Week I June 2016 UPSC Notes | EduRev

UPSC : Week I June 2016 UPSC Notes | EduRev

 Page 1


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: I, June 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
Page 2


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: I, June 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
 
Skill India Mission 
? According to government estimates, more than 1.04 Crore youth have been trained under the Skill India 
Mission in the year 2015-16 which is 36.8% higher than the previous year’s recorded data. 
? In the current arrangement, 60% of the trainings are directly under Ministry of Skill Development and 
Entrepreneurship while 40% are across other Central Ministries. 
? Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which was launched on July 15, 2015, alone has witnessed 
more than 20 lakh people, of which 40% are women candidates, being trained in their choice of skills. 
Achievements of Mission: 
? The skill training and development ecosystem has seen transformational change through concerted 
efforts in terms of initiatives such as PMKVY 
? New ITIs with private/ industry partnership, Infusion of new ideas and finance through World Bank 
assistance.  
? The number of ITIs in the country has increased from 10,750 in May 2014 to over 13,105 in May 2016 and 
these will be further scale up to 18000 by September this year.  
? More than 1141 new ITIs have been added and 1.73 seats have been increased in the last one year.  
? MSDE has also enabled the opening up of 5 new RVTIs for women in skill development, 
? Till date 4,82,079 entrepreneur trainings have been done by National Institute for Entrepreneurship and 
Small Business Development (NIESBUD) 83 percent of these have been trained through digitised 
entrepreneurship Orientation Programs,  
? Amendments in Apprenticeship Act for increasing opportunities for the youth, and Bring in a new focus to 
skill development in the country. 
About the National Skill Development Mission: 
? The National Skill Development Mission was approved by the Union Cabinet on 01.07.2015, and officially 
launched by the Hon’ble Prime Minister on 15.07.2015 on the occasion of World Youth Skills Day.  
? The Mission has been developed to create convergence across sectors and States in terms of skill training 
activities.  
? Further, to achieve the vision of ‘Skilled India’, the National Skill Development Mission not only 
consolidate and coordinate skilling efforts, but also expedite decision making across sectors to achieve 
skilling at scale with speed and standards. 
? This mission is implemented through a streamlined institutional mechanism driven by Ministry of Skill 
Development and Entrepreneurship (MSDE).  
? Key institutional mechanisms for achieving the objectives of the Mission have been divided into three 
tiers, which will consist of a Governing Council for policy guidance at apex level, a Steering Committee 
and a Mission Directorate (along with an Executive Committee) as the executive arm of the Mission. 
Page 3


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: I, June 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
 
Skill India Mission 
? According to government estimates, more than 1.04 Crore youth have been trained under the Skill India 
Mission in the year 2015-16 which is 36.8% higher than the previous year’s recorded data. 
? In the current arrangement, 60% of the trainings are directly under Ministry of Skill Development and 
Entrepreneurship while 40% are across other Central Ministries. 
? Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which was launched on July 15, 2015, alone has witnessed 
more than 20 lakh people, of which 40% are women candidates, being trained in their choice of skills. 
Achievements of Mission: 
? The skill training and development ecosystem has seen transformational change through concerted 
efforts in terms of initiatives such as PMKVY 
? New ITIs with private/ industry partnership, Infusion of new ideas and finance through World Bank 
assistance.  
? The number of ITIs in the country has increased from 10,750 in May 2014 to over 13,105 in May 2016 and 
these will be further scale up to 18000 by September this year.  
? More than 1141 new ITIs have been added and 1.73 seats have been increased in the last one year.  
? MSDE has also enabled the opening up of 5 new RVTIs for women in skill development, 
? Till date 4,82,079 entrepreneur trainings have been done by National Institute for Entrepreneurship and 
Small Business Development (NIESBUD) 83 percent of these have been trained through digitised 
entrepreneurship Orientation Programs,  
? Amendments in Apprenticeship Act for increasing opportunities for the youth, and Bring in a new focus to 
skill development in the country. 
About the National Skill Development Mission: 
? The National Skill Development Mission was approved by the Union Cabinet on 01.07.2015, and officially 
launched by the Hon’ble Prime Minister on 15.07.2015 on the occasion of World Youth Skills Day.  
? The Mission has been developed to create convergence across sectors and States in terms of skill training 
activities.  
? Further, to achieve the vision of ‘Skilled India’, the National Skill Development Mission not only 
consolidate and coordinate skilling efforts, but also expedite decision making across sectors to achieve 
skilling at scale with speed and standards. 
? This mission is implemented through a streamlined institutional mechanism driven by Ministry of Skill 
Development and Entrepreneurship (MSDE).  
? Key institutional mechanisms for achieving the objectives of the Mission have been divided into three 
tiers, which will consist of a Governing Council for policy guidance at apex level, a Steering Committee 
and a Mission Directorate (along with an Executive Committee) as the executive arm of the Mission. 
 
