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Month: April 2016

Bonds

Are all securities fixed income instruments? If NO, pl give some examples. Do securities in anyway depend on currency exchange rates? If YES, pl explain. Thanks

April 17, 2016
Fiscal Defict Calculation

How the fiscal deficit number in Table 2.6 page no. 44 (public finance) of the economic survey has been calculated? Can anyone kindly explain how the number is calculated ? Thanks.

April 17, 2016
Fiscal deficit

How the fiscal deficit number in Table 2.6 page no. 44 (public finance) of the economic survey has been calculated? Can anyone kindly explain how the number is calculated ? Thanks.

April 17, 2016
Net Neutrality Debate in India
source: Scroll.in

This is a follow up discussion on Net Neutrality. Read these two important articles to enhance your understanding:
- Net Neutrality & The Debate Around It
- RSTV | The Big Picture | Net Neutrality: Debate Rages On
Let’s understand the different stakeholders in the internet space

4 stakeholders –
1. Consumers (us)
2. TSPs & ISPs – Telecom Service Providers & Internet Service Providers
3. Over-the-top (OTT) service providers – Those who build websites, applications over the top of the internet layer
4. Government or the regulator
The Telecom Regulatory Authority of India (TRAI) is the independent regulator of the telecommunications business in India.

The recommendations made by the TRAI are not binding on the Central Government. However, the Central Government has to mandatorily ask for recommendations from TRAI with respect to need and timing of new service provider and terms and conditions of the licence to be granted to the service provider.

3 basic tenets of net neutrality
1. All websites or applications should be treated equally by TSPs
2. All applications should be allowed to be accessed at the same internet speed
3. All applications should be accessible for the same cost [The bone of contention with allowing FREE Basics!]
What are OTT services?

Essentially they refer to the online content. OTT service can be facilitated by the TSP or ISP itself (music app from Airtel) or can be issues by a third party (Saavn.com, gaana.com).

The creation of OTT applications has led to a wide-ranging conflict between companies that offer similar or overlapping services. Think of it this way – Airtel might offer you better browsing speeds because it wants you to use its music service – Wync but you happen to take the 3G pack from Airtel and use Saavn.com/ Gaana.com

Take the controversy over the use of Whatsapp/ Normal messaging (where bulk revenue goes to the company which was the ISP).

How is net neutrality regulated in other countries?

The US Federal Communications Commission (telecom regulator in the USA) released new internet rules in March 2015, which mainly disallow:
- Blocking,
- Throttling or slowing down, and
- Paid prioritisation of certain applications over others
UK still allows paid discrimination.

Coming back to TSPs/ ISPs & OTT service providers, what was the issue?

We touched this point above (briefly) that TSPs are at the helm of making and maintaining the infrastructure over which the OTT services operate.
1. They don’t get any share in the revenues of the OTT service providers
2. Certain websites or applications require higher bandwidth than others for which the TSPs need to build and upgrade network infrastructure. Customers fret when they are not able to enjoy a seamless experience
3. The case of common interests – VoIP vs. Call over Mobile network, SMS vs. Whatsapp!
The Telecom and Regulatory Authority of India (TRAI) released the Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016. These regulations prohibit Telecom Service Providers from charging different tariffs from consumers for accessing different services online.

What do TRAI’s 2016 Regulations say?

(i) no service provider is allowed to enter into any agreement or contract that would result in discriminatory tariffs being charged to a consumer on the basis of content (data services),

(ii) such tariffs will only be permitted in closed electronic communications networks, which are networks where data is neither received nor transmitted over the internet,

(iii) a service provider may reduce tariff for accessing or providing emergency services,

(iv) in case of contravention of these regulations, the service provider may have to pay Rs 50,000 per day of contravention, subject to a maximum of Rs 50 lakh, etc
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Sources: Ref1 |  Ref2 | Ref3 (PRS Blog - for basics)
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April 16, 2016
संपादकीय और विचार, 16 अप्रैल: बाबासाहेब अम्बेडकर, लोक अदालत और पल्माइरा की कहानी

