Week III June 2016 UPSC Notes | EduRev

UPSC : Week III June 2016 UPSC Notes | EduRev

 Page 1


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


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: III, June 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
 
Why rail budget 
?  The NITI Aayog has submitted a 20-page note to the prime minister’s office arguing that the convention of 
presenting a separate railway budget every year be done away with. 
?  The practice of presenting separate budget was started after east India Railway Committee, chaired by Sir 
William Acworth, hence also known as the Acworth Committee, pointed out the need for unified 
management of the entire railway system. 
?  On the recommendations of this committee and ratification of the resolution for separation in 1924, the 
government took over the actual management of all the railways, and also separated the railway finances 
from the general governmental finances, leading to the practice of presenting the Railway Budget separately 
from the general budget of India every year. 
Important points of suggestions: 
?  The report says that the separate rail budget has not been of use to the railway sector and has only become a 
mechanism to announce the popular measures. 
?  Railways minister have been using it to announce populist measures like new trains, stopping the existing 
trains and giving freebies. 
?  Seldom has the budget touched upon the matters related to making the fairs more viable or the need to 
augment the capacity. 
?  Lot of resources are being wasted in creating a separate budget and the relation between the finance ministry 
and railways has become complicated due to this separation. 
Analysis: 
?  All those countries that Acworth Committee mentioned no longer have separate railway budget.  
?  There is no constitutional or legal requirement for separate railway budget. Union Budget is a constitutional 
requirement. And the Railways Act, 1989, anyway grants the central government the leeway to revise tariffs 
without consulting Parliament.   
? During the post-independence era, say from 1951 onwards, the railways accounted for 75% of public 
transport and 90% of freight. Today, in contrast, the share has reduced to 20% and 40%. so, there is no need 
to present separate rail budget.  
?  A railway budget within the Union Budget would  not decrease the importance of railways. In fact the budget 
would become more streamlined and consensual with the involvement of the government  right from the 
start. 
?  Process of a separate budget consumes a lot of resources. So a merged budget will cater to this problem. 
?  Railways should focus on better accounting practices and better tab on finances rather than focusing on an 
yearly separate budget. 
?  But by simply assuming that merging the railway budget with Union Budget will end populism is wrong. 
Railways is the lifeline of the people and no matter if the budget is separated or merged it will be looked 
upon by the citizens with a keen eye. 
Page 3


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: III, June 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
 
Why rail budget 
?  The NITI Aayog has submitted a 20-page note to the prime minister’s office arguing that the convention of 
presenting a separate railway budget every year be done away with. 
?  The practice of presenting separate budget was started after east India Railway Committee, chaired by Sir 
William Acworth, hence also known as the Acworth Committee, pointed out the need for unified 
management of the entire railway system. 
?  On the recommendations of this committee and ratification of the resolution for separation in 1924, the 
government took over the actual management of all the railways, and also separated the railway finances 
from the general governmental finances, leading to the practice of presenting the Railway Budget separately 
from the general budget of India every year. 
Important points of suggestions: 
?  The report says that the separate rail budget has not been of use to the railway sector and has only become a 
mechanism to announce the popular measures. 
?  Railways minister have been using it to announce populist measures like new trains, stopping the existing 
trains and giving freebies. 
?  Seldom has the budget touched upon the matters related to making the fairs more viable or the need to 
augment the capacity. 
?  Lot of resources are being wasted in creating a separate budget and the relation between the finance ministry 
and railways has become complicated due to this separation. 
Analysis: 
?  All those countries that Acworth Committee mentioned no longer have separate railway budget.  
?  There is no constitutional or legal requirement for separate railway budget. Union Budget is a constitutional 
requirement. And the Railways Act, 1989, anyway grants the central government the leeway to revise tariffs 
without consulting Parliament.   
? During the post-independence era, say from 1951 onwards, the railways accounted for 75% of public 
transport and 90% of freight. Today, in contrast, the share has reduced to 20% and 40%. so, there is no need 
to present separate rail budget.  
?  A railway budget within the Union Budget would  not decrease the importance of railways. In fact the budget 
would become more streamlined and consensual with the involvement of the government  right from the 
start. 
?  Process of a separate budget consumes a lot of resources. So a merged budget will cater to this problem. 
?  Railways should focus on better accounting practices and better tab on finances rather than focusing on an 
yearly separate budget. 
?  But by simply assuming that merging the railway budget with Union Budget will end populism is wrong. 
Railways is the lifeline of the people and no matter if the budget is separated or merged it will be looked 
upon by the citizens with a keen eye. 
 
