----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.