आज के लिंक-

1. लोक अदालत : विवादों के निपटारे की एक वैकल्पिक व्यवस्था

लिंक- http://www.deshbandhu.co.in/newsdetail/13080/9/200#.VxHdQdR97IU

(लोक अदालत भारत में विवादों के निपटारे की एक वैकल्पिक व्यवस्था है। विधिक सेवा प्राधिकरण अधिनियम की धारा 19(5) के अनुसार लोक अदालत को अधिकारिता प्राप्त है। लोक अदालत के विषय में विस्तृत जानकारी आप उपरोक्त लिंक से प्राप्त कर सकते हैं)

2. डॉ. अम्बेडकर जीवन दर्शन

लिंक- http://pib.nic.in/newsite/hindifeature.aspx?relid=47181

(पीआइबी पर प्रकाशित इस लेख में आप बाबासाहेब अम्बेडकर के जीवन की कुछ बातों को जान सकेंगे. हालांकि उनके जीवन को जानने के लिए यह आलेख नाकाफ़ी है लेकिन फिर भी मूलभूत जानकारी के लिए इसे पढ़ा जाना चाहिए)

3. महज दो साल में ये शहर तबाह हो गया

लिंक- http://www.bbc.com/hindi/international/2016/04/160415_vert_cul_palmyra_ruins_cj

(यह कहानी सीरिया के शहर पल्माइरा की है, जो उजड़ चुका था, फिर भी उजाड़ दिया गया. जब इस्लामिक स्टेट ने पिछले साल पल्माइरा पर कब्ज़ा कर लिया, तो उन्होंने इस ऐतिहासिक शहर के खंडहरों को डायनामाइट से उड़ा दिया. इस बारे में आप बीबीसी पर प्रकाशित इस रिपोर्ट को पढ़िए.)

April 16, 2016
sri

please provide news in TELUGU if possible along with hindi.

April 15, 2016
हिंदी संपादकीय और विचार: 15 अप्रैल

आज के लिंक-

1. ‘सागरमाला’ राष्‍ट्रीय परिप्रेक्ष्‍य योजना प्रस्‍तुत की गई

लिंक- http://pib.nic.in/newsite/hindirelease.aspx?relid=47245

(सागरमाला सरकार का एक प्रमुख कार्यक्रम है जिसका उद्देश्‍य देश में बंदरगाहों की अगुवाई में विकास की गति तेज करना है. यह योजना चार रणनीतिक पहलुओं पर आधारित है, वे रणनीतियाँ कौन कौन सी हैं, इसके बारे में आप उपरोक्त लिंक पर क्लिक कर जान सकते हैं.)

2. ई-मंडी की पगडंडी

लिंक- http://hindi.business-standard.com/storypage.php?autono=117711

(सरकार द्वारा ई-मंडी की शुरुआत की गई है. नया एकीकृत इलेक्ट्रॉनिक मंच सीमित तरीके से शुरू हुआ है लेकिन फिर भी यह किसानों की तमाम समस्याओं को हल करेगा. देश के सभी 585 प्रमुख बाजारों को मार्च 2018 तक ई-प्लेटफार्म से जोडऩे की योजना है. उपरोक्त लिंक से इस बारे में और जानिये)

3. क्यों कोलार खदान के फिर खुलने से देश की जेब पर पड़ रहा बोझ कुछ कम हो सकता है

लिंक- http://satyagrah.scroll.in/article/100421/opening-of-kolar-mines-can-reduce-indias-import-bill

(सिंधु घाटी सभ्यता से लेकर ब्रिटिश हुकूमत और फिर आजाद भारत तक भरपूर सोना देती रही कोलार खदान को सरकार फिर शुरू करने वाली है. उपरोक्त लिंक द्वारा आप कोलार के बारे में कई महत्वपूर्ण तथ्य और जानकारी हासिल कर सकते हैं.)

April 15, 2016
श्रमेव जयते, वित्तीय समावेशन और अंत्योदय: विस्तृत आलेख श्रृंखला(भाग-3)

मित्रों,
विस्तृत आलेख श्रृंखला के इस भाग में आज आप सरकार की तीन योजनाओं के बारे में जानेंगे- श्रमेव जयते कार्यक्रम, जन धन से जन सुरक्षा और अंत्योदय योजना. उम्मीद है इस श्रृंखला के पिछले दो भाग आपने ज़रूर पढ़े होंगे. आज के अनुवाद पढ़ने के लिए आपको पिछली बार की तरह ही नीचे दिए गए लिंक पर जाना है और सीडी एक्सप्लेन(CD Explain) पर क्लिक करना है.

