Make in India initiative launched by Prime Minister Narendra Modi on 25th September last year was an initiative aimed at making India a global manufacturing hub.

It was also rolled out with the aim of creating millions of jobs in the country.

Under the ‘Make in India’ initiative, the government has, in the last one year, announced several steps to improve the business environment by easing processes to do business in the country, and attract foreign investments.

As PM Modi’s flagship program completes a year, let’s go through the basics of the ‘Make in India’ initiative, and what it stands to cover.

What is ‘Make in India’ program?

The ‘Make in India’ program is an initiative launched to encourage companies to increase manufacturing in India. This not only includes attracting overseas companies to set up shop in India, but also encouraging domestic companies to increase production within the country.

‘Make in India’ aims at increasing the GDP and tax revenues in the country, by producing products that meet high quality standards, and minimising the impact on the environment.

Fostering innovation, protecting intellectual property, and enhancing skill development are the other aims of the program according to the ‘Make in India’ website.

Policies under ‘Make in India’ initiative:

There are 4 major policies under the ‘Make in India’ program:

1. New Initiatives: This initiative is to improve the ease of doing business in India, which includes increasing the speed with which protocols are met with, and increasing transparency.

Here’s what the government has already rolled out

> Environment clearances can be sought online.

> All income tax returns can be filed online.

> Validity of industrial licence is extended to three years.

> Paper registers are replaced by electronic registers by businessmen.

> Approval of the head of the department is necessary to undertake an inspection.

2. Foreign Direct Investment (FDI):

The government has allowed 100% FDI in all the sectors except Space(74%), Defence (49%) and News Media (26%).

FDI restrictions in tea plantation has been removed, while the FDI limit in defence sector has been raised from the earlier 26% to 49% currently.

3. Intellectual Property Facts:

The government has decided to improve and protect the intellectual property rights of innovators and creators by upgrading infrastructure, and using state-of-the-art technology.

The main aim of intellectual property rights (IPR) is to establish a vibrant intellectual property regime in the country, according to the website.

These are the various types of IPR:

  •  Patent: A patent is granted to a new product in the industry.
  • Design: It refers to the shape, configuration, pattern, colour of the article.
  • Trade mark: A design, label, heading, sign, word, letter, number, emblem, picture, which is a representation of the goods or service.
  • Geographical Indications: According to the website, it is the indication that identifies the region or the country where the goods are manufactured.
  • Copyright: A right given to creators of literary, dramatic, musical and artistic works.
  • Plant variety Protection: Protection granted for plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of plants.
  • Semiconductor Integrated Circuits Layout-Design: The aim of the Semiconductor Integrated Circuits Layout-Design Act 2000 is to provide protection of Intellectual Property Right (IPR) in the area of Semiconductor.

4. National manufacturing:

Here the vision is,

  1.  to increase manufacturing sector growth to 12-14% per annum over the medium term.
  2.  to increase the share of manufacturing in the country’s Gross Domestic Product from 16% to 25% by 2022.
  3. to create 100 million additional jobs by 2022 in manufacturing sector.
  4. to create appropriate skill sets among rural migrants and the urban poor for inclusive growth.
  5.  to increase the domestic value addition and technological depth in manufacturing.
  6.  to enhance the global competitiveness of the Indian manufacturing sector.
  7.  to ensure sustainability of growth, particularly with regard to environment.

Response to the ‘Make in India’ initiative:

The government has said that it has, so far, received Rs 1,10 lakh crore worth of proposals from various companies that are interested in manufacturing electronics in India.

Companies like Xiaomi, Huawei have already set up manufacturing units in India, while iPhone, iPad manufacturer Foxconn is expected to open a manufacturing unit soon.

Recently, Lenovo also announced that it has started manufacturing Motorola smartphones in a plant near Chennai.

In a report released by the World Bank, about a state-wise bifurcation based on ease of doing business, Gujarat was ranked as the top state, followed by Andhra Pradesh and Jharkhand.