 
? Mission Directorate is supported by three other institutions: National Skill Development Agency (NSDA), 
National Skill Development Corporation (NSDC), and Directorate General of Training (DGT) – all of which 
will have horizontal linkages with Mission Directorate to facilitate smooth functioning of the national 
institutional mechanism.  
? Seven sub-missions have been proposed initially to act as building blocks for achieving overall objectives 
of the Mission. They are:(i) Institutional Training, (ii) Infrastructure, (iii) Convergence, (iv) Trainers, (v) 
Overseas Employment, (vi) Sustainable Livelihoods, (vii) Leveraging Public Infrastructure. 
The challenge of sustaining growth 
?  The latest GDP growth data released by the Central Statistics Office show that India’s economy expanded by 
7.9 per cent in the three months ended March, a sharp acceleration from the marginally downsized 7.2 per 
cent achieved in the preceding quarter.  
?  Significantly, that this growth has been achieved despite a prolonged and widespread drought, which would 
certainly have dampened rural demand, is noteworthy.  
Analysis: 
? There is an increase in private consumption , which is 7.4 percent as compared to the 6.2 percent of last year.  
Less interest rates on loans, less inflation and high personal income leads to the increase in private 
consumption   
?  There is no doubt that the overall growth scenario is positive but then there are other statistics which offer a 
different view.If we consider the date of Gross Value Added at basic prices released by CSO we see a 
negligible increase (7.2% from 7.1% of previous year).  The GVA figure is significant because it strips the 
impact that taxes and subsidies have on the overall GDP number. Thus a substantial 5.6 per cent contraction 
in the amount the government spent on subsidies helped inflate GDP, and by extension the pace of growth. 
So it can be safely assumed that it was because of a substantial fall in subsidies that the GDP figure is inflated.  
?  India seems to be in a comfortable position in the future because of the Implementation of Seventh Pay 
Commission will further increase the household spending, Predictions of above average monsoon will 
increase the agricultural output, thus increasing rural demand and Increased agricultural output will reduce 
inflation and thus boost more spending. 
?  private sector investment having slowed and showing barely any signs of revival, the onus of providing some 
investment stimulus may rest squarely with the government — through increased public expenditure outlays 
Deepak Mohanty Committee On Medium Term Path On Financial Incluison 
Deepak Mohanty committee was constituted with the objective of working out a medium-term (five year) 
measurable action plan for financial inclusion.  
Salient recommendations 
?  More focus on opening female accounts along with main focus on welfare schemes for women  like Sukanya 
Shiksha yojana.  
?  Unique biometric identifier such as Aadhaar should be linked to each individual credit account and the 
information shared with credit information companies to enhance the stability of the credit system and 
improve access.Same should be done for MSMEs.  
?  Recommends use of low-cost solution based on mobile technology for ‘last mile’ delivery 
?  To increase formal credit supply to all agrarian segments, digitization of land records should be done. 
?  Phase out of interest subvention scheme and ploughing the subsidy amount into a mandatory crop insurance 
scheme for small and marginal farmers 
?  'Gold KCC' scheme for good borrowers. 
?   Recommends commercial banks to open specialized interest-free windows with simple products. 
?  Recommends RBI to take lead in creating a geographical information system to map banking access points. 
Page 4


