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India jumps 19 places in World Banks Logistics Performance Index; Improves its Ranking from 54 (in 2014) to 35 (in 2016)
Aug 31,2016

The World Bank has recently released a Logistics Performance Index (LPI) 2016 report titled n++Connecting to Complete 2016n++. The Logistics Performance Index Report is published by World Bank every two years.

India has now been ranked 35 amongst 160 countries compared to rank of 54 in LPI 2014. This is a jump of 19 places. Further, in terms of the six-components of the LPI i.e. Customs, Infrastructure, International Shipments, Logistics Quality and Competence, Tracking and Tracing, and Timeliness, Indias ranking is 38, 36, 39, 32, 33 and 42 respectively.

The LPI is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance.

The LPI is based on a worldwide survey of stakeholders on the ground providing feedback on the logistics n++friendlinessn++ of the countries in which they operate and those with which they trade. They combine in-depth knowledge of the countries in which they operate with informed qualitative assessments of other countries where they trade and have experience of global logistics environment. Feedback from such stakeholders is supplemented with quantitative data on the performance of key components of the logistics chain in the country of work.

Improvement in Indias rank in Logistics Performance Index adequately establishes steady performance in our competitiveness in manufacturing and trade that also acts as one of the growth driver of Make in India Programme.

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CCEA approves Initiatives to revive the Construction Sector-Backgrounder
Aug 31,2016

The Cabinet Committee on Economic Affairs under the Chairmanship of Prime Minister Shri Narendra Modi has approved today a series of initiatives to revive the Construction Sector.

These initiatives include:

(i) PSUs/Departments may seek the consent of the contractors/ concessionaires to transfer the arbitration cases initiated under the pre-amended Arbitration Act to the amended Arbitration Act, wherever possible;

(ii) In case of claims where the PSU/ Department has challenged the Arbitral Award, 75% of the award amount may be paid by the PSU to the contractor/ concessionaire against margin free Bank Guarantee;

(iii) All PSUs/ Departments issuing public contracts may consider setting up Conciliation Committees/ Councils comprising of independent subject experts in order to ensure speedy disposal of pending or new cases;

(iv) Item-rate contracts, may be substituted by EPC (turnkey) contracts, and PSUs/ Departments may adopt the Model EPC contracts for construction works; and

(v) Department of Financial Services, in consultation with Reserve Bank of India, may evolve a suitable one-time scheme for addressing stressed bank loans in the construction sector.

Major Impact

These initiatives are expected to help in improving the liquidity in the short run and reform the contracting regime in the long run. Given the significant multiplier effect the construction sector has on the economy, these measures are expected to give a major boost to economic growth. As the sector provides the largest segment of direct and indirect employment, the revival of the sector would also help in significant employment generation.


Construction sector has an important place in the Indian economy. It is the second largest contributor to economic activity accounting for about 8% of GDP; accounts for the second highest inflow of FDI after the services sector; generates the highest level of direct and indirect jobs employing about 40 million people and creating 2.7 new jobs indirectly for every Rs. 1.00 lakh invested. The sector has major forward (infrastructure, real estate, manufacturing) and backward (steel, cement, etc.) linkages, implying a high multiplier effect on economic growth, almost two times. Major construction activity originates in the infrastructure, industrial and real estate sectors, where infrastructure sector accounts for almost half of the demand.

The demand for construction services is expected to rise due to several factors, like massive expansion of the infrastructure sector, industrialization, urbanization, rise in disposable incomes, various Government initiatives to improve Indias residential and transport infrastructure (Smart Cities project, Housing for All by 2022, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and easing of FDI norms in 15 sectors including real estate and construction). Timetrics Construction Intelligence Centre (CIC) projects major growth for the construction industry in India, with average annual growth in real terms expected to improve from of 2.95% in 2011-2015 to 5.65% during 2016-2020.

However, of late, the construction sector has been showing signs of stress. Revenue growth and profit before tax (PBT) margins have declined significantly. Most companies are barely able to cover interest costs from earnings. Increasing debt levels remain a critical issue affecting financial stability and borrowings. Several factors have contributed to this stress e.g. in stalled assets in infrastructure sector and high levels of receivables especially from the government entities, slowdown in real estate sector leading to stretched liquidity and limited resources.

