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Funds

1. Nirbhaya
2. Innovation fund
3. VC for SC
[Fund #1] Nirbhaya Fund
Launched in Budget 2013 [Rs.1000 crore]
For financing projects such as
CCTV @Public places
GPS and emergency buttons in public buses, trains
Toll free numbers
Interim Budget 2014:
Nirbhaya fund made non-lapsable (permanent)
FM announced additional Rs.1000 crore. [=1k+1k=2k]
Criticism:
According to an RTI filed in Jan 2014, so far no money has been spent
from Nirbhaya fund- on any scheme/project.
#2: Innovation
India Inclusive Innovation Fund
under MSME ministry
To promote grass root
innovations- related to MSME
sector.
FM gave 100 crores in Interim
budget 2014
Venture Capital fund for SC
Under IFCI [Industrial Finance
Corporation of India]
To promote entrepreneurship
among SC
Finance @concessional rates.
FM gave 200 crores in Interim
budget 2014
Funds
#3: VC for SC
Summary: funds
Fund Launch Crore.
1. Nirbhaya: women security 2013 1000
2. India inclusive innovation:
grassroot/MSME
2014 100
3. Venture capital fund for SC (IFCI) 2014 200
Schemes
1. Flexibility to States
2. HRD related schemes
National Skill Development
Corporation
Ownership: 51% private ; 49%
FM
Target: give skill training to 150
million Indians by 2022.
Scheme: National Skill
Certification and Monetary
Reward Scheme
(1k) 2013 + (1k) 2014

(Related) UDAAN
By Home ministry
To give employment to youth of
J&K
NSDC trains the youth, ties up
with private company to get
them recruited.
Problem: 6-15k pm salary.
Hardly any takers.

[HRD]#1: NSDC
FM Pranab Mukherjee 2009
Under: HRD ministry
Eligibility:
Student: professional study
parents with less than 4.5 lakh per
annum
Education loan after 1 April
2009: government pays the
interest during study period and
little beyond
Problem: students who took
loans before 1st Apr 2009
Interim budget fixes the problem:
Applicable to: all education loans
taken up to 31.3.2009 and
outstanding on 31.12.2013.
Government will pay the
interest.
but the borrower after 1.1.2014.
Impact: 9 lakh students
Subsidy Expenditure: Rs. 2600
Crore.
Implemented via Canara bank.

[HRD]#2: Central Scheme for Interest
Subsidy CSIS
(restructured) Integrated child
development scheme (ICDS): will
be implemented in all districts
by first April 2014
National Agro-forestry policy
2014 : employment generation.
Helping tribals to Market minor
forest produce.
SC Sub-Plan 48k
Tribal Sub-Plan 30k
Child Budget 80k
Gender Budget 97k
Schemes: plan Expenditure 5.5 lakh
Crores
Upto 2012
140+ centrally sponsored
schemes
100%, 90:10%, 80:20%, 75:25%
etc. [State plans finance
problem.]
money given to implementing
agencies

GoM, these schemes streamlined
into 66 schemes.
Now: money directly to State
consolidated fund.

Interim Budget 2014:
Funds under these programmes
will be released as Central
assistance to State plans= thus
giving States greater authority and
responsibility.
Schemes vs States
2013
Schemes vs States
Additional funding to the hill states:North Eastern States, Himachal
Pradesh and Uttarakhand.
FM requested the state governments to bear more cost of flagship
programs. So union can spare more for defense, railways, national
highways and telecommunications.
Aadhar card
57 crore issued so far
Will open bank accounts =>financial inclusion
DBT
At present direct money transfer to 27 schemes.
DBT will be rolled throughout country, for all schemes (although postponed
for LPG)


Banking/Finance related
Banking: Public sector banks
2013 2014
opened ~5k branches, with almost
one ATM per branch
Their NPA will reduce as economy
starts to improve
Bharatiya Mahila bank started in
November 2013

Give 7lakh crore as agri loans. Target: 8 lakh crores in agri loans
Interest subvention scheme (2%) Continued.
Finance sector reforms initiatives
1. To create one record for all financial assets of every individual
2. ADR/GDR scheme
3. rupee-denominated corporate bond market
4. Help international investors to invest in Indian bonds.
5. Commodity & Currency Derivatives Market

