PROVISION OF URBAN AMENITIES IN RURAL AREAS (PURA)

Ministry of Rural Development (MoRD), Government of India has re-launched the scheme “Provision of Urban Amenities in Rural Areas” (PURA) as a Central Sector scheme during remaining period of the XI Plan. MoRD with support from Department of Economic Affairs and the technical assistance of Asian Development Bank intends to implement the PURA scheme under a Public Private Partnership (PPP) framework between Gram Panchayat(s) and private sector partners. The scheme envisages twinning of rural infrastructure development with economic re-generation activities and is the first attempt at delivering a basket of infrastructure and amenities through PPP in the rural areas. It is an effort to provide a different framework for the implementation of rural
infrastructure development schemes and harness private sector efficiencies in the management of assets and delivery of services.

The scope of the scheme is to select private partners to develop livelihood opportunities, urban amenities and infrastructure facilities to prescribed service levels and to be responsible for maintenance of the same for a period of ten years in select Panchayats/cluster of Panchayats. Private sector entities having experience in development and management of community-oriented infrastructure projects shall be selected through an open competitive bidding process based on rigorous qualifications and evaluation criteria. The selected private partners would be required to provide amenities like water supply and sewerage, roads, drainage, solid waste management, street lighting and power distribution and undertake some economic and skill development activity as part of the PURA project. The private partners may also provide ‘add-on’ revenue-earning facilities such as village linked tourism,
integrated rural hub, rural market, agri-common services centre and warehousing etc. in addition to the abovementioned amenities. Where the PURA project spans several Panchayats in a cluster, the private partner would propose sub-projects with the PURA elements for each of the Panchayats.
The leveraging of public funds with private capital and management expertise for creation and maintenance of rural infrastructure is the essence of the PURA scheme, which is envisioned to act as the catalyst not only for convergence between different infrastructure development schemes but also for the new model for the management of urbanisation of rural areas.

Lack of livelihood opportunities, modern amenities and services for decent living in rural
areas lead to migration of people to urban areas. There are wide gaps in the availability of physical
and social infrastructure between rural and urban areas. To address these issues, the President of
India Dr. A.P.J. Abdul Kalam highlighted a vision of transformation of rural India through launching a mega mission for Provision of Urban Amenities in Rural Areas (PURA). During his address to the nation on eve of Republic Day 2003, Dr. Kalam visualized
providing four connectivities: physical connectivity, electronic connectivity, knowledge connectivity
leading to economic connectivity of rural areas. PURA was envisaged as a self-sustainable and viable
model of service delivery to be managed through an implementation framework between local people,
public authorities and the private sector. The Government support would be in the form of finding
the right type of management structure to develop and maintain rural infrastructure, empowering such management structure and providing initial economic
support. Subsequently, Prime Minister of India also announced implementation of PURA scheme in his Independence Day speech on 15th August 2003.

Seven pilot projects were implemented during the 10th Five Year Plan in Basmath (Maharashtra),
Bharthana (Uttar Pradesh), Gohpur (Assam), Kujanga (Orissa), Motipur (Bihar), Rayadurg (Andhra
Pradesh) and Shahpura (Rajasthan). An evaluation study of these pilot projects by National Institute of Rural Development (NIRD) identified the necessity of community and private sector participation,
need for factoring infrastructure development with lead economic activities and livelihoods creation,
requirement of project site selection on the basis of growth potential and need for convergence with other schemes of rural development or other Departments. Based on the findings of the evaluation study by NIRD, comments of various Ministries/Departments, feedback received during consultations with private sector representatives and officials of State Governments,
and the recommendations of the consulting team of Asian Development Bank (ADB), the scheme of PURA has been restructured for implementation on pilot basis during 11th Five Year Plan as a Central Sector scheme.

Mission and Objectives of the PURA Scheme:

Mission:
Holistic and accelerated development of compact areas around a potential growth centre in
a Gram Panchayat (or a group of Gram Panchayats) through Public Private Partnership (PPP) framework for providing livelihood opportunities and urban amenities to improve the quality of life in rural areas.
Objectives:
The primary objectives of the scheme are the provision of livelihood opportunities
and urban amenities in rural areas to bridge the rural – urban divide.

Strategy:

Public Private Partnership (PPP) – the Distinguishing Feature: The objectives of PURA
are proposed to be achieved under the framework of PPP between Gram Panchayats and private sector partner. Core funding shall be sourced from the Central Sector scheme of PURA and complemented by additional support through convergence of different Central Government schemes. The private sector shall also bring on board it’s share of investment besides operational expertise. The scheme would be implemented and managed by the private sector on considerations of economic viability but designed in a manner whereby it is fully aligned with the overall
objective of rural development. To attract the private sector, there is a need to design the scheme that
would be ‘project based’ with well defined risks, identified measures for risk mitigation and risks
sharing among the sponsoring authority (Gram Panchayat), Government of India, State Government
and the Private Partner.

Pilot-testing and Upscaling:

Through the implementation of proposed pilot projects, the unique features of this scheme would be tested on the ground that will provide lessons for upscaling in the future. Besides, the entire process shall help strengthen the institutional ability of a Gram Panchayat to undertake PPP and help pilot-test the viability of PPPs in rural infrastructure development. Based on the experience
of the pilots, the scheme would be suitably modified for scaling up in future.

Menace of corruption

The most menacing social element - corruption – has entered the realm of socio-economic and political being of our nation with a sense of naked realism. It has, now, come to rule the crust of the social, political, economic, administrative and moral existence of Indian democratic set up. It has become all-pervasive and normal way of our daily routine. No body is satisfied with what he already has; he is always in the look out to grab the other peoples’ possessions; he is willing to go to any length to get it. He wants to hoard all and go on amassing till his death. If the laws of the land are enforced three quarters of our most respected citizens would be in our country’s jails.


The politicians and administrators (civil servants), in India, have forgotten the basic dictum of democracy that power involves responsibility. They all have simply turned themselves into power mongers and given the Indian administrative and political infrastructure shape wherein they themselves can wield power without responsibility. This sense of power without responsibility has corrupted them. They forget the fact ill-gots do not bring peace and prosperity either to them or to the nation. The politician-criminal-bureaucrat nexus is like a blood-sucking monster that lives off everything around it. There are plenty of bookies, shylocks, and criminals. They are the people; most of us want to be.


Corruption has destroyed, prevented and corrupted just about everything that exists. Everyone is in competition. All are in a bloody race to lay hands on as much as is possible before it is all our. Corruption has become an established welfare and development funds are being cleverly and at times, openly, siphoned to personal and private accounts in and abroad.

We pay serious attention to the meance of raging corruption which, along with poverty, inequality, civil conflict, discrimination and violence, is a major issue that has not been adequately addressed. Corruption is lack of integrity, which could be financial, intellectual or moral. In the context of public life, we are primarily concerned with the lack of financial integrity. The corrosive negative impart of corruption is being increasingly realized. The World Bank defined corruption as use of public office for private gain. It is increasingly, therefore, in the context of public affairs and governance of the country that the issue of corruption is being discussed and highlighted.

Particularly after the end of the cold war, the corrosive impact of corruption is being increasingly realized. It is seen to be anti economic development, anti national and anti poor. The need for checking corruption in global business also emerged more or less simultaneously after the end of the cold war because, in the globalised economy, the need for ensuring good corporate governance was soon realized. Globalization has intensified corruption to the utmost.

We are therefore living in a world where when it comes to public governance,the need for integrity and checking corruption is increasingly realized as very valuable. Even in business, the need for honesty is being underlined by the focus on the principles of corporate governance. Ultimately, corporate governance depends on the two elements of transparency and accountability. Because, without transparency accountability cannot be enforced, and accountability in the case of an enterprise is to ensure that the interest of the shareholders and stakeholders are protected. the smart-ones, the heroes; and mod But the challenges facing the anti-corruption movement have changed markedly over the last decade. When the Transparency International was formed in 1993, national and international leaders wilfully ignored calls to tackle corruption. The Transparency International is an NGO based in Berlin, which annually publishes the grading of the countries on the basis of what is called Corruption Perception Index (CPI). Now the body of evidence is too large, and the pervasive impact of corruption recognised as too great, to ignore.

Arguments are advanced to justify corruption on the grounds of:

1. No country is immune to graft. As New Zealand and Finland demonstrate in the Global Corruption Report 2006, even countries that are consistently ranked in the top 10 in Transparency International's CPI experience lapses in accountability. Corruption affects all sectors of society, from construction, education and police, to p a r l i a - ment, and the judiciary. Corr u p t i o n continues to be an obstacle to investment, impedes effe c t i v e management of natural resource revenues and can lead to misappropriation of disaster relief funds.

2. While commenting on the inevitability of corruption in the revenue department, the great Kautilya in his Arthasastra said that expecting a revenue official to be dry honest was like expecting a person with honey on his tongue not to lick it. Thus, corruption is seen by several people as not only
inevitable but also natural.

3. Though corruption is a global phenomenon, there is a lot of difference in the degree of corruption among countries. From the ranking of India in the Transparency International's CPI, it is obvious that India is one of the more corrupt countries in the world.

4. On the other hand, citizen users of public services themselves are responsible for corruption. In fact, there is no active and sustained civil society movement against corruption. The efforts are sporadic, localized and short-lived and have never acquired the character of a large movement.

5. We can identify seven key factors that stand out as responsible for the widespread corruption in the system. These include: Lack of transparency and accountability in the system; lack of an effective corruption reporting mechanism; lack of honesty in official in the Government; acceptance of 'Bribe' as a way of life, custom and culture; ineffective ti-corruption institutions, including Police and Judiciary; poor economic policies; inadequate training and orientation of Government officials.


The exposure of several scandals highlight the increasing role played by civil society and the media in monitoring public funds and holding public officials to account. Corruption is no longer tolerated in some countries, and in others the media has played a key role in exposing it.

Another key question currently being asked is the kind of impact various 'standard' anti-corruption policy remedies have on corruption levels. Attempts are made to evaluate the extent to which asset declaration by public officials affects levels of corruption in countries around the world. They find that the longer such laws have been in place, particularly where there is a credible threat of prosecution for violating the law, and the more the information can be accessed publicly, the greater the link between asset declaration and less corruption.

India can certainly become a corruption-free country. There have been several countries with high rate of corruption, but have been able to turn around and tackle corruption effectively. Hong Kong was once notorious for corruption. In 1974, the Independent Commission against Corruption (ICAC) was set up and that organization has been able to bring a dramatic change in bringing down corruption in Hong Kong. Hence the first thing to be realised is that corruption can be tackled, as other countries have done it.

