geodiversity.

India’s immense biological diversity encompasss ecosystems, populations, species and their genetic make-up. This

diversity can be attributed to the vast variety in physiography and climatic situations resulting in a diversity of

ecological habitats ranging from tropical, sub-tropical, temprate, alpine to desert. According to world biogeographic



classification, India represents two of the major realms (the Palearctic and Indo-Malayan) and three bimes (Tropical

Humid Forests, Tropical Dry/Deciduous Forests and Warm Deserts/Semi Deserts).

India holds a unique position with the priority of conservation of natural resources and sustainable development.

Infact, within only about 2% of world’s total land surface, India is known to have over 7.50% of the species of animals

that the world holds and this percentage accounts nearly for 94037 species so far known, of which insects alone include

61,375 species. It is estimated that about two times that number of species still remains to be discovered in India alone.

DEMOGRAPHIC BACKGROUND

CENSUS : Census 2011 was the 15th Census of India since 1872. It as held in two phases:

• Population : Persons-1210.7 million; Males 623.2 million; and Females- 587.5 million.

• Density of Population 2001-2011: Density in 2001:325 and density in 2011- 382, difference being 17.5% (density

is defined as the number of persons/sq km.)

• Gender composition of Population 2011: Overall sex ratio at the National level has increased by 7 points since census 2001 to reach 943 at census 2011. This is the highest sex ratio recorded since census 1991.

• As per the census 2011, literates constituted 73.0 percent of the total population aged seven and above and

illiterates forme4 27.0 per cent. Literacy rate has gone up from 64.8 per cent in 2001 to 73.0 per cent showing an

increase of 8.2 percentage points. It is encouraging to note that out of total of 202,810,720 literates added during

the decade, female 104,660,657 outnumber male 98,150,063.

POPULATION : The population of India as on March 1st, 2011 stood at 1,210.7 million (623.2 million males and 587.5

million females). India accounts for a meagre 2.4 per cent of the world surface area of 135.79 million sq.km. Yet, it

support and sustains a whopping per cent of the world population.

POPULATION DENSITY : One of the important indices of population concentration is the density of population. It is

defined as the number of persons per sq.km. The population density of India in 2011 was 382 per sq km-decadal

growth 17.54 per cent.

The density of population increased in all States and Union Territories between 1991 and 2011. Among major states,

Bihar is the most thickly populated state with (a population density of) 1,106 persons per sq.km. followed by West

Bengal 1,028 and Kerala 860.

SEX RATIO : Sex ratio, defined as the number of females per thousand males is an important social indicator to

measure the extent of prevailing equality between males and females in a society at a given point of time. The sex ratio

from 1901-2011 has registered a 10 point increase at census 2011 over 2001; however, child sex ratio has declined to 919

per thousand male.

LITERACY : For the purpose of census 2011, a person aged seven and above, who can both read and write with

understanding in any language, is treated as literate. A person, who can only read but cannot write, is not literate. In

the censuses prior to 1991, children below five years of age were necessarily treated as illiterates.

The results of 2011 census reveal that there has been an increase in literacy in the country. The literacy rate in the

country is 73.0 per cent, 80.9 for males and 64.6 for females.

Kerala retained its position by being on top with a 94 per cent literacy rate, closely followed by Lakshadweep (86.66

per cent). Bihar with a literacy rate of 61.8 per cent ranks last in the country. Kerala also occupies the top spot in the

country both in male literacy with 96.1 per cent and female literacy with 92.1 per cent. On the contrary, Bihar has

recorded the lowest literacy rates both in case of males (71.2 per cent) and females (51.5 per cent).



TABLE : LITERACY RATE IN INDIA : 1951-2011

Census Year Persons Males Females Male-Female gap in literacy rate

1 2 3 4 5

1951 18.33 21.61 8.86 18.30

1961 28.3 40.4 15.35 25.05

1971 34.45 45.96 21.97 23.98

1981 43.57 56.38 29.76 26.62

1991 52.21 64.13 39.29 24.84

2001 64.83 75.26 53.67 21.59

2011 74.04 82.14 65.46 16.68

TABLE : LITERATES AND LITERACY RATES BY SEX – 2011

State UT India/ State/ Union Territory Literacy Rate (%)

Persons Males Females

1 2 3 4 5

INDIA 74.04 82.14 65.46

1 Jammu and Kashmir 68.71 78.36 58.01

2 Himachal Pradesh 83.78 90.83 76.60

3 Punjab 76.68 81.48 71.34

4 Chandigarh 86.43 90.54 81.38

5 Uttarakhand 79.63 88.33 70.70

6 Haryana 76.64 85.38 66.77

7 NCT of Delhi 86.34 91.03 80.93

8 Rajasthan 67.06 80.51 52.66

9 Uttar Pradesh 69.72 79.24 59.26

10 Bihar 63.82 73.39 53.33

11 Sikkim 82.20 87.29 76.43

12 Arunachal Pradesh 66.95 73.69 59.57

13 Nagaland 80.11 83.29 76.69

14 Manipur 79.85 86.49 73.17

15 Mizoram 91.58 93.72 89.40

16 Tripura 87.75 92.18 83.15

17 Meghalaya 75.48 77.17 73.78

18 Assam 73.18 78.81 66.27

19 West-Bengal 77.08 82.67 71.16

20 Jharkhand 67.63 78.45 56.21

21 Odisha 73.45 82.40 64.36

22 Chattisgarh 71.04 81.45 60.59



23 Madhya Pradesh 70.36 80.53 60.02

24 Gujarat 79.31 87.23 70.73

25 Daman and Diu 87.07 83.48 79.51

26 Dadra and Nagar Haveli 77.05 86.46 65.93

27 Maharashtra 82.91 89.32 75.48

28 Andhra Pradesh 67.66 75.56 59.74

29 Karnataka 75.60 82.85 68.13

30 Goa 87.40 92.81 81.84

31 Lakshadweep 92.28 96.11 88.25

32 Kerala 93.91 96.02 91.98

33 Tamil Nadu 80.33 86.81 73.86

34 Puducherry 86.55 92.12 81.22

35 Andaman & Nicobar Island 86.27 90.11 81.84

TABLE : STATES AND UNION TERRITORIES BY POPULATION IN DESCENDING ORDER AND RANK IN 2011 CENSUS

Rank 2011 State/Union Territory Percent to total Population of India 2011

1 2 3

1 Uttar Pradesh 16.50

2 Maharashtra 9.28

3 Bihar 8.60

4 West Bengal 7.54

5 Andhra Pradesh 6.99

6 Madhya Pradesh 6.00

7 Tamil Nadu 5.96

8 Rajasthan 5.66

9 Karnataka 5.05

10 Gujarat 4.99

11 Odisha 3.47

12 Kerala 2.76

13 Jharkhand 2.72

14 Assam 2.58

15 Punjab 2.29

16 Chattisgarh 2.11

17 Haryana 2.09

18 NCT of Delhi 1.39

19 Jammu and Kashmir 1.04

20 Uttarakhand 0.83

21 Himachal Pradesh 0.57

22 Tripura 0.30



23 Meghalaya 0.25

24 Manipur 0.23

25 Nagaland 0.16

26 Goa 0.12

27 Arunachal Pradesh 0.11

28 Puducherry 0.10

29 Mizoram 0.09

30 Chandigarh 0.09

31 Sikkim 0.05

32 Andaman & Nicobar Islands 0.03

33 Dadra and Nagar Haveli 0.03

34 Daman & Diu 0.02

35 Lakshadweep 0.01

TABLE : RURAL AND URBAN POPULATION

Census Year Population (Million) Percentage of total population

Rural Urban Rural Urban

1 2 3 4 5

1901 213 26 89.20 10.80

1911 226 26 89.70 10.30

1921 223 28 88.80 11.20

1931 246 33 88.00 12.00

1941 275 44 86.10 13.90

1951 299 62 82.70 17.30

1961 360 79 82.00 18.00

1971 439 109 80.10 19.90

1981 524 159 76.70 23.30

1991 629 218 74.30 25.70

2001 743 286 72.20 27.80

2011 834 377 68.85 31.15

CHAPTER-2 | NATIONAL SYMBOLS


CHAPTER TWO | NATIONAL SYMBOLS

NATIONAL FLAG : THE National flag is a horizontal tricolour

of deep saffron (kesaria) at the top, white in the middle and dark

green at the bottom in equal proportion. The ratio of width of the

flag to its length is two to three. In the centre of the white band is

a navy-blue wheel which represents the chakra. Its design is that

of the wheel which appears on the abacus of the Sarnath Lion

Capital of Ashoka. Its diameter approximates to the width of the

white band and it has 24 spokes. The design of the National Flag

was adopted by the Constituent Assembly of India on 22nd July,

1947.

The Flag Code of India, 2002, which took effect from 26 January, 2002, brings together laws, conventions,

practices and instructions to all. According to the Flag Code of India, 2002, there is no restriction on the display of

the National Flag by members of general public, private organisations, educational institutions, etc., except as

provided for in the Emblems and Names (Prevention of Improper Use) Act, 1950, the Prevention of Insults to

National Honour Act, 1971 and any other law enacted on the subject.

STATE EMBLEM : It is an adaptation from the Sarnath Lion Capital of Ashoka. In the original, there are four

lions, standing back to back, mounted on an abacus with a frieze carrying

sculptures in high relief of an elephant, a galloping horse, a bull and a lion

separated by intervening wheels over a bell-shaped lotus. Carved out of a

single block of polished sandstone, the Capitol is crowned by the Wheel of

the Law (Dharma Chakra).

In the state emblem, adopted by the Government of India on 26th January

1950, only three lions are visible. The wheel appears in the centre of the

abacus with a bull on right and a horse on left and the outlines of other

wheels on extreme right and left. The bell-shaped lotus has been omitted. The

words Satyameva Jayate from Mundaka Upanishad, meaning ‘Truth Alone

Triumphs’, are inscribed below the abacus in Devanagari script. The use of

the state emblem of India, as the official seal of the Government of India, is

regulated by the State of India (Prohibition of Improper Use) Act, 2005.

NATIONAL ANTHEM : The song Jana-gana-mana, composed originally in Bengali by Rabindranath Tagore,

was adopted in its Hindi version as the National Anthem of India on 24th January 1950. It was first sung on 27th

December, 1911 at the Kolkata Session of the Indian National Congress.

The duration of the national anthem is approximately 52 seconds. A short version consisting of the first and last

lines of the stanza (playing time aproximate1y 20 seconds) is also played on certain occasions.

NATIONAL SONG : The song Vande Mataram, composed in sanskrit by Bankim Chandra Chatterji, was a

source of inspiration to the people in their struggle for freedom. It has an equal status with Jana-gana-mana. It

was first sung at the 1896 session of the Indian National Congress.

CHAPTER-3 | THE POLITY


CHAPTER THREE | THE POLITY

INDIA, a Union of States, is a Sovereign Socialist Secular Demoratic Republic with a parliamentary system of

government. The Republic is governed in terms of the Constitution, which was adopted by Constituent Assembly on

November, 1949 and came into force on 26th January, 1950.

The Constitution which envisages parliamentary form of government is federal in structure with unitary features. The

President of India is the constitutional head of executive of the Union. Article 74(1) of the Constitution provides that

there shall be a Council of Ministers with the Prime Minister as its head to aid and advise the President who shall in

exercise of his functions, act accordance with such advice. The real executive power thus vests in the Council of

Ministers with the Prime Minister as its head. The Counsel of Ministers collectively responsible to the House of the

People (Lok Sabha).

The Constitution distributes legislative power between Parliament and state legislatures and provides for vesting of

residual powers in Parliament. Power to amend the Constitution also vests in Parliament.

CITIZENSHIP : The Constitution of India provides for a single citizenship for the whole of India. Every person who

was at the commencement of the Constitution (26th January, 1950) domiciled in the territory of India and: (a) who was

born in India; or (b) either of whose parents were born in India; or (c) who has seen ordinarily resident in India for not

less than five years became a citizen of India. The Citizenship Act, 1955, deals with matters relating to acquisition,

determination and termination of Indian citizenship after the commencement of the Constitution.

FUNDAMENTAL RIGHTS : The Constitution offers all citizens, individually and collectively, some basic freedoms.

These are guaranteed in the Constitution in the form of six broad categories of Fundamental Rights which are

justiciable. Article 12 to 35 contained in Part III of the Constitution deal with Fundamental Rights. These are: (i) Right

to equality including equality before law, prohibition of discrimination on grounds of religion, race, caste, sex or

place of birth and equality of opportunity in matters of employment; (ii) Right to freedom of speech and

expression; assembly; association or union; movement; residence; and right to practice any profession or occupation

(some of these rights are subject to security of the State, friendly relations with foreign countries, public order,

decency or morality); (iii) Right against exploitation, prohibiting all forms of forced labour, child labour and traffic

in human beings; (iv) Right to freedom of conscience and free profession, practice and propagation of religion; (v)

Right of any section of citizens to conserve their culture, language or script and right of minorities to establish and

administer educational institutions of their choice; and (vi) Right to constitutional remedies for enforcement of

Fundamental Rights.

FUNDAMENTAL DUTIES : By the 42nd Amendment of the Constitution, adopted in 1976, Fundamental Duties of the

citizens have also been enumerated. Article 51 ‘A’ contained in Part IV A of the Constitution deals with Fundamental

Duties. These enjoin upon “citizen among other things, to abide by the Constitution, to cherish and follow noble ideals,

which inspired India’s struggle for freedom, to defend the country and render national service when called upon to do

so and to promote harmony and spirit of common brotherhood transcending religious, linguistic and regional sectional

diversities.

DIRECTIVE PRINCIPLES OF STATE POLICY : The Constitution lays down certain Directive Principles of State

Policy, which though not justiciable, are ‘fundamental in governance of the country’ and it is the duty of the State to

apply these principles in making laws. These lay down that the State shall strive to promote the welfare of people by

securing and protecting as effectively as it may a social order in which justice—social, economic and political—shall

form the basis in all institutions of national life.

THE UNION EXECUTIVE : The Union executive consists of the President, the Vice-President and the Council of

Ministers with the Prime Minister as the head to aid and advise the President.



PRESIDENT : The President is elected by members of an electoral college consisting of elected members of both

Houses of Parliament and Legislative Assembles of the states in accordance with the system of proportional

representation by means of single transferable vote. To secure uniformity among states inter se as well as parity

between the states, as a whole, and the Union, suitable weightage is given to each vote. The President must be a citizen

of India, not less than 35 years of age and qualified for election as a member of the Lok Sabha. His term of office is

years and he is eligible for re-election. His removal from office is to be in accordance with procedure prescribed in

Article 61 of the Constitution. He may by writing under his hand addressed to the Vice-President, resign his office.

VICE-PRESIDENT : The Vice-President is elected by members of an electoral college consisting of members of both

Houses of Parliament in accordance with the system of proportional representation by means of single transferable

vote. He must be a citizen of India, not less than 35 years of age and eligible for election as a member of the Rajya

Sabha. His term of office is five years and he is eligible for re- election. His removal from office is to be in accordance

with procedure prescribed in Article 67(b).

The Vice-President is ex-officio Chairman of the Rajya Sabha and acts as President when the latter is unable to

discharge his functions due to absence, illness or any other cause or till the election of a new President (to be held

within six months when a vacancy is caused by death, resignation or removal or otherwise of President). While so

acting, he ceases to perform the function of the Chairman of the Rajya Sabha.

COUNCIL OF MINISTERS : There is a Council of Ministers, headed by the Prime Minister, to aid and advise the

President in exercise of his functions. The Prime Minister is appointed by the President who also appoints other

ministers on the advice of Prime Minister.

The Council is collectively responsible to the Lok Sabha. It is the duty of the Prime Minister to communicate to the

President all decisions of Council of Ministers relating to administration of affairs of the Union and proposals for

legislation and information relating to them.

The Council of Ministers comprises Ministers who are members of Cabinet, Ministers of State (independent charge),

Ministers of State and Deputy Ministers.

RAJYA SABHA : The Constitution provides that the Rajya Sabha shall consist of 12 members to be nominated by the

President from amongst persons having special knowledge or practical experience in respect of such matters as

literature, science, art and social service; and not more than 238 representatives of the States and of the Union

Territories.

LOK SABHA : The Lok Sabha is composed of representatives of people chosen by direct election on the basis of adult

suffrage. The maximum strength of the House envisaged by the Constitution is now 552(530 members to represent the

States, 20 members to represent the Union Territories and not more than two members of the Anglo- Indian

community to be nominated by the President, if, in his opinion, that community is not adequately represented in the

House). The total elective membership of the Lok Sabha is distributed among the States in such a way that the ratio

between the number of seats allotted to each state and the population of the State is, as far as practicable, the same for

all States. The Lok Sabha at present consists of 543 members. Of these, 530 members are directly elected from the States

and 13 from Union Territories. Following the 84th amendment to the Constitution in 2001, the total number of existing

seats as allocated to various States in the Lok Sabha on the basis of the 1971 census shall unaltered till the first census to

be taken after the year 2026.

Lok Sabha Date of First

meeting after

Date of

dissolution

Speaker Name From To

First Lok Sabha 13 May 1952 4 April 1957 Ganesh Vasudev 15 May 1952 27 February



Mavalankar 1956

M.

Ananthasayanam

Ayyangar

8 March 1956 10 May 1957

Second Lok Sabha 10 May 1957 31 March 1962 M.

Ananthasayanam

Ayyangar

11 May 1957 16 April 1962

Third Lok Sabha 16 April 1962 3 March 1967 Hukam Singh 17 April 1962 16 March 1967

Fourth Lok Sabha 16 March 1967 27 December

1970

Neelam Sanjiva

Reddy

17 March 1967 19 July 1969

Gurdial Singh

Dhillon

08 August 1969 19 March 1971

Fifth Lok Sabha 19 March 1971 18 January

1977

Gurdial Singh

Dhillon

22 March 1971 1 December

1975

Bali Ram Bhagat 5 January 1976 25 March 1977

Sixth Lok Sabha 25 March 1977 22 August 1979 Neelam Sanjiva

Reddy

26 March 1977 13 July 1977

K.S. Hegde 21 July 1977 21 January 1985

Seventh Lok

Sabha

21 January

1980

21 December

1984

Bal Ram Jakhar 22 January 1980 15 January 1985

Eight Lok Sabha 15 January

1985

22 November

1989

Bal Ram Jakhar 16 January 1985 18 December

1989

Ninth Lok Sabha 18 December

1989

13 March 1991 Rabi Ray 19 December

1989

9 July 1991

Tenth Lok Sabha 9 July 1991 10 May 1996 Shivraj V. Patil 10 July 1991 22 May 1996

Eleventh Lok

Sabha

22 May 1996 4 December

1997

P.A. Sangma 23 May 1996 23 March 1998

(FN)

Twelfth Lok

Sabha

23 March 1998 26 April 1999 G.M.C. Balayogi 24 March 1998 20 October 199

(FN)

Thirteenth Lok

Sabha

20 Oct. 1999 6 February

2004

G.M.C. Balayogi 22 October 1999 3 March 2002

Manohar Gajanan

Joshi

10 May 2002 2 June 2004

Fourteenth Lok

Sabha

2 June, 2004 18 May 2009 Somnath Chatterjee 4 June 2004 1 June 2009

Fifteenth Lok

Sabha

1 June, 2009 18 May 2014 Meira Kumar 1 June 2009 18 May 2014

Sixteenth Lok

Sabha

4 June, 2014 – Sumitra Mahajan 6 June 2014 Till Date



PARLIAMENTARY COMMITTEES: Both Houses of Parliament have a similar committee structure, with few

exceptions. Their appointment, terms of office, functions and procedure of conducting business are also more or less

similar and are regulated as per rules made by the two Houses under Article 118(1) of the Constitution.

Broadly, Parliamentary Committees are of two kinds—Standing Committees and ad hoc Committees. The former are

elected or appointed every year or periodically and their work goes on, more or less, on a continuous basis. The latter

are appointed on an ad hoc basis as need arises and they cease to exist as soon as they complete the task assigned to

them.

Standing Committees: Among the Standing Committees, the three Financial Committees—Committees on Estimates,

Public Accounts and Public Undertakings— constitute a distinct group as they keep an unremitting vigil over

Government expenditure and performance. While members of the Rajya Sabha are associated with Committees on

Public Accounts and Public Undertakings, the members of the Committee on Estimates are drawn entirely from the

Lok Sabha.

The Estimates Committee reports on ‘what economies, improvements in organisation, efficiency or administrative

reform consistent with policy underlying the estimates’ may be effected. It also examines whether the money is well

laid out within limits of the policy implied in the estimates. The Public Accounts Committee scrutinizes appropriation

and finance accounts of Government and reports of the Comptroller and Auditor-General.

The Rules Committee of the Lok Sabha recommended setting-up of 17 Department Related Standing Committees

(DRSCs).

In July 2004, rules were amended to provide for the constitution of seven more such committees, thus raising the

number of DRSCs from 17 to 24. The functions of these Committees are : (a) to consider the Demands for Grants of

various Ministries/Departments of Government of India and make reports to the Houses; (b) to examine such Bills as

are referred to the Committee by the Chairman. To consider Annual Reports of ministries/departments and make

reports thereon; and (d) to consider policy documents presented to the Houses, if referred to the Committee by the

Chairman, Rajya Sabha or the Speaker, Lok Sabha, and make reports thereon.

Other standing committees are (i) Committees to Inquire: (a) Committee on Petitions examines petitions on bills and

on matters of general public interest (b) Committee of Privileges examines any question of privilege referred to it by

the House or Speaker/Chairman; (ii) Committees to Scrutinise: (a) Committee on Government Assurances keeps

track of all the assurances, promises, undertakings, etc., given by Ministers in the House (b) Committee on Subordinate

Legislation Scrutinises and reports to the House whether the power to make regulations, rules, sub-rules, bye-laws,

etc., conferred by the Constitution or Statutes is being properly exercised by the delegated authorities; and (c)

Committee on Papers Laid on the Table examines all papers laid on the table of the House by Ministers, other than

statutory notifications and orders; (iii) Committees relating to the day-to-day business of the House: (a) Business

Advisory Committee recommends allocation of time for items of Government and other business to be brought before

the Houses; (b) Committee on Private Members’ Bills and Resolutions of the Lok Sabha classifies and allocates time to

Bills introduced by private members. (c) Rules Committee considers matters of procedure and conduct of business in

the House and recommends amendments or additions to the Rules; and (d) Committee on Absence of Members from

the Sittings of the House of the Lok Sabha. There is no such Committee in the Rajya Sabha. Applications from members

for leave or absence are considered by the House itself; (iv) Committee on the Welfare of Scheduled Castes and

Scheduled Tribes, on which members from both Houses serve. (v) Committees concerned with the provision of

facilities to members (a) General Purposes Committee considers and advises Speaker/Chairman on matters

concerning affairs of the House (b) House Committee deals with residential accommodation and other amenities for

members; (vi) Joint Committee on Salaries and Allowances of Members of Parliament, constituted under the Salary,

Allowances and Pension of Members of Parliament Act, 1954; (viii) The Library Committee (ix) On 29 April 1997, a

Committee on Empowerment of Women with members from both the Houses was constituted, to secure, status,

dignity and equality for women in all fields; (x) On 4 March 1997, the Ethics Committee of the Rajya Sabha was

constituted. The Ethics Committee of the Lok Sabha was constituted on 16 May 2000.



Ad hoc Committees : Broadly classified under two heads: (a) committees which are constituted from time to time,

either by the two Houses on a motion adopted in that behalf or by Speaker/Chairman to inquire into and report on

specific subjects (b) Select or Joint Committees on Bills which are appointed to consider and report on a particular Bill.

These Committees are distinguishable from the other ad hoc committee as much as they are concerned with Bills and

the procedure to be followed by them as laid down in the Rules of Procedure and Directions by the

Speaker/Chairman.

LEADERS OF OPPOSITION IN PARLIAMENT: The Leaders of Opposition in the Rajya Sabha and the Lok Sabha

are accorded statutory recognition. Salary and other suitable facilities are extended to them through a separate

legislation brought into force on l November 1977.

GOVERNMENT BUSINESS IN PARLIAMENT: The Minister of Parliamentary Affairs coordinates plans and

arranges Government Business in both Houses of Parliament.

CONSULTATIVE COMMITTEES: Functioning of Consultative Committees of Members of Parliament for various

Ministries is one of the functions allocated to the Ministry of Parliamentary affairs under the Government of India

(Allocation of Business) Rules, 1961. Their objective is to provide a forum for informal discussion between Members

of Parliament, and Ministers and senior officers of the Government, on the policies, principles and programmes of the

Government and their implementation. The minimum membership of a Consultative Committee is 10 and the

maximum membership is 30. The Consultative Committee stand dissolved upon dissolution of every Lok Sabha and

re-constituted upon constitution of each Lok Sabha.

NOMINATION OF MEMBERS OF PARLIAMENT ON GOVERNMENT COMMITTEES/BODIES YOUTH

PARLIAMENT COMPETITION: In order to develop democratic ethos in the younger generation the Ministry

conducts Youth Parliament Competition in various categories of schools and colleges / universities. The Youth

Parliament Scheme was first introduced in the Schools in Delhi in 1966-67.

OTHER PARLIAMENTARY MATTERS

ALL INDIA WHIPS CONFERENCE: The Ministry of Parliamentary Affairs, organises All India Whips Conference to

establish suitable links among the whips of various political parties at the Centre and the States who are concerned

with the practical working of the legislatures to discuss matters of common interest and to strengthen the institution of

Parliamentary Democracy.

MATTERS UNDER RULE 377 AND SPECIAL MENTIONS: The Ministry of Parliamentary Affairs takes follow-up

action on matters raised under Rule 377 of the Rules of Procedure and Conduct of Business in Lok Sabha and by way

of Special Mentions in Rajya Sabha.

GOODWILL DELEGATION: The Ministry of Parliamentary Affairs sponsors Government Goodwill Delegation of

Members of Parliament to other countries and receives similar Government sponsored delegations of parliamentarians

under the exchange programme from other countries through the Ministry of External Affairs.

WELFARE OF MEMBERS OF PARLIAMENT: The Ministry of Parliamentary Affairs looks after the welfare of ailing

Members of Parliament admitted for treatment in hospitals in Delhi.

ADMINISTRATIVE SET-UP: The Government of India (Allocation of Business) Rules, 1961 are made by the

President of India under Article 77 of the Constitution for the allocation of business of the Government of India.

CABINET SECRETARIAT: The Cabinet Secretariat functions directly under the Prime Minister. The administrative

head of the Secretariat is the Cabinet Secretary who is also the ex-officio Chairman of the Civil Services Board. The

business allotted to cabinet secretariat is (i) Secretarial assistance to Cabinet and Cabinet Committees; and (ii) Rules

of Business.



The Cabinet Secretariat is a useful mechanism by the departments for promoting inter-Ministerial coordination since

the Cabinet Secretary is also the head of the civil services.

PERFORMANCE MANAGEMENT DIVISION - RESULTS FRAMEWORK DOCUMENT: The Prime Minister

approved the outline of the Performance monitoring and Evaluation System (PMES) for Government Departments on

September 11, 2009. Performance Management Division (PMD) in the Cabinet Secretariat is headed by a Secretary to

Government of India, and is responsible for this activity through the mechanism called Results-Framework

Documents. At the beginning of each financial year, each Department prepares a Results Frame Document (RFD)

consisting of the priorities set out by the Minister concerned agenda as spelt out by the Government from time to time.

The Minister in-charge decides the inter-se priority among the departmental objectives.

The RFD addresses three basic questions; (a) department’s main objectives for the year (b) actions proposed to

achieve these objectives (c) the degree of progress made in implementing these objectives.

PMD of the Cabinet Secretariat has also undertaken various initiatives relating to overall improvement in the

functioning of the Government departments These are: (i) Implementation of 2nd Administration Reforms

Commission Recommendation; (ii) Performance Related Incentives (PRI); (iii) Performance Appraisal Report (PAR)

System; (iv) Operationalizing ‘Sevottam’; (v) Assisting State Governments in Implementing RFD; (vi) ISO 9001

Certification: The quality consciousness in Government has been introduced with all Ministries/ Departments having

been required to develop an action plan to obtain ISO:9001 certification of the Department in phases; (vii) Innovation

in Government; (viii) Assistance to other countries; (ix) Implementing e-Office: In its efforts to move towards a

paperless office, the day to day working of the Cabinet Secretariat is being carried out through the e-Office system

developed by the NIC; (x) Newsletter “Performance Matters”:In government and to promote knowledge sharing in

this area, the Performance Management Division, Cabinet Secretariat is regularly bringing out a quarterly Newsletter

titled “Performance Matters” since April, 2009; (xi) Website: One of the interesting features on the PMD Website is

Communities of Practice (COP) on various subjects. COP is basically a group of people who share a concern or a

passion for something they do and learn how to do it better as they interact regularly.

MATTERS UNDER RULE 377 AND SPECIAL MENTIONS : The Ministry of Parliamentary Affairs takes follow-up

action or matters raised under Rule 377 of the Rules of Procedure and Conduct of Business in Lok Sabha and by way of

Special Mentions in Rajya Sabha. Also after ‘Question Hour’ in both the Houses of Parliament, Members raise matters

of urgent public Importance. Though it is not mandatory Ministers sometimes react to the points made by the

Members. In the absence of concerned Minister, the Minister of Parliamentary Affairs assures the House or the

individual Members that their sentiments would be conveyed to the concerned Ministers.

MINISTRIES/DEPARTMENTS OF THE GOVERNMENT : The Government consists of a number of

Ministries/Departments, number and character varying from time to time on factors such as volume of work,

importance attached to certain items, changes of orientation, political expediency, etc.

LIST OF THE MINISTRIES / DEPARTMENTS

1. Ministry of Agriculture (Krishi Mantralaya)

(i) Department of Agriculture and Co-operation

(Krishi aur Sahkarita Vibhag)

(ii) Department of Agricultural Research and Education

(Krishi Anusandhan aur Shiksha Vibhag)

(iii) Department of Animal Husbandry, Fisheries and Dairying

(Pashupalan aur Dairy aur Matsyapalan Vibhag)

2. Ministry of Commerce and Industry (Vanijya aur UdyogMantralaya)

(i) Department of Commerce (Vanijya Vibhag)

(ii) Department of Industrial Policy and Promotion



(Audyogik Niti aur Samvardhan Vibhag)

3. Ministry of Consumer Affairs, Food and Public Distribution

(Upbhokta Mamle, Khadya aurSarvajanik Vitaran Mantralaya)

(i) Department of Consumer Affairs

(Upbhokta Mamle Vibhag)

(ii) Department of Food and Public Distribution

(Khadya aur Sarvajanik Vitaran Vibhag)

4. Ministry of Finance (Vitta Mantralaya)

(i) Department of Economic Affairs (Arthik Karya Vibhag)

(ii) Department of Expenditure (Vyaya Vibbag)

(iii) Department of Revenue (Rajaswa Vibhag)

(iv) Department of Disinvestment (Vinivesh Vibhag)

(v) Department of Financial Services ( Vittiya Sewayen Vibhag)

5. Ministry of Home Affairs (Crib Mantralaya)

(i) Department of Internal Security (Aantarik Suraksha V4thag)

(ii) Department of States (Rajya Vibhag)

(iii) Department of Official Language (Raj Bhasha Vibhag)

(iv) Department of Home (Grih Vibhag)

(v) Department of Jammu and Kashmir Affairs

(vi) Department of Border Management

6. Ministry of Personnel, Public Grievances and Pensions

(Karmik Lok Shikayat tatha Pension Mantralaya)

(i) Department of Personnel and Training (Karmik aur Prashikshan Vibhag)

(ii) Department of Administrative Reforms and Public Grivances (Prashasnik Sudharaur Lok Shikayat

Vibhag)

(iii) Department of Pensions and Pensioners’ Welfare (Pension aur Pension Bhogi Kalyan Vibhag)

NOTE : IMPLEMENTATION OF 2ND ADMINISTRATION REFORMS COMMISSION RECOMMENDATION

Administrative Reforms Commission-IT (ARC) in its report on “Organisational Structure of Government of India”

inter alia recommended that Government of India should primarily focus on core functions and that it should, at all

levels, be guided by the principle of subsidiarity. It was further recommended that there was a need to carry out a

detailed analysis of the functions/activities in each Ministry/Department to help the ministries to prepare an action

plan for delegating implementation activities and non-core activities to attached and ordinate offices.

