19-May-2017: 52nd Annual Meeting of African Development Bank (AfDB), 2017
The 52nd Annual Meetings of the African Development bank are being held in Gandhinagar, Gujarat from 22 to 26 May 2017. This is the first time that the Annual Meetings of AfDB are being held in India. These Meetings are the Bank’s largest annual event and serve to raise the profile of the institution on the global stage.
The Governors of the Bank are from the 54 African regional member countries and 27 non-regional member countries (including India). The Annual Meetings provide a unique forum for representatives of government, business, civil society, think-tanks, academia and the media – from Africa and beyond – to debate key issues on Africa’s development, and to discuss the Bank’s performance in delivering on its mandate.
Reflecting the significance of agriculture in Africa and in the Bank’s development work, the 2017 Annual Meetings will be held on the theme: "Transforming Agriculture for Wealth Creation in Africa.” There is a great scope for a greater synergy between India and Africa in order to achieve our shared goal of rural and agricultural transformation, which would go a long way in reducing rural poverty and improving the quality of lives of rural people.
India joined the African Development Fund in 1982, and became a member of the Bank in 1983. India is a non-regional member of the Bank. India and Africa share a great relationship, and have great degree of commonalities in terms of a shared history, and current challenges. In the recent past, we have taken a number of initiatives to further deepen our association.
India Africa Forum Summit 2015 was a great success. The announcement of a US$ 10 billion line of credit by the Prime Minister of India marked a new beginning in our approach to engage with African countries in a more constructive manner. India’s support through lines of credit have not only helped finance the projects in African countries, but have also contributed to capacity building, IT education, and higher education. AfDB meeting in India will be an occasion to further deepen our economic cooperation with the African countries through various other events that have been planned.
On the occasion of the Annual Meetings, GOI is organizing an India-Africa Dialogue in partnership with Confederation of Indian Industries (CII). The sessions will broadly sensitize Indian industry and fraternity about the Bank’s High 5s Agenda – especially to help in building a roadmap of how can Indian industry contribute to ‘Industrialise Africa’ and move the continent up in the Global Value Chains (GVCs).
The Government of India is also organizing an exhibition in partnership with FICCI during the Annual Meetings of the Bank with the objective to showcase the capabilities of Indian companies in terms of technology, innovation, and start-ups, which could be relevant for African countries. The theme of the exhibition is centered around priority areas of the Bank, i.e., the "High 5s” (Energy, Healthcare and Pharma, Agriculture, Industrialization, e-Governance).
On the sidelines, we are also organizing an event on the International Solar Alliance. At the event, the Framework Agreement of ISA would be kept open for signature, and we would also accept ratification documents from those countries that have completed the ratification process. So far 25 countries have signed the Framework Agreement of ISA. Guatemala, Djibouti, Cote d’Ivoire, Ghana, Chad, Comoros, Mauritius, Yemen and Somalia have agreed to sign the Framework Agreement. India, France, Nauru and Fiji have already ratified the Framework Agreement of ISA. Mauritius and Comoros would be ratifying the Framework Agreement shortly. The ISA as a legal entity will come into being once 15 countries ratify the Framework Agreement.
The purpose of these events is primarily to reinforce our shared commitment, and further strengthen our cooperation framework with Africa. Given the perfect alignment between Bank’s development priorities and India’s growth experience and engagement with Africa, there is tremendous potential for collaboration.
A Special Session on India-Japan co-operation for development of Africa is also being organized. At this side event, Japan External Trade Organization (JETRO), Japan International Cooperation Agency (JICA) and Japan Bank for International Co-operation (JBIC), in cooperation with their partner organizations in India and Africa including the African Development Bank, will discuss the promotion of African business through private-public partnerships between Japan and India, in order to contribute to the development of the African economy.
The meeting in Gandhinagar is the fourth time that the Annual Meetings of AfDB are being held outside Africa. The first such meeting took place in Valencia, Spain in 2001, the second in Shanghai, China in 2007, and the third in Lisbon, Portugal in 2011. The next meeting of AfDB is scheduled to be held in Busan, South Korea in 2018.
22-Mar-2017: Cabinet approves of proposal to establish a Fund of Fund for Start-ups (FFS)
The Union Cabinet has approved the following proposals with regard to the Fund of Funds of Start-ups (FFS) which was established in June, last year with a corpus of Rs. 10,000 crores.