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: I, June 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
 
Skill India Mission 
? According to government estimates, more than 1.04 Crore youth have been trained under the Skill India 
Mission in the year 2015-16 which is 36.8% higher than the previous year’s recorded data. 
? In the current arrangement, 60% of the trainings are directly under Ministry of Skill Development and 
Entrepreneurship while 40% are across other Central Ministries. 
? Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which was launched on July 15, 2015, alone has witnessed 
more than 20 lakh people, of which 40% are women candidates, being trained in their choice of skills. 
Achievements of Mission: 
? The skill training and development ecosystem has seen transformational change through concerted 
efforts in terms of initiatives such as PMKVY 
? New ITIs with private/ industry partnership, Infusion of new ideas and finance through World Bank 
assistance.  
? The number of ITIs in the country has increased from 10,750 in May 2014 to over 13,105 in May 2016 and 
these will be further scale up to 18000 by September this year.  
? More than 1141 new ITIs have been added and 1.73 seats have been increased in the last one year.  
? MSDE has also enabled the opening up of 5 new RVTIs for women in skill development, 
? Till date 4,82,079 entrepreneur trainings have been done by National Institute for Entrepreneurship and 
Small Business Development (NIESBUD) 83 percent of these have been trained through digitised 
entrepreneurship Orientation Programs,  
? Amendments in Apprenticeship Act for increasing opportunities for the youth, and Bring in a new focus to 
skill development in the country. 
About the National Skill Development Mission: 
? The National Skill Development Mission was approved by the Union Cabinet on 01.07.2015, and officially 
launched by the Hon’ble Prime Minister on 15.07.2015 on the occasion of World Youth Skills Day.  
? The Mission has been developed to create convergence across sectors and States in terms of skill training 
activities.  
? Further, to achieve the vision of ‘Skilled India’, the National Skill Development Mission not only 
consolidate and coordinate skilling efforts, but also expedite decision making across sectors to achieve 
skilling at scale with speed and standards. 
? This mission is implemented through a streamlined institutional mechanism driven by Ministry of Skill 
Development and Entrepreneurship (MSDE).  
? Key institutional mechanisms for achieving the objectives of the Mission have been divided into three 
tiers, which will consist of a Governing Council for policy guidance at apex level, a Steering Committee 
and a Mission Directorate (along with an Executive Committee) as the executive arm of the Mission. 
 