A report commissioned by the Cll indicates that: (i) Pending claims from government bodies are key factor behind burgeoning debt of construction companies, accounting for -150% of the debt; (ii) Over 85% claims raised are still pending of which 11% are at the level of employers, 64% at arbitrators and 8,5% in Courts; (iii) Average settlement time is 7.5 years; (iv) Awarded claims do not get settled after the Arbitrators decision; (v) Almost all court orders uphold the arbitrators decisions and referring claims to courts leads to delayed pay-out by about 2.5 years; and (v) Only about 8% of total claimed amount (among settled claims) was agreed for and paid out by NHAI in FY15.

Subsequent to the discussions with various stakeholders including the representatives of construction companies, banks, NHAI, concerned Departments/Ministries and PSUs, following issues emerged:

(a) Substantial claims raised by contractors/ concessionaires against PSUs are pending either in the arbitration proceedings or in courts;

(b) Most of the pending claims are legacy issues relating to old item-rate contracts. With phase out of item-rate contracts and adoption of EPC (turnkey) contracts in NHAI, the number and quantum of claims is likely to come down;

(c) Settlement of claims through conciliation proceedings by committees of experts has proved to be much more effective than arbitration and the settlement is reached at a much lower value than the claimed amount in conciliation proceedings;

(d) Delays in final settlement of disputed claims implies significant interest payments by the PSUs by way of delayed payment charges;

(e) The amended Arbitration Act addresses some of the lacuna of the original Act; and

(f) Mounting claims in public contracts indicate deficiencies in the contracting regime thus warranting reform.

Based on detailed discussions, it was decided that NITI Aayog would move a proposal to the CCEA suggesting various initiatives required for addressing the issues ailing the construction industry in view of the larger economic importance and multi-sectoral nature of the issues. Accordingly, after detailed stakeholder consultations, a series of initiatives is being put in place to address the issues impacting the construction sector.

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Cabinet apprised of MoU between CERT-In India and CERT-UK
Aug 31,2016

The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has been apprised of the Memorandum of Understanding (MoU) signed on 20th May, 2016 between Indian Computer Emergency Response Team (CERT-In) and Ministry of Cabinet Office, UK (as represented by CERT-UK, a unit of the Cabinet Office on Cyber Security).

The MoU intends to promote closer cooperation between India and the United Kingdom for exchange of knowledge and experience in detection, resolution and prevention of security-related incidents.

Cyber Security was one of the agenda items for discussion during Honble Prime Ministers visit to UK in November, 2015. With this MoU, participating countries can exchange technical information on Cyber attacks, response to cyber security incidents and find solutions to counter the cyber attacks. They can also exchange information on prevalent cyber security policies and best practices. This MoU helps to strengthen cyber space of both countries, capacity building and improving relationship between them.

Earlier CERT-In signed MoUs with counterpart/similar organizations in about seven countries - Korea, Canada, Australia, Malaysia, Singapore, Japan and Uzbekistan. Ministry of External Affairs has also signed MoU with Cyber Security as one of the areas of cooperation with Shanghai Cooperation Organization.

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Cabinet approves redevelopment of Berths 8, 9 and Barge Berths at the Port of Mormugao, Goa
Aug 31,2016

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for Redevelopment of Berths 8, 9 and Barge Berths at the Port of Mormugao, Goa on Public Private Partnership (PPP) mode at an estimated cost of Rs. 1145.36 crore. The project will be completed within 36 months from the date of award of concession.

The project envisages reconstruction of 3 old berths and replacement of 38 year old equipment by creating facilities for handling a variety of cargo like iron ore, bauxite, gypsum, limestone, fertilizers, steel coils and other general cargo at Mormugao Port catering to ships up to 1,85,000 DWT. The existing capacity of these old berths with 38 year old iron ore handling equipment is 13 Million Tonnes Per Annum (MTPA). As a result of modernization of berths, more efficient operations due to this project and utilization of deeper draft of 19.5 Mts. being created in the port, an incremental capacity of 6.22 MTPA would be added.

