Annual Report 2021-22

ANNUAL REPORT 2021-2022 MINISTRY OF FINANCE ºÉiªÉàÉä´É VɪÉiÉä ºÉiªÉàÉä´É VɪÉiÉä Government of India MINISTRY OF FINANCE 2021-2022 ANNUAL REPORT PRINTED BY BUDGET PRESS, MINISTRY OF FINANCE, NEW DELHIContents Page No. INTRODUCTION v CHAPTER I Department of Economic Affairs 1. Economic Division 1 2. Budget Division 4 3. Financial Markets Division 8 4. Financial Stability and Cyber Security Division 20 5. Financial Sector Reforms and Legislation Division 22 6. Infrastructure Policy and Planning Division 25 7. Investment and Digital Economy Division 28 8. FB & ADB Division 37 9. International Economic Relations Division 45 10. Aid Accounts & Audit Division 54 11. Administration Division 55 12. Bilateral Cooperation and Sustainable Finance Division 58 13. Integrated Finance Division 65 14. Coin & Currency Division 71 15. Other Multilateral Institution Division 74 Annexures I to VI 77 Organisation Chart 83 iCHAPTER II Department of Expenditure 1. Personnel Division 85 2. Public Finance-State Division 86 3. Public Finance Central Division 89 4. Procurement Policy Division 90 5. Official Language 90 6. Integrated Finance Unit (IFU) 91 7. Controller General of Accounts 92 8. Chief Adviser Cost 95 9. Arun Jaitley National Institute of Financial Management (AJNIFM) 96 10. Chief Controller of Accounts 98 11. Central Pension Accounting Office 100 Annexures I to III 102 Organisation Chart 103 CHAPTER III Department of Revenue 1. Organization and Functions 105 2. Central Board of Direct Taxes 106 3. Central Board of Indirect Taxes and Customs 126 4. Revenue Headquarters Administration 166 5. Integrated Financial Unit (IFU) 199 6. Implementation of Official Language Policy 200 7. Implementation of Right to Information Act, 2005 201 8. e-governance activities 203 9. Swachh Bharat Campaign 219 Annexure - I - Representation of SCs/STs/OBCs 222 Annexure - II - Representation of VH/OH 233 Annexure - III - Summary of Audit Reports / Paras 244 Annexure - IV - Organization Chart 246 iiCHAPTER IV Department of Investment and Public Asset Management I. Functions 247 II. Vision 247 III. Mission 247 IV. Organisational Structure 247 V. Current Policy on Disinvestment in CPSEs 247 VI. Disinvestment Performance 248 VII. Disinvestment Targets & achievements 250 VIII Other Initiatives 251 IX. Capital Management of CPSEs 251 X. Initiatives Undertaken for Persons with Disabilities, Schedule Castes, Scheduled Tribes and Other Backward Classes 252 XI. Initiatives Relating to Gender Budgeting and Empowerment of Women 252 XII. Official Language Policy 252 XIII. E-Governance 252 XIV. Redressal of Public Grievances 252 XV. Vigilance Machinery 252 XVI. Right to Information Act, 2005 252 XVII.Initiatives for Good Governance 253 XVIII. Audit Paras/Objections 253 XIX. Integrated Finance Unit 253 Annexure I 254 Appendix I - Organisation Chart 255 Appendix II 256 iiiCHAPTER V Department of Financial Services 1. Work Allocation among Sections 257 2. Overiew Banking Sector 261 3. Financial Inclusion 263 4. Key Schemes 264 5. Agriculture Credit 267 6. Priority Sector Lending (PSL) 269 7. Financial Institutions 271 8. Insurance Sector 275 9. Pension Sector 278 10. Measures Taken during the COVID-19 Pandemic 281 11. Miscellaneous 284 Annexures 290 Organisation Chart 293 CHAPTER VI Department of Public Enterprises 1. Public Enterprises Survey 295 2. Organisation and Autonomy of CPSEs 295 3. Wage Policy and Manpower Rationalization 297 4. Categorisation of CPSEs 298 5. Monitoring and Evaluation 298 6. Corporate Social Responsibility 300 7. Scheme for Counselling, Retraining and Redeployment & Scheme for Research, Development and Consultancies 300 8. Implementation of New Public Sector Enterprises Policy 302 9. Voluntary Retirement Scheme 303 10. Executive Development Programmes 303 11. Reservation in Services for Scheduled Castes, Scheduled Tribes, Other Backward Classes and Others, in the CPSEs 303 12. Official Language Policy 305 Annexure 1 - Organisation Chart 306 Annexures 2-9 307 ivIntroduction Introduction The Ministry comprises of six Departments to recover 97.8% of corresponding pre-pandemic levels namely:— and stands fully recovered in H2 of FY 2021-22. These  Department of Economic Affairs estimates confirm strengthening of economic recovery  Department of Expenditure on the back of rising capex in public sector, increasing resilience of India's exports, investment cycle uptick and  Department of Revenue improved consumption levels. Growth in income coupled  Department of Investment and Public Asset with improved mobility and e-commerce augurs well for Management higher levels of employment. The growth in government  Department of Financial Services final consumption expenditure at constant (2011-12)  Department of Public Enterprises prices is estimated at 7.6 per cent in 2021-22 (1st advance estimates), as compared to 3.6 per cent in 2020-21 (1st 1. Department of Economic Affairs revised estimates). The growth in gross fixed capital formation at constant prices is estimated at 15.0 per cent Economic Growth in 2021-22 (1st advance estimates) as compared to (-) 10.4 per cent in 2020-21 (1st revised estimates). Real The Delta variant of COVID-19 struck India in the beginning of 2021-22 marking the onset of the second exports and imports of goods and services are estimated wave. Although the second wave of the pandemic in April- to grow by 16.5 per cent and 29.4 per cent respectively June 2021 was more severe from a health perspective, in 2021-22. the economic impact was muted compared to the national Investment, as measured by Gross Fixed Capital lockdown of the previous year. The Advanced Estimates Formation (GFCF) is expected to see strong growth of of real GDP growth (YoY) in FY 2021-22 at 9.2 per cent 15 per cent in 2021-22 and achieve full recovery of pre- confirm the sustained momentum of GDP growth since pandemic level. Government's policy thrust on quickening the second wave. The economy in the current year has virtuous cycle of growth via capex and infrastructure recovered 101.6 per cent of the pre-pandemic output of spending has increased capital formation in the economy FY 2019-20. This is supported by strong rebound seen lifting the investment to GDP ratio to about 29.6 per cent in several high frequency indicators in Q3: FY 2021-22 in 2021-22, the highest in seven years. and rapid progress in vaccination coverage. Information on saving and investment is available On the supply side, while agriculture continues to lend unwavering support to economic recovery, only till the year 2020-21. Gross saving as proportion of manufacturing and construction exhibited a sharp GDP at current market prices is estimated at 28.2 per rebound to recover more than 100 per cent of cent in 2020-21 as compared to 29.9 percent in corresponding pre-pandemic output levels. These 2019-20. Gross capital formation, also known as developments clearly reflect uptick in consumer and investment, was estimated to at 27.3 per cent of the GDP investor sentiment, release of pent-up demand, especially at current market prices in 2020-21, as compared to 30.7 in construction supported by growing public capex and per cent in 2019-20. housing cycle upturn. Recovery in services sector has Simultaneously, the world's largest free vaccination improved to reach corresponding pre-pandemic levels drive is underway with more than 167.87 crore doses at 100 per cent, reflecting gradual adaptability of contact- administered as on 3rd February 2022. More than 95 per intensive service sectors to the pandemic situation. The cent of adult population is vaccinated with single dose growth of the gross value added (GVA) at constant basic while more than 75 per cent of adult population is prices has been estimated to grow by 8.6 per cent in 2021-22 (1st advance estimates), with agriculture and vaccinated with double dose of COVID-19 vaccine. allied sectors, industrial sector and services sector Prices growing at 3.9 per cent, 11.8 per cent and 8.2 per cent Retail inflation, measured in terms of Consumer respectively. Price Index-Combined (CPI-C), showed a decline from On the demand side, the recovery has been broad 3.6 per cent in 2017-18 to 3.4 per cent in 2018-19 and based. While investment and exports have achieved more stood at 4.8 per cent in 2019-20. However, during than full recovery of corresponding pre-pandemic FY pandemic year 2020-21, it has climbed sharply to 6.2 per 2019-20 levels, private consumption has also improved cent mainly on account of high 'food and beverage' and vAnnual Report 2021-2022 miscellaneous inflation. CPI-C inflation averaged 5.2 per 22 food inflation averaged 2.9 per cent. Inflation measured cent in Apr-Dec, 2021-22, and inflation recorded 5.6 per in terms of Wholesale Price Index (WPI) declined from cent in December 2021. Food inflation based on 4.3 per cent in 2018-19 to 1.3 per cent in 2020-21.WPI Consumer Food Price Index (CFPI) declined from 1.8 inflation averaged 12.5 per cent during April-December, per cent in 2017-18 to 0.1 per cent in 2018-19 but rose 2021-22 and stood at 13.6 per cent in December 2021 sharply to 7.7 per cent in 2020-21. During April-Dec, 2021- (Table 1). Table1: Inflation in CPI and WPI (in per cent) CPI-C WPI All Food (CFPI) All Food Base 2012=100 2011-12=100 Weight 100.0 39.1 100.0 24.4 2017-18 3.6 1.8 3.0 1.9 2018-19 3.4 0.1 4.3 0.6 2019-20 4.8 6.7 1.7 6.9 2020-21 6.2 7.7 1.3 4.0 2020-21 (Apr-Dec) 6.6 9.1 0.04 4.3 2021-22 (Apr-Dec) 5.2 2.9 12.5 5.9 Apr-21 4.2 2.0 10.7 7.5 May-21 6.3 5.0 13.1 8.3 Jun-21 6.3 5.1 12.1 6.7 Jul-21 5.6 4.0 11.6 4.5 Aug-21 5.3 3.1 11.6 3.8 Sep-21 4.4 0.7 11.8 2.6 Oct-21 4.5 0.8 13.8 4.3 Nov-21 4.9 1.9 14.2 6.7 Dec-21 5.6 4.0 13.6 9.2 Source: NSO and DPIIT. Notes: 1. WPI inflation for last two months and CPI-C inflation for last one month is provisional. Agriculture and Food Management As per 2nd Advance Estimates for 2021-22, total During the South West Monsoon Season (June- Foodgrains production in the country is estimated at September) of 2021, the country as a whole received record 316.06 million tonnes which is higher by 5.32 rainfall of 99 per cent of its Long Period Average (LPA). million tonnes than the production of foodgrain during Out of the total 36 meteorological subdivisions, 20 2020-21. Further, the production during 2021-22 is higher subdivisions constituting 58% of the total area of the by 25.35 million tonnes than the previous five years' country received normal seasonal rainfall, 10 subdivisions received excess rainfall (25% of the total area) and 6 (2016-17 to 2020-21) average production of foodgrains. subdivisions (17% of the total area) received deficient (Table 1). season rainfall viIntroduction Table 2: Production of Major Agricultural Crops (2nd Advance Estimates) Production (Million Tonnes) Crops 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 (2nd A.E) Total food-grains 251.5 275.1 285.0 285.2 297.5 310.7 316.1 Rice 104.4 109.7 112.8 116.5 118.4 124.4 127.9 Wheat 92.3 98.5 99.9 103.6 107.6 109.6 111.3 Total Coarse 49.9 Cereals 38.5 43.8 47.0 43.1 47.8 51.3 Total Pulses 16.3 23.1 25.4 22.1 23.0 25.5 27.0 Total oilseeds 25.3 31.3 31.5 31.5 33.3 36.0 37.2 Sugarcane 348.5 306.1 379.9 405.4 370.5 405.4 414.0 Cotton# 30.0 32.6 32.8 28.0 36.1 35.3 34.1 Source: Second Advance Estimates of Production of Major Crops for 2021-22. # Lakh bales of 170 kgs. each As per preliminary reports received from the States, since 2014-15 with record fish production of 145 lakh the total area sown under Rabi crops as on 28th January, tons in FY 2020-21 (provisional) 2022 stands at 689.1 lakh hectares as compared to 680.8 Industry and Infrastructure lakh hectare for corresponding period last year. The performance of the industrial sectors based on As per the 3rd Advance Estimate area and the Index of Industrial Production (IIP) comprising mining, production under horticulture crops1 during 2020-21 is manufacturing and electricity showed negative growth in 27.6 million hectares and 331.1 million MT as compared industrial production during 2020-21. According to the to 26.5 million hectares and 320.5 million MT in 2019-20. data on the IIP released by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Milk production in the country has grown at a Implementation (MOSPI), the Index of Industrial compound annual growth rate of about 6.2 per cent to Production (IIP) based industrial growth during 2020-21, reach 209.96 million tonnes in 2020-21 from 146.31 was (-) 8.4 per cent as compared to (-) 0.8 per cent during million tonnes in 2014-15. Per capita availability of milk the 2019-20. The three broad sectors, mining, is 427 grams per day in 2020-21 (provisional). manufacturing and electricity sectors fell by of 7.8 per India is the second largest fish producing country in cent, 9.6 per cent and 0.5 per cent respectively in 2020- the world accounting for 7.56 per cent of global 21 as against growth of 1.6 per cent (-) 1.4 per cent and production. It contributes about 1.24 per cent to the 1 per cent growth respectively during 2019-20. During country's GVA and over 7.28 per cent to the agricultural April-November 2021-22, the IIP grew by 17.4 per cent. GVA. Fisheries sector has demonstrated an outstanding The growth of different used based industrial group is double-digit average annual growth of 10.87 per cent given below. Table 3 : Growth of Index of Industrial Production (IIP) (in Per cent) (Base 2011-12=100) Industry Group Weight 2019-20 2020-21 2021-22(April- November) Mining 14.37 1.6 -7.8 18.2 Manufacturing 77.63 -1.4 -9.6 18.5 Electricity 7.99 1.0 -0.5 10.2 1 Horticulture crops comprising of fruits, vegetables, aromatic and medicinal, flowers, honey, plantation and spices. viiAnnual Report 2021-2022 Growth by use-based industrial group Primary Goods 34.04 0.7 -7.0 13.2 Capital Goods 8.22 -13.9 -18.6 29.0 Intermediate Goods 17.22 9.1 -9.4 23.7 Infrastructure/Construction Goods 12.33 -3.6 -8.7 27.5 Consumer Durable Goods 12.83 -8.7 -15.0 24.0 Consumer Non-durable Goods 15.32 -0.1 -2.2 6.4 General Index 100 -0.8 -8.4 17.4 Source: NSO, MoSPI The index for eight core industries comprising coal, the index during the period of April-December 2021-22 crude oil, natural gas, refinery products, fertilizers, steel, was 12.6 percent as compared to (-) 9.8 percent in the cement and electricity with a combined weight of nearly corresponding period of last financial year. This 40 per cent in the IIP, declined by 6.4 per cent in April- acceleration in ICI is mainly driven by improved March 2020-21 because of the pandemic led disruptions performance in the steel, cement, natural gas, coal and in the production, as compared to a growth of 0.4 per electricity. cent growth in April-March 2019-20. The growth rate of Table 4: Production growth (per cent) in Eight Core Infrastructure- Supportive Industries 2019-20(Apr-Mar) 2020-21(Apr-Mar) 2021-22(Apr-Dec) Overall Growth rate 0.4 -6.4 12.6 Coal -0.4 -1.9 10.6 Crude Oil -5.9 -5.2 -2.6 Natural Gas -5.6 -8.2 22.4 Petroleum Refinery Products 0.2 -11.2 10.0 Fertilizers 2.7 1.7 -0.1 Steel 3.4 -8.7 22.1 Cement -0.9 -10.8 26.1 Electricity 0.9 -0.5 9.4 Source: Office of the Economic Adviser, DPIIT (Ministry of Commerce & Industry) As per report on Review of Infrastructure Sector  During April-November 2021, the cement Performance(MOSPI) November, 2021 issue the production stood at 224.16 MT which was following are the highlights: 28.25% higher than the production during the corresponding period of the last year.  During April – November 2021, 519.300 MT coal was dispatched which 22.17% higher than the  Refinery production including production in coal dispatched during the corresponding period private sector during April - November 2021, of the previous year. stood at 155.73 MT was 11.77% higher than the production during the corresponding period of the  Production of finished steel including production previous year. in private sector during April - November 2021 stood at 72.82 MT was 26.78% higher than the  During April - November 2021, the National production during the corresponding period of the Highways Authority of India (NHAI) have previous year. constructed/widened and strengthened 1739 viiiIntroduction Kilometre (Km) of National Highways to four/six/ recording an increase of 9.8 percent over 2020-21. In eight lanes. 2021-22 (BE), funds to the social sector increased from  During April - November 2021, the freight traffic 8.3 percent of Gross Domestic Product (GDP) in 2020- carried by the Railways stood at 903.17 MT was 21 to 8.6 percent of GDP. Expenditure on health sector 20.11% higher than the corresponding period of increased from Rs. 2.73 lakh crore in 2019-20 (pre- the previous year. COVID-19 year) to Rs. 4.72 lakh crore in 2021-22 (BE), an increase of nearly 73 percent. For the education sector,  During April - November 2021, the International the increase during same period was 20 percent. terminals of 5 major and other airports handled 108.97 lakh passengers which was156.86% Labour Market higher than the passengers handled during the corresponding period of last year. Before the outbreak of COVID-19, the urban labour market had shown signs of improvement in terms of Social Sector Expenditure labour force participation rate (LFPR), Worker population During the last two years, as India along with rest of ratio (WPR) and Unemployment rates (Table 5). However, the world faced the COVID-19 pandemic, Government’s the nation-wide lockdown imposed in late-March, 2020 key focus in India remained on providing a safety-net to adversely impacted the urban labour market. With the the vulnerable segments of society as well as providing revival of economy in the subsequent quarters of a coherent response to the health consequences of the 2020-21, all three labour market indicators showed a swift pandemic. Consequently, Government spending on social recovery. The Unemployment rate gradually declined services increased significantly during the pandemic, during this period to reach 9.3 per cent in Q of 2020-21. 4 Table 5: Labour market indicator for Urban sector (age: 15 & above) at CWS (in per cent) Survey Year Quarters LFPR WPR UR July-Sept, 2019 47.3 43.4 8.3 Oct-Dec, 2019 47.8 44.1 7.8 2019-20 Jan-March, 2020 48.1 43.7 9.1 April-June, 2020 45.9 36.4 20.8 July-Sept, 2020 47.2 40.9 13.2 2020-21 Oct-Dec, 2020 47.3 42.4 10.3 Jan-March, 2021 47.5 43.1 9.3 Source: Quarterly PLFS reports Payroll Subscription under Employees’ Provident Aatmanirbhar Bharat Rojgar Yojana (ABRY) was Fund Organisation (EPFO) announced as a part of Aatmanirbhar Bharat 3.0 package The latest payroll data of Employees’ Provident Fund to boost the economy, increase the employment Organisation (EPFO) which covers the low paid workers generation in post Covid recovery phase and to incentivize in medium and large establishments of formal sector creation of new employment along with social security shows that the net addition in EPF subscribers reached benefits and restoration of loss of employment during 13.9 lakh during the month of November 2021, which COVID-19 pandemic. As on 6th January 2022 benefits translates into growth of 109.21 percent from November 2020, and a growth of 25.65 percent from October, 2021. have been given to 43,21,837 beneficiaries through Thus, the monthly net addition in subscriptions during 1,22,228 Establishments. The Deendayal Antyodaya 2021 has not only been higher than the corresponding Yojana – National Rural Livelihoods Mission (DAY-NRLM), monthly values in 2020, but they have also surpassed launched in 2011, is another intervention that seeks to the levels of the corresponding months during pre- alleviate rural poverty through building sustainable pandemic year 2019. This points to the formalisation of community institutions for the poor. Till December, 2021, the job markets as well as new hiring. Government has taken measures for jobs creation as well as sustainable 8.07 crore households are mobilized into Self Help livelihoods generation. Groups. ixAnnual Report 2021-2022 External Sector percentage-points revision for the United States. In China, pandemic-induced disruptions related to the zero- World Economic Development tolerance COVID-19 policy and protracted financial stress According to International Monetary Fund, World among property developers have induced a 0.8 Economic Outlook, January 2022, global growth is percentage-point downgrade. Global growth is expected expected to moderate from 5.9 in 2021 to 4.4 per cent in to slow to 3.8 per cent in 2023. Although this is 0.2 2022—half a percentage point lower for 2022 than in the percentage point higher than in the previous forecast, October World Economic Outlook (WEO), largely the upgrade largely reflects a mechanical pickup after reflecting forecast markdowns in the two largest current drags on growth dissipate in the second half of economies. A revised assumption removing the Build 2022. The forecast is conditional on adverse health Back Better fiscal policy package from the baseline, outcomes declining to low levels in most countries by earlier withdrawal of monetary accommodation, and end-2022, assuming vaccination rates improve worldwide continued supply shortages produced a downward 1.2 and therapies become more effective. Table 6: Overview of the World Economic Outlook Projections (Percent change, noted otherwise) Difference from October Projections 2021 2021 (Estimate) 2022 2023 2022 2023 World Output 5.9 4.4 3.8 –0.5 0.2 Advanced Economies 5 3.9 2.6 –0.6 0.4 Emerging Market and 6.5 4.8 4.7 –0.3 0.1 Developing Economies World Trade Volume 9.3 6 4.9 –0.7 0.4 (goods and services) Advanced Economies 8.3 6.2 4.6 –0.7 0.6 Emerging Market and 11.1 5.7 5.4 –0.7 0 Developing Economies Further, with respect to External Sector outlook of trade India’s Merchandise Trade developments during growth, global trade is expected to moderate in 2022 and 2019-20, 2020-21, 2020-21 (April-December) and 2021- 2023, in line with the overall pace of the expansion. 22 (April-December) Assuming that the pandemic eases over 2022, supply As per the data of Department of Commerce, the chain problems are expected to abate later in the year. developments in India’s merchandise trade during 2019- The accompanying moderation in global goods demand 20, 2020-21, 2020-21 (April-December) and 2021-22 will also help reduce imbalances. Cross-border services (April-December) may be seen at Table 7. trade — particularly tourism — is expected to remain subdued. xIntroduction Table 7: India’s Merchandise Trade Performance (Values in US$ billions) Change 2019-20 2020-21 Change 2021-22 (Apr- 2019-20 2020-21 2020-21 over (Apr- (Apr- Dec) over 2020-21 2019-20 Dec) Dec) (P) (Apr-Dec) Total Trade 788.1 686.2 -12.9 464.1 745.2 60.6 Total Exports 313.4 291.8 -6.9 201.4 301.4 49.7 Total Imports 474.7 394.4 -16.9 262.8 443.8 68.9 POL Imports 130.6 82.7 -36.7 54.0 118.3 119.2 Non POL 344.2 311.8 -9.4 208.8 325.6 55.9 Imports Trade Balance -161.3 -102.6 -36.4 -61.4 -142.4 132.1 Source: Department of Commerce, Ministry of Commerce and Industry. Note: P: Provisional. It may be seen from table 7 above that the B.1.b Foreign merchandise trade deficit had declined to US$ 102.6 Portfolio Investment 7.6 4.3 billion in 2020-21 from US$ 161.3 billion in 2019-20. B.2) Loans -1.1 10.4 During 2021-22 (April-December), trade deficit increased B.2.a) External to US$ 142.4 billion from US$ 61.4 billion in 2020-21 Assistance 6.0 1.4 (April-December). B.2.b) Commercial Developments in Balance of Payments during 2021 Borrowings (MT & LT) -5.1 4.7 (April-September) B.2.c) Short Term As per the Press Release of Reserve Bank of India, Credit to India -2.0 4.3 the developments in India’s Balance of Payments 2020- B.3) Banking Capital -9.0 4.4 21 (April-September) and 2021-22 (April-September) may be seen at Table 8. B.4) Rupee Debt Service -0.1 -0.1 Table 8: Major Items of India’s Balance of Payments B.5) Other Capital -4.0 25.4 (US$ Billion) C) Errors and Omissions -0.2 0.5 Year / Item (Net) 2020-21 H1 2021-22 H1 (P) D) Overall Balance 51.4 63.1 A. Current Account 34.3 -3.1 E) Foreign A 1 Merchandise Exchange Reserves Trade Balance -25.8 -75.1 (Increase - / A 1 a Merchandise Decrease +) -51.4 -63.1 Exports 127.8 202.3 Source : RBI. P : Provisional. A 1b Merchandise Imports 153.6 277.4 (A) Current Account A 2. Invisibles 60.1 72.1 India recorded a current account deficit of 0.2 per A 2.a) Services 41.8 51.4 cent of GDP in H1:2021-22 as against a surplus of 3.0 per cent in H1:2020-21 on the back of a sharp increase A 2.b) Transfers 35.4 37.9 in the trade deficit. Net invisible receipts were higher in A 2.c) Income -17.1 -17.2 H1:2021-22, on account of higher net receipts of services B) Capital Account 17.3 65.6 and private transfers. B.1) Foreign (B) Capital/Financial Account Investment 31.5 25.4 In H1: FY 22, net capital flows more than tripled to B.1.a) Foreign Direct US$ 65.6 billion (4.5 per cent of GDP) over those in H1: Investment 23.9 21.2 FY 21, on the back of continued inflow of foreign xiAnnual Report 2021-2022 investment, rise in loans mainly external commercial level as at end of the previous quarter. The short-term borrowings (ECBs), banking capital and other capital trade credit, the third largest component, at US$ 97.4 (inclusive of SDR allocation of US$ 17.9 billion by the billion continued to contract. Together, these three IMF). components constitute 77.2 per cent of total external debt as at end-September, 2021. IMF (SDRs) at US$ 23.3 Net capital flows remained volatile yet witnessed billion rose by as much as US$ 17.6 billion (310.8 per y-o-y and sequential growth in both quarters of 2021-22. cent) over the level as at end-June 2021, primarily While the capital flows rose in Q1: FY 22 mainly on reflecting additional SDR allocation on August 23, 2021. account of robust foreign direct investment on y-o-y basis, it increased further in Q2: FY 22 mainly due to the increase Climate Change Finance in FPI, ECBs and allocation of special drawing right by Performance and achievements under the key IMF. Net FDI inflows at US$ 21.2 billion in H1:2021-22 flagship programmes were lower than US$ 23.9 billion in H1:2020-21. Portfolio Climate Change is one of the most compelling global investment recorded a net inflow of US$ 4.3 billion in challenges. India submitted its Nationally Determined H1:2021-22 as compared with US$ 7.6 billion a year ago. Contribution (NDC) under the Paris Agreement on a “best In H1:2021-22, there was an accretion of US$ 63.1 billion effort basis” keeping in mind the developmental to the foreign exchange reserves (on a BoP basis). imperatives of the country. In its NDC, India aimed to Foreign Exchange Reserves reduce its emission intensity of GDP by 33 to 35 per cent There was a massive increase in India’s foreign below 2005 levels by the year 2030; 40 per cent of exchange reserves during 2021-22. The forex reserves cumulative electric power installed capacity would be from stood higher at US$ 633.6 billion as at end-December non-fossil fuel sources by 2030; and increase its forest 2021, than US$ 577.0 billion as at end-March 2021. cover and additional carbon sink equivalent to 2.5 to 3 However, the import cover of India’s foreign exchange billion tons of carbon dioxide by 2030. The implementation reserves declined to 13.2 months at end-December 2021 of NDC effectively commenced on 01.01.2021. India’s from 17.4 months at end-March 2021 as merchandise NDC clearly states that finance is a critical enabler of imports increased with pick-up in domestic economic climate change action. activity. As at end-November 2021, India was the fourth India’s third Biennial Update Reports (BUR) largest foreign exchange reserves holder in the world after submitted to the UNFCCC in 2021 reports that during China, Japan and Switzerland. 2005-2016, the country had reduced emission intensity Exchange Rate of its GDP by 24 per cent. According to the India State of Forest Report 2021 released in January 2022, the total Indian rupee depreciated by 4.5 per cent (y-o-y carbon stock in the country’s forests is estimated to be basis) against US dollar in 2020-21. Although the rupee 7,204 million tonnes, and the carbon stock in forest has exhibited movements in both directions against US dollar increased by 79.4 million tonnes as compared to the last during April-December, 2021, it depreciated by 3.4 per assessment of 2019. According to the Central Electricity cent in December 2021 over March 2021. The Authority, as on 31st December 2021, the share of non- depreciation of the rupee, however, was modest as fossil sources in installed capacity of electricity generation compared with its emerging market peers, such as was 40.2 per cent. Turkish lira, Argentine Peso, Thai baht, and Philippine In the 26th version of the Conference of Parties peso. The rupee appreciated against euro, Japanese yen (COP 26) under UNFCCC held in November 2021 at and pound sterling by 1.8 per cent, 1.3 per cent and 0.6 Glasgow, United Kingdom, the Hon’ble Prime Minister per cent, respectively, in December 2021 over March has announced an ambitious target for India based on 2021. five nectar elements – Panchamrit, to deal with climate External Debt change. These include: (i) attaining 500 GW non-fossil India’s external debt as at end-September 2021, energy capacity by 2030; (ii) 50 per cent energy mix estimated at US$ 593.1 billion, grew by US$ 22.3 billion comprising renewable energy by 2030; (iii) reducing total (3.9 per cent) over the level as at end-June 2021. projected carbon emissions by one billion tonnes from Excluding the valuation gains due to the appreciation of now onwards till 2030; (iv) reducing carbon intensity of the US dollar, the increase in external debt would have its economy by less than 45 percent by 2030; and (v) been US$ 23.7 billion, instead of US$ 22.3 billion. achieving Net Zero by 2070. Commercial borrowings, the largest component of India’s statement at COP 26 had noted that external debt, at US$ 218.8 billion, recorded a quarter- substantial scaling up of climate action would require over-quarter (q-o-q) positive growth of 2.5 per cent over greater resources and low-cost climate technologies from the level a quarter ago. The NRI deposits, the second the developed countries. The year 2020 was supposed largest component, at US$ 141.6 billion were at the same to be the year by which developed country Parties were xiiIntroduction to fulfill the goal of jointly mobilizing US$ 100 billion. This on the capital position as on September 30, 2021, all essential component in the climate negotiations need to Public Sector and Private Sector banks maintained the be adhered to by developed countries to bring balance Capital Conservation Buffer (CCB) well over 2.5 per cent. to the Paris architecture. COP 26 noted with serious SCBs’ annualised return on assets (RoA) improved concern the gap in relation to the fulfilment of the goal of from 0.6 per cent at end-September 2020 to 0.8 per cent developed country Parties to mobilize jointly US$ 100 at end-September 2021, while their annualised return on billion per year by 2020. Under the Glasgow Climate Pact, equity (RoE) improved from 7.7 per cent to 9.0 per cent COP 26 urged developed country Parties to fully deliver during the same period. The RoA and RoE for PSBs on the US$ 100 billion goal urgently and through to 2025, became positive in June 2020 and continued to be positive and emphasized the importance of transparency in the for the period ending September 2021, after recording implementation of their pledges. In addition, COP 26 set negative profitability ratios during March 2016 to March up an adhoc work program to deliberate on the new 2020. collective quantified goal with the view to set the new The net profit (profit after tax) for PSBs increased collective quantified goal by 2024. from 14,688 crore during first half of 2020-21 to 31,144 e-Governance Activities crore during first half of 2021-22. Similarly, the net profit For matters related to climate change finance, the for private sector banks increased from 32,762 crore to e-file platform is used in almost all cases since 2018. 38,234 crore during the same period. Overall, for SCBs, Old physical files also been converted to electronic form. the net profit increased from 59,426 crore at end- September 2020 to 78,729 crore at end-September 2021. Banking Sector Credit-growth The Gross Non-Performing advances (GNPA) ratio (i.e. GNPAs as a percentage of Gross Advances) and The credit growth had been declining since 2019. Net Non-Preforming (NNPA) ratio of Scheduled The credit growth was 5.3 per cent at beginning of April Commercial Banks (SCBs) continued to decline since 2021 and started to increase since then, but was still 2018-19. GNPA ratio of SCBs decreased from 7.5 per modest and stood at 7.3 per cent as on 17th December cent at end September 2020 to 6.9 per cent at end- 2021. However, the credit growth has picked up sharply September 2021. NNPA ratio of SCBs was 2.2 per cent in December to 9.2 per cent as on 31st December 2021. at end-September 2021. In 2021-22, the risk capital (i.e. money raised from capital markets) has so far been more important than the banks Restructured Standard Advances (RSA) ratio of in providing finance to the revival. SCBs increased from 0.4 per cent to 1.5 per cent during the same period. Overall, the Stressed Advances ratio of On a year-on-year (y-o-y) basis, non-food bank SCBs increased from 7.9 per cent at end-September credit registered a growth of 9.3 per cent in December 2020 to 8.5 per cent at end-September 2021. Various 2021 as compared to 6.6 per cent a year ago. Credit to COVID-19 related dispensations/moratoriums provided agriculture and allied activities continued to perform well, with respect to asset quality contributed towards increase registering a robust growth of 14.5 per cent in December in restructured assets and as a result, stressed advances 2021 as compared to 7.7 per cent in December 2020. ratio for the banking system increased at end-September Credit growth to industry improved noticeably to 7.6 2021. Overall, the banking system appears to have per cent in December 2021 from 0.4 per cent in December weathered the pandemic shock well even if there is some 2020. Size-wise, credit to medium industries registered lagged impact still in the pipeline. high double-digit growth of 86.5 per cent in December GNPA ratio of Public Sector Banks (PSBs) 2021 as compared to 17.1 per cent last year. Credit growth decreased from 9.4 per cent at end-September 2020 to to micro and small industries accelerated to 20.5 per cent 8.6 per cent at end-September 2021. The Stressed in December 2021 from 1.3 per cent a year ago. Credit Advances ratio of PSBs increased marginally from 10.0 to large industries recorded a growth of 1.3 per cent in per cent to 10.1 per cent during the same period on December 2021 against a contraction of 0.5 per cent a account of rise in restructured advances. year ago. Within industry, credit growth to ‘all The Capital Adequacy Ratio has continued to engineering’, ‘beverage & tobacco’, ‘chemicals & improve since 2015-16. Capital to Risk weighted Asset chemical products’, ‘infrastructure’, ‘leather & leather Ratio (CRAR) of SCBs increased from 15.84 per cent at products’, ‘mining & quarrying’, ‘petroleum, coal product end-September 2020 to 16.54 per cent at end-September & nuclear fuels’, ‘rubber plastic & their products’, ‘textiles’ 2021 on account of its improvement for both public and and ‘wood & wood products’ accelerated in December private sector banks. The improvement in CRAR levels 2021 as compared to the corresponding month of the of PSBs was due to capital infusion by the government previous year. However, credit growth to ‘basic metal & alongside fund raising from the markets, while private metal products’, ‘cement & cement products’, sector banks tapped capital from market sources. Based ‘construction’, ‘food processing’, ‘gems & jewellery’, ‘glass xiiiAnnual Report 2021-2022 & glassware’, ‘paper & paper products’ and ‘vehicles, the same time it also ensured adequate liquidity in the vehicles parts & transport equipment’ decelerated/ system in consonance with the accommodative monetary contracted. policy stance to support growth. The liquidity conditions remained in surplus in 2021-22. Credit growth to services sector accelerated to 10.8 per cent in December 2021 from 8.0 per cent a year ago, The gradual normalisation of liquidity management mainly due to significant improvement in credit growth to operations in sync with the revised liquidity management ‘NBFCs’. Credit to the personal loans segment continued framework was the key feature of liquidity management to expand at a robust rate and grew by 14.3 per cent in in 2021-22. The 14-day Variable Rate Reverse Repo December 2021 vis-à-vis 8.8 per cent a year ago. Housing (VRRR) auctions were deployed as the main operation remained the prime driver of overall growth in the under the Liquidity Adjustment Facility (LAF). Further, the segment. cash reserve ratio (CRR) which was reduced by 100 basis points (bps) in March 2020, was gradually raised to its Monetary Developments pre-pandemic level of 4 per cent by May 2021. To manage The Monetary Policy Committee (MPC) maintained the liquidity conditions, variable rate reverse repo auctions status quo on the policy repo rate during April to December of varying maturities were conducted apart from the 2021 after a substantial cut of 115 basis points (bps) VRRR operations conducted every fortnight. The size of during February-May 2020 and a cumulative 250 basis 14 day VRRR was gradually enhanced to 7.5 lakh crore points cut since February 2019. The repo rate which by end December 2021. During 2021-22 so far, average currently stands at 4 per cent is lowest in the last decade. daily net absorptions under LAF amounted to 6.7 lakh Since May 2020, the policy rates have been on hold along crore. with an accommodative monetary policy stance with During 2021-22 so far, due to the surplus liquidity forward guidance that this stance will continue as long conditions, call money rate generally traded below the as necessary to revive growth on durable basis while reverse repo rate - the lower bound of the liquidity ensuring that inflation remains within the target adjustment facility (LAF) corridor during the year. The (Consumer Price Index inflation of 4 per cent within a weighted average call rate (WACR) - the operating target band of +/- 2 per cent). of monetary policy - traded 13 bps below the floor of the In the initial meetings of 2021-22, MPC noted that corridor on an average during the year so far. It was only while the inflation has hovered above the upper tolerance in November 2021, that the WACR drifted back slightly band for some months, it was largely driven by adverse within the corridor. supply shocks which were expected to be transitory. The With RBI becoming the major counterparty for outlook for aggregate demand was progressively banks, there was a shrinkage in interbank trading activity improving but capacity utilisation rates were low. The - average daily volume in the call money market declined contact intensive services were lagging behind and the to 9,077 crore in December 2021 from 10,126 crore in recovery was uneven and required policy support. In the March 2021. Interest rates on longer-term money market latest MPC meeting in December 2021, the committee instruments like 91-day Treasury Bills (T-Bills), 3-month pointed out that the outlook was uncertain owing to global Certificates of Deposit (CDs) and Commercial Papers spillovers, potential resurgence in COVID-19 infections (CPs) generally traded above the reverse repo rate during and divergences in policy actions and stances across the year. the world with inflationary pressures increasing across Developments in the G-Sec Markets economies. Accordingly, the MPC decided to continue monitoring the inflationary pressures, keep the policy repo The yields on 10-year G sec which had reached 8.2 rate unchanged at 4 per cent and persist with the per cent on 26th September 2018 reduced substantially accommodative stance. to reach 5.75 per cent in June 2020. It has since then increased to stand at 6.45 per cent as on 31st December Liquidity Conditions and its Management 2021. Liquidity has remained in surplus in the system since Trading in the 10-year G-sec started on a positive mid-2019 in sync with the easing of monetary conditions. note in the financial year 2021-22, supported by the The liquidity conditions were further eased during the year 2020-21 after the covid pandemic, and RBI has since Reserve Bank’s G-SAP, continued accommodative then maintained ample surplus liquidity in the banking stance domestically and dovish monetary policy stance system to support growth. In 2021-22 so far, the RBI adopted by major economies around the world. In the resumed normal liquidity operations in a phased manner beginning of first quarter (Q1) of 2021-22, yield on 10- and engaged in rebalancing liquidity from passive year G-Secs stood at around 6.26 per cent. The 10- year absorption under fixed rate reverse repo under its Liquidity yield reached a low of 5.96 per cent (intra-day) in May Adjustment Facility (LAF) to market based reverse repo 2021. The announcement of G-SAP 2.0 amounting to auctions (like Variable Rate Reverse Repo (VRRR)). At 1.2 lakh crore on 4th June 2021 and the US federal open xivIntroduction market committee’s decision on 15th June 2021 to Services Sector continue with the easy monetary policy stance kept the The services sector contracted by 7.8 per cent Year yields near the 6 per cent