COMPTROLLER AND AUDITOR GENERAL (CAG) : The Comptroller and Auditor General of India is appointed

by the President. The procedure and the grounds for his removal from office are the same as for a Supreme Court

Judge. He is not eligible for further office under the Union or a State government after he ceases to hold his office.

The accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the CAG,

prescribe. The reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be

submitted to the President, who shall cause them to be laid before each House of Parliament. The reports of the CAG of

India relating to the accounts of a State shall be submitted to the Governor of the State, who shall cause them to be laid

before the legislature of the State.

The duties, powers and conditions of service of the Comptroller and Auditor-General have been specified by the

Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971.



STAFF SELECTION COMMISSION : Staff Selection Commission (SSC) with Headquarters at New Delhi was set up

on 1st July, 1978. It recruits (i) all non-Gazetted Group ‘B’ post in the various Ministries/Departments of the

Government and their attached and subordinate offices and (ii) all non-technical Group ‘C’ posts in the various

Ministries/ Departments of the Government and their attached and subordinate offices, except those posts which are

specifically exempted from the purview of the Staff Selection Commission.

INDIA-BRAZIL--SOUTH AFRICA (IBSA) FORUM : Recognizing the emergence and consolidation of India - Brazil -

South Africa (IBSA) initiatives and collaboration at regional and global level for promoting good governance and

wishing to strengthen South-South cooperation the three countries acknowledged that joint efforts and collaboration

will position them as active players in helping to direct the public administration and governance towards democratic

values and social inclusion. The Prime Minister of India, the President of Brazil and the President of South Africa met

in Brasilia (Brazil) on 13th September, 2006 for the 1St Summit meeting of the India-Brazil-South

Africa dialogue forum. Pursuant to the IBSA Summit decision as contained in the Joint Declaration issued on the

occasion, an IBSA Working Group on Public Administration (WGPA) has been set up by the three countries. It has

since held seven meetings and adopted the areas of cooperation as (i) integrated monitoring and evaluation, (ii) e-

governance, (iii) human resource development, (iv) citizen oriented service delivery. (v) anti-corruption and ethics,

and (vi) accountability and transparency.

INDIA - MALAYSIA COOPERATION : An MoU on cooperation in the field of Public Administration and

Governance was signed on 25th November 2013. Areas of cooperation under the MoU in the field of Public

Administration and Governance are (i) Human Resources Management; (ii) Improved systems of public service

delivery; (iii) e( Governance; (iv) Accountability and Transparency; (v) Capacity Building and skills up-grading; (vi)

Quality of Outcome; (vii) Governance Reforms of both countries; and (viii) Any other areas of co-operation in the field

of Public ministration and Governance to be jointly decided by the participants.

RIGHT TO INFORMATION : The Right to Information Act, 2005 empowers the citizens, promotes transparency and

accountability in the working of the Government, combat corruption, and make the democracy work for people in real

sense. The Act aims at creating an informed citizenry which would be better equipped to keep necessary vigil on the

instruments of governance and make the government more accountable to the governed.

The Act gives all the citizens the right to seek information held by any authority or body or institution of self

government established or constituted by or under the Constitution; or by any other law made by the Parliament or a

State Legislature; or by notification issued or order made by the Central Government or a State Government.

One has to simply make a request to the Public Information Officer of the office indicating the information sought and

the address at which the information is required. The request can be sent either by post or submitted in person in

Hindi, English or in the official language of the area and can also be sent through e-mail. If the applicant does not get

the information within 3 days or the applicant is not satisfied with the reply given to him, he can make an appeal

within 30 days to the appellate authority appointed by the authority who is an officer superior to the Public

Information Officer. The appellate authority has to decide the appeal within 30 days of the receipt of appeal. If the

applicant is not satisfied even with the decision of the appellate authority he can file a second appeal with the Central

Information Commission or the State Information Commission, as the case may be within 90 days.

OFFICIAL LANGUAGE – CONSTITUTIONAL / STATUTORY PROVISIONS : Article 343 (1) of the Constitution

provides that Hindi in Devanagari script shall be the Official Language of the Union, Article 343 (2) also provided for

continuing the use of English in official work of the Union for a period of 15 years (i.e., up to 25 January 1965) from the

date of commencement of the Constitution, Article 343 (3) empowered the parliament to provide by law for continued

use of English for official purposes even after 25 January 1965.



AWARDS SCHEMES : The Indira Gandhi Rajbhasha Awards Schemes have been in operation since 1986-87. Shields

are given every year to Ministries/Departments, Banks and Financial Institutions, Public Sector Undertakings and

Town Official Language Implementation Committees for outstanding achievements in the implementation of the

Official Language Policy of the Union.

INTER-STATE COUNCIL : Article 263 of the Constitution envisages establishment of an institutional mechanism to

facilitate coordination of policies and their implementation between the Union and the State Governments.

In pursuance of the recommendation made by the Sarkara Commission on Centre-State Relations, the Inter-State

Council was set up in the year 1990 through a Presidential Order dated 28th May, 1990.

The Inter-State Council is a recommendtory body and it investigates and discusses such subjects, in which some or

a1lof the States or the Union and one or more of the States have a common interest, for better coordination of policy

and action with respect to that subject. It also deliberates upon such other matters of general interests to the States as

ma’ be referred by je Chairman to the Council.

The Inter-State Council has also considered other pu1ilic policy and governance issues; these are:

(a) Contract Labour and Contract Appointments;

(b) Blueprint of an Action Plan on Good Governance;

(c) Disaster Mangement - Preparedness of States to cope with disasters;

(d) Atrocities on Scheduled Castes and Scheduled Tribes and Status of Implementation of the Scheduled

Castes/Scheduled Tribes (Prevention of Atrocities) Act, 1989.

EXECUTIVE

GOVERNOR : State executive consists of Governor and Council of Ministers with Chief Minister as its head. The

Governor of a State is appointed by the President for a term of five years office. Only Indian citizens above 35 years of

age are eligible for appointment to this office. Executive power of the State is vested in Governor.

Council of Ministers with Chief Minister as head, aids and advises Governor in exercise of his functions except in so far

as he is by or under the Constitution required to exercise his functions or any of them in his discretion. In respect of

Nagaland, Governor has special responsibility under Article 371 A of the Constitution with respect to law and order

and even though it is necessary for him to consult Council of Ministers in matters relating to law and order can

exercise his individual judgement as to the action to be taken.

LEGISLATURE : For every state, there is a legislature which consists of Governor and one House or, two Houses as

the case may be. In Bihar, Jammu and Kashmir, Karnataka, Maharashtra and Uttar Pradesh, there are two Houses

know Council and Legislative Assembly. In the remaining states, there is only one House known as legislative

assembly.

LEGISLATIVE COUNCIL : Legislative Council (Vidhan Parishad) of a state comprises not more than one-third of

total number of members in legislative assembly of the state and in no case less than 40 members (Legislative Council

of Jammu and Kashmir has 36 members vide Section 50 of the Constitution of Jammu and Kashmir). About one-third

of members of the council are elected by member of legislative assembly from amongst persons who are not its

member, one-third by electorates consisting of members of municipalities, district boards and other local authorities in

the state, one-twelfth by electorate consisting of persons who have been, for at least three years, engaged in teaching

institutions within the state not lower in standard than secondary school and a further one-twelfth by registered

graduates of more than three years standing.



Remaining members are nominated by Governor from among distinguished themselves in literature, science, art,

cooperative movements and social service. Legislative councils are not subject to dissolution but one-third of their

members retire every second year.

LEGISLATIVE ASSEMBLY : Legislative Assembly (Vidhan Sabha) of a state consists of not more than 500 and not

less than 60 members (Legislative Assembly of Sikkim has 32 members vide Article 371F of the Constitution) chosen by

direct election from territorial constituencies in the state. Demarcation of territorial constituencies is to be done in such

a manner that the ratio between population of each constituency and number of seats allotted to it, as far as practicable,

is the same throughout the state. Term of an assembly is five years unless it is dissolved earlier.

LOCAL GOVERNMENT

MUNICIPALITIES: Municipal bodies have a long history in India. The first such Municipal Corporation was set-up

in the former Presidency Town of Madras in 1688; and later in Bombay and Calcutta in 1726. While the Directive

Principles of State Policy refer to village Panchayats, there is no specific reference to Municipalities except the implicity

in Entry 5 of the State List. In order to provide for a common framework for urban local bodies and help to strengthen

the functioning of the bodies as effective democratic units of self government, Parliament enacted the Constitution

(74th Amendment) Act, 1992 (known as Nagarpalika Act) relating to municipalities in 1992. It came into force on 1

June, 1993. A new part IX-A relating to the Municipalities added to provide for among other things, coxistitutiO1 of

three types of Municipalities, i.e., Nagar Panchayats for areas in transition from a rural area to urban area, Municipal

Councils for smaller urban areas and Municipal Corporation for large urban areas.

PANCHAYATS: Article 40 of the Constitution which enshrines one of the Directive Principles of State Policy lays

down that the State shall take steps to organise village panchayats and endow them with such powers and, authority

as may be necessary to enable them to function as units of self-government. A new Part IX relating to the Panchayats

has been inserted in the Constitution to provide for among other things, Gram Sabha in a village or group of villages;

constitution of Panchayats at village and other level or levels; direct elections to all seats in Panchayats at the village

and intermediate level, if any, and to the offices of Chairpersons of Panchayats at such levels; reservation of seats for

the Scheduled Castes and Scheduled Tribes in proportion to their population for membership of Panchayats and office

of Chairpersons in Panchayats at each level; reservation of not less than one-third of the seats for women; fixing tenure

of five years for Panchayats and holding elections within a period of six months in the event of supersession of any

Panchayat.

ELECTION COMMISSION : Election Commission of India was constituted on 25th January, 1950 with its

headquarters at New Delhi. Election Commission of India (ECI) is a permanent and independent constitutional body

vested with the powers and responsibility of superintendence, direction and control of the entire process of conduct of

elections to Parliament and to Legislatures of the States and the Union Territories and elections to the offices of

President and Vice-President held under the Constitution.

Election Commission decides the election schedules for the conduct of elections - both general elections and bye-

elections. It prepares, maintains and periodically updates the electoral rolls, supervises the nomination of candidates,

registers political parties, monitors the election campaign, including funding and expenditure of candidates. It also

facilitates the coverage of the election process by the media, carries out the voter education and awareness measures,

organizes the polling stations/ booths where voting takes place, and oversees the counting of votes and the declaration

of results. It conducts polling through EVMs (Electronic Voting Machines) and recently, on pilot basis, introduced

VVPAT (Voter Verifiable Paper Audit Trail). The Election Commission has also provided for compulsory identification

at the time of voting by means of Electors Photo Identity Cards (EPICs) and distribution of Photo Slip close to polls.



VOTER TURNOUT HIGHLIGHTS OF LOK SABHA ELECTION 2014

LS 2014 LS 2009

1. Total Votes Polled in the Lok Sabha Elections 55.38 crore 41.7 crore

2. Total Electorate 83.41 crore 71.69 crore

3. Total Voter Turnout percentage 66.4%

(Highest Ever)

58.19%

4. Women Turnout (as percentage of total women electors)

65.63% 55.82%

5. Male Turnout 67.09% 60.24

6. Gender Gap 1.46%

Percentage Points (Lowest ever)

4.42

Percentage points

CHAPTER- 4 | AGRICULTURE


CHAPTER FOUR | AGRICULTURE

AGRICULTURE is the principal source of livelihood for more than 55 per cent of the population of this country.

Agriculture provides the bulk of wage goods required by non-agriculture sectors and most of the raw materials for the

industries sector. The combined efforts of Central Government, state governments and the farming community have

succeeded in achieving record production of 257.13 million tonnes of food grains during 2012-13.

MAJOR PROGRAMMES OF DEPARTMENT OF AGRICULTURE

Rashtriya Krishi Vikas Yojana (RKVY) : This scheme was launched in 2007-08 with an outlay of Rs. 25,000 crore for

the XI Plan to incentivize states to enhance investment in Agriculture and Allied sectors to achieve 4 per cent growth

rate during the Plan period and to empower states to select, plan, approve and execute growth generating intervention

and build agri-infrastructure as per their priorities and agro-climatic requirements.

Recent Initiatives by The Agriculture Ministry Under RKVY

i. Activities undertaken through Bring Green Revolution to Eastern India (BGREI):

(a) Cluster demonstrations for rice and wheat in Non-NFSM districts.

(b) Asset building for water management activities such as construction of Dugwells/Shallow Tube

wells/Borewells/Lift Irrigation such as Drum Seeders/Zero Till Seed Drills, Paddy Transplanters and

Pumpsets.

(c) Site specific activities for enhancing the production & productivity of crop. Activities also include other

crop development programme, construction of water channels, power, etc.

(d) Marketing Support for the Promotion/Creation of Primary Processing Facilities including farm level

storage, drying, grading, par-boiling of paddy, bagging etc.; Promotion of Self Help Groups (SHGs);

Institution building/ linkage for procurement operations.

ii. National Mission for Saffron : This sub-scheme under RKVY in 2010-11 with an overall budgetary support of

Rs. 288.06 crore over four years with an objective to bring economic revival of Saffron farming in J & K.

Allocation for this scheme was Rs. 39.44 crore in 2010-11 and in 2011-12 and 2012-13. The fund earmarked for

this programme for 2013-14 under RKVY is Rs. 100 crore.

iii. National Mission for Protein Supplements : This sub-scheme was launched in 2011-12 and an allocation of Rs.

500 crore was provided during 2012-13 to take up activities to promote animal based protein production

through livestock development, dairy farming rearing and fisheries in selected blocks. The fund earn

programme for 2013-14 is Rs. 400 crore.

(iv) Vidarbha Intensified Irrigation Development Programne : This scheme was announced during 2012-13, with

an allocation of 300 crore with the objective to bring in more farming areas under protective irrigation in

Vidarbha region. The funds earmarked for the this programme for 2013-14 is Rs. 300 crore.

National Horticulture Mission (NHM) : This is a Centrally Sponsored Scheme launched in 2005-06 for promotion of

holistic growth of the horticulture sector comprising of fruits, vegetables, root & tuber crops, mushroom, spices,

flowers, aromatic plants, cashew and cocoa. While Government of India (GOI) contributes 85%, 15% share is

contributed by State Governments.

National Food Security Mission : National Food Security Mission was launched in 2007-08 to increase the production

of rice, wheat and pulses by 10, 8 and 2 million tonnes respectively by the end of Eleventh Plan through area expansion

and productivity enhancement; restoring soil fertility and productivity creating employment opportunities, and

enhancing farm level economy.



The basic strategy of the Mission is to promote and extend improved technologies, i.e., seed, micro-nutrients, soil

amendments, integrated pest management, farm machinery and resource conservation technologies along with

capacity building of farmers. The major interventions/activities covered under NFSM include cluster demonstrations

of rice, wheat and pulses, distribution of improved varieties/hybrid seeds, need based plant and soil management,

resource conservation techniques/energy management, efficient water/application tools, cropping system based

training and local initiatives, award for best performing districts, etc.

National Mission for Sustainable Agriculture (NMSA) : NMSA is one of the eight Missions outlined under National

Action Plan on Climate Change. The strategies and programme of action outlined in the Mission Document, that was

accorded in principle approval by Prime Minister’s Council on Climate Change on September 23, 2010 are aimed at

promoting sustainable agriculture through seventeen deliverables focusing on ten key dimensions of Indian

agriculture.

NMSA as a restructured Mission for 12th Plan has been conceptualized by subsuming Rainfed Area Development

Programme (RADP), National Mission on Micro Irrigation (NMMI), National Project on Organic Farming (NPOF),

National Project on Management of Soil Health & Fertility (NPMSH&F) and Soil and Land Use Survey of India under

its domain. NMSA will accord special focus for development of rainfed areas, resource conservation, water use

efficiency and soil health management. NMSA will also replicate the learning of the National Initiatives of Climate

Resilient Agriculture (NICRA) being implemented by ICAR in selected blocks on pilot basis.

NMSA is expected to transform Indian agriculture into a climate resilient production system through suitable

adaptation and mitigation measures in the domains of both crop husbandry and animal husbandry.

National Agricultural Insurance Scheme (NAIS) : NAIS with the aim to increase coverage of farmers, crops and risk

commitment was introduced in the country from Rabi 1999-2000 replacing Comprehensive Crop Insurance Scheme

(CCIS). The main objective of the scheme is to protect the farmers against the crop losses suffered natural calamities,

such as, drought, flood, hailstorm, cyclone, pests and diseases. The scheme is implemented by the Agriculture

Insurance of India Ltd. (AIC).

Agriculture Marketing : The Government has been playing an important role in developing Agriculture Marketing

system in the country. The Marketing Division of the Department of Agriculture and Cooperation (DAC) is concerned

with the policy and programme aspects of agricultural marketing and its implementation by the three organizations

under its administrative control, namely, the Marketing & Inspection (DM1), Faridabad, Ch. Charan Singh National

Institute of Agricultural Marketing (NIAM), Jaipur and Small Farmers Agri-Business Consortium (SFAC), New Delhi.

Standardization and Grading : The Agricultural Produce (Grading & Marketing) Act, 1937 provides for grading and

marking of agricultural and other produce. The Act empowers Central Government to make Rules for : (a) fixing grade

designation to indicate quality of any scheduled article, (b) defining quality indicated by every grade designation and

(c) specifying grade designation marks to represent particular grade designation. Standards notified as per provisions

of the Act are popularly called Agmark Standards. These standards differentiate between quality and 2-3 grades are

prescribed for each commodity. Grades help farmers/traders to get prices for their agricultural commodities as per the

quality produced by them and consumers get the desired quality.

Emphasis on Organic Methods and Eco-Sensitive Farming : Government is promoting Organic farming through

various schemes like National Project on Organic Farming (NPOF), National Horticulture Mission (NHM),

Horticulture Mission for North East and Himalayan State (HMNEH), National Project on Management of Soil Health

and Fertility (NPMSHF) and Rashtriya Krishi Vikas Yojana (RKVY). Under National Project on Organic Farming

(NPOF), financial assistance is provided as back ended subsidy through NABARD for setting up/strengthening of

existing bio-fertilizer and / or biopesticide production units, assistance upto @25 per cent of total financial outlay or

Rs. 40 lakh, whichever is less, and for setting up of Fruit and Vegetables Wastes/ Agro-Wastes Compost Production

Units @ 33 per cent of total financial outlay or 60 lakh, whichever is less. Under National Horticulture Mission (NHM).



For eco-sensitive farming, Government is promoting balanced use of fertilizers and various measures taken to promote

balanced use of fertilizers are as below:

• National Project on Management of Soil Health and Fertility has been under implementation since 2008-09 to

promote soil test based, balanced and judicious use of chemical fertilizers in conjunction with organic sources of

nutrients to improve soil fertility.

• Indian Institute of Soil Science (IISS), Bhopal has been sanctioned a project for preparation of Geo-Referenced

Soil Fertility maps including interlinking of soil fertility status with Soil Test Crop Response (STCR) data to

generate site specific recommendations for use of chemical fertilizers in 19 major states (171 districts).

• Ministry of Agriculture has been encouraging use of customized fertilizers with an objective to promote site

specific nutrient management so as to achieve maximum fertilizer use efficiency. These customized fertilizers are

multi-nutrient carrier designed to contain macro and micro nutrients and are soil and crops specific, formulated

on the basis of soil testing results.

• Financial assistance for two days training for farmers on balanced use of fertilizers is provided @ 10,000/- per

training through State Government/ ICAR/SAUs/Fertilizer Industry.

• Field demonstrations on balanced use of fertilizers are conducted at farmers field for which financial assistance

of 10,000/- per demonstration of one acre area is provided through State Government /ICAR/SAUs/Fertilizer

Industry.

• For confidence building of farmers about usefulness of balanced use of fertilizers, soil testing laboratories

conduct Frontline Field Demonstrations (FFD) on balanced use of fertilizers and financial assistance @ 20,000/-

per FFD is provided.

Livestock Production : Livestock production and agriculture are intrinsically linked, each being dependent on the other, and both crucial for overall food security. According to the estimates of the Central Statistics Office (CSO), the value of output from livestock sector at current prices was about 5,37,535 crore during 2012-13 which is about 25.63% of the value of output from total agricultural, fishing, and forestry sector at current price and 26.02% at constant prices (2004-05). Milk Production : India continues to be the largest producer of milk in the world. Several measures have been initiated by the Government to increase the productivity of livestock, which has resulted in increasing the milk production significantly from the level of 102.6 million tonnes at the end of the Tenth Plan (2006-07) to 127.9 million tonnes at the end of the Eleventh Plan (2011-12). Milk production in the beginning of Twelfth Plan (2012-13) was 132.43 million tonnes with an annual growth rate of 3.54%. The per capita availability of milk was around 296 grams per day in 2012-13. Fisheries Production : The country has vast potential for fisheries in view of our long coastline of about 8,118 kms apart from the inland water resources. As per the estimates of CSO, the value of output from fisheries sector at current price was about 91,541 crore during 2012-13 which was about 4.36% of the value of agricultural and allied sector output at current price. India is the second largest producer of fish and the second largest producer of fresh water

fish in the world. Fish production has increased from 41.57 lakh tonnes (24.47 Iakh tonnes for marine and 17.10 lakh tonnes for inland fisheries) in 1991-92 to 90.40 lakh tonnes (33.21 lakh tonnes for marine and 57.19 lakh tonnes for inland fisheries) in 2012-13. Agriculture Research : Agriculture in India accounts for over 14% of the GDP and 12% of country’s exports, providing employment to over 50% of the work force and striving towards food security as well as inclusive growth and development. This has been possible through pertinent agricultural research, education and extension enabling development and infusion of appropriate technologies by ICAR Institutes and Agricultural Universities, and taking them across to farmers through Krishi Vigyan Kendras (KVKs). National e-Governance Plan in Agriculture (NeGP-A) : This Centrally Sponsored Mission Mode Project (MMP) sanctioned at a total cost Rs. 227.79 crore for implementation in seven States during Phase-I of the programme introduced during the last phase of the 11th plan (2010-11). The NeGP-A aims to achieve rapid development of agriculture in India through the use of ICT by ensuring timely access to agriculture related information for the farmers of the country.

CHAPTER-5 | CULTURE AND TOURISM


CHAPTER FIVE | CULTURE AND TOURISM

CULTURE plays an important role in the development agenda of any nation. Ministry of Culture preserves and

conserves ancient cultural heritage and promotes art and culture, both tangible and intangible. The Ministry also

nurtures Gandhian Heritage and is responsible for commemoration of important historical events and centenaries of

great personalities.

INTANGIBLE CULTURAL HERITAGE

LALIT KALA AKADEMI : To promote and propagate understanding of Indian art, both within and outside the

country, the Government of India established Lalit Kala Akademi (National Akademi of Arts) at New Delhi on 5

August, 1954.

The Lalit Kala Akademi accords recognition to art institutions/ associations and extends financial assistance to these

bodies as well as State Academies. It also gives scholarships to deserving young artists belonging to its regional

centres. The Akademi brings out monographs on the works of Indian contemporary artists in Hindi and English and

books on contemporary, traditional, folk and tribal arts authored by eminent writers and art critics, biannual art

journals, Lalit Kala Contemporary (English), Lalit Kala Ancient (English) and Samkaleen Kala (Hindi).

SANGEET NATAK AKADEMI : Sangeet Natak Akademi, India’s National Academy of Music, Dance and Drama, is a

pioneer in creation of modern India that led politically to India’s freedom in 1947. The ephemeral quality of the arts,

and the need for their preservation led to the adapting of a democratic system in which the common man had the

opportunity to learn, practise and propagate the art.

In 1961, Sangeet Natak Akademi was reconstituted by the Government as a society and registered under the Societies

Registration Act, 1860 (as amended in 1957). These functions are set down in the Akademi’s Memorandum of

Association, adopted at its registration as a society on 11th September, 1961.

The Akademi has worked towards building up a unified structure of support for the practice of music, dance and

drama in India encompassing traditional and modern forms, and urban as well as rural environments. The festivals of

music, dance and drama presented or promoted by the Akademi are held all over India.

PERFORMING ARTS

MUSIC : Two main schools of classical music—Hindustani and Carnatic continue to survive through oral tradition

being passed on by teachers to disciples. This has led to the existence of family traditions called gharanas and

sampradayas.

DANCE : Dance in India has an unbroken tradition of over 2,000 years. It themes are derived from mythology, legends

and classical literature, two main divisions being classical and folk. Classical dance forms are based on ancient dance

discipline and have rigid rules of presentation. Important among them are Bhrata Natyam, Kathakali, Kathak, Manipuri,

Kuchipudi and Odissi. Bharata Natyam, though it derives its roots from Tamil Nadu, has developed into an all India

form. Kathakali is a dance form of Kerala. Kathak is a classical dance form revitalized as a result of Mughal influence on

Indian culture. Manipur has contributed to a delicate, lyrical style of dance, called Manipuri, while Kuchipudi is a dance

form owing its origin to Andhra Pradesh. Odissi from Odisha, once practised as a temple dance, is today widely

exhibited by artistes across the country. Each region limits ethnic folk/tribal dances.



DANCES OF INDIA

Dance in India has an unbroken tradition of over 2000 years. Two main divisions of its forms are classical and folk.

The criteria for being considered as classical is the sty1e’s adherence to the guidelines laid down in Natyashastra,

which explains the Indian art of acting. The Sangeet Natak Akademi currently confers classical status on eight Indian

classical dance styles: Bharatanatyam (Tamil Nadu), Kathak (North India), Kathakali (Kerala), Kuchipudi (Andhra

Pradesh), Manipur' (Manipur), Mohiniyatam (Kerala), Odissi (Orissa), and Sattriya (Assam).

Folk dances of India vary according to the region and have no specific grammar. They fit in with the scheme of

festivals in each region,

BHARATANATYAM : Bharatanatyam originated in Tamil- Nadu and was earlier known as Daasiyatam. This dance

form has been handed down through the centuries by dance teachers (or gurus) called nattuwanars and the temple

dancers, called devadasis, In the sacred environment of the temple these familes developed and propagated their

heritage. The training traditionally took around seven years under the direction of the nattuwanar who were scholars

and persons of great learning.

Instruments Used: Mridangam, Violin, Veena, Flute and Talam (Nattuvangam/cymbals)

Famous Dancers: Bala Saraswati, CV. Chandrasekhar, Leela Samson, Mrinalirti Sambhai, Padrna Subrarnanyam,

Rukmini Devi, Sanyukta Panigrahi, Sonal Mansingh, Yamini Krishnamurthi

KATHAK : Kathak means 'to tell a story' This north Indian dance form is inextricably bound with classical Hindustani

music, and the rhythmic agility of the feet is accompanied by the table or pakhawaj. Traditionally the stories were of

Radha and Krishna, in the Natwari style (as it was then called) but the Moghul invasion of North India had a serious

impact on the dance. The dance was taken to Muslim courts and thus it became more entertaining and less religious in

content. More emphasis was laid on nritta, the pure dance aspect and less on abhinaya (expression and emotion).

Instruments Used: Pakwaj. Tabla, Harmonium. Sarengi and Talam(cymbals)

Famous Dancers: Bharati Gupta, Birju Maharaj, Damayanti Joshi, Durga Das, Gopi Krishna, Kumudini Lakhia,

Sambhu Maharaj, Sitara Devi

KATHAKALI : Kathakali (katha, story"; kali, "performance") is a highly stylized classical dance drama form which

originated from Kerala in the 17th century. This classical dance form is particularly noticed for dancer's elaborate

costume, towering head gear.

Ustad Vilayat Khan and Padma Vibhushan : Ustad Vilayat Khan controversially refused the padma Vibhushan in

2000, calling it an insult and saying he would not accept any award that other sitar players had received earlier. In his

words ,”If there is any award for sitar in India , I must get It first.

MOHINIYATTAM : The theme of Mohiniyattam dance is love and devotion to god. Vishnu or Krishna is most often

the hero. The spectators can feel His invisible presence when the heroine or her maid details dreams and ambitions

through circular movements, delicate footsteps and subtle expressions. Through slow and medium tempos, the dancer

is able to find adequate space for improvisations and Suggestive bhavas or emotions.

The basic dance steps are the Adavus which are of four kinds: Taganam, Jaganam, Dhaganarn and Sammisram. These

names are derived from the nomenclature called vairtari.

The Mohiniyattam dancer maintains realistic make-up and adorns a simple costume, in comparison to costumes of

other dances, such as Kathakali. The dancer is attired in a beautiful white with gold border Kasavu saree of Kerala,

with the distinctive white jasmin flowers around a French bun at the side of her head.

Instruments Used: Chenda, Maddalam, Cynioals and Ela taalam.

Famous Dancers: Kalamandalam Kshemavati, Kanak Rele, Kalamandalam Satyabhama, bharati Sivaji, Sunanda Nair.

ODISSI : Odissi, the dance .form from Orissa, is supposed to be the oldest surviving classical dance form from

India.Odissi is based on the popular devotion to Lord Krishna and the verses of the Sanskrit play Geet Govinda are



used to depict the love and devotion to God. The Odissi dancers use their head. bust and torso in soft flowing

movements to express specific moods and emotions.

The form is curvaceous, concentrating on the tribhang or the division of the body into three parts, head, bust and torso;

the mudras and the expressions are similar to those of Bharatnatyam.

Odissi performances are replete with lores of the eighth incarnation of Vishnu, Lord Krishna lt is a soft, lyrical classical

dance which depicts the ambience of Orissa and the philosophy of its most popular deity, Lord Jagannath, whose

temple is in Puri. On the temple walls of Bhubaneshwar, Puri and Konark the dance sculptures of Odissi are clearly

visible.

Instruments

Used: Pakwaj, table, harmonium, flute and cymbals.

Famous Dancers: Debaprasad Das, Dhirendra Nath Pattnaik, lndrani Rahman, Kelucharan Mahapatra, Priyambada

Mohanty, Sonal Mansingh.

SATTRIYA : Sattriya Nritya emerged front the sanctum of Assam’s sattras in the latter half of the 19th century Until

the first half of the 19th century this dance style was performed in a highly ritualistic manner by male dancers alone as

the sattras had maintained certain rigid disciplines and austerities within their

KATHAKALI : Kathakali billowing skirts, and long silver nails. Recent developments in Kathakali over the years

include improved looks, refined gestures and added themes besides more ornate singing and precise drumming,

Kathakali is performed regularly at festivals in temples, at cultural shows for connoisseurs and also at international

events, occasionally in fusion dance experiments.

Instruments Used : Chenda, Maddalam, Cymbals and Ela taatam

KUCTDPUDI : Kuchipudi derives Its name from the village Kuchipudy (Kuchelapuram) in Andhra Pradesh from

where it originated. The dance drama that still exists today and can most closely be associated with the Sanskrit

theatrical tradition is Kuchipudi which is Kuchipudy also known as bhagavata Mela Natakarm. The actors sing and

dance, and the style is a blend of folk and classical. Arguably this is why this technique has greater freedom and

fluidity than other dance styles, Famous dancers: josyula Seethararmaiah, Vempathi Chinna Sathyarm

Instruments Used: Mridangam, Violin, Veena, Flute and Talam (Nattuvangarn/ cymbals)

MANIPURI : This dance style was originally called jogai which means circular movement. In ancient texts it has been

compared to the movement of the planets around the sun. It is said that when Krishna. Radha and the gopis danced

the Ras Leela, Shiva made sure that no one disturbed the beauty of the dancing. Parvati, the consort of Lord Shiva also

wished to see this dance, so to please her he chose the beautiful area of Manipur and re-enacted the Ras Leela.