 
?   Railways must modernize budgetary practices and adopt corporate accounting, to keep better tab on 
finances. The railways, for instance, need to accurately work out the social costs involved in their operations 
so that there is transparent subsidy-sharing with the Centre and the states. The sustained underinvestment in 
the railways needs to end. The way ahead is to have independent regulatory oversight on the railways, 
including for fares and freight tariffs, and open up rail infrastructure for much-needed competition and 
private sector participation to bring qualitative improvement in rail services.  
National Civil Aviation Policy, 2016  
?  Government has released  the  National Civil Aviation Policy 2016 . This is the first time since  independence 
that an integrated Civil Aviation Policy has been  brought out by the Ministry.   
?  The policy is very comprehensive, covering 22 areas of the Civil Aviation sector.  
Its salient     features are as follows : 
    Regional Connectivity Scheme 
?  This scheme will come into effect in the second quarter of  2016-17 
?  Airfare of about Rs 2500 per passenger for a one-hour flight 
?  This will be implemented by way of: a) Revival of airstrips/airports as No-Frills Airports at an indicative cost of 
Rs.50 crore  to Rs100 crore; b) Demand driven selection of Airports/airstrips for revival in consultation with 
State Govts and airlines 
?  Viability Gap Funding (VGF) to airline operators:  RCS only in those states which reduce VAT on ATF to 1% or  
less, provide other  support services and 20% of VGF 
?  Concessions by Stakeholders: a) There will be no airport charges; b) Reduced Service tax on tickets (on 10% 
of the taxable value) for 1 year initially ; c) Reduced Excise duty at 2%  on ATF picked at RCS airports 
?  State government will provide police and fire services free of cost.  Power, water and   other utilities at  
concessional rates 
?  Creation of Regional Connectivity fund for VGF through a small levy per departure on all domestic flights 
other than Cat II/ Cat IIA routes, RCS routes and small aircraft below 80 seats at a rate as decided bythe 
Ministry from time to time 
?  VGF to be shared between MoCA and State Governments in the ratio of 80:20.  For the North Eastern States, 
the ratio is 90:10 
Route Dispersal Guidelines (RDG)    
?  Category I to be rationalized based on a transparent criteria, i.e., flying distance of more than 700km, average 
seat factor of 70% and above and annual traffic of 5 lakh passengers 
?  The percentage of Cat.I traffic to be deployed on Cat.II, and IIA will remain the same while for CATIII it will be 
35%. Routes to Uttarakhand and Himachal Pradesh included in Category II 
?  Revised categorization to apply from winter schedule of 2017 
?  There view of routes will be done by MoCA once every5 years 
?  Withdrawal or revision of domestic operations to and within North East Region etc, subject to full compliance 
of RDG, can be done under prior intimation to MoCA at least three months before withdrawal or revision of 
the service 
 5/20 Requirement 
?  Replaced with a scheme which provides a level playing field 
?  All airlines can now commence international operations provided that they deploy 20 aircraft or 20% of total 
capacity (in term of average number of seats on all departures put together), whichever is higher for 
domestic operations 
Bilateral Traffic Rights 
?  GoI will enter into 'Open Sky' ASA on a reciprocal basis with SAARC countries and countries located beyond 
5000 km from Delhi 
Page 4


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: III, June 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
 