mark. on Year (YoY) in 2020-21 (Table 9). This decline was In the beginning of second quarter(Q2) of 2021-22, driven by a sharp contraction of 20.2 per cent YoY in the yields started to rise. The announcement of phased sub-sector ‘Trade, hotels, transport, communication & increase in the quantum of VRRR operations on 6th services related to broadcasting’. The sub-sector ‘Public August 2021 and shift in market sentiments to price in administration, defence & other services’ which includes possibility of change in interest rate cycle sometime ahead expenditure by the government on one hand and services also led to some hardening of yields up to 6.26 per cent. such as health, education, recreation etc, on the other, The successively lower consumer price index (CPI) prints, contracted by 5.5 per cent , whereas the ‘Financial, real inclusion of the 10-year benchmark paper in the G-SAP estate & professional services’ sub-sector grew by 2.2 auctions and no additional borrowing by government for per cent YoY in 2020-21. In 2021-22, services sector grew the second half of 2021-22 helped keep yields in check. (YoY) by 8.6 per cent with growth of 11.6 per cent in sub- The yield on benchmark security stood at 6.22 per cent sector ‘Trade, hotels, transport, communication & at the end of second quarter. In the third quarter (Q3) of services related to broadcasting’, 12.5 per cent in ‘Public 2021-22, rise in US treasury yields and rising crude prices administration & other services’, 4.3 per cent in ‘Financial, led the yields to inch higher to 6.45 per cent at end- real estate & professional services’ (Table 9). December 2021. Table 9: Services Sector Performance Share in GVA Growth (YoY) (per cent) (per cent) Sector 2021-22 2020-21 2021-22 2021-22 (2nd AE) (1st RE) (2nd AE) Q1 Q2 Q3 Total Services 52.8 -7.8 8.6 10.5 10.2 8.2 (Excluding construction) Trade, hotels, transport, 16.6 -20.2 11.6 34.3 9.5 6.1 communication & services related to broadcasting Financial, real estate & 21.4 2.2 4.3 2.3 6.2 4.6 professional services Public administration, 14.8 -5.5 12.5 6.3 19.5 16.8 defence & other services* Source: Ministry of Statistics and Programme Implementation. Note: Share in GVA is in current prices and growth in GVA is at constant 2011-12 prices. *: Other services include Education, Health, Recreation and other personal services. RE : Revised Estimates. PE : Provisional Estimates. AE : Advance Estimates. Services sector is the largest recipient of FDI inflows 2. Department of Expenditure in India. According to the World Investment Report 2021 by the UN Conference on Trade and Development The Department of Expenditure is the nodal Department for overseeing the public financial (UNCTAD), India was the fifth-largest recipient of Foreign management system in the Central Government and Direct Investment (FDI) in 2020 improving its rank by four matters connected with state finances. It is responsible places, from ninth position in 2019. In 2020-21, India for the implementation of the recommendations of the registered highest ever annual FDI inflows of US$ 81.97 Finance Commission and Central Pay Commission, billion. The country has received US$ 43.12 billion FDI monitoring of audit comments/observations, preparation inflows in the first six months of 2021-22. FDI equity of Central Government Accounts. It further assists Central inflows, i.e., FDI inflows minus re-invested earnings, were Ministries/Departments in controlling the costs and prices US$ 31.15 billion during April-September 2021, growing of public services, reviewing system and procedure to by 3.8 per cent over the corresponding period last year. optimize outputs and outcomes of public expenditure. The xvAnnual Report 2021-2022 principal activities of the Department include overseeing Dhan Yojana (PMJDY), Social security schemes namely the expenditure management in the Central Ministries/ Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Departments through the interface with the Financial Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Advisors and the administration of the Financial Rules/ Pension Yojana (APY) & Pradhan Mantri Vaya Vandana Regulations/Orders, pre-sanction appraisal of major Yojana (PMVVY) and credit schemes namely Pradhan schemes/projects, handling bulk of the central budgetary Mantri Mudra Yojana (PMMY) & Stand Up India (SUI). resources transferred to State. The Department issues policy / guidelines for The business allocated to the Department of Public Sector Banks (PSBs), Regional Rural Banks, Expenditure is carried out through its Personnel & Cooperative Banks, Public Sector Insurance Companies Establishment Division, Public Finance-State and Public (PSICs) and Financial Institutions (FIs) through legislative Finance Central Divisions, Office of Chief Advisor Cost, and other administrative measures. It also monitors the Office of Controller General of Accounts and Central performance of these organizations. DFS also deals with Pension Accounting Office. The Department has under legislative and other issues pertaining to the Debt its administrative control the Arun Jaitley National Institute Recovery Tribunals (DRT) / Debt Recovery Appellate of Financial Management (AJNIFM), Faridabad, which Tribunals (DRAT), regulatory bodies such as the is an autonomous body. Insurance Regulatory and Development Authority of India (IRDAI), the Pension Fund Regulatory and Development 3. Department of Revenue Authority (PFRDA) and certain legislative matters related to Reserve Bank of India (RBI). The Department of Revenue exercises control in respect of revenue matters relating to Direct and Indirect The Department is also responsible for Union taxes. The Department is also entrusted with the appointment of key functionaries such as Governor / administration and enforcement of regulatory measures Deputy Governor of Reserve Bank of India, Chairman / provided in the enactments concerning Goods and Members of IRDAI and PFRDA, Chairman / Managing Services Tax (GST), Central Sales tax, Stamp duties and Director and Chief Executive Officers (MD & CEOs), other relevant fiscal statutes. Control over production and Executive Directors (EDs), Chairman cum Managing disposal of opium and its products is vested in this Directors (CMDs), Non-official Directors etc. on the Board Department. Apart from this, Directorate of Enforcement, of public sector banks, Insurance companies and FIU-IND, GSTN, CBN, CCF, CEIB, NIPFP are under the Financial Institutions. Matters relating to international administrative control of Department of Revenue. banking relations are also dealt with by the Department. 4. Department of Investment and The Department played a vital role by providing Public Asset Management seamless continuous financial services during lockdown due to COVID-19 pandemic. The Department also continued to take Covid-19 related measures to mitigate The Department of Disinvestment was set up as a the impact of Covid and boost the economy e.g. Credit separate Department on 10th December, 1999 and was Guarantee Scheme for Micro Finance Institutions later renamed as Ministry of Disinvestment from 6th (CGSMFI), Loan Guarantee Scheme for Covid affected September, 2001. From 27th May, 2004, the Department Sectors (LGSCAS), Emergency Credit Line Guarantee of Disinvestment is one of the Departments under the Ministry of Finance. Scheme (ECLGS), additional working capital refinance facility through NABARD, Kisan Credit Card Saturation The Department of Disinvestment has been re- drive, Interest Subvention to PMMY Shishu Loans etc. named as Department of Investment and Public Asset Management (DIPAM) with effect from 14th April, 2016. The information on number of Banks, Insurance Companies and Financial Institutions are as under. 5. Department of Financial Services Scheduled Commercial Banks (as on 31.12.2021) As per Allocation of Business Rules (AOBR), Public Sector Banks 12 functions of Department of Financial Services(DFS) inter- Private Sector Banks 21 alia include matters pertaining to Banking, Insurance, Small Finance Banks 11 Pension Reforms, and Financial Institutions. The Department of Financial Services (DFS) oversees several Payment Banks 4 key programs / initiatives and reforms of the Government Regional Rural Banks 43 concerning the Banking Sector, the Insurance Sector and Foreign Banks 46 the Pension Sector in India. The key flagship schemes TOTAL 137 being currently run / managed by the Department include Source : RBI the Financial Inclusion scheme - Pradhan Mantri Jan xviIntroduction Insurance Companies in India 2.1 Coordination of matters of general policy affecting (As on 31.01.2022) all Public Sector Enterprises. Private Public Total No. of 2.2 Composition of Boards of CPSEs. Sector Sector Insurers 2.3 Categorisation of Central Public Sector Enterprises (Public & including conferring 'Ratna' status. Private) Life Insurers 23 1 24 2.4 Matters relating to Permanent Machinery of Arbitration for the Public Sector Enterprises. General insurers 20 6 26 Stand-alone Health 5 0 5 2.5 Wage policy & manpower rationalization of CPSEs. Insurers 2.6 Evaluation and monitoring the performance of Public Reinsurers 11 1 12 Sector Enterprises, including the Memorandum of TOTAL 59 8 67 Understanding mechanism. Source: IRDAI 2.7 Review of capital projects and expenditure in Central Public Sector Enterprises. Financial Institutions (as on 31.12.2021) 2.8 Survey of Public Enterprises. 1 National Bank for Agriculture and Rural Development (NABARD) 2.9 Counselling, training and rehabilitation of employees of Central Public Sector Enterprises. 2 India Infrastructure Finance Company Ltd. (IIFCL) 2.10 Rendering advice relating to revival, restructuring 3 Export-Import Bank of India (EXIM) or closure of Public Sector Enterprises including the 4 Industrial Finance Corporation of India (IFCI) mechanisms therefor. 5 Small Industrial Development Bank of India 2.11 Matters relating to Standing Conference of Public (SIDBI) Enterprises. 6 National Housing Bank (NHB) 2.12 Matters relating to International Center for Public 7 National Bank for Financing Infrastructure and Enterprises. Development (NaBFID) 3. Organizational Structure: - 6. Department of Public Enterprises Department of Public Enterprises is headed by Secretary to the Government of India who is assisted by an 1. Introduction : - establishment with an overall sanctioned strength of 116 In their 52nd Report, the Estimates Committee of officers/personnel. The organizational structure of DPE 3rd Lok Sabha (1962-67) stressed the need for setting is at Annexure-1. The Department has the following up a centralized coordinating unit, which could also constituent Divisions: make continuous appraisal of the performance of public 3.1 Policy Division-I enterprises. This led to the setting up of the Bureau of Public Enterprises (BPE) in 1965 in the Ministry of Policy Division-I deals with the issues related to Finance. Subsequently, as a result of the reorganization management of CPSEs including the Organizational of the Ministries/Departments of the Union Government Structure; Composition of Boards; Categorization of in September, 1985, BPE was made part of the Ministry CPSEs to appropriate Schedule; and conferring 'Ratna of Industry. In May, 1990, BPE was made a full-fledged Status' as per the Ratna scheme of Government of India. Department known as the Department of Public It also issues guidelines for below Board level employees Enterprises (DPE). Before coming under the Ministry relating to personnel policies, service matters of CPSEs of Finance vide Cabinet Secretariat Notification dated like reservation, voluntary retirement etc. The Division 6th July, 2021, Department of Public Enterprises was also handles matters related to commercial disputes of part of the Ministry of Heavy Industries & Public CPSEs. Enterprises. 3.2 Wage Cell 2. Functions: Wage Cell deals with the policy relating to pay The following subjects are being dealt by DPE: revision of CPSE executives at Board as well as below xviiAnnual Report 2021-2022 Board level and non-unionized supervisors, and issues as and when requested by C&AG. The compilation of broad guidelines for wage settlement negotiations in case DPE guidelines is also part of Survey Division. of workmen in CPSEs. Wage Cell also issues DA orders 3.5 Policy Division-II for both IDA employees and CDA employees of the CPSEs. Policy Division-II looks after all procurement related matters of CPSEs including MSMEs and GeM 3.3 MoU Division procurement. The Division also handles CSR (Corporate MoU Division deals with the implementation of Social Responsibility) related matters of CPSEs and Memorandum of Understanding (MoU) framework for the implements the CRR (Counselling, Retraining and purpose of performance evaluation of CPSEs. The Redeployment) and RDC (Research, Development and Consultancies) schemes of the Department. division also monitors and compiles the information on CAPEX incurred by select CPSEs and their compliance 3.6 Disinvestment Division on Corporate Governance parameters. Disinvestment Division is responsible for the 3.4 Survey Division implementation of new PSE Policy in Non-Strategic Sector for identification of CPSEs for closure or privatisation in Survey Division collates information on important physical consultation with administrative ministries/departments, and financial attributes of all CPSEs into a comprehensive NITI Aayog etc. annual report "Public Enterprises Survey" and places the same in both the Houses of Parliament every year. 3.7 Administration and Coordination Division The Survey division also facilitates the laying of the The Division handles all administrative and Reports of the Comptroller and Auditor General (C&AG) coordination matters of DPE relating to personnel of India (Commercial) in the Parliament. It also follows management, maintenance of personnel records up with the administrative Ministries / Departments for including leave, salary, service book and Parliamentary submission of Action Taken Notes (ATN) on Audit Paras matters. xviiiChapter - I Department of Economic Affairs I Department of Economic Affairs 1. Economic Division 1.5 The work of the Economic Division is organized 1.1 The Economic Division tenders expert advice to under the following units: the Government on important issues of economic policy.  Macro The Division monitors economic developments-domestic and external and advises on policy measures relating to  Public Finance macro management including agriculture, industry and  Agriculture and Food Management infrastructure sectors of the economy. As part of its regular activities, the Economic Division brings out the Economic  Industry and Infrastructure Survey annually, which is laid before both the Houses of  Social Infrastructure, Employment and Parliament one day before the presentation of the Union Human Development Budget. 1.2 The Economic Survey provides a comprehensive  Trade and Balance of Payments overview of important developments in the economy. It  External Debt Management Unit also analyses recent economic trends and provides an in-depth appraisal of policies. Over the years, the  Services Sector Economic Survey has acquired the status of an  Prices authoritative source and a useful compendium of the annual performance of the Indian economy. Further, the  Money and Banking Fiscal Responsibility and Budget Management (FRBM)  Climate Change Finance Act, 2003 requires the Ministry of Finance to review every quarter the trends in Receipts and Expenditure in relation  Coordination to the Budget and lay it before both the Houses of  IES Cadre Unit Parliament. In addition, at the end of first quarter and third quarter a Macro-Economic backdrop statement is Macro Unit prepared and provided to the Budget Division for The Macro unit, Economic Division is primarily incorporating in the review of quarterly receipts and responsible for : (a) Monitoring macroeconomic expenditure. parameters, such as, GDP, savings and investment and 1.3 The Division also brings out every month an analysis of macroeconomic trends; (b) Preparation of abstract entitled “Monthly Economic Report”, which gives Economic Survey (c) Preparation of Monthly Economic the latest available data on the key sectors of the Report; (d) Country coordination for Special Data economy. The Division prepares, from time to time briefs Dissemination Standard (SDDS); (e) Updating of the on the performance of the infrastructure sector, agriculture and industrial production, trends in tax collection, balance National Summary Data Page of the economy for web- of payments and monetary situation. It also monitors the post in the Ministry of Finance’s website; (f) Annual price situation on a weekly basis. In addition, the Division updating of metadata in SDDS; (g) Preparation of State undertakes short term forecasting of key economic of Economy brief, giving an overview of the current variables. economic situation; (h) Preparation of briefs, material/ 1.4 As part of its advisory functions, the Economic speeches for G-20, World Bank, IMF and other meetings; Division prepares analytical notes and background papers (i) Framing replies of parliament questions. on important policy issues and provides briefs for Budget Related Work: (a) Preparation of Macro-Economic meetings of the Consultative Committees and Working Framework Statement for the Union Budget every year; Groups set up by the Government. The officers of the (b) Macroeconomic backdrop for the statement on half Economic Division participate in consultations with various yearly review of the trends in receipts and expenditure in missions from international institutions such as relation to the budget at the end of first half and second International Monetary Fund (IMF), the World Bank and half of financial year; (c) Projection of GDP for giving to the World Trade Organisation (WTO) etc. The Division works in close cooperation with the Reserve Bank of India, the Budget Division before the preparation of budget the NITI Ayog, the Central Statistical Organisation, the Public Finance Unit Ministry of Commerce and Industry and the Economic Public finance unit is responsible for: (a) Economic and and Statistical Wings of their Ministries. An international Functional Classification of Central Government Budget; Seminar the 7th Delhi Economics Conclave-(2017) was (b) Statistical Album on Public Finance, including organized on 22.07.2017 wherein researchers, policy makers, industry leaders, bankers and economists & budgetary transactions of Centre, State and Union academicians from India and abroad participated. Territories; (c) Monitoring of Central fiscal parameters, 1Annual Report 2021-2022 such as, fiscal deficit, revenue deficit, aggregate human development; (b) Analysis of labour issues, expenditure; (d) Policies relating to central plan outlays, employment trends, health, education and other topics resources and expenditures; (e) Review of Fiscal position concerning social sector; (c) Examining/ Evaluating and analysis of fiscal issues; (f) Analysis relating to tax results of employment and unemployment surveys; (d) measures, direct and indirect tax proposals/ reforms; (g) Examine/ Appraise Cabinet Notes/CoS/EFC/ SFC/PIB/ Providing inputs towards Macro-Economic Framework CEE notes on labour and skill development including Statement for the Union Budget every year. various issues related to health, education, social Agriculture and Food Management Unit empowerment, gender issues, rural development etc. those received from the other Divisions in DEA; (e) Agriculture and Food Management unit is responsible for: Participation/membership of Standing Committee on (a) Providing policy advice on issues and matters related Labour Force Statistics; (f) Preparation of chapter on to Agriculture and Food Management; (b) Examining/ ‘Social Infrastructure and Employment’ for Annual Appraising Cabinet/ CCEA/ CoS/ EFC and other policy Economic Survey (Vol.-I & II); (g) Pre-budget meetings notes on fixing Minimum Support Prices (MSPs) for major with labour unions, civil society organizations, health, crops/crop insurance policy/ other agricultural policies welfare and women’s organizations/ experts etc.; (h) including those related to change duty structure; (c) Pre- Handling VIP/Parliament/Other references related to the Budget meetings with stakeholders in farm sector; (d) themes in social sector; (i) Occasional review/reports on Briefs for and appearances before the Parliamentary specific issues as and when required; (j) Organizing Standing Committee on Agriculture related issues; (e) workshops/inter-departmental meetings on specific Participation/Membership of Committees on related themes subjects like Private Entrepreneurs Guarantee (PEG) schemes of Food Corporation of India (FCI); (f) Analyzing Trade & Balance of Payments production and area sown in Rabi and Kharif crops; (g) (a) Monitoring and analyzing the developments in Occasional review/ reports on specific issues as and when India’s Trade and Balance of Payments (BoP) and required like “Incentivizing Pulses Production Through providing policy inputs/ briefs/ comments, etc., relating Minimum Support Price (MSP) and Related Policies”; (h) to same.(b)Analysis of recent trends and developments Periodical monitoring of progress of Area sown/ Monsoon/ in India’s trade and BoP which culminates into the External Rainfall distribution using inputs of the Crop Weather Sector Chapter published in Economic Survey. Watch Group (CWWG); (i)Analytical issues related to (c)Preparation of a monthly trade note based on press Public Distribution System (PDS), buffer stock norms and release of Department of Commerce for perusal of food security and MSP analysis like proportion of sales Secretary, DEA and Chief Economic Adviser below MSP in several markets during the procurement (CEA).(d)Matters relating to Short-term Balance of season; (j) Analysis of issues related to Allied sectors Payments (STBoP) Monitoring Group. (e)Economic like dairy sector, fisheries, forestry and food processing; Activity tracker: Data maintenance and updation of India’s (k) Preparation of the Chapter on ‘Agriculture and Food key trade and BoP indicators on weekly/monthly/ Management’ for Annual Economic Survey (Volume 1 and quarterly/annual basis as per availability of data. (f)Policy Volume 2); (l) Handling VIP/ Parliament/ Other references inputs for Hon’ble FM, MOS, Secretary on: (i) and Private Member Bills related to agriculture and food Parliamentary debates and questions related to trade and management; (m) Offer comments on Studies/ MoUs/ BoP (ii) Speeches related to important economic International Agreements/ Income tax exemptions to events(iii)Leading economic discussions at bilateral and International Organizations dealing with agriculture & food multilateral forums such as G-20, World Bank, IMF, management OECD, concerning India’s trade & BoP position. Industry and Infrastructure Unit External Debt Management Unit Industry and Infrastructure Unit advises the Government (a) Publication of an Annual Status Report on India’ on policy issues relating to Industry at both macro and External Debt, based on inputs from relevant stakeholders like Reserve Bank of India (RBI) Aid, Accounts & Audit sectoral levels. The unit regularly monitors and reviews Division, Ministry of Defence, SEBI, etc. (b)Publication industrial growth and policies related to public sector. The of Quarterly Report on India’s External Debt for the two Unit is also responsible for monitoring trends in production quarters ending September and December, through of core infrastructure industries. It undertakes analysis collection and compilation of data from different of developments in infrastructure sector, renders advice stakeholders. The remaining two quarters’ reports are on infrastructure sector policy issues published by RBI. (c)Collection, compilation and provision Social Infrastructure, Employment & Human of inputs on India’s External Debt data on quarterly basis Development Unit to World Bank for its centralized database called, ‘Quarterly External Debt Statistics (QEDS)’, in compliance The unit is responsible for: (a) Providing policy advice on with IMF’s Special Data Dissemination Standard (SDDS) issues related to social infrastructure, employment and 2Department of Economic Affairs I requirements. (d) Dissemination of India’s defence debt environment related meetings of various national and data on a quarterly basis to all relevant stakeholders. international fora. It helps shape the firming up of India’s (e) Monitoring and analyzing the developments in India’s stand on financing issues related to climate change and External debt and providing policy inputs/ briefs/ sustainable development in fora like United Nations comments, etc., relating to same. (f) Analysis of recent Framework Convention on Climate Change (UNFCCC), trends and developments in India’s external debt and etc. It is vested with the task of preparing submissions incorporate a section on the same in the External Sector on behalf of India as well as assessing submissions of Chapter published in Economic Survey. (g)Issues relating other member countries in these fora. The Unit frames to foreign exchange reserves and exchange rate (h) inputs on an on-going basis on issues related to National Policy inputs for Hon’ble FM, MOS, Secretary on: (i) Action Plan on Climate Change and on other emerging Parliamentary debates and questions related to external issues like definition of climate finance, new collective debt (ii) Leading economic discussions at bilateral and quantified goal on mobilization of finance from developed multilateral forums such as G-20, World Bank, IMF, to developing countries, innovative and affordable OECD, concerning India’s external debt sustainability. financing options for climate transition by preparing positions papers and analysis of technical issues and Services Unit policy options. The Unit is also responsible for preparing The unit is responsible for: (a) Preparing the Chapter on and finalizing the chapter on sustainable development Services Sector for the Economic Survey; (b) Monitoring and climate change for the Economic Survey. the performance of services trade; (c) Parliament Matters; The unit is headed by Economic Adviser (JS level).The (e) Comments on Notes related to trade in services, WTO work done by this unit is mainly of an advisory nature. negotiations in Services, etc. Currently, other officers engaged in the unit are at the Prices Unit level of Director, Deputy Director, and Economic Officer. The unit is responsible for: (a) Inflation monitoring based Coordination Unit on the following Price Indices: (i) Wholesale Price Index The unit is responsible for: (a) Internal administration and (WPI), base: 2011-12=100; (ii) Consumer Price Index coordination in Economic Division; (b) Organizing Finance (CPI)- Rural, Urban, Combined, base: 2012=100; (iii) Minister’s Pre-Budget meetings with various stake Consumer Price Index for Industrial workers (CPI-IW), holders; (c) Nomination of officers of Economic Division base: 2016=100; (iv) Consumer Price Index for for Foreign Deputation to OECD meetings and other Agricultural Labourers (CPI-AL), based on 1986-87=100; meetings and workshops; (d) Coordination with all Units (v) Consumer Price Index for Rural Labourers (CPI-RL), of Economic Division for publishing Economic Survey and based on 1986-87=100. (b) Price/inflation related issues: laying them before Parliament; (e) Organizing Delhi (i) issues related to domestic and international price Economic Conclave, the annual International Conference behavior; (ii) issues related to seasonal price behavior; on thematic issues; (f) Coordination of Parliament work, (iii) issues related to Price Policy and inflation RTI matters, VIP references, public grievances etc; (g) management; (iv) Preparation of Monthly Inflation All administrative matters of Economic Division, for Reports; (v) Drafting chapter on prices for pre-budget example transfer/posting of Officers of Economic Division Economic Survey. (c) Committees/ Working groups: (i) within Economic Division. Participation in the various committees on price indices (CPI, WPI and RESIDEX); (ii) Participation in Macro IES Cadre Unit financial monitoring group constituted under DEA; (iii) The unit is responsible for: (a) Career Management and Participation in the meeting of Committee of Secretaries Placement of Officers; (b) Direct Recruitment into IES on Review of prices of essential commodities. through Examination conducted by UPSC; (c) Examina- Money and Banking Unit tion Rules & Syllabus for IES Examination; (d) Promo- tion of Feeder Post Holder to Junior Time Scale (Entry The unit is responsible for: (a) Monitoring of money level) of IES; (e) IES (service) Rules and policy Matters market trends and developments in monetary policy; (b) pertaining to IES; (f) Promotions/ non-functional Up-gra- Monitoring of banking policy and aggregate trends in dations to various levels by conduction/ arranging meet- credit flows; (c) Fortnightly analysis of the monetary ings of the Departmental Promotion Committee; (g) Cadre parameters; (d) Monitoring yields on G-Sec/ Treasury Clearance for Deputation, study leave and other kinds of Bills; (e) Monitoring behavior of Call Money Rates and leave; (h) Empanelment of officers at various levels; (i) LAF operations; (f) Periodical updates on monetary policy Seniority List/ Civil list of IES Officers; (~) Seniority of and Quarterly Reviews of RBI. Officers in the Feeder Grade and Roster Management Climate Change Finance Unit of Induction Quota; (k) Training Programmes for In-Ser- The Climate Change Finance Unit serves as the nodal vices officers and Probationers based on training needs point on all financing matters related to climate change assessment for capacity building of officers; (l) Cadre in the Ministry of Finance and conveying inputs to Ministry Review and restructuring of IES; (m) Maintenance of of Environment Forest & Climate Change, including on APARs of IES officers; (n) Budget of IES Cadre, Annual G20 Climate Sustainability Working Group (CSWG), G2O Accounts etc.; (o) Court Cases, Vigilance Cases and Dis- Energy Transition Working Group (ETWG) and other ciplinary Matters; (p) Maintenance of IES website. 3Annual Report 2021-2022 2. Budget Division 2021-22 and connected Appropriation Bill was presented and passed by the Parliament. The Third Batch of 2.1 RESPONSIBILITIES Supplementary Demands for Grants 2021-22 will be laid 2.1.1 Budget Division is responsible for the preparation in Parliament in the month of March, 2022. of and submission to the Parliament, the Annual Budget 2.3 STATES SECTION: as well as Supplementary and Excess Demands for Grants of the Central Government and of States under 2.3.1 States Section is assigned the work relating to President’s Rule. The Division also deals with issues the following: relating to Public Debt, Market Loans of the Central  Release of States’ share of Central Taxes and Government and State Government’s borrowing and duties to State Governments as per approved lending, guarantees given by the Government of India recommendations of the Finance Commission. and the administration of Contingency Fund of India.  Work relating to the Constitution of the Finance Processing of proposals from other Ministries/ Commission and processing of its reports. Departments for re-appropriation of savings in a Grant where prior approval of the Ministry of Finance is required  Matters relating to financial provisions of various is also handled by Budget Division. The Division also States’ Re-organisation Acts, Monitoring and handles the issues pertaining to National Savings Institute review of repayment of Central loans and (NSI), Small Savings Schemes and National Defence payment of interest by State Governments. Fund. The work relating to Treasurer, Charitable  Processing and presentation of Budget and Endowment is also assigned to the Budget Division. Supplementary Demands for Grants to 2.1.2 Budget Division is assigned the matters relating Parliament in respect of States under President’s to Duties, Powers and Conditions of Service of the Rule. Comptroller and Auditor General of India including 2.3.2. Budget Division had, in consultation with Ministry submission of the Reports of the Comptroller and Auditor of Home Affairs, re-examined the recommendations of General of India relating to the accounts of the Union to 15th Finance Commission relating to release of Additional the President for being laid before Parliament, Central Assistance (ACA) through the National Disaster entrustment/re-entrustment of audit of various Response Fund (NDRF) and NDMF. With the approval autonomous bodies/organizations to the C&AG of India, of Cabinet, it has been decided that the earlier practice etc. followed during the period of 14th Finance Commission 2.1.3 The Budget Division is responsible for for releasing ACA to the States may be continued. The administration of “Fiscal Responsibility and Budget Explanatory Memorandum as to the Action Taken on the Management Act, 2003” which was brought into force recommendations relating to Disaster Related Grants w.e.f. 5th July, 2004. Statements of Fiscal Policy, Half made by the Finance Commission has been laid in both yearly Reviews including Mid-term Review and disclosure Houses of the Parliament on 17.12.2021. statements have been presented in Parliament in 2.4 PLANNING AND ALLOCATION SECTION: accordance with the requirements of the FRBM Act. 2.4.1 The Planning & Allocation Section is responsible 2.1.4 The work relating to form of Accounts kept under for finalization of Ministry/Department wise Gross Article 150 of the Constitution of India is also handled in Budgetary Allocation, handling of issues concerning this Division. Advice on the classification of Government earmarking of funds for welfare of Scheduled Castes & receipts and expenditure and on the accounting Scheduled Tribes by obligatory Ministries/Departments procedure drawn up for implementation of new schemes as prescribed in NITI Aayog’s guidelines. of the Government is also rendered by the Division. 2.4.2. The details of fund allocation for SCs/STs by the 2.1.5 Union Budget 2022-23 was also delivered in obligatory Ministries/Departments is provided in paperless form as was done during 2021-22. Statement No. 10A & 10B of the Expenditure Profile of 2.2 SUPPLEMENTARY DEMANDS SECTION: Union Budget. 2.2.1 Supplementary Demands Section is responsible 2.5 NATIONAL SAVINGS SECTION: for coordination and presentation of Supplementary 2.5.1. Small Savings Schemes: Demands for Grants, Demands for Excess Grants and the connected Appropriation Bills and parliamentary work Following Small Savings Schemes are currently in this regard. Other activities of the Section relate to administered by Budget Division in Department of administration of the Contingency Fund of India Act, Economic Affairs: overall policy related to Central Government Guarantees  Post Office Savings Account and Statement of Annuity.  National Savings Time Deposits (1,2,3 & 5 years) 2.2.2 During the Financial year 2021-22, the First Batch  National Savings Recurring Deposits of Supplementary Demands for Grants 2021-22 & the Second Batch of Supplementary Demands for Grants  National Savings Monthly Income Scheme 4Department of Economic Affairs I  Senior Citizens Savings Scheme schemes were being invested in the Special Securities  National Savings Certificate (VIII-Issue) of State Governments and U.T.s (with legislature). However, based on the recommendation of the  Public Provident Fund Fourteenth Finance Commission, it has been decided to  Kisan Vikas Patra advance NSSF loans only to the willing States w.e.f.  Sukanya Samriddhi Account. 01.04.2016. Accordingly, only four States, namely,  PM CARES for Children Scheme, 2021 Arunachal Pradesh, Delhi, Kerala and Madhya Pradesh have opted for the NSSF loan. Besides, it has also been 2.5.2. Small Savings Collections: decided to invest NSSF corpus in various Public Agencies The gross deposits under various small savings (National Highways Authority of India, Food Corporation schemes during 2021-22 are estimated (RE) at of India, Air India etc.). During the current financial year, Rs.10,18,333.82 crore as against the deposit of an amount of Rs.864 crore is estimated to be extended Rs.9,41,143.60 crore during 2020-21. An amount of in these agencies. Rs.22,881.16 crore (RE) is estimated to be transferred, 2.5.4. Interest Rates on Small Savings Instruments as share of net small savings collections to Arunachal Pradesh, Kerala, Madhya Pradesh and UT of Delhi during Interest rates on Small Savings Schemes are the current fiscal, as against the sum of Rs.20,966.68 decided/ notified by Government every quarter of the crore transferred to these states and UTs (with Financial Year. Legislature) during 2020-21. The rate of interest on Small Savings Schemes is decided 2.5.3. National Small Savings Fund: in view of the recommendations of Shyamala Gopinath Committee. The committee has recommended to align In order to account for all the monetary transactions the rate of interest on Small Savings Schemes with the under small savings schemes of the Central Government G-Sec rates of similar maturity. under one umbrella, the “National Small Savings Fund” (NSSF) was set up in the Public Account of India w.e.f. The rate of interest on various small savings schemes 1st April, 1999. The net accretions under the small savings for the FY 2021-22 is given below: RateR aotef Ionft eInrteersets itn in F FYY 22002210--2221 ( i(nin % %) ) Instrument Quarter I Quarter II Quarter III Quarter IV Savings Deposit 4.0 4.0 4.0 4.0 1 Year Time Deposit 5.5 5.5 5.5 5.5 2 Year Time Deposit 5.5 5.5 5.5 5.5 3 Year Time Deposit 5.5 5.5 5.5 5.5 5Year Time Deposit 6.7 6.7 6.7 6.7 5 Year Recurring 5.8 5.8 5.8 5.8 Deposit 5 Year SCSS 7.4 7.4 7.4 7.4 5 Year MIS 6.6 6.6 6.6 6.6 5 Year NSC 6.8 6.8 6.8 6.8 PPF 7.1 7.1 7.1 7.1 Sukanya Samriddhi 7.6 7.6 7.6 7.6 Account Kisan Vikas Patra 6.9 (will mature in 6.9 (will mature 6.9 (will mature in 6.9 (will 124 months) in 124 months) 124 months) mature in 124 months) 2.6 WAYS AND MEANS SECTION 2.6.1.2 During the financial year 2021-22, Government 2.6.1 Government Borrowings has planned to borrow Rs.12,05,500 crore through dated securities, out of which till Feb 07, 2022 borrowing to the 2.6.1.1 The Way & Means Section is responsible for extent of Rs.11,04,382 crore(gross) has been implementation of the Government Market borrowing accomplished. The borrowings completed so far includes (including T-Bills) programme in coordination / Rs. 1,59,000 crore which have been provided as back- consultation with the Reserve Bank of India and PDMC. to­back loans to the eligible States/ UTs with Legislature It administers the two re­appropriations namely Interest in lieu of shortfall in GST compensation Cess. Payments and Repayment of Debt. It also handles the responsibilities related to cash management, Sovereign 2.6.1.3 The weighted average yield and maturity of dated Gold Bond Scheme, etc. securities issued during 2021-22 (April 01,2021 to Feb 5Annual Report 2021-2022 07,2022) were 6.28% and 16.98 years respectively, as 2.7.3 Fiscal indicators in FY 2020-21 and targets for RE compared to 5.78 % and 14.83 years in the corresponding 2021-22 and BE 2022-23 are as below: period of the financial year 2020-21. (% of GDP) 2.6.1.4 The Government debt is held predominantly Fiscal Indicators/ (@95%) in domestic currency. Outstanding external debt Year 2020-21 2021-22 (RE) 2022-23(BE) is financed by multilateral and bilateral agencies at Fiscal Deficit 9.2 6.9 6.4 concessional rates. Internal debt consists largely of Central Government marketable and non-marketable securities. A low roll-over Debt * 61.8 59.9 60.2 risk is signified through debt maturing within the next 5 years. This accounted for about 30 per cent of total # Notes: outstanding stock of G-Secs at end-March 2021. Detailed (i) GDP for the FY 2020-21 is `197.45 lakh crore analysis of existing debt and liabilities of the Government and for FY 2021-22 is `232.15 lakh crore issued is brought out in the annual debt papers (available on by M/o Statistics & Programme Implementation https://dea.gov.in/public-debt-management). on 07.01.2022. 