Reserve Bank of India Grade B Officers Exam.

2011 Solved Paper

General Awareness (Exam Held on 6-2-2011)

1. What role do Micro, Small and Medium Enterprises (MSMEs) play in a countrys economic and industrial development ? 1. They have the capacity to absorb skilled and unskilled labour available in the country. 2. Such institutions help in distribution of income in a wide spectrum and do not allow it to get concentrated in few hands or in few areas. 3. They help in eradication of poverty by providing selfemployment opportunities. (A) Only 1 (B) Only 2 (C) Only 3 (D) Only 1 and 3 (E) All 1, 2 and 3 Ans : (E)

2. Which of the following statements about the Indian Economy is correct ? (A) Indian economy is as developed as that of China (B) About 70% Indians are involved in some type of selfemployment and are the owners of some or the other micro or small enterprise (C) In India single biggest employment is agriculture and allied activities (D) About 48% Indian workforce is employed in foreign countries or in organizations assisted by foreign capital

(E) None of these Ans : (C)

3. Which of the following is/are correct about the problems of Indian Agriculture ? 1. Large agricultural subsidies are hampering productivityenhancing investments. 2. Irrigation infrastructure is in bad shape and needs immediate improvement. 3. Frequent takeovers of fertile land by private companies and multinationals to launch big business complexes. (A) Only 1 (B) Only 1 and 2 (C) Only 1 and 3 (D) All 1, 2 and 3 (E) None of these Ans : (D)

4. As per news in various journals, many banks have failed to achieve agri-loan target fixed by the RBI for the year 2010-11. What was the target fixed for the year ? (A) 10% (B) 15% (C) 18% (D) 24% (E) 30% Ans : (C)

5. Which of the following statements about Agro and Allied activities is not correct ?

(A) Farmers do not get adequate credit for purchase of cattle (B) There is a need to improve breed and genetic characteristics of the cattle folk (C) India has huge forest cover and also degraded and marshy land which can be used for productive purposes (D) India is the 10th largest producer of medicinal and aromatic plants. But the products are not of commercial value (E) Animal husbandry plays an important role in providing sustainability under Rain fed conditions Ans : (C)

6. Which of the following schemes launched by the Govt. of India aims at enhancing the livelihood security of the people in rural areas by guaranteeing hundred days of employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work ? (A) TRYSEM (B) Pradhan Mantri Gram Sadak Yojana (C) Kutir Jyoti Scheme (D) ASHA (E) MGNREGA Ans : (E)

7. In some parts of India, farmers face acute distress because of heavy burden of debt from noninstitutional lenders. Who can be called a non-institutional lender ? (A) Small Banks (B) Grameen Banks (C) Credit Cooperative Societies (D) Micro Finance Institutions (E) Money Lenders Ans : (E)

8. The South Asian Free Trade Agreement (SAFTA) was introduced with a view of levying how much custom duty for trading any product within the SAARC zone ? (A) 5% (B) 4% (C) 2% (D) 1% (E) No custom duty Ans : (E)

9. Which of the following organisation prepares rural credit plans on annual basis for all districts in India, which in turn from the base for annual credit plans of all rural financial institutions ? (A) SIDBI (B) NABARD (C) RBI (D) Indian Banks Association (E) CII Ans : (B)

10. Which of the following is TRUE about the current population trend(s) in India ? 1. Every year India adds more people to the worlds population than any other country. 2. Currently India has a young population which will grow somewhat older largely as a result of decline in fertility. 3. The National Family Planning Programme did not contribute much in controlling fertility rate (A) Only 1 (B) Only 2

(C) Only 3 (D) Only 1 and 2 (E) All 1, 2 and 3 Ans : (D)

11. In economic terms, which of the following factors determine the Individuals demand of a product/commodity ? 1. Price of a commodity. 2. Income of the individual. 3. Utility and quality of a commodity. (A) Only 1 (B) Only 2 (C) Only 3 (D) Only 1 and 3 (E) All 1, 2 and 3 Ans : (E)

12. Which of the following terms is used in the field of economics ? (A) Adiabatic (B) Bohr Theory (C) Plasma (D) Barter System (E) Viscosity Ans : (D)

13. Pascal Lamy calls on trade negotiators to move out of their comfort zones towards agreements, was the headline in some major newspapers. This news is associated with which of the following organizations/agencies ? (A) World Trade Organization (B) International Monetary Fund (C) World Bank (D) United Nations Organisations (E) North Atlantic Treaty Organisation Ans : (A)