Hundreds of centuries later, in the 11th century. during the reign of Raja Loyamba, prince Khamtsa of the Khomal

dynasty and Princess Thaibi , of the Mairang dynasty re-enacted the dance and it became known as Lai-Haraoba, the

most ancient dance of Manipur,

Instruments Used: Pung and cymbals

Famous Dancers: Guru Blum Sinha, Jhaveri Sisters, Nayana jhaveri, Nirmala Mehta, Savita Mehta



MUSIC OF INDIA

Music is one of the oldest and finest forms of human expression. India has a very rich tradition in music. India's

classical music tradition, - including Carnatic and Hindustani music, has a history spanning millennia and developed

over several eras. It remains fundamental to the lives of Indians today as sources of spiritual inspiration, cultural

expression and pure entertainment.

CLASSICAL MUSIC : The two main traditions of classical music are Carnatic music, found predominantly in the

peninsular regions, and Hindustani music, found in the northern and central regions. of academic research on the

dance form all contributed to the recognition and acceptance of Sattriya Nritya as one of the eight classical dance forms

of India.

The core of Sattriya Nritya has usually been mythological stories. This was an artistic way of presenting mythological

teachings to the people in an accessible, immediate, and enjoyable manner traditionally; Sattriya was performed only

by bhokots (male monks) in monasteries as a part of their daily rituals or to mark special festivals. Today, in addition

to this practice, Sattriya is also performed on stage by men and women who are not members of the sattras, on themes

not merely mythological.

Instruments Used: Violin,cyrnbals and Khol (Drum).

Hindustani Music

Hindustani music is an Indian classical music tradition that goes back to Vedic times around 1000 BC. It further

developed circa the 13th and 14th centuries AD with Persian influences and from existing religious and folk music The

practice of singing based on notes was popular even from t ne Vedic times where the hymns in Sama Veda, a sacred

text, were sung as Samagana'and not chanted. Developing a strong and diverse tradition over several centuries, it has

contemporary traditions established primarily in India but also in Pakistan and Bangladesh. In contrast to Carnatic

music, Hindustani music was not only influenced by ancient Hindu musical traditions, historical Vedic philosophy

and native Indian sounds but also enriched by the Persian performance practices of the Mughals. Classical genres are

dhrupad, dhamar, khyal, tarana and sadra.

CARNATIC MUSIC : The present form of Carnatic music is based on historical developments that can be traced to the

15th - 16th centuries AD and thereafter however, the form itself is reputed to have been one of the gifts bestowed on

man by the gods of Hindu mythology. It is one of the oldest musical forms that continue to survive today.

Carnatic music is melodic, with improvised variations. It consists of a composition with improvised embellishments

added to the piece in the forms of Raga Alapana, Kalpanaswaram, Neraval, and, in the case of more advanced

students, Ragam Tanam Pallavi The main emphasis is on the vocals as most compositions are written to be sung, and

even when played on instruments, they are meant to be performed in a singing style. There are about 7.2 million ragas

(or scales) in Carnatic Music, with around 300 still in use today.

Purandara Dasa is considered the father of carnatic music. Sri Tyagaraja, Sri Shyama Shastry and Sri Muthuswami

Dikshitar are considered the trinity of carnatic music and with them came the golden age in carnatic music in the 18th-

19th century.

Noted artists of Carnatic Music include MS Subbulakshmi, Ariyakudi Ramanuja iyengar (the father of the current

concert format). Semmangudi Srinivasa iyer, Prapancharn Sita Raman, TN Se-shagopalan and more recently Sanjay

Subrahmanyan, Balamuralikrishna, K J Yesudas, N. Ramani, Lalgudi Jayaraman, Umayalapuram sivaraman,

Dr.Mysore Manjunath, Mysore Nagaraj, TM Krishna, Bombay jayashri. etc.

Every December, the city of Chennai in India has its six week-long Music Season, which has been described as the

world's largest cultural event. It has served as the foundation for most music in South India, including folk music,

festival music and has also extended its influence to film music in the past 100-150 years or so.



SAHITYA AKADEMI : Sahitya Akademi is the Indian National Academy of Letters, to promote Indian literature

through publications translations, seminars, workshops, cultural exchange programmes and literary meets organised

all over the country. The Akademi was founded in March 1954 as an autonomous body fully funded by he Department

of Culture. It was registered as a Society in 1956 under the Societies Registration Act, 1860. The Akademi has

recognised 24 languages. It has an Advisory Board for each of the languages that suggests various programmes and

publications in the concerned languages.

The three fellowships by Sahitya Akademi are:

1. Sahitya Akademi Honorary Fellowship

2. Anand Fellowship

3. Premchand Fellowship

NATIONAL SCHOOL OF DRAMA : The National School of Drama (NSD)—one of the foremost theatre institutions

in the world and the only one of its kind in India was set up by Sangeet Natak Akademi in 1959. Later in 1975, it

became an autonomous organisation, totally financed by Department of Culture. The objective of NSD is to train in

students in all aspects of theatre, including theatre history, production, scene design, costume design, lighting, make-

up, etc. The training course at NSD is of three years duration.

The School has a performing wing, a Repertory Compar ‘to establish professional theatre and regular experimental

work. The NSD as promoted children’s theatre. The Theatre-in-Education Company(renamed ar Sanskar Rang Toli)

was founded in 1989 and has been actively involved in production of plays for children, organising summer theatre

workshops in the school of Delhi and also promoting children’s theatre through Saturday Club.

ZONAL CULTURAL CENTRES (ZCC) : Zonal Cultural Centres aim to arouse awareness of the local cultures and to

show how these merge into zonal identities and eventually into the rich diversity of India’s composite culture. These

centres have already established themselves as a premier agency in the field of promotion, preservation and

dissemination of culture in the entire country. They promote performing arts by significant contribution in literary and

visual arts.

TANGIBLE CULTURAL HERITAGE

ARCHAEOLOGICAL SURVEY OF INDIA : The Archaeological Survey of India (ASI) was established in 1861. It

functions as an attached office of the Department of Culture. The organisation is headed b he Director General.

The major activities of the Archaeological Survey of India are:

i) Survey of archaeological remains and excavations;

ii) Maintenance and conservation of centrally protected monuments, sites and remains;

iii) Chemical preservation of monuments and antiquarian remains;

iv) Architectural survey of monuments;

v) Development of epigraphical research and numismatic studies;

vi) Setting up and re-organisation of site museums;

vii) Expeditions abroad;

viii) Training in Archaeology;

ix) Publication of technical reports and research works.

NATIONAL ARCHIVES OF INDIA : The National Archives of India (NAT), New Delhi known until independence

as Imperial Record Department, was originally established in Kolkata on 11 March, 1891. It is the official custodian of

all non-current record of permanent value of the Government of India and its predecessor bodies. It has a Regional

Office at Bhopal and three Record Centres at Bhubaneswar, Jaipur and Puducherry.

CHAPTER-6 | BASIC ECONOMIC DATA


CHAPTER SIX | BASIC ECONOMIC DATA

THE Ministry of Statistics and Programme Implementation came into existence as an Independent Ministry on 15th

October, 1999 after the merger of the Department of Statistics and the Department of Programme Implementation. The

Ministry has two wings, one relating to Statistics and the other relating to Programme Implementation. The Statistics

Wing redesignated as National Statistics Office (NSO) consists of the Central Statistical Office (CSO) and the National

Sample Survey Office (NSSO). The Programme Implementation Wing has three Divisions, namely : (i) Twenty Point

Programme, (ii) Infrastructure and Project Monitoring, and (iii) Members of Parliament Local Area Development

Scheme. Besides these three wings, there is National Statistical Commission (NSC) created through a Resolution of

Government of India and one autonomous institute, viz., Indian Statistical Institute (ISI) declared as an institute of

National importance by an Act of Parliament.

NATIONAL STATISTICAL COMMISSION (NSC) : The Government of India through a resolution dated 1st June,

2005 decided to set up the National Statistical Commission (NSC). The setting up of the NSC followed the decision of

the Cabinet to accept the recommendation of the Rangarajan Commission, which reviewed the Indian Statistical

System in 2001. The National Statistical Commission (NSC) was initially constituted w.e.f. 12th July, 2006, to serve as a

nodal and empowered body for all core statistical activities of the country, to evolve, monitor and enforce statistical

priorities and to ensure statistical coordination.

PER CAPITA REAL INCOME AND PER CAPITA NET NATIONAL INCOME : The per capita real income, i.e. per

capita net national income at factor cost at constant (2004-05) prices, as per the advance estimates for 2013-14 turns

out to be Rs. 39,961 as against the first revised estimate of Rs. 38,856 for 2012-13. This indicates a growth of per capita

real income of about 2.8 percent during 2013-14. The per capita income at current prices during 2013-14 is estimated at

Rs. 74,920 as compared to Rs. 67,839 in 2012-13 showing a rise of 10.4 percent.

NATIONAL INCOME : The National Income of the country (which is the net national income at factor cost) during

2013-14 at current prices is estimated at Rs. 92.4 lakh crore, and at constant (2004-05) prices, at 49.3 lakh core. At

constant (2004-05) prices, the National Income has shown a growth of 4.2%. At current prices, the growth rate of

National Income is 11.9%.

ANNUAL SURVEY OF INDUSTRIES (ASI) : The Annual Survey of Industries (ASI) is the principal source of

industrial statistics in India. It provides statistical information to access and evaluate, objectively and realistically, the

change in the growth, composition and structure of the organized manufacturing sector comprising activities related to

manufacturing processes, repair services, generation, transmission etc. of electricity gas and water supply and cold

storage. The survey is statutory under the Collection of Statistics Act, 1953/2008.

The ASI extends to the entire country. The survey covers all factories registered under Sections 2m(i) and 2m(ii) of the

Factories Act, 1948. The survey also covers bidi and cigar manufacturing establishments registered under the Bidi and

Cigar Workers (Conditions of Employment) Act, 1966. All the electricity undertakings engaged in the generation,

transmission and distribution of electricity registered with the Central Electricity Authority (CEA) were covered under

ASI up to 1997-98 irrespective of their employment size.

INDEX OF INDUSTRIAL PRODUCTION (IIP) : The Index of Industrial Production (IIP) is released every month in

the form of Quick Estimates with a time-lag of about 6 weeks as per the Special Data Dissemination Standard (SDDS)

norms of IMF. The estimates are also simultaneously being released as per use-based classification viz., basic goods,

capital goods, intermediate goods, consumer durables and non-durables. These estimates are revised subsequently on

receipt of updated production data from 16 different source agencies in various Ministries/Departments/Attached/

Subordinate Offices. The major source of data of IIP is, however, the Ministry of Commerce and Industry that supplies

data for 268 item groups, with a weight of 45.6 per cent in overall IIP.



THE NATIONAL SAMPLE SURVEY OFFICE (NSSO) : The National Sample Survey Office (NSSO), in the Ministry

of Statistics & Programme Implementation, is responsible for conducting large scale sample surveys, in diverse fields,

on an all India basis. Primary data is collected regularly through nationwide household surveys on various Socio-

Economic subjects. Annual Survey of Industries (ASI) under the Collection of Statistics Act and Enterprise Surveys, as

a follow up of the Economic Census. NSSO collects data on rural and urban prices, plays a significant role in the

improvement of crop statistics through supervision of the area enumeration and crop estimation surveys of the State

agencies. It also maintains a frame of urban area units for use in sample surveys in urban areas.

TWENTY POINT PROGRAMME : The Twenty Point Programme (TPP) was conceived to improve the quality of life

of the people, especially those living below the poverty line. It gives a thrust to schemes relating to poverty alleviation,

employment generation in rural areas, housing, education, family welfare & health, protection of environment and

many other schemes having a bearing on the quality of life, especially in the rural areas. The programme, initiated in

1975 was restructured in 1982, 1986 and 2006. The restructured programme, known as Twenty Point Programme (TPP)

— 2006, became operational with effect from 1st April, 2007.

MEMBERS OF PARLIAMENT LOCAL AREA DEVELOPMENTS SCHEME : The Members of Parliament Local Area

Development Scheme (MPLADS) was launched by the Government of India on 23rd December, 1993 mechanism for

Members of Parliament to recommend works of developmental nature for creation of durable community assets and

for provision of basic facilities including community infrastructure, based on locally felt need to be taken up in their

Constituencies/States. Initially the MPLADS was under the control of Ministry of Rural Development. The subject

relating to the MPLAD Scheme was transferred to this Ministry in October, 1994. The scheme is governed by a set of

Guidelines, which have been comprehensively revised from time to time. The present Guidelines were issued in

August 2012.

The salient features of the MPLAD scheme are as follows:

(i) MPLADS is a plan scheme fully funded by Government of India, under which funds are released in the form

of Grant-in-aid, as special Central Assistance to States.

(ii) In 1993-94, when the scheme was launched, an amount of 5 lakh per MP was allotted which was enhanced to 1

crore per MP per annum from 1994-95 and to 2 crore from 1998-99. This was further increased to 5 crore from

2011-12. MPLADS funds is released in two instalments of 2.5 crore each by the Government of India directly to

the District Authorities for execution of the eligible works recommended by the MPs, by following the State

Government administrative, technical and financial rules.

(iii) The funds released under the scheme are non-lapsable i.e., the funds not ‘released in a particular year will be

carried forward for making releases in the subsequent years subject to eligibility.

(iv) Examining the eligibility, sanctioning, funding, selection of implementing agencies, prioritization and overall

execution and monitoring of the scheme at the ground level, is done by the District Authorities.

(v) The Lok Sabha Members shall recommend works in their respective constituencies. The elected members of

the Rajya Sabha can recommend works anywhere in the State from which they are elected. Nominated

Members of the Lok Sabha and Rajya Sabha can recommend works for implementation anywhere in the

country.

(vi) Right from the inception of the scheme, works for creation of durable assets of national priorities viz, drinking

water, primary education, Public health, sanitation and roads etc. have been given priority.

(vii) MPs can also recommend community infrastructure and public utility building works for registered

Societies/Trusts and Cooperative Societies up to a ceiling for 1 crore in a financial year. The Trusts/Societies

and Cooperative Societies are eligible to receive only 50 lakh in their lifetime. However Trust/Societies that

run charitable residential homes for orphans, old/aged persons, widows, lepers, visually impaired,

spastic/mentally retarded children or for deaf and dumb children are eligible for receiving a maximum of 1

crore in their entire lifetime for creation of charitable and residential home. The structure constructed with

MPLADS funds shall be the property of State/UT Government.

(viii) Special attention is given for infrastructural development of areas inhabited by Scheduled Castes and

Scheduled Tribes population by earmarking 15 per cent and 7.5 per cent respectively of MPLADS funds for



those areas and in case there is insufficient tribal population in the area of Lok Sabha Member, they may

recommend this amount for the creation of community assets in tribal areas outside of their constituency

within their state of election. In case a state does not have ST inhabited areas, this amount may be utilized in

SC inhabited areas and vice-versa.

(ix) Also to encourage Trusts/Societies to work for the betterment of the tribal people, the ceiling of Rs. 50 lakh has

been increased to Rs. 75 lakh where the additional amount of Rs. 25 Lakh should be used for the creation of

public utility building assets primarily for the benefit of tribal people in tribal areas.

(x) In order to undertake rehabilitation works in the areas affected by calamities in a state, Lok Sabha MPs from

the non-affected areas of that state can recommend permissible works to the tune of up to Rs. 10 lakh per

annum in those areas. In the event of calamity of severe nature in any part of the country an MP can

recommend works up to a maximum of Rs. 50 lakh for the affected district.

(xi) If an elected Member of Parliament, finds the need, to contribute MPLADS funds, to a place outside their

State/UT, or outside the constituency within the states or both, the MP can recommend eligible works

under the guidelines up to a maximum of Rs. 10 lakh in a financial year.

(xii) MP can spend a maximum of Rs. 10 lakh per year for giving assistance to physically challenged persons for

purchase of tri-cycles (including motorized tri-cycles), battery operated motorize wheel chair and artificial

limbs.

(xiii) Purchase of books for schools, colleges and public library are allowed subject to some financial restriction.

(xiv) Purchase of computers and Visual Display Units (VDU) for government aided institutions are also allowed.

(xv) Release of 1st instalment equal to 50% of annual entitlement in respect of MPs at the time of constitution of Lok

Sabha and election to the Rajya Sabha is done automatically without waiting for a district authorities.

(xvi) To bring in more financial accountability, Utilization Certificate and Audit Certificate for the previous financial

year are also pre-requisites for the release of the second instalment. From financial year 2012-13, release of first

instalment was made subject to the condition that second instalment of previous year was released for the MP

concerned and also subject to furnishing of provisional Utilization Certificate of previous year covering at least

80 per cent of the expenditure of the 1st instalment of previous year.

(xvii) Funds released by the Government of India are deposited by the District Administration in nationalized banks.

(xviii) 2 per cent of the MPLAD fund which is part of the annual entitlement of the MP has been allowed to

District/State Authorities for their administrative expenses.

(xix) The normal financial and audit procedures prevalent in the states in which the works are executed apply with

regard to the implementation of the works.

(xx) The roles of Central Government, State Government, District Authorities and Implementing Agencies have

been clearly demarcated for implementation of MPLAD Scheme.

CHAPTER-7 | COMMERCE


CHAPTER SEVEN | COMMERCE

THE basic role of the Department of Commerce is creation of an enabling environment and infrastructure for

accelerated growth of exports. Its mandate is regulation, development and promotion of India’s International Trade

and Commerce through formulation of appropriate international commercial policy and implementation of the various

provisions thereof.

The Department formulates, implements and monitors Policy (FTP) which provides the basic framework of policy

followed for promoting exports and trade. The Trade Policy is periodically reviewed to incorporate changes necessary

to take care of emerging economic scenarios both in the domestic and international economy.

India is becoming increasingly integrated with the global economy. India’s total merchandise trade as a percentage of

GDP increased from 29.5 percent in 2004-05 to 44.1 per cent in 2013-14. India’s merchandise exports of GDP

increased from 12.6 per cent in 2004-05 to 18.1 percent in 2013-14.

The year 2013-14 also witnessed a reversal in the trend of trade deficit that had ballooned to 190.3 billion US $ by 2012-

13 from 6 billion US $ by 2012-13 from 6 billion US $ in 2000-01. The deficit fell sharply in 2013-14 by 27.8 percent to

137.5 billion US $ on the back of 8.3 per cent contraction of imports over the previous year and mild growth of 4.1 per

cent of exports.

In an increasingly connected world, no country can remain isolated from the changes occurring in the rest of the world.

The global growth in 2013-14 was marked by persistent uncertainty caused by crisis in Euro area and general

slowdown in global economy. Consequently India also suffered deceleration in growth which was further

compounded by domestic structural constraints and inflationary pressures. India’s GDP growth has come down from

8.6 percent in 2009-10 to 4.7 per cent in 2013-14 as per provisional estimate.

As per the rankings for the year 2013 by WTO in its Press Release, April, 2014, India was the 19th largest exporter (with

a share of 1.7 percent) and 12th largest importer (with a share of 2.5 per cent) of merchandise trade in the world. In

Commercial Services, India is the sixth largest exporter (with a share of 3.3 per cent) and seventh largest importer (with

a share of 2.9 per cent). As per WTO, growth in Global Trade was 2.1 per cent in 2013 against 2.3 percent in 2012.

Global Trade is expected to grow by 4.7 per cent in 2014 and by 5.3 per cent in 2015. However, the growth of 4.7 per

cent in 2014 is still below 20 years (1983-2013) average of 5.3 per cent.

As per IMFs World Economic Outlook (WEO) July, 2014, growth in volume of world trade increased marginally to 3.1

per cent in 2013 over 2.8 per cent in 2012 and is projected to accelerate further to 4 per cent and 5.3 per cent in 2014 and

2015 respectively, Emerging market and developing economies is projected to grow at the rate of 4.6 per cent and 5.2

per cent in 2014 and 2015 while advanced economies are projected to grow at the rate of 1.8 per cent and 2.4 percent in

2014 and 2015.

TRADE SCENARIO : India’s total external trade (exports plus imports including re-export) in the year 1991-92 stood

at Rs. 91,893 crore. Since then, this has witnessed continuous increase with occasional slowdown. During 2012-13, the

value of India’s external trade reached Rs. 4,303,481 crore.

India has trading relations with all the major trading blocks and all the geographical regions of the world. Region-wise

and sub region-wise spread of India’s trade during 2012-13 and 2013-14. (in Rupee terms). During the period 2013-14,

the share of Asia comprising East Asia, region corn ASEAN, West Asia-Gulf Cooperation Council (GCC), Other West

Asia, NE Asia and South Asia accounted for 49.45 per cent of India’s total of Europe in India’s exports stood at 18.57

per cent of which comprises 16.44 per cent. Both North and Latin America stand third together as a region with a share

of 17.23 per cent in India’s total exports. During the same period, in the top destinations USA (12.42 per cent) has been



the most important country of export destination followed by United per cent), China (4.77 per cent), Hong Kong (4.05

per cent), and Singapore (3.94 percent).

TABLE : TOP FIVE COUNTRIES OF EXPORT

(Value of Rs. in Crore)

Rank Country Apr-Mar

2013

Apr – Mar

2014

% Growth % Share

1. USA 1,96,771.28 2,36,686.4 20.29 12.42

2. United Arab

Emirates

1,97,832.08 1,84,778.7 –6.6 9.7

3. China PRP 73,772.71 90,819.34 23.11 4.77

4. Hong Kong 66,898.17 77,240.98 15.46 4.05

5. Singapore 73,995.35 74,968.99 1.32 3.94

TABLE : TOP FIVE COUNTRIES OF IMPORT

(Value of Rs. in Crore)

Rank Country Apr-Mar

2013

Apr – Mar

2014

% Growth % Share

1. China PRP 2,84,384.59 3,09,234.96 8.74 11.39

2. Saudi Arabia 1,84,684.80 2,20,515.49 19.4 8.12

3. United Arab

Emirates

2,12,923.33 1,74,126.66 –18.22 6.41

4. USA 1,37,238.59 1,35,613.46 –1.18 4.99

5. Switzerland 1,74,511.85 1,12,338.18 –35.63 4.14

Zero Duty Export Promotion Capital Goods (EPCG) Scheme : The EPCG scheme allows import of capital goods on

zero duty for preproduction, production and post-production subject to a specific export obligation equivalent to 6

times of duty saved amount to be fulfilled in 6 years reckoned from authorization issue-date. This export obligation is

over and above the average level of exports of same and similar products achieved by the applicant in the preceding

three licensing years.

Widening the Scope of Utilization of Duty Credit Scrip : Duty Credit Scrips issued under Focus Market Scheme,

Focus Product Scheme and Vishesh Krishi Gramin Udyog Yojana (VKGUY) can be used for payment of service tax on

procurement of services within the legal framework of service tax exemption notifications under the Finance Act, 1994.

Holder of the scrip shall be entitled to avail drawback or CENVAT credit of the service tax debited in the scripts as per

Department of Revenue rules.

Incremental Exports Incentivisation Scheme : Government has announced Incremental Export Incentivisation Scheme

on 26th December, 2012 for the exports made during January, 2013 to March, 2013. This scheme is available for exports

made to USA, EU and Asia. It has been agreed to extend this scheme for the year 2013-14. The calculation of the benefit

shall be on annual basis under the extended scheme.



The Government has also agreed to include additional countries under Incremental Exports Incentivisation Scheme.

Fifty three countries of Latin America and Africa have been added with the objective to increase India’s share in these

markets. The present export to each of these markets is less than US$ 100 million.

INDIA’S ENGAGEMENT IN FREE TRADE AGREEMENTS (FTAS) : India has always stood for an open, equitable,

predictable, non-discriminatory and rule based international trading system. FTAs, in India’s point of view, are the

‘building blocks’ towards the overall objective of trade liberalization and should complement the multilateral trading

system.

FREE TRADE AGREEMENT (FTA) TERMINOLOGY

Preferential Trading Agreement (PTA) Tariff liberalization on a limited number of lines e.g. India-

Mercosur PTA.

Free Trade Agreement (PTA) Elimination of Tariffs on items covering substantial bilateral

trade between the partner countries e.g. India - Sri Lanka

FTA

Comprehensive Economic

Cooperation Agreement (CECA)

Comprehensive Economic

Partnership Agreement (CEPA)

CECA or CEPA or BTIA terms are used to describe

Agreements which consist of an integrated package of

Agreement on Goods, Services, Investment, Mutual

Recognition, Intellectual Property etc. e.g. India-Korea

CEPA.

Broad based Trade and Investment Agreement

(BTIA)

ACRONYMS - REGIONAL GROUPINGS AND ITS MEMBERS

S.No. Acronym Grouping Number of

Members

Countries

Member Countries Name of

Member Countries

1. APTA Asia Pacific Trade Agreement 5 Bangladesh, China, India,

Republic of Korea, Sri Lanka.

2. ASEAN Association of Southeast Asian

Nations

10 Brunei, Cambodia, Indonesia,

Laos, Malaysia, Myanmar,

Philippines, Singapore,

Thailand and Vietnam.

3. BIMSTEC Bay of Bengal Initiative on Multi-

Sectoral Trade and Economic

Cooperation

7 Bangladesh, India,

Thailand, Bhutan

Myanmar, Sri Lanka, and

Nepal.

4. EFTA European Free

Trade Association

4 Iceland, Norway,

Liechtenstein and

Switzerland.

5. GCC Gulf Cooperation Council 6 Saudi Arabia, Oman,

Kuwait, Qatar and Yemen.



6. IBSA India South Brazil and Africa 3 India, Brazil and South

Africa.

7. MERC

OSUR

Southern Common Market

(Spanish: Mercado Comun del

Sur-)

4 Argentina, Brazil, Paraguay

and Uruguay.

8. SACU Southern African Customs Union 5 South Africa, Botswana,

Lesotho, Swaziland and

Namibia.

9. SAFTA South Asia Free Trade

Agreement

7 India, Pakistan, Nepal, Sri

Lanka, Bangladesh, Bhutan

and the Maldives

10. IOR-ARC Indian Ocean Rim Association for

Regional Cooperation

20 plus 7

Dialogue

Partners

Australia, India, Kenya,

Mauritius, Oman, Singapore,

South Africa, Malaysia,

Madagascar, Mozambique,

Indonesia, Sri Lanka,

Tanzania, Yemen,

Bangladesh, Iran, Thailand,

United Arab Emirates,

Seychelles and the Union of

Comcros

Dialogue Partners

China, Egypt, France, Jap

an, United Kingdom and the

United States of America

11. RCEP 10 ASEAN Members States

(Brunei, Cambodia Indonesia,

Laos, Malaysia, Philippines,

Singapore, Thailand and

Vietnam)+ its 6 FTA Partner

countries (Australia, China,

India, Japan, South Korea and

New Zealand

Doha Round of Trade Negotiations in the World Trade Organisation

The 2001 Ministerial Conference in Doha had mandated a comprehensive development agenda for multilateral trade

negotiations. This Round of trade negotiations is still underway. In the backdrop of the global economic downturn of

2008 and the inability of the membership to reach consensus on the full Doha Development Agenda, it was decided at

the Eighth Ministerial Conference in 2011 to focus on areas where convergence was possible. Accordingly, after

deliberations in the WTO in 2013, it was agreed that WTO members would strive for an agreement on Trade

Facilitation, a few areas in agriculture, development issues and issues of relevance for LDCs.



WORLD TRADE ORGANIZATION (WTO)

The WTO is the principal international institution for the management of international trade. It was created at the

Uruguay Round of trade talks in 1994, when it was agreed to transform the General Agreement on Tariffs and

Trade (GATT) into a permanent institution. The Uruguay Round was a round of GATT negotiations started in

Uruguay in 1986 and designed to promote free trade. It was the origin of the WTO and a range of multilateral

agreements. It currently has 146 Member States. The WTO is responsible for:

• Providing a forum for trade negotiations

• Handling trade disputes

• Monitoring national trade policies.

The WTO also administers WTO agreements, provides technical assistance to developing countries and cooperates

with other international bodies on trade issues.

The WTO is the only organization that can enforce its own rules - which makes it an extremely powerful

organization. The WTO dispute settlement system is used when countries differ in their interpretation of the WTO

agreement. If two or more states have a dispute over, for example, a health-related trade measure, they have the

right to invoke the WTO dispute settlement process. The WTO cannot itself prosecute a member: it is up to the

countries involved to bring the dispute to the WTO. Only the complainant can argue the case and only if it relates

to WTO agreements or commitments. What makes the WTO unique is that sanctions can be imposed by the WTO

against countries that lose a case in this procedure. For example, a complainant may be allowed to impose import

tariffs on products from the offending country to a certain value equal to the compensation decided by the WTO.

The main pillars of the WTO are the multilateral trade agreements, including the General Agreement on Trade in

Services (GATS) and the Agreement on Trade-Related Aspects of Intellectual Property rights (TRIPS). These

agreements do contain some provisions for the protection of public health and safety but they remain controversial.

In theory, all members have an equal voice in the consensus decision-making process. However, in practice the

wealthier nations dominate. With the acceleration of free trade, many believe it is imperative that the WTO serves

to accelerate world economic activity. However, others are concerned that this should not be done without

reference to the social and cultural consequences, particularly in terms of the marginalization of vulnerable groups.

NINTH MINISTERIAL MEETING OF THE WTO : The Ninth Ministerial Conference of the WTO took place in 3 to

7th December, 2013. Ministers issued a Declaration and ten ministerial decisions were taken on various issues

including Trade Facilitation, issues relating to agricultural trade rules and others relating to development, Least

Developed Countries (LDCs). Amongst these Decisions, two ministerial particular significance for India - the

ministerial decision for trade facilitation and the ministerial decision on Public Stockholding for Food Security

Purposes.

Trade Facilitation was brought into the agenda mainly by the developed countries. The issue of the rules relating to

public stockholding for food security purposes was brought into the agenda of the Ninth Ministerial Conference

through India’s efforts.

TRADE FACILITATION : With the lowering of tariffs and the removal of quantitative restrictions, the focus in

international trade has shifted to the simplification of trade procedures in general and customs procedures in

particular. Negotiations for a new multilateral Agreement on Trade Facilitation began in Geneva as part of the Doha

Round of trade negotiations which was launched in 2001.

The Trade Facilitation Agreement, which was also endorsed by the India at the Ninth Ministerial Conference, is

basically aimed at greater transparency and simplification of customs procedures, use of electronic payments and risk

management techniques and faster clearances at ports.



TRADE FACILITATION AGREEMENT

In December 2013, WTO members concluded negotiations on a Trade Facilitation Agreement at the Bali Ministerial Conference, as part of a wider “Bali Package”. Since then, WTO members have undertaken a legal review of the text. The resulting final text is available here. In line with the decision adopted in Bali, WTO members adopted on 27 November 2014 a Protocol of Amendment to insert the new Agreement into Annex 1A of the WTO Agreement. The Trade Facilitation Agreement will enter into force once two-thirds of members have completed their domestic ratification process.

The Trade Facilitation Agreement contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.

PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES : Public stockholding programmes for food security

is allowed as per the WTO Agreement on Agriculture. However, if food for such programmes is acquired at

administered prices and not at market prices, then there deemed to be support to farmers. As per WTO rules

negotiated in the Uruguay Round has to be kept within a limit of 10 per cent of the value of production of the product

in question. This cap can constrain procurement and food aid programmes in developing countries. The draft

agriculture negotiating text of December, 2008 seeks to change this. India, as part of a coalition of developing countries

known as the ‘G-23’, proposal an amendment of the WTO’s Agreement on Agriculture to change these rules.