2.7 FISCAL RESPONSIBILITY AND BUDGET (ii) The GDP for BE 2022-23 has been projected at MANAGEMENT SECTION: `258.00 lakh crore assuming 11.1% growth over 2.7.1 Administration of the Fiscal Responsibility and the estimated GDP of 232.15 lakh crore for 2021- Budget Management Act (FRBM), 2003 and the Rules 22(RE). framed there under is the prime function of the FRBM * Central Govt. debt include external public debt valued Section. The FRBM Act provide for the responsibility of the Central Government to ensure inter-generational at current exchange rates, total outstanding liabilities on equity in fiscal management and long-term macro- Public Account including investment in Special Securities economic stability by removing fiscal impediments in the of States under NSSF and EBR liabilities etc. effective conduct of monetary policy and prudential debt 2.8 PUBLIC DEPOSITS SECTION management consistent with fiscal sustainability through limits on the Central Government borrowings, debt and 2.8.1 Budget Division is also responsible for fixation deficits, greater transparency in fiscal operations of the of rate of interest on the following: Central Government and conducting fiscal policy in a a) House Building Advance (HBA) medium-term framework and for matters connected therewith or incidental thereto. b) General Provident Fund (GPF) and other similar Funds 2.7.2 During the period from January 1, 2021 to December 31, 2021, in compliance with the relevant c) Special Deposit Scheme (SDS) provisions of the FRBM Act and Rules framed there under, d) Employees Provident Fund (EPF) the following documents were prepared and laid before both Houses of Parliament: e) Seamen’s Provident Fund (SPF) A) Statements of fiscal policy presented with Budget f) Coal Mines Provident Fund (CMPF) 2021-22 g) National Defense Fund(NDF) a) Medium-Term Fiscal Policy cum Fiscal Policy h) Computer Advance Strategy Statement b) Macro-Economic Framework Statement 2.8.2 Apart from the above, the responsibility of compilation, monitoring and review of Non Tax Revenue B) Disclosure statements presented with Budget 2021-22: Receipts also rests with Budget Division. a) Tax Revenues raised but not realised 2.9 REPORT AND COORDINATION SECTION: b) Arrears of Non-Tax Revenues 2.9.1 During the above period, Budget Division also c) Asset Register coordinated the Pre-Budget Meetings for finalization of C) Half yearly Statements on Review of the trends Revised Estimates 2021-2022 and Budget Estimates in receipts and expenditure in relation to the 2022-2023. Work relating to security and other budget at the end of:- arrangements in connection with presentation of Union a) Second Half of the Financial Year 2020-21 Budget in the Parliament is also a part of the b) First Half of the Financial Year 2021-22 responsibilities handled by the Division. 6Department of Economic Affairs I 2.9.2 From 1st April, 2021 to 28th February, 2022, 18 consolidated all these publications into this single report Reports of the C&AG of India were laid before the to bring complete Government Debt and its Management Parliament and 23 proposals of entrustment/re- related information at one place. ‘Status Paper on entrustment of audit of various bodies to the C&AG of Government Debt’ for year 2018-2019 was released last India were dealt by this Division. on May 22, 2020. The work on “Status Paper on Government Debt” for year 2019-20 and 2020-21 is 2.10 PUBLIC DEBT MANAGEMENT CELL: already completed and will be released shortly. This report 2.10.1 A Middle Office (MO) was set up in the DEA, covers various facets of public debt including overall debt MoF in September 2008 to advise the Government on position of the country, assessment on aspects of debt public debt management. Subsequently, upon the sustainability, debt management strategy covering various announcement in Lok Sabha in April 2015 by Hon’ble risks, etc. This publication now brings all components of Finance Minister, consultations were held with RBI and public debt under the Debt Management Strategy, thus other stakeholders on establishment of Public Debt widening its scope and acts as a guide to debt managers Management Agency in India and it was decided to initially in carrying out day to day debt management. The PDMC set up a Public Debt Management Cell (PDMC) as an also publishes quarterly report on Public Debt and is also interim arrangement. This was considered necessary to responsible for uploading the public debt related data on ensure separation of debt management functions form National Summary Data Page. RBI in a gradual and seamless manner, without causing 2.10.5 The PDMC also prepares various internal MIS market disruptions. Accordingly, a Public Debt reports on the development in primary and secondary Management Cell (PDMC) was set up in DEA on October markets to keep the Government informed of these 4, 2016. Formation of PDMC was also the first step development and also initiate necessary action, if towards consolidation of all components of public debt necessary. under one agency and consolidation of public debt related 2.11 BUDGET PRESS: data at one point. It was also decided that the work for 2.11.1 Budget Press is responsible for printing of all moving towards PDMA would be taken up in a phased Budget Documents relating to the Union Budget including manner. Detailed Demand for Grants of Ministry of Finance and 2.10.2 Considering the extant legal provision, only Supplementary Demands for Grants. During the year advisory functions were assigned to PDMC to avoid any 2021-22, the Budget Press contributed in execution of conflict with the statutory functions of RBI. In view of paperless Union Budget 2022-23 successfully presented electronic infrastructure created by RBI, it was also on 1st Feb, 2022 in the Parliament amid Covid 19 agreed that the operations concerning Front Office, pandemic which involved timely preparation & comprising of electronic auction system and Back Office, consolidation of total 24 documents in digital format and comprising of depository and registry services would were uploaded in the Union Budget App in Hindi & English. continue to be housed with RBI even with an independent Apart from this, 114 various documents including the PDMA comes into being. speech of Hon’ble Finance Minister, delivered in Harvard 2.10.3 Since then, the PDMC has been playing Kennedy School, Cambridge on 12th October, 2021 were important role in public debt management through printed in all with as many copies required during 1.4.2021 planning the borrowing of GoI, formulating debt to 14.03.2022. J&K Budget Documents for 2022-23 was management strategy, cash monitoring and also printed in the Budget Press during the month of management, increased interaction with market March 2022. participants etc. Cash management has become more 2.11.2 Apart from above, the Budget Press printed First important due to sharp fluctuations being seen in the Batch, Second Batch and Third Batch of Supplementary Govt. receipts and payments for last two years. Demands for Grants for the year 2021-22, Detailed Demands for Grants for the year 2022-23, Action Taken 2.10.4 Other major function undertaken by PDMC is Report, Cabinet Note (Hindi & English) and Discussion dissemination of information on public debt through Paper. The Annual Report 2021-22 was also printed periodical reports. Towards ensuring the enhanced during February-March, 2022. transparency in public debt management operations, the Government of India has been publishing a number of 2.12 HINDI BRANCH: documents detailing overall debt position of the Govt., 2.12.1 All Budget documents are presented to the consolidated debt data relating to General Govt., debt Parliament in Hindi and English. Besides Budget management strategy of central government debt, etc. documents, Hindi translation Branch has also prepared These publications include an annual Government Debt Hindi versions of Supplementary Demands, Economic Status Paper (since 2010), Debt Management Strategy Classification Report, Reports on Public Statistics and document (2015) and Handbook of Statistics on Central Status Report of External Debt, FRBM Half-Yearly Government Debt (since 2013). Government has Reports which were laid before the Parliament. 7Annual Report 2021-2022 3. Financial Markets Division (IFSCA) and Securities Appellate Tribunal (SAT). The division facilitates the sovereign credit rating by various credit rating agencies and financial regulatory 3.1 Introduction dialogues with USA, UK and Japan and EU. Financial Markets Division is primarily FM Division is responsible for the responsible for policy issues related to the administration of SEBI Act 1992, Foreign Exchange development of the securities markets and matters Management Act (FEMA) 1999, International Financial incidental thereto. The Division is also responsible for Services Centres Authority Act, 2019, Securities policy matters relating to foreign exchange management. Contracts Regulation (SCRA) Act 1956, Depositories Act, Since 2013, the Division is entrusted with the 1996 and Section 20 of the Indian Trust Act, 1882 and development of commodity derivative markets. The related regulations and notifications thereunder. Issues division looks after the administrative matters of the related to erstwhile Forward Contracts (Regulation) Act, Securities and Exchange Board of India (SEBI), 1952 is also handled in the FM Division. International Financial Services Centres Authority Organogram Additional Secretary (FM) DS(PM) Dir (SM IG & JPC) JD(EM & ECB) DS (RE,IC&Co-ordn.) DS (CD) ) DD(PM1) DD (PM2) DD (SM1) DD(SM2) DD(EM1) DD(EM2) DD (IC) US(CO)) US (RE) US (CD) DD (CD) 6. Matters related to National Institute of Securities 3.2 Sections in Financial Market Division Market (NISM) The various Sections and their work allocation are 7. Policy articulation on agenda items of SEBI's Board given below (each of the sections handle the meetings (primary responsibility) parliament questions, grievances, RTIs, court cases 8. SEBI Act and related rules and regulations miscellaneous references etc. belonging to their work areas): 9. Investment Guidelines for N o n Government Providen Funds, Superannuation I. Primary Markets (PM) Section Funds and Gratuity Funds 1. Policy formulation on issues relating to initial and 10. Coordinating DEA-NIFM Research Programme further issue of capital and related intermediaries 11. Sectoral Charge of Ministry of Corporate Affairs. engaged in the same such as II. Secondary Markets Section (a) Mutual funds, 1. Policy issues of Secondary Market and related (b) Collective investment schemes, Market Infrastructure Institutions (MIIs), (c) Alternative investment funds, Intermediaries and Participants (Stock Exchanges, Clearing Corporations, Depositories their (d) Domestic credit rating agencies, participants, Trading Members, and Investment (e) Merchant Banks etc. Advisors etc.), their ownership and governance issues etc. 2. Matters related to Corporate Governance and Minimum Public Shareholding. 2. Social Stock Exchange/SME Exchange/New Segments/ platforms for trading in securities /crowd 3. Policy issues related to Mergers, takeovers and funding platforms acquisitions 3. Taxes and Stamp Duties in Securities Market 4. Development of Corporate bond market 4. Skilling in securities market /capacity building 5. Financial literacy initiatives 8Department of Economic Affairs I 5. Delisting of companies and associated policy 9. Negative Oil price settlement related matters concerns 10. Evaluation of relevant items in SEBI board Agenda 6. Creating a Single Demat Account for all financial IV. External Markets (EM) Section assets 1. Foreign Portfolio Investment 7. Database relating to Securities Markets 2. Direct Listing of equity shares of Indian companies 8. Monitoring of Stock Market Movements in overseas exchanges 9. Self-Regulatory Organizations 3. American Depository Receipts/Global Depository Receipts/ Indian Depository Receipts 10. Cyber security related matters in context of Securities Market 4. FEMA Regulations of RBI 11. Regulation of distributors /distribution of financial 5. Global Bond and Equity Indices products in context of Sumit Bose Committee 6. International Settlement of Indian G-Sec through recommendation ICSDs 12. Matters related to Investor Education and Protection 7. Issuance of Bonds by Multilateral Institutions 13. Policy on Frozen Demat Accounts 8. Approval of foreign travel of Chief 14. Ratification of UNIDROIT / Geneva Securities Ministers/ Ministers/MLAs/Administrators/Officers Convention of States and Union Territories 15. Securities Contracts (Regulations) Act, 1956 and 9. Sectoral charge of Ministry of Law and Ministry of related Rules and Regulations Parliamentary Affairs 16. Depositories Act, 1996 and related Rules and 10. Bilateral Trade arrangement with Iran Regulations V. External Commercial Borrowings (ECB) Section III. Commodity Markets Section 1. International Financial Service Centres and GIFT 1. Policy matters related to development of commodity IFSC derivatives market: Design of new products / 2. External Commercial Borrowings, Trade Credits contracts, entry of new players - domestic as well and Offshore Rupee denominated Bonds [Masala as foreign, harmonization of rules and procedures bonds] with securities market, encouraging hedging by government entities / farmers etc. 3. Foreign Exchange Management Act 2. Notifying commodities for trading: Resumption/ 4. Currency Derivatives suspension of futures trading in various notified 5. Trade payments mechanisms with specific commodities /Launch of Plain Vanilla Options countries Contract 6. FEMA Rules including Non Debt Instruments Rules 3. Integration of Commodity spot and derivatives and Current Account Rules market: 7. Approval for establishment of Liaison office / Branch 4. Commodity derivatives trading related matters: office/ Project Office in India by Foreign entities cases of manipulation/speculation etc. 8. Approval for purchase of immovable property in 5. Representing DEA in futures market related matters India by foreigners/ non- residents in the inter-ministerial committees on Essential 9. Approval for opening Non Resident Ordinary (NRO) Commodities' price rise etc. and Non Resident Rupee (NRE) Accounts by 6. Representing DEA in Commodity Derivative foreigners/ non-residents Advisory Committee of SEBI - processing CDAC VI. Regulatory Establishment (RE) Section agenda items 1. Carrying out Board level appointments of Securities 7. Delivery arrangements in the market: Taking up and Exchange Board of India(SEBI), appointment matters related to warehouses accredited by stock of Presiding Officer, Members and Registrar of exchanges with WDRA and Ministry of Consumer Securities Appellate Tribunal (SAT) and Affairs administration of related Rules and Regulations 8. NSEL scam related matters: holding inter- 2. Constitution of the Financial Sector Regulatory ministerial, inter-agency periodic review meetings Appointments Search Committee (FSRASC) on NSEL scam 9Annual Report 2021-2022 3. Establishment matters of SEBI like audit, 6. Internal Charge of 5 states (Bihar, U.P.,Uttarakhand, appointment of CVO etc. Himachal Pradesh & Jharkhand) 4. Establishments matters of SAT like residential IX. Coordination Section accommodation, grant of budget to SAT and related 1. Internal Coordination within FM Division for matters, Grant of vehicle to the officers in SAT etc. providing periodical inputs /reports to various 5. Strengthening of SAT - Creation of additional Departments /Ministries, submission of material for benches / creation of posts / creation of additional annual reports, economic survey etc. office space for SAT / Implementation of e-Court in 2. Meeting on Senior Management Group (SMG) SAT etc. taken by Secretary (EA) to evaluate pending VIP 6. Administration of the Securities Appellate Tribunal reference, PMO reference and Parliamentary on (Salaries, Allowances And Other Terms And Monday of every week. Management of e-Samiksha Conditions Of Presiding Officer And Other and portals in respect of FM Division related Members) Rules, 2003 complaints, VIP/PMO references, cabinet notes, court cases, Senior Management Group Meetings 7. Bilateral and multi-lateral MoUs between SEBI and securities market regulators of foreign countries. etc. 8. Remittances from SEBI to the Consolidated Fund 3. Monthly summary in respect of activities, major of India achievement and important policy decisions taken in DEA are sent to Cabinet Secretariat 9. Foreign visits of the Chairman of SEBI; Hosting of meetings of foreign delegations - obtaining the 4. Work management /allocation issues within FM necessary clearances Division VII. International Cooperation (IC) Section 5. Website management in respect of FM Division 1. Facilitating Sovereign Credit Rating of India (Fitch, matters Moody's, S&P, DBRS, JCRA, R&I) 6. Internship Management within FM Division 2. Coordinating DEA - NIPFP Research Programme 3.3 Recent Developments 3. Indo-US Financial Regulatory Dialogue /Indo-US I. Primary Markets: Financial Initiative A. Public Issue 4. Indo Japan Financial Regulatory Dialogue The year 2021-22 so far has been an exceptional 5. India-UK Financial Market Dialogue year for the primary markets with a boom in fundraising 6. Indo-UK Financial Partnership through IPOs by many new age companies /tech start- 7. India-EU Financial Regulatory Dialogue ups/unicorns. The exuberance associated with the listings manifested in huge oversubscriptions by retail, HNIs and 8. Other International matters institutional investors and stellar listing gains have pushed 9. Interactions with financial analysts and economists more and more companies to tap the markets. Huge VIII. Joint Parliamentary Committee (JPC) and investor demand for IPOs of several startups, which are Investor Grievances (IG) Section yet to break-even is a positive development for domestic 1. Matters related to Section 20 of Indian Trust Act startup ecosystem which has so far been relying majorly 1882 on overseas listing. 2. Preparation of Progress Report on Action taken on Capital market, both debt and equity, has become recommendations of Joint Parliamentary increasingly important for India's growth story. On the Committee (JPC) on Stock Market Scams and equity side, the total funds raised through public issue matters related thereto. [Initial Public Offering (IPO), Rights Issue, Preferential 3. Matters related to Nizam Trust Issue, Qualified Institutional Placement] have touched Rs. 1.83 lakh crores till November, 30, 2021. On the debt 4. Handling of Investors' Grievances (Electronic & side, the funds raised through corporate bonds this Physical) related to FM Division/ transferring of other financial year till November, 30, 2021are around Rs. 3.7 representations to respective authority lakh crores, which includes fund raising through both 5. Study/ Survey on reforms required in Investors' public issues and private placement. The Assets under Grievance Redressal Mechanisms in context of Management (AUM) of mutual fund industry stood at Rs. Securities Markets 37.33 lakh crores upto 31st October, 2021. 10Department of Economic Affairs I The Corporate Bond Market is vital for financing cured and the payments regularized, from the the real sector, supporting alternate investment need existing 365 days to 90 days. apart from banks, diversifying risk and reducing financial 3. SEBI fixed the role/accountability of investment markets fragility. The total debt amount consists of Public manager and investment committee in Alternative issue and private placement of Corporate Bonds which Investment Funds (AIF) vide circulars dated has been tabulated in Table 2 of Annexure A. 19.10.2020 and 8.01.2021. In order to increase the liquidity in corporate bond 4. DEA vide Gazette Notification dated 15.03.2021 markets, SEBI has mandated mutual funds to has amended the Ministry of Finance Investment undertake minimum 25% and 10% of their total Guidelines for non-government provident funds, secondary market trades by value (excluding inter scheme transfer trades) in corporate bonds and superannuation and gratuity funds, enabling them commercial papers respectively. to invest up to 5 per cent in the units of Category I and Category II Alternative Investment Funds In the backdrop of global developments and the (AIFs), subject to certain conditions. increasing focus on sustainability investing, the disclosure requirements under the Business 5. Government is engaged in an ongoing intensive Responsibility Report (BRR) were reviewed. SEBI effort to reduce the compliance burden on radically improved the ESG-related reporting with the businesses and citizens by way of rationalizing introduction of the Business Responsibility and the Laws, process etc of regulatory bodies like Sustainability Report (BRSR) in May 2021. The BRSR SEBI and RBI. Overall, 62 items have already is applicable to top 1,000 listed entities by capitalisation, been identified in respect of Securities laws and for reporting on a voluntary basis for 2021-22 and on FEMA related provisions out of which 53 items mandatory basis from 2022-23 onwards. have been completed. Other steps are in the B. Mutual Fund Activities pipeline. The Assets under Management (AUM) of mutual 6. SEBI has introduced a framework for 'Accredited fund industry stood at Rs. 37, 33,204 crore at the end of Investors' in the Indian securities market, as a class November 30, 2021. During 2021, important initiatives of investors who may be considered to be well like alignment of interest of the asset management informed or well advised about investment products. companies and its designated employees with the unit Accredited Investors shall have flexibility to holders of the mutual fund schemes, introduction of silver participate in investment products with an ETFs etc., have been undertaken. investment amount lesser than the minimum C. Policy Developments of Primary Market: amount mandated in the Alternative Investment 1. Debt Financing of InVITs and REITs: DEA as part Funds (AIF) Regulations and Portfolio Managers of Finance Act 2021 has carried out amendments (PMS) Regulations. in the Securities Contract (Regulation) Act, 1957 7. The SEBI has the revamped the framework of [SCRA] and Securities and Exchange Board of Innovators Growth platform (IGP) under SEBI (Issue India Act, 1992 [SEBI Act] to confer the power to of Capital and Disclosure Requirements) Pooled investment Vehicles (PIV), which are Regulations, 2018, with an objective to make the defined to include AIFs, REITS, InvITS etc. platform more accessible to companies in view of whether registered as trusts or otherwise with the evolving start-up ecosystem. SEBI, to borrow and issue debt securities, as per the relevant Regulations. It also specifies means 8. On 18th June 2021 amendments were made to to recover the defaulted amount and enforcement Rule 19(2)(b) of Securities Contracts Regulation of security interests of PIV in case of any default. Rules (SCRR), 1957 for relaxing the Minimum Consequential amendments are made to Public Shareholding (MPS) norms for large SARFAESI Act) and RDB Act. companies and Rule 19A(5) for tightening the MPS 2. SEBI vide Circular dated May 21, 2020 reduced the norms for listed companies going through Corporate time period for restoring the ratings, if default is Insolvency Resolution Process (CIRP) 11Annual Report 2021-2022 Annexure A. Table 1.: Primary Market Resource Mobilisation through Public and Rights Issues (Amount in ` crore ) Year Total IPOs (Main IPOs- Rights QIP Preferential issues Board) SME /IGP No.of Amount No.of Amount No.of Amount No.of Amount No.of Amount No.of Amount issues issues issues issues issues issues 2019-20 375 3,06,288 12 20,790 48 555 17 55,667 14 54,389 284 1,74,886 2020-21 341 2,14,766 29 30,814 26 216 21 64,059 31 78,738 234 40,940 2021- 349 1,82,560 36 89,756 39 437 18 22,659 23 26,704 233 43,004 22# # till Nov. 30,2021 Source: SEBI Table 2.: Data on corporate bond issuances Year Public Issues Private Placement Total No.of Amount No.of Amount No.of Amount issues (₹ crore) issues (₹ crore) issues (₹ crore) 2019-20 34 14,984 1,787 6,74,703 1,821 6,89,687 2020-21 18 10,588 1,995 7,71,840 2,013 7,82,428 2021-22# 20 9,132 851 3,62,458 871 3,71,590 # Till November 30,2021 Table 3.: Trading in the Corporate Debt Market Year BSE NSE Total No. of Traded Value No. of Traded Value No. of Traded Value Trades (₹ crore) Trades (₹ crore) Trades (₹ crore) 2019-20 57,669 7,64,269 80,558 14,63,552 1,38,227 22,27,821 2020-21 69,095 6,60,214 69,659 12,12,504 1,38,754 18,72,718 2021-22# 57,016 4,32,795 42,431 7,13,851 99,447 11,46,646 # Till November 30,2021 Table 4.: Resource Mobilization through Mutual Funds Year AUM Gross resource Gross Net resource No. of folios (₹crore) moblisation Redemption moblisation (₹crore) (₹crore) (₹crore) 2019-20 22,26,203 1,88,13,458 1,87,26,157 87,301 8,97,46,051 2020-21 31,42,764 86,39,167 84,24,424 2,14,743 9,78,65,529 2021-22# 37,33,702 58,64,573 56,10,534 2,54,039 11,69,91,489 # Till November 30,2021 12Department of Economic Affairs I II. External Markets: December 2021, operating lease has been notified as a financial product to be regulated by IFSCA. A. International Financial Services Centres The notification will fast track the development of Authority (IFSCA): GIFT IFSC into a global hub for leasing related The vision of GIFT IFSC is to establish itself as a financial activities. dominant gateway for global financial flows into and out  Notification of Bullion Depository Receipt as of India, and simultaneously emerge as a major global ‘securities’: Vide Gazette Notification dated financial hub. In pursuit of this vision, it aims to leverage December 15th, 2021, Bullion Depository Receipt domestic economy and Indian Diaspora, match tax (BDR) has been included in the definition of regime with offshore jurisdictions, institutionalize a ‘securities’ under the Securities Contract modern unified regulatory framework, develop networks/ Regulations Act 1956. This will enable trade of BDR, connects with major financial hubs, and have a diversified with bullion as underlying, at the International Bullion range of financial products and services. These Exchange at IFSC Gandhinagar. endeavors will enable the transition of GIFT IFSC into a globally competitive financial hub for international  IFSCA has introduced internationally benchmarked banking, insurance and capital market activities which regulations to regulate Capital Market and serves both the Indian Economy and the region as a Insurance Intermediaries, Market Infrastructure whole. Institutions and Listing and Issuance of Securities in GIFT-IFSC. Pursuant to the passage of IFSCA Act in December 2019, the International Financial Services Centres  In order to bolster the Fintech ecosystem at GIFT- Authority (IFSCA), a first of its kind unified regulator for IFSC, Ministry of Finance has announced the the financial sector, has been established and made ‘Fintech Incentive Scheme’ with a budgetary outlay operational vide Gazette Notification dated 27th April, of Rs 45.75 crores over three years in November 2020. The Chairman and ex-officio members of the 2021. The Scheme, to be implemented by IFSCA, Authority have been appointed and all sections of the envisages customised incentives to Fintech start- IFSCA Act have been notified in the Official Gazette. The ups based in IFSC through various stages in their following key initiatives and Notifications pertaining to life-cycle such as ideation, incubation, proof of IFSCA have been undertaken by DEA during the year concept, prototyping, commercialization and market 2021: access for upscaling.  Signing of MMoU with IOSCO and IAIS: The  The Government has approved a state-of-the-art proposal for signing of Multilateral Memorandum Information Technology (IT) platform that would of Understanding (MMoU) by IFSCA with leverage technology to promote ease of doing International Organization of Securities business for the stakeholders, reduce the cost of Commissions (IOSCO) and International compliance for supervised entities and position Association of Insurance Supervisors (IAIS) has IFSCA as a progressive regulator with a best-in- been approved by the Cabinet in July 2021, thus class Supervisory Technology (SupTech) system paving way for deeper cooperation and information with an estimated cost of INR 269.05 crores. The exchanges w.r.t regulation and enforcement. SupTech system shall cover administrative, compliance, supervision, and enforcement  The Factoring Regulation Act 2011 has been framework for its regulated entities. The SupTech included in the First Schedule of the IFSCA Act vide system will enable IFSCA to collaborate with other Notification dated 14th October 2021 to enable sectoral financial regulators in India and abroad IFSCA to regulate factoring services in IFSCs. through Application Programming Interface (API)  Notification of Operating Lease as financial based machine to machine communication or product: Vide Gazette notification dated 14th integration, as need be. 13Annual Report 2021-2022 Snapshot of External Market B. Participation of Foreign Portfolio Investors (FPIs) in Securities Market FPI/FII Investment in India during calendar year 2021. INR Crores Calendar Year Equity Debt Debt - VRR Hybrid Total January 19473 -2518 -2306 -17 14631 February 25787 -6488 4364 350 24013 March 10482 -6492 13314 -281 17023 April -9659 -118 342 599 -8836 May -2954 -1706 1994 709 -1958 June 17215 -4829 883 -295 12974 July -11308 -782 4817 -138 -7410 August 2083 12144 2232 97 16556 September 13154 12804 559 1239 27756 October -13550 -1558 2830 -159 -12437 November -5945 983 2466 -24 -2521 December -19026 -11799 1391 -269 -29702 Source: NSDL, Up to December 2021  FPI flows were in the positive territory for the first investment limit, introduction of common application three months of 2021 with total net investment form (CAF) and opening up of new channels of debt inflows of Rs. 55,667 cr. Thereafter, for a short investments like the Voluntary Retention Route period there were outflows in net FPI investment (VRR) and Fully Accessible Route (FAR). during April-May to the tune of Rs. -10,794 cr. There  The limits available under VRR, which requires FPIs soon followed a strong rebound in FPI flows in the to retain their investments for a minimum period of month of June 2021 largely driven by equity three years, has been enhanced to 2.5 lakh crores investment. FPIs made a net investment of Rs. (from 1.5 lakh crores) in light of the sustained offtake 50,089 crores up to December 31st, 2021 with witnessed under the route. September witnessing a monthly high of FPI inflows at Rs. 27,756 cr.  The operational constraints in the G-Sec market have been progressively eased in May and June  The Indian growth story continues to expand as is 2021 with longer window for reporting of OTC trades demonstrated by the trends in FPI flows that indicate and facilitation of margin payments by AD-I Banks and underline the faith of global investors in the on behalf of FPIs. strength and resilience of Indian economy.  Morgan Stanley Capital International (MSCI), a  In order to enable debt financing of InVITs/REITs by FPIs, the Foreign Exchange Management (Debt leading provider of analytics and indices which are Instruments) Regulations 2019 have been amended tracked by global investors, announced the addition by RBI, in consultation with DEA, vide Notification of several Indian companies across its various dated 13th October 2021 thus providing access to Indices on November 10th, 2021. This was on newer asset classes to FPIs. account of rationalisation of foreign investment policy by DEA in the FEM (NDI) Rules 2019 whereby  In order to enable Resident Indian fund managers the statutory limit for aggregate FPI investment in to benefit from the provisions of Section 9A of the a company was increased from 24% to the sectoral Income Tax Act, 1961 , the SEBI (Foreign Portfolio cap w.e.f 1st April 2020. These new additions are Investors) Regulations, 2019 has been amended expected to significantly increase India’s weight in to permit Resident Indians (other than individuals) MSCI Emerging Markets Indices and drive passive to be constituents of FPI provided: Such resident inflows into Indian capital markets. Indian (other than individuals) is an eligible fund  A large number of progressive reform measures manager of the FPI applicant, as per section 9A (4) have been undertaken in the recent years to of the Income Tax Act, 1961; FPI applicant is an improve ease of doing business for FPIs. These eligible Investment Fund as per section 9A (3) of include simplification and rationalisation of the FPI Income Tax Act, 1961 which has been granted regulations, increase in aggregate foreign approval under the Income Tax Rules, 1962. 14Department of Economic Affairs I C. External Commercial Borrowing in India: The data for ECB net inflows since FY 2017-18 is presented as under: 2017-18 2018-19 2019-20 2020-21 2021-22 (Till October 2021) 2,305 13,180 29,399 4,248 6,730 * Data for latest month are as per the scheduled drawdown (indicated by borrowers in Form- ECB) in absence of ECB-2 Return. D. Foreign Exchange Management (Non–Debt DPIIT pertaining to the review of Foreign Instrument Rules) Direct Investment (FDI) policy on Insurance Sector was notified on 19th Pursuant to the amendments to FEMA 1999 through the Finance Act, 2015, Ministry of Finance had August, 2021 whereby FDI limit in notified the Foreign Exchange Management (Non-debt insurance sector has been increased Instruments) Rules, 2019 vide Notification No. 3732(E) from 49 % to 74% under automatic route. dated 17th October, 2019. With regard to NDI Rules, the iii. FEM (NDI) (Third Amendment) Rules, following amendments have been notified during 2020- 21: 2021: Regarding Press Note 3 (2021) of DPIIT pertaining to the review of Foreign i. FEM (NDI) (Amendment) Rules, 2021: Direct Investment (FDI) policy on Regarding Press Note 1 (2021) of DPIIT Petroleum and Natural Gas Sector, pertaining to the review of the Foreign notified on 5th October, 2021, whereby Direct Investment (FDI) policy on foreign investment up to 100% under the downstream investments made by NRI automatic route has been allowed in case was notified on 6th August 2021. The an ‘in-principle’ approval for strategic amendment inserted an explanation in disinvestment of a PSU has been granted sub-rule (7) of Rule 23 that investment by the Government. made by an Indian entity which is owned and controlled by NRI(s), on a non- iv. FEM (NDI) (Fourth Amendment) Rules, repatriation basis, shall not be considered 2021: Regarding Press Note 4 (2021) of for calculation of indirect foreign DPIIT pertaining to the review of Foreign investment. Direct Investment (FDI) on Telecom Sector was notified on 12th October, ii. FEM (NDI) (Second Amendment) Rules, 2021, whereby FDI limit in telecom sector 2021: Regarding Press Note 2 (2021) of has been increased from 49 % to 100 % under automatic route. 15Annual Report 2021-2022 III. Secondary Markets: respectively. Indian markets outperformed other Indian Market Performance emerging market during the calendar year 2021 (till November 30) (Table 1). In the current year 2021, as on 30th November 2021, the NSE benchmark index NIFTY 50 and BSE Among the developed markets, Nasdaq and S&P Sensex gained 20 per cent and 21 per cent respectively 500 Index rose by 21 per cent and 22 per cent, while for the previous calendar year, Nifty 50 and respectively during calendar year 2021 (till November Sensex increased by 16 per cent and 15 per cent 30). Table 1: Performance of Major Markets in the World Variation in CY As on 31st As on 30th Variation in CY 2020 (%) Index December November, 2021( till November ( till December 2020 2021 30th , 2021) 31st , 2020) Indian Markets Nifty 50 13,982 16,983 15% 21% S&P BSE Sensex 47,751 57,065 16% 20% Emerging Markets Brazil 1,19,017 1,01,915 3% -14% KOSPI, Korea 2,873 2,839 31% -1% Taiwan Taiex 14,713 17,428 23% 18% Developed Market S & P 500, US 3,756 4,567 16% 23% CAC-40, France 5,551 6,721 -6% 20% DAX, Germany 13,719 15,100 4% 10% FTSE 100, UK 6,461 7,059 -14% 7% Hang Seng, Hong Kong 27,231 23,475 -3% -14% Nikkei 225, Japan 27,444 27,822 16% 1% # as on November 30 of the respective year. Source: Refinitiv Datastream, NSE and BSE Key Developments: public comments received, the SEBI Board, in i) Social Stock Exchange (Budget Announcement its meeting held on September 28, 2021, has 2019-20) approved the creation of SSE to be set up as a  In the Union Budget 2019-20, Government separate segment of the existing stock proposed to initiate steps towards creating a exchanges. The framework, inter-alia, Social Stock Exchange (SSE), under the envisages fund raising by social enterprises regulatory ambit of SEBI, for listing social including voluntary organizations through enterprises and voluntary organizations various innovative instruments, most notably working for the realization of a social welfare among them is a new proposed security "Zero objective so that they can raise capital as coupon Zero principal instrument"(ZCZP) as equity, debt or as units like a mutual fund. well as a blended finance product  Pursuant to initial discussions with various "development impact bonds"(DIBs). The stakeholders, SEBI constituted a Working framework provides that social enterprises on Group (WG) and Technical Group on Social SSE will be required to make annual Stock Exchange. Based on the disclosures on their social impact through an recommendations of the expert groups impact score card, which will be assessed by (Working Group and Technical Group) and social auditors. 16Department of Economic Affairs I ii) Amendments in the Indian Stamp Act, 1899 2. Strengthening Warehousing Development and  In order to rationalize the collection and Regulatory Authority (WDRA). allocation mechanism for stamp duty for a. A working group was constituted under The securities market instruments and harmonize Chairmanship of DFPD with representatives the rates across States, the relevant provisions from DEA, WDRA, SEBI, Ministry of of the Finance Act, 2019 amending the Indian Commerce, DPIIT & Other such relevant Stamp Act, 1899 and the Indian Stamp commodity oriented departments/ministries as (Collection of Stamp-Duty through Stock representatives to carry out the process of Exchanges, Clearing Corporations and Depositories) Rules, 2019 were notified strengthening WDRA. simultaneously on 10th December, 2019 and b. DFPD has granted in principle approval to it has come into effect from 1st July, 2020. WDRA for notifying non-agri commodities for  Through the amendments in the Indian Stamp metals and alloys viz. Aluminium, Brass, Lead, Act, 1899 and associated Rules, which came Nical, Zinc, Tin Steel and Iron ore. Draft into effect from 1st July, 2020, the Central amendment has been prepared and being Government has created the legal and consulted by DFPD. institutional mechanism to enable States to 3. Notifying additional commodities, collect stamp duty on securities market The commodities eligible for derivatives trading are instruments at one place by one agency on one instrument. It will facilitate ease of doing notified by DEA, MoF in consultation with SEBI. At business, bring in uniformity of the stamp duty present, major agricultural commodities trading on on securities across States and thereby build derivatives platform include Barley, Castor Seed, a pan-India securities market. So far, Coriander, Cotton, Guar Seed. Major non-agri implementation of the reformed stamp duty commodities traded on commodity derivatives platform regime has been working smoothly. In the in India are metals (Zinc, Aluminum, Copper, Gold sixteen months (July 2020 to October, 2021) andilver) and energy commodities (Crude Oil, Natural alone, State Governments have collected Gas). nearly `3738.87 crores. SEBI has issued the following directions to National IV. Commodity Derivatives : Commodity & Derivatives Exchange Limited (NCDEX), Commodity Derivatives Market : on 16 August 2021 and 8 October 2021 in respect of 1. Establishment of Gold Spot Exchange: trading in Chana and Mustard seed contracts: a. Hon'ble Finance Minister in her Union Budget i. No new Chana, Mustard contract shall be Speech 2021-22 has made the following launched till further orders. announcement : "In the budget of 2018-19, Government had ii. In respect of running contracts, no new position announced its intent to establish a system of will be allowed to be taken. Only squaring up regulated gold exchange in the country. For this of position will be allowed. purpose, SEBI will be notified as the regulator iii. These directions will be implemented with and Warehousing Development and Regulatory Authority will be strengthened to set immediate effect. up a commodity market ecosystem SEBI has issued similar directions on 20th Dec.,2021 as arrangement including vaulting, assaying, above, applicable for one year to Stock Exchanges having logistics etc. in addition to warehousing" Commodity Derivatives Segment in respect of trading in b. SEBI shall be the sole regulator for gold spot derivative contracts in the following commodities: trading including the vault, assaying etc. 1. Paddy (non-basmati) c. The proposed framework for Gold Spot exchanges has been issued and SEBI (Vault 2. Wheat Managers) Regulations, 2021 has also been 3. Chana notified. 4. Mustard seeds and its derivatives d. Electronic Gold Receipt (EGR) has also been 5. Soyabean and its derivatives (its complex) declared as Securities under relevant 6. Crude Palm Oil provisions of the SCRA 1956 vide Notification dated 24-12-2021. 