 
? Mission Directorate is supported by three other institutions: National Skill Development Agency (NSDA), 
National Skill Development Corporation (NSDC), and Directorate General of Training (DGT) – all of which 
will have horizontal linkages with Mission Directorate to facilitate smooth functioning of the national 
institutional mechanism.  
? Seven sub-missions have been proposed initially to act as building blocks for achieving overall objectives 
of the Mission. They are:(i) Institutional Training, (ii) Infrastructure, (iii) Convergence, (iv) Trainers, (v) 
Overseas Employment, (vi) Sustainable Livelihoods, (vii) Leveraging Public Infrastructure. 
The challenge of sustaining growth 
?  The latest GDP growth data released by the Central Statistics Office show that India’s economy expanded by 
7.9 per cent in the three months ended March, a sharp acceleration from the marginally downsized 7.2 per 
cent achieved in the preceding quarter.  
?  Significantly, that this growth has been achieved despite a prolonged and widespread drought, which would 
certainly have dampened rural demand, is noteworthy.  
Analysis: 
? There is an increase in private consumption , which is 7.4 percent as compared to the 6.2 percent of last year.  
Less interest rates on loans, less inflation and high personal income leads to the increase in private 
consumption   
?  There is no doubt that the overall growth scenario is positive but then there are other statistics which offer a 
different view.If we consider the date of Gross Value Added at basic prices released by CSO we see a 
negligible increase (7.2% from 7.1% of previous year).  The GVA figure is significant because it strips the 
impact that taxes and subsidies have on the overall GDP number. Thus a substantial 5.6 per cent contraction 
in the amount the government spent on subsidies helped inflate GDP, and by extension the pace of growth. 
So it can be safely assumed that it was because of a substantial fall in subsidies that the GDP figure is inflated.  
?  India seems to be in a comfortable position in the future because of the Implementation of Seventh Pay 
Commission will further increase the household spending, Predictions of above average monsoon will 
increase the agricultural output, thus increasing rural demand and Increased agricultural output will reduce 
inflation and thus boost more spending. 
?  private sector investment having slowed and showing barely any signs of revival, the onus of providing some 
investment stimulus may rest squarely with the government — through increased public expenditure outlays 
Deepak Mohanty Committee On Medium Term Path On Financial Incluison 
Deepak Mohanty committee was constituted with the objective of working out a medium-term (five year) 
measurable action plan for financial inclusion.  
Salient recommendations 
?  More focus on opening female accounts along with main focus on welfare schemes for women  like Sukanya 
Shiksha yojana.  
?  Unique biometric identifier such as Aadhaar should be linked to each individual credit account and the 
information shared with credit information companies to enhance the stability of the credit system and 
improve access.Same should be done for MSMEs.  
?  Recommends use of low-cost solution based on mobile technology for ‘last mile’ delivery 
?  To increase formal credit supply to all agrarian segments, digitization of land records should be done. 
?  Phase out of interest subvention scheme and ploughing the subsidy amount into a mandatory crop insurance 
scheme for small and marginal farmers 
?  'Gold KCC' scheme for good borrowers. 
?   Recommends commercial banks to open specialized interest-free windows with simple products. 
?  Recommends RBI to take lead in creating a geographical information system to map banking access points. 
 
 
 
?   Integration of Business correspondents with bank branches. 
?   Introduction of a system of online registration of BCs, their training and monitoring their activity including 
delinquency, and entrusting more complex financial products such as credit to trained BCs with good track 
record. 
?   A geographical information system (GIS) to map all banking access points. 
?   To step up the self help group (SHG)-bank linkage programme (SBLP) initiated by NABARD with the help of 
concerned stakeholders including government agencies as a livelihood model. 
?   Corporate should be encouraged to nurture SHGs as part of their Corporate Social Responsibility (CSR) 
initiatives. 
?   Provision of credit history of all SHG members by linking with individual Aadhaar numbers to check over-
indebtedness 
?  To restore tax-exempt status for securitization vehicles for efficient risk transfer. 
?   More ATMs in rural and semi-urban centers 
?   Levying a surcharge on credit card transactions by merchant establishments should not be allowed. 
Analysis of report(With focus on vision of financial inclusion) 
? The financial inclusion initiative envisaged by the Committee is much broader in scope, going beyond the 
traditional domain of the Reserve Bank.  
?  The Committee recognized that substantial progress has been made in terms of access of financial products 
and services especially after the launch of the Jan Dhan Yojana. However, there were significant gaps in terms 
of usage, inadequate ‘last mile’ service delivery, and exclusion of women as well as small and marginal 
farmers and very low formal link for micro and small enterprises.  
?  There were also systemic issues of stability of the credit system, over-indebtedness and agrarian distress.  
?  Against this background, the Committee set a much wider vision of financial inclusion as “‘convenient’ access 
to a basket of basic formal financial products and services that should include savings, remittance, credit, 
government-supported insurance and pension products to small and marginal farmers and low-income 
households at reasonable cost with adequate protection progressively supplemented by social cash transfers, 
besides increasing the access of small and marginal enterprises to formal finance with a greater reliance on 
technology to cut costs and improve service delivery, such that by 2021, over 90 per cent of the hitherto 
underserved sections of society become active stakeholders in economic progress empowered by formal 
finance.” 
?  The Committee was of the view that a meaningful financial inclusion is not feasible without government-to-
person (G2P) cash transfer. 
NATIONAL POLITY 
The Electricity (Amendment) Bill, 2014 
Highlights of the Bill 
?  The Bill amends the Electricity Act, 2003. It seeks to segregate the distribution network business and the 
electricity supply business, and introduce multiple supply licensees in the market. 
?  The Bill introduces a supply licensee who will supply electricity to consumers. The distribution licensee will 
maintain the distribution network and enable the supply of electricity for the supply licensee. 
Page 5