DEVELOPMENTS FOLLOWING THE MINISTERIAL CONFERENCE : While there was a focus on finalising the

work on implementation of the Trade Facilitation Agreement, no such commitment was shown in implementation of

other ministerial decisions taken in Bali. There was no progress on the ministerial decision on public stockholding for

food security which is very important for India and other developing countries. Some of the members blocked

discussions on the issue seeking information not relevant to the implementation of the issue.

The market price support (or Minimum Support Price in Indias case) and procurement/ stockholding of food grains at

MSP is a genuine requirement for India to ensure food and livelihood security of its largely poor population. India

cannot move away from the Market Price Support like developed countries with deep pockets.

It is important for developing countries to be able to guarantee some minimum returns to their poor farmers so that

they are able to produce enough for themselves and for domestic food security. If the Doha Round had been

concluded, we would have achieved substantial reductions and disciplines on agriculture support and export

subsidies by the developed world, who are allowed such subsides due to unbalanced Uruguay Round Agreements.

In view of very little commitment shown by members from the developed countries in implementing the Bali

Ministerial Decisions, except the one on Trade Facilitation, the apprehension was that none of the developed countries

would come back to the negotiating table to discuss this issue or any of the other nonbinding outcomes of the Bali

Ministerial Conference. The result would be that the developed countries would have achieved their desired

Agreement on Trade Facilitation. Developing countries would have lost the bargaining space for an outcome on food

security. Moreover, any chance to conclude the Doha Round will be lost. The developed countries will then try to bring

new issues of their interest into the WTO, none of which would be in the interest of the developing countries.

At a meeting of the Preparatory Committee on 2nd July, 2014, India stated categorically that till “we have an assurance

and visible outcomes which convince developing countries that members will engage in negotiations with

commitment to find a permanent solution on public stockholding and all other Bali deliverables, especially those for

the LDCs, India will find it difficult to join the consensus on the Protocol of Amendment.”



Despite criticism India reiterated its commitment to implementation of all the Bali Decisions including Trade

Facilitation in various meetings in the WTO and outside it bilaterally and in various for as like the G20 and BRICS

Trade Ministers Meetings in July, 2014; India’s concerns related to the uneven progress implementation of the Bali

Ministerial Decisions, in favour of only Trade Facilitation. India explained its sensitivities on the Food Security issue

and sought equal level of commitment and progress in working on the issue. On 25th July, 2014, India made a

statement in the WTO General Council conveying that the adoption of the Trade Facilitation (TF) protocol must be

postponed till a permanent solution on public stockholding for food security is found. India also offered suggestions

on the procedure to be followed in order to ensure time bound delivery of an outcome on public stockholding for food

security is found. India also offered suggestions on the procedure to be followed in order to ensure time bound

delivery of an outcome on public stockholding for food security. India also made a case for adopting a similar

approach on all the elements of the Bali package including the LDC issues.

NEW EXPANDED DUTY FREE TARIFF PREFERENCE (DFTP) SCHEME FOR LEAST DEVELOPED COUNTRIES

(LDCS) : One of the elements of the Hong-Kong Ministerial Declaration of December, 2005 has been to extend Duty

Free Quota Free (DFQF) access to the Least Developed Countries (LDCs).

In line with its commitments, India became the first developing country to extend this facility to Least Developed

Countries (LDCs). India announced the Duty Free Tariff Preference (DFTP) Scheme for LDCs in the year 2008. The

Scheme was announced to give support to the LDCs in their trade initiatives and upon full implementation, granted

duty free access on about 85% of India’s total tariff lines and preferential access (Positive List) on about 9% of tariff

lines. Only 6% tariff lines were under the Exclusion List.

ROLE OF STANDARDS IN INTERNATIONAL TRADE : In today’s market, both domestic as well as international,

Standards have assumed tremendous significance. As globally tariffs are going down, the complexities connected with

the international trade are also increasing. In order to ensure supply of quality, safe and environment-friendly

products to our consumers, it is important that our industrial enterprises and business operators also adopt the

concept of standards and technical regulations in their respective oganisations.

The WTO agreement on ‘Technical Barriers to Trade’ and the agreement on the Application of Sanitary and

Phytosanitary Measure are the mother agreements on standards and conformity assessment at the international level.

These Agreements try to balance the competing demands for domestic regulatory autonomy and the global

harmonization of products standards in a manner which is trade friendly. Thus, these agreements attempt to prevent

standards from becoming a protectionist device; however, in practice we notice the trend otherwise. Therefore, it is

extremely important; for India to create a conducive atmosphere in which industry is encouraged, incentivized and

facilitated to follow a standard driven culture. This would not only add value to our products but would also make our

products competitive internationally. As a consequence, industry would also continuously strive for technology

upgradation and more value addition.

INDIA-COMESA JOINT STUDY GROUP (JSG) : Common Market for East and Southern Africa (COMESA) is

Africa’s largest economic community comprising of 19 member states namely Burundi, Comoros, Democratic Congo,

Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Swaziland,

Sudan, Uganda, Zambia and Zimbabwe.

The 1st meeting of the India-COMESA JSG was held in Lusaka from 30-31st July, 2012.

A Joint Study Group (JSG) has been set up to examine the feasibility of a FTA between India and COMESA.

CHAPTER-8 | COMMUNICATIONS AND INFORMATION

TECHNOLOGY


CHAPTER EIGHT | COMMUNICATIONS AND INFORMATION

TECHNOLOGY

COMMUNICATIONS and Information Technology in the country is handled by the Ministry of Communications and

Information Technology. The Ministry contains three departments namely:

• Department of Posts

• Department of Telecommunications, and

• Department of Information Technology.

The salient features of these departments, main activities taken by them in this sector are given here.

POSTAL NETWORK : At the time of Independence there were 23,344 post offices throughout the country. Of these

19,184 post offices were in the rural areas and 4,160 in the urban areas. Today, India has the largest postal network in

the world with 154,856 post offices, of which 139,164 (89.78%) are in rural areas and 15,692 (10.22%) are in urban areas.

Thus, the network has registered nearly seven-fold growth since Independence, the focus of this expansion having

been the rural area.

INITIATIVES IN SERVICE QUALITY IMPROVEMENT

PROJECT ARROW : ‘Project Arrow, an initiative to transform Department of Posts into a vibrant and responsive

organization and to make a visible and positive difference to quality and efficiency of service to the customers, was

conceived in April 2008.

In specific terms, Project Arrow entails comprehensive improvement of the ‘Core Operations’ of the post offices as well

as modernized ambience under ‘Look and Feel’ silo of the project. Enhancing the quality of services in ‘core ‘areas’

envisages focus on mail delivery, remittances, savings bank and office service levels through continuous monitoring of

key performance indicators, identifying problem areas and take remedial action on a real-time basis, including making

systemic changes to improve service quality. This has helped the Department to emerge as a one-stop shop for retail

products and offer a single window facility for small savings, money remittances and other financial products and

services including social initiatives such as the National Rural Employment Guarantee Scheme and the National Old

Age Pension Scheme. The monitoring of ‘core operations’ is being undertaken in more than 21,600 post offices. ‘Look

and Feel’ of the post offices have been improved in 2,615 post offices.

NEW AND VALUE ADDED SERVICES

SPEED POST : Speed Post service was introduced in 1986 to provide fast and time-bound delivery service between

seven major cities in the country. Since then the network has been expanded across all major cities in the country. This

service offers time-bound and assured delivery of letters, documents and parcels weighing upto 35 kg. across the

country. Delivery norms are fixed taking into account the fastest available mode of transport between the stations.

Speed Post is managed as a business service with commercial approach in its operations and management.

Insurance facility is also provided as an add-on service for speed post articles. Articles can be insured for upto 1 lakh.

In the unlikely event of delay in delivery of domestic speed post articles beyond the norms determined by the

Department of Posts from time to time, the speed post fee paid by the customer is refunded as compensation. In the

event of loss of domestic speed post articles or loss of its contents or damage to the contents, double the amount of

speed post charges paid by the customer or Rs. 1,000/-, whichever is less refunded as compensation.

EXPRESS PARCEL : Express Parcel is a premium parcel service available for retail as well as bulk customers. It offers

time-bound, safe and secure home delivery of parcels. To have minimal transit time these parcels are given airlift


TECHNOLOGY


wherever needed. Minimum chargeable weight of Express Parcel is 0.5 kg, whereas maximum chargeable weight for

retail customers is 20 kg and for contractual customers it is 35 kg.

WORLD NET EXPRESS : World Net Express is an international express service jointly offered by Department of Posts

and Deutsche Post DHL connecting major cities of India to more than 220 countries and territories globally. World Net

Express brings with it the strengths of two global giants in the postal sector. It offers door-to-door International Air

Express service for documents and merchandise both. This is the most premium offering of Department of Posts

having a transit time of 2-4 days from major cities in India.

PHILATELY : Philately is the hobby of collecting stamps as well as the study of postal history and other related items.

It is a mode of commemorating, celebrating and promoting national heritage, culture, events and lives / achievements

of eminent personalities. It plays a great role as an ambassador, a brand image of the postal administration concerned

and a statement of sovereignty of a nation.

After Independence, the medium of postage stamps was initially used for highlighting the country’s achievements in

science and technology as well as its socio-economic development by depicting themes like the Five Year Plans, steel

plants, dams and irrigation projects, etc.

In keeping with their dual character as a ‘Token of Postage’ and as ‘Cultural Ambassador’, there are two categories of

stamps viz. Definitive and Commemorative Postage Stamps. The definitive stamps are meant for day-today use as a

token of payment of postage on mail articles. These incorporate less complicated design inputs, entailing minimum

expenditure in their manufacture, and are in large quantities, over longer periods. The commemorative postage

stamps, on the other hand, are designed and printed with greater aesthetic inputs.

FINANCIAL SERVICES

POST OFFICE SAVINGS BANK : The Department of Posts operates Small Savings on behalf of Ministry of Finance,

which frames and modifies rules relating to these schemes and pays remuneration to the Department of Posts for

services rendered. Post Office Savings Bank (POSB) has a customer base of more than 30.8 crore account holders on 31st

March, 2014. Savings Bank facilities are provided through a network of more than Rs. 1.54 lakh post offices across the

country. The Post Office Savings Bank operates Savings Account, Recurring Deposit (RD), Time Deposit (TD), monthly

Income Scheme (MIS), Public Provident Fund (PPF), National Savings Certificate (NSC) and Senior Citizen Savings

Scheme (SCSS). The outstanding balance under all National Savings Schemes and Saving Certificates in post office is

over Rs. 6,19,835 crore as on 31st March, 2014.

NATIONAL PENSION SCHEME : National Pension Scheme (NPS), earlier known as New Pension System, for

common citizens was introduced by the Government in 2009. Department of Posts is a point of presence for the

National Pension System for common citizens. Subscribers (any Indian citizen) in the age group of 18 to 55 can join

NPS and contribute till age of 60. The subscribers’ contribution is invested as per preference of the subscriber by the

Pension Fund Regulator PFRDA. Under this scheme, any subscriber who intends to open a pension account is

provided the facility at all Head Post Offices in the country.

Postal Life Insurance (PLI) was introduced in 1884 with the express approval of Secretary of State (for India) to Her

Majesty the Queen Empress of India.

Rural Postal Life Insurance (RPLI) was introduced as a result of the recommendations of the Official Committee for

Reforms in the Insurance Sector (Malhotra Committee). The Committee had observed in 1993 that only 22 percent cent

of the insurable population in this country had been insured and that life insurance funds accounted for only 10 per

cent of gross household saving.


TECHNOLOGY


PLI offers 6 (six) types of plans:

• Whole Life Assurance (SURAKSHA)

• Anticipated Endowment Assurance (SUMANGAL)

• Convertible Whole Life Assurance (SUVIDHA)

• Endowment Assurance (SANTOSH)

• Joint Life Assurance (YUGAL SURAKSHA)

• Children Policy (BAL Jiwan BIMA)

RPLI offers 6 (Six) types of plans:

• Endowment Assurance (GRAMA SANTOSH)

• 10 years RPLI (GRAM PRIYA)

• Children Policy (BAL JIWAN BIMA)

• Whole Life Assurance (GRAMA SURAKSHA)

• Convertible Whole Life Assurance (GRAMA SUVIDHA)

• Anticipated Endowment Assurance (GRAMA SUMANGAL)

RAFI AHMED KIDWAI NATIONAL POSTAL ACADEMY (RAKNPA), GHAZIABAD : Rafi Ahmed Kidwai

National Postal Academy (RAKNPA) is the apex training institute of the Department of Posts for meeting the training

needs of its higher managerial cadres and is one of the Central Training Institutions recognized by Department of

Personnel and Training (DoPT). The main objective of the Academy is to impart induction and in-service training to

the officers of Indian Postal Service, Postal Service Group ‘B’ and all Accounts stream officers working in the

Department.

NATIONAL E-GOVERNANCE PLAN (NEGP) : The National e-Governance Plan (NeGP), the flagship plan scheme

of the Department is a multi-stakeholder programme which primarily focuses on making critical public services

available and promoting rural entrepreneurship. Out of the 31 Mission Mode Projects (MMPs) under the NeGP

implemented by various Ministries and Departments, 27 have been approved by Government of India.

e-Bharat: The Government of India received a loan from the World Bank towards programme management and

financial support for the National-Governance Plan (NeGP) for an amount of US$ 150 million (about 700 crore). The

project is envisaged to support NeGPs countrywide plans of increasing the availability of online services for citizens in

their locality to improve the quality of basic governance in areas of concern to the common man. Detailed guidelines

for formulation of project proposals under the e-Bharat scheme have been issued to all the States/UTs. 23 proposals

have been approved at a total cost of 317.35 crore during the last one year.

MeghRaj: To harness the benefits of cloud technology, DeitY has initiated a project named as ‘MeghRaj’ for creating a

Government of India cloud (GI Cloud) computing environment at the national level. This will act as a common

repository of cloud-based infrastructure resources and applications available on demand. The GI Cloud is envisaged to

provide the following outcomes: Optional utilisation of ICT infrastructure; Speedy development and deployment of e-

Gov applications; Quick replication of successful applications; and e-Gov. APP Store hosting certified applications.

CYBER APPELLATE TRIBUNAL (CAT) : The first and the only Cyber Court in the country has been established by

the Central Government in accordance with the provisions contained under section 48(1) of the Information

Technology Act, 2000. The court was initially known as the Cyber Regulations Appellate Tribunal (CRAT). The

Tribunal after the amendment of the IT Act in the year 2009 is known as the Cyber Appellate Tribunal (CAT).

Provision has been made in the amended Act for the Tribunal to comprise a Chairperson and many other members, as

the Central Government may notify/appoint.

NATIONAL CYBER SECURITY POLICY : The National Cyber Security Policy was released in July, 2013 for public

use and implementation by all relevant stakeholders. The policy is intended to cater for a broad spectrum of ICT users

and providers including Government and non-Government entities. Besides this, CERT-In, DIT in coordination with


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MHA, NIC and other stakeholders prepared and circulated computer security guidelines and procedures for

implementation across all Central Government Ministries/Departments.

SOCIETY FOR APPLIED MICROWAVE ELECTRONICS ENGINEERING & RESEARCH (SAMEER) : Society for

Applied Microwave Electronics Engineering & Research (SAMEER) is an autonomous R & D institute under the

Department of Electronics and Information Technology (DeitY), Ministry of Communications and Information

Technology (MC & IT), Govt. of India. The organization was set up in 1984 with the goal of becoming a premier

research institute in the field of RF and microwaves technologies. SAMEER as an R&D institute is fully committed to

the growth of technology development in the country through its President efforts in pursuing quality research and

product development.

C-DAC : Centre for Development of Advanced Computing (C-DAC) is the premier R&D organization of the

Department of Electronics and Information Technology (DeitY), Ministry of Communications & Information

Technology (MCIT) for carrying out R&D in IT, Electronics and associated areas.

C-DAC’s vision is to emerge as the premier R&D Institution for the design, development and deployment of world

class electronic and IT solutions for economic and human advancement.

PARAMYUVA-II : Continuing its contribution to overcome the language barrier in computing and IT, C-DAC

developed and enhanced several multilingual tools, technologies and products during this year. The consortia projects

enabled stronger collaboration among various technology players of the country. These included the Cross-Lingual

Information Access (CLIA) consortia, Indian language Text-to-Speech Consortia, English to Indian Language Machine

Translation (EILMT) consortia, and a consortia for Speech-to-Speech Machine Assisted Translation Dialogue System.

Bharat Operating System Solution : Enterprise-wide self-managed network solution - EDGE, a dynamic firewall

solution - Chakra, a White listing solution - AppSamvid, a URL analyzer are examples of a few security solutions

developed during the year. Several solutions for authentication were also developed/enhanced. These include a

fingerprint identification system, iris recognition and identity solution, face recognition system, and online signature

verification system.

EDUCATION & RESEARCH NETWORK (ERNET) INDIA : Education & Research Network (ERNET), India is an

autonomous scientific society under the administrative control of the Department of Information Technology. ERNET

India has been serving institutions in various sectors namely, health, agriculture, higher education, school and

technology and thus, understands the needs of these knowledge institutions. ERNET India is helping to create a truly

global research community where advanced resources and new learning can be effectively shared by connecting the

research network in Europe with ERNET.

TELE-DENSITY : Tele-density which denotes the number of telephones per 100 population, is an indicator of telecom

penetration in the country. Tele-density in the country, which was 73.32% as on 1st April, 2013, increased to 75.23 per

cent at the end of March, 2014. The rural tele-density increased from 41.05 per cent to 44.01per cent during this period.

Urban tele-density, however, registered a decline from 146.64 per cent to 145.46 per cent during this period.

PUBLIC SECTOR UNDERTAKINGS (PSUS) : DoT has the following PSUs under its administrative control:

i) Mahanagar Telephone Nigam Limited (MTNL)

ii) Bharat Sanchar Nigam Limited (BSNL)

iii) ITI Limited

iv) Telecommunications Consultants India Limited (TCIL)

v) Bharat Broadband Network Limited (BBNL)

CHAPTER-9 | DEFENCE


CHAPTER NINE| DEFENCE

INDIA’S landmass covers an area of 3.3 million square kilometres and is strategically located vis-à-vis both

continental Asia and the Indian Ocean Region. Land borders extending more than 15,500 kilometres and a coastline

totalling over 7500 kilometers make India a continental or maritime neighbour of 11 countries in Asia. India’s location

at the base of continental Asia and at the top of the Indian Ocean provides it a vantage point with respect to both,

Central Asia and the Indian Ocean region. The island territories of the Andaman and Nicobar Islands, located 1300

kilometres away from

the mainland in the

Bay of Bengal,

provide India with a

strategic presence at

the entrance to the

Strait of Malacca. The

Lakshadweep and

Minicoy Islands,

located about 450

kilometres away from

the mainland in the

Arabian Sea, sit

astride the sea lanes

of communication

running eastward

from the Persian Gulf

and the Red Sea. The

island territories

along with a long

coastline extend

India’s territorial

waters to more than

160,000 square kilometers and the Exclusive Economic Zone to more than two million square kilometers, India is, thus

a maritime as well as a continental entity.

India’s size, strategic location, trade links and exclusive economic zone (EEZ) links its security environment directly

with the extended neighbourhood, particularly with neighbouring countries and the regions of West Asia, Central

Asia, South East Asia, East Asia and the Indian Ocean. A stable and peaceful regional and international environment is

a critical requirement to create a conducive climate for our overall national development.

The activities of terrorist groups, the menace of drug trafficking, the spread of small arms, the proliferation of weapons

of mass destruction and the challenges to maritime security in the immediate and extended neighbourhood are some

of the critical factors that affect India’s security environment. To deal with these conventional and non-conventional

security challenges, India continues to pursue a robust defence strategy that involves both, the strengthening of its own

capabilities as well as engagement in regional and global efforts to promote peace and stability.

The Global Security Environment: Since the end of the Cold War, the global security environment has seen major

changes. On the one hand, the world has witnessed a spurt of globalisation and deepening economic interdependence,

which has ushered in a period of peaceful development and enhanced the growth and influence of countries like India,

China, Brazil and South Africa. On the other, the world continues to be adversely affected by conflict and violence. The

global balance of power has witnessed new adjustments and dynamics, with increased multi-polarity generating new

strategic uncertainties. As non-state actors become more powerful, emerging risks require greater attention. The

CHAPTER-9 | DEFENCE


security environment has become more complex, with growing threats from terrorism, piracy etc. Technology

advances in telecommunications and other areas have provided potent force multipliers to boost the capabilities and

impact of terrorist activities.

International security and the prospects for peace and stability in various regions are being endangered by the

continuing proliferation of nuclear weapons and ballistic missiles. The challenge posed by the proliferation of

Weapons of Mass Destruction has been made more complicated by the threat of nuclear terrorism. The complex and

dynamic interplay of economic, diplomatic and military factors in the Asia Pacific continues to impact the overall

security assessment for the region as a whole. The security situation in the Asia-Pacific region is marked by maritime

disputes, new military postures and power rivalries.

1. The developments in the Asia Pacific underline the need for continued efforts to build trust and confidence in

the region. India has supported efforts to establish an open and inclusive security architecture for the region.

India’s policy is to encourage and participate in cooperative approaches which would enable all countries in

the region to counter traditional and non-traditional security challenges and to ensure that the critical sea lanes

in the region are kept open, secure and tree for navigation and trade in accordance with international law.

India’s continuing engagement with ASEAN led fora like the ADMM Plus, ASEAN Regional Forum, etc are

a part of our progressive and multifaceted bilateral and multilateral partnerships with the ASEAN community.

2. The Central Asian region is important to India’s security interests due to its geo-strategic significance and for

economic reasons. India has important stakes in the region which range from energy security, countering of

disruptive influences and furtherance of strategic interests. lndias approach towards the region therefore

focuses on developing strong politico-economic and security partnerships with the Central Asian countries.

3. The situation in West Asia continues to be fluid, even two years after the ‘Arab Spring’ protests started in

several countries, almost simultaneously. Continuing unrest and uncertainty in West Asia has a major impact

on India’s diverse interests in the region, which include the safety and security of over six million Indians who

live and work in the region, as well as the uninterrupted flow of energy imports from the region. India has

long standing, warm and wide-ranging relations with all countries in the region and continues to engage

with them on the basis of mutuality of respect and interests. India continues to pursue defence and security

engagements with various countries in the region, including Oman, Qatar and the UAE, on the basis of

common concerns including terrorism and the security of the sea lanes of communication in the Western

Indian Ocean and the Persian Gulf. India is also pursuing a defence engagement with Saudi Arabia.

4. India and Iran share historical and cultural ties which are the underpinnings of an important bilateral

economic relationship. India has been supportive of Iran’s right to peaceful uses of nuclear energy. India

continues to support a peaceful resolution of the Iran nuclear issue and Iran’s adherence to its international

commitments.

5. India has traditional historic ties with African countries and seeks to enhance its engagement including

through the India-Africa Forum, which seeks to promote bilateral socio-economic and security cooperation

with African countries.

The Regional Security Environment: A secure, stable, peaceful and prosperous neighbourhood is central to India’s

economic prosperity and security.

1. India desires peaceful, friendly and cooperative relations with Pakistan and is committed to resolving all

outstanding issues with Pakistan through bilateral dialogue in an atmosphere free from terrorism and violence.

Continued terrorism emanating from Pakistan and areas under its control remains a core concern. India’s view

is that Pakistan must maintain the sanctity on the Line of Control (LoC).

2. The situation in the Afghanistan is critical to India, particularly in the context of the anticipated 2014

drawdown of international security forces in the country. The Strategic Partnership Agreement between India

and Afghanistan signals the commitment of both countries to build on the bilateral relationship in all spheres,

including defence and security cooperation aimed at enhancing mutual capability in the fight against terrorism

and other security challenges. India remains committed to support the Afghan Government in building the

capacity of the Afghan National Security Forces to assume full charge for the security of the country.

CHAPTER-9 | DEFENCE


3. Although the unresolved boundary dispute between India and China has been a factor in India’s security

calculus, India has a strategic and cooperative partnership with China, in which the effort has been to work on

areas of mutual interest which would enable both countries to pursue common goals of growth and

development. India’s policy has been to engage with China on the principles of mutual trust and respect for each

other’s interests and concerns. Both sides have acknowledged that peace and tranquillity on the India-China

boundary is important guarantor for the development and growth of bilateral relations.

4. India has shares a unique relationship of friendship and cooperation with Nepal. The bilateral ties have been

characterized by open borders and deep-rooted people-to-people contacts of kinship and culture and the

security and economic interests of both countries are intertwined.

5. Cooperative relations between India and Bangladesh continued to be a positive factor in the regional security

scenario. Both countries share a convergence of views on security matters and on managing border security

concerns. Bilateral efforts are been pursued for the settlement of border issues. Both sides have on various

occasions reiterated their commitment to combat terrorism on all its forms and manifestations.

6. India-Myanmar relations are reinforced by historical, cultural, ethnic and religious ties. India continues to

engage with Myanmar on various fronts, including trade and infrastructure and cooperation in security matters.

Both countries are engaged in efforts to maintain stability on the borders through a number of measures. The

Myanmar leadership has conveyed its assurances that it will not allow its territory to be used for activities

inimical to India.

7. India-Sri Lanka relations remain close, cooperative and constructive. Maritime security challenges and the

maintenance of peace and stability in the common Indian Ocean region are issues which underpin the

convergences in the strategic interests of both countries. India continues to remain engaged with Sri Lanka to

achieve a lasting political settlement that meets the aspiration of the Tamil community for equality, justice, peace

and dignity

8. India and Bhutan have a mutually productive and beneficial bilateral relationship, based on mutual trust and

CHAPTER-9 | DEFENCE


understanding. India has had extensive cooperation with Bhutan in areas such as power, transport,

communications infrastructure, education, IT, industry, medicine and agriculture. India remains committed to

assist the Royal Government of Bhutan in its socio-economic development.

9. As a maritime neighbour, Maldives occupies an important position in India’s security construct and this is

reflected in strong bilateral cooperation in defence and security matters, which is based on the mutual interests

of both countries.

10. The Indian Ocean, spread over an area of 68.56 million square kilometres, is central to India’s maritime interests

and concerns. It accounts for transportation of the largest tonnage of goods in the world, with almost 100,000

ships transiting its expanse annually. Two-thirds of the world’s oil shipments, one-third of bulk cargo traffic

and half the world’s container shipments are transported in sea lanes of the Indian Ocean. India’s economic

development is crucially dependent on the sea because of the criticality of sea borne trade in an increasingly

inter-linked world as well as because of the potential of vast economic resources of the oceans. India sits astride

major commercial routes and energy lifelines in the Indian Ocean, namely, the Malacca Straits, Six and Ten

degree channel and the Arabian Gulf. The security of shipping along the sea lanes of communications in the

Indian Ocean Region (IOR) is, therefore, of vital interest.

India’s maritime interests involve the safeguarding of our coastline and island territories and also of our

interests in the FEZ, as well as in maintaining open and secure Sea Lines of Communication. The incidence of

piracy, gun running and terrorism in the IOR continue to remain issues of concern. The threat of piracy in the

Western Indian Ocean and the activities of Somalian pirates that pose a threat to the safety of the sea lanes are

serious concerns. The Indian Navy is working is coordination with the Coast Guard and other Central and State

agencies to deal with challenges of threats from the sea.

The principal task of the Ministry is to frame policy directions on defence and security related matters and

communicate them for implementation to the Services Headquarters, Inter-Service Organisations, Production

Establishments and Research & Development Organisations.

The principal functions of the Departments are as follows: The Department deals with the Integrated Defence Staff

(IDS) and three Services and various Inter- Service Organisations. It is also responsible for the Defence Budget,

establishment matters, defence policy, matters relating to Parliament, defence co-operation with foreign countries

and co-ordination of all defence related activities. The Department of Defence Production is headed by a Secretary

and deals with matters pertaining to defence production, indigenisation of imported stores, equipment and spares,

planning and control of departmental production units of the Ordnance Factory Board and Defence Public Sector

Undertakings (DPSUs). Defence Research and Development is headed by a Secretary, who is the Scientific Adviser to

the Defence Minister.

HEADQUARTERS INTEGRATED DEFENCE STAFF (HQ IDS): HQ IDS was raised on October 1, 2001 based on the

recommendations of Group of Ministers to review “Higher Defence Management”.

ARMY: Large parts of India’s land borders with two of its neighbours remain unresolved, leading to the need for

effective border management and being prepared to respond to all types of challenges to India’s territorial integrity.

India also faces the threat of sub conventional conflicts in the form of proxy war and insurgency. In addition, Army has

also been at the core of humanitarian and disaster relief operations, both at home and abroad. It has always been the

first responder in times of crisis be it tsunami, earthquakes or flood relief. Ecologically aware, it has also undertaken

afforestation initiatives and transformed large swathes of land, which were ravaged by natural or manmade disasters.

At the international level too, the Army has been one of the largest troop’s contributors to UN missions.

Indian Army is a multi lingual, multi religious organisation and an epitome of ‘unity in diversity” has been at the

forefront for nation building through development initiatives.

CHAPTER-9 | DEFENCE


The modernisation of infantry aims of enhancing its all round capability and transforming the infantryman into a

technically qualified, lethal, self contained soldier under the FINSAS (Future Infantry Soldier As a System) project.

Army Aviation is a key growth area and for the first time combat helicopters and utility lift helicopters for operations

will become an integral part of the Army. In addition, Army’s defence cooperation with friendly’ foreign countries

involving joint exercises, expert exchanges and army to army staff talks contributes to strengthening of relationships

and partnership with these countries. Participants from a number of foreign countries also train at Indian Army’s

world class training institutions.

NAVY: The Indian Navy (IN) is the prime enabler and guarantor of the country’s maritime sovereignty and myriad

use-of-sea activities. This is discharged by the Indian Navy through its four roles — military, diplomatic, constabulary

and benign. The objective of the Navy’s military role is deterrence/ dissuasion against any intervention or act which is

against our national interests and the ability to inflict a crushing defeat on the adversary in the event of hostilities. A

major objective of the Navy’s Constabulary role is to ensure coastal security and implement anti-piracy measures.

India is a maritime nation and our economy is critically dependent on the seas for conduct of trade. More than 90 per

cent of our trade by volume, and 77 per cent by value, is transported over the seas. For a rapidly growing economy

seeking new markets worldwide, these trade figures will only spiral upwards in the future. This would result in the

enhanced use of the seas for economic development including shipping, fishing, natural and energy resource

extraction, and security of our offshore and coastal assets, etc.

The key objective of the Indian Navy is to use India’s maritime power in support of the national foreign policy. The

Navy discharges this role by shaping perceptions, building partnership, showing presence, building trust with

other friendly navies and participating in combined/joint operations. The use of the Indian Navy for disaster relief

operations, both within the country and also in global areas of interest, as part of the Navy’s benign role, would

continue to provide options to the national leadership.

The IN is being increasingly called upon to address issues pertaining to safety, security and stability in the region. As a

responsible nation and a benign maritime neighbour, enforcement of international laws, humanitarian assistance

and disaster relief in the Indian Ocean Region (IOR) would continue to remain at the forefront of our international

commitments. The complex maritime security environment in the IOR requires the IN to maintain a high level of

operational tempo and readiness at all times.

Piracy continues to remain a major area of concern in the IOR. During its anti-piracy patrols, the IN has done a

commendable job in thwarting to attacks on Indian and foreign merchant ships. The role and responsibility of the IN to

promote our maritime interests will continue to grow with the requirement to safeguard our expanding economic

interests as also the leadership responsibilities associated with being a mature and responsible regional maritime

power.