Why rail budget 
?  The NITI Aayog has submitted a 20-page note to the prime minister’s office arguing that the convention of 
presenting a separate railway budget every year be done away with. 
?  The practice of presenting separate budget was started after east India Railway Committee, chaired by Sir 
William Acworth, hence also known as the Acworth Committee, pointed out the need for unified 
management of the entire railway system. 
?  On the recommendations of this committee and ratification of the resolution for separation in 1924, the 
government took over the actual management of all the railways, and also separated the railway finances 
from the general governmental finances, leading to the practice of presenting the Railway Budget separately 
from the general budget of India every year. 
Important points of suggestions: 
?  The report says that the separate rail budget has not been of use to the railway sector and has only become a 
mechanism to announce the popular measures. 
?  Railways minister have been using it to announce populist measures like new trains, stopping the existing 
trains and giving freebies. 
?  Seldom has the budget touched upon the matters related to making the fairs more viable or the need to 
augment the capacity. 
?  Lot of resources are being wasted in creating a separate budget and the relation between the finance ministry 
and railways has become complicated due to this separation. 
Analysis: 
?  All those countries that Acworth Committee mentioned no longer have separate railway budget.  
?  There is no constitutional or legal requirement for separate railway budget. Union Budget is a constitutional 
requirement. And the Railways Act, 1989, anyway grants the central government the leeway to revise tariffs 
without consulting Parliament.   
? During the post-independence era, say from 1951 onwards, the railways accounted for 75% of public 
transport and 90% of freight. Today, in contrast, the share has reduced to 20% and 40%. so, there is no need 
to present separate rail budget.  
?  A railway budget within the Union Budget would  not decrease the importance of railways. In fact the budget 
would become more streamlined and consensual with the involvement of the government  right from the 
start. 
?  Process of a separate budget consumes a lot of resources. So a merged budget will cater to this problem. 
?  Railways should focus on better accounting practices and better tab on finances rather than focusing on an 
yearly separate budget. 
?  But by simply assuming that merging the railway budget with Union Budget will end populism is wrong. 
Railways is the lifeline of the people and no matter if the budget is separated or merged it will be looked 
upon by the citizens with a keen eye. 
 
 
?   Railways must modernize budgetary practices and adopt corporate accounting, to keep better tab on 
finances. The railways, for instance, need to accurately work out the social costs involved in their operations 
so that there is transparent subsidy-sharing with the Centre and the states. The sustained underinvestment in 
the railways needs to end. The way ahead is to have independent regulatory oversight on the railways, 
including for fares and freight tariffs, and open up rail infrastructure for much-needed competition and 
private sector participation to bring qualitative improvement in rail services.  
National Civil Aviation Policy, 2016  
?  Government has released  the  National Civil Aviation Policy 2016 . This is the first time since  independence 
that an integrated Civil Aviation Policy has been  brought out by the Ministry.   
?  The policy is very comprehensive, covering 22 areas of the Civil Aviation sector.  
Its salient     features are as follows : 
    Regional Connectivity Scheme 
?  This scheme will come into effect in the second quarter of  2016-17 
?  Airfare of about Rs 2500 per passenger for a one-hour flight 
?  This will be implemented by way of: a) Revival of airstrips/airports as No-Frills Airports at an indicative cost of 
Rs.50 crore  to Rs100 crore; b) Demand driven selection of Airports/airstrips for revival in consultation with 
State Govts and airlines 
?  Viability Gap Funding (VGF) to airline operators:  RCS only in those states which reduce VAT on ATF to 1% or  
less, provide other  support services and 20% of VGF 
?  Concessions by Stakeholders: a) There will be no airport charges; b) Reduced Service tax on tickets (on 10% 
of the taxable value) for 1 year initially ; c) Reduced Excise duty at 2%  on ATF picked at RCS airports 
?  State government will provide police and fire services free of cost.  Power, water and   other utilities at  
concessional rates 
?  Creation of Regional Connectivity fund for VGF through a small levy per departure on all domestic flights 
other than Cat II/ Cat IIA routes, RCS routes and small aircraft below 80 seats at a rate as decided bythe 
Ministry from time to time 
?  VGF to be shared between MoCA and State Governments in the ratio of 80:20.  For the North Eastern States, 
the ratio is 90:10 
Route Dispersal Guidelines (RDG)    
?  Category I to be rationalized based on a transparent criteria, i.e., flying distance of more than 700km, average 
seat factor of 70% and above and annual traffic of 5 lakh passengers 
?  The percentage of Cat.I traffic to be deployed on Cat.II, and IIA will remain the same while for CATIII it will be 
35%. Routes to Uttarakhand and Himachal Pradesh included in Category II 
?  Revised categorization to apply from winter schedule of 2017 
?  There view of routes will be done by MoCA once every5 years 
?  Withdrawal or revision of domestic operations to and within North East Region etc, subject to full compliance 
of RDG, can be done under prior intimation to MoCA at least three months before withdrawal or revision of 
the service 
 5/20 Requirement 
?  Replaced with a scheme which provides a level playing field 
?  All airlines can now commence international operations provided that they deploy 20 aircraft or 20% of total 
capacity (in term of average number of seats on all departures put together), whichever is higher for 
domestic operations 
Bilateral Traffic Rights 
?  GoI will enter into 'Open Sky' ASA on a reciprocal basis with SAARC countries and countries located beyond 
5000 km from Delhi 
 