Corruption in India is the result of the vicious cycle starting with political corruption leading to bureaucratic corruption, business corruption, corruption in NGOs and finally the criminalization of politics. Corruption in India owes a lot to the fact that the democratic system we have adopted involves political parties collecting funds for election and other purposes. All political parties collect funds in cash. This is black money. Black money is the oxygen for corruption and corruption is oxygen for black money. Hence a political system which is dependent on black money can never take the initiative to fight corruption. It is the political corruption which lies at the starting point of the vicious cycle
of corruption in our country.

Bureaucratic corruption results from a number of factors. The permit licence raj for more than four decades after independence was a breeding ground for corruption and the root cause of corruption in the licence era were scarcity of goods and services, lack of transparency, the bureaucratic red tape and consequent need for speed money, the legal cushions of safety that was exploited by the corrupt and finally the tribalism among the corrupt. The business corruption flourish because in the permit licence raj, the only way of influencing the politicians and bureaucrats was by corrupt means. The recent phenomenon of the NGOs also shows that even this sector is not free from corruption. This all pervasive corruption has resulted in the loss of the legitimacy of the state institutions giving rise to criminalization in politics.

We have to think in terms of a systematic approach to tackle the issue of corruption by breaking the vicious
cycle starting with political corruption. For checking political corruption,the starting point should be the attack on black money and reform of the campaign funding laws. To reduce the elements of black money, laws like the Benami Transaction prohibition Act which were designed to check the use of black money must be vigorously implemented. The transaction laws like the Income Tax, Customs, and Excise should be made almost zero exemption laws so there is no question of exemption and the transparency element is enhanced. To prevent criminalization of politics, it is necessary to ensure that those candidates against whom criminal charges have been framed in court, should be prevented from contesting elections till they are cleared by the courts. The very delay in the judicial system needs to be tackled and made to work against the criminals in politics. These measures will go a long way in reducing the scope of corruption at the political level.

Bureaucratic corruption can be tackled if the following three point strategy is adopted. First, there is a need for simplification of rules and procedures so that the scope of corruption is reduced. Simple rules can be the first step forward. In fact, one problem we have in our country is the lack of the sunset clause in our laws, so that laws continue to be one the statute book long after their relevance has passed. These broad measures should go a long way in cleaning up our system. Secondly, there should be transparency and empowerment of the public. Fortunately, the current UPA government has passed the Right to Information Act. The very right to information can be a powerful tool for empowering citizens to ask questions and bring greater transparency in the system. This combined with widespread application of information technology can result in significant reduction of corruption. IT application and e-governance will bring in greater transparency, easier access for citizens for their rights to infor mation and in the way help in bringing down corruption. The third important aspect is prompt punishment of the guilty. The disciplinary authorities should take immediate action. Corruption might mean the difference between life and death for the poor and the needy. It is invariably the poor in society who are affected most by corruption because they often cannot afford bribes.

If we are serious about protecting human rights, as members of civil society we need to take into account the issue of corruption. The challenge is immense, and can only be tackled if we work together, making use of the moral and legal arguments provided by the international human rights framework, as well as the practical tools and strategies.

A pervasive challenge is to ensure that lessons on how to fight corruption a r e a d o p t e d with rigour and commitment by the people entrusted with power. Too often anti-corruption rhetoric is not followed up with action. Another challenge is to build stronger ties between the anti-corruption movement and movements concerned with other aspects of good governance. Though money lost directly to corruption is the most obvious and immediate cost, the negative effects of corruption in terms of quality of government and the well-being of a population are much longer term. The potential gains from fighting corruption are immense.

Corruption is a powerful force, but it is not inevitable or unavoidable. Diminishing its impact restores diverted resources to their intended purpose, bringing better health, nutrition and education to victims of corruption around the world, and with them, opportunity and hope.

The Supreme Court has forced the candidates to declare their criminal background, educational qualification and wealth details and this is the first step to bring in greater transparency in the political system. The Right to Infor- mation Acts is another good step taken and this combined with the initiative for e-governance should go a long way in improving transparency in our system and empowering the people.

The corrupts should realize that greed can destroy more than one person's life; it can ruin the lives of their loved ones. Corruption is that monster which needs to be destroyed or it will destroy the whole nations. Its elimination is not a thing to be undertaken lightly. This is the desperate situation and desperate situation requires desperate action. At present, only good governance can handle the situation properly. But a gross misconception of the concepts of rights and duties as well as that of the Government and governance have led the concept of good governance into a chaotic situation and narrowed its very image. The undue and misleading concepts of rights have thrown the concept of duties in the background. At the same time, the prevailing lop-sided concept of honesty has also harmed the cause of good governance. The dictum "honesty is the best policy" has narrowed down the scope and purpose of the honesty. In fact, the honesty should not be taken as a policy; it should be made a way of life.

Members of Parliament and state legislature should come from the people with fuller knowledge of grass-root realities; should make laws accordingly to suit the need and redress the ailments. For this elections, should be transparent, free and fair. The selection of contesting candidates should be based on their sound social footings; persons of criminal background, believers of corrupt practices and money-mongers should be kept at bay.

Political interference as well as politician-criminal-bureaucrat triangle should be put an end to. Much of the corruption is due to this triangular nexus. It is high-time that strict laws be passed in the Parliament to punish such pressure-groups and wipe them out of the mainstream of social and administrative circles. This is very unfortunate to note that the media-the forth estate of democracy has derailed and lost its pious and well-defined goal. It has taken a shape of booming industry and is hankering after power and wrongful gains. For corruption, it is not just the Government to blame; the people too are equally to be blamed. We have become selfish, have little respect for social obligations and can harm the nation and fellow-citizens for our petty gains. The so-called elite of society must be prepared to share the blame for rising corruption. They feel the stink of corruption; they criticize corrupt politicians and officers but never come out in the open. On the contrary, they show their respect to such corrupt people, where they are in their presence. Now, they should change themselves or be bold to openly decry the corrupt section of persons.

All concerned should join hands and make it a point to weed out corruption at any cost. There should be a staunch will to this effect. It is high time that we stand as rock to face and dismantle the edifice of the corrupt people, or they will lead the nation and the entire people to the ruinous end.

Judicial Reforms

The Criminal Procedure Code (Amendment) Act, 2008, which provides for sweeping changes in the criminal justice delivery system, came into effect from December 31, 2009. The Act, got President’s assent in January last year, but was kept in abeyance for about a year. It incorporates the recommendations of the Law Commission, the Justice Malimath Committee’s report and the guidelines issued by the Supreme Court from time to time to prevent overcrowding of jails with undertrials. Lawyers stoutly opposed the amendments relating to arrest, notice of appearance before a police officer and adjournments, and urged the government not to notify the amended law. So the Centre decided not to notify Sections 5, 6 and 21 (b). Under the new law, statements can be recorded through audio/video or other electronic means. In a bid to check witnesses turning hostile in important cases, an amendment to Section 275 provides that evidence of all witnesses in warrant cases — where the punishment is two years or more — may also be recorded by audio-visual means in the presence of the advocate of the accused. Right now, in all warrant cases, evidence of each witness is taken in writing either by his dictation in open court or, where he is unable to do so owing to a physical or other incapacity, under his direction and superintendence, by an officer of the court appointed by him in this behalf. This evidence has to be signed by the magistrate and forms part of the record. In Section 164, the amendment proposes that any confession or statement made under it may also be recorded by audio-video electronic means in the presence of the advocate of the person accused. Similarly, in Section 167 an amendment authorises a magistrate to extend further detention in judicial custody of an arrested person on production of the accused either in person or through the medium of electronic video linkage.


To deliver gender justice some amendments pertaining to women have been added. With the permission of court, a rape victim can engage an advocate to help the prosecution. Any victim’s statement will have to be recorded at the victim’s home or in a safe place or a place of her choice. As far as practicable, the statement should be recorded by a woman police officer in the presence of the victim’s parents or guardian or near relatives or social worker of the locality. Investigation of rape/child sex abuse must be completed in three months from the date when information was recorded by the officer in charge of the police station. An amendment in Section 173 proposes that the investigation in relation to rape of a child may be completed within three months from the date on which the information was recorded by the officer-in-charge of the police station. The amendment also proposes that rape victims shall be interrogated at the place of their choice be it at home or her relative’s place. Trial of rape cases shall also be held, as far as possible, by a woman magistrate and preferably in a fast track court and as far as possible, rape cases be investigated by female police officers only. Another important amendment states that if a pregnant woman is given death sentence, the High Court would automatically commute the death sentence to life. At present, death sentence awarded to a pregnant woman is not implemented till the time she has given birth to the child. The police officer will also need to inform the arrested person that he has a right to have a relative or a friend named by him or her informed of his arrest. When any person is arrested and interrogated by the police, he/she shall be entitled to meet an advocate of his or her choice during interrogation, though not throughout interrogation. The amendment in Section 54 makes it mandatory for the police to conduct examination of an arrested person by a medical practitioner.

Section 372 of the CrPC, as amended, stipulates that the victim will not need the nod of the law enforcement or prosecuting agency to appeal against a court order. Under the present arrangement, an appeal can be filed only after the prosecution gives the go-ahead. It will enable the victim to go on appeal against any order passed by the court acquitting the accused or convicting him of a lesser offence, or awarding inadequate compensation. Such appeal shall be made in the court where an appeal is ordinarily made against the order of conviction. The move comes against the backdrop of a raging controversy over the minor punishment handed out to former Haryana DGP S P S Rathore for molesting Ruchika, and abetting her suicide.

In a bid to make the police more accountable and transparent in the procedures, another amendment makes it mandatory for the State governments to display on the notice board kept outside the control rooms of every district, the names and addresses of the persons arrested and the name and designation of the police officers who made the arrests. The Act mandates the police officer making an arrest to bear his identification badge or tag. A memorandum of arrest shall be prepared, witnessed and countersigned. The person arrested shall be told that he/she has the right to inform a relative or friend. To protect the interests of the accused, it stipulates that an arrested person be examined immediately by a medical officer.

The law provides for compensation to victims for illegal arrest and police harassment. In coordination with the Centre, every State should prepare a scheme for providing funds for compensation to the victim or h i s / h e r d e p e n d a n t s who suffered loss or injury as a result of the crime and who require rehabilitation. Whenever a recommendation is made by a court for compensation, the District Legal Service Authority or the State Legal Service Authority shall decide the quantum of compensation. If the trial court is satisfied that the compensation awarded under Section 357 of the Cr. PC is not adequate, or the cases end in acquittal or discharge or the victim has to be rehabilitated, it may recommend compensation. Under Section 309, an amendment makes adjournment of cases in the court more difficult.