OPERATIONS

Anti-Piracy Operations and Coastal Security: In 2009, IN was designated as the authority responsible for overall

maritime security, which includes coastal and offshore security of the country. Several initiatives have been

undertaken by all stakeholders towards strengthening coastal security. Some of the major naval initiatives include:

setting up of Joint Operation Centres (JOCs); induction of Fast Interceptor Craft (FICs) and Immediate Support

Vessels (ISVs); setting up of Sagar Prahari Bal (SPB) for force protection duties; conduct of coastal security exercise

with all stakeholders; and, conduct awareness programmes.

INDIAN COAST GUARD: The Indian Coast Guard (ICG) came into being as an independent service on August 19,

1978 under the Coast Guard Act, 1978. Since its inception, the Coast Guard has acquired a wide range of capabilities

both surface and airborne to undertake the assigned tasks during peace time and to supplement the efforts of Indian

Navy during war.

CHAPTER-9 | DEFENCE


The command and control of the Coast Guard lies with the Director General of Indian Coast Guard, at New Delhi.

The Organisation has Regional Headquarters located at Gandhinagar, Mumbai, Chennai, Kolkatta and Port Blair. The

duties and functions of Coast Guard as enunciated in the Coast Guard Act are as follows:

(1) Safety and protection of artificial islands and offshore terminals installations and devices in Maritime Zones.

(2) Protection and assistance to fishermen at sea while in distress.

(3) Preservation and protection of marine environment.

(4) Prevention and control of marine pollution.

(5) Assistance to customs and other authorities in anti-smuggling operations.

(6) Enforcing of enactments being in force in the maritime zones.

(7) Other matters, including measures for the safety of life and property at sea and collection of scientific data.

In addition to the mandate as laid down under section 14 of Coast Guard Act 1978, the Indian Coast Guard has also

been entrusted the following additional roles:

(i) Offshore Security Coordination Authority.

(ii) National Maritime Search and Rescue Coordinating Authority.

(iii) Lead Intelligence Agency for Coastal and Sea Border.

(iv) Coastal Security in Territorial Waters.

(v) Chairman, National Oil Spill Disaster Committee.

(vi) Indian Governor to Regional Cooperation Agreement on Combating piracy and Armed Robbery against ships

in Asia (ReCAAP).

AIR FORCE: Indian Air Force (IAF) has evolved into an Aerospace power over the last decade and has risen to the

challenges of the 21 Century. The focus during the coming years would be to undertake upgradation in four priority

areas; that of operational capability, Infrastructure Development, Enhanced Security and Human Resource

Development.

Indian Air Force, whilst honing its combat capability, continues to render humanitarian assistance in times of need.

IAF’s role in “Operation Rahat” in the recent Uttarakhand disaster will feature in the annals of Military Aviation as

the biggest ever humanitarian relief and evacuation effort in difficult terrain at high altitude. It aptly reflects the maxim

“People First Mission Always” and reconfirms the unwavering commitment of IAF to serve the Nation.

RECRUITMENT Recruitment of Commissioned Officers in the Armed Forces is through UPSC: Commissioned Officers in the Armed

Forces are recruited through the UPSC which conducts the following two All India Competitive Examinations:

(a) National Defence Academy (NDA) and Naval Academy (NA): The UPSC holds entrance examination twice a

year for entry into the NDA and Naval Academy. Candidates on completion of 10+2 examination or while in the

standard are eligible to compete.

(b) Combined Defence Service Examination (CDSE): CDSE is conducted by the UPSC twice a year. University

graduates or those in final year of graduation are eligible to appear in the examination. Successful candidates

join the Indian Military Academy, Air Force Academy and Naval Academy for Permanent Commission and

Officers Training Academy (OTA) for Short Service Commission.

RECRUITMENT IN ARMY: Apart from the UPSC entries, the commissioned officers are also recruited in the Army

through the following Non-UPSC entries:

(a) University Entry Scheme (UES)

(b) Technical Graduates Course (TGC)

(c) Short Service Commission (Technical) Entry

(d) 10+2 Technical Entry Scheme (TES)

CHAPTER-9 | DEFENCE


(e) Short Service Commission (Women): Women are offered Short Service Commission in three streams, viz. Non-

Technical Graduate, Technical, Post Graduate/Specialist for a period of ten years, extendable by additional four

years purely on voluntary basis.

(f) NCC (Special Entry Scheme): Students possessing NCC ‘C’ Certificate with minimum ‘B’ grade and studying in

final year of the three year Degree course who have obtained more than 50 per cent aggregate marks in the first

two years of the degree course are eligible to apply for Short Service Commission through this entry.

(g) Judge Advocate General Entry: Law graduates with minimum 55 per cent aggregate marks in LLB, who are

within the age between 21 to 27 years of age can apply for Judge Advocate General Branch.

Recruitment of Personnel below Officers Rank (PBORs): In the Army, there are eleven Zonal Recruiting Offices, two

Gorkha Recruiting Depots, one Independent Recruiting Office and 59 Army Recruiting Offices in addition to 47

Regimental Centres which carryout recruitment through rallies in their respective areas of jurisdiction. Recruitment of

Personnel below Officers Rank (PBORs) is carried out through open rally system.

RECRUITMENT IN INDIAN NAVY: Apart from the UPSC entries the commissioned officers are also recruited

through Non-UPSC entries. The non-UPSC entries are for both Permanent Commission (PC) and Short Service

Commission (SSC) cadres. For such entries, the applications are invited and short-listed at Integrated Headquarters of

the Ministry of Defence (Navy) [IHQ of MoD (Navy)]. The short-listed candidates are then sent for SSB interviews for

the following Branches/Cadres of the Navy:

(i) 10+2 (Cadet) Entry Scheme

(ii) Executive: ShortService Commission for Air Traffic Control/ Law/ Logistic/ Naval Armament Inspectorate

(NAI)/ Hydro cadres/Pilot/Observer and also Permanent Commission for Logistic/Law/NAI Cadres.

(iii) Engineering (Including Naval Architects): Short Service Commission through University Entry Scheme (UES),

(iv) Electrical Engineering: SSC entry is through UES arid SSC(L) Schemes. Permanent Commission is through 10+2

(Cadet) Scheme.

(v) Education Branch: Permanent Commission and Short Service Commission schemes exist for this branch.

(vi) University Entry Scheme (UES): Under UES, final and pre-final year Engineering students are eligible for

induction into the technical Branches/ Cadres of the Navy.

(vii) Recruitment through NCC

(viii) Special Naval Architecture Entry Scheme: The Government has recently approved the induction of 45 Naval

Architect officers into the Naval Architecture Cadre of the Engineering Branch of the Indian Navy, as Short

Service Commission Officers.

(ix) Recruitment of Sailors: Recruitment into the Navy is carried out on All India basis on state-wise merit of the

eligible recruitable male population, as per the number of vacancies available.

RECRUITMENT IN INDIAN AIR FORCE : Induction of officers: Induction to National Defence Academy (NDA) and

Combined Defence Service Examination (CDSE) entries are through UPSC. The non-UPSC entries for induction into

the officer’s cadre are: SSC (Men & Women) flying, NCC Entry (PC for men), ASC (PC for Men), GDOC (Non Tech)

(PC for Men), Airmen Entry (PC for Air Warriors), SSS (Technical) (Men & Women), and ssc (Non Tech) (Men &

Women):

(a) Recruitment through Service Selection: Recruitment through Service Selection Boards/ Air Force Selection

Boards is made for the Flying (Pilot), Aeronautical Engineering (Electronics), Aeronautical Engineering

(Mechanical), Education, Administration, Logistics, Accounts and Meteorology branches of the Air Force.

(b) University Entry Scheme

(c) Recruitment of Women Officers: Eligible women are recruited as Short Service Commissioned Officers in the

Flying, Aeronautical Engineering (Electronics), Aeronautical Engineering (Mechanical), Education,

Administration, Logistics, Accounts and Meteorology branches of the IAF.

(d) Recruitment through National Cadet Corps (NCC)

(e) Recruitment of Personnel below Officers Rank (PBORs)

CHAPTER-9 | DEFENCE


NATIONAL CADET CORPS: The National Cadet Corps (NCC) was established under the NCC Act, 1948. It has

completed 64 years of existence. The NCC strives to provide the youth of the country opportunities for all round

development with a sense of commitment, dedication, self-discipline and moral values, so that they become useful

citizens and can take their place in all walks of life in the service of the nation. The motto of NCC is ‘Unity and

Discipline”.

TRAINING FOR DEFENCE SERVICES

1. Sainik Schools: The Sainik Schools were established as a joint venture of the Central and State Governments.

These are under the overall governance of Sainik Schools Socjety. At present, there are 24 Sainik Schools located

in various parts of the country. The objectives of Sainik Schools include bringing quality public school education

within the reach of the common man, all round development of a child’s personality and to remove regional

imbalance in the officer’s cadre of the Armed Forces.

2. Rashtriya Military Schools: There are five Rashtriya Military Schools in the country at Belgaum and Bengalore

in Karnataka, Chail in Himachal Pradesh and Ajmer and Dholpur in Rajasthaa. These schools are affiliated to

CBSE. Boys are admitted in Class VI based on the results of an all India Common Entrance Test.

3. National Defence Academy: The National Defence Academy (NDA) is a premier Tri-Service institution which

trains cadets of all three Services before inducting them into their respective 55 commissioning training

academies. Keeping in mind the shortage of officers in the Indian Armed Forces and the consequent urgency for

making up the deficiency the intake capacity of NDA was recently enhanced from 1800 cadets to 1920 cadets

4. Rashtriya Indian Military College: The Rashtriya Indian Military College (RIMC) was founded on March 13,

1922, with the objective of providing the necessary preliminary training for boys of Indian birth or domicile,

wishing to become officers in the Armed Forces of India. The institute now serves as a feeder institute to the

National Defence Academy.

5. Indian Military Academy, Dehradun: Indian Military Academy is a premier training establishment imparting

Pre-commissioned training to the Gentlemen Cadets (GC). The training is aimed to make the Gentlemen Cadet

an effective Platoon Commander once he passes out.

6. Officers Training Academy, Chennai: Established in 1963, the Officers Training School (OTS) was re-

designated as Officers Training Academy (OTA) from January 1, 1988 on completion of 25 years of its existence.

Its main task, before 1965 was to train Gentlemen Cadets for grant of Emergency Commission. From 1965

onwards, the Academy trains cadets for Short Service Commission. With the entry of women officers in the

Army since September 21, 1992, around 100 lady officers now get commissioned from OTA every year in Army

Service Corps, Army Education Corps, Judge Advocate General’s Department, Corps of Engineers, Signals and

Electrical and Mechanical Engineers.

7. Officers Training Academy, Gaya: The Cabinet Committee on Security (CCS), on December 2, 2009 has

approved setting up of second Officers Training Academy (OTA), Gaya. The Academy has been commissioned

on July 18, 2011.

8. College of Military Engineering, Pune: The College of Military Engineering at Pune is a premier technical

institution conducting training for personnel of the Corps of Engineers, other Arms and Services, Navy, Air

Force, Para Military Forces, Police and Civilians. Besides, personnel from friendly foreign countries are also

trained. CME is affiliated to Jawaharlal Nehru University (JNU) for the award of B.Tech.

9. National Defence College: The National Defence College has established a name for itself as a centre of

excellence on matters pertaining to National Security and Strategic Studies. Selected Armed Forces officers of the

rank of Brigadier/ equivalent and Civil Services officers of equivalent status of Director and above are

nominated for training at the college. The officers undergo an eleven months programme with focus on National

Security.

10. College of Defence Management: The College of Defence Management (CDM) is a Armed Forces Training

institution (AFTI). This is in existence for over three decades now. It is entrusted with the responsibility of

instilling contemporary management thoughts, concepts and practices in the senior leadership of the Armed

Forces. Osmania University recognizes the core course of CDM, namely the Higher Defence Management

Course for the award of the Master of Management Studies (MMS) degree.

CHAPTER-9 | DEFENCE


11. Defence Services Staff College (DSSC): The DSSC is one of the oldest military institutions in India. The DSSC

imparts training to middle level officers of the three Services besides a few civilian officers and officers from

friendly foreign countries. The college conducts a 45 week training programme from June to April every year.

After successful completion of the course they are awarded with M Sc. Degree from Madras University.

DEFENCE PRODUCTION: The Department of Defence Production was set up in November 1962 with the objective of

developing a comprehensive production infrastructure for the defence of the nation. Over the years, the Department

has established wide ranging production facilities for various defence equipments through the Ordnance Factories and

Defence PSUs. The products manufactured include arms and ammunition, tanks, armoured vehicles, heavy vehicles,

fighter aircraft and helicopters, warships, submarines, missiles, ammunition, electronic equipment, earth moving

equipment, special alloys and special purpose steels.

ORDNANCE FACTORIES: The Ordnance Factory Board has 39 Factories with two more being set up at Nalanda and

Korwa. Ordnance Factories are divided into 5 operating groups (i) Ammunition and Explosive, (ii) Weapons,

Vehicles and Equipments, (iii) Materials and Components, (iv) Armoured Vehicles and (v) Clothing and

equipments, each headed by Additional DGOF.

DEFENCE UNDERTAKINGS

(1) Hindustan Aeronautics Limited: Hindustan Aeronautics Limited (HAL) is a Navratna Company and a premier

aeronautical complex of South Asia. HAL’s expertise encompasses design, production, repair, overhaul and

upgrade of Aircraft, Helicopters, Aero-engines Accessories, Avionics and Systems. HAL has so far designed and

developed and manufactured 15 types of aircraft/helicopters and it has positioned itself as a comprehensive

solution provider to the Indian Defence Services in Aviation, spanning fighter aircraft, trainer aircraft and light

helicopters. In addition, codevelopment of Fifth Generation Fighter Aircraft (FGFA) and Multi-role Transport

Aircraft has been taken up with Russian Panthers which will enhance the level of contribution of HAL towards

self-reliance in defence field.

(2) Bharat Electronics Limited (BEL): BEL is a Navaratna PSU, which was established at Bangalore in the year 1954.

BEL ranks 69th amongst the top companies worldwide in defence revenues. The company has core competencies

in areas of Radars and Fire Control Systems, Weapon systems, Sonars, Communication, Network Centric

Systems, Electronic Voting Machines (EVMs), Tablet PCs (BEL designed), large variety of Components like

Integrated Circuits, Hybrid Microcircuits, Semiconductor Devices, Solar Cells etc. Apart from these, BEL also

has presence in the areas of Access Systems, Homeland Security systems and select non-defence applications.

(3) Garden Reach Shipbuilders & Engineers Ltd.: GRSE, a Leading shipyard, has expertise of building a wide

array of vessels, from world class Frigates to Fast Interceptor Boats.

(4) Goa Shipyard Limited: Goa Shipyard Limited (GSL) is capable of designing and building high technology and

sophisticated ships to meet the crucial maritime security needs of the country. For over four decades and more,

GSL has designed and built wide range of sophisticated vessels for defence commercial sectors with special

expertise in building modern Patrol Vessels of Steel and Aluminium hull.

(5) Hindustan Shipyard Ltd: Hindustan Shipyard Ltd., is located on the East Coast of the Indian Peninsula and is

nation’s premium shipbuilding and ship/submarine repair organization.

(6) Mazagon Dock Limited: Mazagon Dock Limited (MDL) is the Mini Ratna company and is India’s premier

Shipyard, specialized in construction of Warships of various sizes and classes, Submarines, other technologically

Advanced Commercial Vessels and Offshore Platforms/Drilling Rigs. MDL also undertakes repairing of

Warships, Coast Guard and Submarines. Presently, the yard is constructing Scorpene Submarines and Missile

Destroyers of for the Indian Navy.

(7) BEML Limited (BEML): BEML Limited established in 1964, is a Miniratna Category-I multi-location, multi

product engaged in design, manufacturing, marketing and after-sales service of wide range of equipment to

three distinct business segments i.e. Defence, Min and Construction and Rail & Metro.

(8) Bharat Dynamics Limited (BDL): Bharat Dynamics Limited (BDL), a Miniratna Category — I company,

incorporated in the year 1970. A pioneer in the manufacture of Anti-Tank Guided Missiles, BDL is now

CHAPTER-9 | DEFENCE


manufacturing Anti-Tank Guided Missiles (ATGMs) of later generations, surface-to-air weapon systems,

strategic weapons, launchers, und water weapons, decoys and test equipment.BDL is producing Konkurs-M and

Invar (3BK-20) ATGMs in collaboration with KBP, Tula (Russia) and Rosoboron export (Russia) respectively and

Milan-2T with MBDA (France). Recently, BDL has achieved a milestone of producing the wholly indigenous

Surface-to-Air Missile — Akash for the Indian Armed Forces. C-303 (Anti-Tropedo Counter Measure Systems)

produced by BDL has already been fitted in Indian Navy Submarines.

(9) Mishra Dhatu Nigam Limited (MIDHANI): MIDHANI Ltd, was established in 1973 at Hyderabad with the

main objective of providing the Nation self-reliance in strategic materials which are key to sustenance and

growth of the critical technologies and products to render support to several programs of national importance

like Light Combat Aircraft, MBT Arjun, PSLV, GSLV power plants etc.

DIRECTORATE GENERAL OF QUALITY ASSURANCE (DGQA) : DGQA is an Inter-Service Organisation under

the Department of Defence Production responsible for quality assurance of all defence equipment and stores for the

Army and Navy (excluding Naval Armaments) as well as common use items for the Air Force. DGQA provides

technical guidance to manufacturers, users and is also responsible for technical evaluation and final acceptance of

specified products. The organization also acts as the Authority Holding Sealed Particulars (AHSP) and provides

technical assistance to the Armed Forces in several areas such as formulation of GSQR and RFPs, technical evaluation

of tenders, conduct of defect investigations, assessment of users’ satisfaction etc.

DIRECTORATE GENERAL OF AERONAUTICAL QUALITY ASSURANCE (DGAQA): DGAQA is an organisation

under the Department of Defence Production that responsible for Quality Assurance and final acceptance of military

aircraft accessories and other aeronautical stores for use in military aviation. QA coverage is provided through all the

stages of design, development, production, overhaul repairs and up-gradation of aeronautical stores. DGAQA plays an

important role in providing technical guidance to the Service Headquarters during various stages of procurement of

aeronautical stores for indigenous as well as imported origin. The Headquarters of the organisation is in New Delhi

and there are 34 Field Establishments in different parts of the country.

DIRECTORATE OF STANDARDISATION (DOS) : The primary objective of the DOS is to establish commonality in

equipment and components among the three Services so that the overall inventory of the Defence Services is reduced

to the minimum. The objective is sought to be achieved through preparation of various Standardisation documents,

Codification of Defence Inventory and through exercising strict entry Control.

DIRECTORATE OF PLANNING & COORDINATION : It was set up in 1964 with the primary objective of preparing

overall plans for the production of defence equipment in the country. The Directorate functions as an attached office of

the Department of Defence Production. The Directorate primarily deals with capital acquisition of various Weapon

Systems and Platforms of the Armed Forces of India viz., Air Force, Army, Navy and Coast Guard. The Directorate

also deals with issues relating to defence production policy, formulation of JV guidelines and other policy related

issues from DDP’s perspective. In addition, the Directorate deals with modernization of shipyards as well as matters

pertaining to International Cooperation.

DEFENCE EXHIBITION ORGANISATION (DEO): The main function of DEO is to organize and co-ordinate Defence

exhibitions in India and abroad, primarily with a view to promote the export potential of defence oriented products

and services, developed and manufactured by the Indian Defence Industry.

Aero India: The ninth edition of Aero India (Aero India — 2013) was organized from February 06 to 10, 2013 at the Air

Force Station, Yelahanka, Bengaluru.

Defexpo INDIA : Conceived as a complementary exposition to Aero India, the Defexpo India was launched in 1999.

International Exhibitions Abroad: With a view to provide an impetus to export potential of the Indian Defence

Industry, DEO organizes “India Pavilion” for major defence products manufactured by them in the international

exhibitions abroad.

CHAPTER-9 | DEFENCE


National Institute for Research and Development in Defence Shipbuilding (NIRDESH): NIRDESH which was set

up as an autonomous society under the aegis of the Ministry of Defence, Department of Defence Production has been

envisaged as the nerve centre of India’s futuristic shipbuilding programmes. R and D, Design Technology

Development, Industry Interfacing, Training and Project Management have been identified as the core areas guiding

the roles of NIRDESH. This nerve centre will be responsible to collate and consolidate existing capabilities, create new

capabilities and cover the gaps that exist.

RESEARCH AND DEVELOPMENT: Defence Research and Development Organisation is the Research and

Development (R&D) Wing of the Ministry of Defence with a vision to empower India with cutting edge defence

technologies. Since it came into existence in 1958, it has grown multi- dimensionally and has evolved as a core research

organisation with a vast network of 54 laboratories and establishments spread across the country. It has evolved into a

highly professional organisation with strong technology base and management systems to undertake indigenous

development of state-of-the-art weapon systems and equipment in a comprehensive manner including design

development, integration and production. DRDO has made the country proud through achievement of technological

self-reliance in a number of critical areas including aeronautics, ammunition, armoured systems, surface-to-surface

missiles, sonar systems, electronic warfare systems, cyber security, micro-electronics devices, NBC defence and

advanced computing. It plays significant roles, like providing scientific and chno1ogical advice to the Ministry of

Defence in support of defence policy; sevaluat01 of defence equipment for the military operational requirements; and

new technological knowledge to be transferred for development of state of the-art weapon systems by the defence

industries.

RESELEMENT OF EX-SERVICEMEN: The Department of Ex-servicemen Welfare (DESW) formulates various policies

and programmes for the welfare and resettlement of Ex-servicemen (ESM) in the country The Department has two

Divisions viz. Resettlement and Pension, and 3 Attached offices namely Kendriya Sainik Board, Directorate General

(Resettlement) and Central Organisation, Ex-servicemen Contributory Health Scheme.

Kendriya Sainik Board: The Kendriya Sainik Board (KSB) is the apex body of Government of India responsible for

implementing Government policies for welfare of Ex-servicemen (ESM), disabled ESM and dependents/Wards of

ESM. It is assisted in its task by 32 Rajya Sainik Boards and 377 Zila Sainik Boards. Armed Forces Flag Day Fund

(AFFD) is the major source for funding the institutions, such as paraplegic Homes, Cheshire Homes, St. Dustan’s After

Care Organisation (for blind soldiers) and for providing financial assistance under various welfare schemes as under:

1. Raksha Mantri’s Discretionary Fund (RMDF): A portion of earnings of Armed Forces Flag Day Fund is

utilized for providing financial assistance to needy ESM, Widows and their wards for various identified

personal needs are Penury Grant, Education Grant, Officer Cadet Grant (for Cadets of NDA only) , Disabled

Children Grant, House Repair Grant in case of any natural calamity Marriage Grant (Maximum 2 daughters),

Funeral Grant, Medical Grant, Orphan Grant and Vocational Training Grant For Widows.

2. Prime Minister’s Scholarship Scheme: 4000 scholarships are granted annually under Prime Minister

Scholarship Scheme for the wards of Ex-servicemen/widows, undergoing Professional Degree Courses in

India duly recognised by the Indian regulatory bodies such as AICTE, MCI etc. This scheme is funded from the

National Defence Fund.

3. War Memorial Hostels: War Memorial Hostels have been constructed with a view to provide shelter to the

children of war widows.

4. Reserved Seats in Medical/Dental Colleges: 25 MBBS and 2 BDS seats are allotted to the wards of Defence

personnel through KSB during academic year 2012-13.

Director General (Resettlement) : Nearly 60,000 armed forces personnel retire or are released from active service every

year. Most of them are in the bracket of 35 to 45 years and need a second career. Directorate General Resettlement

(DGR) is entrusted with the responsibility of preparing retiring service personnel for a second career through various

training programs, assistance in re-employment/placements and self-employment schemes. These training programs

CHAPTER-9 | DEFENCE


are also open to those ex-servicemen w could not avail the facility of these training programs while in service and to

the widows/dependents of ex-servicemen.

Reservation in Government jobs: Central Government has provided for the following reservation in services for ESM:

(a) 10 per cent posts of Assistant Commandants in Paramilitary forces.

(b) 10 per cent in Group ‘C’ posts.

(c) 14 per cent in Group ‘C’ posts in PUSs and Nationalized Banks.

(d) 20 per cent in Group ‘D’ posts.

(e) 100 per cent in Defence Security Corps.

Schemes for Self-Employment: The DGR has formulated following self. employment ventures/schemes for

rehabilitation and resettlement of ex-servicemen and their families i.e. Coal Transportation Scheme, Coal Tipper

Scheme attachment scheme, Allotment of Oil Product Agency (LPG / Petrol Pumps/Superior Kerosene Oil

Distributorship), Management of Company Owned Company Operated Retail Outlets of IOC, BPCL and HPCL,

Operation of Mother Dairy Milk Booths and Fruit and Vegetable (Safal) Shops, Management of CNG Stations in NCR,

Allotment of Army Surplus Vehicles and Operations of Gopaljee Ghee and Farm Fresh Dairy milk booth.

Ex-Servicemen Contributory Health Scheme (ECHS): ECHS was launched with effect from April 1, 2003. The Scheme

aims at providing quality medicines to Ex-servicemen and their dependents for all known diseases through a network

of ECHS Polyclinics, Service medical facilities and civil empanelled/Govt. hospitals spread across the country.

Pension to Armed Forces Personnel: Pension to an estimated number of 18.70 lakh Defence pensioners is disbursed

through 27 Public Sector Banks, 4 Private Sector Banks, 640 Treasuries, 63 Defence Pension Disbursing Offices

(DPDOs), 2 Post Offices, 5 Pay and Accounts Offices (PAOs) spread all over India. For the Armed Forces Pensioners

residing in Nepal, disbursement of pension is done through 3 Pension Payment Offices (PPOs).

DEFENCE RESEARCH AND DEVELOPMENT ORGANISATION

India is today “One of the 4 countries to have multi-level Strategic Deterrence Capabilities; one of the 5 countries to

have its own Ballistic Missile Defence (BMD) program; one of the 6 countries to have developed a nuclear - powered

Submarine; one of the 7 countries to have developed its Main Battle Tank (MBT); one of select few countries to have its

own Electronic Warfare and multi-range Radar program”. All these and many more world class weapon systems,

platforms and military equipment are based on cutting edge technology developed by DRDO, the R&D wing of the

Ministry of Defence. Its mission is to achieve self-reliance in critical defence technologies and systems by

indigenization and innovation, building indigenous capabilities and equip India’s armed forces with state-of-the-art

weapon Systems and equipments. It came into existence in 1958 with the amalgamation of Technical Development

Establishment (TDEs) of Indian Army and Directorate of Techni Development and Production (DTD&P) with

Defence Science Organization (DSO) Scientific Advisor to Raksha Mantri (SA to RM), who is also the Secretary

Department of Defence R and D and Director General DRDO is the head of the organization. Dr. DS Kothari, the

eminent scientist and educationist was the first to head the Organization. The Corporate Headquarters is located

DRDO Bhawan, at Raja Marg, New Delhi

DRDO carries out design and development of state-of-the-art Weapon Systems, Platforms, Sensors and allied

equipment, and lead them to production through production agencies. It apprises the Raksha Mantri on the influence

on National Security of emerging developments in Science and Technology and renders advice to Raksha Mantri and

to the three services and inter services organization on all scientific aspects of weapons; weapon-platforms; military

operations; surveillance; support and logistics in all likely theatres of conflict. DRDO formulate and executes programs

of scientific research, design and development in areas relevant to national security. It also functions as the nodal

agency for the execution of major Defence related programs with the national scientific institutions, PSUS and private

agencies.

CHAPTER-9 | DEFENCE


Achievements: In terms of tangible outputs, DRDO has developed wide range of strategic and tactical weapon systems

and equipment along with complex technologies associated with such systems. The production value of systems based

on DRDO technologies that have been inducted/approved for induction into Services during the past decade has

crossed Rs. 1,55,000 crore. Successful indigenous development and production of strategic systems and platforms such

as Agni and Prithvi series of missiles, nuclear powered submarine- Arihant, and wide range of tactical weapons and

support system such as light combat aircraft- Tejas, Unmanned Aerial Vehicles, Main Battle Tank — Arjun,

electronic warfare systems, sensors, armaments, ammunition, etc. have given quantum jump to India’s military

might, generating effective deterrence, providing crucial leverage and marking India’s entry into the elite club of

countries possessing such technologies. The percentage of indigenous systems acquired by Indian Armed Forces

has significantly increased from the earlier 30 per cent to above 55 per cent. Some recent additions to the list of

successes are launches of Agni 4 and Agni 5 ballistic missiles, development of underwater launched ballistic missiles

(BO5), and maiden launch of India’s long range cruise missile “Nirbhay’, development of Airborne Early Warning

and Control (AEW&C) system and On- Board Computers for missiles.

Products & Systems Developed/Accepted/Inducted:

1. Missile and Strategic Systems: Surface-to-surface (SS) strategic missile systems: Agni 1 (700 km), Agni 2 (2000

km) and Agni 3 (35000 krn), Agni 4 (3500 km), the latest in series, Agni 5 (>5000 kms). Prithvi II and its ship

launched version Dhanush; underwater launched ballistic missile (BO5), have been developed along with

associated technologies and thee production facilities. Dhanush, Prithvi II, Agni 1, Agni 2 and Agni 3 are already

inducted. Prahar, a novel and highly manoeuvrable precision strike Surface-to-Surface tactical missile capable of

being fired in salvo mode, Akash — multi-directional, multi-target SAM area defence weapon system is

inducted; so is Brahmos for Army and Navy and is the only tactical Supersonic Cruise Missile in the world. Nag

— 3rd generation anti tank missile, RINS-Ringh Laser Gyro based INS-GPS-GLONASS for long range missile

and Aircraft, Millimetre Wave Seeker, MINGS (Miniaturized Inertial Navigation and Guidance System) -

MEMS (Micro Electro Mechanical system) based Hybrid Navigation System are some other products.

2. Aeronautical Systems: Light Combat Aircraft (LCA) Tejas MK-1 has achieved Initial Operational Clearance

The Final Operational Clearance (FOC) is expected by 2014. LCA-Navy the naval variant of LCA is undergoing

flight trials. Indigenous Airborne Early Warning and Control Systems (AEW&C) have entered final phase of

flight trial, expected to join Air Force in early 2014. ‘Lakshya-II - the advanced Pilotless Target Aircraft,

Unmanned Aerial Vehicles “Nishant” and ‘RUSTOM”, Electronic Warfare Suites, Multi-channel Radar warning

Receivers RWR), High Accuracy Direction Finder (HADF), ‘Identification Friend or Foe (IFF)-MK XII”, Self-

protection suites against Radars, Missiles and LASERs for helicopters, Mission Computers and avionics upgrade

for several fighter aircraft are other success stories. Sudarshan, a laser seeker kit for converting 1000 lb bombs

into laser guided bombs was developed and demonstrated.

3. Armament Systems: Over a million pieces of 5.56 mm INSAS (Indian Small Arms System) inducted, INSAS is

available in fixed and foldable butt versions of Assault Rifle and LMG, all firing the same ammunition and

having 70 per cent commonality of parts. Multi barrel Rocket Launcher System, Pinaka 1 has been inducted by

Indian Army; Pinaka II with longer range is undergoing trials. Thermo-haric ammunition capable of delivering

a devastating, simultaneous fragmentation, Thermal and blast effect has been developed for MBT Arjun.

Adrushya mine to immobilize contemporary battle tanks, warheads for Rockets, Missiles and torpedoes, Bi-

Modular Charge System (BMCS) for field guns etc.

4. Combat Vehicles and Engineering: Two regiments of Main Battle Tank - “MBT-Arjun Mk-1”, have been

raised and inducted in the Army. T-72 Ajeya tank has been modernized with indigenous technologies

upgrading its Fire power, Mobility production and equipping it with Explosive Reactive Armour (ERA), Global

positioning System (GPS), Integrated Fire Detection and Suppression System (IFDSS) and reconfigured Smoke

Grenade Discharge (SGD). SARVATRA, the mobile bridge laying system, Modular bridge SAKAV and

Remotely Operated Vehicle (Daksh) are other inventories.