7. Moong 17Annual Report 2021-2022 At present, major agricultural comodities trading on derivatives platform include Barley, Castor seed, Coriander, Cotton, Guar Seed etc. Major non-agri commodities traded on commodity derivatives platform in India are metals (Zinc, Aluminium, Copper, Gold, Silver) and energy commodities (Crude Oil, Natural Gas). The total turnover in commodity derivatives segment is distributed across exchanges as follows: Table 1: Market share of exchanges year wise % variation of Total 2017-18 2018-19 2019-20 2020-21 2021-22* % variation of 2021-22 Turnover 2020-21 over over 2020- 2019-20 21 (in Rs. Crore) All-India 6,022,530 7,377,943.89 9,224,839 9,222,927 7,312,278 -0.02% -20.72% MCX 5,393,350 6,772,372.87 8689518 8,264,585 6,171,370 -4.89% -25.33% NCDEX 589,497 531587.96 442009 318,814 384,066 -27.87% 20.47% ICEX 2,158 37,735.50 40,511.29 1,666 139 -95.89% -91.66% NSE 3,443.82 6,362.00 27,839 13,678 337.58% -50.87% BSE 32,803.75 46,438.72 610,023 743,025 1213.61% 21.80% * includes data up to 31 December, 2021 Source: SEBI Bulletin Table 2: Market share of exchanges in percentage Market Share of (In Rs crore) Share in percentage Exchanges Exchanges 2020-21 2021-22* 2020-21 2021-22* 6,171,370 84.40% MCX 8,264,585 89.61% 384,066 5.25% NCDEX 318,814 3.46% 139 0.00% ICEX 1,666 0.02% 743,025 10.16% BSE 610,023 6.61% 13,678 0.19% NSE 27,839 0.30% 100.00% Total 9,222,927 7,312,278 100% * includes data up to 31 December, 2021 Source: SEBI Bulletin, January 2022 Table 3: Segment wise share of commodity derivatives in exchanges Segment wise share (In Rs crore) Share in percentage 2020-21 2021-22* 2020-21 2021-22* Commodity Futures 8,307,433 5,415,763 90.07% 74.06% Commodity Options 867,032 1,830,480 9.40% 25.03% Index futures 48,463 66,034 0.53% 0.90% Total 9,222,927 7,312,278 100% 100.00% * in cludes data up to 31 December, 2021 Source: SEBI Bulletin 18Department of Economic Affairs I Table 4: commodity wise share in exchanges (In Rs crore) Share in percentage Commodity wise share 2020-21 2021-22* 2020-21 2021-22* Agricultural 429,687 482,524 4.66% 6.60% Metals 1,574,998 1,201,507 17.08% 16.43% Bullion 5,344,812 2,947,269 57.95% 40.31% Energy 1,872,876 2,680,978 20.31% 36.66% gems & stones 554 0 0.01% 0.00% Total 9,222,927 7,312,278 100.00% 100.00% * includes data up to 31 December, 2021 Source: SEBI Bulletin V. International Cooperation: (S&P), Japanese Credit Rating Agency (JCRA), Rating India's sovereign debt is rated by 6 major Sovereign and Investment Information Inc., Tokyo (R&I) and DBRS Credit Rating Agencies (SCRAs). These are Fitch MorningStar. The latest sovereign ratings issued by these Ratings, Moody's Investors Service, Standard and Poor's agencies are given below: Rating Date of Foreign Currency Local Currency Agency affirmation of ratings Ratings Outlook Ratings Outlook Moody’s 05.10.2021 Baa3 Stable Baa3 Stable Fitch 16.11.2021 BBB- Negative BBB- Negative S&P 13.07.2021 BBB- Stable BBB- Stable JCRA 29.10.2020 BBB+ Stable BBB+ Stable R&I 14.07.2021 BBB Stable No ratings were given DBRS 19.05.2021 BBB (low) Negative BBB (low) Negative VI. Regulatory Establishment the designated Tribunal to hear appeal cases against the orders passed by International Financial Services Securities Appellate Tribunal (SAT) is established Centres Authority (IFSCA) for matters related to under Section 15K of the Securities and Exchange Board securities, insurance, and pension under the Acts of India Act, 1992, to exercise the jurisdiction, powers mentioned above. and authority conferred on the Tribunal by or under the SEBI Act1992, PFRDA Act 2013, Insurance Act 1938 As on 30.11.2021 770 appeals are pending before and any other law for the time being in force. It is also SAT and its duration wise breakup is as follows:- Month Appeals Total Pendency Pendency Pendency Pendency Total Disposal & filed Pendency Less than (1yr.- (2yrs.- more than of cases upto Year under Act One Year 2 yrs) 3yrs) three years Nov. 2021 Nov. SEBI 754 377 288 89 00 688 2021 IRDA 16 14 02 00 00 10 PFRDA 00 00 00 00 00 03 19Annual Report 2021-2022 4. Financial Stability and Cyber Security RBI, and Secretary (FSDC), are also the members of the Division FSDC-SC. Executive Director of RBI who is in-charge-of Financial Stability is the Member Secretary, and the 4.1. Financial Stability and Development Council Financial Stability Unit (FSU) of RBI is the Secretariat for the FSDC-SC. The FSDC-SC has met 28 times so far. 4.1.1 The Financial Stability and Development Council (FSDC) was set up by the Government of India as the 4.2.2 During the year 2021-22, FSDC-SC held the 28th apex level forum in December 2010 with a view to meeting on January 13, 2022. The Sub-Committee strengthening and institutionalizing the mechanism for, reviewed the major developments in the global and inter-alia, maintaining financial stability, enhancing inter- domestic economy as well as in various segments of the regulatory coordination and promoting financial sector financial system and discussed the assessments of development. The Chairperson of the FSDC is the Finance members about the scenario emerging from the third wave Minister of India, and Members include Ministers of State of the COVID-19 pandemic. for Finance, the heads of the financial sector regulators The FSDC-SC also discussed various inter-regulatory and Secretaries of the relevant Ministries/Departments of issues and matters relating to the use of Aadhaar Based the Government of India. e-KYC and Aadhaar Enabled payment system by regulated 4.1.2 The FSDC monitors macro-prudential supervision entities. It reviewed the activities of various technical of the economy and deliberates on contextual issues groups under its purview and the functioning of State Level covering financial stability, financial sector development, Coordination Committees (SLCCs) in various states/UTs. inter-regulatory coordination, financial literacy, financial The members resolved to maintain a close watch on the inclusion, co-ordinating India's international interfaces with unfolding developments and act proactively to ensure that financial sector bodies like the Financial Action Task Force financial institutions and financial markets remain resilient (FATF) and the Financial Stability Board (FSB). The amidst the challenges posed by the resurgence of the Financial Stability and Cyber Security (FS&CS) Division pandemic. in the Department of Economic Affairs provides secretarial assistance to the FSDC. The Division-Head in charge of 4.3 Financial Stability Board (FSB) Financial Stability & Cyber Security (FS&CS) Division, 4.3.1 FSB is an international body established in April, Ministry of Finance, Department of Economic Affairs is 2009 under the aegis of G20 by bringing together the the Secretary of the FSDC. national authorities, standard setting bodies and 4.1.3 Till 15th January, 2022, FSDC held 24 meetings. international financial institutions. FSB is responsible for In 2021-22, the 24th meeting was held on September 3, undertaking vulnerabilities assessment, policy 2021. The meeting deliberated on the various mandates development and coordination, implementation of the FSDC, viz., Financial Stability, Financial Sector monitoring, and to act as a compendium of standards for Development, Inter-regulatory Coordination, Financial financial sector regulation and reforms in members' Literacy, Financial Inclusion, and Macro prudential jurisdictions. supervision of the economy including the functioning of 4.3.2 India, as a member of the FSB, remains large financial conglomerates etc. It was noted that there committed to adoption of the priority and other areas of is a need to keep a continuous vigil by Government and financial sector reforms and international standards in a all regulators on the financial conditions. The FSDC phased manner, calibrated to local conditions wherever also, inter alia, discussed issues relating to management necessary. Department of Economic Affairs is the nodal of stressed assets, strengthening institutional mechanism point for India to coordinate with the FSB and all India- for financial stability analysis, financial inclusion, framework specific information are regularly provided in consultation for resolution of financial institutions and issues related to with the financial sector Regulators (namely, RBI, SEBI, IBC processes, banks' exposure to various sectors and IRDAI and PFRDA) while responding to various FSB Government, data sharing mechanisms of government questionnaires, surveys and reports. India also participates authorities, internationalisation of Indian Rupee and pension in the peer reviews, meetings and conference calls of FSB sector related issues. The FSDC also took note of the and presents its views and comments as a member. activities undertaken by the FSDC Sub-Committee chaired by the Governor, RBI and the action taken by members 4.3.3 The Plenary is the sole decision-making body of on the past decisions of FSDC. the FSB, the Steering Committee provides operational guidance between Plenary meetings to carry forward the 4.2 FSDC Sub-Committee (FSDC-SC) directions of the FSB and prepare the Plenary meetings 4.2.1 The FSDC is supported by a Sub-Committee in order to allow the plenary to efficiently fulfil its mandate, (FSDC-SC), chaired by the Governor RBI. Excluding the Standing Committee on Standards Implementation (SCSI) Chair of the FSDC and theMinisters of State for Finance is responsible for monitoring the implementation of agreed all members of the FSDC are also the members of the FSB policy initiatives and international standards, and the FSDC-SC. Additionally, all four Deputy Governors (DG) of Standing Committee on Budget and Resources (SCBR) 20Department of Economic Affairs I is responsible for assessments of the resource needs of 4.4 Financial Sector Assessment Programme the FSB Secretariat taking into account the current (FSAP) mandate, the work programme and emerging demands. 4.4.1 FSAP is a quinquennial exercise jointly The Regional Consultative Group on Asia (RCG Asia) is conducted by IMF and World Bank (WB) and involves a one of the 6 regional groups established by FSB in 2011 comprehensive and in-depth analysis of a country's to expand upon and formalise the FSB’s outreach activities financial sector to assess financial stability and financial beyond the membership of the G20 and to reflect the global nature of the financial system through interaction with the sector development. India underwent its first FSAP non-members. Secretary of the Department of Economic exercise in 2011-12 and the second FSAP in 2017. Affairs represents India in the FSB Plenary, Steering Department of Economic Affairs, in close coordination with Committee (2021-2023) and in the two out of the four FSB financial sector Regulators and Ministries/Departments standing Committees, namely, the Standing Committee concerned, facilitates and coordinates all matters related on Standards Implementation(SCSI) and the Standing to FSAP undertaken for India, including following up on Committee on Budget and Resources(SCBR). Secretary the recommendations of FSAP. Subsequent to the FSAP (Economic Affairs) also represents India in the Regional exercise in 2017, the IMF and the World Bank published Consultative Group on Asia (RCG Asia). Chairman (SEBI), their reports, including the Financial System Stability and DG (RBI) are the other two members from India in the Assessment Report (FSSA) (along with IMF Press FSB Plenary as well as in the RCG Asia. DG (RBI) Release, Staff Supplement and Statement of India's represents as a member from India in the other two Executive Director in IMF) and Financial Sector Standing Committees of FSB, namely, Standing Assessment (FSA) report respectively in December, 2017 Committee on Assessment of Vulnerabilities (SCAV) and on their respective websites, followed by a few Detailed Standing Committee on Supervisory and Regulatory Assessment Reports (DARs) and Technical Notes on Cooperation (SRC). He also represents India in the Steering selected topics. Department of Economic Affairs has been Committee that provides operational guidance between following up with the Ministries/ Departments/ Regulators Plenary meetings to carry forward the directions of the concerned for examination and suitable implementation FSB, promotes coordination across the Standing of the recommendations. Committees and coordinates and conducts reviews of the policy development work of the international standards 4.5 Macro Financial Monitoring Group (MFMG) setting bodies. 4.5.1 The Macro Financial Monitoring Group has been 4.3.4 During the year 2021-22, considering the travel set up in 2012 under the Chairmanship of the Chief restrictions relating to Covid-19, virtual meetings of the Economic Adviser. The Group aims at keeping track of FSB Plenary were held on June 17 2021, June 22 2021, the macroeconomic and financial developments, identifying September 28, 2021 and October 18, 2021. The last vulnerabilities, and providing early warning signals. The meeting of the Plenory on November 18, 2021 was held in Group has held 24 meetings till date. The last meeting of hybrid mode. SCSI virtual meetings were held on May 17, the MFMG was held on August 25, 2021 under the 2021, September 16, 2021 and October 6, 2021, chairmanship of the CEA which was attended by Senior November 4, 2021 and December 2, 2021.Besides, two officials of the Ministry of Finance; Senior Resident virtual meetings of the RCG Asia was held on May 28, Representative, IMF India; and officials of financial sector 2021 and November 29, 2021 and RCG Workshop on Libor regulators. The Group discussed several contemporary Transition was held on September 29, 2021. FSB’s financial sector issues. EMDE’s Forum meeting was held on November 17, 2021. All these meetings were attended by representatives of 4.6 Computer Security Incident Response Team- DEA at suitable levels. Finance Sector (CSIRT-Fin) 4.3.5 In addition to these regular meetings, FSB also set 4.6.1 In 2021-22, Computer Security Incident Response up a working group on thematic peer review of corporate Team-Finance Sector (CSIRT-Fin) operating under the debt workouts to support COVID-19 response efforts by Indian Computer Emergency Response Team (CERT-In) examining members' practices, experiences and lessons within the Ministry of Electronics and Information on out of court debt workouts (OCWs), and the Technology (MeitY), entered its second year of operations. implications for financial stability. Senior Economic Adviser CSIRT-Fin is assigned the responsibility for coordinating (FS&CS) is a member from India in the peer review group and supporting the response to a computer security event and participated in various meetings of the group held or incident within the financial sector. CSIRT-Fin is the during 2021-22. Continuous engagement was maintained incident response force which focuses on mitigation through various virtual meetings/ conference calls of processes, providing on-site awareness, expertise, and Plenary, SCSI, RCG, Thematic peer review group etc. and recovery oversight. CERT-In is providing the requisite inputs on surveys and reports circulated by FSB were leadership for the operations of CSIRT-Fin under its provided in consultation with the regulators. umbrella. 21Annual Report 2021-2022 5. Financial Sector Reforms and non-legislative aspects of the FSLRC recommendations Legislation Division are broadly of the nature of governance enhancing principles for stronger consumer protection and greater 5.1 Introduction transparency in the functioning of financial sector 5.1.1 The Financial Sector Legislative Reforms regulators. It features following set of changes, which Commission (FSLRC), set up on 24th March, 2011 for re- renders it implementable: writing the financial sector laws to bring them in harmony i. The RBI will continue to exist, although with with the current requirements, submitted its Report to the modified functions; Government on 22nd March, 2013. The Report is in two ii. The existing SEBI, FMC, IRDA, and PFRDA will parts: Volume I titled “Analysis and Recommendations” be merged into a new UFA; and Volume II titled “Draft Law” consisting of the draft Indian Financial Code (IFC). The Commission, inter alia, iii. The existing SAT will be subsumed into the FSAT; recommended a non-sectoral, principle-based legislative iv. The existing DICGC will be subsumed into the architecture for the financial sector, by restructuring Resolution Corporation; existing regulatory agencies and creating new agencies, v. A new FRA will be created; wherever needed, for better governance and accountability. vi. A new PDMA will be created; and 5.1.2 A new Division, namely, FSLRC Cell was created in the year 2013 to process the implementation of the vii. The existing FSDC will become a full-fledged FSLRC Report with the following mandate: statutory agency, with modified functions. a. To firm up the views of the Government on the 5.4. Implementation Status of the recommendations of the FSLRC following due recommendations of the FSLRC consultative process with all the concerned 5.4.1 The status and next steps on the implementation stakeholders, Regulators/Ministries/State of the recommendations of the FSLRC are as follows:- Governments/Union Territories and public at large; i. As has been agreed to in the meetings of the b. To implement the recommendations of the FSDC, the financial sector regulatory agencies FSLRC, duly approved by the Government; and are implementing the governance enhancing, c. To deal with administrative and establishment non-legislative recommendations of the FSLRC matters relating to FSLRC. on voluntary basis. A MIS Portal was developed and inaugurated by FM in May, 2015 to put in 5.1.3 In September, 2017, it was decided to rename place an appropriate mechanism to measure the the FSLRC Division as Financial Sector Reforms and benchmark compliance for each Regulator/ Legislation (FSRL) Division with (i) Legislative Reforms Board. The MIS Portal has been modified in and (ii) Financial Sector Reforms Sub-Divisions. consultation with the Regulators to remove 5.2. Financial Sector Legislative Reforms several difficulties faced by the Regulators in Commission- Main recommendations updating the compliance status on the Portal. 5.2.1 The Report of FSLRC was placed in the public The Regulators have started submitting their domain on 28th March, 2013. The same was examined responses on the MIS Portal. and discussed in various meetings of the Financial Stability ii. A Financial Sector Regulatory Appointment and Development Council (FSDC) chaired by the Finance Search Committee (FSRASC) has been created Minister. The recommendations of the FSLRC can broadly for recommending names of suitable persons for be divided into two parts - Legislative and Non-Legislative. appointment to board level positions of financial The legislative aspects of the recommendations relate to sector regulatory bodies with the approval of the revamping the legislative framework of the financial sector ACC on 24th November, 2015. The FSRASC has regulatory architecture by a non-sectoral, principle-based been reconstituted on 9th June, 2017. This would approach and by restructuring existing regulatory agencies bring about uniformity in the selection of board and creating new agencies wherever needed. members of financial sector regulators, which 5.3. Recommendations on the Financial was one of the recommendations of the FSLRC Regulatory Architecture on the broad structure of such regulators. 5.3.1 The Commission has recommended a seven iii. As regards the establishment of a unified financial agency regulatory architecture namely, Reserve Bank of agency for the organised trading, by way of an India, Unified Financial Agency, Financial Sector Appellate incremental reform effort, the Forward Markets Tribunal, Resolution Corporation, Financial Redress Commission (FMC) has been merged with the Agency, Public Debt Management Agency and Financial Securities and Exchange Board of India (SEBI) Stability and Development Council in the draft law- Indian with effect from 28th September, 2015 to achieve Financial Code to replace a number of existing laws. The the convergence of regulations of the securities 22Department of Economic Affairs I market and the commodity derivatives markets. Parliament. The Bill provided for establishment of a FMC stands abolished and the Forward Contracts specialized Resolution Regime for financial sector entities. (Regulation) Act, 1952 has been repealed. The enactment of the Bill would have empowered the However, there is no consensus on merging the Resolution authority to contribute to the stability and existing financial sector regulators into a single resilience of the financial system by carrying out speedy Unified Financial Agency. and efficient resolution of financial firms in distress, providing deposit insurance to consumers of certain iv. The Task Forces for transforming the existing categories of financial services, monitoring the Systemically Securities Appellate Tribunal (SAT) into the Important Financial Institutions and protecting the Financial Sector Appellate Tribunal (FSAT) and consumers of financial institutions and public funds to the for establishing new agencies namely, Resolution extent possible. The FRDI Bill was withdrawn from the Corporation (RC), Public Debt Management Parliament on 7th August, 2018 owing to concerns raised Agency (PDMA) and Financial Data Management by the stakeholders’ on certain provisions of the FRDI Bill Centre (FDMC) were set up on 30th September, for comprehensive re-consideration and re-examination. 2014. These Task Forces submitted their reports during June 2015. Another Task Force for creating Accordingly, work on consolidating all the laws relating to a sector-neutral Financial Redress Agency (FRA) resolution of financial sector entities in one law and provide that was set up on 5th June, 2015 as announced a specialised resolution mechanism to deal with in the Budget Speech 2015-16 submitted its bankruptcy situations in most of the financial sector Report on 30th June, 2016. Its Report is under entities, such as, banks, insurance companies, FMIs and examination. select financial sector entities is under examination. v. Apart from inviting comments on the FSLRC c. Establishment of an independent Financial Data Report and the Draft IFC, the Department of Management Centre: Economic Affairs in collaboration with the Institute A centralised data centre named as Financial Data of Company Secretaries of India (ICSI) organised Management Centre (FDMC) is proposed to be set up a number of workshops and seminars on specific under the aegis of the Financial Stability and Development areas of the IFC for building consensus on the Council (FSDC) that will be used for analysis of financial Draft. Work on fine tuning the Draft IFC with stability and related issues. Subsequent to the FSLRC comments of stakeholders suitably incorporated recommendation on creation of a statutory Financial Data to make it legally flawless was initiated and the Management Centre (FDMC), Government constituted a Draft IFC was revised in the light of the comments Task Force on FDMC which, inter alia, recommended to received and hosted on the website of the Ministry establish the FDMC. Strengthening the institutional of Finance on 23rd July, 2015, inviting comments mechanism for financial stability analysis is under of stakeholders by 8th August 2015. Moving the examination. Indian Financial Code (IFC) recommended by the FSLRC in totality, after due consideration, is likely d. Establishment of an independent Public Debt to take time. Key aspects of the IFC being fast- Management Agency: tracked are as follows:- An independent Public Debt Management Agency (PDMA) a. Financial Sector Appellate Tribunal: is proposed to be set up for managing Government‘s debt and cash balance, etc. To this effect, the Government The Securities and Exchange Board of India Act, 1992 set up a Public Debt Management Cell (PDMC) on 4th was amended through the Finance Act 2017, for upgrading/ October, 2016, as an interim arrangement before setting enhancing the capacity of the Securities Appellate Tribunal up of an independent and statutory debt management (SAT) to hear appeals relating to the Insurance and Pension Agency namely, Public Debt Management Agency sectors also and for providing for multiple benches. This (PDMA) of India, in due course. This interim arrangement would facilitate in moving towards a Financial Sector will allow separation of debt management functions from Appellate Tribunal, which was recommended to be the RBI to PDMA in a gradual and seamless manner, without Appellate Tribunal for the entire financial sector. causing market disruptions. A debt database will be b. Establishment of a comprehensive resolution required for proper handling of public debt related framework for the financial sector: responsibilities. Phase-I of the work, involving preparation of FRS, SRS and Prototype is complete. Work on selection An announcement was made in the Budget Speech of of vendor for development of application is being initiated 2016-17 to frame a comprehensive Code on Resolution of by the Budget Division, DEA, which is assigned the task Financial Firms and introduce it as a Bill in the Parliament to initiate necessary steps for the setting up of PDMA. during 2016-17. The Financial Resolution and Deposit Insurance Bill, 2017 (the Bill) was introduced in the Lok e. Institutionalised and Statutory Monetary Policy Sabha on 10th August 2017 and referred to a Joint Framework: Committee of Parliament for making a Report to the 23Annual Report 2021-2022 (i) FSLRC has recommended establishment of a Central Government. Accordingly, the MPC was statutory and an institutionalized framework to constituted and notified in the Gazette of India conduct monetary policy, including the creation Extraordinary dated September 29, 2016. MPC of a Monetary Policy Committee that would was re-constituted and notified in the Gazette of determine the policy interest rate. The Reserve India Extraordinary dated October 5, 2020 as Bank of India Act, 1934 (RBI Act) has accordingly follows: been amended by the Finance Act, 2016, to a. Governor of the Bank—Chairperson, ex officio; provide for a statutory and an institutionalized b. Deputy Governor of the Bank, in charge of framework for a Monetary Policy Committee, for Monetary Policy—Member, ex officio; maintaining price stability, while keeping in mind the objective of growth. The Monetary Policy c. One officer of the Bank to be nominated by the Committee is entrusted with the task of fixing the Central Board—Member, ex officio; benchmark policy rate (repo rate) required to d. Dr. Shashanka Bhide, Senior Advisor, Research contain inflation within the specified target level. Programmes, National Council of Applied A Committee-based approach for determining the Economic Research (NCAER), —Member Monetary Policy will add value and transparency to monetary policy decisions. The meetings of e. Dr. Ashima Goyal, Professor, Indira Gandhi the Monetary Policy Committee shall be held at Institute of Development Research (IGIDR), and least 4 times a year and it shall publish its Part Time Member, Prime Minister’s Economic decisions after each such meeting. Advisory Council (PMEAC) — Member (ii) Provisions of the RBI Act relating to the chapter f. Dr. Jayanth R. Verma, Professor, Indian Institute on Monetary Policy have been brought into force of Management (IIM), Ahmedabad — Member through a Notification in the Gazette of India (iv).The Members of the Monetary Policy Committee Extraordinary on June 27, 2016. The Rules referred to in sub-paragraphs (d) to (f) above would governing the Procedure for Selection of Members hold office for a period of four years or until further of Monetary Policy Committee and Terms and orders, whichever is earlier. Conditions of their Appointment and factors (v). The Reserve Bank of India Monetary Policy constituting failure to meet inflation target under Committee and Monetary Policy Process the MPC Framework have also been notified in Regulations were framed and notified on July 14, the Gazette of India, Extraordinary on June 27, 2017 for ensuring full operationalisation of the 2016. The Government, in consultation with the MPC. The Regulations were subsequently laid in RBI, notified the inflation target in the Gazette of the Lok Sabha on August 4, 2017 and Rajya Sabha India Extraordinary dated August 5, 2016, for the on August 8, 2017. first five-year period ending on the March 31, 2021. Keeping in mind the primacy of price stability in 5.5 Other Legislative Reforms the wake of supporting macroeconomic policies 5.5.1 Providing a Legal Framework for Bilateral to boost the economic recovery from COVID-19 Netting of Qualified Financial Contracts induced slowdown, and to further strengthen 5.5.1.1 An unambiguous legal framework for enforceability credibility of monetary policy in guiding the inflation of close-out netting reduces credit exposure of banks and expectations in the economy, the Government, other financial institutions from gross to net exposure, after consultation with the RBI, has decided to results in substantial capital saving on such exposure and continue with the existing inflation target for the reduces the overall systemic risks contributing to the next five-year period starting from April 1, 2021 to financial stability. That is why many international standard March 31, 2026, as under: setting bodies have recommended that a legal basis for Inflation Target : 4 per cent. close-out netting may be provided in law. Upper tolerance level : 6 per cent. 5.5.1.2 In the absence of any legally unambiguous basis Lower tolerance level : 2 per cent. for finality of bilateral netting for certain entities, bilateral netting of mark-to-market values arising on account of OTC The Inflation target has been notified by the Government derivatives is not permitted, forcing the banks to provide in the Gazette of India, Extraordinary dated March 31, capital on gross exposure basis for such derivatives. 2021. Further, the emerging global consensus (in G20 and Bank (iii) As per the provision of section 45ZB of the RBI for International Settlement) of imposing higher margins Act, 1934, out of the six Members of Monetary for non-centrally cleared OTC derivatives (NCCDs) might Policy Committee, three Members will be from lead India to also adopt the global norms of risk mitigation the RBI and the other three Members of Monetary and also to strengthen the resilience of the financial Policy Committee (MPC) will be appointed by the system. The exchange of margin for NCCDs on gross basis 24Department of Economic Affairs I would be very inefficient and would seriously disrupt the  Matters related to infrastructure financing, OTC derivatives market, which account for about 40% of including development of Infrastructure the total derivatives market. Instruments and promotion of investments in infrastructure sectors. 5.5.1.3 Thus, with a view to address the inadequacies in the present legal framework, the Government formulated  Matters relating to Infrastructure Debt Funds a Bill, namely, ‘The Bilateral Netting of Qualified Financial (IDFs), Real Estate Investment Trusts (REITs)/ Contracts Bill, 2020’ to lay down the mechanism for close- Infrastructure Investment Trust (InvITs), Tax Free out netting of the financial contracts. The Bill was passed Bonds, Municipal Bonds and other instruments by the Parliament in September, 2020. The Bilateral meant for infrastructure financing. Netting of Qualified Financial Contracts Act, 2020 (“The  Matters relating to SPV for Credit Enhancement Act”) as published in the Gazette of India Extraordinary of Infrastructure Projects and New Credit Rating on 28th September, 2020. The Act has been brought into System for Infrastructure. force with effect from 1st October, 2020.  All International engagement on infrastructure 5.5.1.4 The netting law for bilateral financial contracts financing (other than PPPs). would result in substantial capital saving for banks, which,  Matters relating to issues of Municipal Bonds by in turn, would enable banks to provide price efficiency in Urban Local Bodies (ULBs) for PPP and Non-PPP offering hedging instruments to business in India, catalyse Projects. the corporate bond market (through developing the credit  Model Tripartite Agreements (MTA) for sectors default swap market), promote ease of doing business such as Road, Ports, Airports. and provide equal cost advantage to Indian financial sector.  Matters relating to Infrastructure Working Group The market participants also expect that a bilateral netting (IWG) of G-20. law would further develop the financial market in India. The law will contribute significantly to strengthening the  Matters relating to meetings of Board of Directors financial stability of the country and would facilitate in of IIFCL, AIAHL, NIIFTL as JS (IPP) is Government nominee on its Board of Directors; further developing the financial market, especially the financial derivatives market and corporate bond market. 1.2 Major Policy Initiatives/ Achievements: 6. Infrastructure Policy & Planning 1.2.1 G20 Infrastructure Working Group (G20-IWG) Division Infrastructure Working Group (IWG) is a working group 6.1 Infrastructure Policy & Planning (IPP) Division is under the G20 Finance Track that drives G20’s infrastructure agenda. The IWG aims to provide analysis headed by Shri Peeyush Kumar, Joint Secretary. The and advice to policymakers to address the impediments Division has the following Units: around the development of infrastructure as an asset class Finance Unit (FU) in order to facilitate investment flows from private and official Policy & Planning Unit (PPU) sources into infrastructure. Under G20 Italian presidency, 6 meetings of the Capacity Building Unit (CBU) Infrastructure Working Group were held. Apart from Each Unit is headed by Adviser/Director/Deputy continuing previous work under IWG on quality Secretary and assisted by Deputy Director/Assistant infrastructure investment indicators, G20 action plan, Director etc. infrastructure data initiative, etc. , the IWG worked on four 1. Finance Unit (FU) new workstreams such as sustainable infrastructure- which included increasing emphasis on ESG and circular 1.1 Major Functions: economy in infrastructure, inclusive infrastructure, Finance Unit deals with financing requirements maintenance and resilience, digital guidelines for financing of infrastructure including conceiving new initiatives related Infrastructure. Key deliverables included the policy agenda to infrastructure financing and promotion of investment in on maintenance and resilience, digital guidelines for fostering broadband connectivity which were endorsed by infrastructure sectors. The Unit deals with: the G20 FMCBG and leaders.  Financial Sector Reforms for long-term availability Further, the first G20 Infrastructure Working Group (IWG) of financing from Domestic sources & Foreign meeting under the Indonesian Presidency was held on capital, Development Finance Institutions and 20-21st January, 2022 virtually. Shri Peeyush Kumar, Joint Financial Markets. Secretary, IPP Division, DEA being Head of the Indian  Infrastructure Financing from Fiscal resources, Delegation at G20 IWG represented India at the said PSE’s IEBR and Private sector, including from meeting and Shri Aman Garg, Deputy Secretary, IPP National Monetization Plan Division, DEA participated as a delegate. 25Annual Report 2021-2022 1.2.2 BRICS Task Force on Public Private  NIP monitoring framework & NIP Implementation Partnership (PPP) and Infrastructure  Analysing non-PPP investment proposals India had assumed the chairmanship of the BRICS concerning Road Transport & Highways, Ports, countries in 2021 and had also assumed the chairmanship Shipping, Inland Water Transport, Railways, of the BRICS Task Force on Public Private Partnership Telecommunications, Civil Aviation & Urban (PPP) and Infrastructure. Development sectors India hosted the first meeting of the BRICS Task Force on  Institutions: National Industrial Corridor PPP and Infrastructure under India’s Presidency on 9th Development Corporation (NICDC) Limited April, 2021. 2nd meeting of the BRICS Task Force on PPP (erstwhile Delhi Mumbai Industrial Corridor and Infrastructure was held successfully on 10th August, Development Corporation (DMICDC) Limited), 2021. The meeting was held virtually and attended by the National Industrial Corridor Development and Ministry of Finance delegates from Brazil, Russia, China Implementation Trust (NICDIT) National Highways and South Africa. Authority of India (NHAI), Digital Communications Commission (erstwhile Telecom Commission). During the Finance Ministers and Central Bank Governors meeting held on 26th August, 2021, the report titled ‘Social  Ministries/Departments: M/o Road Transport & Infrastructure: Financing and Use of Digital Technologies’ Highways, M/o Ports, Shipping & Waterways, M/ was endorsed. The report has also been endorsed by the o Civil Aviation, M/o Railways, M/o Housing and leaders at the BRICS leaders’ summit held om 9th Urban Affairs, Dept. Of Telecommunications, and September, 2021. Dept. Of Posts. 1.2.3 Real Estate Investment Trusts (REITs)/ 2.2 Major Policy Initiatives/ Achievement: Infrastructure Investment Trust (InvITs) 2.2.1 Harmonized Master List of Infrastructure Sub- REITs/ InvITs are trust-based structures that maximize sectors returns through efficient tax pass-through and improved In April, 2021, “Exhibition-cum-Convention Centre” is governance structures. Guidelines/Regulations for InvITs included in the Harmonized Master List of Infrastructure and REITs were notified by SEBI on 26 September, 2014. Sub-sectors by insertion of a new item in the category of SEBI regulations permit InvITs/REITs to have a single tier “Social and Commercial Infrastructure”. The updated HML structure comprising the Trust and Special Purpose list now includes 35 Infrastructure sub sectors under 5 Vehicle (SPV) or a two-tier structure comprising the Trust, categories i.e. 1. Transport and Logistics, 2. Energy, 3. Holdco (Holding Company) and SPV. As on date, 10 InvITs Water and Sanitation, 4. Communication and 5. Social and three REITs have been successfully launched and and Commercial Infrastructure. The inclusion of any sector have collectively raised around Rs.85,000 crore. in the HML enables it to avail infrastructure lending at 1.2.4 Infrastructure Debt Funds (IDFs) easier terms with enhanced limits, access to larger IDFs were created essentially to act as vehicles for amounts of funds as External Commercial Borrowings refinancing existing debt of infrastructure companies, (ECB), access to longer tenor funds from insurance thereby creating fresh headroom for banks to lend to fresh companies and pension funds and be eligible to borrow infrastructure projects. IDFs were expected to channelize from India Infrastructure Financing Company Limited (IIFCL) long term funds from insurance and pension funds, etc. sovereign wealth funds etc to supplement lending for 2.2.2 National Infrastructure Pipeline (NIP) infrastructure projects by commercial banks which are National Infrastructure Pipeline (NIP) National Infrastructure increasingly being constrained by their asset-liability Pipeline aims to improve project preparation and attract mismatch and exposure limits. investment into infrastructure. To draw up the NIP, a High- IDFs are set up by sponsoring entities either as NBFCs – Level Task Force was constituted under the chairmanship which are regulated by the RBI and as Mutual Funds which of the Secretary, Department of Economic Affairs (DEA). are regulated by SEBI. As on date, four IDFs under NBFC The Final Report on National Infrastructure Pipeline for route and two under MF route are in operation. FY 20-25 of the Task Force was released by the Hon’ble 2. Policy & Planning Unit (PPU) Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman on 29th April, 2020. 2.1 Major Functions: NIP has been made on a best effort basis by aggregating  Infrastructure Investment Policy the information provided by various stakeholders including  Institutional Mechanism on the Harmonized line ministries, departments, state governments and private Master List of Infrastructure Sub-sectors sector across infrastructure sub-sectors, as identified in  NIP planning, periodic review and updating the Harmonized Master List of Infrastructure. All projects (Aligning with Gati-Shakti vision, prioritizing the (Greenfield or Brownfield, under conceptualization or under projects and Anchoring to India@2047 vision) implementation or under Development) of project cost 26Department of Economic Affairs I greater than Rs. 100 crore per project were sought to be year. All these Investment Proposals were related to a captured. DEA works in close coordination with Invest India, number of infrastructural projects implementation of which line Ministries/Departments and State Governments to would play an important role in improvement in the monitor the progress of projects under the NIP. infrastructure and would automatically bring socio- NIP was launched with 6,835 projects worth around 111 economic growth in the region where the project would be Lakh Crore, which has expanded to over 9,000 projects implemented. covering 34 sub-sectors. NIP portal is being maintained 3. Capacity Building Unit (CBU) and regularly updated by Invest India Grid (IIG) in 3.1 Major Functions: consultation with the stakeholders. The same may be A new Capacity Building Unit (CBU) has been accessed at: https://indiainvestmentgrid.gov.in/national- created within IPP Division vide office order dated 25th infrastructure-pipeline. September 2021. CBU is entrusted with the work related 2.2.3 Accelerating capital expenditure by to Capacity Building in Central Ministries/State Infrastructure Ministries Governments and other Agencies through trainings/ Hon’ble PM has, time and again, stressed on the workshops/seminars for project preparation, design and importance of infrastructure development as an structuring, project appraisal, project financing, pre-project indispensable cornerstone of India’s progress. Hon’ble activities, procurement, implementation planning and Finance Minister, while reviewing the capital expenditure management etc. performance of the Ministries and their CPSEs on Considering the need for a larger programmatic 29.06.2021 emphasized that enhanced CAPEX will play approach to improve capacity it is desirable to provide a critical role in revitalizing the economy post-pandemic training/workshop for officials executing projects and and encouraged the Ministries to front-load their capital drafting concessions/contracts etc. in order to have expenditure. Ministries were also requested to aim to rigorous understanding of the frameworks, principles, achieve more than their CAPEX targets. regulations guiding our Infrastructure ecosystem. Such a Regular review meetings by line Ministries and Cabinet programmatic training design is required to not only Secretariat have been undertaken to fast-track capital enhance the appraisal of capacity of the officials working expenditure. Union Finance Minister also took review at the ground level but also support in better meetings of major infrastructure Ministries/ Departments conceptualization and structuring of projects. This on Capital Expenditure plans and suggested measures to becomes much more important for Public Private expedite infrastructure investment, including front-loading Partnership (PPP) projects where expertise is required in of their capital expenditure. To step up investment, areas such as PPP Structuring, Project Appraisal and infrastructure and growth, Union Finance Minister Approval Process, Value for money, cost benefit analysis, interacted with Chief Ministers and Finance Ministers of Project Selection approaches, Data analysis and Legal States/ Lt Governors of UTs on 15.11.2021. bidding clauses etc. 2.2.4 Investment Proposals The capacity building programmes are also 16 DIB/PIB Memorandum, 78 SFC/EFC Memorandum, instrumental in stirring necessary dialogue between and 13 CCEA/Cabinet/GoM Notes received from line Ministries and State Governments to learn from pitfalls Ministries/Departments have been examined during the and success of each other’s project experiences. 