Construction activity includes construction of berths, buildings, railway lines, dredging and reclamation and installation of equipment. The construction process particularly the civil works are labour intensive and will lead to employment generation. The direct and indirect employment in this regard will be about 400 people per day. The project will contribute to industrial growth of Goa. The project will have a positive effect on industries such as steel, power, iron ore, agriculture and cement.

This project is primarily meant for export of iron ore to meet the growing demand of Goan iron ore due to the lifting of ban on export of iron ore.

State of the art technology will be used to address environment concerns.

The following measures will ensure it:

i) Entire iron ore will be brought to the port through barges using inland waterways of rivers Mandovi and Zuari and no road movement is involved.

ii) Iron ore will be unloaded through grab un-loaders and discharged into hoppers for stockpiling. For cargo retrieval, bucket wheel reclaimers will be used and loaded onto vessels by stackers.

iii) All the conveying system will be covered.

iv) Dry fog system will be installed so that there are no fugitive dust emissions. Additionally water spraying/sprinkling systems will be installed at specific discharge points to mitigate the problems.

v) The stockpile will be stored under proper cover.

vi) The possibility of dust formation would also be under control as no wagon tippling would be involved.

The project will prove to be a boon for Goan economy.

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Cabinet approves dissolution of Central Inland Water Transport Corporation
Aug 31,2016

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to proposal for dissolution of Central Inland Water Transport Corporation Limited (CIWTC). The Voluntary Retirement Scheme for CIWTC was implemented in the year 2015 as per decision of the Cabinet on 24.12.2014.

CIWTC, a company incorporated on 22nd February 1967 under the Companies Act 1956 by the Government of India, when it took over the assets and liabilities of the erstwhile River Steam Navigation Company under a scheme approved by the Calcutta High Court. Due to inherent limitation and infrastructure bottle necks, the operations of CIWTC could never become viable and company has been incurring losses since inception. The Company has only five employees at present.

In line with the decision of the Government to revitalize sick CPSUs wherever possible or to wind up irretrievable cases, the dissolution of the CIWTC would be initiated after disposal of movable and immovable assets. This would free up the assets for better utilization and for the benefit of the people. A number of assets would be taken up by Inland Waterways Authority of India to provide services on Brahmputra River (NW-4).

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Cabinet approves grant of Permanent Residency Status to Foreign Investors
Aug 31,2016

The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has approved the scheme for grant of Permanent Residency Status (PRS) to foreign investors subject to the relevant conditions as specified in the FDI Policy notified by the Government from time to time.

The scheme is expected to encourage foreign investment in India and facilitate Make in India Programme. Under the Scheme, suitable provisions will be incorporated in the Visa Manual to provide for the grant of PRS to foreign investors.

The PRS will be granted for a period of 10 years with multiple entry. This can be reviewed for another 10 years if the PRS holder has not come to adverse notice. The scheme will be applicable only to foreign investors fulfilling the prescribed eligibility conditions, his/her spouse and dependents. In order to avail this scheme, the foreign investor will have to invest a minimum of Rs. 10 crores to be brought within 18 months or Rs.25 crores to be brought within 36 months. Further, the foreign investment should result in generating employment to at least 20 resident Indians every financial year.

Permanent Residency Status will be granted for a period of 10 years initially with multiple entry facility, which can be renewed for another 10 years. PRS will serve as a multiple entry visa without any stay stipulation and PRS holders will be exempted from the registration requirements. PRS holders will be allowed to purchase one residential property for dwelling purpose. The spouse/ dependents of the PRS holder will be allowed to take up employment in private sector (in relaxation to salary stipulations for Employment Visa) and undertake studies in India.

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Cabinet approves creation of a Project Development Fund to catalyse Indian economic presence in Cambodia, Laos, Myanmar and Vietnam
Aug 31,2016

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to create a Project Development Fund (PDF) with a corpus of Rs 500 Crore for catalysing Indian economic presence in the Cambodia, Laos Myanmar and Vietnam.

The PDF shall be housed in Department of Commerce and operated through the EXIM Bank. The PDF shall be governed by an Inter-Ministerial Committee under the chairpersonship of the Commerce Secretary.