1. पंडित दीनदयाल उपाध्याय श्रमेव जयते कार्यक्रम

लिंक- https://www.civilsdaily.com/pandit-deendayal-upadhyay-shramev-jayate-karyakram/

2. जन धन से जन सुरक्षा तक- वित्तीय समावेशन और सुरक्षा की ओर

लिंक- https://www.civilsdaily.com/story/financial-inclusion-in-india-and-its-challenges/

3. दीनदयाल उपाध्याय अंत्योदय योजना

लिंक- https://www.civilsdaily.com/deen-dayal-upadhyaya-antyodaya-yojana/

इस श्रृंखला का पिछले भाग जिसमें हमने हेल्प, नीरांचल और नई पूंजीगत वस्तु नीति के बारे में बताया था, उन्हें पढ़ने के लिए नीचे दिए लिंक पर क्लिक कीजिये. हमारी कोशिश रहेगी कि प्रत्येक तीन दिनों के अंतराल पर इस श्रृंखला को आगे बढ़ाते रहें.

भाग- 2 https://www.civilsdaily.com/%E0%A4%B9%E0%A5%87%E0%A4%B2%E0%A5%8D%E0%A4%AA-%E0%A4%A8%E0%A5%80%E0%A4%B0%E0%A4%BE%E0%A4%82%E0%A4%9A%E0%A4%B2-%E0%A4%94%E0%A4%B0-%E0%A4%AA%E0%A5%82%E0%A4%82%E0%A4%9C%E0%A5%80%E0%A4%97%E0%A4%A4/

April 14, 2016
Maritime India Summit 2016: Key Takeaways
Maritime India Summit 2016 (MIS 2016) is a maiden flagship initiative of the Ministry of Shipping.

Maiden = First time ever. First time ever translates to a higher probability of it finding its way in the IAS Prelims this year.

Why do we say so? If you wrote the IAS prelims in 2014, you would remember the National Biodiversity Express initiative launched by GoI that year and how a few questions from E&B found their source in the released pamphlet. So, no harm in giving this a look, right?

Focus Area for intervention which are important for your review:
- Port Modernization
- New Port Development
- Inland Waterways
- Green Initiatives in Ports
Maritime Potential of Indian States

If you are loath to read through the commentary, make sure you go through this infographic (in desktop mode – click on the pic to enlarge) & make quick notes.

source: www.maritimeinvest.in

#1. Port Modernization

India has 12 Major Ports, administered by the Central Government, and around 200 notified Non-Major Ports, administered by the State Governments. In 2014-15, out of the 200 Non-Major Ports, 69 ports were reported to have handled cargo traffic.
- Kandla was the last major port built by India – 1950
- India plans to add 8 major ports to this list of 12. Source: ET
Fodder points –
1. The infrastructure sector, particularly the Maritime Sector, is expected to grow significantly with the increase in international and domestic trade volumes
2. Since about 95% of India’s trade by volume is via the maritime route (Source : NTDPC), there is a continuous need to develop India’s ports and trade related infrastructure to accelerate growth in the manufacturing industry and to aid the ‘Make in India’ initiative.
#2. New Port Development

Why is there a need you may ask?
1. Capacity Saturation – Ports such as JNPT, Paradip have limited capacity to expand and are saturated with traffic
2. Non-availability of Ports – There are few specific stretches along the coastline which do not have an operational port. In absence of the port at such locations, the cargo is forced to travel longer distances to use alternate ports
3. Strategic Locations – The southern tip of India is optimally located as it falls under the East-West trade route. However most of transshipment cargo from India is dependent on ports of Colombo and Singapore. Hence, we need to fulfill this need
Potential Projects? Greenfield major ports to be developed at
- Vadhavan (Maharashtra) – MOU was signed by JNPT. Read here.
- Sagar Island (West Bengal) – This island, also known as Gangasagar or Sagardwip, is a place of Hindu pilgrimage
- Paradip Satellite Port (Odhisha) – What is a satellite port?
- Cuddalore/Sirkazhi (Tamil Nadu)
- Machilipatnam/Vodarevu
Question: Find out the difference between Greenfield and Brownfield projects. A term often used in PPP parlance.