 
 
?  For countries within 5000 km radius, where the Indian carriers have not utilised 80% of their capacity 
entitlements but foreign carriers /countries have utilised their bilateral rights, a method will be 
recommended by a Committee headed by Cabinet Secretary for the allotment of additional capacity 
entitlements 
?  Whenever designated carriers of India have utilised 80% their capacity entitlements, the same will be 
renegotiated in the usual manner. 
 Ground Handling Policy 
?  The Ground Handling Policy/ Instructions/Regulations will be replaced by a new framework: 
?  The airport operator will ensure that there will be three Ground Handling Agencies (GHA) including Air India's 
subsidiary/JV at all major airports as defined in AERA Act 
?  At non-major airports, the airport operator to decide on the  number of ground handling agencies, based on 
the traffic output, airside and terminal building capacity 
?  All domestic scheduled airline operators including helicopter operators will be free to carry out self-handling 
at all airports through their regular employees 
?  Hiring of employees through manpower supplier or contract 
?  workers will not be permitted for security reasons 
 Airport PPP/AAI 
?  Encourage development of airports by AAI, State  Governments, the private sector or in PPP mode 
?  Future tariffs at all airports will be calculated on a 'hybrid till' basis, unless specified otherwise in concession 
agreements. 30% of non-aeronautical revenue will be used to cross- subsidise aeronautical charges 
?  Increase non-aeronautical revenue by better utilisation of commercial opportunities of city side land 
?  AAI to be compensated in case a new greenfield airport is approved in future within a 150 km radius of an 
existing unsaturated operational AAI airport (not applicable to civil enclaves) 
 Aviation Security, Immigration and customs 
?  MoCA will develop 'service delivery modules' for aviation security, Immigration, Customs, quarantine officers 
etc in consultations with respective Ministries/Departments 
?  Allow Indian carriers to provide security services to other domestic airlines subject to approval of BCAS 
?  Encourage use of private security agencies at airports for non- core security functions to be decided in 
consultation with MHA 
?  Such agencies should be registered under the Private Security Agencies (Regulation) Act, 2005 and will also be 
separately accredited by BCAS 
?  Subject to minimum benchmarks being met, security architecture at the different airports will be 
proportionate to the threat classification and traffic volume. 
Helicopters and Charters I 
?  Separate regulations for helicopters will be notified by DGCA 
?  after due stakeholder consultation 
?  MoCA to coordinate with Govt agencies and other helicopter operators to facilitate Helicopter Emergency 
Medical Services 
?  Helicopters will be free to fly from point to point without prior ATC clearance in airspace below 5000 feet and 
areas other than controlled or prohibited or restricted airspace 
?  Airport charges for helicopter operations will be  suitably rationalized 
?  The existing policy of allowing Inclusive tour package charters will be further reviewed to include more 
categories of passenger charter flights recognised globally. 
Maintenance, Repair and Overhaul 
?  The MRO business of Indian carriers is around Rs 5000 crore, 90% of which is currently spent  outside India. In 
the budget for 2016-17, customs duty has been rationalised and the procedure for clearance of goods 
simplified. Further incentives proposed in the policy to give a push to this sector: 
Page 5


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: III, June 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
 
