RBI cuts repo rate by 25 bps in 4th Bi-monthly Monetary Policy Statement

The Reserve Bank of India (RBI) in its fourth bi-monthly monetary policy review for year 2016-17 has cut the repo rate by 25 basis points to 6.25%. This monetary policy decision was taken by the newly constituted Monetary Policy Committee (MPC). This was also Urjit Patel’s maiden monetary policy announcement as RBI Governor. All the six members of MPC unanimously decided to cut key policy rate with the aim of achieving a midterm inflation target of 4% within a band of plus or minus 2%. With this, RBI moved away from tradition of RBI governor having the final say on monetary policy decisions.

Policy Rates

Repo rate under the liquidity adjustment facility (LAF): Reduced by 0.25 basis points to 6.25 percent.

Reverse repo rate under the LAF: It was adjusted to 5.75 per cent. Marginal standing facility (MSF) and Bank Rate: It was adjusted to 6.75 per cent. Reserve Ratios Cash Reserve Ratio (CRR) of scheduled banks: Unchanged at 4.0 per cent of net demand and time liability (NDTL). Statutory Liquidity Ratio (SLR):20.75 per cent.

Aadhaar card must for LPG subsidy after November 2016

The Union Government has made Aadhaar card mandatory for availing cooking gas (LPG) subsidies after November 2016. In this regard, the Union Petroleum Ministry has asked Oil marketing companies (OMCs) to facilitate enrollments of Aadhaar of the consumers to avail the subsidy. Currently, the government gives 12 LPG cylinders at subsidised rates per household in a year. The subsidy on every LPG cylinder is transferred directly into bank accounts of individuals who then buy the cooking fuel at market rates.

Why there is need of Compulsory Aadhar?

The LPG subsidy is an expenditure incurred from Consolidated Fund of India. The use of Aadhaar as identifier for delivery of government services/subsidies/ benefits will simplifies the delivery processes of government. It will also bring in transparency and efficiency in the delivery processes by plugging leakages and enable beneficiaries to get their entitlements from Government directly to them without any middlemen.

About Aadhaar 

Aadhaar is a 12-digit unique number which acts as a proof of identity and address anywhere in the country. It is considered as the world’s largest national identification project. Its objective is to collect the biometric and demographic data of residents, store them in a centralised database. The unique number is issued by the Unique Identification Authority of India (UIDAI).

Union Government launches Indian Bridge Management System

The Union Ministry of Road Transport and Highways has launched the Indian Bridge Management System (IBMS). It was launched by Union Minister of Road Transport and Highways Nitin Gadkari in New Delhi as a major step towards ensuring safety of bridges in the country.

Key Facts

IBMS is being developed to create an inventory of all bridges in country and rate structural condition of the bridges. The rating will help for their timely repair and carrying rehabilitation work based on the criticality of the structure. IBMS is the largest platform in the world owned by a single owner, with database that could exceed one lakh fifty thousand bridge structure.

How it will work?

Each bridge will be assigned a unique identification number or National Identity Number (NIN) based on the state, RTO zone or located on National Highway, State Highway. Bridge Location Number (BLN) will be also assigned to each bridge based on the precise location of the bridge in terms of latitude-longitude is collected through GPS. Thereafter, Bridge Classification Number (BCN) will be assigned to the bridge structure based on the different engineering characteristics. Each bridge will be assigned a Structural Rating Number (SRN) based on allocated numbers which will be used for structural rating of bridge structures on a scale of 0 to 9. The rating will take in consideration of each component of the bridge structure like integral and non-integral deck, substructure, superstructure, structural evaluation, bank and channel, deck geometry, waterway efficiency, vertical clearance, etc. In addition Socio-Economic Bridge Rating Number will be also assigned to the bridges. It will decide importance of bridge in relation to its contribution to daily socio-economic activity of the area in its vicinity. Based on this inventory of various numbers, IBMS will analyse data and identify bridges that need attention. Further physical inspection will be carried out to improve the operational availability of the structure, enhance its life and prioritize repair and rehabilitation work