By far the most significant amendment is proposed in Section 41 of the Cr.PC which lays down certain conditions on the police officer for arresting a person accused of committing a cognisable offence that carries imprisonment that can be extended up to seven years. The IPC provides for punishment up to seven years for offences including attempt to commit culpable homicide, robbery, attempt to suicide, kidnapping, voluntarily causing grievous hurt, cheating, outraging a woman’s modesty and death caused by negligence and dowry harassment. The amendment provides that the police officer may, instead of arresting the person concerned, issue a notice of appearance, asking him to cooperate with the police officer in the probe. No arrest will be made in a non-cognisable offence except under a warrant or order of a magistrate. The amendment provides that the reasons for arrest should be sound and recorded in writing by the police officer. Where such a notice is issued to any person, it shall be the duty of that person to comply with it and arrest can be made only if the person fails to do so. The new amendment can be misused over its discretionary powers to shield the culprits by the police department as well as politicians and could give a free hand to scamsters, unscrupulous elements and other offenders without any fear of being arrested. It would remove fear from the minds of criminals, who will misuse the provisions under the garb of personal liberty. But it aims at ending arbitrary arrests and detention by police. The amendment is expected to reduce corruption and extortions in police stations and will also decrease the number of false complaint. The police (investigating officers) is required to give reasons and record those reasons in writing for making an arrest. It is not like if compliance in a case is there, the person should be arrested. Independent studies indicated that upto 60 per cent of the arrests made in the country were needless since the detained persons did not prove to be useful for the purpose of investigation or trial. Amongst the many concerns, a consistent stand has been the negative image of the police in the mind of the ordinary citizen. The main reason for this is the high incidence of arbitrary arrests and custodial abuse — even for minor offences. More often than not, it is poorer people who are more likely to be arrested, detained and mistreated, even in the course of routine investigations.

Experience shows that worst violations of human rights take place during the course of investigation, when the police with a view to secure evidence or confession often resorts to third degree methods, including torture, and adopts techniques of screening arrest by either not recording the arrest or describing the deprivation of liberty merely as a prolonged interrogation. The amendments are “forward looking and humane,” which, would ease pressure off the police, courts and jails.

National Policy on Bio-fuels

The Government has approved the introduction of “Maharatna” category for Central Public Sector Enterprises (CPSEs). The current criteria for grant of Navratna status are size neutral. Over the years, some of the Navratna companies have grown very big and have considerably larger operations than their peers. It was felt that these CPSEs which are at the higher end of the Navratna category and have potential to become Indian Multinational Companies (MNCs), can be recognized as a separate class, i.e. ‘Maharatna’. The proposed higher category will act as an incentive for other Navratna companies, provide brand value and facilitate delegation of enhanced powers to CPSEs. The six-eligibility criteria and procedure for grant of Maharatna status may be enumerated as:

a) Having Navratna status;
b) Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations;
c) An average annual turnover of more than Rs.25,000 crore during the last 3 years;
d) An average annual net worth of more than Rs.15,000 crore during the last 3 years
e) An average annual net profit after tax of more than Rs.5,000 crore during the last 3 years
f) Should have significant global presence/international operations The procedure for grant of Maharatna status as well as their review is proposed to be similar to that in vogue for the grant of Navratna status. The introduction of the above scheme will not entail any additional expenditure on the part of the zGovernment.

Enhanced powers to Maharatna CPSEs The Boards of Maharatna CPSEs in addition to exercising all powers to Navratna CPSEs, will exercise enhanced powers in the area of investment in joint ventures/subsidiaries and creation of below Board level posts. The Boards of Maharatna CPSEs will have powers to
(a) make equity investment to establish financial joint ventures and wholly owned subsidiaries in India or abroad and
(b) undertake mergers and acquisitions, in India or abroad, subject to a ceiling of 15 per cent of the net worth of the

concerned CPSE in one project, limited to an absolute ceiling of Rs.5,000 crore (Rs.1000 crore for Navratna CPSEs). The overall ceiling on such equity investments and mergers and acquisitions in all projects put together will not exceed 30% of the net worth of the concerned CPSEs. In addition, the Boards of Maharatna CPSEs will have powers to create below Board level posts up to E-9 level.

Implications: The main objective of the Maharatna Scheme is to empower mega CPSEs to expand their operations and emerge as global giants. With the introduction of Maharatna Scheme, the Department of Public Enterprises has achieved one of the three tasks identified to be completed within first 100 days programme in respect of their Department. It will ensure greater autonomy and decision-making. Background: The Government had introduced the Navratna scheme, in 1977, to identify Central Public Sector Enterprises (CPSEs) that had comparative advantages and to support them in their drive to become global giants. The Boards of Navratna CPSEs have been delegated powers in the areas of (i) capital expenditure, (ii) investment in joint ventures / subsidiaries, (iii) mergers and acquisitions, (iv) human resources management, etc. At present, there are 18 Navratna CPSEs. Of the 18 existing Navratnas six are likely to be elevated to the Maharatna status. These are the three integrated petroleum companies — Indian Oil, Hindusthan Petroleum and Bharat Petroleum — NTPC, Oil and Natural Gas Corporation and Steel Authority of India.


e-Gazette
NIC developed e-Gazette (digital RajPatra at http://himachal.nic.in/ egazette) for Government of Himachal Pradesh, which is a first Online Digital Gazette and is not printed on paper. The State Government has discontinued the paper Gazette. This initiative is ecofriendly, cost effective,prompt and increasing efficiency at the Controller of Gazette level and provides online search based Gazette to general public. The initiative has won the National e-Governance Award too in Feb 2009 for process-reengineering. The e-Samadhan (Onilne Public Grievance Redressal system at http://esamadhan.nic.in) has been developed and implemented by NIC for the State of HP with the twin objectives of providing the citizens with an anywhere, anytime grievance redressal mechanism and at the same time ensuring its better monitoring at all levels of the Government.
“PRAJAVANI” a web based Petition Monitoring System enabling citizens to submit their petitions through Kiosks and redressal from the District Collectorate has been successfully implemented and extended.

Politics of reorganization of states Needs complete revaluation

The Centre’s decision to create a separate state of Telangana has caused outright uproar in theThe opposition leader Chandrababu Naidu changed his stand over Telangana after 40 of his MLAs bowed out disapproving his views.

Bihar Chief Minister Nitish Kumar said that there should be a reorganisation of States again and favoured the constitution of a second States Reorganisation Committee (SRC). While favouring both bifurcation as well as unification according to developmental demands, Nitish Kumar suggested that “larger States like Maharashtra, West Bengal and Madhya Pradesh should be reorganised”, but added that “there should not be any State smaller than Bihar.” It has to be noted that the demand for Telangana has renewed the demand for regional trifurcation of Bihar into Mithilanchal, Seemanchal and Bhojpur. In fact, the demand for a separate State of Seemanchal, which proposes to in- clude 7 districts of Eastern Bihar, arose immediately after the division of Bihar. Former Union Minist e r Mohd. Taslimuddin,who first raised the demand for Seemanchal in 1992, said that the “time was ripe for raising the issue of smaller States.”

The proponents of a separate State of Bhojpur desire a State to be carved out from 23 districts of Bihar, Chhattisgarh, Madhya Pradesh and Uttar Pradesh, ostensibly for the development of the 12 crore Bhojpuri– speaking population, with Varanasi as its Capital.

The BJP is apparently in a state of confusion over her demands for the separate states in UP because of the party’s stand against further division of Madhya Pradesh to pave the way for Bundelkhand.

In UP Mayawati had never prominently figured with the demands for the creation of smaller states before her victory in the 2007 Assembly elections. After the formation of her current government, Mayawati spoke in favour of the division of UP into smaller states. In October 2007, she had publicly supported the demand for the creation of Purvanchal and even tried to make it an election plank during her campaign in the last Lok Sabha elections. Mayawati stands a good chance to woo the traditional SP voters of eastern UP in the name of a separate Purvanchal. “If the Samajwadi Party’s base shrinks in eastern UP, it would be a benefit of the BSP.

PURVANCHAL
UP’s former planning minister Shatrudra Prasad, former Union minister Kalpnath Roy, Shyamdhra Mishra, Satya Prakash Malviya and Shyam Lal Yadav demanded the separate state under the banner of Purvanchal Banao Manch (PBM), which was formed on November 3, 1996 and is active in Varanasi region. Another organisation, Purvanchal Rajya Sthapana Samitee (PRSS), has been active in Gorakhpur region. P K Lahiri, PRSS convener, said the organisation had approached Gandhian leader Subba Rao to support the demand. A political party, Purvanchal Banao Dal, was launched in 1994.

BUNDELKHAND
The struggle for a separate Bundelkhand is more than two decade old. Although there are smaller organisations in favour of the demand, it is the Bundelkhand Mukti Morcha (BMM).KODAGU
Kodagu is one of the most famous hill station in India proudly nicknamed as "Kashmir of South"/ "Switzerland of India" etc.

Argument in favour of the a separate state:

(1) Kodagu was a separate Part C state at one time. This was because we had a separate identity with regard to geography, culture and ethnicity. Even though Kodagu was merged with Karnataka in 1956, we have a right to demand, and the Government has a duty to ensure that our culture and ethnicity is protected. This is only possible by ensuring that the indigenous communities are not separated from their lands.

(2) In the Andaman and Nicobar Islands, most of the land is not available for purchase for people from outside the Union Territory. This has been done to protect the indigenous communities such as the Onges, Jarawas and Sentinels that are heading towards extinction. Even the relatively larger communities of Gowdas and Kodavas are just a couple of lakhs.

(3) Kodagu is the birthplace and the cachment of River Cauvery. And Cauvery is the life line that sustains millions of people in South India. Protection of the environment and ecosystems of Kodagu is therefore in the National Interest, and generally, it is only the indigenous communities who have the genuine love for the land and who will protect the ecology and environment of Kodagu, while outsiders who have come in with solely commercial interests will soon devastate Kodagu by mindless exploitation of its natural resources.

HARIT PRADESH OR PASCHIMANCHAL

The demand for Harit Pradesh is more than a decade old. Sources in the BSP said Mayawati had supported the demand 12 years back at a public meeting in Mathura. In 1955, the State Reorganisation Committee had nodded for the division of UP into two parts. So, we won’t take rest before getting our demand fulfilled.”

SONANCHAL
There is also a demand for the creation of Sonanchal comprising Mirzapur, Sonbhadra and Chandauli. In 2005, Sonanchal Sangharsh Samiti had organized meetings in support of the demand. This organisation is headed by Hariram Chero.