27Annual Report 2021-2022 7. Investment and Digital Economy Division To promote Foreign Direct Investment (FDI), the Government has put in place an investor-friendly policy 7.1. Investment Division : Investment Division which is transparent, predictable and easily comprises of four different sections. The major functions comprehensible. Except for a small negative list, most of the Investment Division are as under: sectors have been made open for 100% FDI under the 1. To provide policy support on Foreign/Domestic Automatic route. FDI under the automatic route does not Investment policies including new policy require prior approval either by the Government of India initiatives in Foreign Direct Investment (FDI)/ or the Reserve Bank of India (RBI). Investors are only Domestic Investment (DI) Policy besides FDI/DI required to notify and file documents with the concerned policy clarifications & related matters Regional Offices of RBI. Under the Government approval route, applications for FDI proposals are considered and 2. Foreign Exchange aspect related to Gold approved by the respective subject matter Ministries on including Gold Monetisation Scheme, Indian Gold Coins etc. the Foreign Investment Facilitation Portal (FIFP), the new online single point interface of the Government of India 3. To coordinate with Ministry of Steel, Ministry of for investors to facilitate Foreign Direct Investment. Micro, Small & Medium Enterprises (MSME) , Ministry of Textiles, Ministry of Electronic and DEA is entrusted with the power to approve FDI Information Technology, Department of Chemical proposals (as per the extant FDI Policy, 2020) for: and Petro Chemicals, Department of Investment (a) "Financial services which are not regulated by and Public Asset Management (DIPAM), : any Financial Sector Regulator or where only part Department for Promotion of Industry & Internal of the financial services activity is regulated or Trade (DPIIT), Department of Public Enterprises where there is doubt regarding the regulatory (DPE), Department of Commerce and oversight"; and Department of Heavy Industry on investment issues and also offering them comments / (b) Applications for foreign investment into a Core suggestions on various matters as per need of Investment Company or an Indian company the Indian economy. engaged only in the activity of investing in the 4. To negotiate and conclude Bilateral Investment capital of other Indian Company/ies. Treaties (BITs) and Investment Chapter of FTAs/ Government of India has reviewed the extant FDI policy CECA/CEPA with other countries and regional on various sectors and has made following amendments blocks on the basis of the revised Model Bilateral (in the year 2021) in the extant Consolidated FDI Policy Investment Treaty (BIT) Text which was approved 2020 (FDI Policy), effective from October, 2020 and as by the Cabinet on 16th December, 2015. amended from time to time: 5. Matter related to equity investments from both a. Review of the FDI policy on downstream domestic and international sources for investments made by Non-resident Indians (NRIs): infrastructure development in commercially viable projects, both greenfield and brownfield, GoI vide Press Note 1 (2021) reviewed FDI policy in including stalled projects through National relation to investments made by an Indian company Investment and Infrastructure Fund (NIIF). owned and controlled by Non-resident Indians on a non- 7.2 Section-wise Allocation of Work repatriation basis and in order to provide clarity on downstream investments. A) FDI and ODI (Foreign Direct Investment & Overseas Direct Investment) Policy Section b. FDI in Insurance Sector The main function of this section is to provide policy The GoI vide Press Note 2 (2021) increased the support on Foreign Investment policies including new permissible FDI limit from 49% to 74% in Insurance policy initiatives in Foreign Direct Investment (FDI) Policy companies along with other applicable condition. besides FDI policy clarifications & related matters. This c. FDI in Petroleum and Natural Gas Sector Section primarily co-ordinates with DPIIT, DFS, RBI and SEBI on foreign investment issues and also offers them The GoI vide Press Note 3 (2021) permitted foreign comments / suggestions on any amendment in FDI policy investment up to 100% under the automatic route in cases as per the need of the Indian economy. It also suggests where the government has accorded 'in-principle' measures for improving investment environment in India approval for a strategic disinvestment of a PSU engaged with respect to FDI policy. in petroleum and natural gas sector. 28Department of Economic Affairs I d. FDI in Telecom Sector in the extant FDI policy. GoI vide Press Note 4 (2021), has permitted 100% FDI Consequently, FDI inflows have increased manifold in telecom sector through automatic route for all telecom in the past five years as shown in data: services permitted by DoT except cases requiring prior government approval under the provision of para 3.1.1 S. Financial Year FOREIGN DIRECT INVESTMENT INFLOWS No. (April-March) (Amount in US$ Billion) Equity Inflows Reinvested Other Total FDI Automatic unincorporated Earnings capital and bodies Approval route 1 2016-17 43.48 1.22 12.34 3.18 60.22 2 2017-18 44.86 0.66 12.54 2.91 60.97 3 2018-19 44.37 0.69 13.67 3.27 62.00 4 2019-20 (P) 49.98 1.76 14.17 8.48 74.39 5 2020-21 (P) 59.64 1.45 16.93 3.95 81.97 6 2021-22 (P) 31.15 06..6898 8.37 2.65 42.86 (Up to September, 2021) Cumulative FDI 563.66 19.35 179.60 44.06 806.69 inflows in India since 2000 (up to September, 2021) Source: DPIIT B) INTERNATIONAL INVESTMENT TREATIES AND The new BIT text aims to provide appropriate protection to foreign investors in India and Indian investors in the FRAMEWORK (IITF) foreign country, in the light of relevant international The main function of IITF Section is to negotiate and precedents and practices, while maintaining a balance conclude Bilateral Investment Treaties (BITs) with other between investor's rights and Government obligations. countries on the basis of the revised Model Bilateral Achievements Investment Treaty (BIT) Text which was approved by the 2. Based on India’s Model BIT 2015, India has Cabinet on 16th December, 2015 and to handle the Investor State Dispute Settlement (ISDS) notices/cases signed the following Treaties/Agreement with other arising out from BIT/FTAs signed with foreign countries. countries/Jurisdictions: S.No. Country and Name of Agreement Date of Signing of the Agreement 1. Belarus: Bilateral Investment Treaty 24th September, 2018 2. Brazil: Investment Cooperation & Facilitation 25th January, 2020 Treaty 3. Kyrgyz Republic: Bilateral Investment Treaty 14th June, 2019 4. Taiwan: Bilateral Investment Agreement 18th December, 2018 between between India Taipei Association (ITA) in Taipei and Taipei Economic and Cultural Center (TECC) in India 3. India is currently discussing and negotiating Mexico, Hong Kong, Mauritius, San Marino, Argentina, Bilateral Investment Treaties at various stages with Iran, Armenia, Azerbaijan, Ethiopia, Bolivia, Cote d'Ivoire, Morocco, UAE, Switzerland, Oman, Israel, Cambodia, Kuwait, Uzbekistan, Philippines, Zimbabwe, Egypt, Qatar, Tajikistan, Russia, USA , Saudi Arabia, Ukraine, Thailand Australia, Zambia, Turkmenistan and others . 29Annual Report 2021-2022 C) FOREIGN TRADE & SERVICES (FT) SECTION Monetisation Scheme on 5th November, 2015. The main function of Foreign Trade (FT) section of The Gold Monetization Scheme comprise of the investment division is dealing with the Policy matters 'Revamped Gold Deposit Scheme' and the 'Revamped related to Gold viz. Gold Monetisation Scheme (GMS), Gold Metal Loan' scheme, linked together. The minimum Indian Gold Coin (IGC) and Gold Metal Loan (GML), deposit at any one time shall be 10 grams of raw gold Drafting Policy for promotion of Gold as a Financial Asset (bars, coins, jewellery excluding stones and other metals). Class and providing advice on references received from There is no maximum limit for deposit under the Scheme. Ministry of Commerce, Heavy Industries and MSME and Depositors may avail two options for deposit: coordination within Investment Division.  Short term bank deposit (1-3 years) and 2. Gold Monetization Scheme: With a view to mobilize the idle gold held by households and institutions in the  Medium and Long Term deposit (5-15 year) country; and put this gold to productive use, e.g., by Till December 2021, approximately 25,080 kilograms of making available gold for the gems and jewellery sector; gold have been mobilised under GMS. The details are and, over time to reduce the country's dependence on as under: the import of gold, Government launched the Gold Details of Gold Mobilized under GMS (5th Nov, 2015 to 31st Dec 2021) Sl.No. Types of Deposit Deposited gold as on 31.1120.2021 (in Kgs) 1 Cumulative Quantity of Gold (in kgs) 25,080.33 a Short Term Gold Deposit 7,255.82 b Medium Term Gold Deposit 6,125.58 c Long Term Gold Deposit 11,698.92 2 Number of participating Banks 10 3 Number of depositors 3,853 3. Indian gold Coin domestically manufactured (Make in India) standard gold coins/bars in different denominations. Till The Indian Gold Coin (IGC) is manufactured out of December, 2021, 793.1 Kgs of Indian Gold Coin domestic gold (received under GMS) and is has been sold out as per summary placed below: IGC SALES Details (5th Nov 2015 to 31st Dec 2021) Turnover Weight Qty. Sold Denomination-wise details ( in number) (In crores) Sold (In (in Nos.) Kgs) 5 GM 10 GM 20 GM Grand 265.3 793.1 87,740 38,202 38,865 10,673 Total D) DOMESTIC INVESTMENT& DIGITAL ECONOMY projects. Anchored by the GOI with a 49% stake, the SECTION mandate for NIIF is also to raise the balance 51% from international and domestic institutional investors over A. National Investment and Infrastructure Fund (NIIF) time. 1. Background: National Investment and Infrastructure Fund Trustee Ltd. The establishment of the NIIF was announced vide para ("NIIF Trustee Ltd."), a 100% Government of India (GOI) 47 of the Budget Speech on 28th February 2015 and company, is the Trustee of NIIF managed funds. approved by the Union Cabinet on 28July 2015. It was As on date, three funds i.e. National Investment and envisaged that the NIIF would attract equity investments Infrastructure Fund (Master Fund), NIIF Fund of Funds- from both domestic and international sources for I and National Investment and Infrastructure Fund-II infrastructure development in commercially viable (Strategic Opportunities Fund) have been established projects, both greenfield and brownfield, including stalled under the NIIF platform. The funds are registered with 30Department of Economic Affairs I SEBI as Category II Alternative Investment Funds and collaborate for the production of green hydrogen managed on a day-to-day basis by National Investment in India. and Infrastructure Fund Ltd. ("NIIF Ltd."), a company c. Athaang Infrastructure Private Limited: NIIF registered under the Companies Act, 2013 and regulated MF has incubated an in-house roads sector by SEBI as a fund manager of these funds, with ~USD focused company and has built the initial 4.5 billion in assets under management. management team for it. The company has 2. Investments recently acquired two road assets, including the An overview of the three funds currently managed by NIIF Bangalore city-airport connector, and is Ltd. is as follows: evaluating many road projects pan-India. I. Master Fund d. IntelliSmart Infrastructure Private Limited: NIIF MF and Energy Efficiency Services Limited NIIF Master Fund (NIIF MF) is the largest India (EESL) have set up this company jointly for focused infrastructure fund. The Fund primarily implementation and operation of energy smart invests in operating assets in core infrastructure meters across the country. ~8 million smart sectors, such as transportation and energy, meters across 6 states are under installation, of through its portfolio companies. It successfully which ~2million are operational. The company achieved its final close in December 2020 and has recently won an order from the Assam achieved a size of INR equivalent of USD 2.34 government to install 0.6 million smart meters. billion, exceeding its original target of USD 2.1 II. Fund of Funds billion. Alongside GOI, the investors in the NIIF MF include Abu Dhabi Investment Authority NIIF Fund of Funds (NIIF FoF) is one of the (ADIA), UAE; Temasek, Singapore; largest India-dedicated Fund of Funds. It is AustralianSuper, Australia; Ontario Teachers' focused on building a portfolio of funds across Pension Plan (OTPP), Canada; CPP Investments investment strategies and in diversified sectors (CPPIB), Canada; PSP Investments, Canada; such as green energy, affordable and mid-income US International Development Finance housing, healthcare, social infrastructure, Corporation (DFC), United States; and select technology, consumer, and financial services. domestic institutional investors such as HDFC NIIF FoF closed its fund raising in September Limited, HDFC Life Insurance, HDFC Asset 2021. Anchored by the GOI, it has received Management Company, ICICI Bank, Kotak Life commitments from multilateral institutions Insurance and Axis Bank. including Asian Infrastructure Investment Bank The Fund's current portfolio consists of the following (AIIB), Asian Development Bank (ADB) and New investments: Development Bank (NDB). The Fund's current portfolio consists of 5 portfolio funds: a. Hindustan Infralog Private Limited: NIIF MF and DP World, Dubai have set up a ports and a. Green Growth Equity Fund: NIIF FoF and logistics company, Hindustan Infralog Private Foreign Commonwealth and Development Limited (HIPL), to consolidate and develop assets Office (FCDO) UK, anchored GGEF, India's across the entire value chain from ports to inland first climate focused fund which is expected logistics. In a span of three years, HIPL has to achieve a final close at USD 740 million become one of the largest players in inland (~INR5,000 crore), exceeding its original container logistics in the country. HIPL's portfolio target. GGEF is now the largest single- consists of ICDs/PFTs, FTWZs, container freight country climate-focused fund in emerging stations, cold chain facilities, container trains and markets. The Fund is managed by CTO licenses. EverSource Capital, a joint venture between Everstone Group and Lightsource BP. b. Ayana Renewable Power Limited: NIIF MF, GGEF invests in growth-oriented entities in Green Growth Equity Fund (GGEF) and CDC, the green infrastructure space in India and U.K. have invested jointly in this company has set up businesses in utility scale focused on the renewable energy sector in India. renewables, commercial and industrial The company currently has an operational distributed energy, waste management, e- capacity of approximately 1 GW and has another mobility and waste-water treatment. Its 2 GW under development/construction. Ayana companies have invested in electric buses has signed a Memorandum of Understanding in UP, a water treatment project in West with Greenstat Hydrogen India for acceleration Bengal under Namami Gange scheme, of hydrogen technology development and to amongst other projects. 31Annual Report 2021-2022 b. HDFC Capital Affordable Real Estate a. NIIF Infrastructure Finance Limited (NIIF Fund 2 (HCARE-2): NIIF FoF has IFL): NIIF SOF invested in NIIF IFL, a NBFC committed INR 660 crore to HCARE-2. The registered as an Infrastructure Debt Fund fund provides structured debt to developers with the Reserve Bank of India. NIIF IFL in the growing mid-income and affordable provides long term refinancing solutions to housing sector and is managed by HDFC operational infrastructure projects across the Capital Advisors. HCARE-2 has financed country that have completed at least one 78,000+ housing units, which are under year of satisfactory operations. various stages of development. b. Aseem Infrastructure Finance Limited c. Multiples PE Fund III: NIIF FoF is an anchor (AIFL): NIIF SOF also invested in an NBFC- investor in Multiples PE Fund III, a mid- IFC, Aseem Infrastructure Finance Limited market growth equity fund. NIIF FoF made (AIFL), which invests in projects across the a commitment of INR 878 crore to the Fund, infrastructure spectrum with a mix of catalysing capital from various multilateral operating, brownfield and greenfield assets. agencies, pension funds, other fund of funds c. AIFL and NIIF IFL work complementarily to and family offices. The Multiples PE Fund cover the full range of infrastructure debt III's mandate is to provide growth equity to financing in India. The total loan book size mid-market companies across sectors such (across both NBFCs) is ~INR 14,500 crore as healthcare, BFSI, education, technology, as on November 30, 2021, and there is no consumer etc. NPA position across portfolios of both the d. Somerset Fund II: NIIF FoF has committed companies. INR 125 crore to Somerset Indus Healthcare d. Manipal Hospitals: The Manipal Group has India Fund II (Somerset Fund II). The Fund 27 hospitals across India, with a key focus focuses on providing growth capital to on tertiary and quaternary care. This entrepreneurs of SME businesses operating investment will support Manipal Hospitals in the affordable healthcare segment. expansion plans in growing from a regional Through this fund, NIIF has invested into healthcare company to a leading pan-India hospitals in Tier 2 and 3 cities that are hospital chain that provides quality pioneering innovative models using healthcare services. technology to provide access to high quality healthcare solution. For example, the fund B. Special Window for Affordable and Mid- has invested in 4 hospitals in Rajasthan, Income Housing (SWAMIH) SWAMIH: including in Jaipur, Sawaimadhopur and I. Background: Jhunujhunu. The fund has recently also invested in a pharmaceutical contract The proposal to set up a 'Special Window' in the form of development and manufacturing AIF to provide priority debt financing for the completion organization ('CDMO') company. of stressed / stalled housing projects was approved by the Union Cabinet on November 06, 2019. The Special e. Arpwood Partners Fund I: NIIF FoF is an Window for Affordable and Mid-income Housing anchor investor in Arpwood Partners' (SWAMIH) Investment Fund I ("Fund") has been formed maiden fund and has committed to complete construction of stressed, brownfield, RERA approximately INR 600 crore to the Fund, registered residential developments that are in the which focuses on the mid-market buyout / affordable housing / mid-income category, are net worth control segment. positive and require last mile funding to complete III. Strategic Opportunities Fund construction. The Government of India is the sponsor of the fund and NIIF Strategic Opportunities Fund (SOF) is has committed a fund infusion of up to INR 10,000 crores targeting to invest in "national champion in the Special Window. Further investments will be companies" in important high growth sectors. brought in through institutional and private investors. The The Fund is currently raising funds and is in Fund has a target corpus of INR 12,500 crores with a discussion with select international and domestic greenshoe option of INR 12,500 crores. The Fund investors. So far, the Fund has raised achieved a first closing with 14 investors and a capital commitments from GOI and State Bank of India commitment of INR 10,037.5 crores on December 06, (SBI). NIIF SOF has made three investments 2019. so far: 32Department of Economic Affairs I The Fund invests in RERA-registered housing projects III. Current Status of Swamih Investment Fund I where 90% of Floor space index (FSI) is dedicated for The Fund has made ten drawdowns as of December 27, Affordable/ Mid-Income Housing, RERA carpet area of 2021 and called for a total INR 3,021.7 crores and all the units is less than 200 sqm and houses are priced investors have completed their capital contribution as below INR 2.0 crores in MMR, below INR 1.5 crores in required. NCR, Chennai, Kolkata, Pune, Hyderabad, Bangalore and Ahmedabad and below INR 1.0 crore in Rest of India. (a) Commitments and Investments by ALL The projects also have to be net-worth positive and at Investors (as on 20.12.2021) least 30% of the project costs has to be completed. II. Investment strategy of the Fund: Investor Committed Amount a. The Real estate market has bottomed out in 2017 (INR Cr) and is now on an uptrend. Affordable and Mid- Government of India 5,000 income housing has continued to clock sales and State Bank of India 1,250* has also received considerable support from the Life Insurance Corporation 1,250* Union Bank of India 500 government in terms of tax incentives. Thus, Indian Bank 400 there is an opportunity to invest to complete Punjab National Bank 400 construction of stressed projects. Market studies Canara Bank 400 have shown that INR 55,000 crores are needed Bank of Baroda 400 to complete construction of stressed net-worth Central Bank of India 400 positive projects. However, NBFC funding to the HDFC Limited 250 sector has dried up and thus there is a substantial Bank of India 100 deal flow of stressed projects that will need the Bank of Maharashtra 100 capital provided by the Fund Punjab & Sind Bank 75 SBICap Ventures 5 b. The Fund has the opportunity to provide priority Total 10,530 last-mile capital with seniority of charge on the asset and cash flows and to be repaid completely before any other projects debts are serviced. * Upto 10% of the Fund size Thus the Fund will be able to generate significant returns for the reduced risk profile of it seniority (b) All the investment and divestment decisions of in the capital structure. the Fund are taken by an Investment Committee comprising of the CIO and CEO of SVL, and upto c. The Investment Manager of the Fund is SBICAP 5 external members. As of December 21, 2021, Ventures Ltd. (SVL), an asset management the Investment Committee (IC) has held 63 company that is a wholly owned subsidiary of SBI meetings and the investment team has analysed Capital Markets Ltd. which in turn is a wholly several proposals that meet the Fund's criteria owned subsidiary of State Bank of India. and the overall status of the deals presented to the Investment Committee is as follows: Particulars (as on Dec 20, 2021) No. of Deal Project Total deals amount cost units (INR cr) (INR cr) Deals with Final IC approval 100 9,852 28,286 59,419 Deals with Preliminary IC approval 145 13,267 36,626 82,637 Total 245 23,119 64,912 142,056 Deals rejected 5 896 3,422 6,240 As on Dec 20, 2021, the Fund has disbursed INR 2,675.8 activated construction at 63 project sites and would assist crores in 61 deals where the aggregate committed in completing more than 38,600 homes. amount is in excess of INR 6,226 crores. This has 33Annual Report 2021-2022 (c) Actual Status of Commitments and Investments made by Fund (as on 20.12.2021) Sr. Deal Sanctione Disbursed Project Total No. d Amount Amount Cost Units (INR cr) (INR cr) (INR cr) 1 CCI Projects Pvt. Ltd. * 123.3 123.3 * 1,215 710 2 Shree Naman Developers Pvt 165 58 393 423 Ltd 3 Urban Land Management Pvt. 77 42 423 600 Ltd 4 Virgo Realtors Pvt Ltd 34 21 104 249 5 Macrotech Developers Ltd 306 75 760 1,165 6 SS Group Pvt Ltd 166.3 85 448 670 7 Bini Builders Pvt Ltd. 60.5 26 120 123 8 TDI Infracorp (India) Ltd 242 168 880 1,318 9 Ramprastha Promoters and 70 70 309 483 Developers Pvt. Ltd. 10 Subham Commercial 23 20 62 113 Developers 11 A R AMBOLI DEVELOPERS 52 25 103 227 PRIVATE LIMITED 12 Castles Vista Pvt Ltd 360 205 1,837 1,800 13 G R Realcon Pvt Ltd 89 50 241 353 14 Taruchaya Colonizers Pvt Ltd 55 31 140 376 15 Shree Vardhman Infrahome Pvt 31.3 26.5 259 575 Ltd 16 KRP Industries Ltd 38.8 22 93.5 244 17 Newa Technocity (I) Pvt Ltd 41 20 119.2 108 18 Aegis Value Homes Ltd 90 37 153 877 19 Modest infra Ltd. 65 50 157.6 716 20 Magus Consortium Orchid 24.7 14.19 64.7 112 Avenue Pvt Ltd 21 Parinee Contour Construction 39.5 28.5 240.5 289 Pvt Ltd 22 Pyramid Infratech Private 135 40 ** 441.4 2,068 Limited ** 23 Lotus Logistics and Developers 75 35 142.4 227 Pvt Ltd 24 Sai Everest Builders and 53.5 17 112.6 150 Developers Pvt Ltd 25 Swastik Homebuild Pvt Ltd 18 10 74.4 429 26 Prima Tera Buildtech Pvt Ltd 75 32 354 141 27 ATS Real Estate Builders Pvt 138.7 97 754.6 429 Ltd 28 Oasis Realtech Pvt Ltd 147 95 299.1 1,262 29 RLF Infratech Pvt Ltd 25.5 14 33.5 212 30 Identity Buildtech Pvt Ltd 89 31.5 521.8 721 31 Ratnapuri Constructions Pvt Ltd 104.7 35 257.9 79 32 Auric Infratech Pvt Ltd 23.5 16 44 233 33 Windlass Developers Pvt Ltd 171 105 497.3 1,410 34 Pavitra Conbuild Pvt Ltd 64.4 32 104 306 35 Capital Infratech Homes Pvt Ltd 161.1 95 395.5 868 36 Vayuputra Builders and 36 12 71.5 66 Infrastructure Pvt. Ltd. 34Department of Economic Affairs I 37 Tridhaatu Morya Developers Pvt Ltd 156 76 340.8 38 Barmecha Realty Pvt Ltd 22.4 12 53.3 39 Imperia Structures Ltd 99.9 72 308.5 40 Asset Homes Pvt Ltd 19.8 7 55.2 41 Cybercity Mangadu Project Pvt Ltd 85.2 25 205.4 42 Oxirich Realtors Pvt Ltd 52.8 30 123 43 Paranjape Schemes Construction Ltd 80 30 155.1 44 Ravi Surya Affordable Homes Pvt Ltd 86.7 25 180.9 45 Arvij Builders & Developers Pvt Ltd 29.4 16.81 55 46 Raghavendra Construction Company 44 15 84.4 Ltd 47 Samrin Infra Pvt Ltd 168 55 305.2 48 Pancharatna Buildcon Private Limited 50 18 149.7 49 Amrapali Stressed Projects 650 155 1,664 Investments and Resolution Establishment (“ASPIRE”) 50 Undavalli Constructions Private 182 30 229.1 Limited 51 Sri Sai Tirumala Constructions Pvt. 50 20 79.5 Ltd. 52 Govind Kripa Infratech Pvt Ltd 33.3 7 95.9 53 Panchsheel Buildtech Pvt Ltd 248.4 70 677.1 54 JOP International Limited 80 20 127.5 55 Janapriya Projects Private Limited 136 25 300.1 56 VN Buildtech Pvt Ltd 73.5 19 153.4 57 Advance India Projects Limited 81.8 10 139.1 58 Shree SS Developers Pvt Ltd 74.2 10 107.9 59 Shubhankar Kalpak Builder Pvt Ltd 25.4 4 53.3 60 Sai Uma Constructions Pvt Ltd 137 40 513.9 61 Alliance Malls Developer Co Pvt Ltd 90 20 144.4 Total 6,226.6 2,675.80 18,528.2 * The Fund invested INR 123.3 crore in CCI, and has redeemed INR 123.3 crore principal at 12% IRR ** The Fund has invested INR 40 crore in Pyramid, and has redeemed INR 25 crore principal at 12% IRR (d) The Fund focusses not just on Tier 1 cities but everywhere in India where RERA is applicable. The geographical spread of the 245 projects that have received investment approval is as follows: City No of Projects Northern Capital Region 80 Mumbai Metropolitan Region 82 Bengaluru 21 Pune 15 Chennai 7 Other Tier II cities 40 Other Tier II cities include cities such as Karnal, Mohali, IV. Other Significant Developments (a) Hon’ble Supreme Court (SC) directed project Chandigarh, Amritsar, Panipat, Lucknow, Dehradun, completion: The Hon’ble Supreme Court passed an Vrindavan, Jhansi, Ranchi, Ahmedabad, Surat, Kota, order dated September 1, 2020 in respect of the Jaipur, Jodhpur, Bhopal, Nashik, Nagpur, Hyderabad, proposed funding by the Fund into the Amrapali Group. The Court has provided a broad framework Amaravathi, Vizag, Coimbatore, Thrissur, and for the Fund’s investment funding into the Identified Trivandrum. Site(s) and had directed the Receiver and the Fund to formulate the precise modalities. 35Annual Report 2021-2022 The Hon’ble Court has approved the funding of INR re-imagines an ecosystem, wherein every service 650 crores in the 6 Identified site(s). The Court provider can become a tech-enabled credit and appointed Receiver has incorporated the Section 8 product marketplace. Working in tandem with another company - Amrapali Stressed Projects Investments initiative - the Account Aggregator (AA) framework - and Resolution Establishment (“ASPIRE”) for funding. it allows cash-flow-based lending and last mile credit A capital call of INR 250 crores was completed by the delivery to businesses and individuals at the bottom Fund towards the project on Sep 3, 2021. The Fund of the pyramid. has begun disbursements in the project and has b) Account Aggregator System (September 2021) funded Rs 155 crores as of Dec 20, 2021. Account Aggregator is a DAF (data access fiduciary) (b) Handover of first project – CCI Rivali Park: for Financial Data: a new class of NBFC approved Handover of the first project of SWAMIH – CCI Rivali by RBI to manage consent for financial data sharing Park was initiated on May 13, 2021 in a virtual event from Financial Information Providers (FIPs) to with Hon’ble FM’s participation. Thus far, the Fund Financial Information Users (FIUs), based on the has received Part/Full Occupation Certificate (indicating completion of construction) in 9 projects consent from the customers. totalling ~1,800 units. II. Joint Working Groups on Fintech (c) Fully exited one project and commenced partial India has two Joint Working Groups (JWG) on Fintech, exit in 1 project: The Fund has received full with Singapore and the UK. A JWG with Philippines is redemption proceeds of INR 123.3 crores of face underway. 4 meetings with Singapore and 2 meetings value of NCDs invested in CCI Rivali Park along with with UK held so far. A preliminary meeting with Japan redemption premium at an IRR of 12% aggregating held on 23.08.2021. The JWGs focus on regulatory to INR 137.51 crores as of October 26, 2021. The collaboration, knowledge sharing, promote cross border Fund has also received redemption proceeds of INR remittances via real time payment systems and 25 crores of face value of NCDs invested in Pyramid encouraging Fintechs ecosystem in both countries. A Infratech along with redemption premium at an IRR summary of the two JWGs is below - of 12% aggregating to INR 26.65 crores as of September 30, 2021. A total of ~INR 164 crores has 1. Singapore been distributed back by the Fund to all investors. India and Singapore has collaborated to discuss on C. FinTech - several possible areas: (i) SME digitization and finance, (ii) India Stack, (iii) collaboration on building capacity, (iv) I. Steering Committee on Fintech: The concerns related to cyber-security, (v) and regulatory Department of Economic Affairs constituted a steering sandbox, RegTech and SupTech (vi) Payment linkages, committee under the Chairmanship of Secretary, DEA, (vii) Global Stack, (viii) SME initiatives, and (ix) Data to consider various issues relating to development of corridor (x) Investment Facilitation, and (xi) Regulatory FinTech space in India with a view to make FinTech Collaboration. related regulations more flexible and generate enhanced entrepreneurship in an area where India has distinctive Two working groups (1. To accelerate mutual trade btw comparative strengths vis-à-vis other emerging India and Singapore; 2. India Singapore payment economies. The other Members of the Committee were linkages) and 2 DGs (1. Cross border data corridor; 2. MSME, MeitY, DFS, CBEC, UIDAI, RBI, SEBI and Invest Green fintech) have also been formed under the JWG. India. The committee submitted its report to the Hon’ble One of the successful outcomes of JWG has been the Finance Minister on 2nd September, 2019. The report was project announced by the Reserve Bank of India (RBI) circulated to the concerned Ministries/Departments for and the Monetary Authority of Singapore (MAS) to link taking necessary action on the recommendations made their respective fast payment systems viz. Unified in the report. Further, an Inter-Ministerial Steering Payments Interface (UPI) and PayNow. The linkage is Committee (IMSC) has been set up in Department of targeted for operationalization by July 2022. The UPI- Economic Affairs for implementation of PayNow linkage will enable users of each of the two fast recommendations made in the report. payment systems to make instant, low-cost fund transfers The IMSC has met five times since. The efforts of the on a reciprocal basis without a need to get onboarded Government along with private players have brought new onto the other payment system. The UPI-PayNow linkage dimensions in the area of fintech. Fintech platforms are is a significant milestone in the development of reshaping technology space and the year 2021-22 has infrastructure for cross-border payments between India witnessed launch of two such revolutionary fintech and Singapore, and closely aligns with the G20’s financial platforms under the initiatives of the Government. These inclusion priorities of driving faster, cheaper and more are: transparent cross-border payments. a) Launch of GeM SAHAY app (July 2021) 2. United Kingdom The GeMSAHAY app paves way for frictionless The JWG has been constituted to share the areas in financing by leveraging fintech. MSMEs can now get which both countries have made progress and the a loan at the point of acceptance of an order on the experience so far. The areas identified for collaboration #GeM platform. It will help in meeting the working are: (i) Remittance Corridor, (ii) Bilateral Fintech capital needs and ensure “access to finance” for Investment, and (iii) Common Mobility Card. India MSMEs. Leveraging technology in credit and proposed to explore potential real time payment linkages market access towards financial inclusiveness is between NPCI from India and UK counterpart to enable a revolution in itself. This new way to do business inward remittances. 36Department of Economic Affairs I 8. FB & ADB Division across sectors like Health, Transport, Education, Energy, Disaster & Risk Management, Agriculture, Water, Urban, Environment, Governance, Social Protection, Financial 8.1 Introduction inclusiveness, Poverty etc. Major World Bank assisted 8.1.1 The FB & ADB Division is concerned with the projects are COVID-19 Emergency Response and Health policy matters of Multilateral Funding Institutions like Systems, National Rural Livelihoods Project, National World Bank Group, International Monetary Fund (IMF), Ganga River Basin Project, Eastern Dedicated Freight Asian Development Bank (ADB) and related Institutions. Corridor, Green National Highways Corridor Project, Atal FB & ADB Division is also the nodal point for facilitating Bhujal Yojana-National Groundwater Management and monitoring Externally Aided Projects (Central & State Improvement etc. Projects all over India) which are being implemented 8.4 Major activities pertaining to the World Bank through Multilateral Development Banks and other related Trust Funds / Loans / Grants. An online web portal has in 2021-22 been developed by FB&ADB Division, with technical help 8.4.1 COVID-19 Assistance: from NIC for facilitating the entire process of availing an externally aided loan from Multilateral Development 8.4.1.1 Government of India has signed five loans worth Banks (MDBs) and Bilateral Agencies by State Govt/UT/ USD 3.40 billion with World Bank related to COVID-19 Central Govt. Ministries/Departments/ Central Govt crisis response; COVID 19 Emergency Response and PSUs, to ensure paperless interaction between DEA and Health Systems Preparedness Project was signed on concerned stakeholders. The portal has led to greater April 03, 2020 for USD 1.0 billion. Amount disbursed so transparency, better monitoring of project status and far under this project is USD 812.92 million. Second Loan faster and uniform sharing of information with all the relating to economic stimulus measures worth USD 750 stakeholders. million was signed on July 06, 2020 as budgetary support to Government of India in order to support MSMEs under 8.2 World Bank Group Atmanirbhar Bharat, this loan has been fully disbursed. 8.2.1 The World Bank is among the world's leading 8.4.1.2 Two loans relating to social protection measures development institutions with a mission to fight poverty worth USD 750 million and USD 400 million were signed and improve living standards for people in the developing on May 15, 2020 and December 16, 2020 respectively as world by promoting sustainable development through budgetary support to Government of India for 'Accelerating loans, guarantees, risk management products and (non- India's COVID-19 Social Protection Response Program' lending) analytic and advisory services. The World Bank to support relief measures to beneficiaries under Pradhan is one of the United Nations' specialized agencies. The Mantri Garib Kalyan Yojana (PMGKY). Both these loans World Bank concentrates its efforts on reaching the have also been fully disbursed. These two loans are based Millennium Development Goals aimed at sustainable on Government of India's overall strategy to fight COVID- poverty reduction. 19 pandemic. Another loan of USD 500 million as budgetary 8.2.2 India is a member of four institutions of the World support to Government of India relating to social protection Bank Group viz., International Bank for Reconstruction to strengthen the capability of the national and state and Development (IBRD); International Development governments in India to respond to the needs of informal Association (IDA); International Finance Corporation workers through a resilient and coordinated social (IFC) and Multilateral Investment Guarantee Agency protection was signed on July 15, 2021. This loan has been (MIGA). India has been accessing funds from the World fully disbursed. Bank (mainly through IBRD) for various developmental projects[1]. Fund Bank & ADB Division, DEA is the focal 8.4.2 Loans Signed & Disbursement: point for India being represented in the WBG meetings 8.4.2.1 Seven World Bank assisted projects were signed for international level deliberations to discuss policy issues during April-November 2021, amounting to USD 1.55 billion pertaining to the World Bank Group and also to undertake of assistance. The projects signed during year 2021 projects with assistance from the World Bank (IBRD). included Gujarat Outcomes for Accelerated Learning, Mizoram Health Systems Strengthening Project, Creating 8.3 World Bank India Portfolio a Coordinated and Responsive Indian Social Protection System, The Resilient Kerala Program, Second Dam 8.3.1 The World Bank's India portfolio as of November Rehabilitation and Improvement Project, Punjab Municipal 15, 2021 comprises of 97 projects with a net commitment Services Improvement Project & Meghalaya Health of USD 21.2 billion. The World Bank projects are spread Systems Strengthening Project. Total Disbursement for the period April to 15 November 2021 was approximately USD [1] India was also a recipient from IDA till 2014. In 2014 (IDA 17) India transitioned to being a confident donor. However, it continued to 2.25 billion. During December 2021 to March 2022, 7 receive transition support during IDA17 (2014-17). India became a projects worth USD 980 million are expected to be signed. donor only nation during IDA18. 