Pradhan Mantri Awas Yojana (PMAY)

According to current estimates, the urban population of the country, which has already seen a sharp increase over the past decade, is set to see a phenomenal growth in the years to come. By the year 2050, the country’s urban population is set to reach a population of more than 814 million people. This is an increase of about 400 million from current levels. One of the biggest challenges faced by the country will be providing affordable housing, sanitation and development, and a safe environment to the city dwellers. Currently, the development of a city is led by the real estate developers who decide the areas which shall be developed. Real estate prices have also skyrocketed over the past couple of decades leaving the common man with only dreams of owning a house. It is to address these issues that Prime Minister Narendra Modi launched the Housing for All by 2022 scheme, also known as the Pradhan Mantri Awas Yojana (PMAY) on 25 June 2015 at a launch ceremony in Vigyan Bhawan, New Delhi. Two other schemes were also launched as complementary to the affordable housing scheme, a scheme for development of Smart Cities across the country and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) that allows for urban renewal and upgradation of infrastructure in the major urban tracts of the country.

The Prime Minister of India launched the PMAY and the two other schemes in the presence of mayors, municipal commissioners, and state-government officials from all parts of the country. At the launch he said, “The country’s 40 per cent population lives in cities and it is the responsibility of the government to uplift their standards of living. We cannot leave them to their fate…The housing for all scheme will ensure every urban poor is enabled to own a house. AMRUT will ensure basic infrastructure and sanitation is in place in cities.”

Scheme Details

According to the terms of the Pradhan Mantri Awas Yojana, the government of India will undertake to construct about two crore houses by the year 2022. Each house provided under the scheme will involve a central grant of about INR 1 lakh which may go up to INR 2.3 lakhs. This will come as part of a 6.5 percent interest rate subsidy scheme (previous schemes had an interest rate subsidy of about 1 percent). This means that the applicants from lower income groups who avail of the housing scheme may apply for a housing loan with interest subsidy of 6.5 percent. The tenure or term for these housing loans may go up to 15 years and the total benefit received by such loan subsidy will add up to INR 1 to 2.3 lakh each. Currently housing loan interest rates are estimated at about 10.5 percent. The subsidy should, therefore be a major relief to applicants. The ‘Housing for All’ scheme will replace all previous government housing schemes such as the Rajiv Awas Yojana.

According to preliminary estimates, the Housing for All by 2022 will cost the central government about INR three lakh crore spread over the next seven years. The operational guidelines for the schemes launched have been finalised after a year-long round of negotiations with states and Union Territories, say news reports.

Apart from the PMAY itself, the government has come up with a number of incentives and subsidies for the development of housing in urban areas. One of these is the grant of INR 1 lakh per beneficiary to state governments for the development of housing projects in slum areas.

Affordable rental housing, an INR 6,000 crore initiative, which was initially to be part of the Housing For All scheme was missing from the NDA government flagship scheme. The measure, meant to combat the proliferation of slums in urban regions may be released as a separate scheme at a later date.

Benefits to Women, SC/ST

While the Pradhan Mantri Awas Yojana is clear about its goals – affordable housing for all by 2022, it does ensure that the benefits of the scheme are enjoyed by women, economically backward groups of Indian society and the Scheduled Castes and Scheduled Tribes. In an unprecedented move, the government has decided to protect the interests of neglected groups in the country. Transgenders and widows, members of the lower income groups and urban poor, and the Scheduled Castes and Scheduled Tribes shall be granted preference when they try to avail the affordable housing scheme. Apart from these groups members of society who often find themselves out of a home, seniors and differently-abled people shall also gain preference in allotment of houses. They shall also be able to choose a ground-floor house if need be. Apart from this, it is also mandatory that while registering to avail the benefits of the scheme, the beneficiaries must necessarily mention their mother or wife’s name. According to news reports, these details were revealed by a Housing and Urban Poverty Alleviation Ministry official before the launch of the scheme. The scheme is one-of-its-kind in India in terms of the protection and benefits that it extends to previously neglected groups such as transgenders and widows.