GORKHALAND

The demand for a separate administrative set-up for Gorkhas of India was first voiced in 1907. But it was revived on full scale in 1986 by the Gorkha National Liberation Force (GNLF). The main demand was to have a separate state because under the West Bengal Government, this area has been neglected and regional disparities have been increased. The formation of DGHC led to peace for some time in area. Under the DGHC fair amount of autonomy was given to deal with welfare and general administration. The GJM was formed by Bimal Gurung, a close associate of Subhas Ghising, president of the Gorkha National Liberation Force (GNLF). He was a councillor of the Darjeeling Gorkha Hill Council (DGHC). The relations between them became worse in 2007 over the attempt to extend 6th Schedule status to Darjeeling. Under the 6th Schedule of the Indian Constitution, certain tribal-majority areas are given autonomy in administration. While the GNLF wanted the 6th Schedule status with enhanced powers for the DGHC, the GJM desired full statehood. The GJM has not only intensified the movement but also has expanded area of the proposed Gorkhaland by not only incorporating the three hills subdivisions of Darjeeling, Kalimpong and Kurseong, but also Siliguri and parts of the Dooars that fall in Cooch Behar and Jalpaiguri districts in North Bengal, extending up to the River Sunkosh on the border with Bhutan. By expanding the areas, the GJM has not only managed to get the support of the Gorkhas but also of the Adivasis, who form a substantial percentage of the population of the Dooars. They are not Gorkhas, yet many Marwaris, Bengalis, Biharis and others who have lived in the Darjeeling hills of West Bengal for decades have been braving the rains and the government's ire to publicly express support for the movement for Gorkhaland. The Gorkhaland movement has also found support among many Muslims, who are a religious minority in the hills.

TELANGANA
Why statehood for Telangana?

(a) Due to unemployment and failure to implement promises of development, dissatisfaction grew among people, agitations spread and regional imbalances, due to uneven development, continued.

(b) The agreement at the time between Congress leaders of both the regions on safeguards and for development of Telengana and later six point formulae were not implemented.

(c) The Andhra state was formed in 1953 with its capital in Kurnool. In 1956, ten districts of Telangana of the former Hyderabad state, were merged with Andhra and an integrated state of Telugu people, Andhra Pradesh, was created. The capital was shifted to Hyderabad by way of compensation since the people of Telangana favoured a separate existence – this was supported by the State Reorganisation Committee that had recommended linguistic states. Telangana was the only exception it made to the linguistic principle.
(d) Telangana was a bastion of feudal landlordism and was, compared to coastal Andhra, backward in educational and infrastructural facilities.

(e) The most vocal are the middle classes and educated sections who are now rallying behind the demand for a separate state.

(f) The acute problems of unemployment, lack of irrigation and education facilities and socio-economic backwardness are all caused by bourgeois landlord policies which have distorted priorities.

(g) The growing disparity between Telengana region and Andhra region has become more palpable. The extreme rural-urban disparity has been manifested in the form suicides of farmers in Telangana region and cyber-growth in Hyderabad.

CENTRAL TRAVANCORE

The proposed Central Travancore Union Territory should carve from today's Kerala state. The Union territory contains today's Alappuzha, Pathanamthitta, Kottayam districts, and parts of Kollam, and Idukky district. Alappuzha, Kottayam, or Tiruvalla can designate as Capital of this Union Territory. Central Travancore region is one of the most advanced regions in India. This region is a Congress- Kerala Congress citadel. Peoples are mostly Right-wing Conservatives (Syrian Christians, Nairs, Ezhavas, etc). Central Travancore does not want to suffer because of the misdeeds of the peoples in other parts of Kerala.

Hence, we want a separate State or Specially Administered Territory. Central Travancore is a better destination for Smart City. Central Travancore government will encourage IT, ITES, BPO, Biotech, Food Processing, Tourism, Financial Services, Insurance, and Medical sector to invest in this region.

HISTORY OF REORGANISATION OF STATES

(1) In 1948, S.K.Dhar Commission was constituted to re-examine the reorganization of states on linguistic basis. The Commission preferred reorganization for administrative convenience rather than on linguistic basis.

Various Committees:

(1) S.K. Dhar Commission: 1948: to examine the case for the reorganization of states on linguistic lines

(2) Jawaharlal Nehru, Vallabha Bhai Patel, and Sitaramayya (JVP) Committee: 1948: to reassess the situation: too did not favour a linguistic basis.

(3) Fazl Ali Committee with Pd. H.N.Kunzru and K.M.Pannikar: 1953: to examine the case for the reorganization of states on historical basis. In 1953, the first linguistic state came into being Andhra Pradesh, creating by separating the Telugu speaking areas from the state of Madras.

(4) State Reorganization Commission (SRC): 1956: on linguistic basis: Andhra Pradesh became the first State on this basis.

By 7th Amendment Act. By this time 14 states (Andhra Pradesh, Assam, Bihar, Bombay, Jammu and Kashmir, Kerala, MP, Madras, Mysore, Orissa, Punjab, Rajasthan, UP, West Bengal) and 6 UTs (Andaman and Nicobar Islands, Delhi, HP, Laccadive, Mincoy

and Amandivi, Manipur and Tripura).

CONSTITUTIONAL PROVISIONS

India started its post independence days with 14 states and today it has 28 states. The makers of the Indian Constitution empowered the Union Parliament to recognize a new state by a simple procedure, as provided in Article 3 of the Constitution. The Part I and Article 1-4 exclusively deals with these provisions. The provisions may be enumerated as:

(1) No Bill for the purpose can be introduced in either House of Parliament except on the recommendation of the President; (Article 3)

(2) As per the 5th Amendment Act, 1955, the period of the Bill referred by the President to the Legislature of that State for expressing its view will be specified by him (President) - Article 3

(3) As per 8th Amendment, 1966, the Bill may be introduced even though the President has not received the views of that State

(4) As per Supreme Court verdict in Ramkishore v Union of India, 1966, the term ‘State’ include Union Territory also.

(5) As per Babulal v State of Bombay, 1960 once the original Bill is referred to the State or States, no fresh reference shall be required every time an amendment to the Bill is moved.

(6) In the case of Jammu and Kashmir, no Bill can be introduced in Parliament without the consent of the Legislature of the State.

ADVANTAGES OF A SMALL STATE

Performance of newly created states It is important to note that all three new states have grown fabulously fast. Uttarakhand has averaged 9.31 per cent growth annually, Jharkhand 8.45 per cent, and Chattisgarh 7.35 per cent. At the same time, it has to be referred that all three states belong to what was historically called the BIMARU zone. This has encouraged the demand to create new states in India.

(1) After independence, the role of Government has changed: from a pure law and order-maintaining agency to a development sponsoring organization. This requires more elaborate Government machinery. The smaller states would be more viable in this regard.

(2) The smaller states would be more effective for the fiscal management.

(3) The popular needs, demands and the problems of the people in this region could be articulated and paid attention by the Government, much more than the past.

(4) If the North-East have not shown better results than the Himachal Pradesh and Haryana have definitely shown better results.

(5) Even with the creation of 3 new states, India still has just over half as many states as the USA, with 4 times population.

(6) This allows for the greater competition among States as well as for more experimentation and innovation.

(7) The smaller states will have relatively more homogeneous preferences.

(8) In fact, India’s problem of centralization lies not between Centre and the State government but between State Government and the Local Bodies. This problem would be less in the smaller states.

(9) The quality of governance would be better: vertically, there are likely to be fewer hierarchies in the administrative structures, which improve the quality of information that decision makers receive; and horizontally, the span of control is smaller, allowing for greater focus.

DISADVANTAGES OF A SMALL STATE

(a) It will further lead to regional imbalances in terms of infrastructure facilities:

(i) Vananchal would means a state with no agricultural land, but full of forest and minerals and it would make Bihar only with agricultural land with no minerals and forests;

(ii)Chhattisgarh is backward, there is lack of basic facilities like communication, education, etc, with virtually no industry;

(iii) Uttarakhand would have tourism as the only source of income.

(b) In a heterogeneous society, creating new states would lead to the unlimited demand of states: demands for Eight states are already in the offing: Purbanchal, Harit Pradesh and Bundelkhand in Uttar Pradesh; Bodoland in Assam; Gorkhaland in West Bengal; Telangana in Andhra Pradesh; Vidarbha in Maharashtra; Saurashtra in Gujarat.

(c) It will add additional wasteful ad- ministrative expenses in making of capitals and buildings.

(d) Only by creating new states is no panacea for India’s problems and evidence from the Northeast could be cited to demonstrate that smaller states do not necessarily result in better economic performance.

(e) It may give rise to new friction between state and central power too.

BALANCED APPROACH

There are no perceptible relations between functioning and the size of the state. It depends on a combination of factors. The most important factor is the techno-economic feasibility of the area. There should be a balance between the existing resources and optimum utilization of those resources. Any disbalance may lead to regional disparity and a state of relative deprivation. Since India is a classic plural society, therefore, there should not be any fixed basis for reorganisation of states. Article 3 of the Indian Constitution must be amended in order to make it compatible to meet new conditions. The hasty process of reorganisation should be done away. Before going for a change, there should be complete survey of the affected area. All the repercussions must be calculated. Its impact on the economy, culture, and ethnicity should be analysed. Therefore, a proper techno-economic survey of the area, social-cultural homogeneity and political manageability of the area should be simultaneously be considered. There should be holistic survey at the grass-root level. If the basis of reorganisation is properly determined then the size does not matter at all. At the same time, Indian legislators must realize that there is an imperative need to evaluate the sensitive issues of internal security and the time is running out. In democracy, certain decisions are delayed because consensus is every time not possible. But in certain important issues, decisions are to be taken immediately to ward off intractable situations. This may be the reason of the incorporation of Article 123. Each any every demand of the separate state must be calculated on the basis its merit and requirement. After all, good governance is the top priority of every political system. If it fails, then no body at the helm of accountability can be excused.

Technology Development and Related Programmes

The Department of Science and Technology under its scheme on "Drugs and Pharmaceuticals Research" supports collaborative Research and Development projects jointly submitted by drug companies and the academics national R&D institutes. The programme aims towards the development of new drugs and cleaner process technologies for known drugs/key intermediates for drugs. The programme covers all systems of medicine - Allopathic, Ayurvedic, Homeopathic, Siddha and Unani. In addition to this, National Facilities essential to undertake R&D have also been set up under this programme. Specific mention may be made of the Medium Throughput Facility, Pharmacological Testing Facility and Centre for Pharmaco-kinetic and Metabolic Studies at CDRI, Lucknow, Immunomodulatory Potential Testing Facility at IICB, Kolkata; National Facility on Transgenic and Gene Knockout Mice at CCMB, Hyderabad; and National Centre for Bio availability at National Institute of Pharmaceutical Education & Research, Mohali. So far 45 projects including 7 national facilities have been funded by creating industry-institutional alliances among 20 institutions (national labs. and universities) and 19 drug industries. The programme has resulted filing of 12 patents in India and abroad.

The Department has guided 24 socio-economic ministries in the setting up of Science and Technology Advisory Committees (STACS) for formulation of long/short-term joint technology development programmes. For coordinating the efforts of STACs and to take stock of activities of various ministries, the Department has also set up an Inter-Sectoral S&T Advisory Committee under the Chairmanship of Secretary, DST. A quarterly newsletter STAC SCAN is being brought out by IS-STAC to disseminate information.

