Banking, Financial and Economic Awareness of 23, 24 and 25 January 2021

Topic: Infrastructure and Energy

1. Coal-based power generation stood at 79% of total power generation on 22 January.

• As per Coal India Limited, coal-based power generation in India stood at 79% of total power generation on 22 January.
• All India peak power demand increased from 185.82 GW on 20 January to record level 187.3 GW on 22 January.
• Thermal power accounts for about 62% of the total installed capacity in India. Out of this installed capacity, coal and lignite account for 53% and 2%, respectively. Gas and diesel account for 6.7% and 0.1%, respectively.
• 1.8% of total installed capacity comes from nuclear fuel. 12.2% of total installed capacity comes from hydro power. 24.2% of total installed capacity comes from renewable energy sources.

Topic: Infrastructure and Energy

2. Equity investment of less than Rs 5,000 crore made by NIIF in five years since its starting.

• Equity investment of less than Rs 5,000 crore was made by National Investment and Infrastructure Fund (NIIF) in five years since its starting.
• NIIF partners have invested nearly Rs 7,053 crore till September 2020. So, NIIF’s total equity investment was Rs 11,742 crore as of September 2020.
• Long-term debt investment stood at Rs 7,935 crore. Aggregate investment (equity investment and long term debt investment) was Rs 19, 677 crore.
• NIIF’s total assets under management stood at over USD 4.4 billion across its three funds - Master Fund, Fund of Funds and Strategic Opportunities Fund.
• In November 2020, an equity infusion of Rs 6,000 crore was approved by the cabinet in NIIF Debt Platform.
• National Investment and Infrastructure Fund (NIIF) sponsored it. It is comprised of Aseem Infrastructure Finance Limited (AIFL) and NIIF Infrastructure Finance Limited (NIIF-IFL).
• National Investment and Infrastructure Fund (NIIF):
  • It was created in 2015.
  • It is registered with SEBI as Category II Alternative Investment Fund (AIF).
  • Government’s contribution to NIIF is fixed at 49%.
  • CEO: Sujoy Bose

Topic: Banking/Financial Schemes

3. Textile Ministry may place a limit on incentives under PLI scheme for man-made fibres and technical textiles.

• Textile Ministry may place a limit on incentives under Production Linked Incentive (PLI) scheme for man-made fibres and technical textiles.
• Under PLI scheme, Rs 10,683 crore has been allocated for the textile sector. 40 man-made fibre items and 10 technical textiles products were identified for the scheme.
• Incentive rates for the textile sector may be fixed at 9% of turnover in the first year for companies with a turnover of Rs 100-Rs 500 crores. It may be fixed at 7% for companies with a turnover of over Rs 500 crore. 
• Government had launched the PLI scheme for 10 sectors in November 2020. It was launched to support domestic manufacturing through financial initiatives on incremental turnover for five years.

Topic: Agriculture

4. IIIT-Hyderabad researchers develop Crop Darpan app. 

• Indian Institute of Information Technology (IIIT)-Hyderabad researchers developed the Crop Darpan app.
• Crop Darpan helps farmers in getting solutions for the pests and diseases of their crops.
• Crop Darpan app is available in English and Telugu. It presently provides farmers solutions for all diseases of the cotton crop.
• It was developed under an Indo-Japan Joint Research Laboratory Project. The researchers can add other languages and crops at a later stage.
• Researcher Krishna Reddy earlier developed a web-based agriculture extension service called e-sagu.

Topic: Corporates /Companies

5. Ministry of Corporate Affairs makes changes to Corporate Social Responsibility (CSR) Rules.

• Ministry of Corporate Affairs has made changes to Corporate Social Responsibility (CSR) Rules.
• Impact assessment has been made mandatory for big CSR projects and reporting formats of the Board report have been changed.
• Disclosure of all CSR projects and CSR Committee’s composition on the company’s website has also been made mandatory.
• CSR activities through charitable trusts have been allowed. Presentation of annual action plan for CSR to the company Board for its approval has been made mandatory.
• New rules have provisions for the transfer of the unspent amount to government notified fund. The registration of all CSR projects has been made mandatory from April 1 in the new form CSR-1.
• Original CSR rules were framed in 2014. CSR activities are given in Schedule VII of the Companies Act, 2013.
• There are three criteria for companies that are required to comply with CSR provisions.
  • Net worth (equal to or more than Rs 500 crore) of companies in preceding financial year
  • Turnover (equal to or more than Rs 1000 crore) of companies in preceding financial year   
  • Net profit (equal to or more than Rs 5 crore) of companies in preceding financial year

Topic: Infrastructure and Energy

6. Gujarat Government and Adani Port and SEZ Ltd. signed MoU for India’s largest multi-modal logistic park.

• Gujarat Government and Adani Port and SEZ Ltd. have signed an MoU for setting up of India’s largest multi-modal logistic park at Virochan Nagar in Ahmedabad, Gujarat.
• The proposed park will be built in 1,450-acre at Virochan Nagar in Ahmedabad.
• It will be established in a phased manner in the next three years with an estimated investment of Rs 50,000 crore.
• The park will be connected with the dedicated Delhi-Mumbai industrial corridor through rail.

Topic: Banking/Financial Schemes

7. First five pharma projects approved under PLI Scheme for promoting domestic production of bulk drugs and APIs.

• First five pharma projects have been approved under PLI Scheme for promoting domestic production of bulk drugs and Active Pharmaceutical Ingredients (APIs).
• The projects are related to penicillin G, 7-ACA (7-aminocephalosporanic acid), erythromycin thiocyanate and clavulanic acid. All of them are currently imported.
• The projects would be given Rs 3,600 crore over the next six years. They will begin production by April 2023.
• Active Pharmaceutical Ingredients (APIs) is the primary biologically active component present in a drug.

Topic: Corporates/Companies

8. Certain class of unlisted companies to file financial results with Registrar of Companies (RoC) within 30 days.

• Certain classes of unlisted companies will file financial results with the Registrar of Companies (RoC) within 30 days after completion of the specified period.
• The period for which financial results are to be prepared and the format of financial results are yet to be announced. 
• Financial results will need Board Approval and a completed audit or limited review of the 16 lakh registered companies in India.
• Nearly 11 lakh are unlisted companies. As per the current requirements, they file financial statements annually and by eight months after the close of the financial year.
• Registrar of Companies is appointed under Section 609 of the Companies Act. It has the responsibility of registering companies and Limited Liability Partnership (LLP).

Read Banking Awareness PDF - 23, 24 and 25 January 2021