5. Electronics, Computer Systems and Micro Electronics: Electronic Warfare Systems (EWS): Diva Drishti -

integrated Signal Intelligence System, EWS Samyukta for Army and SANGRAHA for Navy, SUJAV - a

compact communication electronic warfare suite. Advanced ESM System (Varuna) for Navy with capability to

intercept and process all modern radars, Convey Protection Jammers (SAFARI and STRIDE). Radars: Indian

CHAPTER-9 | DEFENCE


Doppler Radar INDRA-1 and II,, Multifunction phased array radar (Rajendra), Low Level Light Weight Radar

(Bharani), 3-D Central Acquisition Radars - Revati for Navy and Rohini for Air Force, Super Vision Maritime

Patrol Radaf (SV-2000 MPAR). Communication Systems: Software Defined Radio (SDR), Data-link for

unmanned aerial vehicle – NISHANT etc.

6. Naval Systems: Ship-borne sonar HUMSA-NG, Airborne dunking sonar MIHIR, Torpedo Advanced Light

TAL, Helicopter Fire Control System capable of launching of TAL (Advanced Light Torpedo) and depth

charges, Advanced Active cum Passive integrated sonar system USHUS, active cum Passive towed array sonar

Nagan, active towed array detection aim decoy system Mareech. Torpedoes-Fire Control System, advanced

Panoramic Sonar Hull mounted APSOH, PACHENDRIYA - Integrated submarine sonar and tactical fire control

system, heavy weight torpedo Varunastra etc.

7. CBRN (Chemical Biological Radiation and Nuclear) defence systems: NBC - Recce Vehicle, Protective

Clothing/Permeable Suites, water purification system. NBC Canister, Water Poison Detection Kit, Portable

Decontamination Apparatus, NBC Filters/Ventilation systems, CW Type A/B Decontamination kit! Solution,

Diagnostics kits for detection of Dengue, Chikungunya, Plague, Typhoid, Japanese Encephalitis, Malaria,

Leptospirosis and swine flu, ELISA kit for simultaneous identification of food pathogens, NBC Protected

Integrated Field Shelter.

8. Life Sciences: Safety and efficiency of soldier, the man behind machines under the most diverse battlefield

conditions (extremes of cold and heat, mountains, deserts, tropical forests and so on) is a high priority and

DRDO has developed many Life Support Systems for Armed forces. Some of these products are Computerized

Pilot Selection System (CPSS), On-hoard Oxygen Generation System (OBOGS), Helicopter oxygen system to

meet the aircrew oxygen requirement up to 33000 Ft, Submarine Escape Set for escape from an abandoned

submarine from depths of l00m, Combat Free Fall system capable to withstand the harsh conditions of free fall

from 30,000 ft. Herbal Anti oxidant supplement, High Altitude adapted & fast growing Broiler Sheep, High

medicinal value Mushrooms, high altitude medical products, molecular imaging drugs and enhancers for

Armed Forces, Materials. DMR-1700 Steel missile application: MDR-249A and DMR 2498 Steels for Naval

Applications (Used in India’s 1st indigenous Aircraft Carrier INS Vikrant) etc.

The most significant contribution of DRDO is the creation of an eco-system conducive to development of cutting edge

technologies by developing partnerships with academic/research institutions and with industries; creating exhaustive

infrastructure, both, within the organization and the partner entities; creating centre of excellence and establishing

high quality manpower resources. The major partners in DRDO’s nation building endeavours include the three arms

of the Services as the prime users, Defence PSUs, Private Industries, International Collaborators and

Academic/Researchers. Training in specialised defence technology-related areas is offered to many developing

countries for their scientific/engineering personnel at the Defence Institute of Advanced Technology (A Deemed

University), Pune. Directorate of Interaction with Services for Business (DISB) provides an effective single window

interface to Army, Navy, Air Force, Coast Guard and Acquisition Wing of Ministry of Defence. DRDO technologies

developed for Armed Forces are also benefiting the civil society. The bio-digesters originally developed for armed

forces for use in cold regions, have found application for passenger coaches in Indian Railways. DRDO developed bio-

digesters are likely to be installed in Lakshadweep islands and about 2.4 lakh Gram Panchayats in phases. DRDO,

being knowledge based organization, has been generating and protecting the intellectual property rights as part of its

culture. DRDO provides support to Academia to carry out research on topics related to military science under Grants-

in-Aid Scheme. Over hundred new projects have been sanctioned covering emerging technology areas that include

advanced signal processing, high energy materials, nano-material technologies etc. Three DRDO chairs have been

created at Bengaluru, Delhi and Hyderabad to give more impetus to directed research in cutting edge technologies in

close association with academia, industry, and research scholars.

CHAPTER-10 | EDUCATION


CHAPTER TEN| EDUCATION

EDUCATION is not only an instrument of enhancing efficiency but also an efficient tool for augmenting and widening

democratic participation and upgrading the overall quality of individual and society. India has a vast population and

to capture the potential demographic dividend, to remove the acute regional, social and gender imbalances, the

Government is committed to make concerted efforts for improving the quality of education as mere quantitative

expansion will not deliver the desired results in view of fast changing domestic and global scenario.

The Ministry of Human Resource Development has two Departments i.e. Department of School Education & Literacy

and the Department of Higher Education. The vision of the Department of School Education & Literacy is to ensure

education of equitable quality for all to fully harness the nations human potential, and the vision of the

Department of Higher Education is to realize India’s human resource potential to its fullest in the education sector,

with equity and excellence. It is being increasingly realized all over the world that economic well being and

productive efficiencies can be realized with higher intellectual and professional capabilities of human beings. A good

quality human resource base is extremely important in today’s highly competitive environment. The very concept of

development in the past two decades has evolved in this direction which has moved from income and income

distribution to human resource development. This is the very reason for the marked shift from the welfare approach of

education to the right based approach, providing the foundation for the right to dignified living through its

transformative potential to development.

To meet these challenges, the Ministry’s endeavour has been to achieve ‘Education for All with an inclusive approach.

Elementary Education comprising primary and upper primary, forms the foundation of the education pyramid. Hence,

to strengthen this foundation and to achieve the goal of universal access to quality education for all, the Right of

Children to Free and Compulsory Education (RTE) Act, 2009 became operative on 1st April, 2010. Further, to enhance

enrolment, retention and attendance and simultaneously improving nutritional levels among children, the major

intervention includes ‘National Programme of Mid-Day Meal (MDM) in Schools’. At the same time, the Sarva Shiksha

Abhiyan (SSA) is being implemented to achieve the goals of universal access and retention, bridging of gender and

social gaps in enrolment levels and enhancement of learning levels of all children.

Special emphasis is also given for promotion of girls’ education. Mahila Samakhya (MS), which has a special focus on

the Educationally Backward Blocks (EBBs) is a unique, process-oriented programme which has demonstrated ways of

empowering rural poor and marginalised women. It has promoted their effective participation in the public domain

and in educational and learning processes. With the enforcement of RTE Act, and further improvement in retention

and transaction rates there is an increasing pressure on the Secondary Schools to expand capacity. To meet this

demand a number of schemes for Secondary Education are being implemented viz.

RIGHT OF CHILDREN TO FREE AND COMPULSORY EDUCATION (RTE) : Article 21-A of the Constitution of

India and its consequent legislation, the Right of Children to Free and Compulsory Education (RTE) Act, 2009 became

operative in the country on 1st April2010. Every child has a right to elementary education of satisfactory and equitable

quality in a formal school which satisfies certain essential norms and standards specified in the RTE Act. The reform

processes initiated in 2010-11, pursuant to this important development, were continued during the year 2011-12, 2012-

13 and 2013-14. All States/UTs have notified their State RTE Rules.

MID-DAY MEAL PROGRAMME : With a view to enhance enrolment, retention and attendance and

simultaneously to improve the nutritional status of children, a Centrally Sponsored Scheme “National Programme

of Nutritional Support to Primary Education (NP-NSPE)” was launched on 15th August, 1995. The Scheme was

extended during 2008-09 to cover children of upper primary classes and the name of the Scheme was changed as

National Programme of Mid-Day Meal in Schools’. At present all the primary and upper primary Government,

Government-aided Local Body Schools, National Child Labour Projects (NCLP) Schools, the centres run under

Education Guarantee Scheme (EGS)/Alternative & Innovative Education (AIE), Madarsas and Maqtabs supported

CHAPTER-10 | EDUCATION


under SSA are covered under Mid-Day Meal Scheme. The scheme is being revised from time to time in its content and

coverage. The Mid Day Meal Scheme covered 10.68 crore elementary class children in 12.12 lakh schools in the country.

The objectives of the Mid-Day Meal Scheme are to address two of the pressing problems for majority of children in

India, viz, hunger and education by :

(i) Improving the nutritional status of children in classes I-VII in Government, Local Body and Government aided

schools, and EGS and AIE centers, NCLP schools and Madarsas and Maqtabs supported under SSA.

(ii) Encouraging poor children, belonging to disadvantaged sections, to attend school more regularly and help them

concentrate on classroom activities.

(iii) Providing nutritional support to children of elementary stage in drought-affected areas during summer vacation.

MAHILA SAMAKHYA PROGRAMME : Mahila Samakhya (MS) is an ongoing scheme for women’s empowerment

that was initiated in 1989 to translate the goals of the National Policy on Education into a concrete programme for the

education and empowerment of women in rural areas, particularly those from socially and economically marginalized

groups. The objectives of the MS programme is to create an environment in which education can serve the objectives of

women’s equality and where women can seek knowledge and information and thereby empower them to play a

positive role in their own development and development of society. Currently the programme is being implemented in

126 districts of ten States viz. Andhra Pradesh, Assam, Bihar, Chhattisgarh, Jharkhand, Karnataka, Kerala, Gujarat,

Uttar Pradesh & Uttarakhand.

INDIAN COUNCIL OF SOCIAL SCIENCE RESEARCH (ICSSR) : The Indian Council of Social Science Research

(ICSSR), New Delhi, was set up in 1969 by the Government of India. Its primary objective is to promote research in

Social Sciences and to facilitate its utilization by the concerned stakeholder, the State Governments, coordinate and

develop skills to undertake research in social and development.

OPEN UNIVERSITIES : Indira Gandhi National Open University (IGNOU) was established by an Act of Parliament

in 1985 to enhance access and equity to higher education through Open and Distance Mode. The University aims at

empowering the disadvantaged and marginalised persons through appropriate education and skills for their gainful

employment and opportunities for life long learning, thereby promotes inclusive national growth within the objectives

of the University.

SAAKSHAR BHARAT : Saakshar Bharat (SB), the new variant of the National Literacy Mission, was launched on

September 8, 2009. Initially, the scheme was in operation till 31 March 2012, now Saakshar Bharat programme has been

included in the XII Five Year Plan (2012-17). The financial parameters for 2013-14 were the same as in XI plan period.

INTERNATIONAL STANDARD BOOK NUMBER (ISBN) : The International Standard Book Number (ISBN) is a

unique International Publishers Identifier number, which is meant for the Monographic Publications. ISBN is known

as short machine-readable identification number, which makes separate easy accessibility. Raja Rammohun Roy

National Agency, Ministry of Human Resource Development introduced ISBN System in India in 1985.

CHAPTER-11 | ENERGY


CHAPTER ELEVEN| ENERGY

ENERGY is an essential input for economic development and improving the quality of life. Development of

conventional forms of energy for meeting the growing energy needs of society at a reasonable cost is the responsibility

of the government. Development and promotion of non-conventional/alternate/new and renewable sources of energy

such as solar, wind and bio-energy, etc., are also getting growing attention. Nuclear energy development is being

geared up to contribute significantly to the overall energy availability in the country.

POWER : Power development in India commenced at the end of the 19th century with the commissioning of electricity

supply in Darjeeling during 1897, followed by the commissioning of a hydropower station at Sivasamudram in

Karnataka during 1902. In the pre-Independence era, the power supply was mainly in the private sector, that too

restricted to the urban areas. With the formation of State Electricity Boards during Five-Year Plans, a significant step

was taken in bringing about a systematic growth of power supply industry all over the country A number of multi-

purpose projects came into being, and with the setting up of thermal, hydro and nuclear power stations, power

generation started increasing significantly.

The construction and operation of generation and transmission projects in the Central sector are entrusted to Central

Sector Power Corporations, viz., the National Thermal Power Corporation (NTPC), the National Hydroelectric Power

Corporation (NHPC), the North-Eastern Electric Power Corporation (NEEPCO), and the Power Grid Corporation of

India Limited (PGCIL). The Power Grid is responsible for all the existing and future transmission projects in the

Central Sector and also for the formation of the National Power Grid. Two joint-venture power corporations, namely,

Satluj Jal Vidyut Nigam (SJVN) (formerly known as NJPC) and Tehri Hydro Development Corporation (THDC) are

responsible for the execution of the Nathpa Jhakri Power Project in Himachal Pradesh and projects of Tehri Hydro

Power Complex in Uttarakhand respectively.

ULTRA MEGA POWER PROJECTS : The Government of India had launched an initiative for the development of

coal-based Ultra Mega Power Projects (UMPPs), each with a capacity of 4,000 MW. The objective of the initiative is to

ensure cheaper tariffs utilizing economies of scale, catering to the need of a number of States and to mitigate the risk

relating to tie up of land fuel, water and other statutory clearances etc. The projects are being awarded to the successful

developers on the basis of tariff based competitive bidding route employing super critical technology; To tie-up for

necessary inputs and clearances such as provision of site, fuel through captive mining blocks, water and in-principle

environment and forest clearances, project-specific shell companies (SPVs) are set up as wholly owned subsidiaries of

the Power Finance Corporation Ltd. (PFC) - the nodal agency for these projects.

These SPVs, along with the various clearances etc. are subsequently transferred to the successful developer. Four

UMPPs namely Sasan in Madhya Pradesh, Mundra in Gujarat, Krishnapatnam in Andhra Pradesh and Tilaiya in

Jharkhand have already been awarded to the successful bidders and are at different stages of development.

CHEYYUR : The site for Cheyyur in Kanchipuram District, Tamil Nadu has been indentified along with captive port at

Panaiyur village. RFQ for this UMPP has Programme objective of providing access to electricity to all rural Households

over a period of four years. Rural Electrification Corporation (REC) is the nodal agency for the programme.

AUTOMATIC APPROVAL FOR FDI: Automatic approval (RBI route) for 100 foreign equity is permitted in

generation, transmission, and distribution and trading in power sector without any upper ceiling on the quantum of

investment. The Government on 22.8.2013 notified revised position for FDI Cap for Power Exchanges registered under

CERC Regulations, 2010.

CHAPTER-11 | ENERGY


PUBLIC SECTOR UNDERTAKINGS

NTPC LIMITED : NTPC Limited, a Maharatna Company of the Government of India, is the largest power generator in

India with comprehensive in-house capabilities in building and operating power projects. NTPC has authorized share

capital of Rs. 10,000 crores and paid up capital is Rs. 8245.5 crores. 75% of this is held by the Government of India.

NTPC has a vision ‘to be the worlds largest and best power producer, powering India’s growth and a mission to

“develop and provide reliable power and related products and services at competitive prices, integrating multiple

energy sources with innovative and eco friendly technologies and contribute to society”.

NHPC LIMITED : NHPC Limited is a Schedule “A” Mini-Ratna Enterprise of the Government of India with an

authorized share capital of 15,000 crore and an investment base of more than 40,471 crores. NHPC was set up in 1975

and has now become the largest organization for hydro power development in India, with capabilities to undertake all

the activities from conceptualization to commissioning of Hydro Projects. The main objects of NHPC include, to plan,

promote and organize an integrated and efficient development of power in all its aspects through conventional and

non-conventional sources in India and abroad and also the transmission, distribution, trading and sale of power

generated at stations.

RURAL ELECTRIFICATION UNDER MINIMUM NEEDS PROGRAMME (MNP) : This was started in 5th Five Year

Plan with rural electrification as one of the components of the programme. Under this programme funds were

provided as Central assistance to the states in the form of partly grants and partly loans. Since the inception of the

MNP, the component that relates to rural electrification has been set off against the loan component of MNP. The areas

covered under the MNP for the purposes of rural electrification were remote, far flung and difficult villages with low

load potential. The scheme has been discontinued from 2004 onwards and has been subsequently merged with the new

scheme, Rajiv Gandhi Grameen Vidyutikaran Yojana.

KUTIR JOYTI SCHEME: This programme was launched in 1988-89 to provide single point light connections to

households of rural families below the poverty line including harijans and adivasi families. The allocation amongst the

states was based on the size of rural population below the poverty line and level of village electrification in the state,

with higher weightage given to states having larger population of rural poor and low electrification levels. This scheme

has been now merged with RGGVY.

RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA (RGGVY): This is Scheme of Rural Electricity

Infrastructure and Household Electrification has been introduced in April, 2005 for achieving the National Common

Minimum and associated sectors.

SATLUJ JAL VIDYUT NIGAM LTD : SJVN was incorporated on May 24, 1988 as a joint venture of the Government

of India (GoT) and the Government of Himachal Pradesh (GoHP) to plan, investigate, organize, execute, operate and

maintain Hydro Electric Power Projects in Satluj basin in the state of Himachal Pradesh and at any other place with

equity contribution of Gol and GoHP as 75:25, respectively. SJVN is “Schedule-A” Miniratna Category-I PSU under the

administrative control of Ministry of Power.

POWER GRID CORPORATION : Power Grid Corporation of India Limited (POWERGRID) was incorporated as

October 23, 1989 as a public limited company. POWERGRID is a notified Central Transmission Utility since 1998. The

Corporation, apart from providing transmission systems assigned to it for evacuation of power from central sector

projects, system strengthening scheme etc., is also responsible for establishment of Regional & National Power Grids

and operates (through POSOCO), a fully owned subsidiary of POWERGRID to facilitate transfer of power within and

across the regions with reliability, security and economy on commercial principles.

Recognising the contribution of the Company for overall development of power sector, it has been conferred with

‘Navratna’ status by Govt. of India in May 2008. In September, 2007 the Company entered the Capital Market thro

CHAPTER-11 | ENERGY


subsequently through Follow-on Public Offer issues in FY 2010 Presently, public holding in the Company is 42.11%

and the balance 57.89% is held by Govt. of India.

CENTRAL POWER RESEARCH INSTITUTE : The Central Power Research Institute (CPRI), a society registered

under the Societies Registration Act under the Ministry of Power, serves as national laboratory to carry out applied

research in electrical power engineering. It also functions as an independent national testing and certificate authority

for electrical equipment for ensuring their reliability.

The CPRI’s laboratories are accredited under the National Accreditation Board for Testing and Calibration of

Laboratories (NABL), which is the national body for accreditation of laboratories. The Research Institute has been

given the membership status in the group of Short Circuit Testing Liaison of Europe. CPRI laboratories are approved

for certain products like communication cables LT capacitors etc., by Underwriters Laboratories and Canadian

Standard Association. The Institute has been accredited by INTERTEKASTA, UK for testing of low voltage and

medium voltage equipment, power and power cables.

CRUDE OIL AND NATURAL GAS PRODUCTION : The trend in production of crude oil and natural gas during the

period 2011-12 to 2013-14 is given below,

2011-12 2012-13 2013-14

Crude Oil Production (MMT) 38.09 37.862 37.788

Natural Gas Production (BCM) 47.559 40.679 35.407

Growth of Crude Oil Production % 1.08 –0.60 –0.20

Growth of Natural Gas Production % –8.92 –14.47 –12.96

The crude oil production has remained at around 38 MMT during this period with marginal year to year variations.

Crude oil production for the year 2013-14 was 37.788 Million Metric Tonne (MMT) as against 37.862 MMT for the

previous year viz. 2012-13, showing a marginal decrease of about 0.20 percent.

IMPORTS OF CRUDE OIL : During the year 2013-14 the import of crude oil was 189,238 MMT valued at 8,64,875

crore. The import were 184,795 MMT, valued at 7,84,652 crore in 2012-13 i.e. an increase of about 2.40 percent in

quantity terms and 10.22 per cent in value terms. The average international crude oil price (Indian Basket) was US$

105.52 per barrel (bbl) in 2013-14 as compared to US$ 107.97/bbl. In 2012-13. Average price of International crude oil

(Indian Basket) during 2013-14 were lower by 2.27 per cent as compared to the previous year 2012-13.

ONGC VIDESH LIMITED : ONGC Videsh Limited (OVL), is engaged in exploration and production of oil and gas

outside India. OVL was incorporated as Hydrocarbons on March 5, 1965 to perform international exploration and

production business. The Company was rechristened as ONGC Videsh Limited from 1989.

OVL has drawn an ambitious Perspective Plan, 2030’ eyeing more than six fold increase in production from about 9

MMTOE during current fiscal to 60 MMTOE per annum by 2030.

OIL INDIA LIMITED : Oil India Limited (OIL), a Government of India enterprise, is engaged in the business of

exploration, production and transportation of crude oil and natural gas. On February 18, 1959, Oil India Private

Limited was incorported to expand and develop the newly discovered oil fields of Naharkatiya and Moran in Assam.

In 1961, it became a joint venture company between the Indian Government and Burmah Oil Company Limited UK

1981, OIL became a wholly-owned Government of India enterprise.

CHAPTER-11 | ENERGY


S.No. Refinery Location Name of the Company Name Plate Capacity

(MMRPA)

1 Guwahati PSU Refineries 1.00

2 Barauni 6.00

3 Koyali 13.70

4 Haldia 7.50

5 Mathura Indian Oil Corporation Ltd. 8.00

6 Digboi 0.65

7 Panipat 15.00

8 Bongaigaon 2.35

9 Mumbai Hindustan Petroleum 6.50

10 Visakhapatnam Corporation Limited 8.30

11 Mumbai Bharat Petroleum Corporation Ltd. 12.00

12 Kochi 9.50

13 Manali Chennai Petroleum 10.50

14 Nagapattinam Corporation Limited 1.00

15 Numaligarh Numaligarh Refinery Ltd. 3.00

16 Mangalore Manglore Refinery Petrochemical Ltd. 15.00

17 Tatipaka, AP Oil & Natural gas Corporation Total 0.66

18 Bina Bharat Oman Refinery Ltd. 120.66

19 Bathinda HPCL Mittal Energy Ltd. 6.00

Total 9.00

Private Sector Refineries 15.00

20 Jamnagar Reliance Industries Limited 33.00

21 SEZ, Jamnagar 27.00

22 Vadinar Essar Oil Limited 18.00

Total 78.00

Grand Total 213.66

HINDUSTAN PETROLEUM CORPORATION LIMITED : Hindustan Petroleum Corporation Limited (HPCL) is a

mega Public Sector Undertaking (PSU) with “Navratna” status. It has two refineries; one in Mumbai (west coast)

having a capacity of 6.5 MMTPA and the other in Visakhapatnam (east coast) with a capacity of 8.3 MMTPA.

BHARAT PETROLEUM CORPORATION LIMITED : Bharat Petroleum Corporation Limited (BPCL) is an integrated

oil company, in the downstream sector, engaged in refining of crude oil and marketing of petroleum products. It has

CHAPTER-11 | ENERGY


also diversified into production and marketing of petrochemical feedstock. BPCL has refineries at Mumbai and Kochi

with a combined refining capacity of 21.5 MMTPA.

COAL RESERVES : The coal reserves in India up to the depth of 1200 meters have been estimated by the Geological

Survey of India at 301.56 billion tonnes as on 1st April 2014. Coal deposits are chiefly located in Jharkhand, Odisha,

Chhattisgarh, West Bengal, Madhya Pradesh, Andhra Pradesh and Maharashtra.

NEYVELI LIGNITE CORPORATION LIMITED (NLC) : NLC was registered as a company on November 14, 1956.

The mining operations in Mine-I were formally inaugurated in 1957. Neyveli Lignite Corporation has conferred with

‘Navratna’ status since April 2011. NLC presently operates four open cast lignite mines viz., Mine I, Mine IA and Mine

II in Tamil Nadu and Barsingsar Mine in Rajasthan, aggregating to a total capacity of 30.6 MTPA and four thermal

power stations viz., TPS-I and TPS-I Expansion and TPS II with a capacity of 2740 MW located in Tamil Nadu and

Barsingsar TPS in Rajasthan.

JAWAHARLAL NEHRU NATIONAL SOLAR MISSION : India has planned harnessing solar energy potential in a

big way. In January 2010, as one of the mission under the National Action Plan on Climate Change, the Jawaharlal

Nehru National Solar Mission (JNNSM) was launched. Broadly, the Mission aims, to install 20 GW grid-connected and

2 GW off-grid solar power, 20 million sqm of solar thermal collector area; and 20 million rural households to have solar

home lighting by year. The Mission supports research, Development and innovation to achieve grid-parity in the

shortest time frame. The Mission will be implemented in three phases. The first phase is up to March 2013, the second

till March 2017 and the third phase will continue till March, 2022. Around 1000 MW of grid connected solar power

capacity has already been set up. The reverse bidding process adopted under the mission has led to a significant

reduction in solar power tariff within one and half year of its implementation.

INTERNATIONAL COOPERATION : During the year 2013-14, the Ministry of New and Renewable Energy took

various initiatives to promote cooperation with other countries in the field of renewable energy. Memoranda of

Understanding (MoUs)/Agreements/Letter of intent (LoT) etc were signed and Bilateral/Multinational Meeting/Joint

Working Group Meetings were convened and Participated by MNRE. The Ministry also gets support from various

international/ Multinational funding agencies, like World Bank, United Nations Development Programme (UNDP),

Asian Development Bank (ADB) and United Nations Industrial Development Organization (UNIDO) and Global

Environment Facility (GEF), who are providing project based assistance for renewable energy programmes in India.

CHAPTER-12 | ENVIRONMENT


CHAPTER TWELVE| ENVIRONMENT

THE Ministry of Environment, Forest and Climate Change (MoEFCC) is the nodal agency in the Central Government

for overseeing the implementation of India’s environment and forest policies and programmes relation to conservation

of the country’s natural resources including lakes and rivers, its biodiversity, forests and wildlife, ensuring the welfare

of animals and prevention and, abatement of pollution.

India is a party to five major international conventions related to Wild Life conservation, viz, Convention on

International Trade in Endangered Species of Wild Fauna and Flora (CITES), International Whaling Commission

(IWC), United Nations Educational, Scientific and Cultural Organisation-World Heritage Convention (UNESCO-

WHC) and the Convention on the Conservation of Migratory Species of Wild Animals (CMS).

MANGROVES : India has a total mangrove cover of 4,662.56 sq.km i.e. 0.14% of the country’s land area, 3% of the

global mangroves area and 8% of Asia’s mangroves. Mangroves are plants that survive high salinity tidal regimes,

strong wind velocity, high temperature and muddy anaerobic soil-a combination of conditions hostile for other plants.

The mangrove ecosystem constitute a symbiotic link or bridge between terrestrial and marine ecosystems. However,

not all coastal areas are suitable for mangrove plantation as it requires an appropriate mix of saline and freshwater,

and soft substrate like mudflats to enable it to grow and perpetuate.

CORAL REEFS : The Indian reef area is estimated to be 2,373.87 sq. km. The four major coral reef areas identified for

intensive conservation and management in the country are:

i) Gulf of Mannar,

ii) Gulf of Kachchh,

iii) Lakshadweep and

iv) Andaman and Nicobar Islands.

The emphasis is more on preventive aspects through monitoring and surveillance as the restoration work is both costly

and time consuming. The Ministry provides financial assistance to the state forest departments for all the four

identified coral reef areas for activities like monitoring, surveillance, education and awareness. Besides, the Ministry

also supports research and development activities with emphasis on targeted research on coral biodiversity, its

management and various aspects of pollution in these areas.

GREAT BARRIER REEF

The Great Barrier Reef is a site of remarkable variety and beauty on the north-east coast of Australia. It the world's most extensive stretch of coral reef and is probably the richest area in terms of faunal diversity in the world. Its great diversity reflects the maturity of an ecosystem which has evolved over millions of years on the north-east continental shelf of Australia. The site contains a huge diversity of species including over 1,500 species of fish, about 360 species of hard coral, 5,000 species of mollusc, and more than 175 species of bird, plus a great diversity of sponges, anemones, marine worms and crustaceans, among others. The reef system, extending to Papua New Guinea, the reef comprises some 2900 individual reefs of all sizes and shapes covering more than 20,000 km2, including 760 fringing reefs, which range in size from under 1ha to over 10,000 ha and vary in shape to provide the most spectacular marine scenery on Earth. There are approximately 600 continental islands including many with towering forests and freshwater streams, and some 300 coral cays and unvegetated sand cays. A rich variety of landscapes and seascapes, including rugged mountains with dense and diverse vegetation and adjacent fringing reefs, provide spectacular scenery. The form and structure of the individual reefs show great variety. Two main classes may be defined: platform or patch reefs, resulting from radial growth; and wall reefs, resulting from elongated growth, often in areas of strong water currents. There are also many fringing reefs where the reef growth is established on subtidal rock of the mainland coast or continental islands.



The site includes major feeding grounds for the endangered dugong and nesting grounds of world significance for two endangered species of marine turtle, the green and the loggerhead, as well as habitat for four other species of marine turtle; given the severe pressures being placed on these species elsewhere, the Great Barrier Reef may be their last secure stronghold. It is also an important breeding area for humpback and other whale species. A wide range of fleshy algae occurs, many of which are small and inconspicuous but which are highly productive and are heavily grazed by turtles, fish, molluscs and sea urchins. In addition, algae are an important component of reef building processes. 15 species of seagrass grow throughout the reef area forming over 3,000 km2 of seagrass meadows and providing an important food source for grazing animals, such as dugongs. The Great Barrier Reef, and in particular the northern sector, is important in the historic and contemporary culture of the Aboriginal and Torres Strait Islander groups of the coastal areas of north-east Australia. This contemporary use of and association with the Marine Park plays an important role in the maintenance of their cultures and there is a strong spiritual connection with the ocean and its inhabitants.

CBD, COP-11 and NBA (BIODIVERSITY)

CONVENTION ON BIOLOGICAL DIVERSITY : The Convention on Biological Diversity (CBD) is one of the key

agreements adopted during the Earth Summit held in Rio de Janeiro in 1992. The three objectives of the CBD are:

conservation of biological diversity, sustainable use of its components, and fair and equitable sharing of benefits

arising out of the use of genetic resources. Pursuant to the ratification of the CBD by India on 18 February 1994, several

steps were initiated to meet the commitments under the Convention, and to realize the opportunities offered by the

Convention. These efforts were aimed at bringing the legislative, administrative and policy regimes in tune with the

three-fold objectives of the CBD. India enacted the Biological Diversity Act in 2002 to give effect to the provisions of

this Convention. Under this Act, a National Biodiversity Authority (NBA) was set up in October, 2003 in Chennai. In

2000, a Cartagena Protocol on Biosafety (CPB) was adopted under the aegis of the CBD. The objective of CPB is to

ensure safe transfer, handling and use of living modified organisms resulting from modern biotechnology. India is a

party to the CBD as well as CPB.

NATIONAL BIODIVERSITY AUTHORITY : At the national level, National Biodiversity Authority (NBA) was

established by the Government of India in October, 2013 at Chennai (Tamil Nadu) under Section (8) of the Biological

Diversity Act. The State Biodiversity Boards (SBB) are to be established by the State Governments and Biodiversity

Management Committees (BMCs) to be constituted by the local bodies.

NBA is an autonomous, statutory and regulatory organization which is intended to implement the provisions of

Biological Diversity Act, 2002.

The main objectives of NBA are :

• To regulate access to biological resources of the country to conserve and sustainable use of biological diversity.

