What is Disinvestment?

1. Disinvestment refers to the sale or liquidation of assets or subsidiaries of an organization or government but any condition Govt share should not go below 51%.
2. It is done by Dept of Investment and Public Asset Management (DIPAM), Ministry of Finance from 2016.
3. Industrial Policy Resolution,1956 talks about the growth of the country through PSUs. Hence, from 2nd Five Year Plan we started focusing on PSEs.
4. Salient Features of Disinvestment Policy
   1. PSUs are wealth of Nation and it ensures that wealth rests in hands of people, promote public ownership of CPSEs.
   2. Govt must retain at least 51% of shareholding and management control of PSUs.
   3. Strategic disinvestment by way of sale of a substantial portion of Govt in identified CPSEs up to 50% or more along with transfer of management control.

Phases of Disinvestment

• Phase I: In 1991 PVNR Govt initiated disinvestment: In 1991 policy it was announced that government would disinvest upto 20% of its equity in selected PSUs mainly through MFs and FIIs (Financial institutions investors).
• Phase II: More people allowed in disinvestment like FII, Employees of the Company, etc.
• Phase III
  • The Govt appointed the C Rangarajan Committee: who recommended ~49% of disinvestment.
  • Atal Bihari Vajpayee adopted major disinvestment policy HINDALCO, BALCO. It talked about Stake Sale.
  • Stake sale is a larger share that can be sold to LIC or other profitable PSUs not individual investors.
  • PSUs were bifurcated into 2: Strategic (defence, atomic) and Non-strategic.
  • 2005: Govt came out with National Investment Fund under Public Accounts of India.
    1. Purpose of the fund was to receive disinvestment proceeds of CPSEs.
    2. Money from disinvestment is put upon this money is invested in stock market or other investment instruments the income of which
       1. 75% of returns are used in social sector NREGA, Housing for All, AIBP, Health, Education, Employment etc.
       2. 25% can be utilized for Profitable PSUs and revival of PSUs.
    3. This fund was professionally managed by 3 Fund Managers: UTI, SBI and LIC. But CCEA restructured the NIF and decided to do away with the management of the disinvestment proceeds by the Fund Managers of NIF. Now from 2013, all the money is credited to Public Accounts.

    4. Special NIF

       1. It is kept outside the CFI to transfer the shares of only certain loss making CPSEs which are non-compliant with the rule that minimum 10% of shares issued be held by public.
       2. Only shares are transferred here and not receipts from the sale of shares of CPSEs

• Phase IV: Current Disinvestment.

  1. In last 3 years, Govt is increasing their disinvestment targets from 80000 crore rs to 1.05 lakh crore rupees.
  2. But as per Economists, Hyper Disinvestment because of declining revenues of Govt due to GST and Demonetization to achieve targets of FD and to achieve poll promises is not good. This led to disinvesting BPCL, Concor etc. even breaching the 51% limit.

• Strategic Disinvestment in 5 PSEs

  • Government to sell entire stake in Bharat Petroleum (BPCL), Shipping Corporation of India (SCI), Container Corporation of India (CONCOR). Also THDCIL and North East Electric Power Corporation (to NTPC). Disinvestment done because of massive shortfall in revenue and capital receipts (according to Controller General of Accounts).
  • BPCL was a profitable, yet they disinvested it. This is a concern. Numaligarh refinery is in Assam.
  • How the Government completes the transaction is a concern – from appointment of advisers, to deciding the pricing mechanism and initiating a transparent bidding process before finalizing a buyer - is a big question.
  • Recently, Government approved strategic disinvestment of Central Electronics Ltd.

• Bharat Bond ETF (Exchange Traded Fund) to be India's 1st Corporate Bond ETF

  • ETF to comorise basket of bonds issues by CPSEs, CPSUs, CPFIs and other government entities and all will be initially rated AAA with ?1000 for each unit to attract retail investors.
  • DIPAM (Department of Industry and Public Asset Management) is responsible for disinvestment in the country.
  • Each ETF will have a fixed maturity dates initially to be issued in 2 series of 3 years and 10 years.
  • Benefits
    1. Bond ETF will provide safety (issued by CPSEs & govt owned agencies), liquidity (tradability on exchange), additional source of funding for issuers (apart from banks) and predictable tax efficient returns.
    2. It would help deepen India's bond market as it will encourage participation of those retail investors who are currently not participating in bond markets including HNI participants.
• In Budget 2020, FM announced to sell a part of its 100% stake in LIC by an IPO.
  • LIC was established in 1956 through an Act of Parliament.
  • Before Govt divests a part of its stake through a public issue, it will have to ensure that it amends the LIC Act, which ensures a sovereign guarantee for all policies under Section 37 of the Act.

NIPUN Bharat

• NIPUN stands for National Initiative for Proficiency in Reading with Understanding and Numeracy (NIPUN Bharat)
• The vision of NIPUN Bharat Mission is to create an enabling environment to ensure the universal acquisition of foundational literacy and numeracy, so that every child achieves the desired learning competencies in reading, writing and numeracy by the end of Grade 3, by 2026-27.
• NIPUN Bharat will be implemented by the Department of School Education and Literacy and a five-tier implementation mechanism will be set up at the National- State- District- Block- School level in all States and UTs, under the aegis of the centrally sponsored scheme of Samagra Shiksha.