CLMV countries namely Cambodia, Laos, Myanmar and Vietnam have a unique position in the regional value chains and offer a gateway for market access to China/EU and other markets due to various trade agreements. The key advantage of positioning India on the regional value chains is securing on a long term basis, a dedicated market for Indian raw materials and intermediate goods besides a dedicated source for inputs and raw materials for Indian industry. While opportunities are a plenty in CLMV region, Indian entrepreneurs endeavors in these countries have, thus far, been limited due to limited information, infrastructure and other contingent risks. The PDF shall benefit Indias industrial community for business expansion, and to maintain cost competitive supply chains, besides integrating with global production networks.

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HAL & DRDO the current windows for MSMEs participation with Defence Indigenisation: Air Marshal P P Khandekar
Aug 31,2016

Air Marshal P P Khandekar, AO-in-C (Maintenance), IAF on Tuesday emphasized, articulating that MSMEs should progress with defence indigenisation programme with increased Research & Development (R&D) having innovative approach as it would only ensure and enhanced their participation with armed forces through defence undertakings such as HAL and DRDO.

Addressing a Seminar on n++MSME Role in Indigenisation of IAF Requirements - Combating Challenges and Creating Capabilities with MSMEsn++ under aegis of PHD Chamber of Commerce and Industry here today, Mr. Khandekar said that currently MSMEs participation with armed forces was possible through the two entities and therefore, these should take advantages of the two windows with quality of manufacturing utmost in their mind.

Mr. Khandekar was addressing the Seminar which was organized as a Curtain Raiser to publicize a workshop on MSMEs role in Indigenisation of IAF requirements to be held at Lucknow on 14th of next month under the joint aegis of HAL, DRDO and PHD Chamber of Commerce and Industry.

The Seminar is likely to discuss and understand in detail the capabilities MSMEs posses and sensitize the local industry with the Indian Air Force requirement for future collaborations. There will also be display of equipment by BRD units of Indian Air Force.

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Delhi government to install CCTV cameras in schools: Secretary, Education
Aug 31,2016

Delhi government is planning to bring Closed Circuit Television cameras (CCTV) not just for the purpose of security but to keep a tab on what is going on inside classrooms, said Punya Salila Shrivastava, Secretary, Education said at an ASSOCHAM event.

Ms. Punya Salila Shrivastava, Secretary, Education, elaborated upon the key initiatives taken by the Delhi Government this year. She further said, last year our budget witnessed a hike of about 106% over the previous year budget nearly Rs.10,000 crore in the state government to focus on education.

Ms. Punya said, Delhi government has identified the three aspects. Providing adequate facilities and good infrastructure are the prime focus. We have about 1,011 government schools with nearly 15 lakhs children as of today. In our government schools, we have 100-150 children sitting in a classroom.

Some crowded area of East and north East part of Delhi. Schools are running in three shifts means three batches into the same school and sometime they come to school on alternative basis. So, there are areas where density of population is very high. So, the focus was we have to improve our infrastructure, said Ms. Punya.

Second area in which we are working is the capable and dynamic teachers in our school. So, we want to ensure the adequate quality of our teachers and third aspects is improving our curriculum and teaching practice.

By using technology in this regard, as far infrastructure and adequate facilities are concern, we have gone on massive construction of simple classrooms not smart as yet. So, 8,000 classrooms are being constructed across the Delhi, added Ms. Punya.

Some schools we are developing in a pilot manner. In all our schools last year, we set up computers in all our schools with the content and instructors also supplied by the companies.

I request all the companies that whenever you develop the content, should keep in mind that you are generating for first generation learner. So, we have set up computer labs across all our schools.

We realise the infrastructure of the government school is very bad. It needs a lot of coordination by the principal with whole host of agency. Curriculum improvement is also first thing the government has also started working on.

In Delhi, we have done a survey of each and every child studying 6th, 7th, 8th and 9th standards. To know there learning skills, we found 74% of children in 6th cant read their own text book and nearly 40% cant read the text book of class 2, mentioned Ms. Punya.

We are doing also doing lot of planning because we really want them to read it fast otherwise they will miss out entire year. Again, Technology plays a very vital role here in both ways in tracking the progress of every child and make up the child read even faster.