Smart Cities and AMRUT

As per the government’s scheme for Smart Cities, 100 smart cities shall be developed across the country in the next five years. This project shall involve major national and international stakeholders and comes at a cost of about INR 48,000 crores. Simultaneously over 500 cities in the country have been slated for urban renewal – upgradation of facilities, especially the drainage and sanitation facilities and infrastructure in these parts. The selection of Smart Cities will be done by a competition open for public voting, said the PM. The 500 cities for AMRUT are currently being identified. The government of India has made a commitment to spend about INR 400,000 crore on these three schemes together in the next six years. The government will be looking at the public private partnership model to finance and successfully run these schemes.

How to Apply for PMAY?

The scheme has just being launched by the Prime Minister. Several housing schemes will be launched under the main scheme by several state governments. Once, the state governments will launch the schemes, the application forms will be made available to the desired applicants.

Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

Prime Minister Narendra Modi has finally launched his dream project of building 100 Smart Cities on 29 April 2015, when the Cabinet chaired by him approved of Rs 48,000 crore outlay to be spent on the project over the next five years.

The Cabinet also approved the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), a mission aimed at transforming 500 cities and towns into efficient urban living spaces, with special focus on a healthy and green environment for children. The Cabinet approved Rs 50,000 crore for this mission which is to be spent over the next five years.

So how are the two projects different?

Atal Mission for Rejuvenation and Urban Transformation (AMRUT) has a wider reach in terms of the number of cities covered and therefore the funds available for each city would be proportionately less. The mission takes a project approach in working towards improving existing basic infrastructure services like extending clean drinking water supply, improving sewerage networks, developing septage management, laying of storm water drains, improving public transport services and creating green public spaces like parks etc, with special focus on creating healthy open spaces for children.

500 cities and towns will be selected on the basis of population i.e. one lakh and above, while the other criteria of selection will apply for certain locations like tourist popularity, cities located at the stems of main rivers, certain popular hill towns and some select islands. The centre is laying out guidelines on the basis of which states will be free to suggest cities that they wish to bring under AMRUT. AMRUT is actually a new avatar of the existing JNNURM and will extend support to till 2017 to those projects that are at least 50% complete under the earlier JNNURM. Over 400 existing projects are likely to benefit from this.

The Smart Cities Mission will focus on developing 100 select Smart cities by focusing on optimising efficiencies in urban services and infrastructure management, with proactive use of technology and people participation. The Mission will support each selected city with Rs 100 crore per year, for a period of five years.

Centre walks the talk on giving more power to the states

Through both these missions, the Centre has taken a fresh approach by involving active participation by the states and giving the control to ‘shortlist’ cities and towns to be brought under the respective missions and take responsibility for their implementation and fund allocation. In addition, the state will undertake supervision and monitoring of project milestones, as per agreed guidelines.

The states will be free to ‘suggest’ cities as per selection matrix laid out by the centre. For instance, for the Smart Cities Project, a ‘Smart City Challenge’ competition will be launched for cities that wish to come under the mission plan. The Centre plans to link financing to the ability of each city to meet the mission objectives.

Special Purpose Vehicles (SPV) will be created for each selected city and the respective states will be responsible to ensure that adequate resources are made available to the SPVs. The Centre will extend funding support to the extent of 50% for cities with a population of up to 10 lakh, and a third of the project cost for cities with a population above 10 lakh.

Central funding to the states for each city will be released in three installments in the ratio of 20:40:40 and would be linked to milestones being achieved, as per State Annual Action Plan.

To promote early implementation by the states, the centre will incentivise the states by offering to release 10% of the budget allocation, based on reforms implementation in the previous year.

If successful, this will indeed be a significant step for India to seriously build a nationwide green and sustainable urban infrastructure.

Challenges ahead

Till now central control over projects did not succeed in improving or incentivising state level involvement. With the new approach of extending central funding support and leaving it to the states to execute and monitor the projects as per their priorities and local needs, the centre has shifted the challenge and responsibility to the states.