The Department has been catalytic in identifying, formulating and implementing a number of technology development programmes with the help of industries and socio-economic ministries. Efforts of the Department in this direction have helped in initiation of multi-institutional programmes in the emerging areas of technology. As a part of this programme, projects were continued to be supported in the areas such as instrument development, advanced materials, critical technology, sugar technology, fly ash utilisation, advanced composites and in higher technical education.

The Department has set up an autonomous body- Technology Information, Forecasting and Assessment Council (External website that opens in a new window) (TIFAC). The main objectives of TIFAC include generation of Technology Forecasting, Technology Assessment and Techno Market Survey (TMS) documents and enabling a Technology Information System. TIFAC has brought out more than 280 specialised reports covering most of the sectors of economic relevance, ranging from Agriculture to Advanced Sensors and from materials to biotechnology. These reports have also focused on the upcoming and frontier technologies like transgenic seeds, biochips, RDNA products, transgenic animal models, surface engineering, etc. The reports provide a vision and options for technology trajectories for industries, institutions, entrepreneurs and experts. TIFAC has also brought out a series of reports giving a comprehensive picture of 16 areas of scientific research carried out in our country in last 50 years.

TIFAC carried out a long-term Technology Vision (Forecasting) exercise known as "Technology Vision for India up to 2020", covering 17 sectors important to Indian economy. The reports include realistic technology road maps for achieving desired goals as well as intermediate milestones. A few of the recommendations of these reports are being implemented through projects in different sectors. This has resulted in follow up actions on a limited scale towards demonstration projects of technology for wider replication in six identified sectors namely: Agriculture and Agro Food Sector, Road Construction and Transportation Equipment, Upgradation of Textile Machinery/Textile Industry, Health Care Services and Herbal/Natural Products, Upgradation of Science, Engineering and Professional Institutions relevant to Industry (Mission REACH), and Targeted Programmes in other important areas like Hydrogen Energy, Waste to Energy, Emerging Energy Sectors, Electric Power, Rural Connectivity, SMEs, etc.

Mission REACH has been launched by TIFAC with the objective of upgrading select science and engineering colleges so as to create Centres of Relevance and Excellence (COREs) in achieving new heights in selected institutions at par with the world's best. 26 such centres have been set up across the country on a wide range of emerging areas of relevance to industry & society. A unique features of these TIFAC-COREs is a very active participation of Industry in the form of training programmes, research projects and consultancy. Details of Institutions/Areas, etc. could be seen on www.missionreach.org .

A Patent Facilitating Centre (PFC) has been set up in TIFAC with the objectives of introducing patent information as a vital input in the process of promotion of R&D programmes, provide patenting facilities for scientists/ technologists of the country on a sustained basis, keep a watch on developments in the areas of intellectual property rights, create awareness and understanding relating to patents and undertake studies and analysis of policy related to TRIPS Agreement and other agreements under World Trade Organisation, etc.

The Centre has been organising awareness workshops to sensitise scientists/technologists from various universities, government, R&D institutions and industries. The PFC has also brought out two CD ROM databases containing data from 1995. The website www.indianpatents.org.in provides comprehensive details of the service and facilities provided by the PFC. The PFC has also brought out a report on patenting of micro-organisms and has developed a video programme on patent awareness titled "Patents Made Easy".

To promote innovation among entrepreneurs, a new golden jubilee initiative called "Technopreneur Promotion Programme (TePP)" has been initiated and implemented jointly by TIFAC with DSIR. The main thrust of TePP is to tap the vast untapped innovative potential of the Indian innovators. The support is provided to projects of individual innovators towards scaling up the idea/invention/know-how/designs to working models/prototypes/pilot plants. Besides financial support, the endeavour is to link and couple them to the most appropriate existing R&D facilities and expertise; assist them in patent search/filing of patents; interface for tying-up with financial institutions for commercial exploitation, etc.

To encourage grass-root innovators, National Innovation Foundation (NIF) of India has been established with the main goal of providing institutional support in scouting, spawning, sustaining and scaling up grassroots level green innovators and helping their transition to self supporting activities.

INDIAN STATE BIRDS

• West Bengal
• White-throated Kingfisher
• Halcyon smyrnensis

• Arunachal Pradesh and Kerala
• Great Hornbill
• Buceros bicornis

• Uttar Pradesh
• Sarus Crane
• Grus antigone

• Himachal Pradesh
• Western Tragopan or Western Horned Tragopan
• Scietific name: Tragopan melanocephalus

• Lakshadweep
• Sooty Tern
• Onychoprion fuscatus

• Punjab
• Northern Goshawk
• Accipiter gentilis

• Manipur and Mizoram
• Mrs Hume's Pheasant
• Syrmaticus humiae

• Orissa
• Indian Peacock
• Pavo cristatus

• Andhra Pradesh, Bihar and Karnataka
• Indian Roller
• Coracias benghalensis

• Rajasthan
• Indian Bustard
• Ardeotis nigriceps

• Chhattisgarh and Meghalaya
• Hill Myna
• Gracula religiosa

• 
  

  • Uttaranchal
  • Himalayan Monal
  • Lophophorus impejanus

  Maharashtra and Tripura
• Green Imperial Pigeon
• Ducula aenea

• Gujarat
• Greater Flamingo
• Phoenicopterus roseus

• Tamil Nadu
• Emerald Dove
• Chalcophaps indica

• Nagaland
• Blyth's Tragopan
  Tragopan blythii

• Sikkim
• Blood Pheasant
• Ithaginis cruentus

• Jammu & Kashmir
• Black-necked Crane
• Grus nigricollis

• Goa
• Black-crested Bulbul
• Pcnonotus melanicterus

• Haryana
• Black Francolin
  Francolinus francolinus

• Jharakhand
• Asian Koel
• Eudynamys scolopaceus

• Madhya Pradesh
• Asian Paradise-Flycatcher
• Terpsiphone paradisi

 

• Delhi
• The House Sparrow
• Passer domesticus

Andhra Pradesh Industrial Development Corporation Limited

Andhra Pradesh Industrial Development Corporation Limited was established on 16th December 1960, by the Government of Andhra Pradesh for planned development of medium and large scale industries in the state. Today, it has an authorized capital of Rs. 110 Crores and paid up capital of Rs. 96.23 Crores.

Mission

Enriching society through sustained industrial growth.

Objectives

Identify and promote entrepreneurial talent for comprehensive industrial development. Conceptualize exploitation of resources for industrialization. Ensure economic, financial and social viability of the promoted projects. Earn a reasonable rate of return. Function as an extended arm of Government/National Development Banking Institutions.

Activities

Project promotion - Generation and Implementation of New Project Ideas. Equity Participation. Extending Project Finance. Working Capital Facilities : 1. Bills Discounting 2. Medium / Short Term Loans Venture Capital Fund for IT and Bio-technology industries. ENTIRE (Entrepreneurs Nucleus and Total Investment Requirement Eden) : 1. Escort Services 2. Consultancy 3. Implementation of Project

RE-SCHEDULE OF SCREENING TEST FOR GROUP-I SERVICES

RE-SCHEDULE OF SCREENING TEST FOR GROUP-I SERVICES

It is hereby informed that based on the request made by the Syndicate Bank for postponement of Screening Test for Group-I Services scheduled to be held on 29/08/2010 in view of Syndicate Bank scheduling the written test for Probationary officers on the same date i.e., on 29/08/2010, Commission decided to postpone the Screening Test for Group-I Services (Notification No. 39/2008 & 10/2009) to 05/09/2010.

DISASTER MANAGEMENT

The Disaster Management Support (DMS) Programme of ISRO, provides timely support and services from aero-space systems, both imaging and communications, towards efficient management of disasters in the country. The DMS programme addresses disasters such as flood, cyclone, drought, forest fire, landslide and Earthquake. These include creation of digital data base for facilitating hazard zonation, damage assessment, etc., monitoring of major natural disasters using satellite and aerial data; development of appropriate techniques and tools for decision support, establishing satellite based reliable communication network, deployment of emergency communication equipments and R&D towards early warning of disasters.
To support the total cycle of disaster/ emergency management for the country, in near real time, the database creation is addressed through National Database for Emergency Management (NDEM), a GIS based repository of data. NDEM is envisaged to have core data, hazard-specific data, and dynamic data in spatial as well as aspatial form.
Airborne ALTM-DC data acquisition is being carried out for the flood prone basins in the country. The development of flight model of C band DMSAR is nearing completion. SAR data was acquired over selected basins using Development model of DMSAR. Towards providing emergency communication for disaster management activities, and at the behest of Ministry of Home Affairs (MHA), ISRO has set up a satellite based Virtual Private Network (VPN) linking the National Control Room at MHA with DMS-DSC at NRSC, important national agencies, key Government Offices in Delhi and the Control Rooms of 22 multi-hazard-prone States. Further ISRO has developed and deployed INSAT Type-D terminals (portable satellite phones), INSAT based Distress Alert Transmitter (DAT) for fishermen, Cyclone Warning Dissemination System (CWCS) and DTH based Digital Disaster Warning System (DDWS) in disaster prone areas.
As part of R&D support to DMS for remote sensing applications, work on Tropical Cyclone Track intensity and landfall prediction, Earthquake Precursor studies, Coastal Vulnerability mapping and Early Warning of Landslides are being carried out. The DMS programme is also supporting the many international initiatives by sharing data and information. Through International Charter “Space and Major Disasters” and Sentinel Asia (SA) initiative for supporting disaster management activities in the Asia-Pacific region, ISRO is providing IRS datasets and other information for use during major calamities.

Common Glossary Related to Indian Economy

Union Budget
Under Article 112 of the constitution, a statement of estimated receipts and expenditure, called the ‘Annual Financial Statement’, has to be placed before Parliament for each financial year.

This Statement is the main budget document. It is an estimate of the Government’s revenue and expenditure at the end of a fiscal year, which runs from April 1 to March 31.

A Union Budget is the most comprehensive report of the Government’s finances, in which revenues from all sources and outlays to all activities are consolidated. The budget also contains estimates of the Government’s accounts for the next fiscal, called budgeted
estimates.

Capital Budget
The capital budget consists of capital receipts and payments. Capital receipts are Government loans raised from the public, Government borrowings from the Reserve Bank and treasury bills, divestment of equity holding in public sector enterprises, loans received from foreign Governments and bodies, securities against small savings, State provident funds, and special deposits.

Capital payments refer to capital expenditures on construction of capital projects and acquisition of assets like land, buildings machinery and equipment.

It also includes investments in shares, and loans and advances granted by the Central Government to State Governments, Government companies, corporations and other parties.

Revenue Budget
The revenue budget consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies.

The non-tax revenue sources include interest on loans, dividend on investments etc.