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: I, June 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
 
Skill India Mission 
? According to government estimates, more than 1.04 Crore youth have been trained under the Skill India 
Mission in the year 2015-16 which is 36.8% higher than the previous year’s recorded data. 
? In the current arrangement, 60% of the trainings are directly under Ministry of Skill Development and 
Entrepreneurship while 40% are across other Central Ministries. 
? Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which was launched on July 15, 2015, alone has witnessed 
more than 20 lakh people, of which 40% are women candidates, being trained in their choice of skills. 
Achievements of Mission: 
? The skill training and development ecosystem has seen transformational change through concerted 
efforts in terms of initiatives such as PMKVY 
? New ITIs with private/ industry partnership, Infusion of new ideas and finance through World Bank 
assistance.  
? The number of ITIs in the country has increased from 10,750 in May 2014 to over 13,105 in May 2016 and 
these will be further scale up to 18000 by September this year.  
? More than 1141 new ITIs have been added and 1.73 seats have been increased in the last one year.  
? MSDE has also enabled the opening up of 5 new RVTIs for women in skill development, 
? Till date 4,82,079 entrepreneur trainings have been done by National Institute for Entrepreneurship and 
Small Business Development (NIESBUD) 83 percent of these have been trained through digitised 
entrepreneurship Orientation Programs,  
? Amendments in Apprenticeship Act for increasing opportunities for the youth, and Bring in a new focus to 
skill development in the country. 
About the National Skill Development Mission: 
? The National Skill Development Mission was approved by the Union Cabinet on 01.07.2015, and officially 
launched by the Hon’ble Prime Minister on 15.07.2015 on the occasion of World Youth Skills Day.  
? The Mission has been developed to create convergence across sectors and States in terms of skill training 
activities.  
? Further, to achieve the vision of ‘Skilled India’, the National Skill Development Mission not only 
consolidate and coordinate skilling efforts, but also expedite decision making across sectors to achieve 
skilling at scale with speed and standards. 
? This mission is implemented through a streamlined institutional mechanism driven by Ministry of Skill 
Development and Entrepreneurship (MSDE).  
? Key institutional mechanisms for achieving the objectives of the Mission have been divided into three 
tiers, which will consist of a Governing Council for policy guidance at apex level, a Steering Committee 
and a Mission Directorate (along with an Executive Committee) as the executive arm of the Mission. 
 