The problem is that municipal functioning at the state level is heavily politicized and corrupt. The big question is – will the states be able to rise above petty politics and ensure corrupt free and efficient implementation of mission objectives? There cannot be a successful urban mission of transformation without establishing the requisite professionally run management structure, with necessary checks and balances built-in, and one that has the ability to adopt technology and deliver efficient services.

Do the states have the political will to undertake the necessary transformation?

That maybe partially true. While it is true that the cities will require significantly more than what has been offered by the centre, however, it is also true that the states will be taking their own initiatives in raising funds and resources to meet mission objectives. Between both missions, the central funds allocated is around Rs 100,000 crore, but with states contributing their share, the total allocation could well touch Rs 200,000 crore.

It must be seen in the context where most cities and towns in India have suffered years of neglect, with minimal investment in improving existing infrastructure or building new ones. This mission is a beginning towards initiating the much needed transformation. After all, urban infrastructure development cannot stop with one government but must remain a part of an ongoing process. The fact that this government has initiated steps with active participation from the states, could well give much needed impetus to an overstressed and obsolete infrastructure. It’s time for India to transform.

Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana is a government-backed accident insurance scheme in India. It was originally mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley in February 2015. It was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata. As of May 2015, only 20% of India’s population has any kind of insurance, this scheme aims to increase the number.


Pradhan Mantri Suraksha Bima Yojana is available to people between 18 and 70 years of age with bank accounts. It has an annual premium of ₹12 (18¢ US) excluding service tax, which is about 14% of the premium. The amount will be automatically debited from the account. In case of accidental death or full disability, the payment to the nominee will be ₹2 lakh (US$3,000) and in case of partial Permanent disability ₹1 lakh (US$1,500). Full disability has been defined as loss of use in both eyes, hands or feet. Partial Permanent disability has been defined as loss of use in one eye, hand or foot.[1][2]

This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme. Most of these account had zero balance initially. The government aims to reduce the number of such zero balance accounts by using this and related schemes.


Private banks have complained that the Government should focus on upper middle class instead of the poorer section. Western scholars and Congress have argued that financial inclusion is a myth and serving such large number of people would only increase the burden and work-load of public sector.

Mode of payment of premium

The premium amount will be deducted from the account holder’s savings bank account through ‘auto debit’ facility in one installment for the entire year, as per the option to be given on enrollment. Members may also give one-time mandate for auto-debit every year till the scheme is in force, subject to re-calibration that may be deemed necessary on review of experience of the scheme from year to year

Termination of benefit cover

In following cases the cover will be terminated and no benefit will be payable to the subcribers.

  1. On attaining age 70 years or the age nearest birth day
  2. At the time of renewal in subsequent years,due to insufficiency of balance to keep the insurance in force the account gets closed.
  3. In case a subscriber is covered by more than one account and premium is paid by the subscriber intentionally, insurance cover will be restricted to one only and the premium shall be liable to be forfeited.
  4. If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium, subject to conditions that are to be issued in future. During this period, the risk cover will be” suspended” and reinstatement of risk cover will be at the sole discretion of Insurance Company.

Pradhan Mantri Suraksha Bima Yojana Participating banks will deduct the premium amount in the same month when the auto debit option is given, preferably in May of every year, and remit the amount due to the Insurance Company in that month itself.

Claim Process

PMSBY claim process is like claiming other insurance from either private or governmental bank. You need to be prepare with each supporting document and must inform bank. Below steps can be summarised as claim process of Pradhan mantri suraksha Yojana.

  1. Need to inform the bank( There are more than 25 banks) regarding accident.
  2. Claim should be submitted to the Bank from which PMSBY has been bought.
  3. Claim Form should be submitted within 30 days after incidence.
  4. Submit claim supporting document like FIR, death certificate, report of post mortem, disability certificate (if any) and the discharge certificate.
  5. After Verification Bank will provide insurance amount to nominee or legal heir.