Revenue expenditure is the expenditure incurred on the day-to-day running of the Government and its various departments, and for services that it provides.

It also includes interest on its borrowings, subsidies and grants given to State Governments and other parties.

This expenditure does not result in the creation of assets. In case the difference between revenue receipts and revenue expenditure is negative, there is a revenue deficit.

It shows the shortfall of the Government’s current receipts over current expenditure. If the capital expenditure and capital receipts are taken into account too, there will be a gap between the receipts and expenditure in a year. This gap constitutes the overall budgetary deficit, and it is covered by issuing 91-day Treasury Bills, mostly held by the Reserve Bank.

Revenue surplus is the excess of revenue receipts over revenue expenditure.

Fiscal Deficit
This is the gap between the Government’s total spending and the sum of its revenue receipts and non-debt capital receipts.

It represents the total amount of borrowed funds required by the Government to completely meet its expenditure. The gap is bridged through additional borrowing from the Reserve Bank of India, issuing Government securities etc. Fiscal deficit is one of the major contributors to inflation.

Primary Deficit
The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Government’s borrowings are going towards meeting expenses other than interest payments.

Finance Bill
The Government proposals for the levy of new taxes, alterations in the present tax structure, or continuance of the current tax structure are placed before the Parliament in this bill. The bill contains amendments proposed to direct and indirect taxes.

Direct and Indirect Taxes
Direct taxes are levied on the incomes of individuals and corporates. For example, income tax, corporate tax etc. Indirect taxes are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.

Some Other Terms
Central plan outlay : It refers to the allocation of monetary resources among the different sectors in the economy and the ministries of the Government.

Public account : The Government acts like a banker for transactions relating to provident funds, small savings collection etc.

The funds that the Government thus receives from its bank like operations are kept in the public account, from which the related disbursements are made.

These funds do not belong to the Government and have to be paid back to the persons and authorities who have deposited them.

Ad-valorem duties : These are the duties determined as a certain percentage of the price of products.

Balance of payments : Balance of payments is the difference between the demand for, and supply of, a country’s currency on the foreign exchange market.

Budget estimates : It is an estimate of fiscal and revenue deficits for the year. The term is associated with the estimates of the Centre’s spending during the financial year and the income received through taxes.

Capital receipt : Loans raised by the Centre from the market. Government borrowings from the Reserve Bank and other parties, sale of Treasury Bills, and loans received from foreign governments form a part of capital receipt.

Other items that also fall under this category include recovery of loans granted by the Centre to State Governments and proceeds from disinvestments of Government stake in public sector undertakings.

Consolidated fund : Under this, the Government pools all its funds together.

It includes all Government revenues, loans raised, and recoveries of loans granted.

All expenditure of the Government is incurred from the consolidated fund and no amount can be withdrawn from the fund without authorisation of the Parliament.

Contingency fund : This is a fund used for meeting emergencies where the Government cannot wait for an authorisation of the Parliament. The Government subsequently obtains Parliamentary approval for the expenditure. The amount spent from the contingency fund is returned to the fund later.

Monetary policy : This comprises actions taken by the central bank to regulate the level of money or liquidity in the economy, or change the interest rates.

Active Market
This is a term used by stock exchange which specifies the particular stock or share which deals in frequent and regular transactions. It helps the buyers to obtain reasonably large amounts at any time.

Administered Price
The administrative body e.g., the government a marketing board or a trading group determines this price. The competitive market force are not entitled to determine this price. The government fixes a price in accordance with demand supply portion in the market.

Ad-valorem Tax
Ad-valorem tax is a kind of indirect tax in which goods are taxed by their values. In the case of ad-volorem tax, the tax amount is calculated as the proportion of the price of the goods. Value added Tax (VAT) is an ad-volorem Tax.

Advanced Countries
Advanced countries are countries which are industrially advanced, having high national and per capita income and ensure high rate of capital formation. These countries possess highly developed infrastructure and apply most updated and advanced technical know-how in their productive activities. A strong and well organised financial structure is found in these advanced countries.

Amalgamation
It means ‘merger’. As and when necessity arises two or more companies are merged into a large organisation. This merger takes place in order to effect economies, reduce competition and capture market. The old firms completely lose their identity when the merger takes place.

Appreciation
Appreciation means an increase in the value of something e.g., stock of raw materials or manufactured goods. It also includes an increase in the traded value of a currency. It is the antonym of Depreciation. When the prices rise due to inflation, appreciation may occur. It causes scarcity or increase in earning power.

Arbitrage
When a person performs functions of middle man and buys and sells goods at a particular time to cash the price differences of two markets, this action is termed as arbitrage. Purchases are made in the market where price is low and at the same time, goods are sold in other market where the price are high. Thus the middleman earns profit due to price difference in two markets.

Arbitration
Where there is an industrial dispute, the Arbitration comes to the force. The judgement is given by the Arbitrator. Both the parties have to accept and honour the Arbitration. Arbitration is the settlement of labour disputes that takes place between employer and the employees.

Auction
When a commodity is sold by auction, the bids are made by the buyers. Whose ever makes the highest bid, gets the commodity which is being sold. The buyers make the bid
taking into consideration the quality and quantity of the commodity.

Autarchy
If a country is self-sufficient, it does not require the imports for the country. Autarchy is an indicator of self-sufficiency. It means that the country itself can satisfy the needs of its population without making imports from other countries.

Automation
Automation means the use of machinery & technology to replace the labour’s work. Automation increases the demand of skilled workers. Unskilled and semiskilled workers are reduced as a result of automation.

Balanced Budget
When the total revenue of the government exactly equals the total expenditure incurred by the government, the budget becomes a balanced budget. But it is a conservative view point. In present days, the welfare government has to regulate a number of economic and social activities which increase the expenditure burden on the government and results in deficit budget.

Balance of Payment
Balance of payment of a country is a systematic record of all economic transactions completed between its residents and the residents of remaining world during a year. In other words, the balance of payment shows the relationship between the one country's total payment to all other countries and its total receipts from them. Balance of payment is a comprehensive term which includes both visible and invisible items. Balance of payment not only include visible export and imports but also invisible trade like shipping, banking, insurance, tourism, royalty, payments of interest on foreign debts.

Balance of Trade
Balance of trade refers to the total value of a country's export commodities and total value of imports commodities. Thus balance of trade includes only visible trade i.e., movement of goods (exports and imports of goods). Balance of trade is a part of Balance of payment statement.

Balance Sheet
Balance sheet is a statement showing the assets and liabilities of a business at a certain date. Balance sheet helps in estimating the real financial situation of a firm.

Bank
Bank is a financial institution. It accepts funds on current and deposit accounts. It also lends money. The bank pays the cheques drawn by customers against current and deposits accounts. The bank is a trader that deals in money and credit.

Bank Draft
Banker's draft is a negotiable claim drawn upon a bank. Drafts are as good as cash. The drafts cannot be returned and unpaid. Draft is issued when a customer shows his unwillingness to accept cheque in payment for his services or mercantile goods. Bank Draft is safer than a cheque.

Bank Rate
Bank Rate is the rate of discount at which the central bank of the country discounts first class bills. It is the rate of interest at which the central bank lends money to the lower banking institutions. Bank rate is a direct quantitative method of credit control in the economy.

Bilateralism
It implies an agreement between two countries to extend to each other specific privileges in their international trade which are not extended to others.

Birth Rate
Birth Rate (or Crude Birth Rate) is number of the births per thousand of the population during a period, usually a year. Only live births are included in the calculation of birth rate.

Black Money
It is unaccounted money which is concealed from tax authorities. All illegal economic activities are dealt with this black Money. Hawala market has deep roots with this black money. Black money creates parallel economy. It puts an adverse pressure on equitable distribution of wealth and income in the economy.

Blue Chip
It is concerned with such equity shares whose purchase is extremely safe. It is a safe investment. It does not involve any risk.

Blue Collar Jobs
These Jobs are concerned with factory. Persons who are unskilled and depend upon manual jobs that require physical strain on human muscle are said to be engaged in Blue Collar Jobs. In the age of machinery, such Jobs are on the decline these days.

Brain-Drain
It means the drift of intellectuals of a country to another country. Scientists, doctors and technology experts generally go to other prominent countries of the world to better their lot and earn huge sums of money. This Brain-Drain deprives a country of its genius and capabilities.

Bridge Loan
A loan made by a bank for a short period to make up for a temporary shortage of cash. On the part of borrower, mostly the companies for example, a business organization wants to install a new company with new equipments etc. while his present installed company / equipments etc. are not yet disposed off. Bridge loan covers this period between the buying the new and disposing of the old one.

Budget
It is a document containing a preliminary approved plan of public revenue and public expenditure. It is a statement of the estimated receipt and expenses during a fixed period, it is a comparative table giving the accounts of the receipts to be realized and of the expenses to be incurred.

Budget Deficit
Budget may take a shape of deficit when the public revenue falls short to public expenditure. Budget deficit is the difference between the estimated public expenditure and public revenue. The government meets this deficit by way of printing new currency or by borrowing.

Bull
Bull is that type of speculator who gains with the rise in prices of shares and stocks. He buys share or commodities in anticipation of rising prices and sells them later at a profit.

Bull Market
It is a market where the speculators buy shares or commodities in anticipation of rising prices. This market enables the speculators to resale such shares and make a profit.

Buoyancy
When the government fails to check inflation, it raises income tax and the corporate tax. Such a tax is called Buoyancy. It concerns with the revenue from taxation in the period of inflation.

Business Cycle
Business cycle (also known as trade cycle) are species of fluctuations in the economic activity of organised communities. It is composed of period of good trade characterised
by rising prices and low unemployment, alternating with period of bad trade characterised by falling prices and high unemployment. Every trade cycle have five different subphases–depression, recovery, full employment, prosperity (boom) and recession.

Call Money
Call money is in the form of loans and advances which are payable on demand or within the number of days specified for the purpose.

Capital Budgeting
Capital budgeting represents the process of preparing budget for a period of a year or even for several years allocating capital outlays for the various investment projects. In other words, it is the process of budgeting capital expenditure by means of an annual or longer period capital budget.

Capital-labour Ratio
Latest models of machinery and equipment raise the labour efficiency and the output is maximized. Capitallabour ratio is the amount of capital against the given labours that a firm employs. Capital-labour ratio is the ratio of capital to labour.

Capital Market
Capital market is the market which gives medium term and long term loans. It is different from money market which deals only in short term loans.

Capitalism
Capitalism is an economic system in which all means of production are owned by private individuals Selfprofit motive is the guiding feature for all the economic activates under capitalism. Under pure capitalism system economic conditions are regulated solely by free market forces. This system is based on ‘Laissez-faire system’ i.e., no state intervention. Sovereignty of consumer prevails in this system. Consumer behaves like a king under capitalism.