#3. Inland Waterways

India has an extensive network of inland waterways in the form of rivers, canals, backwaters and creeks. Of the total navigable length of 14,500 km, 5200 km of the river and 4000 km of canals can be used by mechanized crafts.

India has recognized 106 waterways of which 6 are declared as national waterways –

Source: Wiki

#4. Green Initiatives in Ports
- Solar and wind based power systems at all the Major Ports across the country
- What’s the plan? Solar energy capacity at 8 major ports + Wind energy capacity at 3 major ports
Key initiatives (Fodder points):
- The Ministry of Shipping has recently introduced an incentive scheme under which the Ministry will share up to 50% of the total project cost that promote the use of green energy
- Anti-fouling System Convention of International Maritime Organization has been incorporated in the Merchant Shipping Act, 1958
- Use of bio-diesel at Haldia Dock Complex
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Sources: http://www.maritimeinvest.in 
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If you have time and you want to venture out and see the other heads of developments, do go and visit the website, especially carved out for this summit.
April 14, 2016
National Agricultural Market: How is this a necessity for India?
Scope of discussion
- State of Indian Agriculture & renewed focus on increasing a farmer’s income – Facts
- What was wrong with APMCs? Mains
- Quick facts on NAM – Prelims
State of Indian Agriculture & renewed focus on increasing a farmer’s income

If we go back in time (aug 2015) and read this PIB release – National Agricultural Market – A Harbinger of Change, we would realise that government realised (yet again) the importance of agriculture in Indian economy.

While the Government has rolled out large number of programmes to improve yield levels on a sustainable basis, it recognises the need for creating a competitive market structure in the country that will generate marketing efficiency.

Question: Good time to go back in time and revise the programs launched to improve yield levels. Would you like to write them out for us in the comments?

The net result out of this concern this –

The Department of Agriculture & Cooperation formulated a Central Sector scheme for Promotion of National Agriculture Market through Agri-Tech Infrastructure Fund (ATIF) through provision of the common e-platform.

What was wrong with APMCs?

Here’s a crisp answer from Quora,

The APMC (Agricultural Produce Market Committees) is a relic of the past that forces the farmers to sell their produce only to middlemen approved by the government in authorized Mandis (markets). Thus, if you are a vegetable producer and I’m a supermarket, I cannot directly buy from you. Both of us need to go through a broker. This increases prices for the end buyer and unnecessarily adds redtape.
- An Agricultural Produce Market Committee is a marketing board established by state governments of India
- One main function of which is basically to provide a platform for farmers to sell their produce
The challenges posed by present day APMCs –
1. Fragmentation of State into multiple market areas, each administered by separate APMC
2. Separate licences for each mandi are required for trading in different market areas within a state. This means that we have limited the first point of sale for the farmer. He has to come to the local mandi – which could be both good and bad depending upon how it is governed
3. Licensing barriers leading to conditions of monopoly
4. Opaque process for price discovery
The need to unify the markets both at State and National level was therefore, clearly the requirement of time. Think of it as an e-commerce platform with a marketplace model and not an inventory one. Every farmer has his own webpage (or something to the tune of that).

Quick facts on NAM

National Agriculture Market is going to implemented by the Department of Agriculture & Cooperation through Small Farmers Agribusiness Consortium (SFAC).

NAM is not replacing the mandis. NAM is an online platform with a physical market or mandi at the backend enabling buyers situated even outside the state to participate in trading at the local level.

It seeks to leverage the physical infrastructure of mandis through an online trading portal, enabling buyers situated even outside the state to participate in trading at the local level.

source: Financialexpress.com

NAM is currently being launched in 21 mandis and it will offer trade in –
- chana,
- castor seed,
- paddy,
- wheat,
- maize,
- onion,
- mustard and tamarind
Cons:
1. Fruits and vegetables, where there often are prices fluctuations, are yet to be included in the NAM platform
2. Country’s two biggest mandis—Azadpur (Delhi) and Vashi (Mumbai)—have not yet agreed to come on board
3. What about interstate taxes and levies? NAM does not say anything on that!
Questions:
1. How will NAM function and what are the benefits that it would bring?
2. What needs to be done on ground to make sure that NAM is successful?
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Source: Ref1 | Ref2 | Ref3
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April 14, 2016