Assam Current Affairs August 29-31, 2018

Current Affairs Assam August 29-31, 2018

( Covers all important Assam Current Affairs & GK topics for the week of August 29-31, 2018 )

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August 29


EESL signed $300 mollin pact with World Bank to boost energy efficiency programme

Indian Govt, the government, World Bank and Energy Efficiency Services Limited (EESL)  signed a US$ 220 million loan agreement and a US$ 80 million guarantee pact to push energy efficiency programme in India.

To be implemented by EESL, the programme will help incrase the deployment of energy saving measures in residential and public sectors, strengthen EESL’s institutional capacity, and enhance its access to commercial financing.

The US$ 220 million loan, from the International Bank for Reconstruction and Development (IBRD) to Energy Efficiency Services Ltd, has a 5-year grace period, and a maturity of 19 years. This investment package is expected to avoid lifetime greenhouse gas emissions of 170 million tons of CO2, and contribute to avoiding an estimated 10 GW of additional generation capacity, which would be over 50 per cent of the National Mission for Enhanced Energy Efficiency target of 19.6 GW indicated in India’s Nationally Determined Contributions (NDCs) under the Paris Accord.

The key components of the program includes

  • creating sustainable markets for LED lights and energy efficient ceiling fans; facilitating well-structured and scalable investments in public street lighting
  • developing sustainable business models for emerging market segments such as super-efficient air conditioning and agricultural water pumping systems
  • strengthening the institutional capacity of EESL

FACTFILE – Energy Efficiency Services Limited (EESL)

  • Energy Efficiency Services Limited (EESL) is an energy service company (ESCO) of the Government of India and is the world’s largest public energy service company (ESCO).
  • It is 100% government owned, a joint venture of state-owned NTPC Limited, Power Finance Corporation, Rural Electrification Corporation and POWERGRID.
  • EESL was formed under India’s Ministry of Power to facilitate energy efficiency projects. Innovative business and implementation models can significantly reduce consumption and costs.
  • EESL also acts as the resource centre for capacity building of state electricity distribution companies, electricity regulatory commissions (ERCs), state-designated agencies (SDAs), upcoming ESCOs, financial institutions, etc.
  • It is backed by and promoters, and has net worth of over INR 2.144 billion. India’s energy efficiency market is estimated at US$12 billion

FACTFILE – The International Bank for Reconstruction and Development (IBRD)

  • IBRD is an international financial institution that offers loans to middle-income developing countries.
  • The IBRD is the first of five member institutions that compose the World Bank Group and is headquartered in Washington, D.C., United States.
  • It was established in 1944 with the mission of financing the reconstruction of European nations devastated by World War II. The IBRD and its concessional lending arm, the International Development Association, are collectively known as the World Bank as they share the same leadership and staff.
  • Following the reconstruction of Europe, the Bank’s mandate expanded to advancing worldwide economic development and eradicating poverty. The IBRD provides commercial-grade or concessional financing to sovereign states to fund projects that seek to improve transportation and infrastructure, education, domestic policy, environmental consciousness, energy investments, healthcare, access to food and potable water, and access to improved sanitation.

World Bank to provide USD 250 Million loan to Rajasthan to improve power distribution

An agreement was signed between the Government of India, the Government of Rajasthan and the World Bank, under which the World Bank will provide a USD 250 million loan facility to Rajasthan for improving the performance of its electricity distribution sector.

The Second Programmatic Electricity Distribution Reform Development Policy Loan for Rajasthan is the second in the series of two operations planned for a comprehensive turnaround of Rajasthan’s electricity distribution sector.

The key areas that the programme will support include, strengthening governance in the distribution sector by establishing annual performance MoUs between the DISCOMs and the State Government.

The loan from the International Bank for Reconstruction and Development (IBRD), has a 3-year grace period, and a maturity of 21 years.


Gross NPAs may improve to 10% by March 2019

The gross non-performing assets (GNPAs) of the banking sector is likely to improve to 10% in March 2019, from 11.52% as on June 30, 2018, as nearly 60% of the bad loans of the sector are under active resolution.

The net NPA is also expected to decrease to 4.3%, from 5.92% as of June-end this year. GNPA and NNPA may be higher at 12.2% and 5.6%, respectively, in absence of resolution.

ICRA estimated that 70 big companies accounting for around Rs 3.8 trillion of debt may be heading for resolution under the Insolvency and Bankruptcy Code (IBC).

Expect GNPAs and NNPAs for banking sector are likely to reduce to close to 10% and 4.3% respectively by March 2019, same may be higher at 12.2% and 5.6%, respectively, in absence of resolution. The GNPAs declined to 11.52% as on June 30, 2018, from 11.68% as on March 31, 2018, while the NNPAs decreased to 5.92%, against 6.27%.