Cash Reserve Ratio (CRR)
The commercial banks are required to keep a certain amount of cash reserves at the central bank. This percentage amount is called CRR. It influences the commercial bank’s volume of credit because variation in CRR affects the liquidity position of the banks and hence their ability to lend.

Census
Census gives us estimates of population. Census is of great economic importance for the country. It tells us the rate at which the total population is increasing among different age groups. In India census is done after every 10 years. The latest census in India has been done in 2001.

Central Bank
Central Bank may be defined as the apex barking and monetary institution whose main function is to control, regulate and stabilize the banking and the monetary system of the country in the national interest.

Cheque
Cheque is an order in writing issued by the drawer to a bank. If the customer has sufficient amount in his account, the cheque is paid by the bank. Cheques are used in place of cash money.

Clearing Bank
Clearing bank is one which settles the debits and credits of the commercial banks. Even of the cash balances are lesser, clearing bank facilitates banking operation of the commercial bank.

Clearing House
Clearing house is an institution which helps to settle the mutual indebtedness that occurs among the members of its organisation.

Closed Economy
Closed economy refers to the economy having no foreign trade (i.e., export and import). Such economies depend exclusively on their own internal domestic resources and have
no dependence on outside world.

Collusion
Producers of an industry reduce competition among themselves to raise their profits. They fix the price themselves with a clear understanding in this regard. This understanding among different firms is called collusion.

Coinage
Art and practice of making coins is called coinage. The metal is melted and moulded to shape into a coin. The coinage is a medium of exchange (money).

Collectivism
Collectivism is a belief that nation's interest is superior to individual interest. This is the collective thinking of the society and polity national leaders and also communist opine the theory of collection.

Commercial Bank
Commercial Bank is an institution of finance. It deals with the banking services through its branches in whole of the country. Operation of current accounts, deposits, granting of loans to individuals and companies etc. are various functions of the commercial bank.

Communism
Communism is a political and economic system in which the state makes the major economic decision State owns the bulk of capital assets. Responsibility for production and distribution lies with the state in this system.

Core Sector
Economy needs basic infrastructure for accelerating development. Development of infrastructure industries like cement, iron and steel, petroleum, heavy machinery etc. can only ensure the development of the economy as a whole. Such industries are core sector industries.

Corporation Tax
It is a tax on company's profit. It is a direct tax which is calculated on profits after interest payments and allowance (i.e., Capital allowance) have been deducted but before dividends are allowed for.

Cost-push Inflation
It arises due to an increase in production cost. Such type of inflation is caused by three factors : (i) an increase in wages, (ii) an increase in the profit margin and (iii) imposition of heavy taxation.

Credit Rationing
Credit rationing takes place when the banks discriminates between the borrowers. Credit rationing empowers the bank to lend to some and to refuse to lend to others. In this way credit rationing restricts lending on the part of bank.

Credit Squeeze
Monetary authorities restrict credit as and when required. This credit restriction is called credit squeeze. Monetary authorities adopt the policy of credit squeeze to control inflationary pressure in the economy.

Custom Duty
Custom duty is a duty that is imposed on the products received from exporting nations of the world. It is also called protective duty as it protects the home industries.

Cyclical Unemployment
It is that phase of unemployment which appears due to the occurrence of the downward phase of the trade cycle. Such an employment is reduced or eliminated when the business
cycle turns up again.

Dear Money
Dear money is that money which can only be borrowed at a high rate of interest. In dear money policy, bank rate and other rates of interest are high and as a result borrowing becomes expensive. Dear money policy is deliberate policy which is adopted by the monetary authorities to check inflation in the economy.

Death Duty
It is a direct tax which is imposed on the estate of deceased person. Death duty or Death Tax is a form of personal tax on property which is levied when property passes from one person to other at the time of death of the former.

Death Rate
Death rate signifies the number of deaths in a year per thousand of the population. It is mostly known as crude death rate. Life expectancy is important determinant of death rate.
A country having high life expectancy will have a high crude death rate.

Decentralisation
Decentralisation means the establishment of various unit of the same industry at different places. Large scale organisation or industry can not be run at one particular place or territory. In order to increase the efficiency of the industry, various units at different places are located.

Debt Service (Total)
The sum of principal repayments and interest actually paid in foreign currency, goods and services on longterm debt (having maturity of more than one year), interest paid on shortterm debt and repayments to IMF.

Deficit Financing
It is a practice resorted to by modern government of spending more money than it receives in revenue. It is a policy of bridging a deficit between governments expenditure and revenue. Deliberately budgeting for a deficit is called deficit financing. This practice was popularised by Prof. J. M. Keynes to deal with the depression and unemployment situations and to stimulate economic activity. Deficit financing, though having inflationary effects, has now become a common practice in all countries.

Deflation
Deflation is the reverse case of inflation. Deflation is that state of falling prices which occurs at that time when the output of goods and services increases more rapidly than the volume of money in the economy. In the deflation the general price level falls and the value of money rises.

Devaluation
The loss of value of currency of a country relative to other foreign currency is known as devaluation. Devaluation is a process in which the government deliberately cheapens the exchange value of its own currency in terms of other currency by giving it a lower exchange value. Devaluation is used for improving, the balance of payment situation in the country.

Direct Tax
A tax is said to be a direct tax when it is not intended to be shifted to anybody else. The person who pays it in the first instance is also excepted to bear it. Thus the impact and incidence of direct tax fall on the same person shifting of direct tax is not possible Income Tax is a example of direct tax.

Disinflation
It refers to a process of bringing down prices moderately from their high level without any adverse impact on production and employment. Thus, disinflation is an anti-inflationary measure.

Dissaving
Dissaving occurs when expenditure exceeds income. Raising of loans or utilization of past accumulated savings takes place in such eventuality.

Dividend
Dividend is the amount which the company distributes to shareholders when the profits of the company are calculated by the board of directors.

Economic Integration
Economic integration appears when two or more nations coordinate themselves and their economies are linked up. It may exhibit itself in the form of free trade area or a full economic union. EEC is an example of economic integration.

Engel's Law
This law was formulated by Ernst Engel. This law states that, with given taste and preference, the portion of income spend on food diminishes as income increases. According to this law, smaller a person's income, the greater the proportion of it that he will spend on food and vice versa.

Estate Duty
It is a tax which is levied on the estate of a decreased person. It is also known as death duty. The ownership of state changes hands only after the payments of the estate duty. It is an progressive tax in nature.

Excise Duty
It is a tax which is imposed on certain indigenous production (e.g., petroleum products, cigarettes etc.) of the country. Excise duty may be imposed either to raise revenue or to check the consumption of the commodities on which they are imposed. Excise duty is progressive in nature.

Face Value
It refers to that normal value of coin at which the coin circulates and is accepted in the discharge of debit or obligation. Broadly speaking, the face value refers to domination stamped on a coin / or documents when it is issued. In securities, it refers to par value.

Fascism
It is a form of political system. In it every economic consideration rests on one criterion—the increase in the people's standard of living. It also lays emphasis on military
strength and prestige of the country. It is the extreme nationalism and the ultimate goal is self-sufficiency.

Federal Economy
It refers to a federation which is an association of two and more states. A federal state is a union of state in which authority is divided between the federal (or central) government and the state governments. In a federal economy both the centre and the states are independent in the exercise of this authority.

Fiduciary Issue
Generally bank-note are backed by gold. But when they are not backed by gold and government securities replace gold, it is called fiduciary issue. Such fiduciary issue results in inflation.

Fertility Rate
The term fertility refers to the actual bearing of children or ‘occurrence of births’. Fertility rate measures the average number of the live births per 1000 women. This rate is one of the most important and useful aids to population projection. It helps in assessing population trends in the economy.

Fiscal Policy
Fiscal policy is that part of government economic policy which deals with taxation, expenditure, borrowing, and the management of public debt in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. It exerts a very powerful influence on the working of economy as a whole.

GEM
GEM (Gender Empowerment Measure) is a composite index measuring gender inequality in three basic dimensions of empowerment–economic participation and decision making, political participation and decision making, and power over economic resources.

GDI
GDI (Gender Related Development Index) is a composite index measuring average achievement in the three basic dimensions captured in the human development index–a long and healthy life, knowledge and a decent standard of living–adjusted to account for inequalities between men and women.

Gini-coefficient
It represents the measurement of inequality derived from the ‘Lorenz Curve,’ with every increase in the degree of inequality, the curvature of the Lorenz Curve also increases and
the area between the curve and 45??line becomes larger.
The Gini-coefficient is measured as—
G =Area between Lorenz Curve & 45??Line/Area above the 45??Line

Giffin Goods
Giffin goods have the positive relationship between price and quantity demanded and as a result demand curve of Giffin goods slopes upward from left to right. This phenomenon was first observed by Sir Robert Giffin in relation to the demand for bread by poor labours.

Gresham's Law
“Bad money (if not limited in quantity) drives good money out of circulation”—This statement was given by Sir Thomas Gresham, the economic Adviser of Queen Elizabeth. This law states that people always want to hoard good money and spend bad money when two forms of money are in circulation at the same time.

Gross Domestic Product (GDP)
It is the money value of all final goods and services produced within the geographical boundaries of the country during a given period of time (usually a year). GDP can be calculated both at current prices and at constant prices. If we add net factor income from abroad to the GDP, we get ‘Gross National Product’ (GNP).

Gross National Product (GNP)
It refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time, generally a year.

Gross National Product Deflator
It is a Price Index Number used to correct the money value of Gross National Product (GNP) for price changes so as to isolate the changes which have taken place in the physical output of goods and services.

Guild Socialism
This form of socialism accepts the leadership of artisans. The operation of the whole economy specially the management and control of industries lies in the hands of artisans Socialism established by artisans is termed a Guild Socialism.

HDI
HDI (Human Development Index) is a composite index measuring average achievement in three basic dimensions of human life–a long and healthy life, knowledge and a decent standard of living.

Import Duty
Import duty is a tax on imports imposed on an ad-valorem basis i.e., fixed in the form of a percentage on the value of the commodity imported.

Indirect Tax
Indirect tax is that tax which is levied on goods or services produced or purchased. Indirect taxes are those which are demanded from one person in the expectation and intention that he shall indemnify himself at the expense to another.

Inflation
A situation of a steady and sustained rise in general prices is usually known as inflation. Inflation is a state in which the value of money is falling i.e., prices are rising.

Joint Demand
Joint demand appears in case of complementary goods. When two commodities are complementary to one another and cannot be used separately, they have joint demand. Bread and butter, sugar and tea, pen and ink are a few examples of joint demand. In joint demand a change in demand of one commodity bring about the proportionate change in demand for the other.

Joint Sector
When a sector is jointly owned, managed and run by both public and private sector, it is called joint sector. This sector indicates the partnership between the two i.e., public and private sector.