Pradhan Mantri Jeevan Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana is a government-backed Life insurance scheme in India. It was originally mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley in February 2015. It was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata. As of May 2015, only 20% of India’s population has any kind of insurance, this scheme aims to increase the number.

Pradhan Mantri Jeevan Bima Yojana Overview

Pradhan Mantri Jeevan Jyoti Bima Yojana is available to people between 18 and 50 years of age with bank accounts. It has an annual premium of ₹330 (US$4.90) excluding service tax, which is above 14% of the premium. The amount will be automatically debited from the account. In case of death due to any cause, the payment to the nominee will be ₹2 lakh(US$3,000).

This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme. Most of these account had zero balance initially. The government aims to reduce the number of such zero balance accounts by using this and related schemes.

Pradhan Mantri Jeevan Bima Yojana Criticism

The banks have complained that revenue received will be very low. Some bankers have claimed that amount they are receiving is not sufficient to cover the service costs. Since this is a group insurance scheme, banks have not received instruction regarding cases where excessive claims are in a year. Insurers have also pointed out that no health certificate or information of pre-existing disease is required for joining.

Digital India Programme

Right from the day of assuming power, Digital India and Make in India have been two big USPs of Prime Minister Narendra Modi. The first steps were taken with the launch portal. Only a couple of weeks ago, Narendra Modi launched his mobile app to connect further with the netizens. Over the last one year, several initiatives have been taken for introduction of Information Technology to empower people in areas relating to health, education, labour and employment, commerce etc.  Digital India Week has  been launched with an aim to impart knowledge to people and  to empower themselves  through the Digital India Programme of Government of India.

The programme structure

Digital India comprises of various initiatives under the single programme each targeted to prepare India for becoming a knowledge economy and for bringing good governance to citizens through synchronized and co-ordinated engagement of the entire Government.

This programme has been envisaged and coordinated by the Department of Electronics and Information Technology (DeitY) in collaboration with various Central Ministries/Departments and State Governments. The Prime Minister as the Chairman of Monitoring Committee on Digital India, activities under the Digital India initiative is being carefully monitored. All the existing and ongoing e-Governance initiatives have been revamped to align them with the principles of Digital India.

Vision of Digital India

The vision of Digital India programme aims at inclusive growth in areas of electronic services, products, manufacturing and job opportunities etc. It is centred on three key areas –

  • Digital Infrastructure as a Utility to Every Citizen
  • Governance & Services on Demand and
  • Digital Empowerment of Citizens

With the above vision, the Digital India programme aims to provide Broadband Highways, Universal Access to Mobile Connectivity,  Public Internet Access Programme,  E-Governance: Reforming Government through Technology, eKranti – Electronic Delivery of Services, Information for All, Electronics Manufacturing: Target Net Zero Imports,  IT for Jobs  and Early Harvest Programmes.

Key Projects of Digital India programme

Several projects/products have already launched or ready to be launched as indicated below:

  1. Digital Locker System aims to minimize the usage of physical documents and enable sharing of e-documents across agencies. The sharing of the e-documents will be done through registered repositories thereby ensuring the authenticity of the documents online.
  2. has been implemented as a platform for citizen engagement in governance, through a “Discuss”, “Do” and “Disseminate” approach. The mobile App for MyGov would bring these features to users on a mobile phone.
  3. Swachh Bharat Mission (SBM) Mobile app would be used by people and Government organizations for achieving the goals of Swachh Bharat Mission.
  4. eSign framework would allow citizens to digitally sign a document online using Aadhaar authentication.
  5. The Online Registration System (ORS) under the eHospital application has been introduced. This application provides important services such as online registration, payment of fees and appointment, online diagnostic reports, enquiring availability of blood online etc.
  6. National Scholarships Portal is a one stop solution for end to end scholarship process right from submission of student application, verification, sanction and disbursal to end beneficiary for all the scholarships provided by the Government of India.
  7. DeitY has undertaken an initiative namely Digitize India Platform (DIP) for large scale digitization of records in the country that would facilitate efficient delivery of services to the citizens.
  8. The Government of India has undertaken an initiative namely Bharat Net, a high speed digital highway to connect all 2.5 lakh Gram Panchayats of country. This would be the world’s largest rural broadband connectivity project using optical fibre.
  9. BSNL has introduced Next Generation Network (NGN), to replace 30 year old exchanges, which is an IP based technology to manage all types of services like voice, data, multimedia/ video and other types of packet switched communication services.
  10. BSNL has undertaken large scale deployment of Wi-Fi hotspots throughout the country. The user can latch on the BSNL Wi-Fi network through their mobile devices.
  11. To deliver citizen services electronically and improve the way citizens and authorities transact with each other, it is imperative to have ubiquitous connectivity. The government also realises this need as reflected by including ‘broadband highways’ as one of the pillars of Digital India.  While connectivity is one criterion, enabling and providing technologies to facilitate delivery of services to citizens forms the other.