 
? Mission Directorate is supported by three other institutions: National Skill Development Agency (NSDA), 
National Skill Development Corporation (NSDC), and Directorate General of Training (DGT) – all of which 
will have horizontal linkages with Mission Directorate to facilitate smooth functioning of the national 
institutional mechanism.  
? Seven sub-missions have been proposed initially to act as building blocks for achieving overall objectives 
of the Mission. They are:(i) Institutional Training, (ii) Infrastructure, (iii) Convergence, (iv) Trainers, (v) 
Overseas Employment, (vi) Sustainable Livelihoods, (vii) Leveraging Public Infrastructure. 
The challenge of sustaining growth 
?  The latest GDP growth data released by the Central Statistics Office show that India’s economy expanded by 
7.9 per cent in the three months ended March, a sharp acceleration from the marginally downsized 7.2 per 
cent achieved in the preceding quarter.  
?  Significantly, that this growth has been achieved despite a prolonged and widespread drought, which would 
certainly have dampened rural demand, is noteworthy.  
Analysis: 
? There is an increase in private consumption , which is 7.4 percent as compared to the 6.2 percent of last year.  
Less interest rates on loans, less inflation and high personal income leads to the increase in private 
consumption   
?  There is no doubt that the overall growth scenario is positive but then there are other statistics which offer a 
different view.If we consider the date of Gross Value Added at basic prices released by CSO we see a 
negligible increase (7.2% from 7.1% of previous year).  The GVA figure is significant because it strips the 
impact that taxes and subsidies have on the overall GDP number. Thus a substantial 5.6 per cent contraction 
in the amount the government spent on subsidies helped inflate GDP, and by extension the pace of growth. 
So it can be safely assumed that it was because of a substantial fall in subsidies that the GDP figure is inflated.  
?  India seems to be in a comfortable position in the future because of the Implementation of Seventh Pay 
Commission will further increase the household spending, Predictions of above average monsoon will 
increase the agricultural output, thus increasing rural demand and Increased agricultural output will reduce 
inflation and thus boost more spending. 
?  private sector investment having slowed and showing barely any signs of revival, the onus of providing some 
investment stimulus may rest squarely with the government — through increased public expenditure outlays 
Deepak Mohanty Committee On Medium Term Path On Financial Incluison 
Deepak Mohanty committee was constituted with the objective of working out a medium-term (five year) 
measurable action plan for financial inclusion.  
Salient recommendations 
?  More focus on opening female accounts along with main focus on welfare schemes for women  like Sukanya 
Shiksha yojana.  
?  Unique biometric identifier such as Aadhaar should be linked to each individual credit account and the 
information shared with credit information companies to enhance the stability of the credit system and 
improve access.Same should be done for MSMEs.  
?  Recommends use of low-cost solution based on mobile technology for ‘last mile’ delivery 
?  To increase formal credit supply to all agrarian segments, digitization of land records should be done. 
?  Phase out of interest subvention scheme and ploughing the subsidy amount into a mandatory crop insurance 
scheme for small and marginal farmers 
?  'Gold KCC' scheme for good borrowers. 
?   Recommends commercial banks to open specialized interest-free windows with simple products. 
?  Recommends RBI to take lead in creating a geographical information system to map banking access points. 
 
 
 
?   Integration of Business correspondents with bank branches. 
?   Introduction of a system of online registration of BCs, their training and monitoring their activity including 
delinquency, and entrusting more complex financial products such as credit to trained BCs with good track 
record. 
?   A geographical information system (GIS) to map all banking access points. 
?   To step up the self help group (SHG)-bank linkage programme (SBLP) initiated by NABARD with the help of 
concerned stakeholders including government agencies as a livelihood model. 
?   Corporate should be encouraged to nurture SHGs as part of their Corporate Social Responsibility (CSR) 
initiatives. 
?   Provision of credit history of all SHG members by linking with individual Aadhaar numbers to check over-
indebtedness 
?  To restore tax-exempt status for securitization vehicles for efficient risk transfer. 
?   More ATMs in rural and semi-urban centers 
?   Levying a surcharge on credit card transactions by merchant establishments should not be allowed. 
Analysis of report(With focus on vision of financial inclusion) 
? The financial inclusion initiative envisaged by the Committee is much broader in scope, going beyond the 
traditional domain of the Reserve Bank.  
?  The Committee recognized that substantial progress has been made in terms of access of financial products 
and services especially after the launch of the Jan Dhan Yojana. However, there were significant gaps in terms 
of usage, inadequate ‘last mile’ service delivery, and exclusion of women as well as small and marginal 
farmers and very low formal link for micro and small enterprises.  
?  There were also systemic issues of stability of the credit system, over-indebtedness and agrarian distress.  
?  Against this background, the Committee set a much wider vision of financial inclusion as “‘convenient’ access 
to a basket of basic formal financial products and services that should include savings, remittance, credit, 
government-supported insurance and pension products to small and marginal farmers and low-income 
households at reasonable cost with adequate protection progressively supplemented by social cash transfers, 
besides increasing the access of small and marginal enterprises to formal finance with a greater reliance on 
technology to cut costs and improve service delivery, such that by 2021, over 90 per cent of the hitherto 
underserved sections of society become active stakeholders in economic progress empowered by formal 
finance.” 
?  The Committee was of the view that a meaningful financial inclusion is not feasible without government-to-
person (G2P) cash transfer. 
NATIONAL POLITY 
The Electricity (Amendment) Bill, 2014 
Highlights of the Bill 
?  The Bill amends the Electricity Act, 2003. It seeks to segregate the distribution network business and the 
electricity supply business, and introduce multiple supply licensees in the market. 
?  The Bill introduces a supply licensee who will supply electricity to consumers. The distribution licensee will 
maintain the distribution network and enable the supply of electricity for the supply licensee. 
 
