The following are the main components of the Energy efficiency Mission. These programs have resulted in avoided generation capacity of over 7,500 MW during the first four years of the Eleventh Plan.

Standards and Labelling of Equipment & Appliances

Labelling has been introduced for 16 major energy-consuming appliances, providing users with information on the energy use of a model, and its relative efficiency as compared to others. It has been made mandatory for air-conditioners, refrigerators, distribution transformers and tube lights.

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Energy Efficiency in Buildings

A national Energy Conservation Building Code (ECBC) has been prepared for the design of new commercial buildings. Over 700 ECBC-compliant buildings are at various stages of construction. Two States have adopted ECBC, making it mandatory for all new, large commercial buildings to comply with the Code. Performance contracting through Energy Service Companies (ESCOs) is being promoted to enable the retrofit of existing buildings so as to reduce their energy consumption.

Energy Efficiency in Industry

467 industrial units from 8 sectors have been declared as Designated Consumers. Together they account for about 35 percent of the total energy consumption in India. Each designated consumer has been prescribed a target percentage reduction in its specific energy consumption to be achieved by 2014-15. Those who exceed their targets would receive tradable Energy Saving Certificates for their excess savings, which could be used for compliance by other designated consumers, who find it expensive to meet their targets through their own actions. A major programme to enhance the energy efficiency of small and medium enterprises is also being launched, focusing on SME clusters, and the development of local consultants, equipment vendors, and financial institutions through replicable pilot projects.

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Residential Lighting

The penetration of energy-efficient compact fluorescent lamps (CFLs) in the domestic sector has been relatively limited because of the high costs of CFLs.  The Bachat Lamp Yojana (BLY) provides CFLs to households at the cost of incandescent bulbs. Distribution Companies select qualified investors to sell high-quality CFLs in their region. The investors earn carbon credits due to the lower energy use by the CFLs. The BEE has registered a country-wide Programme of Activities (POA) under the Clean Development Mechanism (CDM) which enables the quick registration of each investor-led project as a CDM project under the POAs. Currently, over 20 million CFLs have already been distributed under the BLY programme.

Energy Efficiency in Agricultural Pumping

Replacement of inefficient agricultural pumps by efficient pumps is enabled through the performance contracting mode. Pumps on designated feeders (which have no other loads) are evaluated for their current energy consumption, and then the existing pumps are replaced with efficient pumps by an ESCO. The resultant energy savings are evaluated, and the ESCO is paid a share of the savings. Six pilots have been launched to assess the viability of this model.

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On the positive note, however, NSC has a relatively shorter lock-in period of just about 6 years and the interest here is compounded half-yearly. Thus, every Rs 100 invested into NSC will grow to Rs 160.10 on maturity.

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TAX SAVING BANK FDS

Investment up to Rs 1 lakh in these special tax saving bank fixed deposits also entails an investor tax deduction under Section 80C.

These fixed deposits mandate a lock-in period of five years and interest is compounded quarterly, just like any other ordinary bank fixed deposit.

The drawback is taxability of interest income upon maturity. As most banks are currently offering attractive interest rates, tax-saving bank fixed deposits are currently offering interest rates as high as 8.5% to its investors.

SENIOR CITIZENS SAVING SCHEME

Indian citizens who have attained 60 years of age or those who have attained at least 55 years of age and have opted for voluntary retirement scheme are eligible to invest in senior citizens saving scheme, which offers a fairly attractive interest rate of 9% a year, payable on quarterly basis.

While investment in this scheme is eligible for tax deduction under Section 80C, interest earned shall be taxable in the hands of the investor.

EQUITY LINKED SAVINGS SCHEME (ELSS)

These tax saving mutual fund schemes do carry an embedded market risk and calls for investor prudence before making an investment decision. However, their returns are equally rewarding and tax-free in the hands of the investor.

As ELSS has a mandatory lock-in period of three years, they are positioned as long-term equity assets and thus returns are tax-free in the hands of the investor. And though these schemes mandate a three-year lock-in period, investors are likely to be better off if they continue to stay invested for a longer term as equities generate best returns over a longer time frame.

*The article is inspired by Economic Times Story.

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The service sector is the backbone of the socio-economic growth of the country. It is the largest and fastest growing sector around the globe and the biggest employer too. The real reason behind this robust growth is the increase in urbanization, privatization and increased demand for the consumer services – be it intermediate or final consumer services. Indian services sector witnessed a boom and it is one of the major contributor to GDP and employment within in recent times. The trends are changing here in our land, the service sector not only account for more than half of India’s GDP and a contributor of the quarter of employment in the country. There is a wide range of the activities in the services sector but one of the key service industry is to be looked upon would be HEALTH AND EDUCATION. Having a wide range of activities and looking at the robust growth and LIONS SHARE in India’s GDP the Finance Ministry for the first time put a separate chapter in Pre-Budget Economic Survey for a better and more regular data on the sector.

The share of services in India’s GDP at factor cost rose rapidly from 30.5% in 1950-51 to 55.2% in 2009-10. if construction segment is also included in it will add up to tall 63.4% but as p[er national accounts classification in its secondary sector though RBI and international institutions like WTO included it under service sector. Central Statistical Organisation (CSO) classified this sector into four main categories:

1. trade, hotels, and restaurants;

2. financing, insurance, real estate and business services;

3. transport, storage and communication; and

4. community social and personal services.

According to WTO, India is the net exporter of services. We need to work on our service sector to maintain the growth or robust growth in other words for upcoming years. It has been seen that the top 12 countries logged a negative growth due to getting struck in the swirls of financial crises but India (2.6%) and China(9.4%) has recorded positive growth.

1. The need is for retaining the country’s competitiveness in those services sector where it has already distinguished such as IT and ITeS and telecommunication.