14. Which of the following is not a function of the Planning Commission of India ? (A) Assessment of the material, capital and human resources of the country (B) Formulation of plans for the most effective and balanced utilization of countrys resources (C) Public cooperation in national development (D) Preparation of annual budget of the country and collection of taxes to raise capital for the implementation of the plans (E) Determination of stages in which the plan should be carried out Ans : (D)

15. Which of the following periods represents the period of the first Five Year Plan in India ? (A) 1948 53 (B) 1947 52 (C) 1952 57 (D) 1950 55 (E) 1951 56 Ans : (E)

16. Which of the following is the name of the process available to common people to seek courts intervention in matters of public interest ? (A) Public Interest Litigation (PIL) (B) Habeas Corpus (C) Ordinance (D) Residuary power (E) None of these Ans : (A)

17. Indias foreign policy is based on several principles, one of which is (A) Panchsheel (B) Satyamev Jayate (C) Live and Let Live (D) Vasudhaiv Kutumbkam (E) None of these Ans : (A)

18. As we know thousands of tonnes of foodgrain was washed away in the floods in Haryana and Punjab a few months back. This incident is an example which indicates that there is a scope for improvement in our machinery controlling our (A) Mid Day Meal Scheme (B) Public Distribution System (C) Food for Work Programme (D) Village Grain Bank Scheme (E) Operation Flood Scheme Ans : (B)

19. President Barack Obama was on a visit to India a few months back. His visit is said to have forged both the nations into a new era of relations. India managed to sign a special agreement with US in which of the following fields/areas as a byproduct of the visit of Obama ? 1. Energy sector and Nuclear energy as US has lifted sanctions on supply of high tech machines. 2. Skill Development Programmes in IT sector in which US has super-specialisation. 3. Training in management of Micro finance Institutions. (A) Only 1 (B) Only 2 (C) Only 1 and 3 (D) Only 2 and 3 (E) Only 1 and 2 Ans : (A)

20. Many times we read a term Tax Haven in various newspapers. What does it mean ? 1. It is a country where certain taxes are levied at a very low rate. 2. It is a country where people can dump their illegal money without any problem. 3. It is a place where foreigners can work without paying any tax on their income. (A) Only 1 and 2 (B) Only 2 (C) Only 2 and 3 (D) Only 1 (E) All 1, 2 and 3 Ans : (E)

21. As per existing law, what is the minimum per day wages paid to a worker from unorganised sector in India ? (A) 50 (B) 75 (C) 100 (D) 125 (E) No such law is there Ans : (C)

22. Who amongst the following was awarded the Indira Gandhi Peace Prize for 2010 ? (A) Ronald Noble (B) Luiz Inacio Lula DSilva (C) Mohammed Elbaradei (D) Aung San Su Kyi (E) None of these Ans : (B)

23. Which of the following is not a Poverty Eradication Programme launched by the Govt. of India ? (A) Swarnjayanti Gram Swarozgar Yojana (B) Jawahar Gram Samridhi Yojana (C) National Social Assistance Programme (D) ADHAR (E) National Family Benefit Scheme Ans : (D)

24. According to the World Bank estimate about 40% Indians are living below International Poverty line of US $ (A) 1 per day (B) 125 per day (C) 2 per day (D) 25 per day (E) 3 per day Ans : (B)

25. The 10th Trilateral Ministerial Meeting of RIC group was organized in November 2010. Who are the members of the RIC ? (A) RussiaIranChina (B) RussiaIndiaChina (C) RomaniaIranCanada (D) RomaniaIsraelChile (E) RussiaIndiaCroatia Ans : (B)

26. India and Syria recently decided to double their trade in next 2 years. Indian Govt. has decided to export which of the following commodities to Syria ? (A) Natural gas (B) Milk (C) Oil (D) Wheat (E) All of these Ans : (E)

27. India has sanctioned a 26 million grant to which of the following countries for development of tube wells ? (A) Myanmar (B) Bangladesh (C) Nepal (D) Pakistan (E) Sri Lanka Ans : (C)

28. Which of the following is the name of the scheme launched by the Govt. of India for adolescent girls ? (Launched in November 2010) (A) Swawlamban (B) SABALA (C) Aadhar (D) ASHA (E) None of these Ans : (B)