 
?  The foreign companies, if they set up an Indian company, can do distribution. 
?  The State Electricity Regulatory Commissions will grant supply licenses. Consumers can choose to buy 
electricity from any of the supply licensees in a given area of supply. 
?  If a supply licensee ceases to be a supply licensee, or is suspended, electricity will be supplied by a provider of 
last resort (POLR). The POLR will be a supply licensee designated by the State Electricity Regulatory 
Commission. 
?  The Bill defines renewable energy and provides for a National Renewable Energy Policy. It requires coal and 
lignite based thermal generators to produce 10% of thermal power installed capacity as renewable energy. 
?   Anticipating greater role of competition and multiplicity of supply options, the amendment aims at enforcing 
greater discipline in grid management. Introducing ancillary services, creating spinning reserves, stronger 
penalties in case of violation of grid code are examples of provisions aimed towards this objective. 
? The regulatory Commission is the key institution responsible for  implementation of the Act provisions as 
well as safeguarding consumer interest. The amendment proposes major changes in selection 
process of the commission members and chairperson, term of office, mandates appointment of
  consumer representatives, places specific timelines for the period within which the commission should 
deal with individual cases while also putting in place mechanism for performance review of the 
commissions. 
Analysis 
?   Now customer has the power to choose and change the supplier and ensure they get competitive charges for 
the electricity. 
?  This bill helps in India’s green India imitative. 
?  Presence of a government company as supply licensee will affect the competition. If government companies 
keep tariffs lower than the cost of electricity, then whole objective of increasing competition will get 
defeated. 
?  Becoming a provider of last resort (POLR) may have financial implications on a supply licensee. However, the 
Bill does not envisage any financial support for these supply licensees. Some other countries provide financial 
support for a POLR. 
?  Total share of non-electrified households has remained stagnant in India, this amendment is lacking to ensure 
full electrification in all household especially in rural. 
? The Bill states that all revenue deficits in the electricity sector prior to the enforcement of the Bill will be 
recovered. The deficits were a result of several factors such as: (i) state distribution companies not revising 
tariffs in a timely manner, (ii) an inefficient tariff structure and cross-subsidisation by high paying consumers, 
and (iii) high aggregate technical and commercial losses because of low investment, theft, pilferage, lack of 
metering and poor billing systems. 
ASER – 2014 report 
 Highlights 
?  The 25 percent of Class 8 students cannot read a Class 2 level text. 
?   Only one-fourth of all children in Class 3 can read a Class 2 text fluently in 2014. This number rises to just 
under half in Class 5.  
?  Close to 75 percent of Class 8 children can read Class 2 level text, which implies still 25 percent children, 
cannot read. 
?  The proportion of Class 5 children who can at least read a Class 2 level text has raised from 46.8 percent in 
2012 to 47 percent in 2013 and to 48.1 percent in 2014.  
?  38.7 percent of Class 3 children can read at least a Class 1 level text in 2012, which is slightly higher at 40.2 
percent in 2014. 
?  Tamil Nadu has shown major gains in reading over 2013 for Class 5. 
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