Investment/ Infrastructure/ Mfg
related
Investment / infra.
[Infra] File clearance
Government created Cabinet Committee on Investment and the Project Monitoring Group
(under PMO)
by the end of January, 2014, clearance completing ~300 projects worth >6 lakh crore rupees.
[Infra] Communication related:
IT modernization of Postal department (~5k crore), will be operational by 2015 in all post offices
(155,000)
community radio stations: 100 crores
[Infra] Nuke Energy
Kudankulam Nuclear Power Plant Unit I started generating electricity (TN)
Kalpakkam powerplant: fast breeder reactor work near completion. (TN)
Seven nuclear power reactors are under construction
[Infra] Solar Energy
National Solar Mission entered the second phase on 1.4.2013.
In 2014m we'll initiate four ultra mega solar power projects (each ~500MW)
Manufacturing
National Manufacturing Policy
Share of MFG sector in GDP=25%
Create 100 million jobs in decade (2022)
[Infra] MFG: National Investment and Manufacturing Zones (NIMZ)
~5000 ht. uncultivated land.
Industrial township with all the necessary infrastructure.
8 NIMZ, around Delhi Mumbai Industrial Corridor (DMIC)
e.g. Ahmedabad-Dholera investment Region, Gujarat
5 more NIMZs outside DMIC
Similar to DMIC, three more corridors (work under progress)
1. Chennai and Bengaluru
2. Bengaluru and Mumbai
3. Amritsar and Kolkata

Launched in 2013
By Khadi and Village Industries
Commission (KVIC) [statutory]
Under Ministry of MSME Micro,
Small and Medium Enterprises
Mark assures mark will pure
hand-woven, hand spun khadi.

[MFG] Khadi Mark
[Infra/MFG] Misc.
[Infra]: Adopt PPP model for infra. Development
[MFG]:
Est. 2014: mfg. export will be ~325 billion $
focus on export.
All taxes, Central and State, that go into an exported product should be
waived or rebated.
[FDI]
FDI policy was liberalized to attract larger investments in telecommunication,
pharmaceuticals, civil aviation, power trading exchanges and multi-brand
retail.
Proposal for FDI in railways
Bills/Act related
Refer Prsindia.org to salient features
[Polity] Bills mentioned during Budget
speech
Name Context in the speech
Financial Sector
Legislative Reforms
Commission
We need to atleast implement some of its
recommendations that donot require
passing/amending any laws.
Forest rights act >12 lakh land titles given to them
Land acquisition Act Notified in 2014, has replaced the colonial law of 1894
National Food security
act
Has been passed. Will give food security to 67% of
juntaa.
Companies Act Replaced old act of 1956
PFRDA Act Passed. Established Statutory regulator.
[Polity] Bills mentioned during Budget
speech
PFRDA Act Passed. Established Statutory regulator.
Insurance Laws
amendment
Not passed
Securities Law Not passed
Public Debt
Management Agency
Bill
Not passed. But until then, government will setup a non-statutory
PDMA to start work in 2014-15.
Forward Contracts
(Regulation) Act
Need to amend it, so NSEL-like crisis doesn't happen again.
Direct tax code and
GST
Needs to be passed. FM will release discussion paper on his site.
Health/Science tech related
JE vaccine
Viral disease, spread via
mosquitoes
New vaccine JENVAC by Indian
scientists .
jointly developed by:
1. National Institute of Virology
(Pune)
2. Indian Council of Medical
Research (ICMR)
3. Bharat Biotech Ltd.

For Thalassamia (genetic
disease)
Till now imported kits
But now desi kits @Rs.400
Developed by
Indian Council for Medical
research (ICMR)
National Institute of
Immunohaematolgoy (NIIH)
[Healthcare] (GS3) Indigenization of
technology
Reverse Dot Blot Hybridization
(RDB) Kit
AV Magnivisualizer
for detection of cervical cancer
in women.
by Indian Council of Medical
Research (ICMR)
Foreign device 8-10 lakh
This one costs just 10k
Runs on battery- good for rural
areas
used even by healthcare workers
with basic training.

Mars orbiter mission, ISRO
^available on Mrunal.org/snt

[Healthcare] (GS3) Indigenization of
technology
Space tech
Misc. from Interim Budget speech
Global Risks 2014 report
Released by World economic forum
To show that global risk are interconnected
31 risks given. Top ten are
1. fiscal crisis
2. structurally high unemployment or underemployment
3. water crisis
4. income disparity
5. climate change
6. extreme weather events (Floods, storms, fires)
7. governance failure
8. food crisis
9. failure of a major financial institution
10. political and social instability.
These are common to all Emerging market economies.
GDP growth in (%) 2011 2013
World ~4 3
Eurozone -- 0.2%
China 9.3 7.7
India 7.5 4.9 (CSO)
Blackmoney/Offshore account
Investigation started since 2011
But so far ~70 cases registered.

Misc. from Interim Budget speech
Essay
[Statements from Interim budget speech]
1. India was the first non-Western country and also the first poor
country in the world to commit itself to a resolutely democratic
way of governance.
2. Democracy acknowledges diversity, respects dissent, encourages
debate, and decides through elected representatives.
3. Neither populism nor majoritarianism nor individualism is an
alternative way of governance.
4. Not the spear but sceptre swayed with equity Alone gives the ruler
victory.