29. Many times we see in financial journals/bulletins a term M3. What is M3 ? (A) Currency in circulation on a particular day (B) Total value of the foreign exchange on a particular day (C) Total value of export credit on a given date (D) Total value of the tax collected in a year (E) None of these Ans : (E)

30. As per news in various newspapers, Govt. has allocated a huge sum of 31,000 crore for RTE. What is full form of RTE ? (A) Right of Education (B) Reforms in Technical Education (C) Return to Empowerment (D) Right to Empowerment (E) Renewable Technology for Energy Ans : (A)

31. Which of the following is not a major function of the RBI in India ? (A) Issuance of currency notes (B) To facilitate external trade and payment and developing a foreign exchange market in India (C) Maintaining price stability and ensuring adequate flow of credit to productive sectors (D) Taking loans/credit from World Bank/IMF and ADB etc., and reallocating it for various activities decided by the Govt. of India (E) Formulation and monitoring the monetary and credit policy Ans : (C)

32. The RBI has regional offices at various places. At which of the following places it does not have an office ? (A) Kota (B) Shimla (C) Lucknow (D) Panaji (E) Guwahati Ans : (C)

33. Which of the following organizations/agencies has given a US $ 407 billion loan to India to boost up its micro finance services in unbanked areas ? (A) IMF (B) World Bank (C) Bank of Japan (D) ADB (E) Jointly by IMF and ADB Ans : (B)

34. The Prime Ministers Economic Advisory Council (PMEAC) has projected that the Indian Exports will grow by what percentage during 2010-11 ? (A) 15% (B) 18% (C) 22% (D) 24% (E) 28% Ans : (B)

35. Which of the following organisations/agencies has given the estimate that the India will be third largest FDI recipient in 201012 ? (A) UNCTAD (B) WTO (C) World Bank (D) IMF (E) None of these Ans : (A)

36. The performance of which of the following industries is considered performance of a core industry ? (A) Garments (B) Leather (C) IT (D) Oil and Petroleum (E) Handicrafts Ans : (D)

37. Who amongst the following is not a recipient of Nobel Prize in economics ? (A) Peter A. Diamond (B) Dale T. Mortensen (C) Amartya Sen (D) Paul Krugman (E) Robert G. Edwards Ans : (E)

38. Basel Committee has given its recommendations on which of the following aspects of banking operations ? (A) Marketing of bank products (B) Priority sector lending (C) Risk Management (D) Micro financing (E) All of these Ans : (C)

39. Which of the following is the rank of India in Human Development Report 2010 prepared by the UNO ? (A) 99 (B) 100 (C) 115 (D) 119 (E) None of these Ans : (D)

40. Which of the following was/where the key objectives of the RBIs review of Monetary and Credit Policy 2010-11 which was reviewed again on 2nd November 2010 ? 1. To sustain the anti inflationary thrust. 2. To maintain an interest rate regime consistent with price. 3. To provide extra tax incentives to exporters who were in stress due to market fluctuations. (A) Only 1 (B) Only 2 (C) Only 1 and 2 (D) All 1, 2 and 3 (E) None of these Ans : (A)

41. PIIGS is the group of nations falling under (A) Euro zone (B) Asia Pacific (C) SAARC (D) NATO

(E) Commonwealth Ans : (A)

42. Which of the following is/are the preconditions, the IMF has put to provide bail out package to Ireland ? 1. It should gradually lower down unemployment benefits. 2. It should bring down the minimum wages in order to boost employment. 3. It should import some of the crucial commodities from non euro countries as an immediate measure to improve shortage of the same. (A) Only 1 and 2 (B) Only 2 and 3 (C) Only 1 and 3 (D) Only 1 (E) All 1, 2 and 3 Ans : (B)

43. India is self-sufficient in production of which of the following commodities ? (A) Edible oil (B) Milk (C) Pulses (D) Natural gas (E) All of these Ans : (B)

44. Which of the following is used as a fuel in Nuclear power stations in India ? (A) Thorium (B) Copper

(C) Tin (D) Chromium (E) All of these Ans : (A)

45. Which of the following States has taken up the job of improving Dams with the help of the World Banks Dam Rehabilitation and Improvement project ? (A) Kerala (B) Gujarat (C) Tamil Nadu (D) Uttar Pradesh (E) Guwahati Ans : (A)

46. Nitish Kumar led National Democratic Alliance won how many seats in recently held assembly elections in Bihar ? (A) 150 (B) 243 (C) 200 (D) 206 (E) None of these Ans : (D)