37Annual Report 2021-2022 8.4.3 Monitoring of the World Bank Portfolio: Bank Group MD (Operations) on October 14, 2021 in 8.4.3.1 Portfolio performance has improved over the Washington DC. years as a result of regular review meetings such as Tri- 8.5.3 Remote IDA Day Meetings held during April- partite Review Meetings for ongoing projects and Pipeline November 2021 are as follows: - Review Meetings for pipeline projects. The meetings are organized jointly by Government of India and World Bank IDA20 First Replenishment meeting was held on and attended by officials from Department of Economic April 14-15, 2021. The meeting was attended by ED Affairs (DEA), World Bank and Implementing Agencies (India) World Bank, Senior Advisor to ED and Director of World Bank assisted projects. Under the chairmanship (Fund Bank). IDA-20 2nd replenishment meeting was of AS (MBC) during April - November, 2021, a pipeline held from June 28-30, 2021 in which AS (MBC) review meeting was held virtually on 8 September 2021 participated as the principal speaker along with ED India and a Tripartite Portfolio Review Meeting was held virtually World Bank, Senior Advisor to ED and Director (FB). from 15-17 November, 2021 for reviewing World Bank assisted ongoing projects of various sectors. A meeting was held jointly by Ivory Coast and the World Bank on 15-Jul-2021 in Abidjan to discuss 8.4.4 India as donor to IDA: effective financing mechanisms for African Economies 8.4.4.1 Since its founding in 1960, IDA has had 19 regular ahead of IDA-20 replenishment. This meeting was replenishments. In 2014 (IDA 17), India transitioned to attended by Director (Fund Bank), DEA virtually. IDA-20 being a confident donor. However, it continued to receive Replenishment 3rd meeting was held virtually from 20- transition support during IDA17 (2014-17). India became 22 Oct, 2021 which was attended by AS (MBC) as the a donor only nation during IDA18. As a commitment to principal speaker, World Bank ED (India), Director (Fund India's shared objective of eliminating extreme poverty, Bank) and Senior Advisor to ED (India). reducing vulnerability and increasing resilience across countries, India decided to contribute USD 200 million to 8.6 International Finance Corporation (IFC) IDA 17 replenishment. In furtherance of its commitment 8.6.1 International Finance Corporation (IFC), a towards the IDA countries, India announced a pledge of member of the World Bank Group, focuses exclusively INR 12.25 billion as its contribution towards IDA 18 on investing in the private sector in developing countries. replenishment. During the IDA 19 replenishment, India Established in 1956, IFC has 185 members. India is committed INR 15.00 billion. For IDA 20, the pledging founding member of IFC. IFC is an important Session will take place in December 2021. development partner for India with its operations of financing and advising the private sector in the country. 8.5 Meetings of Fund Bank India has a shareholding of 4.01%, the sixth largest along 8.5.1 The Development Committee (DC) Meeting of with that of the Russian Federation. India holds 3.82% of World Bank Group (WBG) during Spring Meeting of WBG the voting power. India's Executive Director represents a and IMF, 2021 were held virtually on April 9, 2021. From constituency equal to 4.61% voting power. There are three India, Hon'ble Finance Minister attended the DC Meeting other countries in India's constituency at the IFC, viz. as Speaker. AS (FB&ADB) and Director (FB) also Bangladesh, Bhutan and Sri Lanka. IFC has committed attended the meeting. A Bilateral Meeting between over USD 24 billion (including mobilization) in India since Hon'ble FM and Mr. David Malpass, President of the WBG the first investment in 1958. Currently, IFC investments was held on April 13, 2021 to discuss various issues are spread over 500 clients in India. As of June 2021, including COVID situation, WBG lending envelope, etc. IFC's own account committed portfolio in India stood at approximately USD 6.5 billion, making India IFC's largest Ministerial Roundtable: Financing SDG2: portfolio exposure which accounts for about 11% of its Addressing Hunger and Malnutrition in The Wake was global portfolio. India is also one of IFC's largest advisory held on April 01, 2021. AS (FB&ADB) attended the client, as well as the IFC regional hub for South Asia. meeting. Another High-level virtual forum on Solutions The IFC's investments in India are spread across priority for Improved Air Quality and Green Recovery in South sectors like infrastructure, manufacturing, financial Asia was held on April 2, 2021. Director (FB) attended markets and SMEs, affordable housing, renewable the meeting. energy, low-income states, gender development and 8.5.2 The Development Committee (DC) Meeting of climate change. Keeping in alignment with the Country World Bank Group (WBG) during Annual Meeting was Partnership Strategy (CPS) of the World Bank Group, held on October 15, 2021 in Washington DC which was IFC uses its private sector expertise to support the attended by Hon'ble FM as Indian Governor of the World economic growth that is inclusive, productive and Bank. Further, a Bilateral Meeting between Hon'ble FM sustainable. IFC continued to deliver over USD 1.5 billion and World Bank Group President was also held on in FY21 (July 2020-June 2021) with a commitment of October 15, 2021 in Washington DC and another bilateral USD 1.5 billion (including mobilised financing) in India. meeting was held between Secretary (EA) and World During July 2020-June 2021, DEA has approved a total 38Department of Economic Affairs I of 33 Article III Notifications. Further, DEA has granted support the vulnerable sections of society, as well as approval for two advisory engagements of IFC between micro, small and medium-sized businesses. On climate July 2020 and June 2021. change, India emphasized the necessity of the IMF proceeding according to the principles laid out by the 8.7 International Monetary Fund UNFCCC and the associated Paris agreement. India welcomes the continued commitment of IMF in providing 8.7.1 India is a founder member of the International timely financial support, particularly to the most vulnerable Monetary Fund, which was established to promote a members. cooperative and stable global monetary framework. At present, 190 nations are members of the IMF. Since the 8.7.5 India and IMF: IMF was established, its purposes have remained 8.7.5.1 The membership of the Fund is committed to unchanged but its operations - which involve surveillance, maintain a strong, quota-based, and adequately financial assistance and technical assistance - have resourced IMF. IMF's total resources presently include developed to meet the changing needs of its member the following: countries in an evolving world economy. The Board of a. Quotas: Primary source of financing for Governors of the IMF consists of one Governor and one lending; Alternate Governor from each member country. For India, b. New Arrangements to Borrow (NAB) acts the Finance Minister is the ex-officio Governor on the as the second line of defence i.e. after quota Board of Governors of the IMF. There are three other resources are exhausted substantially. countries in India's constituency at the IMF, viz. Bangladesh, Bhutan and Sri Lanka. Governor, Reserve c. Bilateral Borrowing Agreements (BBAs) Bank of India (RBI) is India's Alternate Governor. provide a third line of defence. a). India’s Quota and Ranking: The 2010 IMF 8.7.2 Meetings of Board of Governors: Quota and Governance Reforms (including the 14th 8.7.2.1 The Board of Governors usually meets twice a General Reforms of Quotas) came into effect on January year viz. the Spring Meetings and the Annual Meetings 26, 2016. Consequent to this Quota increase, India's of the IMF and World Bank to discuss the work of the quota shareholding rose to 2.75%. With a quota share of respective institutions. At the heart of the gathering are SDR 13,114.40 million, India ranks 8th in terms of quota meetings of the IMF's International Monetary and holding in IMF. Financial Committee (IMFC).India is represented by the Hon'ble Finance Minister in IMFC and the joint World In February 2020, the Board of Governors of the Bank-IMF Development Committee (DC), which discusses IMF formally concluded the 15th GRQ with no increase in quotas or change in quota formula as the United States progress on the work of the IMF and World Bank. expressed its inability to contribute to any quota increase 8.7.3 The Spring Meetings of the IMF/ World Bank, under the 15th GRQ. In February 2020, IMF Board of meetings of G-20 and G-24 were held virtually from April Governors has adopted a resolution that the 16th Round 5 to April 11, 2021. The Hon'ble Finance Minister, of GRQ should be concluded no later than December Secretary, Department of Economic Affairs, Additional 15, 2023. Secretary (FB and ADB), Director (IMF), Director (WB) b). India’s contribution to New Arrangements and DD (IMF) represented India in these meetings. to Borrow (NAB): In April 2009, the G-20 agreed to Hon'ble Finance Minister in her intervention emphasized increase the resources available to the IMF by up to $500 the importance of universal availability of vaccines and billion (which would triple the total pre-crisis lending medical solutions. The Hon'ble Finance Minister also resources of about $250 billion) to support growth in informed the IMFC about India's commitment to address emerging market and developing countries, viz. through climate change concerns and stressed on the need to bilateral financing from IMF member countries; and by restore the quota-based nature of the Fund and expedite incorporating this financing into an expanded and more work on the 16th General Review of Quotas. flexible New Arrangements to Borrow (NAB). 8.7.4 The Annual Meetings of the IMF/ World Bank, The New Arrangements to Borrow (NAB) meetings of G-20 were held in a hybrid format from constitutes a second line of defense to supplement IMF October 11 to October 18, 2021. The Hon'ble Finance resources to forestall or cope with an impairment of the Minister, Secretary, Department of Economic Affairs, international monetary system. Through the NAB, a Additional Secretary (MBC), Adviser (IER), Adviser (BC), number of member countries and institutions stand ready Director (Investment) and DS (IMF) represented India in to lend additional resources to the IMF. In January 2021, these meetings in person. Hon'ble Finance Minister a reform of the NAB took effect following consents from emphasized that multilateral institutions can play an 38 NAB participants, almost doubling the size of the NAB important role in overcoming the obstacles in universal to SDR 361 billion (US$521 billion) for the period from vaccination access and coverage. Hon'ble Finance 2021 to 2025. India is also one of the 38 creditor countries Minister highlighted India's continued measures to in NAB with a contribution of SDR 8.88 billion. 39Annual Report 2021-2022 c). India’s contribution to Bilateral Borrowing held during July 12-28, 2021. Discussions were held on Arrangements (BBA): BBAs are used as a third line of the State of the Indian economy, climate change issues, defense after quota and NAB resources are exhausted reform initiatives and growth prospects and Secretary substantially. At the Los Cabos G20 Summit in 2012, the (EA) chaired the Wrap Up session with the IMF Mission IMFC and G20 jointly called for further enhancement of Team on July 28th, 2021. The outcome of these meetings IMF resources for crisis prevention and resolution through in the form of the IMF India Article IV report was published temporary bilateral loans. on 15th October 2021. India had agreed to commit USD 10 billion to the 8.8 Asian Development Bank BBA 2016 on August 10, 2017, which was set to expire in 8.8.1 Membership of ADB: December 2019, however, the agreement was further extended for another year through December 31, 2020. 8.8.1.1 India became a founding member of the Asian India's commitment towards Bilateral Borrowing Development Bank (ADB) in 1966. ADB envisions a Arrangements is implemented through the mechanism prosperous, inclusive, resilient, and sustainable Asia and of Note Purchase Agreement (NPA) between Reserve the Pacific, while sustaining its efforts to eradicate Bank of India (RBI) and the IMF. extreme poverty in the region. ADB assists its members, and partners, by providing loans, technical assistance, The new round of bilateral borrowing agreements grants, and equity investments to promote social and took effect on January 1, 2021. The BBAs now in effect economic development. with 42 creditors contribute a further SDR 138 billion (USD 8.8.2 ADB has 68 members (including 49 regional 195 billion) with India's contribution at USD 3.9 billion. and19 non-regional members), with its headquarters in 8.7.6 South Asia Regional Training and Technical Manila, Philippines. ADB's authorized and subscribed Assistance Center (SARTTAC) : capital stock is US$163.12 billion, of which India's subscription is US$10.3 billion. India holds 6.32% of shares 8.7.6.1 A Memorandum of Understanding was signed in ADB, equivalent to 672,030 shares (@US$12063.5 per between India and International Monetary Fund for setting share). India has 5.35% voting rights. Japan and the United up of South Asia Regional Training and Technical States are the largest shareholders with15.57% each of Assistance Center (SARTTAC) in India by the shares. China and India are the third (6.43%) and fourth International Monetary Fund on March 11, 2016. The (6.32%) largest shareholders, respectively. Centre was officially inaugurated on February 13, 2017. SARTTAC serves six member countries of Bangladesh, 8.8.3 The Asian Development Fund (ADF) is a special Bhutan, India, Maldives, Nepal & Sri Lanka. It provides fund of ADB, which is utilized for extending financial training to government & public sector employees in order support to Group A (and selectively Group B) member to enhance their technical and analytical skills and countries, which have lesser credit worthiness and are improve the quality of their inputs into policy making. It prone to debt distress and other vulnerabilities. India also provides technical assistance to governments and became a donor to ADF in July 2014 and contributed public institutes in various areas such as macroeconomic US$30 million for the 11th Replenishment of ADF (ADF- policy, macro & micro prudential regulation, financial XI) and US$41.74 million for ADF-XII. For ADF-XIII, India sector supervision as well as national accounts statistics has pledged US$51.38 million. ADB provides and forecasting. concessional financing through ADF to its developing member countries (DMC) based on the agreed yardsticks. 8.7.7 India has contributed USD 32.8 million of which the first installment of USD 15 million to SARTTAC was 8.8.4 ADB has a Board of Governors (BoG), a Board paid in August, 2016 and the balance USD 17.8 million of Directors (BoD), a President, six Vice Presidents and was paid in November, 2017. specialized officers and staff in its headquarters and country offices. The BoG is ADB's highest policy-making 8.7.8 Article IV Consultations : body, which comprises one representative from each 8.7.8.1 Under Article IV of the IMF's Articles of member nation including India. The Finance Minister of Agreement, the IMF holds bilateral discussions with India is the designated Governor for India. The BoG members, usually every year, to review the economic exercises its powers and functions with the assistance status of the member countries. Article IV consultations of the BoD, which performs its duties full time at the ADB are generally held in two phases. During this exercise headquarters. The Directors supervise ADB's financial the IMF mission holds discussions with the RBI and statements, approve its administrative budget, and review various line Ministries / Departments of Central and approve all policy documents and all loan, equity, and Government. The Article IV Consultations are concluded technical assistance operations. India is represented in with a meeting of IMF Executive Board at Washington the BoD by an Executive Director (ED), who is nominated DC which discusses the Article IV Report. The Annual by the Government of India. ED is supported by officers Article IV Mission with International Monetary Fund was from India (two advisers and one executive assistant). 40Department of Economic Affairs I 8.8.5 Annual Meetings of BoG are held in a designated tangible investments, ADB leverages knowledge, member country in early May. Annual meetings are supports capacity development, and incorporates occasions for the BoG to provide guidance on ADB innovation and best practice into its operations. The ADB's administrative, financial, and operational directions. The country partnership strategy (CPS), 2018-2022 for India meetings provide opportunities for member governments was approved in September 2017. to interact with ADB staff, non-government organizations (NGOs), media, and representatives of observer 8.8.8 The CPS for India aims to accelerate the countries, international organizations, academia and the country's inclusive economic transformation. ADB private sector. Bilateral meetings are held between interventions in India are closely aligned with the countries on the side lines of the Annual Meeting. The government development priorities, and span six sectors 46th Annual Meeting of ADB was hosted by India on 2-5 of operation: transport; energy; urban infrastructure and May 2013 in New Delhi. The 54th Annual Meeting was services; finance; human development; and agriculture held virtually on 3-5 May 2021 due to the COVID-19 and natural resources. ADB's program of assistance is pandemic. increasingly employing integrated, multi-sectoral approach while balancing toward human development 8.8.6 ADB assistance to India commenced in 1986.The sector.In the wake of the COVID-19 outbreak, ADB's ongoing sovereign lending portfolio of ADB projects in program is adjusted to assist India in weathering the India consists of 63 loans worth $13.3 billion. ADB's adverse impact of the pandemic, and support India's fast, annual sovereign lending in India increased to an all-time green, and inclusive recovery in alignment with high of $3.92 billion in the calendar year 2020, including Atmanirbhar Bharat Abhiyan (Self-Reliant India), which a $1.5 billion support to COVID-19 Active Response and envisages to make India a competitive, resilient, self- Expenditure Support (CARES) Program to support the sustaining, and self-generating economy. health sector in containing the infection, strengthen the 1. The ADB transport sector program aims to health system's preparedness to improve services and improve connectivity and accessibility, its resilience against future outbreaks, and provide social promote safe and environment-friendly protection for more than 800 million people, particularly practices, and enhance in-country and sub- the economically vulnerable sections of society. In the regional trade corridors and facilities. same year, ADB committed $356.1 million for its private sector investments in India. In 2021, sovereign annual 2. Energy sector initiatives focus on lending is expected to increase to $5.1 billion including a strengthening of power transmission and $1.5 billion loan under Asia Pacific Vaccine Access Facility distribution networks in India. ADB supported (APVAX)which will support government's rapid initiatives aim to provide uninterrupted power vaccination rollout to contain the ongoing pandemic and supply to all, promoting smart grid help reduce severity of a possible third wave and loss to technologies, and low-carbon solutions, life. The 2021 regular program of assistance included including renewable energy and energy projects in transport, human development, urban, efficiency. agriculture, and public sector management sectors. To 3. The urban sector program supports enhance urban mobility, ADB supports rail-based urban expanding the coverage, quality, and mass transit system with linkages to multimodal transport continuity of basic services to improve the network in combination with transit oriented urban urban quality of life. The program aims to development. The program also aims to rebalance contribute to sustainable urban development support from "hard infrastructure" sectors to education by supporting policy reform, institutional and health, finance, and public sector management. This development, and improved governance of shift aligns with India's expansionary track toward human urban services. development and response to the COVID-19 pandemic. Portfolio performance has improved over the years as a 4. The finance sector program endeavors to result of regular review meetings such as tripartite portfolio support leveraging of finance for review meetings (TPRM) for ongoing and pipeline infrastructure. projects. In 2021, three such TPRMs were held virtually 5. The agriculture and natural resources sector under the pandemic environment. interventions provide assistance in the key areas of water use efficiency, climate 8.8.7 ADB assistance to India supports the resilience, and coastal protection. government's development priorities, evolving focus areas, and flagship initiatives. The India country 6. The human development program partnership strategy (CPS) of ADB provides the encompasses interventions in the skills/ overarching framework for ADB's operations in India. In education and health sectors. Skills/ line with the government's guiding principle that education interventions focus on improving multilateral development partners add value beyond employ ability of youth in the industries and 41Annual Report 2021-2022 services essential to growth through stronger technical assistance projects (cumulative worth around industry engagement and increased focus on $18.11 million) have assisted India in project preparation, quality and outcomes. The health sector strategic planning, and capacity building. program aims to contribute to heath sector development and reforms, health care ADB is assisting Government of India in finance, and health insurance and subsidized extending project development support through project health programs. In the wake of the COVID- readiness financing (PRF) loans along with grant in the 19 pandemic, the program, in support of the form of knowledge support technical assistance (KSTA) Pradhan Mantri Atmanirbhar Swasth Bharat to northeastern region (NER) states. PRF enables quick Yojana (PM-ASBY, Health for All) scheme, response to continued demand for project development will provide assistance in improving the and finances project preparation and design activities for health system, urban primary healthcare, investments that are expected to be financed under one health service infrastructure and digitization, or more ensuing ADB-financed projects with quality and regional cooperation on health. project designs and a high level of implementation readiness. 8.8.9 South Asia Sub-regional Economic Cooperation (SASEC) Program brings together Bangladesh, Bhutan, PRF and KSTA in NER aim to support India, Maldives, Myanmar, Nepal, and Sri Lanka in a development of investment plans/projects for key sectors project-based partnership. Under this flagship Program, and preparation of feasibility studies, detailed designs, ADB has been working with the SASEC countries to build procurement process, and timely completion of pre- cross-border power connectivity, to facilitate regional construction activities of priority projects. Building trade, and connect transport network for movement of institutional capacity is one of the key components of PRF goods and people. SASEC countries share a common and KSTA, which intend to support infrastructure planning vision of boosting intra regional trade and cooperation in and implementation capacities of the line departments. South Asia, while also developing connectivity and trade Presently, Sikkim Road Sector PRF ($2.5 million) and with Southeast Asia through Myanmar, to the East Asia, Tripura Urban and Tourism Development PRF ($4.2 and the global market. The SASEC Vision was launched million) are under implementation and the Mizoram Urban in April 2017 in the SASEC Finance Ministers' Meeting in Transport PRF ($4.5 million). Tripura Industry PRF ($2 New Delhi. It articulates shared aspirations of SASEC million), Tripura City Infrastructure PRF ($3 million), countries, and set the path to achieve these through Manipur Road Sector PRF ($5 million), and Nagaland regional collaboration. The Vision document lays out a Urban Infrastructure PRF ($2 million) are under plan to transform the sub region by leveraging natural processing. KSTA support is also being mobilized for resources, promoting industry linkages for the developing sector investment plans in the state of Tripura development of regional value chains, and expanding the and Assam (Road Sector and Urban & Rural Water region's trade and commerce through the development Supply -Sanitation). of sub-regional gateways and hubs. SASEC Operational 8.8.10 Building the capacity of various executing Plan presents the strategic objectives of the SASEC agencies has been an important element of ADB's partnership, and the operational priorities of the four main assistance to India. The Capacity Development Resource SASEC sectors: transport, trade facilitation, energy, and Center (CDRC), which was established at ADB's India economic corridor development. It is supported by a list Resident Mission, collaborates with leading experts and of potential projects regularly updated by SASEC national training institutes to develop and deliver training countries to be implemented during 2016-2025. As of end courses for executing agencies on operational, technical of October 2021, SASEC countries have signed and and substantive topics relating to ADB operations in India. implemented 71 ADB- financed investment projects worth In 2020, CDRC carried on its work despite the COVID- around $17.10 billion in the four focus areas. The transport 19 pandemic situation, through virtual training programs, sector accounts for most projects (44 projects worth a cumulative $12.32 billion), followed by energy (16 projects 8.8.11 Technical Assistance (TA) program has also worth $2.92 billion), economic corridor development (six evolved in line with the loan program. TA helps DMCs projects worth $1.75 billion), trade facilitation (three enhance capacity, improve project preparedness and projects worth over $80.66 million), and ICT (two projects implementation, promote technology transfer, and worth $20.80 million). Since 2002, the Government of undertake analytical studies. India has signed 19 ADB-financed SASEC investment have projects worth around $6.17 billion. In addition to 8.8.12 ADB's Technical Assistance Special Fund (TASF) the projects, ADB-financed technical assistances have provides technical assistance improving capacity in the supported SASEC investment projects in India, regional formulation, design and implementation of projects to cooperation forums and knowledge-sharing initiatives, facilitate effective use of external financing. India has been and pilot projects since 2001. A total of 16 national voluntarily contributing to TASF, since 1970. 42Department of Economic Affairs I 8.9 Global Alliance for Vaccines and developing countries to: (i) mainstream disaster risk Immunizations (GAVI Alliance) management and climate change adaptation in development strategies and investment programs, and 8.9.1 The GAVI Alliance (formerly the Global Alliance (ii) improve the quality and timeliness of resilient recovery for Vaccines and Immunization) was founded in 2000 and reconstruction following a disaster. The governance to reduce the historical gap in access to life saving structure of GFDRR comprises: the Consultative Group vaccines and reduce child mortalities. GAVI's mission (CG), the Secretariat, and the Trustee. The Consultative is to save children's lives and protect people's health by Group is the primary policy making body in GFDRR whose increasing access to immunization in poor Chair is a World Bank representative while its Co-chair countries.India is not only a recipient, but also a is selected from the member countries for a period of contributor to GAVI Alliance. As per 'Contribution one year. Agreement' signed between Government of India and GAVI, India committed to contribute USD 3 million per 8.11.2 India became a member of GFDRR in 2013 by annum to the GAVI Alliance during the replenishment paying one time member fee of USD 500,000 in three cycle of five year i.e. 2021-25. installments during 2014-15. DEA vide its O.M. dated Oct 30, 2018 gave its no-objection to MHA which is the nodal 8.9.2 A proposal of MoHFW was received in 2020 for ministry for GFDRR, for renewal of India's membership enhancement of India's contribution to the GAVI in the to GFDRR and as well as commitment on the financial next replenishment cycle of five year i.e. 2021-25. It was support on making contribution of USD 5,00,000 as decided with the approval of Hon'ble Finance Minister membership fee cumulatively over three years to GFDRR that the Govt. of India will make a contribution of US$ for the FY 2018-21. In October 2021, DEA agrees with three million per annum to GAVI, i.e., a cumulative the proposal of MHA on India's association with GFDRR contribution of US$ 15 million for the next replenishment in the observer status. cycle of GAVI of five years. The Multi-Year Contribution Agreement towards the replenishment for the next five 8.12 Multilateral Investment Guarantee Agency years (2021-25) was signed on 30th June, 2021 and first (MIGA) installment was made on 2nd July, 2021. 8.12.1 Multilateral Investment Guarantee Agency (MIGA) was founded in 1988 to promote foreign direct 8.10 Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) investment (FDI) into developing countries. MIGA currently has 182 members. It provides investment 8.10.1 The Global Fund to Fight AIDS, Tuberculosis and guarantees to private sector investors and lenders, Malaria (The Global Fund / GFATM) is an international particularly in conflict affected countries. MIGA also financing organization that aims to attract and disburse provides technical assistance to developing countries as additional resources to prevent and treat HIV and AIDS, well as helps them in their efforts to attract foreign capital, Tuberculosis and Malaria. The organization is public- technology, and know-how. With the approval of Cabinet private partnership with Secretariat at Geneva, Committee on Political Affairs, the MIGA Convention was Switzerland. The organization began operations in signed by India on April 13, 1992 with a view to creating January 2002. GFATM supported programs have an environment for foreign direct investment (FDI) in India estimated to have saved 44 million lives since 2002. to provide guarantees to prospective investors and mitigating certain perceptions like non-commercial risks 8.10.2 As per the 'Multi-Year Contribution Agreement' like inability to transfer profits from the host country, signed between the Government of India and GFATM on confiscation of assets, damages due to war or civil 11th June, 2020, India committed USD 22 million to disturbances which were restraining FDI flows in India. GFATM during the Sixth Voluntary Replenishment cycle India became member of MIGA on January 6, 1994. At (2020-22) as per following schedule (i) US$ 7 million in present, India has 3.03% capital subscription with a voting 2020 and 2021 each and (ii) US$ 8 million in 2022. India's second contribution to the GFATM for 2021-22 (USD 7 power of 2.56% on the MIGA Board. As a constituency million) was paid in July 2021. India has 7402 shares, comprising 3.39% of total voting power. 8.11 Global Facility for Disaster Reduction and Recovery (GFDRR) 8.13 Global Development Network (GDN) 8.11.1 GFDRR is a global partnership program 8.13.1 GDN was created as World Bank Initiative in administered by the World Bank Group. GFDRR supports 1999. GDN is a public international organization that 43Annual Report 2021-2022 supports high quality, policy-oriented, social science science researchers with policymakers and development research in developing and transition countries to promote stakeholders across the world. In 2001, GDN was better lives. It supports researchers with financial established outside the World Bank as US NGO. GDN resources, global networking, as well as access to has 5 member countries namely Colombia, India, Spain, information, training, peer review and mentoring. GDN Sri Lanka and Hungary. GDN Agreement has not been acts on the premise that better research leads to more ratified by 3 countries namely Egypt, Italy and Senegal informed policies and better, more inclusive development. for internal reasons. GDN is currently headquartered in Through its global platform, #GDN connects social New Delhi. Position of ATNs – IMF Section (FB & ADB Division, DEA) Sl. Year No. of Paras/ PA reports on Details of the Paras/PA reports on which ATNs are No. which ATNs have been pending submitted to PAC after vetting No. of ATNs No. of ATNs sent No. of ATNs which by Audit not sent by but returned with have been finally the Ministry observations and vetted by Audit but even for the Audit is awaiting have not been first time their resubmission submitted by the by the Ministry Ministry to PAC 1 2014 Report 1 of 2014, Demand No.32, Para 3.16 (Annexure - - Submitted 3.14, Item 23 to 25) 2 2014 Report No. 1 of 2014, Demand No. 32, Para 3.16 - - Submitted (Annexure 3.14) 3 2015 Report No. 1 of 2015, Demand No. 33, Para 3.12 - - Submitted (Annexure 3.10 & 3.15, Annexure 3.13) 4 2016 Report No. 34 of 2016, Demand No. 34, Para 3.16 (Annexure 3.13, Item 21), - - Submitted Para 3.17 (Annexure 3.14, Item 6) 5 2016 Report No. 34 of 2016, Demand No. 34, Para 3.18 - - Submitted (Table 3.9, Item 3) 6 2017 Reports No. 44 of 2017, Demand No. 29, Para 3.15 (Annexure 3.12, Item No: - - Submitted 13), Para 3.17 (Annexure 3.14, Item 4) 7 2019 Reports No. 2, Demand No. 29, Para No. 3.3, Table 3.2, - - Submitted Item No. 9 44Department of Economic Affairs I 9. International Economic Relations a) South Asia (Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Division Lanka), South East Asia (Brunei, Burma, 9.1. IER Division is one of the important Divisions of Cambodia, East Timor, Indonesia, Laos, Department of Economic Affairs which deals with Malaysia, Philippines, Singapore, Thailand, International Economic Relations. The major functions Vietnam), North America(Mexico), East Asia of IER Division are dealing with economic and financial (Mongolia, Hong Kong, Taiwan) matters related to: b) Matter relating to CIS countries (Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, 1. G-20 Kyrgyzstan, Moldova, Tajikistan, 2. G-7 Turkmenistan, Ukraine, Uzbekistan). 3. G-24 13. Sectoral Charge - 4. BRICS a) Ministry of Defence, 5. SAARC, SDF b) Ministry of Tribal Affairs 6. ASEAN, Caribbean Union 7. World Economic Forum (WEF) E- Governance: 8. OECD, SCO As far as e-governance is concerned, IER 9. Asia Europe Meeting (ASEM) division has fully operationalized E-file System and thrust are being given for optimal usage of Govt Email id for 10. BIMSTEC official communication in order to make decision swift, 12. External Charges- transparent, efficient and effective. Organization Structure of IER Division Ms. Anu Mathai, Shri Virender Adviser(IER) Singh, Adviser(IER) Shri Parveen Kumar, Director Shri Gopal Prasad, Ms.Remya Prabha G, JD (G20 Finance Track (FT), G7, Ms.Anoopa Nair, JD OSD (G20 Finance Track (BRICS, G20 Sherpa Track, G20 India G24, SCO,ASEAN & (G20 Finance Track (FT WG, OECD) Presidency, G20 Sectt. & Coordination, (FT) Caribbean Union) WEF, SAARC/SDF, BIMSTEC) Sh. Kumar Ms. Aditi Sh. Prashant Ms.Preeti Shubham AD Sh. Ms. Preeti Ms. Ms. Pathak, DD Gupta, US , DD Amit DD ParulAD Sushmita, (G20 FT, Sourabh OSD (BRICS, G20 (SAARC/SDF, (G20 FT) ASEAN, G7, OSD (G20 FT (G20 FT Sherpa Track, BIMSTEC, G20 G24, SCO & WG, WG, (G20 FT G20 India Sectt. & Caribbean (G20 OECD) OECD) WG) Presidency, Coordination) Union) FT) WEF) Ms. Saroj Bala, SO (G20 Sectt. &Coordination Sh. Abhay Sh. Kuldeep Sh. Lal Ms. Sonia Ms. Sonia Sh. Abhay Sh. Sh. Naveen Menon, Singh Meena, Singh, Yadav, Yadav, Menon, ASO Arindam Kumar, ASO ASO ASO ASO ASO ASO Saha, ASO (BRICS, G20 (G20 Sectt. & (G20 FT, G7, (G20 FT) G24, (G20 FT (G20 FT (G20 FT, Sherpa Track, (SAARC, Coordination) SCO,ASEAN WG, WG, BRICS) G20 India SDF, & Caribbean OECD) OECD) Presidency, BIMSTEC) WEF) Union) 45Annual Report 2021-2022 I. G-20 place within the ambit of the following Working Groups/ areas: The G20 was formed in 1999, as a forum of a. Framework Working Group (FWG) Finance Ministers and Central Bank Governors, in b. International Financial Architecture Working recognition of the fact that there was a major shift in the Group (IFA WG) global economic weight from the advanced economies c. Infrastructure Working Group (IWG) to emerging market economies. However, G20 rose into d. Sustainable Finance Working Group (SFWG) prominence in 2008 when it was elevated from a forum e. Financial Sector agenda of Finance Ministers and Central Bank Governors to that f. Global Partnership for Financial Inclusion (GPFI) of G20 Heads of Nations in order to effectively respond g. International Taxation agenda to the global financial crisis of 2008 and insulate the world from major economic collapse. h. Joint Finance and Health Task Force The first G20 Summit was held in November a. Framework Working Group (FWG) discusses 2008 in Washington DC under the shadow of the issues relating to the global economy, risks and greatest financial crisis in the post-war era. This was uncertainties, suitable policy responses, and followed by fourteen summits held in London (April, promoting Strong, Sustainable, Balanced, and 2009), Pittsburg (September, 2009), Toronto (June, Inclusive Growth (SSBIG) across the G20. India 2010), Seoul (November, 2010), Cannes (November, along with the UK co-chairs this Working Group. 2011), Los Cabos (June, 2012), St. Petersburg b. International Financial Architecture (IFA) (September, 2013), Brisbane (November, 2014), Antalya Working Group deals with issues related to (November, 2015), Hangzhou (September, 2016), international financial architecture such as Global Hamburg (2017) and Buenos Aires (2018), Osaka Financial Safety Net (GFSN), the role of the (2019) and Riyadh (2020). The 16th G20 Rome Summit SDRs in the international monetary system; was held under the Italian G20 Presidency in Rome, restructurings of sovereign debt, debt Italy on 30-31 October 2021. Indonesia assumed the transparency and sustainability among others. G20 Presidency on 1st December, 2021 under the The Working Group is co-chaired by South Korea theme "Recover together, Recover Stronger". The 17th and France. G20 Heads of State and Government Summit will take place towards the end of the year 2022 in Bali, Indonesia. c. Infrastructure Working Group (IWG) deliberates on quality infrastructure investments India joined the G20 Troika consisting of including innovation in mobilizing financial Indonesia, Italy, and India - the current, previous and next resources for infrastructure investment. The G20 Presidencies respectively, on 1st December, 2021. Working Group is co-chaired by Australia and India will assume the G20 Presidency on 1 December, Brazil. 