• To respect and protect the knowledge of local communities related to biodiversity

• To secure sharing of benefits with the local people as conservers of biological resources and holders of

knowledge and information relating to the use of biological resources.

• Conservation and development of area of importance from the view point of biological diversity by declaring

them as biological diversity heritage sites.

• Protection and rehabilitation of threatened species, involvement of institutions of state government in the broad

scheme of implementation of the Biological Diversity Act through constitution of committees.

BIOSAFETY - GEAC, CPB and COP-MOP

GENETIC ENGINEERING APPRAISAL COMMITTEE (GEAC) : The Ministry of Environment, Forests & Climate

Change (MoEFCC), under the Environment (Protection) Act, 1986 has notified the “Rules for the Manufacture, Use;

Import, Export and Storage of Hazardous Microorganisms/Genetically Engineered Organisms or Cells, 1989” (Rules,



1989). The rules also cover application of hazardous microoganisms which may not be genetically modified.

Hazardous microoganisms include those which are pathogenic to animals as well as plants.

The Genetic Engineering Appraisal Committee (GEAC), the apex body under the Rules, 1989 has the mandate to

approve large scale trials and environmental release of Genetically Modified Organisms (GMOs) and ensure that

research, development and testing of GMOs prior to environment release are conducted in a safe and scientific manner

through appropriate implementation of Rule 1989 and biosafety guidelines.

CARTAGENA BIO-SAFETY PROTOCOL (CPB) : The Cartagena Protocol on Biosafety (CPB) was negotiated under

the aegis of the Convention on Biological Diversity (CBD) and adopted on 29th January 2000. India is a party to the

Protocol. The Protocol has come into force from 11th September 2003. As of date 163 countries are Parties to the

Protocol. The main objective of the Protocol is to ensure safe transfer, handling and use of living modified organisms

resulting from modem biotechnology that may have adverse effect on the conservation and sustainable biological

diversity, taking into account risk to human health.

FOREST CONSERVATION : The Forest (Conservation) Act, 1980 came into effect from October 25,1980 which

provides for prior approval of the Central Government for diversion of forest lands for non-forestry purposes. In the

national interest and in the interest of posterity, this Act, therefore, regulates the diversion of forest lands to non-

forestry purposes. The objective of the Act is to regulate indiscriminate diversion of forest lands for non-forestry uses

and to maintain a balance between developmental needs of the country and the conservation of natural heritage. The

guidelines are issued under the Act from time to time, to simplify the procedures, to cut down delays and to make the

process transparent.

WILDLIFE CRIME CONTROL BUREAU : The Wildlife Crime Control Bureau (WCCB) was constituted as a statutory

body under the Wildlife (Protection) Act, 1972, on June 6, 2007 to combat wildlife crime in the country. The Bureau has

been envisaged as a multi-disciplinary body with officials from Police, Forest Departments and Customs. It became

operational in 2008. The Bureau has its headquarters at Delhi, five regional offices at Delhi, Kolkata, Mumbai, Chennai

and Jabalpur and three sub-regional offices at Guwahati, Amritsar and Kochi. WCCB has been tasked with the

following functions under Section 38 (Z) of the Wild Life Protection Act, 1972.

WILDLIFE INSTITUTE OF INDIA : Wildlife Institute of India (WIT) was established in 1986, as an autonomous

Institute of the Ministry. The Institute has emerged as a premier training and research institution in the field of wildlife

and protected area management in South and South East Asia. Its mandate is to generate quality formation and

knowledge products in wildlife science and mainstream it in capacity building programmes for various target groups

and provide advisory support to central and state governments.

CENTRAL ZOO AUTHORITY : The Central Zoo Authority (CZA) was established in 1992 under the provisions of the

Wildlife (Protection) Act, 1972 to oversee the functioning of zoos in the country with the view to enhancing their role in

conservation. CZA is a twelve member body. Minister of State Environment and Forests, Government of India is the

ex-officio Chairman of the Central Zoo Authority and Member Secretary, Central Zoo Authority is the Chief Executive

Officer of the Authority.

PROJECT ELEPHANT : Project Elephant (FE) was launched by the Government in 1991-92 as a centrally sponsored

scheme with the following objectives: to protect elephants, their habitat and corridors; to address issues of man-animal

conflict; welfare of domesticated elephants. Financial and technical support is being provided to major elephant,

bearing states in the country.

PROJECT TIGER

NATIONAL TIGER CONSERVATION AUTHORITY : The centrally sponsored scheme “Project Tiger” was

launched in April, 1972 with the objective “to ensure maintenance of a viable population of tigers in India for scientific,



economic, aesthetic, cultural and ecological values, and to preserve for all times, areas of biological importance as a

national heritage for Life benefit, education and enjoyment of the people’.

NATIONAL WETLAND CONSERVATION PROGRAMME : The National Wetland Conservation Programme

(NWCP) was initiated in 1987 with the following objectives to lay down policy guidelines for conservation and

management of wetlands in the country; to provide financial assistance for undertaking intensive conservation

measures in the identified wetlands; to monitor implementation of the programme; and to prepare an inventory of

Indian wetlands.

RAMSAR CONVENTION : Twenty-six sites have been designated as Ramsar sites in the country. Six more wetlands

are under process of being designated as Ramsar sites. India represented Wetlands International on the Board of

Directors and was elected as member of Supervisory Council of Wetlands International twice which is a partner

organization of the Ramsar Convention. India is also a partner to the Himalayan initiatives alongwith other Himalayan

countries. Indian delegation participated in Ramsar Convention COP-Il meeting held at Bucharest, Romania in 2012

and intervened in almost all 22 resolutions passed during the convention.

REGENERATION AND ECO-DEVELOPMENT

NATIONAL AFFORESTATION AND ECO-DEVELOPMENT BOARD (NAEB) : In order to promote afforestation,

tree planting, ecological restoration and eco-development activities in the country, the National Afforestation and Eco-

development Board (NAEB) was set up in August 1992. Special attention is also given by NAEB to the regeneration of

degraded forest areas and lands adjoining forest areas, national parks, sanctuaries and other protected areas as well as

the ecologically fragile areas like the Western Himalayas, Aravalis, Western Ghats, etc.

G.B. PANT INSTITUTE OF HIMALAYAN ENVIRONMENT AND DEVELOPMENT : G.B. Pant Institute of

Himalayan Environment and Development (GBPIHED) was established in August, 1988 by the Ministry of

Environment and Forests, as an autonomous institute, with a mandate of achieving sustainable development and

environmental conservation in the Indian Himalayan Region (IHR). The Institute executes its mandate through its

headquarters located at Kosi-Katarmal, Almora (Uttarakhand), and four regional units located at Kosi-Katarmal,

(Himachal Pradesh), Srinagar-Garhwal (Uttarakhand), Pangthang Itanagar (Arunachal Pradesh).

CENTRES OF EXCELLENCE : Enhancement of people’s awareness about environment requires capacity building at

institutional and individual levels for providing adequate support to the efforts in the fields of environment education,

research and training. To serve this objective, the Ministry launched the scheme— Centre of Excellence in 1983 to

promote institutions in priority areas of environmental sciences and management. Ten centres of excellence have so far

been established in different areas: Centre for Environment Education (CEE), Ahmedabad; CPR Environmental

Education Centre (CPREEC), Chennai; Centre for Ecological Sciences (CES), Indian Institute of Science (IISC),

Bengaluru; Centre of Mining Environment (CME), Indian School of Mines, Dhanbad; Salim Ali Centre for Ornithology

and Natural History (SACON), Coimbatore; Centre for Environment Management of Degraded Ecosystem (CEMDE)

University of Delhi, Delhi; Madras School of Economics (MSE), Chennai; Foundation for Revitalization of Local Health

Traditions (FRLHT), Bengaluru; The Tropical Botanic Garden and Research Institute (TBGRI), Thiruvanthapurm; and

Centre for Animals and Environment, CARTMAN, Bengaluru.

FELLOWSHIPS AND AWARDS

INDIRA GANDHI PARYAVARAN PURASKAR : In memory of late Prime Minister Smt. Indira Gandhi, the Ministry

of Environment and Forests, in the year 1987, instituted an award called the Indira Gandhi Paryavaran Puraskar

(IGPP) to give recognition to those having made or have the potential to make measurable and major impact in the

protection of environment. In the beginning, one cash prize of Rs. 1,00,000/- was awarded to either an individual or an

organization of India in recognition of their exceptional and outstanding contributions in the field of environment.

Presently, the award comprises two prizes of Rs. 5,00,000/- each under “Organization Category” and three prizes of



Rs. 5,00,000/-, Rs. 3,00,000/- and Rs. 2,00,000/- each under “Individual Category”. Along with the cash prize, each

awardee is given a Silver Lotus Trophy, scroll and Citation. The award is given annually and an advertisement inviting

nominations for IGPP is released every year on the 15th of July in national dailies with regional coverage.

INDIRA PRIYADARSHINI VRIKSHA MITRA AWARDS : The Indira Priyadarshini Vriksha Mitra (IPVM) Awards

were instituted in 1986 to recognize the pioneering and innovative contribution made by individuals and institutions

in the field of afforestation/wasteland development every year.

PITAMBER PANT NATIONAL ENVIRONMENT FELLOWSHIP : Pitamber Pant National Environment Fellowship

instituted in 1978 is awarded every year to encourage and recognize excellence in any branch of research related to the

environmental sciences.

B.P. PAL NATIONAL ENVIRONMENT FELLOWSHIP FOR BIODIVERSITY : B.P. Pal National Environment

Fellowship Award for Biodiversity was instituted during 1993 and is awarded annually with a view to further

develop, deepen and strengthen the expertise on biodiversity available in the country.

NATIONAL AWARDS FOR PREVENTION OF POLLUTION AND RAJIV GANDHI ENVIRONMENT AWARD FOR CLEAN TECHNOLOGY : The National Awards for Prevention of Pollution and Rajiv Gandhi

Environment Award for Clean Technology are given each year, in the identified categories of highly polluting

industries which have made a significant and measurable contribution towards development or use of clean

technologies, products or practices that prevent pollution and find innovative solution to environmental problems.

RAJIV GANDHI WILDLIFE CONSERVATION AWARD : The Rajiv Gandhi Wildlife Conservation Award is given

annually for significant contribution in the field of wildlife conservation which has made, or has the potential to make,

a major impact on the protection and conservation of wildlife in the country.

AMRITA DEVI BISHNOI WILDLIFE PROTECTION AWARD : The Amrita Devi Bishnoi Wildlife Protection Award

is given for significant contribution in the field of wildlife protection, which is recognised as having shown exemplary

courage or having done exemplary work for the protection of wildlife.

NATIONAL GREEN TRIBUNAL : The National Green Tribunal (NGT) Act, 2010 was brought into force in

October, 2010. It was established for the effective and expenditious disposal of cases relating to environmental

protection and conservation of forests and other natural resources including enforcement of any legal right relating

to environment and giving relief and compensation for damages to persons and property and for matters connected

therewith or incidental thereto. It is a specialized body equipped with the necessary expertise to handle

environmental disputes involving multi-disciplinary issues. The Tribunal shall not be bound by the procedure laid

down under the Code of Civil Procedure, 1908, but shall be guided by principles of natural justice. The Tribunal’s

dedicated jurisdiction in environmental matters shall provide speedy environmental justice and help reduce the

burden of litigation in the higher courts. Five places of sitting with the Principal Bench at New Delhi and Pune,

Kolkata, Bhopal and Chennai as zonal Benches have been notified. Delhi and Chennai Bench of the Tribunal have

been operationalised. In addition to the Chairperson, 3 judicial and 9 expert members are working in the Tribunal.

OZONE LAYER PROTECTION : Ozone, a tri-atomic molecule of oxygen is formed from oxygen naturally in the

upper levels of the earth’s atmosphere by high-energy Ultraviolet (UV) radiation from the sun. About 90 per cent of

ozone formed in this way lies between 10 and 50 kilometer above the earth’s surface, called the stratosphere. The

stratospheric ozone layer absorbs all the harmful UV-B radiation emanating from the sun. It protects plant and animal

life from UV-B radiation. The UV-B radiation has the potential to cause skin cancer, eye cataract, suppress body’s

immune system, decrease crop yield etc., which led to the adoption of the Vienna Convention for the Protection of the

Ozone Layer in 1985 an Protocol on Substances that Deplete the Ozone Layer in 1987.



CONSERVATION OF BIO-DIVERSITY: IN SITU AND EX SITU

IN SITU CONSERVATION : The conservation of a species is best done by protecting its habitat along with all the

other species that live in it in nature. This is known as in-situ conservation, which is conserving a species in its own

environment by creating national parks and wildlife sanctuaries. Biodiversity at all levels, as genetic species and as

intact ecosystems, can be best preserved in situ by setting aside an adequate representation of wilderness as protected

areas. These should consist of a network of National Parks and Wildlife Sanctuaries with each distinctive ecosystem

included in the network. Such a network would preserve the total diversity of life of a region.

In the past, national parks and sanctuaries in India were notified to preserve major wildlife species such as tigers, lions,

elephants and deer. The objective of these areas should be expanded to the preservation of relatively intact natural

ecosystems, where biological diversity, from microscope unicellular plants and animals to the giant trees and large

mammals, can all be preserved.

However, species cannot be protected individually as they are all interdependent—the whole ecosystem must be

protected. The biologist’s viewpoint deals with areas that are relatively species-rich, or those where rare, threatened or

endangered species are found, or those with endemic species. As rare endemic species are found only in a small area,

these easily become extinct due to human activity. Such areas must be given an added importance as their biodiversity

is a special feature of the region.

Animals such as elephants require different types of habitat to feed in during different seasons. They utilize open

grasslands after the rains when the young grass shoots are highly nutritious. As the grasses dry, the elephants move

into the forest to feed on foliage from the trees.

Wildlife, sanctuaries and national parks of India: There are 589 protected areas in India, of which 89 are national

parks and 500 are wildlife sanctuaries. They include a variety of ecosystems and habitats. Some have been created in

order to protect highly endangered species of wild plants and animals found nowhere else in the world.

The Great Himalayan National Park is the largest sanctuary in this ecosystem and is one of the last homes of the

beautiful snow leopard. The Dachigam sanctuary is the only place where the rare Hangul or Kashmir stag is found.

There are several sanctuaries in the terai region—the Kaziranga National Park is the most famous and is home to the

rhinoceros apart from elephant, gaur, wild boar, swamp deer and hog deer in large numbers, as well as tigers and

leopards. Its bird life is extremely rich and includes ducks, geese, pelicans and storks. The Manas sanctuary, in

addition to the above terai species, also includes the rare golden langur and the very rare pygmy hog. The florican is

found only in a few undisturbed grasslands in the terai sanctuaries.

Bharatpur is one of the most famous water-bird sanctuaries in the world. Thousands of ducks, geese, herons and other

wading birds can be seen here. This is the only home of the very rare Siberian crane, which migrates to India every

winter. During the last 20 years, the 30 or 40 Siberian cranes have dwindled to only 2 or 3. During 2002-2003, no cranes

were seen and it is possible that this beautiful bird will never again come to India.

In the Thar desert, wildlife is protected in the Desert National Park. Here, large numbers, of blackbuck, nilgai and

chinkara can be seen. The great Indian bustard lives in these arid lands.

The Great and the Little Rann of Kutch have been made into sanctuaries to protect the very rare wild ass, the flamingo,

the star tortoise and the desert fox. In Gujarat, the Gir Sanctuary protects the last population of the majestic Asiatic

lion. This thorn and deciduous forest is also the home of large herds of chital, sambar and nilgai.



The sanctuaries of the Western ghats and associated hill ranges protect some of the most diverse forest types in the

country. The few examples of highly-threatened species include the Malabar giant squirrel, the flying squirrel and a

variety of hill birds, several species of amphibians, reptiles and insects. These regions are also rich in highly endemic

plant life. Sanctuaries such as Bhimashankar, Koyana, Chandoli preserve this rich flora in Maharashtra;Bandipur,

Bhadra, Dandeli and Nagarhole in Karnataka; Eravikulam, Parambikulam, Periyar and the Silent Valley in Kerala.

In the Nilgiri hills, the forest sanctuaries protect some of the last pockets of the Indian elephant in South India.

Examples include Bandipur, Mudumalai, Wyanad and Bhadra. During the last 10 years, a large number of the great

tusker elephants of his region have been ruthlessly killed for their ivory. Now, very few of these magnificent animals

are left in these jungles.

Two important sanctuaries meant for preservation of coastal ecosystems are the Chilika lake in Orissa and Point

Calimere in Tamil Nadu. The Sunderbans protect the largest mangrove delta in India. The Marine National Park in

Gujarat protects shallow areas in the sea, islands, coral reefs and extensive mudflats.

ORISSA: OLIVE RIDLEY TURTLES

Every year at Gahrimatha, Rushikulya and the mouth of the Devi river on the Orissa coast, hundreds of

thousands of Olive Ridley turtles congregate on the beach, between December and April, for mass nesting—the

arribada. This was the largest nesting site for Olive Ridleys in the world. In 1999, by the end of March it was estimated

that around 200, 000 turtles had nested at the Gahirmatha beach. Marine biologists believe that only one out of every

1000 eggs actually matures into an adult.

There are severe threats to these nesting sites. Shrinking nesting sites, construction of roads and buildings close

to these rookeries, and other infrastructure development projects hamper nesting. Trawler fishing is another large

threat to the turtles. After its ‘discovery’ in 1974, the beach was notified as a sanctuary (the Bhitarkanika sanctuary)

and was closed for hunting. Recognising the threat to turtles from fishing by large trawlers, the Orissa Marine Fisheries

Regulation Act was passed in 1982. This Act prohibits trawling within 10 km of the coastline throughout the state and

makes it mandatory for all trawlers to use Turtle Excluder Devices (TEDs). In 2001, the State Government of Orissa

declared that a five-month period between January and May should constitute a no-fishing season for a distance of 20

km from the coastline.

Apart from these initiatives, ‘Operation Kachhapa’ is being coordinated by the Wildlife protection Society of

India, Delhi and Wildlife Society of Orissa with many local NGOs as partners. The Orissa Forest Department, WII,

Dehra Dun and the Coast Guard are also involved in the project.

EX SITU CONSERVATION : There are situations in which an endangered species is so close to extinction that unless

alternate methods are instituted, the species may be rapidly driven to extinction. This strategy is known as ex situ

conservation, that is, conserving the species outside its natural habitat in a carefully controlled situation such as a

botanical garden for plants, a zoological park for animals or within the care of humans where there is expertise to

multiply the species under artificially managed conditions. Finally, a successful breeding programme ensures that a

species is reintroduced into its original wild habitat. This requires rehabilitation of the degraded habitat and removal

of the other causes such as poaching, disturbances, or other artificial influences that have been the primary cause of

reducing the population of species.

Another form of preserving a plant is by preserving its germplasm in a gene bank so that it can be used if needed in

future. However, this is rather expensive.

When an animal is on the brink of extinction, it must be carefully bred so that in-breeding does not lead to the genetic

composition becoming weak. Breeding from the same stock can lead to poorly-adapted progeny or even an inability to

get enough offspring.



Modern breeding programmes are undertaken in zoos that provide for all the animal’s needs, including enclosures

that simulate their wild habitats. There may also be a need to assist breeding artificially. Thus, while most zoos are

meant to provide visitors with a visual experience of seeing a wild animal at close quarters and provide the visitors

with information about the species, a modern zoo has to go beyond these functions to include breeding of endangered

species as a conservation measure.

In India, successful ex situ conservation programmes have been carried out for all our three species of crocodiles; this has been highly successful. The most successful example is the Madras Crocodile Trust Bank, which has grown from 10 to 8,035 crocodiles and the crocodiles here lay two clutches of eggs a year, compared to one in the wild! Another recent success has been the breeding of the very rare pygmy hog in the Guwahati zoo.

SOME IMPORTANT FACTS :

• Biological diversity refers to the variation of life forms at three levels—genetic variability within a species, the variety of species within a community and the organisation of species in an ecosystem.

• Biological diversity provides a variety of environmental goods and services. These can be categorized as consumptive and productive use values, socio-cultural values, aesthetic values and option values.

• India is a bio-rich nation, it ranks among the top 15 countries that are exceptionally rich in species diversity, many of which are endemic to the country and found nowhere else in the world.

• Areas that are rich in species diversity are called ‘hotspots’ of diversity. India’s ‘hotspot’ are concentrated in three areas—the Andaman and Nicobar islands, forests of the Northeastern states and forests of the Western ghats.

• Threats to biodiversity include: habitat loss due to rapid urbanization and industrialization, poaching for wildlife for short-term economic gain, and finally conflicts arising from human-wildlife coexistence.

• In situ conservation refers to protecting species in their natural habitat by setting aside an adequate representation of wilderness as Protected Areas (PAs), consisting of a network of national parks and wildlife sanctuaries.

• These PAs must be integrated with each other, by establishing corridors between adjacent areas wherever possible so that wildlife can move between them. Ex situ conservation refers to protecting species away from their natural habitat, in conditions which can be closely controlled and monitored.

NOTE : DIFFERENCE BETWEEN NATIONAL PARKS AND WILD LIFE SANCTUARIES

• The boundaries of national parks are well marked, whereas the boundaries of wildlife sanctuaries are often not well marked. In India the areas under national parks are strictly reserved for the conservation and preservation of wildlife, with no scope for human activities.

• All human activities are completely banned in the area under the national parks, whereas in wildlife sanctuaries, some human activities like timber extraction, forestry and cultivation are allowed, provided they do not have direct adverse impact on the wildlife.

• In most countries, only national or federal government can constitute national parks, but in India, state governments have the power to constitute national parks.

• In fact, national parks can only be constituted or abolished through state legislation, whereas wild sanctuaries are created through an order of a competent authority, who can be the chief conservator of forests or a minister of a state. Thus, it is evident that national parks have greater degree of permanency than a wildlife sanctuary.

• In wildlife sanctuaries private ownership rights can continue as long as wildlife conservation is not adversely affected, but in the national parks there are no private ownership rights.

• Both can be formed out of reserved of protected forests.

Biosphere Reserve

• A Biosphere Reserve is an ecosystem with plants and animals of unusual scientific and natural interest. It is title given by UNESCO to help protect the sites. The plan is to promote management, research and education in ecosystem conservation. This includes the sustainable use of natural resources.

CHAPTER-13 | FINANCE


CHAPTER THIRTEEN| FINANCE

THE Ministry of Finance is responsible for administration of finances of the Government. It is concerned with all

economic and financial matters affecting the country as a whole including mobilisation of resources for development

and other purposes. It regulates expenditure of the Government including transfer of resources to the states. This

Ministry comprises five departments, namely, (i) Economic Affairs, (ii) Expenditure, (iii) Revenue, (iv) Disinvestment

and (v) Financial services.

DEPARTMENT OF ECONOMIC AFFAIRS

ECONOMIC GROWTH : As per the provisional estimates, released by the Central Statistics Office, the growth rate of

Gross-Domestic Product (GDP) at factor cost at constant (2004-05) prices is estimated at 4.7 percent in 2013-14, with

agriculture and allied sectors, industry sector and services sector growing at 4.7 per cent and 6.8 per cent respectively.

INDUSTRY : The Index of Industrial Production (IIP) based industrial growth during 2013-14 was (-)0.1 per cent

compared to 1.1 per cent growth achieved in the previous year. Out of the three broad sectors, while electricity sector

recorded the highest growth during 2013-14, the mining and the manufacturing sectors recorded negative growth

during this period. The electricity sector grew at 6.1 percent as compared to 4.0 per cent achieved during the same

period of the previous year. However, the mining and the manufacturing sectors declined by 0.6 percent and 0.8 per

cent during 2013-14 vis-a-vis (-) 2.3 percent growth recorded during the previous year respectively.

PRICES AND INFLATION : The average headline inflation measured in terms of Wholesale Price Index (WPI),

continued to decline in the financial year 2013-14 from 8.94 per cent in 2011-12 to 7.35 per cent in 2012-13 and further to

5.98 per cent in 2013-14. The decline in inflation was on account of fall in non-food inflation since the food- inflation

continued to show uptrend during this period.

WHAT IS INFLATION ?

Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service. The value of a dollar does not stay constant when there is inflation. The value of a dollar is observed in terms of purchasing power, which is the real, tangible goods that money can buy. When inflation goes up, there is a decline in the purchasing power of money. For example, if the inflation rate is 2% annually, then theoretically a $1 pack of gum will cost $1.02 in a year. After inflation, your dollar can't buy the same goods it could beforehand. There are several variations on inflation:

• Deflation is when the general level of prices is falling. This is the opposite of inflation.

• Hyperinflation is unusually rapid inflation. In extreme cases, this can lead to the breakdown of a nation's monetary system. One of the most notable examples of hyperinflation occurred in Germany in 1923, when prices rose 2,500% in one month!

• Stagflation is the combination of high unemployment and economic stagnation with inflation. This happened in industrialized countries during the 1970s, when a bad economy was combined with OPEC raising oil prices.

In recent years, most developed countries have attempted to sustain an inflation rate of 2-3%. CAUSES OF INFLATION : Economists wake up in the morning hoping for a chance to debate the causes of inflation. There is no one cause that's universally agreed upon, but at least two theories are generally accepted:

Demand-Pull Inflation - This theory can be summarized as "too much money chasing too few goods". In other

words, if demand is growing faster than supply, prices will increase. This usually occurs in growing economies.



Cost-Push Inflation - When companies' costs go up, they need to increase prices to maintain theirprofit margins. Increased costs can include things such as wages, taxes, or increased costs of imports. COSTS OF INFLATION : Almost everyone thinks inflation is evil, but it isn't necessarily so. Inflation affects different people in different ways. It also depends on whether inflation is anticipated or unanticipated. If the inflation rate corresponds to what the majority of people are expecting (anticipated inflation), then we can compensate and the cost isn't high. For example, banks can vary their interest rates and workers can negotiate contracts that include automatic wage hikes as the price level goes up. Problems arise when there is unanticipated inflation:

• Creditors lose and debtors gain if the lender does not anticipate inflation correctly. For those who borrow, this is similar to getting an interest-free loan.

• Uncertainty about what will happen next makes corporations and consumers less likely to spend. This hurts economic output in the long run.

• People living off a fixed-income, such as retirees, see a decline in their purchasing power and, consequently, their standard of living.

• The entire economy must absorb repricing costs ("menu costs") as price lists, labels, menus and more have to be updated.

• If the inflation rate is greater than that of other countries, domestic products become less competitive.

People like to complain about prices going up, but they often ignore the fact that wages should be rising as well. The question shouldn't be whether inflation is rising, but whether it's rising at a quicker pace than your wages. Finally, inflation is a sign that an economy is growing. In some situations, little inflation (or even deflation) can be just as bad as high inflation. The lack of inflation may be an indication that the economy is weakening. As you can see, it's not so easy to label inflation as either good or bad - it depends on the overall economy as well as your personal situation.

MONETARY TRENDS AND DEVELOPMENTS : The gradual monetary easing started by the Reserve Bank of India

with the dampening of inflationary pressures was halted with the large outflow of capital, particularly in debt segment

and consequent steep depreciation of Rupee. Reversing its easy stance announced in its Annual Monetary Policy

Statement made on May, 3, 2013, the RBI took a series of short term measures after the indication from the USA to

taper the quantitative easing triggered by the capital outflow and exchange rate volatility.

BALANCE OF PAYMENT (BOP) : After remaining at elevated levels in 2011-12 and 2012-13, current account deficit

(CAD) declined significantly in 2013-14 mainly on account of the success of the measures to contain non-essential

imports like gold. During 2013-14, merchandise exports (on BoP basis) increased by 3.9 per cent to US$318.6 billion in

2013-14 as against US$ 306.6 billion in 2012-13. Imports declined by 7.2 per cent to US$ 466.2 billion in 2013-14 as

against US$ 502.2 billion in 2012-13. The recovery in exports and moderation in imports led to a sharp improvement in

the trade deficit to US$ 147.6 billion (7.9 per cent of GDP) in 2013-14 from US$ 195.7 billion (10.5 per cent of GDP) in

2012-13. Net invisible receipts increased 7.2 per cent to US$ 115.2 billion in 2013-14 from US$ 107.5 billion in 2012-13.

Contraction in the trade deficit, coupled with a rise in net invisibles receipts, resulted in a reduction of the CAD to US$

32.4 billion (1.7 per cent of GDP) in 2013-14 from US$ 88.2 billion (4.7 per cent of GDP) in 2012-13. Net capital inflows,

however, declined to USS 47.9 billion (2.6 per cent of GDP) in 2013-14 from US$ 92.0 billion (4.9 per cent of GDP) in

corresponding period of 2012-13 owing to lower net portfolio inflows and net repayment of short-term debt. On BoP

basis, foreign exchange reserves increased by US$ 15.5 billion during 2013- 14 as compared to increase of US$ 3.8

billion in 2012-13.

BALANCE OF PAYMENTS

The Balance of Payments (BOP) is the method countries use to monitor all international monetary transactions at a

specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in



and out of a country. If a country has received money, this is known as a credit, and if a country has paid or given money, the transaction is counted as a debit. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case. Thus, the BOP can tell the observer if a country

has a deficit or a surplus and from which part of the economy the discrepancies are stemming.

EXCHANGE RATE OF RUPEE : During fiscal 2013-14, the monthly average exchange rate of rupee (RBI’s Reference

Rate) was in the range of 54.38-63.75 per US dollar. The daily exchange rate of the rupee breached the level of 68 rupee

per US dollar in August, 2013 68.36 rupee per US dollar on August 28, 2013. However it recovered to 60.10 per US

dollar on March 28, 2014 reflecting the impact of the steps taken by the Government and the RBI to moderate the

current account deficit and boost capital flows, and greater clarity on US Federal Reserve taper. The rupee depreciated

by 10.8 per cent to Rs. 61.01 per US dollar in March 2014 from Rs. 54.40 per US dollar in March 2013.

EXTERNAL DEBT : India’s external debt stock stood at US$ 440.6 billion at end- March, 2014 recording an increase of

US$ 31.2 billion over the level at end-March, 2013. The maturity profile of India’s external debt indicates dominance of

long-term borrowings. The rise in external debt during the period was due to long-term debt particularly NRI deposits.

A sharp increase in NRI deposits reflected the impact of fresh Foreign Currency Non-Resident (Banks) FCNR (B)

deposits mobilised under the swap scheme during September-November, 2013.

NATIONAL RURAL LIVELIHOODS MISSION (NRLM): Swarnajyanti Gram Swarozgar Yojana (SGSY) has been

restructured and implemented as the National Rural Livelihoods Mission (NRLM), since FY 2011-12. 24 States have

transited to NRLM after establishing dedicated Mission architec systems. The remaining four States are expected to

transit to NRLM during the current financial year. The total budget provision for NRLM is Rs. 4000 crore for 2013-14

while the total release as on 30th September, 2013 is Rs. 858.41 crore.

SWARNA JAYANTI SHAHARI ROZGAR YOJANA (SJSRY) : The SJSRY launched on 1st December, 1997, aims at

providing gainful employment to the urban unemployed and underemployed, by encouraging them to set up self-

employment ventures or creating wage employment opportunities. The annual budgetary provision for the SJSRY for

the year 2013-14 is Rs. 950.0 crore and Rs. 380.57 crore has been released up to 1st November, 2013. During 2013-14, as

on 31st October, 2013, a total of Rs. 4,42,850 people had benefited from this scheme.

NATIONAL HEALTH MISSION (NHM): The National Urban Health Mission (NUHM) was launched in 2013 as a

sub-mission of National Health Mission (NHM), with National Rural Health Mission (NRHM) being the other

Submission. Allocation of 20,000 crore has been made for National Health /Mission for rural and urban during 2013-

14.