47. Who amongst the following is the author of the book Development as Freedom ? (A) M. S. Swaminathan (B) C. Rangarajan

(C) Manmohan Singh (D) Y. V. Reddy (E) Amartya Sen Ans : (E)

48. Which of the following terms is used in Finance and Banking ? (A) Line of Sight (B) Scattering loss (C) Revenue (D) Oscillation (E) Shielding Ans : (A)

49. Who amongst the following is a famous economist ? (A) Richard Dawkins (B) Alan Greenspan (C) Vernon Heywood (D) Olivar Sachs (E) Stephan Hawking Ans : (B)

50. Who amongst the following has never held post of the Governor of the RBI ? (A) C. Rangarajan (B) L. K. Jha (C) Manmohan Singh (D) Bimal Jalan

(E) Usha Thorat Ans : (E) Posted by CURRENT NEWS & VIEWS at 2:54 PM 0 comments Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz

Labels: BANK EXAM PAPERS Friday, June 10, 2011 NAC's seven-point test for land acquisition bill NAC's seven-point test for land acquisition bill The National Advisory Council (NAC) has prescribed a seven-point test for a having a humane legistlation on land acquisition and rehabilitation.

In a letter to the government, the NAC chaired by Sonia Gandhi, has suggested a check list of seven parameters which includes provisions for a rehabilitation package that is sensitive to the aspirations of the affected people. "Does it discourage forced displacement? Does it minimise adverse impacts on people, habitats, environment and biodiversity? Does it minimise adverse impacts on food security by actively discouraging acquisition of agricultural land, and promoting local economies? "Does it comprehensively define project affected persons/families? Does it provide for a just compensation and rehabilitation package, sensitive to the aspirations, culture, community, natural resource base and skill base of the affected people? "Does it ensure humane, participatory, informed, consultative and transparent process" Does it provide for effective implementation?" "The test for any such legislation should be on these parameters," said the letter sent by the NAC to the government. The NAC also wants the Land Acquisition, Resettlement and Rehabilitation Act to make violation of the law by public officials a punishable offence.

"Penal provisions for violations (by public officials), in the form of fines imposed on public officials who fail based on their job charts issued by the state government, must be included in the statute," the NAC said. The NAC has suggested that the land acquired for project that remains unused should be returned to the displaced families with a nominal cost recovery. The recommendation also includes a provision for the government to notify the amenities to be provided at resettlement sites. "The basic amenities with minimum standards shall be mandatorily provided at the new site. These include roads, safe drinking water, hygiene, educational facilities, community hall, and basic irrigation facilities at project cost," the NAC said in its communication to the government. It also recommended setting up of a National Commission for Land Acquisition, Resettlement and Rehabilitation (NLCRR) with powers to supervise and exercise oversight over land acquisition, resettlement and rehabilitation. "The NCLRR shall have a chairperson, and four members of relevant skills and experience, and independence, at least two of whom should be women, and at least one of them SC and one ST," the NAC letter said. It suggested that the process of appointments to NCLRR should be similar to the Central Information Commission under the Right to Information Act. The NCLRR should be tasked with promoting public accountability and ensuring compliance with legally established policies, procedures and practices. The Commission should also mediate and respond to complaints and disputes in the capacity of an ombusdman and also fix responsibility on public officials for lapses and awarding fines. The NCLRR should also provide strategic advice to the government, the NAC said. Posted by CURRENT NEWS & VIEWS at 11:53 PM 0 comments Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz

Labels: GOVT. SCHEMES PROGRAMMES

Industrial growth halves in April Industrial growth halves in April

The Index of Industrial Production (IIP) on Friday registered a 6.3 per cent growth in April, according to the new series with base year 2004-05 released by the Central Statistics Office (CSO) as against 13.1 per cent recorded in the same month in the previous year. Union Finance Minister Pranab Mukherjee termed the declining industrial growth rate in April as disturbing stating he would wait for more data to ascertain the trend. As per the new series, manufacturing growth in April stood at 6.9 per cent against 14.4 per cent in April, 2010, while mining and electricity production was up by 2.2 per cent (9.2 per cent) and 6.4 per cent (6.5 per cent), respectively. Capital goods registered a growth of 14.5 per cent (35.5 per cent) and consumer goods were up by 2.9 per cent (13.8 per cent). On the other hand, as per the old series (base year 1993-94), the industrial output registered a steep fall at 4.4 per cent in April against 16.6 per cent a year ago. Growth in manufacturing, which constitutes about 80 per cent of the index weight, nosedived to 4.4 per cent in April from a high of 18 per cent in the same month in the previous year. Major area of concern Mining also grew by a meagre 2.1 per cent during the month under review as against 12 per cent in April, 2010. Growth in electricity production also dipped to 6.4 per cent from 6.9 per cent. A major area of concern was the low off-take of capital goods, whose production growth was just 2.5 per cent in April compared to 64.1 per cent in same month in the previous year. Overall, consumer goods also saw a slow growth rate of 5.9 per cent (11.9 per cent). Production trends for 100 new items, including ice cream, fruit juice and mobile phones, has been included for measuring the pace of industrial production in the new index series. The new items in the IIP would include computer stationery, newspapers, chemicals such as ammonia and ammonia sulphate, electrical products such as solder power systems, gems and jewellery and molasses. On the other hand, obsolete articles such as typewriters, loud speakers and VCRs have been taken off to make the series representative of the present-day industrial production and demand scenario.

The base year for the new series is 2004-05 as against 1993-94 for the old one. The new IIP series is expected to help policymakers and market participants forecast economic trends. The Department of Industrial Promotion and Policy (DIPP) and the CSO jointly worked on the new index.

The latest slide in monthly numbers came after the IIP registered a growth of only 7.8 per cent in March, revised upward from the original estimate of 7.3 per cent, as against 15.5 per cent in March, 2010. Experts had blamed the RBI's rate hikes, leading to lowering of investments and a fall in output, for the slowdown in IIP growth. Some experts said the slowdown might force the RBI to have a relook at its monetary tightening policy. However, many others said the prevailing high inflation situation would force the RBI to continue with the rate hikes. Crisil chief economist D. K. Joshi said: IIP growth is quite volatile and not to read much from monthly trends. The most important development after the introduction of the new index is the confirmation of belief that the previous index under-stated industrial growth.'' Mr. Joshi said the RBI was likely to hike rates by another 25 basis points at its next review on June 16. Posted by CURRENT NEWS & VIEWS at 11:43 PM 0 comments Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz

Labels: CURRENT ECONOMY Food price 'threat' for poor countries: UN agency Food price 'threat' for poor countries: UN agency Food prices are to remain high and volatile into 2012, presenting a "threat" to poor countries that will have to spend up to a third more on food imports in 2011, the UN food agency said on Tuesday. The Rome-based Food and Agriculture Organisation (FAO) said that its food price index averaged 232 points in May - down from a revised estimate of 235 points in April but was still 37% above its level in May 2010. "High and volatile agricultural commodity prices are likely to prevail for the rest of this year and into 2012," FAO said in a statement. The reason for the monthly decline was the slight decrease in international prices of cereals and sugar, which offset increases for meat and dairy.

FAO said that the next few months will be "critical" - with encouraging prospects for the wheat harvests in Russia and Ukraine but a potential for lower maize and wheat yields in Europe and North America due to the weather. "The general situation for agricultural crops and food commodities is tight with world prices at stubbornly high levels, posing a threat to many low-income food deficit countries," said David Hallam, head of FAO's markets division. FAO said that the cost of global food imports is set to reach a record of $1.29 trillion (879 billion euros) in 2011 - 21% more than in 2010. Low-income food deficit countries and least developed countries will likely have to spend 27 and 30% more respectively on food imports, FAO said. Posted by CURRENT NEWS & VIEWS at 5:52 PM 0 comments Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz

Labels: CURRENT ECONOMY Govt lowers pension age limit for BPL category Govt lowers pension age limit for BPL category An additional 72.32 lakh persons in the age group of 60-64 years and living below the poverty line will get pension benefits with the Government on Thursday lowering the age limit to 60. The Union Cabinet chaired by Prime Minister Manmohan Singh also decided to increase the rate of pension to persons of 80 years and above from Rs 200 to Rs 500. The revised norms would be applicable with effect from April 1 this year and total additional requirement will be Rs 2,770 crore for implementing the Indira Gandhi National Old Age Pension Scheme-- part of the National Social Assistance Programme of the Central government. "It is estimated that lowering of the age limit would benefit about an additional 72.32 lakh persons in the age group of 60-64 years and living below the poverty line. It is estimated that 26.49 lakh persons above the age of 80 years and living below the poverty line, would become eligible to receive enhanced Central assistance at Rs. 500 per month," the Government said in a statement.

