PIB Summary- 9th October, 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

SUGAM REC App

Context
Recently, REC Limited, the Maharatna Central Public Sector Enterprise launched a SUGAM REC mobile application.

About SUGAM REC App

• The SUGAM REC App is designed exclusively for current and prospective investors in REC’s 54EC Capital Gain Tax Exemption Bonds.
• Users of this app will have access to various services related to these bonds, including the ability to download their electronic bond certificates, apply for new investments, access important forms required for updating Know Your Customer (KYC) information, and connect with REC’s Investor Cell through calls, emails, or WhatsApp.

What are 54EC Bonds (Capital Gain Bonds)

• 54EC Bonds, also known as Capital Gain Bonds, are fixed income financial instruments that offer capital gains tax exemption to investors under section 54EC of the Income Tax Act, 1961.
• These bonds provide a means for individuals to save on income tax when they have incurred long-term capital gains by reinvesting the gains in these bonds.
• Investors are required to invest the capital gains in these bonds within six months from the date of earning the long-term capital gain.
• 54EC Bonds have a fixed lock-in period of 5 years and can be held either in physical or dematerialized (Demat) form.
• They are issued by various institutions managed by the Government of India, and the funds raised through these bonds are utilized to finance specific capital projects.
• The name “54EC bonds” is derived from the section 54EC of the Income Tax Act, which outlines the tax benefits associated with these bonds.
• In summary, 54EC Bonds serve as a tax-efficient investment option for individuals looking to save on long-term capital gains tax by reinvesting the gains in these government-backed bonds. The SUGAM REC App provides a convenient platform for investors to manage their investments in these bonds.

Key Facts about REC Limited

• Maharatna Company: REC Limited is recognized as a ‘Maharatna’ company, operating under the administrative jurisdiction of the Ministry of Power, Government of India.
• Financial Institution: It is registered with the Reserve Bank of India (RBI) as a non-banking finance company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC).
• Establishment: REC Limited was established in the year 1969. Its establishment was prompted by the severe drought and famine conditions prevalent in the country at the time. The primary objective was to provide electricity to power agricultural pump-sets for irrigation, reducing the dependence of agriculture on monsoons.
• Infrastructure Financing: The organization specializes in offering long-term loans and various financing products to State governments, Central government, and private companies for the development and creation of infrastructure assets in India.
• Nodal Agency: REC Limited has played a significant role as a nodal agency for several key government schemes, including Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), and the National Electricity Fund (NEF) Scheme.

PRIP Scheme

Context
Recently, the union Minister of Chemicals and Fertilizers and Minister of Health & Family Welfare, Government of India launched the Scheme for promotion of Research and Innovation in Pharma MedTech Sector (PRIP).

PRIP Scheme

• The PRIP (Pharmaceutical Research and Innovation in Pharmaceuticals) scheme aims to transition India’s pharmaceutical sector from a cost-based model to one centered on innovation. This transformation will be achieved by bolstering the research infrastructure within the country.

Aim

• The scheme seeks to foster collaboration between industry and academia to drive research and development (R&D) efforts in priority areas. It also aims to instill a culture of high-quality research and nurture a skilled pool of scientists in India.

Benefits

• The PRIP scheme is expected to establish a sustainable global competitive advantage for India in the pharmaceutical sector. Additionally, it will contribute to the creation of high-quality employment opportunities in the country.

Duration

• The scheme will span five years, covering the period from 2023-24 to 2027-28.

Components

Component A: Strengthening Research Infrastructure

• This component focuses on enhancing research infrastructure through the establishment of seven Centers of Excellence (CoEs) at National Institutes of Pharmaceutical Education and Research (NIPERs). These CoEs will be strategically located in predefined areas and have a financial allocation of Rs. 700 Crores.

Component B: Promoting Pharmaceutical Research

• Component B aims to promote research in the pharmaceutical sector by encouraging studies in six priority areas, including New Chemical Entities, Complex Generics (including biosimilars), Medical Devices, Stem Cell Therapy, Orphan Drugs, and Anti-Microbial Resistance. Financial support will be extended to industries, MSMEs, SMEs, startups collaborating with government institutions, and for both in-house and academic research. This component has a total financial allocation of Rs. 4250 Crores.