• The launch of NIPUN Bharat marks an important step undertaken by the Department of School Education and Literacy, among a series of measures taken for implementation of the National Education Policy 2020.

Samagra Shiksha Abhiyaan (Flagship Scheme), 2019

1. Ministry of Education. SDG 4.
2. Objectives: Quality education, Learning outcomes, Bridging gaps, Inclusion, Equity, Minimum standards, Vocationalization, support Sttes for RTE Act, 2009 and upgrade State CERTs.
3. Funding: It is a Centrally Sponsored Scheme with 60:40 for States and 90:10 for NE and the Himalayan States.

4. Salient Features:

   1. Treat school education holistically as a continuum from Preschool to Class 12.
   2. Inclusion of senior secondary levels and pre-school levels in support of School education for the first time.
   3. Single and unified administrative structure leading to harmonized implementation.
   4. Focus on strengthening Teacher Education Institutions like SCERTs and DIETs.
   5. SCERT to be the nodal institution for in-service and pre-service teacher training – will make training dynamic and need-based.
   6. Library grant for 1 million schools.
   7. The main emphasis of the Scheme is on improving the quality of school education by focussing on the 2 T’s – Teacher and Technology.

Initiatives for the Mental Health in Students

Manodarpan Initiative

• The Ministry of Education has undertaken a proactive initiative, named, ‘Manodarpan’, covering a wide range of activities to provide psychosocial support of Emotional Wellbeing and Mental Health in students, teachers, and families during the COVID outbreak and beyond.

The following components are included in the ‘Manodarpan’ initiative:

• Advisory Guidelines for students, teachers, and faculty of School systems and Universities along with families.
• Web page on Ministry of Education website (URL: http://manodarpan.education.gov.in ) carrying advisory, practical tips, posters, videos, do’s and don’ts for psychosocial support, FAQs, and online query system.
• National level database and directory of counselors at School and University levels.
• National Toll-free Helpline (8448440632) for a country-wide outreach to students from schools, universities, and colleges.
• Handbook on Psychosocial Support: Enriching Life skills and Wellbeing of Students
• Webinars, audio-visual resources including videos, posters, flyers, comics, and short films with a focus on the convergence of resources from other Ministries/Departments on physical and creative well-being which are essential parts of mental well-being.

Initiatives by NCERT

• The National Council of Educational Research and Training has started ‘NCERT Counseling Services for School Children’ in April, 2020 to help school students across the country share their concerns.
• This service is provided free of charge by about 270 counsellors across different regions of the country.
• Live interactive sessions on ‘SAHYOG: Guidance for Mental Wellbeing of Children’ are telecast on 12 PM eVidya DTH-TV channels for classes 1 to 12.
• Under the aegis of the School Health Programme under Ayushman Bharat, the National Council of Educational Research and Training (NCERT) has developed a comprehensive package titled “Training and Resource Material: Health and Wellness of School-going Children. A specific module has been included on “Emotional Well-being and Mental Health”, which has activities related to the well-being and mental health in students and teachers.

Water Pollution: Yamuna Project

The Centre accused Delhi of being a “habitual offender” in polluting the waters of the Yamuna due to which Water Pollution is on rising.

• The State of Haryana, on the other hand, objected to Delhi’s accusations about it releasing untreated effluents into the river due to faulty treatment plants, saying the “problem is not with Haryana, but within Delhi”.
• A three-judge Bench led by Chief Justice Sharad A. Bobde gave Haryana a week’s time to file its affidavit.
• The Centre has also been asked to place on record its views.
• The Bench was hearing an urgent petition filed by the Delhi Jal Board (DJB), represented by advocate Shadan Farasat, to “immediately stop” Haryana from discharging pollutants into the Yamuna, which is causing an alarming increase in ammonia levels in the water.
• The Board said the increased ammonia level has impaired its water treatment plants and drinking water and health crises loom large in Delhi.
• The DJB said the national capital’s woes were made worse by Haryana not releasing the full quantity of water entitled to Delhi at Wazirabad. Instead of releasing at least 450 cusecs downstream from Wazirabad, only 330 cusecs have been released.
• “Due to lesser water being released, the concentration of ammonia in the water reaching Delhi has increased,” the DJB said.

Asita Project

• Yamuna River Front Development Project.
• The Yamuna originates from the Bandapooch peak.
• Japan is helping with Yamuna's action plan for STPs, Community toilets & e-crematoria.

Seechawal model to clean Yamuna

• It is a decentralized natural treatment system - oxidized pond and settling tanks. It removes floating material.

What is Water pollution? Water Pollution Definition:Water Pollution is theaddition/presence of undesirable substances to/in water such as organic, inorganic, biological, radiological, heat, which degrades the quality of waterso that it becomes unfit for use. What are the Sources of Water Pollution? Sources of Water Pollution in India: Natural sources… Read More