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Insights Daily Current Events, 21 February 2015

Insights Daily Current Events, 21 February 2015

MoU Signed between KVIC and RSETIS

Recently, a MoU was signed between Khadi & Village Industies Commission (KVIC), under the Ministry of MSME and Monitoring Cell For Rural Self Employment Training Institute’s, (RSETIS) under the Ministry Of Rural Development.

  • MoU signed will be for initial period of three years, however performance under the MoU will be reviewed after 2 years.
  • The MoU aims to upgrade the existing infrastructure, provide proper training and organise joint workshops.
  • The Ministry of MSME through KVIC is implementing the Prime Minister’s Employment Generation Programme (PMEGP) for generating employment opportunities through setting up of micro enterprises in rural and urban areas of the Country.

Khadi & Village Industies Commission (KVIC):

The Khadi and Village Industries Commission (KVIC) is a statutory body established by an Act of Parliament (Khadi and Village Industries Commission Act of 1956). In April 1957, it took over the work of former All India Khadi and Village Industries Board.

Function: It is an apex organization under the Ministry of Micro, Small and Medium Enterprises, with regard to khadi and village industries within India, which seeks to – “plan, promote, facilitate, organise and assist in the establishment and development of khadi and village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary.”

The Commission has three main objectives which guide its functioning. These are –

  1. The Social Objective – Providing employment in rural areas
  2. The Economic Objective – Providing salable articles
  3. The Wider Objective – Creating self-reliance amongst people and building up a strong rural community spirit.

The commission seeks to achieve these objectives by implementing and monitoring various schemes and programs.

Sources: PIB, http://www.kvic.org.in/.

 

India Signs Loan Agreement with ADB

The Asian Development Bank (ADB) and the Government of India recently signed a $50 million loan agreement for the second Assam Power Sector Investment Program which aims to build up the capacity of power generation and distribution systems to meet the growing energy demand in the state of Assam.

About ADB:

Asian development bank is a regional development bank established in 1966 and aimed at improving the economic conditions of the countries in Asia and Pacific. It is headquartered in Philippines.

Aim: to facilitate economic development of countries in Asia. It also aims for an Asia and Pacific free from poverty.

Membership:

  • The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and non-regional developed countries.
  • Currently, it has 67 members – of which 48 are from within Asia and the Pacific and 19 outside.

ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with member’s capital subscriptions.

Funding:

  • ADB raises funds through bond issues on the world’s capital markets.
  • ADB also rely on its members’ contributions, retained earnings from its lending operations, and the repayment of loans.
  • Japan holds the largest proportions of shares at 15.67%. The United States holds 15.56%, China holds 6.47%, India holds 6.36%, and Australia holds 5.81%.

Board of Governors:

  • It is the highest policy-making body of the bank.
  • It is composed of one representative from each member state.
  • The Board of Governors also elect the bank’s President who is the chairperson of the Board of Directors and manages ADB.
  • The Alternate Board of Governors are nominated by Board of Governors of ADB’s 67 to represent them at the Annual Meeting that meets formally once year to be held in a member country.

Loans:

  • It offers both Hard Loans and Soft loans.
  • The ADB offers “hard” loans from ordinary capital resources (OCR) on commercial terms, and the Asian Development Fund (ADF) affiliated with the ADB extends “soft” loans from special fund resources with concessional conditions.

ADB focuses on five core areas of operations: infrastructure; the environment, including climate change; regional cooperation and integration; finance sector development; and education.

ADB against Corruption:

  • Its Anticorruption Policy requires all staff and parties carrying out activities financed by ADB (e.g., bidders, consulting firms, consultants, contractors, and suppliers) to adhere to the highest financial and ethical standards.
  • The Office of Anticorruption and Integrity (OAI) conducts investigations and audits related to project procurement, and raises awareness on anticorruption issues.

The Asian Development Fund (ADF) bridges the development gap in Asia and the Pacific, home to both the world’s fast-rising and most vulnerable economies. ADF is a major instrument of concessional financing that has supported equitable and sustainable development in the region since 1973. Funded by ADB’s member countries, it offers loans at very low interest rates as well as grants to help reduce poverty in ADB’s poorest member countries.

Sources: PIB, ADB, Wiki.

 

 

Mock Questions:

1) Consider the following statements regarding Khadi & Village Industies Commission (KVIC):

  1. It is a statutory body.
  2. It works under the Ministry of Labour & Employment.

Which of the above statements are true?

a) Only 1.

b) Only 2.

c) Both

d) None

 

 

2) Consider the following statements regarding Asian Development Bank:

  1. Currently, it has 67 members and all members are from Asia.
  2. ADB solely relies on its members’ contributions for its funds.
  3. In ADB’s voting system votes are distributed in proportion with member’s capital subscriptions among the members.

Which of the above statements are true?

a) Only 1.

b) Only 2 & 3.

c) Only 3

d) All