- Alternate Investment Funds (AIFs) supported by FFS shall invest at least twice the amount of contribution received from FFS in Start-ups. Further, if the amount committed for a Start-up in whole has not been released before a Start-up ceases to be so, the balance funding can continue thereafter.
- It was also decided that operating expenses for carrying out due diligence, legal and technical appraisal, convening meeting of Venture Capital Investment Committee, etc. would be met out of the FFS to the extent of 0.50% of the commitments made to AIFs and outstanding. This will be debited to the fund at the beginning of each half year; i.e. April 1 and October 1.
The Union Cabinet in its meeting held on 22/06/2016 had approved the proposal to establish a Fund of Funds for Start-ups (FFS) with a total corpus of Rs.10000 crore, with contribution spread over the 14th & 15th Finance Commission cycles based on progress of implementation and availability of funds. It was decided that the FFS shall contribute to the corpus of Alternative Investment Funds (AIFs) for investing in equity and equity linked instruments of various start-ups at early stage, seed stage and growth stages.
The FFS is being managed and operated by Small Industries Development Bank of India (SIDBI). FFS contributes to SEBI registered Alternative Investment Funds (AIFs) that may go up to a maximum of 35% of the corpus of the AIF concerned.
The Cabinet on 22.06.2016 had decided that the corpus of Fund of Funds along with counterpart funds raised by the AIFs in which FFS takes equity would be invested entirely in Start-ups. It has been pointed out to the Department during its interactions with various stakeholders that investors in the AIFs would prefer that the portfolio of AIFs is adequately diversified to manage the investment risks appropriately and if the entire pool of funds of the AIF is invested in Start-ups, it poses unacceptable risks to the investors of such AIFs.
The other issues raised by stakeholders were that the process of funding of Start-ups by AIFs is long drawn which starts from pitching by a Start-up, commitment by the AIF and then release of funds in tranches. Thus it is possible that before release of the final instalment the turnover of the Start-up crosses Rs. 25 crores but it still needs funds to meet its growth requirements. Besides, Start-ups need access to funds through various stages of their life cycle, viz. early stage, seed stage and growth stage.
It was also pointed out to the Department by SIDBI that the present provisions don’t provide for SIDBI to get compensated for activities done post sanction to AIFs.
9-Mar-2017: Rs 25 crores donated towards the Swachh Bharat Kosh (SBK)
The Finance Secretary Shri Ashok Lavasa, Chairperson of the Swachh Bharat Kosh (SBK), received a cheque of Rs 25 crores towards the SBK as part of REC’s Corporate Social Responsibility (CSR).
REC has also contributed Rs. 25 Crore towards this noble cause earlier in August 2016, thus making a total contribution of Rs. 50 Crore to the Kosh. Apart from this, the Corporation has also constructed 194 toilets during the current fiscal. REC is committed to supporting the Government of India’s mission for Swachh Bharat. As a responsible Corporate Citizen, the cause of nation building has always been high on REC’s priorities. As a step in this direction, REC had, during the FY 2014-15 and 2015-16, constructed a total of 12,292 toilets. These toilets are spread across 33 districts in 6 states.
The SBK was set up to attract CSR funds from corporate sector and contribution from individual philanthropists to achieve the objective of Clean India (Swachh Bharat) through “Swachh Bharat Abhiyan” by the year 2019, the 150th year of birth anniversary of Mahatma Gandhi. The SBK is to be used to achieve the objective of improving cleanliness levels in rural and urban areas, including in schools. The allocation from the SBK is being used to supplement departmental resources for such activities. All donations towards Swachh Bharat Kosh are eligible for deduction of 100% from the total Income Tax. The contributions to SBK can also be included by companies towards CSR under the Companies Act, 2013.
Rural Electric Corporation (REC) Limited is an enterprise of the Government of India under the Ministry of Power, mandated to provide financing for the power sector development across the value chain in the field of generation, transmission, distribution and above all, renewable energy development. REC is the coordinating agency for implementing flagship programs of the government in power sector that include Deendayal Upadhyaya Gram Jyoti Yojana scheme, the Ujwal DISCOM Assurance Yojana (UDAY) programme and several other initiatives of the government to ensure “Power for All”.