2022 from Indonesia, and will organise the G20 Leaders' Summit for the first time in India in 2023. The Presidency d. Sustainable Finance Working Group (SFWG) of G20 is usually held for a year with various meetings is a newly established group under the G20 Italian taking place (across a range of policy issues) culminating Presidency co-chaired by the US and China. The into the G20 Leaders' Summit. Working Group deliberates on ways to mobilize sustainable finance as a way of ensuring global G20 issues are discussed through two parallel growth and stability and promoting the transitions tracks, viz., Finance Track and Sherpa Track. Under towards greener, more resilient and inclusive Finance Track, issues such as international financial architecture, infrastructure financing, sustainable finance, societies and economies. sustainable and inclusive growth, international taxation e. Financial Sector issues related discussions and financial sector regulations, financial inclusion are take place directly at the level of the Deputies deliberated. The highest level of meeting under Finance and there is no separate Working Group for the Track is G20 Finance Ministers and Central Bank same. The key areas of discussion have included Governors (FMCBG) Meeting which is held 3-4 times in strengthening prudential oversight, improving risk a year. The G-20 member countries are represented by management, strengthening transparency, their Finance Ministers and Central Bank Governors promoting market integrity, establishing (FMCBGs). Preceding every FMCBG Meeting, Finance supervisory colleges, enhancing cross-border and Central Bank Deputies (FCBD) Meetings are held to payments, smooth LIBOR transition, and Central prepare for FMCBG Meeting. Secretary (Economic Bank Digital Currencies among others. Affairs) is India's Finance Deputy. Technical level discussions are held through meetings of Working f. Global Partnership for Financial Inclusion Groups. Discussions under the G20 Finance Track take (GPFI) works for advancing financial inclusion 46Department of Economic Affairs I globally. Some of the work areas include ways Italy pursued digitalization and green agenda to improve financial system infrastructure, pursue as cross-cutting themes across all the work streams policies conducive to harnessing emerging under the Finance Track. The Italian Presidency also technologies, facilitating remittance flows and promoted adequate investment and universal access reducing the cost of remittance transfers, to health. The Finance Ministers continued to cooperate financial literacy and consumer protection, digital closely with the Health Ministers, with a view to financial literacy and bridging the digital divide strengthening the resilience, inclusiveness and response among others. capacity of health systems. The Presidency strove to take collective actions to improve pandemic preparedness and g. International Taxation agenda in the G20 response (PPR) and strengthen the international health Finance Track is discussed directly at the level architecture system. of the Deputies and there is no formal Working Group on taxation. The matters discussed under The broad Finance track priorities under the the group include addressing tax challenges Italian G20 Presidency in 2021 were as follows: arising from digitalization of the economy, fighting a. Ensuring health as a global common good and against tax evasion, ending bank secrecy and strengthening pandemic prevention, tax havens, exchange of information, and preparedness and response (PPR). addressing tax avoidance by multinational corporations. b. Supporting a strong, sustainable, balanced and inclusive recovery. h. Joint Finance and Health Task Force was established during the G20 Rome Leaders' c. Supporting vulnerable economies and Summit, 2021. The Task Force is aimed at strengthening the international financial enhancing dialogue and global cooperation on architecture. issues relating to pandemic Prevention Preparedness and Response (PPR), promoting d. Making the international tax system fairer and the exchange of experiences and best practices, more transparent. developing coordination arrangements between e. Protecting the planet while improving living Finance and Health Ministries, promoting conditions for all. collective action, assessing and addressing health emergencies with cross-border impact, f. Developing a shared understanding on how to and encouraging effective stewardship of ensure growth and financial stability in the longer resources for pandemic prevention, term. preparedness and response (PPR), while g. Promoting infrastructure - including digital ones adopting a One Health approach. - as a way to foster social inclusion, reduce Priorities of the G-20 in 2021 under Italian Presidency geographical disparities and improve environmental sustainability, including Investment The G20 Italian Presidency, 2021 focused on in quality infrastructure. three broad, interconnected pillars of action: People, Planet, Prosperity also referred to as 3Ps. Within these h. Ways to mobilize sustainable finance as a way pillars, Italy had taken a lead in ensuring a swift of ensuring global growth and stability and international response to the pandemic and building up promoting the transitions towards greener, more resilience to future health-related shocks. Focus was also resilient and inclusive societies and economies. on undertaking efforts to ensure a rapid recovery from the crisis. Key Outcomes of Rome Summit, 2021 under the G20 Finance Track  For People, the focus was on overcoming inequalities and promoting equal opportunities in health, 1. Reflections on Global Economic Outlook- education, employment and human development, starting Leaders recognized that over 2021, global economic with the most vulnerable groups. activity has been recovering at a solid pace, due to the roll-out of vaccines and continued policy support,  For Planet, environmental sustainability including however, the recovery is highly divergent across and delivery on the commitments under the Paris Agreement within countries, and exposed to downside risks, in and Sustainable Development Goals were targeted; particular due to the possible spread of new variants of COVID-19 and uneven vaccination paces. Leaders  For Prosperity, digital transformation was agreed that they would continue to sustain the recovery, targeted such that it translates into opportunity for all and avoiding any premature withdrawal of support measures, productivity growth. while preserving financial stability and long-term fiscal 47Annual Report 2021-2022 sustainability and safeguarding against downside risks including through promoting sustainable capital flows, and negative spill-overs. Leaders also committed to developing local currency capital markets and maintaining advancing the forward-looking agenda set in the G20 a strong and effective Global Financial Safety Net with a Action Plan. strong, quota-based, and adequately resourced IMF at its centre. Leaders also committed to revisiting the 2. Global Health: Leaders agreed to advance their adequacy of IMF quotas and will continue the process of efforts to ensure timely, equitable and universal access IMF governance reform under the 16th General Review to safe, affordable, quality and effective vaccines, of Quotas, including a new quota formula as a guide, by therapeutics and diagnostics, with particular regard to the 15 December 2023. needs of low- and middle-income countries. Leaders reaffirmed their commitment to the Global Health Summit 6. Infrastructure Investment - Leaders endorsed Rome Declaration as a compass for collective action and the G20 Policy Agenda on Infrastructure Maintenance committed to strengthening global health governance. and noted that in line with the G20 Roadmap for Leaders acknowledged that financing for pandemic Infrastructure as an Asset Class, and building on the G20 prevention, preparedness and response (PPR) has to Infrastructure Investors Dialogue, they would continue, become more adequate, more sustainable and better in a flexible manner, to develop further the collaboration coordinated and requires continuous cooperation between the public and private investors to mobilise between health and finance decision-makers. To that end, private capital. They also agreed to continue to advance the Leaders established a G20 Joint Finance-Health the work related to the G20 Principles for Quality Task Force aimed at enhancing dialogue and global Infrastructure Investment and extend the Global cooperation on issues relating to pandemic PPR, Infrastructure Hub mandate until the end of 2024. promoting the exchange of experiences and best 7. Policies for the transition-Leaders welcomed practices, developing coordination arrangements the introduction of a Pillar dedicated to Protecting the between Finance and Health Ministries, promoting Planet in the G20 Action Plan and agreed on the collective action, assessing and addressing health importance of a more systematic analysis of emergencies with cross-border impact, and encouraging macroeconomic risks stemming from climate change. effective stewardship of resources for pandemic PPR, They welcomed the constructive discussions held at the while adopting a One Health approach. Venice International Conference on Climate and at the 3. Support to vulnerable countries: Leaders G20 High Level Tax Symposium on Tax Policy and welcomed the new general allocation of Special Drawing Climate Change and recognized that the policy dialogue Rights (SDR), implemented by the International Monetary on the macroeconomic and fiscal impact of climate Fund (IMF), which has made available the equivalent of change policies could benefit from further technical USD 650 billion in additional reserves globally. Leaders work. also welcomed the ongoing work to significantly scale up 8. Sustainable Finance- Leaders welcomed the the Poverty Reduction and Growth Trust's lending establishment of the G20 Sustainable Finance Working capacity and called on the IMF to establish a new Group (SFWG) and endorsed the G20 Sustainable Resilience and Sustainability Trust (RST) - in line with its Finance Roadmap and the Synthesis Report. They mandate - to provide affordable long-term financing to welcomed the FSB report on the availability of data on help low-income countries, including in the African climate-related financial stability risks and the FSB report continent, small island developing states, and vulnerable on promoting globally consistent, comparable and middle-income countries. reliable climate-related financial disclosures and its 4. Debt Service Suspension Initiative (DSSI) - recommendations. Furthermore, the Leaders also Leaders welcomed the progress achieved under the G20 welcomed the work programme of the International Debt Service Suspension Initiative (DSSI) and the recent Financial Reporting Standards Foundation to develop a progress on the Common Framework for debt treatment baseline global reporting standard under robust beyond the DSSI. Leaders committed to step up efforts governance and public oversight, building upon the to implement the Common Framework in a timely, orderly FSB's Task Force on Climate-Related Financial and coordinated manner and looked forward to progress Disclosures framework and the work of sustainability in the current negotiations under the Common standard-setters. Framework. They also affirmed the importance of joint 9. Financial Sector - Leaders welcomed the FSB efforts by all actors, including private creditors, to continue final report on the lessons learnt from the COVID-19 working towards enhancing debt transparency. pandemic from a financial stability perspective and the 5. International Financial Architecture- Leaders proposed next steps. Leaders committed to strengthening reiterated commitment to strengthening long-term the resilience of the non-bank financial intermediation financial resilience and supporting inclusive growth, (NBFI) sector and also endorsed the FSB final report on 48Department of Economic Affairs I policy proposals to enhance money market fund (MMF) 14. Data Gaps: Leaders took note of the work done resilience. Further, Leaders also welcomed the progress so far by the IMF, in close cooperation with the FSB and reported against milestones set for 2021 by the G20 the Inter-Agency Group on Economic and Financial Roadmap to enhance cross-border payments, and Statistics (IAG) towards a possible new G20 Data Gaps endorsed the ambitious but achievable quantitative global Initiative and looked forward to its further development. targets for addressing the challenges of cost, speed, Contribution of India for the Summit transparency and access by 2027 set out in the FSB India constructively engaged in the discussions report. under various work streams of the Finance Track during 10. Technological Innovation - Leaders reiterated the G20 Italian Presidency. We ensured that a strong that no so-called "global stablecoins" should commence voice is lent to the ongoing discourse that not only conveys operation until all relevant legal, regulatory and oversight India's position on the agenda issues but is also aimed requirements are adequately addressed through at representing the views of the Emerging Market appropriate design and by adhering to applicable Economies (EMEs) in general. standards. Further, Leaders encouraged the Committee As a co-chair of the Framework Working Group on Payments and Market Infrastructures, Bank for (FWG), India along with UK and the G20 Presidency International Settlements Innovation Hub, IMF and World worked alongside the FWG membership in drafting and Bank to continue deepening the analysis on the potential finalizing all deliverables/outcome documents of the role of central bank digital currencies in enhancing cross- FWG viz.- (i) April update of Pillar 2 of G20 Action Plan border payments and their wider implications for the and its progress reports in April and October international monetary system. respectively; (ii) G20 Menu of Policy Options - Digital Transformation and Productivity Recovery; and (iii) 11. Combating money laundering and terrorist Enhancing Risk monitoring and preparedness financing - Leaders reaffirmed their full support for the frameworks. Financial Action Task Force (FATF) and the Global Network and further confirmed their support for India agreed for the final extension of the Debt strengthening the FATF recommendations to improve Service Suspension Initiatives (DSSI) extension to allow beneficial ownership transparency and called on beneficiary countries to mobilize more resources to face countries to fight money laundering from environmental the challenges of the crisis and provide time to move to a more structural approach to address debt vulnerabilities crime, particularly by acting on the findings of the FATF through the Common Framework. India also report. constructively engaged in the discussions for effective 12. Globally fair, sustainable, and modern and swift implementation of the Common Framework to international tax system - Leaders agreed that the final address debt sustainability issues of low-income countries political agreement as set out in the Statement on a Two- and supported the Presidency's continued work towards Pillar Solution to Address the Tax Challenges Arising from enhancing debt transparency. India also joined other G20 the Digitalization of the Economy and in the Detailed members to welcome the new general Special Drawing Implementation Plan, released by the OECD/G20 Rights (SDR) allocation which has made available the Inclusive Framework on Base Erosion and Profit Shifting equivalent of USD 650 billion in additional reserves (BEPS) on 8 October, is a historic achievement. Leaders globally. called on the OECD/G20 Inclusive Framework on BEPS On climate related issues India constantly to swiftly develop the model rules and multilateral highlighted the need to mobilise climate finance instruments as agreed in the Detailed Implementation commitments and technology transfer. India also Plan, with a view to ensure that the new rules will come participated in the 'High-level Tax Symposium' on the role into effect at global level in 2023. of taxation in addressing climate challenges organized by the Italian Presidency and highlighted the challenges 13. Digital Financial Inclusion - Leaders endorsed involved in using tax policy for climate objectives. India the G20 Menu of Policy Options for digital financial literacy also supported the Presidency's initiative to establish the and financial consumer and MSME protection "Enhancing Sustainable Finance Working Group (SFWG) and digital financial inclusion beyond the COVID-19 crisis", endorsement of the Sustainable Finance Roadmap and with the aim to provide a guide for policymakers in their Synthesis Report. efforts to lay the ground for new financial inclusion strategies in the post-pandemic world. Leaders also India supported the health agenda under the welcomed the 2021 GPFI Progress Report to G20 Italian Presidency and supported the establishment of Leaders and the 2021 Update to Leaders on Progress the G20 Joint Finance-Health Task Force aimed at Towards the G20 Remittance Target. enhancing dialogue and global cooperation on issues 49Annual Report 2021-2022 relating to pandemic PPR, promoting the exchange of economy. Focus will also continue on reforming efforts experiences and best practices, developing coordination in global taxation, stronger cooperation in fighting arrangements between Finance and Health Ministries, corruption, deepening of infrastructure financing, and promoting collective action, assessing and addressing pushing for a more democratic, and representative health emergencies with cross-border impact, and international cooperation. encouraging effective stewardship of resources for II BRICS pandemic PPR, while adopting a One Health approach. BRICS is the acronym for an association of five India has been consistently engaged in the major emerging economies: Brazil, Russia, India, China discussions in the BEPS Inclusive Framework in a and South Africa, comprising 41% of the world population, constructive manner. India participated in the work on having 24% of the world GDP and 16% share in the world the two-pillar international tax reform and supported the trade1. The key objective of the BRICS group is to build Inclusive framework statement on 8th October, 2021. south-south cooperation and evolve a coordinated approach to address common concerns of the developing India also supported the work towards the countries, such as international taxation, climate development of the Menu of Policy Options and shared financing, reforms in governance structure of international perspectives on Indian initiatives towards promoting financial institutions (IFIs) etc. The coordinated stance digitalization and financial inclusion in the reports prepared enables BRICS to be a formidable force voicing the by OECD and the World Bank which have led up to concerns and aspirations of the EMDCs in some of the development of the Menu. major global alliances such as the G20. India also contributed in bringing forward the The leaders of BRIC (Brazil, Russia, India, and monitoring of National Remittances Plans for the 2021 China) countries met for the first time in St. Petersburg, Update to Leaders on Progress Towards the G20 Russia, on the margins of G8 Outreach Summit in July Remittance Target and supported the continued 2006. In September 2006, the group was formalised as facilitation of the flow of remittances and the reduction of BRIC during the 1st BRIC Foreign Ministers' Meeting, average remittance transfer costs. which met on the sidelines of the General Debate of the UN Assembly in New York City. After a series of high- India joined other G20 members in supporting level meetings, the 1st BRIC summit was held in and implementing the work under the Italian Presidency Yekaterinburg, Russia on 16 June 2009.BRIC group was to ensure stability of the financial system. India actively renamed as BRICS (Brazil, Russia, India, China, South supported the implementation of the G20 Roadmap to Africa) after South Africa was accepted as a full member enhance Cross-Border Payments. Further, India has at the BRIC Foreign Ministers' meeting in New York in actively contributed its perspective through participation September 2010. Accordingly, South Africa attended the in the Financial Stability Board discussions. 3rd BRICS Summit in Sanya, China on 14 April 2011. Priorities of the G20 in 2022 under Indonesian India has actively participated in all the BRICS Presidency Summits held so far under chair ship of member countries Under the Indonesian G20 Presidency in 2022, and has adopted a pro-active stance for incorporation of the work during the Indonesian Presidency will be closely critical issues in the BRICS Forum. coordinated among the Troika members - Indonesia, Italy Ministry of External Affairs is the nodal Ministry and India (current, previous and incoming G20 overseeing and coordinating across all areas of BRICS presidencies) under the theme - "Recover together, cooperation. IER Division, DEA coordinate on the BRICS Recover Stronger". Financial Cooperation agenda in consultation with The priorities under the Indonesian Presidency Reserve Bank of India and other key stakeholders from in 2022 are structured around three main pillars- (i) Government of India. Global Health Architecture; (ii) Sustainable Energy India assumed the rotating Chair ship of Transition; and (iii) Digital Transformation. The BRICS from January 2021 for one year. The year 2021 Indonesian Presidency will also focus on fighting for the also marked the 15th anniversary of BRICS. The theme aspirations and interests of developing countries and for India's Chair ship was 'BRICS @ 15: Intra-BRICS will also work towards building a fairer world Cooperation for Continuity, Consolidation and governance. Consensus' which aimed at further deepening and Indonesia will continue to take the lead on institutionalizing intra-BRICS cooperation with the ensuring equitable access to COVID-19 vaccines, following 4 priorities: Reform of the Multilateral System; promoting sustainable and inclusive economic 1From MEA website development through MSMEs participation and digital https://brics2021.gov.in/about-brics 50Department of Economic Affairs I Counter-Terrorism Cooperation; Technological and Digital for South-South co-operation and the issue relevant to Solution to SDGs; and People-to People cooperation. the Emerging Market and Developing Economies (EMDEs). One of the major aspect of deliberations was BRICS Financial Co-operation the macroeconomic outlook and risks with a specific focus Financial Cooperation is one of the prominent on how the BRICS economies are placed and responding areas of cooperation in the BRICS forum among a total to the evolving COVID-19 crisis. As an outcome, BRICS of around 30 areas of cooperation that operate within the Finance Ministers and Central Bank Governors Track 1 of BRICS ranging from Finance to trade to adopted a Statement on Global Economic Outlook and agriculture and anti-terrorism. responding to COVID-19 Crisis. The Statement was first of its kind attempt during India's Chair ship under Issues and initiatives under the BRICS financial the BRICS forum. cooperation are dealt by the Ministries of Finance and Central banks of the BRICS nations and such issues The Statement also had an Annexure on are discussed during the meetings of BRICS Finance Snapshot of policy experiences of BRICS countries to Ministers and Central Bank Governors (FMCBG) assisted tackle the economic impact of COVID-19, both in the by their Finance and Central Bank Deputies. Secretary immediate as well as medium to long term; challenges (EA) is India's BRICS Finance Deputy and Deputy confronted in the process of policy implementation; and Governor (RBI) is India's BRICS Central Bank Deputy. potential areas of future cooperation. BRICS 2021 Meetings & Outcomes Infrastructure Investment Issues: Social infrastructure Under the BRICS India Chairship 2021, two with a special emphasis on use of digital technology was meetings of BRICS Finance and Central Bank Deputies another priority area under the BRICS financial and two meetings of BRICS Finance Ministers and cooperation agenda. This agenda was pursued under the Central Bank Governors were held. The first meeting of BRICS PPP and Infrastructure Task Force in collaboration the BRICS Finance and Central Bank Deputies was held with NDB where member countries engaged in virtually on February 24, 2021, wherein priorities and knowledge sharing of financing and use of digital deliverables under the financial cooperation agenda set technologies in enhancing the quality of social for the year 2021 were shared with member countries. infrastructure services. While BRICS countries may have The first Meeting of BRICS Finance Ministers and Central different definitions of social infrastructure, an attempt Bank Governors were held virtually on April 6, 2021, under was made to highlight the key defining characteristics of the co-chair ship of Hon'ble Finance Minister and social infrastructure as compared to economic Governor, RBI. The discussions revolved around efforts infrastructure. needed to be made by BRICS in responding to the COVID-19 crisis through policy support and enhancing As an outcome, BRICS FMCBG endorsed the international coordination. The FMCBG took forward the Report on 'Social Infrastructure-Financing and Use discussions on the deliverables and outcomes on the of Digital Technologies'. The Technical report was one issues that received agreement during the Deputies of the first endeavour to collate information and insights Meeting. on BRICS countries' experiences in social infrastructure. The Report attempted to showcase how BRICS countries The second meeting of the BRICS Finance and Central Bank Deputies was held virtually on July 27, 2021. have leveraged digital technologies to enhance access The meeting focused on discussing the progress made and improve service delivery to meet the unprecedented so far on the deliverables and outcomes envisaged under challenges posed by the pandemic, especially in the the BRICS Finance Agenda of 2021. The second meeting health and education sectors. of BRICS Finance Ministers and Central Bank Governors Custom Cooperation: Finalisation and Agreement of (FMCBG) was held virtually on August 26, 2021 discuss BRICS members on the final text of Agreement on and finalise the key deliverables and outcomes envisaged under the BRICS 2021 Finance Agenda. At the meeting, Cooperation and Mutual Administrative Assistance the ministers discussed the key areas of intra- BRICS (CMAA) in Customs matters was another milestone cooperation that would be crucial in supporting the achieved under BRICS chair-ship. The agreement aimed recovery of BRICS economies and maintaining at creating a framework for BRICS Customs macroeconomic stability, while protecting against future administrations to assist each other in proper uncertainties and risks. administering of customs laws, detection and investigation of Customs offences. To utilize the expertise BRICS Finance 2021 Outcomes and Achievements- of BRICS Customs officials, India also shared a detailed Ministry of Finance Issues plan for conducting a workshop/training at the BRICS Global Economic Outlook: As Chair, India ensured that Customs Training Centre in Bengaluru based on the areas the BRICS Finance agenda for 2021 reflects India's vision of interest expressed by Member countries. 51Annual Report 2021-2022 New Development Bank: Considering the significance c) Under the Contingent Reserve Arrangement of New Development Bank's membership expansion in (CRA) mechanism, the successful completion of the the overall ambit of the Bank's operations; in terms of fourth CRA test run and support the work to improve the supporting the Bank's vision as well as enhancing the framework for coordination between the CRA and the IMF Bank's international standing, India has been seeking that was achieved. the expansion process be carried out with a balanced list d) The BRICS Economic Bulletin 2021 on the theme with a sufficient number of potential countries including 'Navigating the Ongoing Pandemic: The BRICS non-borrowing countries is very crucial. The New Experience of Resilience and Recovery' and the first Development Bank (NDB) established by BRICS in 2015 BRICS Collaborative Study titled 'COVID19: Headwinds have grown to Nine (9) approved members with the and Tailwinds for Balance of Payments of BRICS'. The admission of UAE, Uruguay, Bangladesh and Egypt as Bulletin covers various aspects of the BRICS economies, new members. With the approval of the Cabinet, the impacted by the COVID-19 pandemic, such as divergent Host Country Agreement was executed in December economic recovery, inflation risks, fiscal stress, external 2020 between the NDB and India for establishing the sector performance, financial sector vulnerabilities and Indian Regional Office (IRO) at GIFT City Gandhinagar, other macroeconomic risks. The Collaborative Study Gujarat. This will be the fourth NDB regional office highlights the severe economic disruptions caused by the followed by the other member countries namely, Brazil, pandemic globally and in the BRICS economies, resulting South Africa and Russia. On NDB's General Strategy in sharp current account adjustments both in value and (2022-26), the members welcomed the ongoing process volume terms, as also volatility in capital flows. of its elaboration on the thematic priorities proposed by the Indian Chair which include unlocking and mobilizing e) Another area of discussion was cooperation private investments, promoting co-financing avenues with among the BRICS Payments Task Force (BPTF) and the other major Multilateral Development Banks; exploring 'BRICS Local Currency Bond Fund' initiative and its financing of social infrastructure with a special focus on effective operation. use of digital technologies, and creating a knowledge hub BRICS Summit 2021 on infrastructure financing. Prime Minister, Shri Narendra Modi chaired the Financial Services Cooperation: Another major 13th BRICS Summit virtually on 13th September, 2021. outcome under the BRICS India Chair ship was the The Summit saw the participation of all other BRICS documentation of 'Country-Specific Experiences of Leaders - President Jair Bolsonaro of Brazil, President Fintech Applications in MSMEs'. The case study Vladimir Putin of Russia, President Xi Jinping of China, showcases member countries' experiences on successful and President Cyril Ramaphosa of South Africa. The and effective utilization of technology and FinTech Leaders adopted the XIII BRICS Summit- New Delhi applications for the MSME sector, with the aim to Declaration during the Summit. understand how BRICS countries are making the best III. G24 use of digital technology to shape their policies and to ensure effective credit flow to their respective MSME The Intergovernmental Group of Twenty-Four on sectors, especially in a time of social distancing. International Monetary Affairs and Development, or The Group of 24 (G-24) was established in 1971 as a chapter BRICS Finance 2021 Outcomes and Achievements- of the Group of 77 in order to help coordinate the positions Central Bank Issues of developing countries on international monetary and a) Under the Financial Services Cooperation, the development finance issues, and to ensure that their Report on Digital Financial Inclusion in BRICS was tabled. interests are adequately represented in negotiations on The Report, produced by a team of experts from all the international monetary matters. In particular, the G-24 BRICS central banks, covers the initiatives, innovations focuses on issues on the agendas of the International and reforms undertaken by the BRICS countries to Monetary and Financial Committee (IMFC) and the deepen financial inclusion by leveraging on digital Development Committee (DC) as well as in other relevant technology. International fora. Though originally named after the number of founding Member States, it now has 28 b) Under the Information Security Cooperation, two Members2 (plus China, which acts as a Special Invitee documents were tabled viz; 'e-Booklet of Information since 1981). Security Regulations in Finance' and the 'Compendium on BRICS Best Practices in Information Security Risks: 2G-24 member countries are: Algeria, Argentina, Brazil, Colombia, Supervision and Control' as comprehensive documents Congo (Democratic Republic of), Cote D’Ivoire, Ecuador, Egypt, of regulations and best practices under the BRICS Rapid Ethiopia, Gabon, Ghana, Guatemala, Haiti, India, Iran, Kenya, Lebanon, Mexico, Morocco, Nigeria, Pakistan, Peru, Philippines, Information Security Channel (BRISC). South Africa, Sri Lanka, Syria, Trinidad and Tobago and Venezuela. 52Department of Economic Affairs I The governing body of the G-24 meets twice a V. SAARC & SDF: year, preceding the Spring and Fall meetings of the Framework on Currency Swap Arrangement for International Monetary and Financial Committee and the SAARC Member Countries: Joint Development Committee of the World Bank and the International Monetary Fund (IMF). The plenary G- "Framework on Currency Swap Arrangement for 24 meetings are addressed by the heads of the IMF SAARC Countries" was approved by the Government and the World Bank Group as well as by senior officials of India on March 1st, 2012. The Framework was of the United Nation (UN) System. Issues are first formulated with the intention to provide a line of funding discussed by the Deputies and culminate at the for short term foreign exchange requirements or to meet Ministerial level by the approval of a document that sets balance of payments crises till longer term arrangements out the consensus view of member countries. The are made. Under the facility, RBI offers swaps of varying Ministerial document is released as a public sizes to each SAARC member country (Afghanistan, Communiqué at a press conference held at the end of Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri the meetings. Decision making within the G-24 is by Lanka) depending on their two months import consensus. requirement and not exceeding US$ 2 billion in total, in US$, Euro or INR subject to a floor of USD 100 Million The last G-24 Ministers and Governors Meeting and a maximum of USD 400 million. Apart from the was held virtually on October 11th, 2021. It was chaired country specific limits, there is also a provision of by Governor of the Central Bank of the Islamic Republic 'Standby Swap' of USD 400 Million within the approved of Iran and was followed by the adoption of a Framework to be operated from the unutilized balance Communiqué. The discussions were focused on securing available, within the overall size of the Facility of USD 2 inclusive and sustainable growth for the global economy billion. which will require international cooperation to provide Till date, the validity of the framework has been widespread access to and distribution of affordable extended from time to time. The 'Framework on Currency vaccines, ensure adequate external financial support to Swap Arrangement for SAARC Countries' was last meet sustainable development goals and maintain extended till 13th November, 2022. During FY 2021- till financial market stability. date, the facility has been availed by Maldives, Bhutan IV. OECD and Sri Lanka. The Organization for Economic Cooperation SAARC Development Fund: SAARC Development and Development (OECD), founded in 1961, is a global Fund (SDF), headquartered in Thimphu, Bhutan, was think tank that works on a host of economic and established and inaugurated in 2010 by the SAARC development issues. Today, there are 37 OECD Member countries (Afghanistan, Bangladesh, Bhutan, members3 spanning from South America to Europe and India, Maldives, Nepal, Pakistan and Sri Lanka) to Asia Pacific including several advanced economies and promote the welfare of people of the SAARC region, to three emerging market economies (Mexico, Chile, improve their quality of life and to accelerate economic Turkey). All OECD members are signatories to1960 growth, social progress and poverty alleviation in the Convention on the OECD and are committed to SAARC region. The Fund serves as the umbrella financial democracy and market economy. institution for SAARC projects and programmes. It is aimed to contribute to regional cooperation and India engages with some of the key OECD integration through project collaboration. The projects that bodies through participation in the meetings of the SDF aims to fund fall under three broad categories/ committees, their related bodies and global fora. windows namely, Social, Economic and Infrastructure. Additionally, India and OECD engage in bilateral In India, IER Division of Department of Economic Affairs, activities, periodic reviews and sector- specific M/o Finance is the Counterpart Agency for all SDF related publications. OECD also publishes the OECD Economic matters. Survey of India that is usually done on a two-year cycle. Till date, 5 Surveys have been published with the last Bay of Bengal Initiative for Multi-Sectoral Technical one being released in December 2019. and Economic Cooperation (BIMSTEC): BIMSTEC, a regional organization, came into being on 6th June 1997 3The membership of OECD is constituted by 27 European through the Bangkok Declaration. It comprises of seven countries (Austria, Belgium, Czech Republic, Denmark, Estonia, Member States lying in the littoral and adjacent areas of Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, the Bay of Bengal - Bangladesh, Bhutan, India, Nepal, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Sri Lanka, Myanmar and Thailand. DEA, Ministry of Turkey and United Kingdom), 5 from America (Canada, Chile, Colombia, Mexico, and the United States), 1 from West Asia Finance handles the financial cooperation issues under (Israel), 2 from East Asia (Japan and South Korea), 2 from Asia the BIMSTEC Forum. Pacific (New Zealand and Australia). 53Annual Report 2021-2022 10. Aid Accounts & Audit Division : of Estimates for External Assistance for receipt as well as repayment, preparation of Annual External Assistance 10.1 AAAD under Department of Economic Affairs Brochure, processing of claims, repayment of debt and implements the financial covenants of external Loans/ maintenance of Debt Records. All the Officers/Staff Grants received by Government of India from various members of this Division are well versed with the Multilateral and Bilateral donors. Main functions handled functioning of this system. by this Division are processing the claims received from Project Implementing Authorities of externally aided 10.3.2 IT-application is being promoted by way of projects, to draw down the funds from various external accepting and processing/forwarding of the draw down funding agencies and timely debt servicing liability of claims from various PIAs. PIAs have been provided Government of India in respect of availed external loans. software support for processing the e-claims. Such Besides, this Division is also responsible for maintaining software is being utilized by the PIAs to maximum extent. loan records, external debt statistics, publication of E-claims in the form of SOE/Interim unaudited Financial external assistance brochure on annual basis, and Report (IUFR) ensure faster disbursals. In case of World framing of estimates of external aid receipts and debt Bank, claims are processed in E-disbursement mode servicing. In addition, audit of import licenses issued by through the World Bank's software client connection from DGFT offices for Export Promotion is also conducted by this Division to World Bank. this Division. 10.3.3 The customized software of this division (ICS) is 10.2 Performance/Achievements During Financial being upgraded with a Technical Assistance (TA) from. year 2021-22 (as on 30th November, 2021) Asian Development Bank (ADB). The system is being 10.2.1 Total of 1403 live loan/Grant are being handled tested to check functional and user requirement. The by AAAD. Out of these, 387 loan/Grants accounts are in testing is likely to be complete by January, 2022. After disbursement mode. Rest of the loans are live from debt parallel run of new system for three months, system will servicing point of view. go live by May, 2022 middle or by June, 2022. 10.2.2 External receipts of Loans on Government 10.4 Trainings & Facilitation Account during financial year 2021-22 ( upto 30th Nov. 10.4.1 In order to familiarise the officers/staff of the 2021) is `41144.91 crore. In addition to loan receipts, a Project Implementing Authorities, trainings on E- sum of `116.85 Crore has been received as Cash Grant. submissions are organized by this Division from time to 10.2.3 A comparative position of receipts and time. As a result of initiatives taken by this Division more repayment/payment in the current year as on 30th Nov claims are being received in e-claim forms. In 2021-22, 2021 as compared to corresponding figures of previous Training Programme could not be conducted due to financial are as under: Pandemic. In ` crore 10.4.2 In order to increase the capacity of the officers and staff of this division. Nomination of the officer are SI. Description 2020-21 2020-21 2021-22 sent to ISTM and other training centres for training. The No (Actual) (as on 30th (as on 30th areas covered under the trainings comprises of ethics in Nov., 2020) Nov., 2021) Governance and Administration, O&M, Cash and Budget 1 Receipts and financial management. (Loans and Grants) 118448.15 70983.54 41261.77 10.4.3 This office facilitates other ministries, state 2 Payment of officials; CPSUs in understanding the fund flow (Principal and mechanism in case of externally aided projects. The data Interest) 43152.62 27317.33 25926.21 maintained by this division is shared with various Central 3. Net Transfer and State Government organisations for use in different (1-2) 75295.53 43666.21 15335.56 reports and analysis. 10.3 E-Governance 10.5 Standards & Improvements in service deliveries 10.3.1 The Activities of AAAD have been fully computerized since April 1999. A software known as 10.5.1 All the activities of this division have been "Integrated Computerised System" (ICS) is working. This organised hierarchically and standards in terms of time covers all the activities in the loan cycle i.e. preparation span at each level for their accomplishment have been 54Department of Economic Affairs I defined. The standards set out are being adhered to by therein is given in Annexure I & II respectively. The close monitoring. Stakeholders of this division are well information regarding Pending ATN on PAC in respect defined consisting of three broad groups i.e. Project of Admn.III is NIL. Implementing Authorities External Funding Agencies and 11.3 Complaints Committee on Sexual others. Service to be rendered to these groups is also Harassment of Women Employees well defined i.e. smooth and quick disbursal of the Loans/ Grants, timely debt servicing and to provide management 11.3.1 A Complaints Committee for considering information as and when required. complaints of sexual harassment of women employees in Department of Economic Affairs is in existence in the 10.5.2 To ensure continuous improvement in the Department. performance standards, Management Review Meeting 11.4 Training of Staff Members (MRMs) are being held. In MRMs performance is critically 11.4.1 Department of Economic Affairs deputes its reviewed. Methods/suggestions for maintenance/ officials for training to ISTM and other institutes to improvement of the service delivery standards are increase their efficiency and improvement in the quality discussed. of their work. During the period 1.1.2021 to 30.11.2021 a 10.5.3 This division is ISO 9001:2015 certified division. total of 316 officials were nominated for the trainings of This certification provides additional assurance to all the different levels, which were conducted by the Institute of stakeholders with respect to the stated standards of this Secretariat Training and Management (ISTM), New Delhi, division. The terms and conditions of the certification are C-DAC, Hyderabad (on Cyber Security) and other ensured through annual surveillance audit. Recertification Institutes. of ISO Certificate of this Division was carried out by URS 11.5 Redressal Of Public Grievances: on 30.06.2021. Based upon their findings the ISO 11.5.1 A Centralized Public Grievances Redressal and Certificate has been recertified. Monitoring System (CPGRAM) is operational within the 10.6 Audit of Import Licences Government which attends to all the Public Grievances related to various Ministries/ Departments. During the year 10.6.1 AAAD carries out audit of Import Licenses issued 2021, a total of 3238 fresh public grievance cases were by licensing offices of the Director General of Foreign received in the Department besides 274 brought forward Trade located at 26 stations for promotion of Export. Due from the previous year. Out of these 3512 cases, 3298 to pandemic audit of Licensing Offices could not be cases were disposed off during the year. Apart from undertaken. However during this period more thrust was these, 397 Covid-19 Public Grievances were also on settlement of outstanding paras. As a result of received and the same were disposed of. Further, 162 settlement a sum of `154 lakh has been recovered till Appeals against the disposal of grievances were received 30th November, 2021 compared to same period of and 155 Appeals were disposed of. Adviser (IER & Admn.) previous year based upon audit findings recovery of is functioning as the Nodal Officer for Public Grievances `1420 lakh. in Department of Economic Affairs. 