Why rail budget 
?  The NITI Aayog has submitted a 20-page note to the prime minister’s office arguing that the convention of 
presenting a separate railway budget every year be done away with. 
?  The practice of presenting separate budget was started after east India Railway Committee, chaired by Sir 
William Acworth, hence also known as the Acworth Committee, pointed out the need for unified 
management of the entire railway system. 
?  On the recommendations of this committee and ratification of the resolution for separation in 1924, the 
government took over the actual management of all the railways, and also separated the railway finances 
from the general governmental finances, leading to the practice of presenting the Railway Budget separately 
from the general budget of India every year. 
Important points of suggestions: 
?  The report says that the separate rail budget has not been of use to the railway sector and has only become a 
mechanism to announce the popular measures. 
?  Railways minister have been using it to announce populist measures like new trains, stopping the existing 
trains and giving freebies. 
?  Seldom has the budget touched upon the matters related to making the fairs more viable or the need to 
augment the capacity. 
?  Lot of resources are being wasted in creating a separate budget and the relation between the finance ministry 
and railways has become complicated due to this separation. 
Analysis: 
?  All those countries that Acworth Committee mentioned no longer have separate railway budget.  
?  There is no constitutional or legal requirement for separate railway budget. Union Budget is a constitutional 
requirement. And the Railways Act, 1989, anyway grants the central government the leeway to revise tariffs 
without consulting Parliament.   
? During the post-independence era, say from 1951 onwards, the railways accounted for 75% of public 
transport and 90% of freight. Today, in contrast, the share has reduced to 20% and 40%. so, there is no need 
to present separate rail budget.  
?  A railway budget within the Union Budget would  not decrease the importance of railways. In fact the budget 
would become more streamlined and consensual with the involvement of the government  right from the 
start. 
?  Process of a separate budget consumes a lot of resources. So a merged budget will cater to this problem. 
?  Railways should focus on better accounting practices and better tab on finances rather than focusing on an 
yearly separate budget. 
?  But by simply assuming that merging the railway budget with Union Budget will end populism is wrong. 
Railways is the lifeline of the people and no matter if the budget is separated or merged it will be looked 
upon by the citizens with a keen eye. 
 
 
?   Railways must modernize budgetary practices and adopt corporate accounting, to keep better tab on 
finances. The railways, for instance, need to accurately work out the social costs involved in their operations 
so that there is transparent subsidy-sharing with the Centre and the states. The sustained underinvestment in 
the railways needs to end. The way ahead is to have independent regulatory oversight on the railways, 
including for fares and freight tariffs, and open up rail infrastructure for much-needed competition and 
private sector participation to bring qualitative improvement in rail services.  
National Civil Aviation Policy, 2016  
?  Government has released  the  National Civil Aviation Policy 2016 . This is the first time since  independence 
that an integrated Civil Aviation Policy has been  brought out by the Ministry.   
?  The policy is very comprehensive, covering 22 areas of the Civil Aviation sector.  
Its salient     features are as follows : 
    Regional Connectivity Scheme 
?  This scheme will come into effect in the second quarter of  2016-17 
?  Airfare of about Rs 2500 per passenger for a one-hour flight 
?  This will be implemented by way of: a) Revival of airstrips/airports as No-Frills Airports at an indicative cost of 
Rs.50 crore  to Rs100 crore; b) Demand driven selection of Airports/airstrips for revival in consultation with 
State Govts and airlines 
?  Viability Gap Funding (VGF) to airline operators:  RCS only in those states which reduce VAT on ATF to 1% or  
less, provide other  support services and 20% of VGF 
?  Concessions by Stakeholders: a) There will be no airport charges; b) Reduced Service tax on tickets (on 10% 
of the taxable value) for 1 year initially ; c) Reduced Excise duty at 2%  on ATF picked at RCS airports 
?  State government will provide police and fire services free of cost.  Power, water and   other utilities at  
concessional rates 
?  Creation of Regional Connectivity fund for VGF through a small levy per departure on all domestic flights 
other than Cat II/ Cat IIA routes, RCS routes and small aircraft below 80 seats at a rate as decided bythe 
Ministry from time to time 
?  VGF to be shared between MoCA and State Governments in the ratio of 80:20.  For the North Eastern States, 
the ratio is 90:10 
Route Dispersal Guidelines (RDG)    
?  Category I to be rationalized based on a transparent criteria, i.e., flying distance of more than 700km, average 
seat factor of 70% and above and annual traffic of 5 lakh passengers 
?  The percentage of Cat.I traffic to be deployed on Cat.II, and IIA will remain the same while for CATIII it will be 
35%. Routes to Uttarakhand and Himachal Pradesh included in Category II 
?  Revised categorization to apply from winter schedule of 2017 
?  There view of routes will be done by MoCA once every5 years 
?  Withdrawal or revision of domestic operations to and within North East Region etc, subject to full compliance 
of RDG, can be done under prior intimation to MoCA at least three months before withdrawal or revision of 
the service 
 5/20 Requirement 
?  Replaced with a scheme which provides a level playing field 
?  All airlines can now commence international operations provided that they deploy 20 aircraft or 20% of total 
capacity (in term of average number of seats on all departures put together), whichever is higher for 
domestic operations 
Bilateral Traffic Rights 
?  GoI will enter into 'Open Sky' ASA on a reciprocal basis with SAARC countries and countries located beyond 
5000 km from Delhi 
 