India, Singapore sign three agreements

India and Singapore have signed three agreements (MoUs) in the fields of skill development and IPR to boost bilateral relations between them. These agreements were signed in New Delhi during Singapore Prime Minister Lee Hsien Loong’s official state visit to India. Signed MoUs are MoU in the field of Industrial Property Cooperation: It was signed between Department of Industrial Policy & Promotion (DIPP) and Intellectual Property Office (IPO), Singapore MoU on collaboration in the field of Technical and Vocational Education and Training: It was National Skill Development Corporation (NSDC) and ITEES Singapore. MoU on collaboration in the field of Technical and Vocational Education and Training: It was signed between Government of Assam and ITEES Singapore. Besides, delegation-level talks headed by Prime Minister Narendra Modi and Singapore Premier Lee Hsien Loong were also held in New Delhi. Key Highlights of delegation-level talks India and Singapore decided to strengthen cooperation in countering threats of rising terrorism. India seeks to enhance cooperation with Singapore in key sectors including trade and investment. Highlighted importance of Defence and security cooperation as the key pillar of strategic partnership between India and Singapore. Raised concern over rising tide of terrorism, especially cross-border terrorism and the rise of radicalisation as a grave challenges to our security. India agreed to expedite the second review of Comprehensive Economic Cooperation Agreement (CECA).

Reliance, Dassault Aviation ink deal to set up joint venture

Anil Ambani led Reliance Group and French aerospace giant Dassault Aviation have signed deal to set up a joint venture called Dassault Reliance Aerospace. The Dassault Reliance Aerospace will execute offsets for the recently concluded India-France deal for 36 Rafale fighter jets. It will be the largest offset contract to be executed by any defence company in India. The contract value is estimated up to Rs. 30,000 crore.

Key Facts

The proposed strategic partnership between Dassault and Reliance will also focus on promoting research and development (R&D) projects under the IDDM program. IDDM stands for Indigenously Designed, Developed and Manufactured. It is programme on the lines with the new provision introduced in Defence Procurement Procedure (DPP) 2016. The JV will focus on aero structures, engines and electronics and intends to infrastructure and supply chain in India for the aerospace sector. 

Background 

In September 2016, India and France had signed an Inter-Governmental Agreement (IGA) for 36 Rafale multi-role jets in fly-away condition worth €7.87 billion (about Rs. 59,000 crore). The deal has a 50% offset clause to be executed by Dassault Aviation and its partners in India. Through the offsets, government seeks to bring in much needed expertise to build the domestic defence and aerospace industry

Jharkhand becomes first state to implement DBT in Kerosene

Jharkhand has become the first state in the country to implement Direct Benefit Transfer (DBT) in Kerosene Scheme. The scheme is being implemented in four identified districts of the state from 1st of October 2017. These districts are Chatra, Hazaribagh, Khunti and Jamtara.

About Direct Benefit Transfer in Kerosene (DBTK) scheme

Under the DBTK scheme, PDS kerosene will be sold at non-subsidised price and the subsidy will be directly transferred to consumers directly into their bank accounts. This initiative was launched by Union Petroleum and Natural Gas Ministry on the lines of a similar DBT programme for LPG subsidy. It aims at rationalising subsidy based on the approach to cut subsidy leakages but not the subsidy. It will give priority to eliminate subsidized Kerosene from supply chain for better targeting of beneficiaries. It also seeks to eliminate pilferage and black-marketing and cut down adulteration of the Kerosene, a cheap cooking and lighting fuel with diesel.

Urban areas of Gujarat, Andhra Pradesh declared open defecation free

The Union Urban Development Ministry has declared urban areas of Gujarat, Andhra Pradesh open defecation free (ODF). These are the first states to become open defecation free in urban areas. It was announced on the occasion of second anniversary of the Swachh Bharat Mission and 147th birth anniversary of Mahatma Gandhi observed on October 2, 2016.

Key Facts

In all, 180 and 110 cities and towns in Gujarat and Andhra Pradesh respectively were declared ODF by their chief ministers. So far, total of 405 out of the 4,041 cities and towns across India have claimed to have become open defecation free. The Union Government has set ambitious target of making 334 more cities open defecation free by March 2017. In rural India, Himachal Pradesh, Sikkim and Kerala have achieved more than 90% of toilet construction in households. But Bihar, Odisha and Jammu and Kashmir are still trailing with fewer than 30% of households with toilets in rural areas.

What is Open defecation?

Open defecation means people defecate in open spaces such as fields, bushes, forests, open bodies of water rather than using the toilet. Hazards of Open Defecation: It is important factor in causing various diseases like intestinal worm infections, diarrhoea, polio, hepatitis etc. Prevention: Creating awareness about adverse impact of open defecation on health, changing behavioural habit of people, building of community toilets etc.

About Swachh Bharat Mission

The Swachh Bharat Mission is the pet project of NDA Government led by Prime Minister Narendra Modi. It was launched on 2 October 2014 to make India clean and open defecation free by 2019 to mark Mahatma Gandhi’s 150th birth anniversary. The current cleanliness drive aims to end the wide-spread practice of open defecation, build more toilets and improve waste management.