Policy initiatives

Policy initiatives have also been undertaken (by DeitY) in the e- Governance domain like e-Kranti Framework, Policy on Adoption of Open Source Software for Government of India, Framework for Adoption of Open Source Software in e-Governance Systems, Policy on Open Application Programming Interfaces (APIs) for Government of India, E-mail Policy of Government of India, Policy on Use of IT Resources of Government of India, Policy on Collaborative Application Development by Opening the Source Code of Government Applications, Application Development & Re-Engineering Guidelines for Cloud Ready Applications

  1. BPO Policy has been approved to create BPO centres in different North Eastern states and also in smaller / mofussil towns of other states.
  2. Electronics Development Fund (EDF) Policy aims to promote Innovation, R&D, and Product Development and to create a resource pool of IP within the country to create a self-sustaining eco-system of Venture Funds.
  3. National Centre for Flexible Electronics (NCFlexE) is an initiative of Government of India to promote research and innovation in the emerging area of Flexible Electronics.
  4. Centre of Excellence on Internet on Things (IoT) is a joint initiative of Department of Electronics & Information Technology (DeitY), ERNET and NASSCOM.


The estimated impact of Digital India by 2019 would be cross cutting, ranging from broadband connectivity in all Panchayats, Wi-fi in schools and universities and Public Wi-Fihotspots. The programme will generate huge number of IT, Telecom and Electronics jobs, both directly and indirectly. Success of this programme will make India Digitally empowered and the leader in usage of IT in delivery of services related to various domains such as health, education, agriculture, banking, etc.

Deen Dayal Upadhyaya Gram Jyoti Yojana

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the launch of Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) with components

> to separate agriculture and non agriculture feeders facilitating judicious rostering of supply to agricultural and non-agricultural consumers in rural areas and 

> strengthening and augmentation of sub transmission and distribution infrastructure in rural areas, including metering of distribution transformers/feeders/consumers.

The estimated cost of the scheme for above two components is Rs.43,033 crore which includes the requirement of budgetary support of Rs.33,453 crore from Government of India over the entire implementation period.

The Cabinet further approved, that the balance work relating to rural electrification as per CCEA’s approval in August, 2013 with the norms of the ongoing scheme of RGGVY in 12th and 13th Plans will get subsumed in DDUGJY as a distinct component for rural electrification, for which CCEA has already approved the scheme cost of Rs.39,275 crore including budgetary support of Rs.35,447 crore. This outlay will be carried forward to the new scheme of DDUGJY in addition to the outlay of Rs.43,033 crore.

The scheme would help in:

> Improvement in hours of power supply in rural areas,

> Reduction in peak load, 

> Improvement in billed energy based on metered consumption and 

> Providing access to electricity to rural households.

The process of sanction of projects shall commence immediately. After sanction of projects, contracts for execution of projects will be awarded by States Discoms / Power Departments. The projects shall be completed within 24 months from date of award.