 
 
?  For countries within 5000 km radius, where the Indian carriers have not utilised 80% of their capacity 
entitlements but foreign carriers /countries have utilised their bilateral rights, a method will be 
recommended by a Committee headed by Cabinet Secretary for the allotment of additional capacity 
entitlements 
?  Whenever designated carriers of India have utilised 80% their capacity entitlements, the same will be 
renegotiated in the usual manner. 
 Ground Handling Policy 
?  The Ground Handling Policy/ Instructions/Regulations will be replaced by a new framework: 
?  The airport operator will ensure that there will be three Ground Handling Agencies (GHA) including Air India's 
subsidiary/JV at all major airports as defined in AERA Act 
?  At non-major airports, the airport operator to decide on the  number of ground handling agencies, based on 
the traffic output, airside and terminal building capacity 
?  All domestic scheduled airline operators including helicopter operators will be free to carry out self-handling 
at all airports through their regular employees 
?  Hiring of employees through manpower supplier or contract 
?  workers will not be permitted for security reasons 
 Airport PPP/AAI 
?  Encourage development of airports by AAI, State  Governments, the private sector or in PPP mode 
?  Future tariffs at all airports will be calculated on a 'hybrid till' basis, unless specified otherwise in concession 
agreements. 30% of non-aeronautical revenue will be used to cross- subsidise aeronautical charges 
?  Increase non-aeronautical revenue by better utilisation of commercial opportunities of city side land 
?  AAI to be compensated in case a new greenfield airport is approved in future within a 150 km radius of an 
existing unsaturated operational AAI airport (not applicable to civil enclaves) 
 Aviation Security, Immigration and customs 
?  MoCA will develop 'service delivery modules' for aviation security, Immigration, Customs, quarantine officers 
etc in consultations with respective Ministries/Departments 
?  Allow Indian carriers to provide security services to other domestic airlines subject to approval of BCAS 
?  Encourage use of private security agencies at airports for non- core security functions to be decided in 
consultation with MHA 
?  Such agencies should be registered under the Private Security Agencies (Regulation) Act, 2005 and will also be 
separately accredited by BCAS 
?  Subject to minimum benchmarks being met, security architecture at the different airports will be 
proportionate to the threat classification and traffic volume. 
Helicopters and Charters I 
?  Separate regulations for helicopters will be notified by DGCA 
?  after due stakeholder consultation 
?  MoCA to coordinate with Govt agencies and other helicopter operators to facilitate Helicopter Emergency 
Medical Services 
?  Helicopters will be free to fly from point to point without prior ATC clearance in airspace below 5000 feet and 
areas other than controlled or prohibited or restricted airspace 
?  Airport charges for helicopter operations will be  suitably rationalized 
?  The existing policy of allowing Inclusive tour package charters will be further reviewed to include more 
categories of passenger charter flights recognised globally. 
Maintenance, Repair and Overhaul 
?  The MRO business of Indian carriers is around Rs 5000 crore, 90% of which is currently spent  outside India. In 
the budget for 2016-17, customs duty has been rationalised and the procedure for clearance of goods 
simplified. Further incentives proposed in the policy to give a push to this sector: 
 