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E Carts and E Rickshaws freed from permit requirements
Aug 31,2016

The Ministry of Road Transport and Highways has issued a Gazette Notification today that serves to free e rickshaws and e carts from permit requirements. According to the notification, the provisions of the sub-section (1) of section 66 of the Motor Vehicles Act, 1988 will not apply to e-carts and e-rickshaws (as defined in section 2A of the said Act,) that are used for carrying goods or passengers with personal luggage. This means that vehicles that are registered as e carts or e - rickshaws will not require any permits. State Governments can however impose restrictions under appropriate traffic laws on plying of these vehicles in specific areas or specific roads.

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MOU Signed Between M/O Social Justice & Empowerment and National Drug Dependence Treatment Centre (NDDTC) AIIMS
Aug 31,2016

The Ministry of Social Justice & Empowerment has signed a Memorandum of Understanding (MoU) with National Drug Dependence Treatment Centre (NDDTC) under All India Institute of Medical Sciences (AIIMS), New Delhi to conduct a National Survey on Extent and Pattern of Substance Use. The proposed National Survey on Extent and Pattern of Substance Use will provide estimates of proportion and absolute number of Users and Dependent individuals of various psychoactive substances (Drugs) in all the states/UTs and at the National level in India. It will also help in mapping the presence of services and interventions for drug dependent individuals and identifying the gaps in service delivery.

Two methodological approaches have been suggested for conducting the National Survey, one being a Household Survey in the general population and the other being a Respondent Driven Sampling (RDS) Survey. In the Household Survey, approximately 6,00,000 eligible persons will be surveyed across the country. In the RDS method, a total of 60,000 drug dependent individuals will be interviewed. Focussed Thematic Studies will also be conducted on specific topics or vulnerable populations which are likely to remain underrepresented in the above two approaches.

The Ministry of Social Justice and Empowerment, is the nodal Ministry for drug demand reduction. It coordinates and monitors all aspects of drug abuse prevention which include assessment of the extent of the problem, preventive action, treatment and rehabilitation of addicts, dissemination of information and public awareness. The Ministry provides community-based services for the identification, treatment and rehabilitation of addicts through voluntary organizations.

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Gujarat becomes the first state to distribute 2 crore LED Bulbs under UJALA
Aug 31,2016

Under the Government of Indias Unnat Jyoti by Affordable LEDs for all (UJALA) scheme, Gujarat has become the first state to distribute 2 crore LED bulbs. Gujarat has reached this milestone in just 96 days andover 42 lakh households have already benefitted from the scheme.Energy Efficiency Services Limited (EESL), under the administration of Ministry of Power, Government of India, is distributing approximately 2 lakh bulbs daily in Gujarat which is again a record in itself.

During his speech in Jamnagar the Prime Minister Shri Narendra Modi said, n++There is competition between states to outdo each other in terms of LED distribution. Gujarat, in less than 100 days is now leading in terms of LED distribution across the nation. I congratulate the entire team for implementing the LED Bulb programme. I am confident that every household in Gujarat will adopt LEDs and save on electricity bills. The state will save a lot of energy and will also lead the way in helping protect the environmentn++

The distribution of 2 crore LED bulbs has led to an annual energy savings of 259 crore kWh which is equivalent to lighting up 5 lakh Indian homes for an entire year. Alongside the savings in units, the state has also benefitted from daily CO2 emission reduction of 5,000 tonnes. The programme has also helped the state to avoid 520MW of peak demand.

In Gujarat, 9W LED bulbs are being distributedunder the UJALA scheme. These energy efficient bulbs come with a free 3 year replacement warranty for any technical defect. To avail the bulbs, consumers have an option of paying upfront amount of Rs. 70 per bulb or they can choose an EMI option. Consumers choosing to pay through EMI will have to pay Rs. 75 in total, where an amount of nearly Rs. 20 per LED bulb will be added to their bi-monthly electricity bill for a period of 4 bill cycles. Consumers stand to save nearly Rs. 336 every year on their electricity bills per LED bulb, making the LED bulbs free to the user in just 3 months. The state government aims to distribute 12 crore LED bulbs across the state. This would lead to energy savings of nearly 650 Crore kWh and cost savings of about Rs. 2,500 crore.

