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Revising the most important facets of reforms proposed by the Bibek Debroy committee & highlighting the pain points of Indian railways –

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#1. The process of accounting in Indian Railways is “very complicated”. “It is impossible to figure out what the rate of return on a project is”

The financial statements of Indian Railways need to be re-drawn, consistent with principles and norms nationally and internationally accepted.

#2. Streamline recruitment & HR processes

Remove the multiplicity of channels of recruitment and consolidate the process. At present there are 8 organized Group ‘A’ services in Indian Railways. Deployment to these services is by direct recruitment from UPSC (Civil Service and the Engineering examinations) and also by promotion of Group ‘B’ officers of the department.

The eight services can be broadly categorized in two bigger groupings viz. technical and non-technical services.

#3. Indian Railways should focus on core activities to efficiently compete with the private sector

It should distance itself from non-core activities, such as running a police force, schools, hospitals and production and construction units.

#4. Deploy an independent regulator

Shift regulatory responsibility from the government to an independent regulator as the private sector will only come in if there is fair and open access to infrastructure.

The report recommends setting up a Railway Regulatory Authority of India (RRAI) statutorily, with an independent budget, so that it is truly independent of the Ministry of Railways.

#5. Merge Railway budget with Central government budget

“End gross budgetary support, end this system of paying dividends and therefore you effectively end the railway budget. You not only end the railway budget, you eventually also end the Ministry of Railways and integrate it into a Ministry of Transport.”

Now that’s quite ambitious!

Source: ET

Want to read more?

• Ministry of Railways: Important Updates
• Dedicated Freight Corridors | The Future of railways
• Railway Budget 2016-17: Reorganize, Restructure & Rejuvenate

• Government-constituted expert committee to examine the Possibility of Replacing Multiple Prior Permissions with Pre-Existing Regulatory Mechanism had submitted its recommendations
• The 11 member committee was headed by Ajay Shankar, Former Secretary of Department of Industrial Policy and Promotion (DIPP)
• The expert committee was constituted by DIPP in April 2015

It was tasked to:

1. Examine the possibility of replacing multiple prior permissions with a pre-existing regulatory mechanism
2. Recommend a framework of the proposed regulatory mechanism and draft proposed legislation
3. Identify safeguards for replacing the system of prior permission and integrating them in the proposed regulatory mechanism

Recommendations:

• Introduction of credible third-party certification in most areas of regulation to cut down on multiple permissions needed by investors
• Adopting global best practices for emission norms in order to promote ease of doing business in the country
• Need for a standing institutional mechanism within the government for an independent regulatory impact assessment

For start-ups:

• Steps like Greenfield development and earmarking of mixed land use redevelopment should be undertaken
• Start-ups must be exempted from the requirement of seeking building plan approvals would give a boost to the ecosystem
• Any inspection of a start-up in cases of actionable complaints should be done only with the permission of an officer at a sufficiently higher level

Environmental Issues:

• Ministries of environmentally sensitive sectors should join with the Ministry of Environment and Forests to prepare a 20 year perspective geographical plan
• This plan must indicate preferred locations in prioritised categories for their anticipated projects in order to minimise the negative impact of environment

Maritime India Summit 2016 April
general outline of proposed development plan.

A) Digital India
●Online booking for passenger facilities
●Maritime Payment Gateway
●IT solutions for online survey of inland waters
● 3D movies about maritime activities.
●CCTV surveillance
● Coastal communication network (mobile operators for data voice over package to port operators)

2) Connecting India
●Ferry services
● Rowing services
● Hovercraft
● Amphibians bus
● Sea Plane
● Port operators

3)Incredible India
●Marina area development
●Marine Park
● Dolphin Park
● Floting hotels
● Cruise Services
●Water sports
● Island development

4) Skill India
● Marine University
● Water sports management
●Beach Management school
●Sand art school

5) Nirmal Sagar( Total Sanitation)–
● Coastal cleaning teachings
● Innovative and environment friendly techniques for clean beaches

6) Green Energy
● Developing Solar, wind and other unconventional energy terminals and beaches.

7) Capacity Building
●ISO certificates
● Carbon credit consultants
●ADB/ MMB recruitment.