At present 169 lakh persons above the age of 65 years and living below poverty line are receiving Central assistance under Indira Gandhi National Old Age Pension Scheme. "The additional funds required will be Rs 1,736 crore for providing old age pension at Rs 200 per month per beneficiary in the age group of 60-64 years and Rs 953 crore for providing enhanced pension at Rs 500 per month per beneficiary of age 80 years and above," the Government said. "Thus the total additional requirement will be Rs 2,770 crore including 3 per cent administrative expenses," it said. As a result of change in the eligibility criteria for receiving old age pension, eligibility criteria for widow pension under IGNWPS and disability pension under IGNDPS will get revised from 40-64 years to 40-59 years and from 18-64 years to 18-59 years respectively, the statement said. It has been a long-pending demand to lower the age of old age pension beneficiaries to 60. Posted by CURRENT NEWS & VIEWS at 5:48 PM 0 comments Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz

Labels: CURRENT ECONOMY Black money: CBDT plans global info hub Black money: CBDT plans global info hub The Central Board of Direct Taxes (CBDT) is coming up with an information hub with a view to fast-tracking money laundering and tax evasion cases and make exchange of tax-related information easier and faster between India and other countries. The exchange of information unit (EoIU) in New Delhi, a part of the income tax department, will provide and exchange information on issues related to direct taxes suspicious transactions, tax evasion, money laundering, income generated through business activities by companies in India and abroad, and issues covered under the existing Double Taxation Avoidance Agreement (DTAA). India currently has amended DTAAs with 40 nations for sharing bank and taxrelated transactions.

"Information will be provided and exchanged between the competent authorities of the two countries, which will be helpful for the newly-created Directorate of Income Tax (Criminal Investigation) in probing cases both in India and abroad," The unit will act as a nodal point, where all information coming to India from other countries including tax havens shall be processed, classified and disseminated to tax authorities across the country. "Its a two-way process and similar information will be provided to tax authorities abroad." The implementation is in the final stage and the board is looking out for a location outside the North Block to set up of the unit. "The software required to operate this unit is ready and once a location is finalised, the unit will be operational." However, according to a section of tax officials, the shortage of manpower may affect the functioning of the new unit. Posted by CURRENT NEWS & VIEWS at 5:47 PM 0 comments Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz

Labels: CURRENT ECONOMY Power capacity addition to double in 11th plan Power capacity addition to double in 11th plan New power generation capacity in the current 11th Plan period is set to double over the preceding five years in a first, despite hiccups that are causing targets to be missed. The plan ends in March, 2012. The Planning Commission, in its review on the performance of the power sector, has noted that "power capacity addition by the end of the 11th plan will be about 2.5 times of earlier plan even though it will be only 63% of the power capacity addition targets set for the 11th plan." "In the first four years of the 11th plan, power capacities have increased by 34,615 mw and may reach 50,000-52,000 mw by the end of the plan," the Commission said. Around 17,600 mw of power capacity is expected to be added this fiscal. As against this, the power capacity addition in the whole of 10th plan stood at 21,080 mw.

The power capacity addition targets set for the 11th Plan was 78,700 mw but it was later assessed that there may be shortfalls in the capacity addition and the actual addition may be 62,374 mw. However, going by the position of coal, the actual capacity addition may be around 52,000 mw by the end of the plan period. "Even though the capacity will fall short of targets in the 11th plan, the power ministry's efforts needs to be lauded for a substantial capacity addition of close to 52,000 mw by the end of the current plan," a Planning Commission official said. The review has also noted that the production of coal, the mainstay of power generation in India, has been seriously affected by the policy of 'Go' and 'No Go' of the ministry of environment and forests. This, it said, has resulted in serious drop in coal production, which was static at around 535 million tonnes in 2009-10 and 2010-11. "The power generation, from the existing and new plants likely to be added, will get adversely affected, unless domestic coal production picks up at 7% annual growth," the Planning Commission said. The average growth in coal production during the 11th plan stood at 5.1%. Posted by CURRENT NEWS & VIEWS at 5:45 PM 0 comments Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz

Labels: CURRENT ECONOMY Govt to allow 51% foreign investment in retail business Govt to allow 51% foreign investment in retail business The government has moved a formal proposal to allow foreign direct investment of up to 51% in multi-brand retail stores although with a few riders. At present, FDI in multi-brand retail business is prohibited in India. The large deep discount stores, such as Walmart, Tesco and Carrefour, will be all owed only in 10-lakh-plus cities and only in those states which allow FDI in multi-brand retail.