MID-DAY MEAL (MDM): Some important programmes in the education sector viz, the Sarva Shiksha Abhiyan (SSA)

supported by the Mid-Day Meal Scheme (MDMS), intend to ensure provision of elementary education to all the

children in the 6-14 age group.

RASHTRIYA SWASTHYA BIMA YOJANA (RSBY): Under the Yojana, more than 3.71 BPL families are having the

RSBY active smart cards by April 2014. Apart from the BPL families, the coverage of RSBY has been extended to

various other categories of unorganized workers and it is the endeavour of the Government to extend RSBY to all

unorganized workers in a phased manner. The occupational groups such as sanitation workers, rickshaw pullers, rag

pickers, mine workers and auto/taxi drivers have been covered in June, 2013.

NATIONAL SMALL SAVINGS FUND : In order to account for all the monetary transactions under small savings

schemes of the Central Government under one umbrella, National Small Savings Fund’ (NSSF) was set up in the Public

Account of India w.e.f. 1st. April, 1999. The net accretions under the small savings schemes are invested in the special

securities of various States/Union Territories (with legislature)/Central Governments. The minimum obligation of

States to borrow from the National Small Savings Fund (NSSF) was brought down from 100 per cent to 50 percent of

net collections in 2012.



EXPANSION OF SCOPE OF RAJIV GANDHI EQUITY SAVINGS SCHEME (RGESS) : Pursuing the Union Budget

announcement of 2012-13, Government on 23rd November 2012 notified a new tax saving scheme called ‘Rajiv Gandhi

Equity Savings Scheme’ (RGESS), exclusively for the first time securities market. The Scheme was launched in

February, 2013 and is implemented through depositories. RGESS has been further liberalized in the Union Budget 20

13-14 to enable the first time investor to invest in listed mutual funds and equity for three successive years, instead of

the present provision of one year. The income limit applicable for RGESS beneficiaries has been raised from Rs. 10 lakh

to Rs. 12 lakh.

WORLD BANK : The World Bank is among the world’s leading development institutions with a mission to fight

poverty and improve living standards developing world by promoting sustainable development through loans,

guarantees, risk management products, and (non-ending) analytic and advisory services. The World Bank is one of the

United Nations’ specialized agencies. The World Bank concentrates its efforts on reaching the Millennium

Development Goals aimed at sustainable poverty reduction. India is a member of four institutions of the World Bank

Group viz., International Bank for Reconstruction and Development (IBRD), International Development Association

(IDA); International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MICA). India has been

accessing funds from the World Bank (mainly through IBRD and IDA) for various developmental projects.

SEVENTH CENTRAL PAY COMMISSION : The Seventh Central Pay Commission has been set up in February, 2014.

This Resolution sets out the composition and Terms of Reference of the Commission and also envisages that it will

submit recommendations within 18 months from the date of constitution of the Commission.

The Seventh Central Pay Commission comprises the following:

1. Chairman - Justice Shri Ashok Kumar Mathur

2. Member - Shri Vivek Rae

3. Member-Dr. Rathin Roy

4. Secretary-Smt. Meena Agarwal.

PROCUREMENT POLICY : A Public Procurement Cell (PPC) was set up in this Department in June, 2011 to take

follow up action on the Report of the Committee on Public Procurement (CoPP) and drafting of the Public

Procurement Bill and other related matters such as drafting of rules and setting up of a Central Public Procurement

Portal. The Cell was gradually strengthened and a Division called Procurement Policy Division (PPD) was created

under the overall supervision of OSD (PPD) with one Director, one Under Secretary, one Assistant Director and one

Assistant.

NATIONAL E-GOVERNANCE PLAN (NEGP) : The Government approved the National e-Governance Plan (NeGP),

comprising 27 Mission Mode Projects (MMPs) and 8 components, May 18, 2006. The Scheme envisions making all

Government services accessible to the common man in his locality through common service delivery outlets and

ensuring efficiency, transparency and reliability of such services at affordable cost. At present there are four

components operational under the Scheme :

(i) Common Service Centre (CSC)

(ii) State Wide Area Networks (SWAN)

(iii) State Data Centres (SDC)

(iv) Capacity Building

CONTROLLER GENERAL OF ACCOUNTS (CGA) : The Controller General of Accounts (CGA) under the

Department of Expenditure, is the principal accounts adviser to the Government of India and is responsible for

establishing and maintaining a technically sound management accounting system. Functions entrusted to the

Controller General of Accounts are as under:- to formulate the policy relating to the general principles, form and

procedure of accounting for the entire Central and State Governments; to formulate the policy relating to the general

principles, form and procedure of accounting for the entire Central and State Governments; to coordinate and oversee



the payment, receipts and accounting matters in the Central Civil LMS/Departments through the set up of the Civil

Accounts Organization.

CENTRAL PENSION ACCOUNTING OFFICE, NEW DELHI : The Central Pension Accounting Office (CPAO) was

established w.e.f. 1st January, 1990 for payment and accounting of Central (Civil) pensioners and pension to Freedom

Fighters etc. CPAO is an attached office under the organization of controller General of Accounts. It has been entrusted

with the responsibility of administering the scheme of payment of pension to Central, Government (Civil) Pensioners

through authorized Banks. Its core functions are: issue of Special Seal Authorities (SSAs) to Authorised Banks;

preparation of Budget for the Pension Grant and accounting thereof; audit of pension disbursing Banks; and as an

interim arrangement, payment of provisional pension to the pensioners/family pensioners covered under New

Pension Scheme as per the orders of Ministry of Finance.

DIRECT BENEFIT TRANSFER (DBT) : To bring a paradigm shift in the delivery of services to the citizens,

particularly common man and the under-privileged section of society of the country, the Government took a decision

to start the Direct benefit Transfer (DBT) Programme. This Programme envisages a switch from the present electronic

transfer of benefits to bank accounts of the beneficiary to transfer of benefits directly to Aadhar seeded bank accounts

of the beneficiaries.

NATIONAL INSTITUTE OF FINANCIAL MANAGEMENT : The National Institute of Financial Management

(NIFM) was set up in 1993 as a registered society after the Union Cabinet approved the proposal made by Ministry of

Finance, Government of India. It was envisaged a training institution for officers recruited by the Union Public Service

Commission (UPSC) through the annual Civil Services Examination and allocated to the various services responsible

for managing senior and top management posts dealing with accounts and finance in the Government of India. The

Institute pursues an aim to develop as a centre of excellence in the areas of Financial Management and related

disciplines, ‘not only in India but also in Asia.

CENTRAL SALES TAX (CST) : The entry 92A of List-I (Union List) empowers the Central Government to impose tax

on inter-State sale of goods. Further, Article 269(3) empowers the Parliament to formulate principles for determining

when a sale or purchase of goods takes place in the course of inter-State trade of commerce. Similar Constitution

empowers the Parliament to formulate principles for determining when the sale or purchase of goods takes place

outside a State or in the course of imports into or exports from India. Besides, Article 286 authorizes the Parliament to

place restrictions on the levy on sale or purchase of goods, declared by the Parliament by law to be goods of special

importance in the inter-State trade or commerce.

GOODS AND SERVICES TAX (GST) : The proposal to introduce a national level Goods and Services Tax (GST) by

April 1, 2010 was first mooted by the Finance Minister in the Budget Speech for the Financial Year 2006-07. Some of the

main recommendations of the Standing Committee on Finance on the subject include (a) inclusion of petrol and

petroleum products and alcoholic liquor within definition of GST, (b) dispute resolution among States and between

Union and the States to be done by Goods and Services Tax Council, (c) abolition of Entry Tax, (d) establishment of a

GST compensation Fund through a Constitutional Amendment, (e) distribution of the remaining proceeds of GST

amongst States and Union at the end of financial year, (f) viability of Modified Bank Model for settlement of proceeds

arising out of inter-State Trade and (g) establishment of GST monitoring cell etc.

MAJOR CHANGES MADE BY FINANCE ACT, 2013

RATES OF TAXATION : Basic exemption limit in the case of individual, Hindu undivided family (HUF), association

of persons, body of individuals and artificial juridical person has been retained at Rs. 2 lakhs. The rates for deduction

of income-tax’ at the financial year 2013-14 from certain incomes other than ‘salaries’ have been specified in Part II of

the First Schedule to the Act. The rates for deduction of income-tax at source during the financial year 2013-14 will

continiue same as those specified in Part II of the First Schedule to the Finance Act, 2012 except that in case of certain

payments made to a non-resident other than a company or a foreign company, in the nature of income by fees for



technical services, the rate shall be twenty-five percent. Also, the newly inserted section, 194LD provides for reduced

rate of 5 per cent of withholding tax as against the normal rate of 20 per cent on interest payable in respect of a rupee

denominated bond of an Indian company or a Government security, if the payment is made to a Foreign Institutional

Investor (FII) or a Qualified Foreign Investor (QFI).

WOMEN’S BANK - BHARATIYA MAHILA BANK LIMITED

With a view to promote gender equality and economic empowerment of women Government took a decision to set-up

India’s first Women’s Bank, to address the gender related aspects of financial access to all sections of women,

empowerment of women, and financial inclusion. To achieve economic empowerment, women need equal access to

economic institutions and control of assets. Since both the components are interrelated, control over assets is essential

to access finance and vice versa. Hence the first step to empowerment is to provide equal access to financial services to

women while addressing the problems of lack of collateral. This would help promote both asset ownership by women

(control over resources) and entrepreneurship which would increase employment opportunities for them. Government

has confused an initial capital of Rs. 1,000 crore in the Bharatiya Mahila Bank Limited. The Bank has been incorporated

and RBI has already issued a banking license to the Bank. The Bank has become functional after its inauguration on

19th November, 2013.

KISAN CREDIT CARD : The Kisan Credit Card (KCC) Scheme was introduced in 1998-99, as a innovative credit

delivery system aiming at adequate and timely credit support from the banking system to the farmers for their

cultivation needs including purchase of 3 inputs in a flexible, convenient and cost effective manner. The Scheme is

being implemented by all the District Central Cooperative Banks, Regional Rural Banks (RRBs) and Public Sector

Commercial Banks throughout the country. KCC is one of the most effective tools for delivering agriculture credit.

Banks have been advised to issue Kisan Credit Cards (KCC) to all eligible farmers. A new scheme for KCC has been

circulated by RBI and NABARD which provides for KCC as an ATM card which can be used at ATM/Point of sale

(POS) terminals. As on 31st March, 2014, 111 lakh KCCs issued by Public Sector Banks were eligible for conversion into

ATM cards, out of which 64.61 lath eligible KCCs have since been converted into ATM enabled KCC cards.

RURAL INFRASTRUCTURE DEVELOPMENT FUND (RIDF) : The Government of India established a fund to be

operationalised by NABARD in the Union Budget 1995-96 called the Rural Infrastructure Development Fund (RIDF),

which was set up within NABARD by way of deposits, from Scheduled Commercial Banks operating in the country

from the shortfall in their agricultural/priority sector/weaker sections lending.

EXPORT IMPORT BANK OF INDIA (EXIM BANK) : Exim Bank offers a comprehensive range of lending and

service/advisory programmes, aimed at aiding the globalisation efforts of Indian companies. This enables the Bank to

promote inclusion of a large cross section of Indian exporters, in the opportunities being thrown up by globalization.

During Financial year 2013-14, the Bank extended an aggregate of 24 Lines of Credit (LOCs) guaranteed by the

Government of India, to 18 countries, with credits amounting to US$ 1.77 billion. As on date, 173 LOCs to 62 countries,

with credits amounting to US$10.03 billion are guaranteed by the Government of India.

RURAL HOUSING FUND : Rural Housing Fund was set up in 2008-09 to enable primary lending institutions to

access funds for extending housing finance to targeted groups in rural areas at competitive rates.

SWAVALAMBAN SCHEME : The Government of India is very conscious of the need to fulfil the old age income

security needs of the working poor and is focused on encouraging and enabling them to join the NPS. To encourage

workers in the unorgnised sector to save voluntarily for their old age, an initiative called Swavalamban Scheme was

launched on 29th September, 2010. It is a co-contributory pension scheme whereby the Central Government would

contribute a sum of 1000 per annum.

The development of the insurance sector is necessary to support its continued economic transformation.



The Public Sector Insurance Companies operating in the sector are as follows:

1. Life Insurance Corporation

2. National Insurance Company Limited

3. Oriental Insurance Company Limited

4. United India Insurance Company Limited

5. New India Assurance Company Limited

6. General Insurance Corporation of India Limited

7. Agriculture Insurance Company of India Limited

LIFE INSURANCE CORPORATION OF INDIA (LIC) : UC of India was incorporated on 1st September, 1956 by

amalgamating 243 Companies by an Act called Insurance Act, 1956. LIC is governed by the Insurance Act, 1938. LIC

Act, 1956, LIC Regulations, 1956 and Insurance regulatory and Development Authority Act, 1999.

SOCIAL SECURITY SCHEME —AAM AADMI BIMA YOJANA (AABY)

For the benefit of the weaker sections of the society, Government of India has floated a highly subsidized insurance

scheme, Aam Aadmi Bima Yojana (AABY) which is administered through Life Insurance Corporation of India. Under

this Social Security Scheme Below Poverty Line (BPL) and marginally above poverty line citizens are covered under 48

identified occupations. The Scheme provides death cover of 30,000/- in case of natural death. In case of death or total

disability (including loss of 2 eyes/2limbs) due to accident, a sum of Rs. 37,500/- is payable to the

nominee/beneficiary. All these benefits are paid for a nominal ‘premium of Rs. 200.00 per member per annum, out of

which Rs. 100.00 is borne by Central Government through Social Security Fund maintained through LIC of India, and

the balance premium of 100.00 is borne by the member and/or Nodal Agency and/or Central/State Government

Department which acts as the Nodal Agency. In addition, there is an add-on benefit of Scholarship at the rate of Rs.

1200/- per annum per child for two children per family of the insured members studying from 9th to 12th standard

(including ITI courses).

DEPARTMENT OF DISINVESTMENT : The Statement of Industrial Policy of July 24, 1991 laid down the foundation

for disinvestment, of Central Public Sector Enterprises (CPSEs) in India. Accordingly, disinvestment started in the year

1991-92 with the sale of minority shareholding of CPSEs to selected financial institutions like LIC, GIC and UTI. Later,

in April 1993, Rangarajan Committee recommended that the percentage equity to be disinvested should generally be

under 49 percent for industries reserved for public sector.

CHAPTER-14 | CORPORATE AFFAIRS


CHAPTER FOURTEEN| CORPORATE AFFAIRS

THE corporate sector has played a significant role in the economic development of the country. There were about

29,357 registered companies at work in 1957, initial year of 2nd Five Year Plan and this number has increased to

800761 registered companies at work in March, 2013. This growth and development of corporate sector was

enabled by various policy reforms introduced in the country from time to time.

COMPANIES ACT, 2013 : The comprehensive revision of the existing Companies Act, 1956, keeping in view the

changes that have taken place in the national and international economic environment, was due for quite some

time. The new Act seeks to bring corporate governance and regulation practices in India at par with the best

global practices. The corporate sector has been given more flexibility in regulating their affairs, subject to full

disclosure and accountability of their actions, with minimum Government approvals. The Act provides more

opportunities for new entrepreneurs and enables wide application of Information Technology in the conduct of

affairs by corporates. The other salient features of this important piece of legislation include provisions with

regard to more accountability of audit; Corporate Social Responsibility, stricter action in case of fraud related

offences and production of interests of investors.

India`s new Companies Act 2013 (Companies Act) has introduced several new provisions which change the face

of Indian corporate business" Companies Act 2013 (Companies Act) has introduced several new provisions

which change the face of Indian corporate business. One of such new provisions is Corporate Social

Responsibility (CSR). The concept of CSR rests on the ideology of give and take. Companies take resources in the

form of raw materials, human resources etc from the society. By performing the task of CSR activities, the

companies are giving something back to the society.

Ministry of Corporate Affairs has recently notified Section 135 and Schedule VII of the Companies Act as well as

the provisions of the Companies (Corporate Social Responsibility Policy) Rules, 2014 (CRS Rules) which has

come into effect from 1 April 2014.

Applicability: Section 135 of the Companies Act provides the threshold limit for applicability of the CSR to a

Company i.e. (a) net worth of the company to be Rs 500 crore or more; (b) turnover of the company to be Rs 1000

crore or more; (c) net profit of the company to be Rs 5 crore or more. Further as per the CSR Rules, the provisions

of CSR are not only applicable to Indian companies, but also applicable to branch and project offices of a foreign

company in India.

CSR Committee and Policy: Every qualifying company requires spending of at least 2% of its average net profit for

the immediately preceding 3 financial years on CSR activities. Further, the qualifying company will be required

to constitute a committee (CSR Committee) of the Board of Directors (Board) consisting of 3 or more directors.

The CSR Committee shall formulate and recommend to the Board, a policy which shall indicate the activities to

be undertaken (CSR Policy); recommend the amount of expenditure to be incurred on the activities referred and

monitor the CSR Policy of the company. The Board shall take into account the recommendations made by the

CSR Committee and approve the CSR Policy of the company.

Definition of the term CSR: The term CSR has been defined under the CSR Rules which includes but is not limited

to:

• Projects or programs relating to activities specified in the Schedule; or

CHAPTER-14 | CORPORATE AFFAIRS


• Projects or programs relating to activities undertaken by the Board in pursuance of recommendations of the

CSR Committee as per the declared CSR policy subject to the condition that such policy covers subjects

enumerated in the Schedule.

INDIAN INSTITUTE OF CORPORATE AFFAIRS (IICA) : The Indian Institute of Corporate Affairs (IICA)

was registered as a society on 12th September, 2008 under the Societies Registration Act, 1860. It is an

autonomous institute under the aegis of the Ministry of Corporate Affairs. The IICA was established as a

think tank, action research service capacity-building institute to serve the Ministry, corporate entities and all

other stakeholders in a one-stop-shop mode, providing a platform for value-adding partnerships between

government and these stakeholders. The Ministry is committed to delivering opportunities for research,

education and advocacy while simultaneously creating a repository of data and knowledge for policy makers,

regulators as well as all other stakeholders related to the domain of corporate affairs. Set up as the premier

organization for cutting leadership in corporate regulation, governance and running sustainable businesses, the

IICA also aims to build capacity through a network of schools and centres.

INDIAN CORPORATE LAW SERVICE (ICLS) : Ministry of Corporate Affairs is the Cadre Controlling Authority Corporate Law service (ICLS). The erstwhile Indian Company Law Service was rechristened in November, 2008 as the Indian Corporate Law Service. The ICLS cadre is intended to provide human resources in corporate law making, to enforce corporate law efficiently including incorporation, regulation, investor protection and to implement corporate governance in the country. The ICLS is also envisaged to be an important watchdog in the working of corporate sector. MCA21 E-GOVERNANCE PROJECT : MCA launched its pioneering e-Governance initiative MCA2I in January 2007. The initiative has been successful in achieving its aim of providing speed and certainty in the delivery of MCA services to its stakeholders. ‘MCA21 adopted a service oriented approach in the design and delivery of government services, whereby stakeholders have easy and secure access to MCA services, through the infrastructure set up for the purpose, at any time and from any place and in a manner that best suits them. The system has brought a fine balance between stakeholder facilitation and control, through a blend of well-defined goals and performance metrics.

COMPETITION APPELLATE TRIBUNAL : Responding to the current trend of globalization and liberalization

of the economy which led to enhancing the competition not only from within the country but also outside the

country, it was felt that there is need to shift our focus from curbing monopolies to promoting competition. To

cope with the current economic developments at the international level and to prevent use of unfair and

restrictive trade practices in the new era of competition, the government decided to enact a new law for

promoting and sustaining competition in the Indian market.

The Competition Act, 2002, came into force from January 2003. The Competition Act, 2002, as amended, provides

for setting up of the Competition Commission of India (CCI), comprising a Chairperson and minimum of two

and maximum of six members. In addition, it also provides for establishment of the Competition Appellate

Tribunal comprising a Chairperson and two members to hear and dispose off appeals against the orders of the

Competition Commission of India and also to adjudicate on the claims of compensation that may arise from the

findings of that Commission. The Competition Appellate Tribunal was set up in 2009.

Competition Appellate Tribunal COMPAT is vested with following powers:

• To hear and dispose off appeals filed against any direction issued or decision made or order passed by

the Competition Commission of India established under the Competition Act, 2002.

• To adjudicate on claim for compensation that may arise from the findings of the Competition

Commission of India or the orders of the Appellate Tribunal in an appeal against any findings of the

Commission and pass orders for the recovery of compensation under that Act.

CHAPTER-15 | FOOD AND CIVIL SUPPLIES


CHAPTER FIFTEEN| FOOD AND CIVIL SUPPLIES

THE Department of Food and Public Distribution is responsible for the management of the food economy of the

nation. The vision of the Department is to ensure food security for citizens of the country. Towards this end, the

Department has adopted the following mission :

• Ensuring food security for citizens of the country

• Management of Public Distribution System (PDS) operation in the country through efficient procurement at

Minimum Support Price (MSP), storage and distribution of food grains (cereals)

• Ensuring availability of food grains, sugar and edible oils through appropriate policy instruments; including

maintenance of buffer stocks of food grains.

• Making food grains accessible at reasonable prices, especially to the weaker and vulnerable sections of society

NATIONAL FOOD SECURITY ACT

The Government notified the National Food Security Act, (NFSA) 2013 in September, 2013, with the objective to

provide for food and nutritional security in human life cycle, by ensuring access to adequate quantity of quality food at

affordable prices to live a life with dignity. The Act provides for coverage of upto 75% of the rural population and upto

50% of the urban population for receiving subsidized food grains under Targeted Public Distribution System (TPDS),

thus covering about two-thirds of the population.

OTHER WELFARE SCHEMES (OWS)

MID-DAY MEAL SCHEME : The Mid-Day Meal Scheme was launched on 15th August, 1995 by the Ministry of

Human Resource Development with a view to enhance enrolment, retention, attendance and simultaneously

improving nutritional levels among students in primary schools, in the country. By the year 1997-98, the Scheme was

introduced in all the blocks of the country. The Scheme presently covers students of Class 1-VIII of Government and

Government-aided schools, Education Guarantee Scheme/Alternative and Innovative Education Centres

(EGS/AIE).

The Department of Food and Public Distribution makes allocation of annual requirement of food grains under the

Scheme to the Department of School Education & Literacy, Ministry of Human Resource Development. Further

allocation of food grains to States/UTs is made by that Department. Food Corporation of India (FCI) releases food

grains to States/UTs at BPL rates as per allocation made by Department of School Education and Literacy.

WHEAT BASED NUTRITION PROGRAMME (WBNP) : This scheme is implemented by the Ministry of Women

& Child Development. The food grains allotted under this Scheme are utilized by the States/UTs under the Integrated

Child Development Scheme (ICDS) for providing nutritious/ energy food to children below 6 years of age and

expectant/lactating women.

ANNAPURNA SCHEME : The Ministry of Rural Development launched the scheme in 2000-01. Indigent senior

citizens of 65 years of age or above who are not getting pension under the National Old Age Pension Scheme

(NOAPS) are provided 10 kg of food grains per person per month free of cost under the scheme. From 2002-03, it has

been transferred to State Plan along with the National Social Assistance Programme comprising the National Old Age

Pension Scheme and the National Family Benefit Scheme. The implementation of the Scheme at the State level rests

with respective States / UTs.

EMERGENCY FEEDING PROGRAMME (EFP) : Emerging Feeding Programme, is a food based intervention in the

KBK districts of State of Odisha targeted towards old, infirm and destitute persons belonging to BPL households to

provide them food security in their & distress conditions. This programme was introduced in 1995-96 covering initial 5



KBK Districts of Odisha with 45,141 beneficiaries. The Scheme is now being implemented by Government of Odisha in

eight KBK Districts namely Bolangir, Kalahandi, Koraput, Malkangiri, Nawarangpur, Naupada, Rayagada and

Sonepur, covering around 2 lakh beneficiaries. Under it food grains (rice) at BPL rates are allocated to the State

Government by the Department of Food & Public Distribution.

RAJIV GANDHI SCHEME FOR EMPOWERMENT OF ADOLESCENT GIRLS (RGSEAG) – ‘SABLA’ : The

Ministry of Women and Child Development administers the scheme at the central level and State/UT Governments

implement the scheme. The SABLA Scheme was launched in 2010 by merging two schemes, namely, Nutrition

Programme for Adolescent Girls (NPAG) and Kishori Shakti Yojana (KSY) into a single scheme to be implemented

in 200 selected districts across the country. The Scheme aims at empowering adolescent girls of 11-18 years of age-

group by improving their nutritional and health status and upgrading various skills like home skills, life skills and

vocational skills. It also aims at equipping the girls on family welfare, health, hygiene, etc. and information and

guidance on existing public services along with aiming to mainstream out-of-school girls into formal or nonformal

education.

ETHANOL BLENDED PETROL PROGRAMME : Ethanol is an agro-based product, basically produced from the by-

product of the sugar industry, viz., molasses. In the years of surplus production of sugarcane, when the sugar prices

are depressed, the sugar industry is unable to pay cane price to the farmers. This is mainly due to surplus production

of sugar. The ethanol blended petrol programme, besides lowering pollution levels, is expected to provide another

outlet for ethanol use, thus enduring utilization of molasses produced as a by-product during mandatory ethanol

blending with petrol should be implemented across the country and procurement price of ethanol will be decided

between Oil Marketing Companies and suppliers of ethanol.

CONSUMERS AFFAIRS

ESSENTIAL COMMODITIES ACT, 1955 : The Essential Commodities Act, 1955 (EC Act) was enacted to ensure the

easy availability of essential commodities to consumers and to protect them from exploitation by unscrupulous

traders. The Act provides for the regulation and control of production, distribution and pricing of commodities which

are declared as essential for maintaining or increasing supplies or for securing their equitable distribution and

availability at fair prices. Exercising powers under the Act, various Ministries/Departments of the Central Government

and under the delegated powers, the State Governments/UT Administrations have issued Control Orders for

regulating production, distribution, pricing and other aspects of trading in respect of the commodities declared as

essential. The enforcement/ implementation of the provisions of the Essential Commodities Act, 1955 lies with the

State Governments and UT Administrations.

CONSUMER PRODUCTION : The Consumer Protection Act, 1986 (68 of 1986) was enacted to better protect the

interests of consumers by establishing a three-tier quasi-judicial consumer dispute redressal machinery, popularly

called Consumer Fora at the national, state and district levels for settlement of consumer disputes. The State of

Jammu & Kashmir has enacted its own legislation in this field. The Act also provides for a Central Consumer

Protection Council, which is an advisory body making recommendations to the Department of Consumer Affairs on

protection of Consumers’ rights. The Act provides for Consumer Protection Council at state and district level as well.

The National Consumer Disputes Redressal Commission, at the head of the three tier redressal machinery, is headed

by a President, who is a retired Judge of the Supreme Court.

PUBLICITY CAMPAIGN : ‘Jago Grahak Jago’—An Initiative Towards Consumer Education and Awareness

An enlightened consumer is an empowered consumer. An aware consumer not only protects himself from exploitation

but induces efficiency, transparency and accountability in the entire manufacturing and services Realising the

importance of consumer awareness, Government has accorded top priority to Consumer Education, Consumer

Protection and Consumer Awareness. India is a country, which has taken a lead in introducing progressive legislation

for consumer protection. The most important milestone in Consumer Movement in the country has been the



enactment of the Consumer Protection Act, 1986. The Act applies to all goods and services unless specifically

Central Government, in all sectors whether Private, Public or Co-operative. The slogan ‘Jago Grahak Jago’ has now

become a household name as a result of publicity campaign undertaken in the last 4 years.

CONSUMER COOPERATIVES : Consumer Cooperatives have been playing a role in the distribution of essential

consumer items at fair prices especially in the slum clusters in cities, remote villages as well as in inaccessible and hilly

areas. The objective of Consumer Cooperatives has been to eliminate the middleman and to provide daily needs to

consumers at reasonable prices. These cooperatives have received support from the Government, as they help to check

rise in prices of consumer goods. Consumer Cooperatives have a four tier structure comprising primary stores,

wholesale/central stores, State Consumer Cooperative Federations and the National Consumer Cooperative

Federation.

NATIONAL COOPERATIVE CONSUMERS FEDERATION OF INDIA LTD. (NCCF) : The National Consumer

Cooperative Federation was set up in October, 1965 and is administered under the Multi State Cooperative Societies

Act. The affairs of NCCF are managed by a Board of Directors, comprising both elected and nominated members as

per the provisions of the bye-laws of the NCCF. The commercial operations of NCCF are handled at the headquarters

in New Delhi and through its 26 branches/sub branches located in the state capitals and other important centres in the

country. The NCCF also runs three Industrial Units at Bhiwani (Haryana), Mohali, (Punjab) and Noida (U.P.).

BUREAU OF INDIAN STANDARDS (BIS) : The Bureau of Indian Standards was set up as a statutory organization

under the Bureau of Indian Standards Act, 1986, taking over the assets and liabilities of the Indian Standards

Institution (ISI) that came into existence in 1947. The Bureau has its headquarters in New Delhi. It has a network of 5

regional offices, 32 branch offices and 8 laboratories which act as effective link between BIS, government, industry and

consumers. The Bureau has made steady progress in various fields of its key activities namely Standards Formulation,

Production Certification, Management System Certification and Hallmarking.

MANDATE OF BIS AND ITS PERFORMANCE : The Bureau of Indian Standards, the national standards body of

India, is a statutory organization under the Bureau of Indian Standards Ct, 1986. Mandate of BIS is to satisfy the

customers’ needs for quality of goods and services. Objectives of BIS:

• Harmonious development of standardization, marking certification.

• To provide new thrust to standardization and quality control.

• To evolve a national strategy for according recognition integrating them with growth and development of

production and exports.

HALLMARKING : Hallmarking of gold jewellery was started by BIS in April, 2000 to provide third party assurance to

consumers on the purity of gold jewellery or its fineness. The scheme for hallmarking of silver Jewellery/artifacts was

launched in October, 2005. Under the Scheme a jeweller has to obtain license from BIS to get his jewellery hallmarked.

Assaying and Hallmarking (A&H) centres where purity of jewellery articles is assessed are recognized by BIS after

ensuring that the Centres have required infrastructure for assaying and hallmarking of gold and silver jewellery

articles.

NATIONAL TEST HOUSE : The National Test House (NTH), a subordinate office under the administrative control of

Department of Consumer Affairs, is a premier scientific institution of the country, established way back in 1912, under

the then Railway Board and since then it has grown into a laboratory of national importance in the field of testing,

evaluation and quality control of various engineering materials and finished products. It is actively involved in all

aspects of technology connected with industry, commerce, trade and standardization. It has played a pivotal role in the

development of indigenous industries and services as a vital link between industrial research and manufacture of

finished products under rigid quality control.



FOOD PROCESSING : The Ministry of Food Processing Industries was set up in July, 1988 to give an impetus for

development of food processing sector in the country. Subsequently this Ministry was made a Department and

brought under the Ministry of Agriculture in 1999.

SCHEME FOR INFRASTRUCTURE DEVELOPMENT

MEGA FOOD PARKS : The scheme provides for creation of state of the art infrastructural facilities for food

processing sector. The scheme envisages financial assistance in the form of grant-in-aid at 50 per cent of the project cost

excluding land component in general areas and at 75 per cent in North East region (NER) and difficult areas subject to

a maximum of Rs. 50 crore per project.

NATIONAL MISSION ON FOOD PROCESSING : The Ministry has launched a new Centrally Sponsored Scheme

namely National Mission on Food Processing during the 12th Plan to be implemented through state governments.

Some of the ongoing schemes of the Ministry have been subsumed in the NMEP in addition to the newly proposed

components. This will not only provide better outreach for the schemes of the Ministry but also allow the Ministry to

focus on policy issues relating to food processing sector. The tentative 12th Plan allocation for the scheme is kept at Rs.

850 crore.