The list of other distribution centres can be viewed on For any queries or information regarding UJALA consumers can also call on the Gujarat helpline 0265- 2343678. During the distribution period, replacements can be done through any of the distribution counters that are operating within the city.

Under UJALA, over 15 crore LED bulbs have already been distributed across India. This is leading to annual energy savings of 1948 crore kWh and resulting in avoidance of 3,900 MW of peak demand. Through the programme the estimated cumulative cost reduction of bills of consumers, annually is INR 7990 crores.

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Union Home Minister reviews MHA budget utilization
Aug 31,2016

The Union Home Minister Shri Rajnath Singh reviewed the expenditure made by the Ministry of Home Affairs in this financial year. The MHA has utilized about 30% of the budget during first five month (April-to-August, 2016), out of total budget of Rs. 75,355.48 crores for 2016-17.

The Union Home Minister has asked the officers to ensure that the budget utilization increases to 50% by the end of September, 2016.

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Memorandum of Agreement signed between IALA and DGLL
Aug 31,2016

A Memorandum of Agreement (MoA) has been signed between the IALA (The International Association of Marine Aids to Navigation and Lighthouse Authorities), Paris, France and DGLL (Directorate General of Lighthouses & Lightships) on 11th August, 2016 at Kuala Lumpur, Malaysia. With the signing of this MoA, the DGLL Training Centre at Kolkata will be in position to deliver a professional training course on the management of marine aids to navigation in line with IALA model course itself.

Directorate General of Lighthouses & Lightships (DGLL) is primarily responsible for providing n++Aids to Navigation servicen++ for safety of mariners in the Indian waters.

Apart from upgrading the skills and capacity of AtoN (Aids to Navigation) personnel in the country, this Training Centre would also attract AtoN personnel from SAARC countries and North Indian Ocean Region countries for training.

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MoU exchanged between CRPF and Ministry of Skill Development & Entrepreneurship
Aug 31,2016

A Memorandum of Understanding was signed between Central Reserve Police Force and the Ministry of Skill Development and Entrepreneurship (MSDE) in the presence of Union Home Minister Shri Rajnath Singh here today.

Shri Rajnath Singh expressed his pleasure in the collaboration of the Ministry of Home Affairs (MHA) along with the Ministry of Skill Development & Entrepreneurship. He said that both the Ministries should join hands together to make India a Skilled Nation.

Referring to the MoU, Shri Rajnath Singh said that CRPF has its presence even in the remotest areas of the country and it can play a pivotal role in extending the benefits of Skill Development Schemes like Pradhan Mantri Kaushal Vikas Yojna to the tribals of Naxal affected areas, where few trainers dare to venture due to security reason. CRPF can also play a crucial role for Skill Training of J&K youth and even in the disturbed areas of North-Eastern region of country, he added. The Minister said that the MoU will also help the retired CRPF personnel, widows of martyrs, disabled personnel, unemployed CRPF wards and family members of CRPF personnel by providing them Welfare and gainful employment.

The Minister of State for Skill Development and Entrepreneurship (I/C), Shri Rajiv Pratap Rudy said on this occasion that his Ministry is honoured that the MHA has recognised the efforts of Skill Development initiatives and also for giving an opportunity to work with CRPF jawans. He said that both the Ministries realise the value of such a knowledgeable, passionate and experienced workforce and also the contribution that their families make towards the country. Shri Pratap Rudy said that it is our endeavour and chance to give back to these personnel by training them on skill sets and creating opportunities for them which are equivalent to their current capacity and also creating training and job prospects for their family members.

The beneficiaries of the Skill Development Programme would be spouses of CRPF personnel, disabled personnel, widows of martyrs, wards of CRPF personnel or interested civilians. They would be trained in apparel making, automobile, beauty and wellness, food processing, IT, etc in various CRPF Group Centres/ establishments across the country. The Force would also extend the requisite security and support to skill development trainers who would be visiting the hitherto inaccessible interior areas in remote villages to impart the skills to the tribal population.

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