 
?  MoCA will persuade State Governments to make VAT zero- rated on MRO activities 
?  Provision for adequate land for MRO service providers will be made in all future airport/heliport projects 
where potential for such MRO services exists 
?  Airport royalty and additional charges will not be levied on MRO service providers for a period of five years 
from the date of approval of the policy 
Aviation Education and Skill Building 
Estimated direct additional employment requirement of the Civil Aviation Sector by 2025 is about 3.3 lakh . All 
training in non licensed category will conform to National Skill Qualification Framework standards. MoCA will 
provide full support to the Aviation Sector Skill Council and other similar organisations/agencies for imparting 
skills for the growing aviation industry . There are nearly 8000 pilots holding CPL but who have not found any 
regular employment. MoCA will develop a scheme with budgetary support for Type- rating of Pilots. The detailed 
scheme will be worked out separately. 
Cabinet extends UDAY scheme deadline 
?  The Cabinet has approved an extension in the deadline for implementing the Ujjwal Discom Assurance Yojana 
(UDAY) by a year to March 31, 2017. The Cabinet decision extends this provision from the earlier deadline of 
March 31, 2016. 
?  This decision would allow states, which could not participate in UDAY earlier to join the scheme. 
?  The extension of the timeline is also to give states that have given their in-principle approval a little more 
time to order their finances before signing the official document. 
?  So far, 19 States have given in-principle approval to join the scheme, out of which 10 states—Rajasthan, Uttar 
Pradesh, Chhattisgarh, Jharkhand, Punjab, Bihar, Haryana, Gujarat, Uttarakhand and Jammu & Kashmir—
have signed MoUs with the Centre. 
Salient Features of UDAY:- 
?  UDAY will rearrange Rs 4.3 lakh crore debt of the utilities besides introduce measures to cut power thefts and 
align consumer tariff with cost of generating electricity. 
?  States shall take over 75% of DISCOM debt as on 30 September 2015 over two years – 50% of DISCOM debt 
shall be taken over in 2015-16 and 25% in 2016-17. 
?  This will be implemented through 4 initiatives – improving operational efficiencies of discoms, reduction of 
cost of power, reduction in interest cost of discoms and enforcing financial discipline on discoms through 
alignment with state finances. 
?  Government of India will not include the debt taken over by the States as per the above scheme in the 
calculation of fiscal deficit of respective States in the financial years 2015-16 and 2016-17. 
?  States will issue non-SLR including SDL bonds in the market or directly to the respective banks / Financial 
Institutions (FIs) holding the DISCOM debt to the appropriate extent. 
?  DISCOM debt not taken over by the State shall be converted by the Banks / FIs into loans or bonds with 
interest rate not more than the bank’s base rate plus 0.1%. Alternately, this debt may be fully or partly issued 
by the DISCOM as State guaranteed DISCOM bonds at the prevailing market rates which shall be equal to or 
less than bank base rate plus 0.1%. 
?  States shall take over the future losses of DISCOMs in a graded manner and shall fund them. 
?  State DISCOMs will comply with the Renewable Purchase Obligation (RPO) outstanding since 1st April, 2012, 
within a period to be decided in consultation with Ministry of Power. 
?  Operational efficiency improvements is proposed to be brought in by compulsory smart metering, 
upgradation of transformers and meters to reduce electricity lost during transmission and distribution (or 
theft) from around 22 per cent to 15 per cent by 2018-19. 
?  States accepting UDAY and performing as per operational milestones will be given additional / priority 
funding through Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY),Integrated Power Development Scheme 
(IPDS), Power Sector Development Fund (PSDF) or other such schemes of Ministry of Power and Ministry of 
New and Renewable Energy 
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mock tests for examination

,

Semester Notes

,

Week III June 2016 UPSC Notes | EduRev

,

video lectures

,

Week III June 2016 UPSC Notes | EduRev

,

Week III June 2016 UPSC Notes | EduRev

,

MCQs

,

Exam

,

Objective type Questions

,

past year papers

,

Summary

,

pdf

,

Sample Paper

,

Free

,

ppt

,

practice quizzes

;