Labour Union
Labour union represents that organisation of workers which works for improving working condition of labours and also for raising their wage by adopting ‘collective bargaining’ measures with the management of the industry in particular.

Laffer Curve
This curve is given by American economist Prof. Arthur Laffer. It represents relationship between total tax revenue and corresponding tax rates.

Laissez Faire
It is a French word meaning ‘non-interference’. This doctrine was popularised by classical economists who gave the view that government should interfere as little as possible in the economic activities of the individuals.

Life Expectancy at Birth
The number of years a newborn infant would live if prevailing pattern of age specific mortality rates at the time of birth were to stay the same throughout the child’s life.

Liquidation
It refers to the termination (or winding up) of a registered company. Liquidation takes place because of company's insolvency. In liquidation, assets are turned into cash for settling outstanding debts and for apportioning the balance, if any, amongst the owners.

Liquidity
Assets which can easily be converted into cash money are said to have liquidity. Land does not possess liquidity at it takes longer time to get converted into cash.

Liquidity Ratio
The commercial banks under banking regulations have to maintain a certain specified proportion of their total deposits of various categories in liquid assets. This maintainable proportion is called liquidity ratio.

Lock-out
Lock-out refers to such a situation when the management does not permit the workers to work unless they agree to accept the employer's term. Lock-out is the closing of work by the management for an uncertain period of time to put pressure on the labour union. It is an action by the employer equivalent to a strike by employees.

Lorentz Curve
This curve shows the degree of inequalities of a frequency distribution in a graphical manner. It is a curve on a graph which shows the cumulative proportion of a statistical population against this cumulative share of some characteristic. This curve is commonly used to depict income distribution showing the cumulative percentage of people from the poorest up and their cumulative share of national income.

Lump Sum Tax
Lump sum tax is a fixed amount which has imperative nature irrespective of the income level. This tax is not equitable in nature.

Merit Goods
Merit goods refer those goods that are very essential to the society as a whole and hence the government ensures their availability to all consumers, regardless of their ability to pay to reasonable price.

Mixed Economy
It refers to that economic system in which both private and public sector co-exists. Indian economy is an example of a mixed economy.

Monetary Policy
Monetary policy comprises all measures applied by the monetary authorities with a view to produce a deliberate impact on the nature and volume of money so as to achieve the objectives of general economic policy. It aims at regulating the flow of currency, credit and other money substitutes in an economy with a view to affect the total stock of such assets as well as to influence the demand of the community for such assets.

Monetary Reforms
When a new currency is introduced in a country due to hyperinflation or due to a deliberate policy measure (such as decimalization) it is termed as monetary reform.

Monopoly
Monopoly refers to that market structure where there is only one seller in the market who controls the entire market supply and no substitute of the product is available in the market.

Monopsony
Monopsony is that market situation in which there is only one single buyer of the product in the market. In other word, ‘buyer's monopoly’ is termed as monopsony.

Multinational Company
It is a large scale company which has its production base in several countries and the bulk of the production is produced in outside nations. This company produces more overseas
than they do in its parent country. Increased trade and economies of scale have encouraged such type of companies in the recent years.

National Income
In the simplest way it can be defined as ‘factor income accruing to the national residents of a country.’ It is the sum of domestic factor income and net factor income earned from abroad. Net national product at factor cost is called national income.

Net National Product (NNP)
When depreciation is deducted from GNP i.e., Gross National Product, we get Net National Product (NNP).

Oligopoly
Oligopoly is that form of imperfect competition in which there are only a few firms in the industry (or group) producing either homogeneous products or may be having product differentiation in a given line of production.

Open Economy
Open economy is that economy which is left free and the government imposes no restrictions on trade with areas outside that economy.

Okun’s Law
Arthur Okun presented an empirical relationship between cyclical movements in GNP and unemployment. Okun found that an annual 2•5% increase in the rate of real growth above the trend growth results in a 1% decrease in the rate of unemployment. This relationship is known as Okun’s Law.

Perfect Competition
Perfect competition is the market in which there are many firms selling identical products with no firm large enough relative to the entire market to be able to influence market price.

Poverty Line
Poverty line is a virtual line demarcating persons living below and above it. In India all those persons are treated living below poverty line who are not able to earn that much of income which is not sufficient to acquire food equivalent to 2100 calories per person per day in urban areas and 2400 calories per person per day in rural areas. As per UNDP, one US dollar (1993 PPP US $) per person per day is treated as poverty line.

PQLI
PQLI is known as Physical Quality of Life Index which is used to assess the level of social development. This index was developed by Jim Grant for The Overseas Development Council PQLI is calculated by using indices of (i) Adult literacy rate, (ii) IMR, (iii) Life Expectancy.

Price Mechanism
Price mechanism signifies the working of those market forces which establishes equilibrium in the economy. Laissez faire policy is the basis for the working of price mechanism.

Price Ring
It is an unofficial syndicate by which the prices are controlled with the prior understanding among the traders. These dealers under a price ring decide not to over-bid one another at the public auction to keep the prices low. This price ring may discourage outsiders from coming to the auctions.

Private Sector
Private Sector is that part of the economy which is not owned by the government and is under the hands of private enterprise. In other words, private sector is not under direct government control. Private sector includes the personal as well as the corporate sector.

Privatisation
Privatisation is the antithesis of nationalisation. When the government owned public industries are denationalised and the disinvestment process is initiated, it is called privatisation.

Public Debt
Public debt represents borrowing by the state and public authorities. All loans taken by the public authorities constitute public debt.

Public Goods
Public goods are those goods which belong to the entire community. None of the individual of the society can be made deprived of using these public goods. National defence, Police, Street lighting etc. are examples of public goods.

Public Sector
Public sector signifies those undertakings which are owned, managed and run by public authorities. Public sector includes direct government enterprise, the nationalized industries and public corporations. In this sector of the economy the government acts itself as an entrepreneur.

Peril Point
It indicates that point beyond which tariff reductions would threaten the existence of domestic industry.

Quick Asset
Those assets are quick assets which are liquid or nearly liquid in nature and easily be turned into cash.

Quoted Company
That company is called quoted company whose share prices are quoted on a stock exchange.

Reflation
It signifies general increase in the level of business activity in the economy. Reflation generally involves greater government expenditure and the easing of credit to encourage increased production.

Regressive Tax
It is a tax in which rate of taxation falls with an increase in income. In regressive taxation incidence falls more on people having lower incomes than that of those having higher incomes.

Repressed Inflation
It is a state in which aggregate demand is greater than the total supply of goods and services in an economy, but prices are prevented from rising to eliminate excess demand. The holding down of price is sometimes done by government as a means of suppressing inflation.

Reserve Asset Ratio
It is the ratio of a bank’s reserve assets to its eligible liabilities.

Revolving Credit
It is a bank credit that is renewed automatically until notice of cancellation is received. Revolving credits may be sanctioned for an unlimited amount in total but with a limit on
the amount that may be drawn at any one time or within a specified period, e.g., one month.

Seasonal Unemployment
It is that unemployment which is caused by seasonal variation in demand for labour by various industries, such as agriculture, construction and tourism. Seasonal unemployment
normally declines in spring as more outdoor work can be undertaken.

Security
Security refers to a share, bond or government stock that can be bought and sold, usually on the stock exchange or on a secondary market, and carries a right to some form of income, either in the form of a fixed rate of interest or dividends.

Shadow Price
It is an imputed value for a good based on the opportunity costs of the resources used to produce it such values are of particular significance in resolving problems of resource allocating with respect to the effect on welfare.

Share Capital
It is the amount of money raised by a company by issuing shares. The authorized share capital is the amount that a company is allowed to issue as laid down in its Articles of Association. The issued share capital is the amount actually issued i.e., the number of issued shares multiplied by their par value. Fully paid share capital is the amount raised by payment of the full par value of the issued shares.

Single Tax System
It is a system in which all tax revenues are raised from one form of taxation.

Socialism
The political doctrine that the means of production (machines, materials and output) should be owned by society and specifically either by the state, as in the case of nationalized industries or by the workers directly, as in the case of producer co-operatives.

Social Security
Provision by the state out of taxation of welfare assistance to those in need as a result of illness, unemployment, or old age compare national insurance refers to social security.

Soft Currency
A currency with limited convertibility into gold and other currencies, either because it is depreciating due to balance of payments difficulties or because controls have been placed on it to prevent the exchange rate falling.

Special Drawing Rights (SDRs)
It is a reserve asset (known as ‘Paper Gold’) created within the framework of the International Monetary Fund in an attempt to increase international liquidity, and now forming a part of countries official reserves along with gold, reserve positions in the IMF and convertible foreign currencies.

Special Tax (Unit Tax)
It is a tax imposed per unit of a commodity rather than on the value of the commodity compare ad-valorem.

Stabilization Policy
It is Government economic policy announced at reducing the cyclical and other fluctuations that take place in a market economy.

Stagflation
It is a state of the economy in which economic activity is slowing down, but wages and prices continue to rise. The term is a blend of the words stagnation and inflation.

Surplus Value
It is the difference between the amount paid to a factor and the revenue earned by selling the output it produced.

Tariff
It is a tax or a duty on imports, which can be levied either on physical units, e.g., per tonne (specific), or on value (ad-valorem). Tariffs may be imposed for a variety of reasons including; to raise government revenue, to protect domestic industry from subsidized or low-wage imports, to boost domestic employment, or to ease a deficit on the balance of payments.

Trade Gap
It signifies the size of the deficit (or surplus) in the balance of trade i.e., the difference in value between visible imports and exports.

Trade Union
It is an organisation of employees who join together to further their interests. Trade Unions negotiate on behalf of their members in collective bargaining with employers, and in the event of a dispute may put pressure on employers by withdrawing labour (i.e. strike) or by some less drastic form of action (i.e. go-slow, working to rule).

Transfer Payment
It is a payment made by public authority other than one made in exchange for goods or services produced. Transfer payments are not the part of National Income. Examples includes unemployment benefit and child benefits.

Vital Statistics
Vital statistics refers to those data which are associated with vital events of masses like birth, death, marriage divorce etc.

VAT (Value Added Tax)
VAT seeks to tax the value added at every stage of manufacturing and sale, with a provision of refunding the amount of VAT already paid at the earlier stages to avoid double taxation. In other words, the tax already paid can be claimed at the next stage of value addition.

Wealth Tax
Wealth tax is that tax which is imposed on the value of total assets but the wealth upto a certain limit is exempted from such tax.

Welfare State
It refers to a nation that provides to all at least the minimum standards in respect of education, health, housing, pensions and other social benefits.

Wholesale Price Index
Wholesale Price Index is that index which is calculated on the basis of wholesale prices. It is calculated in a similar way to the Retail Price Index.