According to the proposal, piloted by the department of industrial policy and promotion last month, at least 50% of the total investment should be made for creating back-end infrastructure, such as building cold storage chain and warehouses. And the retailers will have to keep the RBI and the Foreign Investment Promotion Board in the loop in this regard. Posted by CURRENT NEWS & VIEWS at 5:44 PM 0 comments Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz

Labels: CURRENT ECONOMY Revision of Base Year of All India Index of Industrial Production Revision of Base Year of All India Index of Industrial Production The Committee of Secretaries (COS) in its meeting held on 10th May, 2011 approved the release of the new series of Index of Industrial Production (IIP) with 2004-05 as its base and directed that the new series of IIP may be released for the month of April, 2011onwards. Accordingly IIP new series is released today i.e 10th June, 2011, which is the Quick Estimate (QE) of IIP for the month of April, 2011. The time series indices for the period of April, 2005 to March, 2011 are also released along with the QE of April, 2011 index. Though the Q.E. of the IIP pertaining to the old series of IIP (Base: 1993-94=100) is also made available through this Ministrys website for comparison and academic purposes, the same will be discontinued from the month of September, 2011 onwards. In other words, the Q.E. of IIP pertaining to 1993-94 series will be provided only upto the month of August, 2011, which will be the Q.E. of IIP for the month of June, 2011.

The revision of base year of IIP was undertaken based on the recommendations of the Standing Committee on Industrial Statistics (SCIS), constituted by the Ministry of Statistics & PI. The SCIS includes members from concerned Ministries, and it is presently chaired by Dr. Biswanath Goldar, Professor, Institute of Economic Growth. The National Statistical Commission (NSC) also recommended revision of base year of IIP to 2004-05.

Some of the salient features of new series of IIP are as follows:

A representative item basket comprising 682 individual items has been selected for the new series of IIP. Further, and a new weighting diagram which better reflects the present structure and composition of the industry due to changes in the technology, economic reforms and production behaviour over time, is derived for the new series.

The new series of IIP covers the sectors of mining, manufacturing and electricity in its scope as in the current series. For the compilation of sectoral weights for these three main sectors, GDP at factor cost available from the National Accounts Statistics (2010) is used.

The result of the Annual Survey of Industries (ASI): 2004-05 is used as the basic frame for the selection of products for the manufacturing sector. However, for deciding the industry level (NIC 2 digit) weights of the manufacturing sector, the estimates of Gross Value Added (GVA) as per ASI: 2004-05 for the organised manufacturing sector and as per the 62nd round of the National Sample Survey for the unorganised manufacturing sector are used. The number of items, item groups and weights as per different industry groups pertaining to the new series of IIP is at Annexure-I.

Sector wise comparative statements of weights, no. of items and item groups between the current series and new series are in the following table:

Table I: Sector wise comparative items and weight Sl. No. SectorItems Item groups Weight 2004-05 64 1993-94 61 473 1 1 620 1 2004-05 1 281 1 1993-94 2004-05

1993-94 1 2 3

Mining

104.73 397

141.57 755.27

Manufacturing Electricity 1

793.58

101.69

103.16

Total 538

682

283

399

1000.00

1000.00

The monthly production data for the compilation of new series of IIP are being made available to the CSO by sixteen (16) source agencies viz . Indian Bureau of Mines (IBM), Directorate of Sugar, O/o the Salt Commissioner, Directorate of Vanaspati, Vegetable Oil & Fats, Tea Board, Coffee Board, O/o the Textile Commissioner, O/o the Jute Commissioner, O/o the Coal Controller, M/o Petroleum, O/o the Joint Plant Committee (Iron & Steel), Railway Board, D/o Industrial Policy & Promotion, D/o Chemicals & Petrochemicals, D/o Fertilizers and Central Electricity Authority. The number of items, item groups and weights as per different source agencies pertaining to the new series of IIP is at Annexure-II. Out of these, the Indian Bureau of Mines compiles the monthly indices for the mining sector and supplies the same to the CSO, which is suitably dovetailed with the indices for manufacturing and electricity sectors to arrive at the general index.