Atal Pension Yojana (APY)

Introduction to Pradhan Mantri Atal Pension Yojana (APY):

The agenda of NDA Government was to provide Social security, Financial stability to the citizen of India in the Poverty line stream. Our current PM is being very optimistic and moving forward in all possible ways and means to improve the Indian economy and the stand of living of the citizens in India. In such a stram the aspects such as PMJJBY, PMJDY plus the ATY which were a going to study are the factors introduced by the NDA Government.

AIM of the scheme:

The scheme endeavours to provide benefit of pension, which is given after retirement where one needs to have a say as a result. The targeted sector of individuals are the unorganized sector of workers.

Eligibility Criteria:

All the Indians are eligible whose age is between 18 – 40 years. Before availing the benefits of APY, the individuals need at least 20 years of contribution. This scheme provides any account holders of bank who is not an active member of any legislative social security. Individuals Schemed previously under ‘Swavalamban Scheme’ are directed automatically to APY.

Authorization authorities:

The Pension Fund Regulatory & Development Authority administers the scheme of APY or even the Government administers the policy.

Contribution process :

  • Swavlamban Policy Aggregator
  • All service providers – Banks

The advantages involved in Atal Pension Yojana:

  • Ageing individuals are given a security under this scheme, so as to create an awareness & secirity on traditional saving methods. And to basically help the ones under the lower class and lower middle class level.
  • A share of 50% is contributed which is of the users contribution. Or in other terms INR of 1,000 per year for tenure of 5 years is studied.
  • This applicable only to the users who join this scheme on or before 31st December 2015. The share, at any time is enjoyed by the ones who belong to the category where they do not pay income tax.
  • No Taxation deduction availed on the contribution amount t APY.
  • For the higher and lower amount of pension can change the monthly share of contribution.
  • The pension rages between Rs.1000/- to Rs.5000/-, which is based on the contribution based.

Process/Procedure involved to make use of the scheme:

The scheme APY plays a vital role in supporting, so as to pay pension to the poor or poor middle class. Lets gain knowledge on how to enrol with the scheme –

  • The account holder needs to fill in the form of authorization and has to be handed over to the particular bank of the account holder. The form requires filling of entire details such as Nominee and spouse information, account number along with the approval of auto debit of amount of contribution money.
  • Sufficient amount needs to be maintained every month, if proper funds are failed to maintain penalty is implied

Penalty ranges made as such, which is as follows-

  •  INR 10 for monthly share further than INR 1,001
  • INR 5 for monthly share targeting INR 501 & INR 1,000
  • INR 2 for monthly share ranging INR 101 & INR 500
  •  INR 1 for monthly share upto INR 100

Limitations on the account:

> If payments are not made for 6months, account is frozen

> No payment made till 12 months, account is deactivated

> Payment inactive for 24 months, account is closed

Formalities to exit from the policy:

In the general terms, an individual active in the scheme of APY cannot exodus until the individual attains the age of 60 years. Only special situations the account can be exited like in case of death of the account holder.

Opportunities or factors involved for non-account holders:

It is a mandatory factor for an individual to open an account by handing in Aadhar card along with KYP documentation. One need fill in the complete application of APY form of proposal.

Skill India Mission

NEW DELHI:  Prime Minister Narendra Modi today launched ambitious projects that aims to train over 40 crore people in India in different skills by 2022.

The initiatives include National Skill Development Mission, National Policy for Skill Development and Entrepreneurship 2015, Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme and the Skill Loan scheme.

They were launched to mark the first-ever World Youth Skills Day.

 At the event, Modi also unveiled the Skill India logo with the tagline — ‘Kaushal Bharat, Kushal Bharat’ (Skilled India, Successful India).

The government’s flagship scheme, PMKVY, will incentivise skill training by providing financial rewards to candidates who successfully complete approved skill training programmes. The scheme aims to recognise and provide skill to 24 lakh youth who lack formal certification, such as workers in vast unorganised sector.

Special camps are being organised at 100 locations with Nehru Yuva Kendra Sangathan (NYKS) and a national SMS campaign is being rolled out to build awareness of the program, reaching about 40 crore subscribers.