2. Tourism and Shipping industry where other nations have already established, we need to do more homework there in respect of tourists friendly milieu and to match the standards of facilities provided there of international level.

3. Niche areas such as financial services, healthcare, education, accountancy, legal and other services where country have a huge domestic market has shown some dents in global markets. This requires reciprocal movements on the part of India in opening up its own markets, liberalizing FDI not only to improve infrastructure but also to absorb best practices universes that are so universally acclaimed.

Another important factor playing the important role in the service sector. The continued growth of the services sector is predicted on certain reforms and these, unfortunately, have all run into controversies, political differences and look increasingly uncertain . The single one factor that can add up to the expectations of service sector or that can contribute most to the further growth is the flow of FDI. Despite severe restrictions, the services sector has attracted no less than 44% of the total equity flows between April 2000 and December 2010, in only four sectors namely, financial and non-financial services, computer hardware and software, telecommunication and housing and real estate.

It should be noticed that greater integration with large global players through investment and international relationship building could help in overcoming these challenges and making India a services superpower.

According to paper published by Union Finance Ministry, top priority area relating to FDI are:

1. retail trade FDI;

2. raising FDI cap in insurance and banking sector ; and

3. FDI in railways.

let us now have a look at the issue which made a huge hubbub few months back, yeah you got it right FDI in retail.

The opposition to FDI in retails by political parties and others is somewhat misplaced. Indeed, the entry of large organised retail chains could benefit the small time farmers to the unemployed youth in the cities and towns. The govt. is reportedly working out a set of rules for the operation of foreign retail chains. These will understandably include the requirement of local procurement. According to the reports, the foreign retailers will be obliged to procure at least 30% of their own wares locally. the large retailers could as well help in stabilizing prices by going directly to the farmers for the purchase of food, vegetables, and other eatables, thereby cutting out the tiers of middlemen. It is well known how the traders had jacked up the prices of onion during a temporary shortage of the onions in the North Indian markets.

Unless the service sector growth quickens, India cannot attain the professed double-digit growth. Attracting FDI and forging more effective international linkages are the key to this objective. At last not going in very much detail of this large sector we should halt our activities here and will come up with the analysis of sub-sectors of this LIONS SECTOR discussing various pros and cons. once again wish you all a very very HAPPY and PROSPEROUS NEW YEAR. ENJOY THIS NEW YEAR WITH YOUR LOVED ONES.

National Bank for Agriculture and Rural Development is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. It also has the mandate to support all other allied economic activities in rural areas, promote integrated and sustainable rural development and secure prosperity of rural areas. In discharging its role as a facilitator for rural prosperity National Bank for Agriculture and Rural Development is entrusted with

1. Providing refinance to lending institutions in rural areas
2. Bringing about or promoting institutional development and
3. Evaluating, monitoring and inspecting the client banks

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Besides this pivotal role, National Bank for Agriculture and Rural Development also:

• Acts as a coordinator in the operations of rural credit institutions
• Extends assistance to the government, the Reserve Bank of India and other organizations in matters relating to rural development
• Offers training and research facilities for banks, cooperatives and organizations working in the field of rural development
• Helps the state governments in reaching their targets of providing assistance to eligible institutions in agriculture and rural development
• Acts as regulator for cooperative banks and RRBs
• Extends assistance to the government, the Reserve Bank of India and other organizations in matters relating to rural development
• Offers training and research facilities for banks, cooperatives and organizations working in the field of rural development
• Helps the state governments in reaching their targets of providing assistance to eligible institutions in agriculture and rural development
• Acts as regulator for cooperative banks and RRBs

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Some of the milestones in National Bank for Agriculture and Rural Development’s activities are:

• Total production credit disbursed at end March 2011 was 34196 crore.
• Refinance disbursement under Investment Credit to commercial banks, state cooperative banks, state cooperative agriculture and rural development banks, RRBs, and other eligible financial institutions during 2010-11 aggregated 13485.87 crores.
• Through the Rural Infrastructure Development Fund (RIDF) 12060.04 crores were disbursed during 2010-11. A cumulative amount of 121488.40 crores has been sanctioned for 444162 projects as on 31 March 2011 covering irrigation, rural roads, and bridges, health and education, soil conservation, drinking water schemes, flood protection, forest management etc.
• Under Watershed Development Fund which has a balance of 1847.69 crores as on 31 March 2011, 579 projects in districts of 14 states have benefited.
• Farmers now enjoy hassle free access to credit and security through 1009.30 lakh Kisan Credit Cards that have been issued through a vast rural banking network. During 2010-11, 72.6 lakh KCC were issued by banks with a sanctioned limit of 43370 crores.
• Under the Farmers’ Club Programme, during the year 21903 clubs were launched, taking the total to 76708 clubs as on 31 March 2011 helping farmers get access to credit, technology and extension services.
• Village Development Programme (VDP) is being implemented in 801 villages across 25 states.
• Under Tribal Development Fund, cumulative sanction amounted to 917.60 crores for 317 projects covering 2.5 lakh families. During 2010-11 financial assistance of 373.97 crores was sanctioned for 126 projects benefiting 94,163 tribal families.
• Under Farm Innovation and Promotion Fund (FIPF), cumulatively 123 projects in various states, involving financial support of 11.65 crores were sanctioned as on 31 March 2011.
• Farmers Technology Transfer Fund (FTTF) – 512 innovative projects in 27 states with grant assistance of 44.97 crores were sanctioned during 2010-11.
• There were more than 69.53 lakh savings linked SHGs and more than 48.51 lakh credit linked SHGs covering 9.7 crore poor households as on 31 March 2011, under the microfinance programme.

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Organisational Structure of NABARD:

Reference: Official NABARD Website

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