Some of the important items newly included in the series basket are Milk, skimmed, pasteurised, Rice, Cattle and poultry feed, Woollen carpets, Apparels, Writing & printing paper, Newspapers, Propylene, Purified terephthalic acid, Complex grade fertilizers, Paraxylene, Antibiotics & it's preparations, Polythene bags incl. HDPE & LDPE bags, Glass sheet, Refractory bricks, Marble tiles/slabs, Grinding wheels, Aluminium, Steel structures, Heat exchangers, Insulated cables/wires all kind, Colour TV sets, Lens of all kinds, Wood furniture, Coir mats & matting, Gems and jewellery, Copper and copper products, Poly vinyl chloride, Polypropylene( incl. co-polymer) and Molasses.

Major changes due to base revision

The base year of IIP for the new series is 2004-05, as against 1993-94 for the old series.

The weighting diagram has undergone change due to base revision.

The total coverage of products has increased at the overall level.

National Industrial Classification (NIC)-1987 was used in the old series whereas for the new series, NIC-2004 is used. As such, at industry level, monthly index and their growth is being published for 22 industry groups for the new series, whereas for the old series, the monthly index and growth was released for 17 industry groups.

14 out of 15 source agencies are retained in new series. Department of Chemicals & Petrochemicals and Department of Fertilizers are included in the new series as independent source agencies because of growing importance of their respective industries. Ministry of Micro, Small & Medium Enterprises (MSME) is presently excluded as a source agency for new series of IIP, though bigger units of MSME sector, which are part of the coverage of Annual Survey of Industries (ASI) are already included in the item basket. CSO held dialogues with the representatives from O/o the Development Commissioner (MSME) for identifying products and units from the recently completed 4th all India Census cum Survey of MSME sector and accordingly putting in place a new system of regular monthly collection of data. After the system of data collection is in place, DC (MSME) may develop the index for the MSME sector separately, for which CSO would provide necessary technical guidance. Once DC (MSME) is ready with the index, this monthly index for the MSME sector can be dovetailed with the General Index of All-India IIP by assigning a proper weight through suitable methodological framework. This view was also endorsed by the COS.

Annexure-I Industry group wise number of items, item groups and weightsNIC-04 No. of items No. of item groups Weights 15 16 17 18 19 20 21 22 Food products and beverages Tobacco products 5 Textiles 58 23 5 61.64 2 6 4 27.82 5.82 10.51 54 15.70 46 72.76 Industry

Wearing apparel; dressing and dyeing of fur 3 Tanning and dressing of leather products 30

Wood and of wood products except furniture 4 Paper and paper products17 Publishing and printing 4 8 2 9.99 10.78

23 24 25 26 27 28 29 30 31 32 33 34 35 36

Coke, refined petroleum products & nuclear fuel Chemicals and chemical products Rubber and plastics products 37 96 25 27 89 20.25 14

16

16

67.15

100.59

Other non-metallic mineral products Basic metals 61 30 113.35

43.14

Fabricated metal products, except machinery and equipment 30.85 Machinery and equipment n.e.c. 65 42 37.63 4 27 3.05 19.80 8

15

13

Office, accounting and computing machinery 6 Electrical machinery and apparatus n.e.c. 41

Radio, TV and communication equipment & apparatus

8 16

9.89 10

Medical, precision and optical instruments, watches and clocks 5.67 Motor vehicles, trailers and semi-trailers Other transport equipment 14 12 6 30 18.25 29.97 5 40.64

Furniture; manufacturing n.e.c. 13 620 397

Total manufacturing

755.27

Annexure-II

Source agency wise number of items, item groups and weightsS.No. Agency No. of individual Items No. of Item groups Weight 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Indian Bureau of Mines Directorate of Sugar 61 1 1 1 1 141.57 15.25 1 0.53 11 11

Source

O/o the Salt Commissioner

Directorate of Vanaspati, Vegetable Oils & Fats Tea Board 1 1 1 6.51 0.35 44 11 3 59.39 47 21 13 7 2.96 52.10 4.07

9.17

Coffee Board1

O/o the Textile Commissioner O/o the Jute Commissioner O/o the Coal Controller M/o Petroleum 11 3 11

Joint Plant Committee (Iron & Steel) Railway Board 6 6 2.20

92.07

D/o Industrial Policy & Promotion D/o Chemicals & Petrochemicals 47 D/o Fertilizers 6 6 12.54 1

430 47

268 41.87

456.26

Central Electricity Authority

103.16

TOTAL

682

399

1000

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