25-Nov-2014: Government Announces Swachh Bharat Kosh Operational Guidelines
The Government announced Swachh Bharat Kosh Operational Guidelines, 2014 which will come into force with immediate effect.
Objective of Setting-up the Fund (Kosh):
Individuals and philanthropists have expressed interest in contributing to efforts to achieve the objective of Clean India (Swachh Bharat) by the year 2019. The Swachh Bharat Kosh has been set up to facilitate channelization of philanthropic contributions and Corporate Social Responsibility (CSR) funds towards this cause.
Governing Council:
The Swachh Bharat Kosh (henceforth called Kosh) would be administered by a Governing Council chaired by Secretary, Department of Expenditure. Other Permanent members will be Secretary (Planning), Secretary (Drinking Water and Sanitation), Secretary (Urban Development), Secretary (Housing and Urban Poverty Alleviation), Secretary (Rural Development), Secretary (Panchayati Raj) and Secretary (School Education and Literacy). Departmental Secretaries from Tourism, Culture or any other department would be invited as and when their proposals are being deliberated.
Secretariat:
The Governing Council would be assisted by a division to be set up in the Department of Expenditure, which will serve as its secretariat, headed by an Administrator, at the Joint Secretary level.
Bank Account & Receipt of Contribution:
Contributions from companies and philanthropists shall be received in a single bank account opened in the State Bank of India, Central Secretariat Branch, North Block, New Delhi. The bank account will be operated jointly by the Administrator and the Chief Controller of Accounts, Ministry of Finance. Donations into the Kosh may be made through online payments through net banking, or by debit and credit cards or Cheque/Demand Draft. The donor would receive an automated, digitally signed receipt of the contributions. Besides, the following mode of acknowledgement with regard to receipt of donations will be adopted:
While efforts would be made to optimally apply the funds in the Kosh to its objectives, any temporarily idle balance may be invested in fixed deposits with the State Bank of India, with the approval of the Governing Council. Any interest thus earned would be ploughed back into the Kosh, and used for furthering its objectives.
Admissible Activities:
The Kosh will be used to achieve the objective of improving cleanliness levels in rural and urban areas, including in schools. It may also be enabled to bring out innovative / unique projects and girl toilets will be the priority area to start with. The following broad activities will be financed from the Kosh:
Construction of community/individual toilets in rural areas, urban areas, in elementary, secondary and senior secondary government schools, aanganwadis (Centres that provide support to children below 6 years and their mothers under the Integrated Child Development Scheme, Ministry of Women and Child Development);
Renovation and repair of dysfunctional community/individual toilets in elementary, secondary and senior secondary government schools and aanganwadis;
Construction activity for water supply to the constructed toilets;
Training and skill development to facilitate maintenance of constructed toilets and to ensure its inter-linkages with education on hygiene;
Other initiatives of improving sanitation and cleanliness in rural and urban areas including solid and liquid waste management;
Any other activity to improve sanitation in the country as decided by the Governing Council.
Proposing of Projects:
The line Ministries will propose projects to the Governing Council pertaining to the above activities. The states can also apply for the funds of the Kosh through the respective line Ministries. The allocation from the Kosh will be used to supplement departmental resources for the above-mentioned activities. However, specific suggestions regarding creation of assets, coming from donors making contributions of more than Rs. 10 crores, may be considered by the line Ministries, if otherwise not in conflict with these guidelines.
Approval and Release of funds:
The Governing Council will meet at least once every quarter, or sooner, if required, to assess the feasibility of funding the projects/activities proposed by the line Ministries. The Governing Council will prioritize the projects proposed by the line ministries, on the basis of criteria to be laid down by itself.
Implementation:
The implementation of the projects/activities would be carried out by the existing institutions already in place at the State, District, and Sub District level to execute the projects/activities. No new institutions will be created.
The costing of projects will be guided by the prevalent cost norms of Centrally Sponsored Schemes (CSS) of similar nature. These will be used in deciding the cost estimates of the projects to be financed from the Kosh.
Monitoring:
The line Ministries administratively concerned with the projects will closely monitor the utilization of the funds received from the Kosh and would provide a quarterly progress report to the Governing Council and the Finance Minister.
The progress of activities undertaken from the Kosh will be reviewed by the Finance Minister on a quarterly basis and by the Prime Minister from time to time.
The Ministries would ensure that the projects/activities undertaken from the Kosh are not duplicated.