Prepare For IAS: April 2015

----GREEN ECONOMY

Green Economy Initiative was launched by UNEP in 2008. A green economy is one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.

In its simplest expression, a green economy can be thought of as one which is low carbon, resource efficient and socially inclusive.

A green economy is one whose growth in income and employment is driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and ecosystem services. These investments need to be catalyzed and supported by targeted public expenditure, policy reforms and regulation changes. This development path should maintain, enhance and, where necessary, rebuild natural capital as a critical economic asset and source of public benefits, especially for poor people whose livelihoods and security depend strongly on nature.

SOVERIGN CREDIT RATING

Sovereign credit ratings give investors insight into the level of risk associated with investing in a particular country and also include political risks. At the request of the country, a credit rating agency will evaluate the country's

economic and political environment to determine a representative credit rating. Obtaining a good sovereign credit rating is usually essential for developing countries in order to access funding in international bond markets.

DGH's POLICY ON EXPLOITATION OF SHALE GAS

In the wake of the CAG's strictures against the Directorate General of Hydrocarbons (DGH) and the Petroleum Ministry on violations in the KG-D6 contract the DGH has now drafted a safe but encouraging policy on exploitation of shale gas. Shale gas is seen as the new hope for fuelling India's burgeoning appetite for hydrocarbons.

The draft policy does not permit cost recovery and hence profit sharing — the two features that came under criticism by the CAG in its audit report. Instead, it banks on production-linked payment (PLP) as the Centre's share from the discovery.

The PLP quoted at the time of the bidding for blocks assumes significance as it would carry the maximum 60 per cent weight for deciding the award of the block. The total investment quoted for completing the promised minimum work programme would get 40 per cent weightage.

As a fiscal incentive, the contractor will be exempt from PLP payment for the first five years from the start of commercial production or from the date of entering the development and production phase, whichever is earlier. It implies that the maximum period of PLP exemption would be 10 years from the date of signing of the contract and will not be extended under any circumstance since it is an incentive for faster development.

PFRDA BILL 2011

The PFRDA Bill, 2011, seeks to give statutory status to the interim PFRDA, define its powers and duties, and set the broad contours of the NPS (New Pension System).

Highlights of the Bill

• The Pension Fund Regulatory and Development Authority Bill, 2011 seeks to give statutory powers to the interim authority set up in 2003. It also alters the name of the New Pension System to National Pension System (NPS).

• NPS is a 'defined contribution' scheme for all central government employees who joined after January 2004. It is implemented through a combination of retailers, pension fund managers, and a record keeper. This scheme is different from the earlier 'defined benefit' scheme.

• Under the NPS, every subscriber will have an individual pension account, which will be portable across job changes. The subscribers will choose fund managers and schemes to manage their pension wealth. They will also have the option of switching schemes and fund managers.

• The NPS was extended to all general citizens through central government notification in May 2009.

HEDGE FUNDs

A hedge fund is a fund that can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade options or bonds, and invest in almost any opportunity in any market where it foresees impressive gains at reduced risk. Hedge fund strategies vary enormously — many hedge against downturns in the markets — especially important today with volatility and anticipation of corrections in overheated stock markets. The primary aim of most hedge funds is to reduce volatility and risk while attempting to preserve capital and deliver positive returns under all market conditions.

Prepare For IAS

Thursday, 30 April 2015

Wednesday, 29 April 2015

Tuesday, 28 April 2015

Monday, 27 April 2015

Sunday, 26 April 2015

Friday, 24 April 2015

Thursday, 23 April 2015

Wednesday, 22 April 2015

Tuesday, 21 April 2015

Monday, 20 April 2015

Sunday, 19 April 2015

Saturday, 18 April 2015

Friday, 17 April 2015

Thursday, 16 April 2015

Wednesday, 15 April 2015

Tuesday, 14 April 2015

Read Yojana

Search This Blog