FACTFILE – Non-performing asset (NPA)

  • A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of principal has remained ‘past due’ for a specified period of time. In simple terms, an asset is tagged as non performing when it ceases to generate income for the lender.
  • Once the borrower has failed to make interest or principal payments for 90 days the loan is considered to be a non-performing asset.
  • Non-performing assets are problematic for financial institutions since they depend on interest payments for income. Troublesome pressure from the economy can lead to a sharp increase in NPLs and often results in massive write-downs.

 


August 30


Govt approves 80% hike in spending for India Post Payments Bank to Rs 1,435 crore

The Cabinet approved 80 per cent increase in spending for India Post Payments Bank (IPPB) to Rs 1,435 crore. The IPPB is set to go live with 650 branches and 3,250 access points across the country on September 1.

It will offer financial services in rural areas including savings and current accounts, money transfer, direct benefit transfer, bill and utility payments and enterprise and merchant payments.

This financial push will increase IPPB project outlay to Rs 1,435 crore from Rs 800 crore, giving it additional firepower to compete in the market with existing operators like Airtel Payments Bank and Paytm Payments Bank.

The revised cost estimate of Rs 635 crore is on account of Technology Costs (Rs 400 crore) and HR expenses (Rs 235 crore). IPPB will begin scaling up its operations immediately from the 650 branches and 3,250 access points.

All 1.55 lakh post offices will be linked to its system by December 31, 2018. Of these, 1.30 lakh access points will be located in rural areas, taking it to vast untapped market.

FACTFILE – India Post Payments Bank

  • India Post Payment Bank (IPPB) is a Payments bank headquartered in New delhi.It is a goverment owned Public limited company. The bank was inaugurated on September 1, 2018.
  • It’s 100 per cent Government owned, set up under the aegis of Department of Post, and will offer products and services though multiple channels such as counter services, micro ATMs, mobile banking app etc.
  • On August 19, 2015 India post got licence to run payments bank from Reserve Bank of India.
  • On August 17 ,2016 registered as public limited government company for setup payments bank. First branch of IPPB inaugurated on 30 January 2017 at Raipur and Ranchi. The payment bank was nationwide inaugurated on September 1, 2018.
  • India Post Payment Bank is a digital bank. Account can open from mobile app of the bank using Aadhaar and PAN.
  • Account: The bank offer savings and current accounts up to a balance of Rs 1 Lac.

Key Person – Suresh Sethi, MD & CEO

FACTFILE – Payments banks

  • Payments banks is a new model of banks conceptualised by the Reserve Bank of India (RBI).
  • They can accept a restricted deposit, which is currently limited to ₹1 lakh per customer.
  • Payments banks cannot issue loans and credit card, but can issue services like ATM cards, debit cards, net-banking and mobile-banking.

Point2Remember -Bharti Airtel set up India’s first live payments bank.



GDP to register 7.4% growth on industrial activity, says RBI

The Reserve Bank expects India’s (RBI) says India’s economic growth rate to accelerate to 7.4% in the current financial year on pick up in industrial activity and good monsoon, as compare to 6.7% in the previous year.

RBI also expressed that its monetary policy objective will continue to be of achieving the medium-term target for retail inflation of 4%, within a tolerance band of +/- 2%, while supporting growth.

Several experts, including SBI, expects the CAD to widen this fiscal on account of persistent high oil prices and large trade deficit. The CAD was estimated at 2% of the GDP in fiscal year ending March 2018.

The prevailing negative credit-to-GDP gap indicates that there is sufficient scope for credit absorption and expansion in bank lending on a sustained basis.


India’s Chandrayaan-2 Moon Mission to be launched in 2019

Kailasavadivoo Sivan, the chairperson of the Indian Space Research Organisation (ISRO) has said that the window to launch India’s second mission to the moon – Chandrayaan-2 – has been slotted between 3 January 2019 and 16 February 2019.

FACTFILE – Chandrayaan-2

  • The mission is planned to be launched to the Moon by a Geosynchronous Satellite Launch Vehicle Mark III (GSLV Mk III).
  • Chandrayaan-2 will be equipped with a lander and rover probe which will descend on the surface of the moon from where it will observe the lunar surface and send back data which will be useful for analysis of the lunar soil.
  • The mission will have an orbiter weighing 2,379kg, lander named Vikram weighing 1,471kg and a rover weighing 27kg.
  • Chandrayaan-2 is scheduled to be launched no earlier than January 2019, and will attempt to soft land a lander and rover in a high plain between two craters, Manzinus C and Simpelius N, at a latitude of about 70° south. If successful, Chandrayaan-2 will be the first-ever mission to land a rover near the lunar south pole.

 

August 2018 – eBook Monthly PDF  |  eBook Monthly Quiz PDF

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