Fresh PMKVY training was initiated in 1,000 centres across all States and Union Territories in India today, covering 50,000 youth in 100 job roles across 25 sectors.

Through an initiative known as ‘Recognition of Prior Learning’ (RPL), 10 lakh youth will be assessed and certified for the skills that they already possess.

Under the Skill Loan scheme, loans ranging from Rs. 5,000-1.5 lakh will be made available to 34 lakh youth seeking to attend skill development programmes over the next five years.

Sanction letters for the first ever Skill Loans were handed out by the PM Modi to aspiring trainees.  He also awarded Skill Cards and Skill Certificates to trainees who had recently completed training through the Pilot Phase of PMKVY, which started in May. Such Skill Cards and Skill Certificates will allow trainees to share their skill identity with employers.

Across the country, 2.33 lakh youth were awarded certificates from Industrial Training Institutes (ITIs) and over 18,000 graduating students received job offer letters on the occasion of World Youth Skills Day.

PM Modi personally presented industry job offer letters to five female ITI graduates at the event.

One Rank One Pension (OROP) scheme

The Minister of State for External Affairs General V K Singh on Monday reiterated again that Modi government is committed for ‘one rank, one pension’ scheme for ex-servicemen. “The BJP-led government at the Centre has allotted Rs 1,000 crore for the implementation of one rank one pension scheme, which is insufficient. I have requested the Finance Minister to allocate more funds for it. The government remains committed to implement the scheme at the earliest,” Singh said in Mumbai.

What is the OROP?

  • OROP’ implies equal amount of pension for having served in the same rank and also having rendered the same length of service. [Govt dedicated to One Rank One Pension, says PM Narendra Modi]
  • For an example, a Sepoy who retired in 1995 would get the same amount of pension as the one who retired in 1996.

Pay commission makes thing worse

  •  Discontent among ex-servicemen is largely because of the reason that with every successive pay commission the gap between past pensioners and their younger equivalents grows further. [One Rank One Pension issue: War veterans boycott govt functions]
  • According to Lt Gen Raj Kadyan, who is the chairman of Indian Ex Servicemen Movement, “The stark difference can be seen after implementation of the Sixth Pay Commission”.
  • He further says, “for equal service, a Sepoy, who retired prior to 1996, gets 82% lower pension than a Sepoy who retires after 2006. Similarly, among officers, a pre-1996 Major gets 53% lower pension than his post 2006 counterpart”.

What Judiciary says on the matter?

  •  And if that is being done then that will be considered as the violation of Article 14 which gives a person constitutional right to be treated equal before law.

    In 2010 ruling, the court had said that the State can’t adopt different criteria for the scheme on the basis of cut-off date of retirement

  •  “Pension is not a bounty nor a matter of grace depending upon the sweet will of the employer. It is not an ex-gratia payment, but a payment for past services rendered”, the Supreme Court in its 1983 ruling had stated.

2001 Parliamentary panel recommendations

  •  Parliamentary panel recommendationsThe Standing Committee on Defence had submitted the report regarding the issue in 2001.
  • According to report, the Third Pay Commission in 1973 had abolished this scheme and till then it had been in vogue.
  • The Committee had questioned that when it was successfully ran for 26 years after the independence then what was the problem in implementing it further

BJP seems in mood to walk the talk

  •  It was a part of BJP’s manifesto.
  • Prime Minister Narendra Modi had reiterated about the scheme so many times during his election campaign.
  • The BJP Government allocated Rs 1,000 crore for the scheme in Union Budget.

For years, Congress bluffed only

  • In theory, UPA Government had accepted the scheme many a times but didn’t implement.
  • During interim budget 2014, former Finance Minister had earmarked Rs 500 crore for the same, though aimed to get dividends in Lok sabha election.
  • Finance Minister Arun Jaitley had said, “This year again, in the budget speech, the former finance minister announced the acceptance of this demand. However, again the ex-servicemen have been bluffed. No notification has been issued to give enforcement effect to this demand,”.