आज के लिंक-

1. देश की सेहत की जांच-पड़ताल

लिंक- http://hindi.business-standard.com/storypage.php?autono=117823

(बीते एक दशक में स्वास्थ्य संकेतकों के मामले में देश की स्थिति में काफी सुधार हुआ है लेकिन अन्य एशियाई मुल्कों की तुलना में हम अभी भी पीछे हैं. उपरोक्त लिंक पर आप जानेंगे कि दशकीय राष्ट्रीय परिवार स्वास्थ्य सर्वेक्षण, जिसे भारत सरकार की ओर से मुंबई के अंतरराष्ट्रीय जनसंख्या विज्ञान संस्थान ने कराया, में क्या कहा गया है.)

2. भारत द्वारा सेशेल्‍स में एक वेव राइडर बोया की तैनाती

लिंक- http://pib.nic.in/newsite/hindirelease.aspx?relid=47277

(हिन्द महासागर देशों के लिए महासागर सूचना प्रणाली के लिए भारतीय राष्ट्रीय केंद्र हैदराबाद ने एकीकृत महासागर सूचना प्रणाली के एक हिस्से के रूप में फ्रीगेट द्वीप सेशेल्स में 27 नोटिकल मील दूर मछली पकड़ने के बंदरगाह पर एक वेव राइडर बोया सफलतापूर्वक तैनात किया है. इस बारे में उपरोक्त लिंक से जानकारी प्राप्त की जा सकती)

3. अच्छे मानसून के कयास ही काफी नहीं

लिंक- http://www.livehindustan.com/news/guestcolumn/article1-drought-land-water–526722.html

(देश के 91 बड़े जलाशयों का स्तर खतरनाक हद तक नीचे आ चुका है. केंद्रीय जल आयोग की ताजा रिपोर्ट के अनुसार, इन जलाशयों में क्षमता का मात्र 23 प्रतिशत पानी बचा है, जो विगत दस वर्ष के औसत (77 फीसदी) का एक तिहाई भी नहीं है. सूखे के बावजूद पिछले साल इन जलाशयों में 67 प्रतिशत जल था.)

• Aimed to review the 2013 Company Law, the Tapan Ray panel proposed over 2000 suggestions and recommendations
• Recommendations are aimed at making the transition from Companies Act 1956 to Companies Act 2013 easier, improve Ease of Doing Business and provide better environment to start-ups

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Major recommendations:

• As per 2013 law, a public sector company is required to seek approval from central government should it want to give total managerial remuneration which exceeds 11% of net profit. The panel has recommended doing away with the provision
• Harmonizing disclosure standards between SEBI and Companies Act
• The independent director should not have any kind of pecuniary relationship with the company
• Defining a ‘subsidiary company‘ in terms of voting rights of the holding company instead of ‘total share capital’ of the holding company.
• Removal of provision under Section 2(87), which prohibited the companies to not have more than two levels of subsidiaries
• Establishment of an independent body, National Financial Reporting Authority (NFRA), to provide for matters relating to accounting and auditing standards. It is being seen as a major jolt to the Institute of Chartered Accountants of India (ICAI)
• Allowing start-ups to issue 50% of the paid capital as sweat equity against existing norms of 25 %
• Allowing start-ups to issue employee stock ownership plan (ESOP) to promoters who are working as employees or employee directors or whole-time directors
• Only those frauds which involve Rs 10 lakh or above, or one per cent of the company’s turnover, whichever is lower, may be punishable under Section 447 of the companies act

Background:

• The enactment of the Companies Act, 2013 is considered to be one of the most significant legal reforms in India in the recent past, aimed at bringing Indian company law in tune with global standards
• The Act introduced significant changes in the company law in India, especially in relation to accountability, disclosures, investor protection and corporate governance
• In view of the extent and scope of changes, the stakeholders took some time to come to terms with the new regime with the new provisions, and encountered some difficulties in the process
• Several representations were made to the Government on the practical difficulties faced during implementation
• Though a few immediate amendments were made in May, 2015, the Government continued to receive representations that the Act needed further review

The Committee was thus constituted to-

• Make recommendations on issues arising from the implementation of the Companies Act, 2013
• Examine the recommendations received from the Bankruptcy Law Reforms Committee, the High Level Committee on Corporate Social Responsibility, the Law Commission of India and other agencies

Gold is a part of FOREX. Does Gold obtained via Gold Monetisation Scheme qualifies as FOREX?

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

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.

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.

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

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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)