11. Administration Division 11.6 Right To Information Act, 2005 11.1 Functions 11.6.1 In order to facilitate dissemination of information under the provisions of the Right to 11.1.1 Administration Division is responsible for Information Act, 2005, Department of Economic Affairs personnel and office administration, implementation of has taken the following actions : Official Language policy of the Government, implementation of the Right to Information Act, 2005, (i) An RTI Section is in operation in DEA to collect, redressal of public grievances, training of officials, Record transfer the applications under the RTI Act, 2005 Retention Schedule, Complaints Committee on Sexual to the Central Public Information Officers/ Harassment of Women Employees etc. Appellate Authorities/Public Authorities concerned and to submit the quarterly returns 11.2 Staff Strength regarding receipt and disposal of the RTI 11.2.1 The staff strength in Department of Economic applications/ appeals to the Central Information Affairs and its attached/sub-ordinate offices/statutory Commission. bodies along with the representation of Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward (ii) Details of the Department's functions along with Classes (OBCs) and persons with Disabilities (PwDs) its functionaries etc. have been placed on the 55Annual Report 2021-2022 RTI portal of the Departments official website 11.7.3 Due to Covid-19 lockdown many official language (www.dea.gov.in)as required under section 4(1) activities were disrupted. However, as soon as the (b) of the RTI Act. conditions became normal, the official language related (iii) All Under Secretaries/Deputy Directors/Assistant activities initiated in the department are as follows: Directors, Sr. Accounts Officers and Economic I. Hindi month Officers level officers have been designated as Like other years this year also during 1st Central Public Information Officers (CPIOs) September 2021 to 30th September 2021 'HINDI under section 5 (1) of the Act, 2005 in respect of MONTH' was organised in the Department. On this subject being handled by them. occasion honorable Minister of state for Finance released (iv) All Deputy Secretaries/Directors have been a message on 14th September 2021, 'HINDI DIWAS' in designated as First Appellate Authorities in terms the Ministry of Finance and its subordinate offices in which of Section 19 (1) of the Act, 2005 in respect of he appealed to all its officers and officials to do their work US/DD/AD and EO working under them and maximum in official language, Hindi. During this period designated as CPIOs. many competitions were organised to encourage Hindi (v) The list of CPIOs and AAs is updated and in their official work with maintaining social distancing as uploaded time to time in the website of DEA for per government rules. facilitation of the viewer and RTI applicants. To facilitate the receipt of applications under the RTI II. Bilingual Website Act, 2005 a provision has been made to receive The website of the Department is bilingual. the applications at the facilitation counter of the Besides other material, all budget document, economic Department at Gate No. 8, where RTI Cell has survey and other publications and important circulars been shifted. The applications are received and were uploaded simultaneously in Hindi and English. further forwarded to the concerned CPIOs/Public Authorities. III. Official language inspection Inspection of Subordinate Offices: Security paper (vi) The RTI application can be filed through online mill, Hoshangabad was inspected on 17-18 August, 2021 www.rtionline.gov.in. The RTI applicant can see to ensure compliance with the Official Language Act, rules their application status including reply of their made thereunder and annual program and orders and question through the website. Further, transfer of application can also be done online. These all instructions relating to the official language. Joint Director process has resulted in significant reduction in (OL), PPS and Section Officer participated in this processing RTI application. inspection. (vii) During the period from 1st January, 2021 to 30th IV. Dispatch of quarterly progress report November, 2021, 3219, RTI applications and Like every year this year too quarterly progress 250 First Appeals were received in the report from all sections/divisions were collected. Department. An amount of Rs. 4604/- (Rupees Ministry's correspondence in Hindi is about 50%. The Four Thousand Six Hundred and Four only) has consolidated Quarterly Report sent to official language been collected as RTI fees and Documents fee Department, MHA. under the RTI Act. V. Official Language Implementation Committee 11.7 Use of Hindi in Official work meetings 11.7.1 The progress of implementation of various However, due to Covid-19, Official Language programs under the Official Language Policy has been Implementation Committee meetings could not be held continuously reviewed during the year under report. regularly. 11.7.2 All documents were presented bilingual in VI. Circulation of Annual Program Parliament. Section 3(3) of the Official Language Act, Annual Programme 2021-2022, issued by 1963 and Rule 5 of the Official Language Rules, 1976 Official Language Department, MHA, was circulated made thereunder and other instructions issued by the Department of Official Language were fully followed. among all sections/divisions of the Department along with During the year, several steps were taken in the subordinate offices and its link has been published on department to increase the use of Hindi in official work. the dashboard of Department's e-office. 56Department of Economic Affairs I VII. Cleanliness awareness from the various Universities in India as well as abroad. This Library also serves as the Publications Section of On the occasion of organizing cleanliness the Ministry, coordinating in the procurement and awareness various competition like slogan, Essay and distribution of official documents with the various drawing competitions were organized in the month of institutions/individuals on demand in India and abroad. November to create awareness among all the employees of the office. Prize distribution to the winner will be done 11.8.2 Collection this year. 11.8.2.1 Library has specialized collection of around two VIII. Projected Schemes lakh documents on Economic and Financial matters and (i) In the month of March, a Hindi workshop related subscribe to more than 800 periodicals/newspapers to the Official Language will be organized with annually and databases like Agriwatch, CMIE, Indiastate the objective of bringing the information about and access to e-journals and back-filed collection through the Official Language Policy and the instructions JSTOR is also available. related to it, as soon as the budget related work 11.8.3 Services and economic review is done. 11.8.3.1 Library provides different kinds of services viz. (ii) The scheme related to Original book writing in lending, inter-library loan, consultation, reprographic, Hindi 2021-22 will be circulated in the circulation of newspapers and magazines, reference department. service, the Finance Library also undertakes the work of (iii) During the year, 11 RTI cases related to Hindi distribution of publications of Ministry of Finance and section were received and it has been completed. Reserve Bank of India to State Governments, Foreign Governments and renowned institutions in India as well (iv) Under official language activities, there is a plan as abroad. to inspect all the sections/divisions of the department on official language usage. 11.8.4 Digital record 11.8.4.1 Indian Official Documents relating to Economic IX. Hindi Translation work and Finance Subject (Center and State since All Budget documents are presented to the independence) and Ministry of Finance Gazette Parliament in Hindi and English. Besides Budget Notifications published in the Pt. 2 Sec. 3 Sub-section (i) documents, Hindi translation Branch has also prepared (ordinary) for the year 1955 to 1990 has been digitized. Hindi versions of Supplementary Demands, Economic So far around 02 TB Data has been digitized and available Classification Report, Reports on Public Statistics and in digital format. Status Report of External Debt, FRBM Quarterly Reports 11.8.5 Computerisation which were laid before the Parliament. 11.8.5.1 The Library is fully automated. The Library uses The translation of other Official Documents as LIBSYS Library package for database management, envisaged in the Official Languages Act, 1963 and Rules retrieval, Library automation and other in-house jobs. The made there under was also under taken by the Hindi internet facility is also available in the Library through Branch during the year under report. These include which information is provided to the Officers of Ministry agreements with Foreign Governments and international of Finance. Agencies, Cabinet Notes, Parliament Questions/ 11.8.6 Other works Assurances, Notifications, Standing Committee Papers, i. Modernization and infrastructure improvement Action Taken Reports, Monthly Summary for the Cabinet, was undertaken by the Library and 95% work has Official letters and External Funding Report. been completed. 11.8 Finance Library & Publication Section ii. The work of reimbursement of newspapers and 11.8.1 Introduction magazines of DEA is also undertaken by the Finance Library. 11.8.1.1 Finance Library & Publication Section was established in 1945. Finance Library functions as the iii. This Library also serves specifically as the Central Research and Reference Library in the Ministry Publications Section of the Ministry; coordinating and caters to the needs of Officials of all the Departments in the procurement and distribution of official of the Ministry of Finance, Ad-hoc Committees and documents with the various institutions/ Commissions set from time to time and research scholars individuals on demand in India and abroad. 57Annual Report 2021-2022 12. Bilateral Cooperation & Sustainable A. Bilateral Official Development Assistance Finance Division Policy 12.2 Bilateral Official Development Assistance 12.1 Bilateral Cooperation & Sustainable Finance Division deals with the following functions: Policy: a. Bilateral Official Development Assistance 12.2.1 India has been accepting external assistance from bilateral partners in the form of loans, grants and Policy: Bilateral Development Assistance technical assistance for development of infrastructure, from all G-8 countries, namely, USA, UK, social sector and for enhancement of knowledge/skills of Japan, Germany, France, Italy, Canada and Indian nationals at both Centre and States level. As per Russian Federation as well as the European the guidelines issued by this Department in 2005, bilateral Union and Republic of South Korea and the development assistance can be accepted from all G-8 policy relating to it. countries, namely USA, UK, Japan, Germany, France, Italy, b. Lines of Credit (LoCs) extended by Canada and the Russian Federation as well as from the Government of India under Indian European Commission. European Union countries outside the G-8 can also provide bilateral development assistance Development and Economic Assistance to India, provided they commit a minimum annual Scheme (IDEAS) and under Concessional development assistance of USD 25 million. Financing Scheme (CFS) 12.2.2 A revised set of guidelines on Official c. Economic Policy Dialogues and Forums: Development Assistance for Development Cooperation BC Division deals with following dialogues/ with bilateral partners were issued in December, 2015. meetings- After issuance of revised guidelines, the Republic of South  India-UK Economic and Financial Korea has been recognized as bilateral partner country Dialogue for accepting Official Development Assistance from them.  India-US Economic and Financial 12.3 Bilateral Development Cooperation with Partnership Japan  Indo-French Bilateral Dialogue on 12.3.1 Japan-Official Development Assistance: Economic and Financial Issues 12.3.1.1 Japan has been extending Official Development Assistance (ODA) to India since 1958. Japanese ODA in  India-Korean Finance Minister's Meeting the form of loan assistance, grant aid and technical  India- Japan Strategic Dialogue on assistance to India is received through Japan International Economic Issues, Cooperation Agency (JICA). Japan is the largest bilateral donor to India.  India- Switzerland Financial Dialogue 12.3.1.2 Government of Japan has committed JPY  India-EU Macro-economic Dialogue 276.296 billion (`19,521 crore approx.) for 7 projects to  India-China Financial Dialogue India from January 1, 2021 to November 30, 2021. As on November 30, 2021, 72 loan projects are under  India- Australia Economic Policy implementation with Japanese loan assistance. The loan Dialogue amount committed for these projects is JPY 3095.806  India-New Zealand Economic Policy billion (`1.88 lakh crore approx.). The cumulative Dialogue commitment of ODA loan to India has reached JPY 6,515 billion on commitment basis till November 30, 2021.  India-German Finance Ministry Senior 12.3.1.3 The ODA loan disbursement to India from Officers Meeting January 1, 2021 to October 31, 2021 was JPY 297.30  International Platform on Sustainable billion (`21,374.24 crore). Finance 12.3.2 Grant in Aid  India-Korea Working Group Meeting 12.3.2.1 The Government of Japan provides Grant in Aid to India under the following sectors and criteria: d. UNDP and Sustainable Finance i) Criteria: e. Short-term Foreign Training Courses: The Division is the focal point for administering a) Development impacts; all short-term foreign training courses of the b) Utilization of Japanese technology/know- duration up to four weeks offered by various how and likelihood of its dissemination to international agencies. other areas. 58Department of Economic Affairs I ii) Sectors: Programme (JPP) was introduced in 2002. JPP is a technical cooperation program implemented by JICA to a) Transport sector, including projects using contribute to the social and economic development of information and communication developing countries at the grass-roots level, in technology (ICT) and road projects with collaboration with partners in Japan, such as NGOs, slope protection measures (potential line universities, local governments and public interest ministries could include Ministry of Road corporations while applying for JPP, Indian NGOs are Transport and Highways, Ministry of advised to seek a Japanese partner to take part in the Housing & Urban Affairs, etc.) scheme. This has two components: b) Power sector, including small-scale hydro 1. Japanese NGO / Institution / Local power projects and solar power projects Government through JICA will support Indian (potential line ministries could include organization with Japanese expert Ministry of Power, Ministry of New and personnel, equipment provision and Renewable Energy, etc.) Financial support through FCRA route; 12.3.2.2 There are three (3) ongoing Grant-in-Aid projects 2. Japanese NGO / Institution / Local viz. a) The Project for Implementation of Advanced Government through JICA will provide Information and Management System in Core Bengaluru training of Indian personnel in Japan. b) Construction of the International Cooperation and Convention Centre in Varanasi and c) The Economic and 12.3.6 Grassroots Funding Social Development Programme (Provision of Medical 12.3.6.1 The Government of Japan also provides small Equipment) assistance to Indian NGOs under its Grassroots Funding 12.3.3 Technical Cooperation Programme Programme through FCRA route on receipt of no objection from DEA. 12.3.3.1 Technical Cooperation aims at transfer of technology and knowledge in a bid to develop and 12.3.6.2 During 1st January 2021 to 30th November improve human resources and thus contribute to the 2021, DEA has cleared 9 GFP proposals. Socio-Economic Development of India. The Technical 12.3.7 Green Aid Plan Cooperation covers a broad spectrum of fields ranging from basic human needs to Agriculture and Industrial 12.3.7.1 The Government of Japan (Ministry of Economy, Development. Trade and Industry) provides technical assistance under Green Aid Plan through agencies like New Energy and 12.3.3.2 The main components of Technical Cooperation Industrial Development Organization (NEDO), an are (i) Technical Cooperation Projects, (ii) Technical organization of METI. The areas of cooperation are Cooperation by Experts, (iii) Technical Cooperation by prevention of water pollution, air pollution, treatment of Training, (iv) Technical Cooperation by Development wastes and recycling and energy conservation and Planning. alternative energy source. Model projects are carried out 12.3.3.3 There are 14 ongoing projects under Technical by NEDO on the basis of the MoU signed by NEDO with Cooperation Programme. Department of Economic Affairs, the concerned line ministry and the implementing agency. NEDO sends 12.3.4 JOCV Programme Japanese experts to Indian organizations to impart 12.3.4.1 JICA's volunteer programs, such as Japan training and conducts training programmes in Japan. Overseas Cooperation Volunteer (JOCV), support a wide 12.4 Bilateral Development Cooperation between range of local activities by Japanese citizens who intend India and Germany to cooperate in the economic and social development as well as in the reconstruction of emerging countries. 12.4.1 Germany, through their Ministry for Economic Through these cooperation activities, participating Cooperation & Development (BMZ) , has been providing volunteers can, not only contribute to the development both financial and technical assistance to India since of partner countries but also gain valuable experience in 1958. In 2008, the German Ministry for the Environment, terms of international goodwill, mutual understanding and Nature Conservation and Nuclear Safety (BMUB) also an expansion in their international perspectives. initiated assistance under German Government's 'International Climate Protection Initiative (IKI)', which is 12.3.4.2 During 1st January 2021 to 30th November an additional instrument of the German Government over 2021, 7 proposals were posed to Embassy of Japan and No-objection to 1 Volunteer was issued. and above and without undermining the existing sources of Official Development Assistance. Priority areas of 12.3.5 JICA Partnership Programme Cooperation includes: Energy, Sustainable Urban 12.3.5.1 Recognizing the growing importance of NGOs Development as well as Environment and Management in international cooperation, the JICA Partnership of Natural Resources. 59Annual Report 2021-2022 12.4.2 Germany implements its financial assistance 12.4.5 At present, there are 34 ongoing projects programmes through KfW, the German Government's receiving financial assistance from KFW to the tune of Development Bank. The technical assistance 4.25 billion Euros from Germany. Some of the major programmes are implemented through GIZ (earlier GTZ) ongoing projects funded by Germany include Nagpur - a fully-owned corporation of German Government. Metro Rail project, Green Energy Corridor projects in Financial Assistance is provided as Reduced Interest various states of India, Environment friendly urban Loan (EURIBOR-based loan) as well as Financing grants. development in Ganga States, Climate Friendly Urban The technical assistance is provided in the form of grant Mobility Integrated Water Transport Kochi etc. Germany and services by project experts. had extended assistance to India in form of Euro 460 million DPL through KFW, Euro 40 million grant through 12.4.3 Major areas of cooperation: UNICEF and Technical Assistance through GIZ during (a) Indo-German Solar Partnership for the COVID 19 pandemic. transformation of energy generation through stronger utilization of solar energy. 12.5 Bilateral Development Cooperation with AFD, France (b) Indo-German Energy Forum: Green Energy Corridors for financing transmission 12.5.1 The Government of France has been extending infrastructure for integrating additional development assistance to India since 1968. renewable energy capacities into the grid 12.5.2 In 2006, Government of France proposed to and ensuring grid stability. provide untied development assistance to India through (c) Sustainability Development to address the the French Agency for Development (AFD). In this regard, challenges and transform cities into an inter-governmental Agreement was signed between sustainable living environment. The Smart the two Governments on 25.01.2008 during the State visit City Mission envisages providing green, of French President Mr. Nicholas Sarkozy to India. modern infrastructure services to Indian 12.5.3 AFD has been entrusted with a strategic mandate cities and their population. tailored to the Indian Government's priorities. It is (d) In light of the Indian Ganga Rejuvenation implemented through three main focuses for cooperation: Mission, the cleaning of rivers was identified Promote sustainable and integrated urban development; as one of the key areas of future strategic Encourage energy efficiency and renewable energy partnership as mentioned in the Joint development; Conserve the country's biodiversity and Statement of Hannover in April, 2015. natural resources. (e) Indo-German Green Urban Mobility to 12.5.4 Since 2008, total net cumulated funding by AFD finance projects for efficient public transport amounts to EUR 2.2 billion (equiv. to more than 16,800 systems cr INR), these funding were provided through ODA- 12.4.4 Under bilateral development cooperation compliant loans, on a sovereign and non-sovereign basis. programme, apart from high-level visits, two annual On an average AFD makes annual commitment of Euro meetings at the level of Joint Secretary/ Additional 250 million. In 2021, loan agreement worth Euro 250 Secretary (Bilateral Cooperation) i.e. Indo-German Annual million for Surat Metro Rail project was signed. Consultations and Indo-German Annual Negotiations are Major areas of ongoing cooperation are in the held, generally during 2nd quarter and 4th quarter of the field of: year respectively. In the Annual Consultations, apart from the policy issues, the discussion on ongoing projects and a) Cooperation in the field of public transport sector; new projects and review of ongoing projects are made. In Annual Negotiations, the Government of Germany b) Smart City Mission and makes commitments of funds for new projects as well c) Water, Environment and Biodiversity sector. as for additional funding for ongoing projects. On an average Germany makes an annual commitment of Euro 12.5.5 In addition to the loans it allocates in India, AFD 1 billion. The Indo-German Annual Negotiation meeting can set up technical assistance programs which aim to 2021 was held through virtual mode on 24th November build the expertise of its counterparties. AFD benefits from 2021. The total volume of funds committed by the German a close partnership with the European Union for this side for Technical and Financial Cooperation projects and purpose in the context of fund delegations. At present programmes in 2021 amounts to EUR 1292.61 million there are 8 ongoing loans of AFD, both sovereign and (EUR 1235.5 million FC and EUR 57.11 million TC). The non-sovereign loans under the Development cumulative volume of commitment made by the Germany Cooperation. A development policy loan for Euro 200 for bilateral Technical and Financial Cooperation till 2021 million on social protection measures for COVID 19 was amounts to EUR 21.91 billion. arranged by Government of France through AFD. 60Department of Economic Affairs I 12.5.6 French Government also provides technical also, under mandate, from Union or Member States' assistance in the form of FASEP facility Scheme. FASEP budgetary resources. Under these arrangements, the facility is managed by the Treasury and Economic Policy EIB's funds are utilized to finance investments in General Directorate of the French Ministry of Economy, countries signatory to Cooperation Agreement with the Finance and Industry. Under this facility, grants are EU. provided to finance technical cooperation in the area of 12.8.2 EIB in India: infrastructure projects (water, sanitation, solid waste, environment, transport, energy). 12.8.2.1 EIB's activities in India emanate from the Joint Action Plan (JAP) of the Strategic Partnership between 12.6 Bilateral Development cooperation with the EU and India. EIB intends to increase its lending Republic of Korea: activities focusing mainly on environmental sustainability 12.6.1 In the Joint Statement for Special Partnership and large infrastructure project through FDI, transfer of signed during the Prime Minister's visit to Republic of technology and know-how. EIB investments in India are Korea (RoK) during May 18-19, 2015, it was agreed to governed by the Framework Agreement for Financial upgrade the bilateral relationship between the two Cooperation. This agreement was signed between India countries to a 'Special Strategic Partnership' and to and EIB on 25th November 1993 by the Charge d' Affairs expand it into a wide range of areas. Accordingly, RoK of India at Brussels. The Framework Agreement was was accepted as bilateral partner for development initially valid for a period of three years and later it was cooperation during October, 2016. In the 5th India-Korea extended sine die vide amendment dated 24th Finance Minsters' Meeting held on June 14, 2017 in November 1998. Seoul, an Economic Development Cooperation Fund (EDCF) Agreement was signed between the two 12.8.3 EIB loan signed during 2021-2022 by DEA, GOI Governments for US$ 1 billion Official Development Assistance (ODA) to India. 12.8.3.1 DEA signed a Finance Contract for the second 12.7 European Union (EU) Development tranche loan of up to Euro 150 million with EIB for Pune Cooperation Metro Rail Project on May 7, 2021 12.7.1 The European Union (EU) provides development 12.9 Bilateral Development Cooperation with assistance to India in the form of Grants. The priority United Kingdom areas include environment, public health and education. 12.9.1 The United Kingdom (UK) has been providing Since 2014, the financial component of development development assistance to India since 1958. The assistance from EU was discontinued, however technical assistance from the UK, through its Department for cooperation and exchange of best practices remains International Development (DFID), flows to mutually active in three lines (i) in areas of mutual interest (ii) in agreed government projects and programmes in the form areas relevant to the Sustainable Development Goals with of financial and technical assistance. The Development civil society organizations and (iii) at a regional level to assistance is received mainly for achieving the address global challenges. Sustainable Development Goals (SDGs). Presently, 12.7.2 Presently, the operational implementation phase Odisha, Madhya Pradesh and Bihar are the three focus of only ongoing technical assistance project, namely states of DFID. Support to Renewable Energy, Clean Technologies and 12.9.2 With effect from January 2016, all new Energy Efficiency in India has recently concluded on development cooperation programmes by the UK September 30, 2021 while the closure/execution phase Government have been either Technical Assistance (TA) of 24 months is undergoing. programmes focused on sharing skills and expertise, or 12.8 European Investment Bank (EIB) in investments in private sector under PSDI projects 12.8.1 Investments in India by European Investment focused on helping the poor. Bank (EIB) 12.9.3 With effect from September 2, 2020, the UK side 12.8.1.1 The European Investment bank is the has informed that the Foreign and Commonwealth Office European Union's financing institution which was (FCO) and the Department for International established in 1958 under the treaty of Rome (1957) to Development (DFID) have ceased to exist. The Foreign, provide financing for capital investment. The members Commonwealth and Development Office (FCDO) will of the EIB are the member States of the European Union, take on responsibility for Memorandums of who have all subscribed to the Bank's capital. Outside Understanding and other contracts agreed by either the the European Union, EIB financing operations are Foreign and Commonwealth Office or the Department conducted principally from the Bank's own resource but for International Development. 61Annual Report 2021-2022 12.10 Bilateral Development Cooperation with USA B. Concessional Credit extended by Government of India under IDEAS and CFS 12.10.1U.S. Agency for International Development (USAID) 12.11 Lines of Credit (LoCs) extended to developing countries under Indian Development and 12.10.1.1 The United States of America bilateral Economic Assistance Scheme (IDEAS). development assistance to India started in 1951 and it is mainly administered through the USAID. Since its 12. 11.1 Lines of Credit (LoCs) form an important commencement, USAID has provided economic component of India's diplomatic strategy and have been assistance of over US $ 17 billion to India in various very useful in generating goodwill and building long term sectors for over 555 projects. Currently, following seven partnerships. GoI extends Lines of Credit to Developing projects are being implemented by USAID in partnership African and Non-African Countries through Indian Development and Economic Assistance Scheme with GOI for which US $ 70 million (approx.) has been (IDEAS). This Scheme was initially known as "India committed during this year: Development Initiative" (IDI) and flows from the i. Partnership Agreement for Agri. & Food announcement made by the Finance Minister in the Union Security Program; Budget for FY 2003-04. GoI has been extending Lines ii. Partnership Agreement for Sustainable of Credit to developing countries under IDEA Scheme Forests and Climate Adaptation Program; since 2005-06. Initially proposed to be operated for five years from 2005-06 to 2009-10, the scheme was granted iii. Partnership Agreement for Water, Sanitation first extension in 2010 from 2010-11 to 2014-15. Second and Hygiene (WASH); extension to the scheme has been granted in 2015 for iv. Partnership Agreement for Renewable Energy another five years i.e. 2015-16 to 2019-2020, with revised Technology Commercialization & Innovation; set of guidelines with a view to improve efficiency and make the system robust and transparent. v. Partnership Agreement for Health Project; 12.11. 2 LoCs are being operated through Export-Import vi. Disaster Management Support Project; and Bank of India, which raises resources from the market vii. Partnership Agreement for the Energy and provides LoCs to recipient Governments at Efficiency Technology Commercialization and concessional rates. GoI backs the LoCs through a Deed Innovation Project. of Guarantee in favour of the lending bank to guard against any default by the borrowing Government in payment of 12.10.1.2 USAID also extended support to India's fight interest and principal to the lending bank. GoI also extends against COVID-19 by providing 'in-kind' assistance under Interest Equalization Support (IES) to the lending bank for the Health Partnership Agreement. Assistance comprised enabling it to lend on concessional terms. of supplies like Oxygen Cylinders, Oxygen Regulators; Pulse Oximeters; Abbott RDKs; N-95 Face Masks. 12.11. 3 As on November 30, 2021, 310 LOCs have been extended to 66 countries for an amount of USD 31.18 12.10.2United States Trade and Development Agency billion. Out of this, value of contracts covered under the (USTDA) LOC by EXIM Bank is USD 11.99 billion and disbursements 12.10.2.1 USTDA promotes economic growth in emerging made are USD 8.90 billion. During FY 2021-22 (i.e. April, economies by facilitating the participation of U.S. 2021 to November 30, 2021), 3 LoCs worth USD 257.29 businesses in the planning and execution of priority million have been extended to developing countries. development projects in host countries. Since 1992, the 12.12 Credit extended under Concessional U.S. Trade and Development Agency has supported over Financing Scheme (CFS) 100 priority development projects in India with public and private sector sponsors. 12.12.1 The Concessional Financing Scheme was introduced in September 2015 after obtaining the approval 12.10.3International Development Research Centre of CCEA to support Indian companies bidding for (IDRC) strategically important infrastructure projects abroad. The 12.10.3.1 The Canadian bilateral development assistance guidelines on CFS were revised on 10-08-2018 for the to India is received through IDRC - an entity created and period from 2018-2023. funded by the Parliament of Canada. IDRC supports 12.12.2 Under the Scheme, MEA selects the specific research activities in developing countries to promote projects keeping in view strategic interest of India and growth, reduce poverty, and drive large-scale positive sends the same to Department of Economic Affairs change. In India, IDRC extends grant assistance to (DEA). The strategic importance of a project to deserve various Govt. and Non-Govt. organizations for research financing under this Scheme, is decided, on a case-to- projects in the field of agriculture, health and family case basis, by a Committee chaired by Secretary (DEA) welfare, etc. and with members from Department of Expenditure, 62Department of Economic Affairs I Ministry of External Affairs, Department for Promotion of Secretary, is an annual feature, hosted by both countries Industry and Internal Trade (DPIIT), Department of on alternate years. So far, nine dialogues have been Commerce, Department of Financial Services and held between India- Australia. The last dialogue between Ministry of Home Affairs. The Deputy National Security India-Australia was held in virtual format on 04 Adviser is also a member of this Committee. Once November 2020. approved by the Committee, DEA issues a formal letter 12.13.4 India-EU Macro-Economic Dialogue to EXIM Bank conveying approval for financing of the project under CFS. 12.13.4.1 Under the Joint Action Plan for India-EU Strategic Partnership adopted during the India-EU 12.12.3 The Scheme is being operated through the Summit in New Delhi in 2005, it was agreed to "Establish Export-Import Bank of India, which raises resources from a regular Macro Economic dialogue' on matters of the market to provide concessional finance. GoI provides common interest, to exchange information and counter guarantee and interest equalization support of experience on economic developments in respective 2% to the EXIM Bank. economies as well as policy context and global 12.12.4 Till date, one Project, i.e., 2X660 MW Maitree challenges. Accordingly, India-EU Macro Economic Super Thermal Power Project of USD 1.6 billion in dialogue has been held annually since 2007 with venues Rampal, Bangladesh has been approved under the CFS. alternating between New Delhi and Brussels. The first The project is being implemented by Bangladesh India dialogue was held in New Delhi. So far 11 Macro Friendship Power Company Pvt. Ltd.(BIFPCL), a joint Economic Dialogues have been held. The last dialogue venture of NTPC Ltd. and Bangladesh Power was held on February 19, 2021 (Friday) through video Development Board. conferencing. Secretary (Economic Affairs) led the Indian delegation, while the delegation from European Union C. Economic Dialogues and Forums was led by Mr. Maarten Verwey, Director General, 12.13 During the year 2021-22, following dialogues/ Economic & Financial Affairs (ECFIN), European meetings were held in the virtual format due to COVID Commission. pandemic: D. UNDP and Sustainable Finance 12.13.1 India-UK Economic & Financial Dialogue 12.14 United Nations Development Programme 12.13.1.1 An agreement was signed between India and UK on Feb 05, 2005 establishing 'Indo-British Economic 12.14.1 UNDP is an agency of the United Nations & Financial Dialogue' at the Ministerial level to be held working in the areas of human development, systems on alternate basis between India and UK. India-UK and institutional strengthening, inclusive growth and Economic and Financial dialogue (EFD) is co-chaired by sustainable livelihoods, sustainable energy, environment Finance Minister of India and Chancellor of Exchequer, and resilience. UNDP is led by the Executive Board which UK. The first dialogue was held in 2007. So far 11 provides inter-governmental support to and supervision dialogues have been held and the 11th EFD was held in of UNDP activities. Currently, India is a member of the virtual format on 02.09.2021. Board where the Permanent Representative of India to the United Nations represents India. India's annual 12.13.1.2 During the recently held 11th India-UK EFD contribution to the UNDP has been to the extent of US$ concluded with adoption of Joint Statement by Indian 4.5 million. Besides this contribution, India pays the local Union Finance Minister and Chancellor of Exchequer of office expense to UNDP towards Government Local United Kingdom and release of the Joint Statement on Office Contributions. DEA is the point of interface between Climate Finance Leadership Initiative (CFLI) India UNDP and any other national or sub-national authorities Partnership. and agencies in India. DEA decides the amount of 12.13.2 India-Korea Working Group Meeting: voluntary contribution to UNDP and makes local office 12.13.2.1 India-Korea Working Group Meeting (WGM) contribution. All projects implemented by UNDP in India serves as a platform for discussing all the issues are cleared by DEA. pertaining to the financial package offered by Republic 12.15 Global Environment Facility of Korea and progress of candidate projects etc. The 8th and 9th India-Korea WGMs were held virtually on July 12.15.1 It was established on the eve of the 1992 Rio 22, 2021 and October 29, 2021 respectively under the Earth Summit to help tackle earth's most pressing co-chairmanship of Deputy Director General, DEA from environmental problems. GEF's Secretariat is based in Indian side and Director, Ministry of Economy and Finance Washington D.C. GEF provides grants for projects related from Korean side. to biodiversity, climate change, chemical waste, international waters and land degradation. The GEF 12.13.3 India-Australia Economic Policy Dialogue unites 184 countries in partnership with international 12.13.3.1 India-Australia Economic Policy Dialogue was institutions, civil society organizations (CSOs), and the established in the year 2008, set-up at level of Joint private sector to address global environmental issues 63Annual Report 2021-2022 while supporting national sustainable development crucial climate change management sector. The platform initiatives. is designed as a member driven informal and inclusive entity to facilitate flow of private finance from various 12.15.2 India is a founder member of GEF. The pension and public saving funds of EU into environmental Executive Director of India in the World Bank Group sustainable projects, exchange and disseminate represents the South Asian Constituency, which includes information for promotion of best practices among the other South Asian countries, Bangladesh, Bhutan, countries investing in climate change management, etc. Maldives, Nepal and Sri Lanka, in the Council of GEF. India in GEF is represented by DEA as Political Focal The Second Annual Report of IPSF was presented at Point (PFP) and by Ministry of Environment, Forest and the occasion of the IPSF Annual Event held on 4th Climate Change (MoEFCC) as Operational Focal Point November 2021. The Annual Report 2021 gives an (OFP). The PFP deals with the financing framework of overview of the work of the IPSF during the year, such as GEF as per which the funds are contributed by the the work on taxonomies and disclosures. member countries to the GEF kitty. The OFP coordinates 12.17 India-UK Sustainable Finance Forum all GEF-related activities within a country. The OFP reviews project ideas, checks against eligibility criteria 12.17.1 India and UK have agreed during 10th India-UK and ensures that new project ideas will not duplicate an Economic and Financial Dialogue to establish a bilateral existing project. Sustainable Finance Forum to drive forward deeper cooperation between the UK and India on sustainable 12.15.3 India is a donor as well as recipient member of finance. The Forum would draw members from finance GEF. Being the Political Focal Point for GEF, DEA decided ministries/treasury and other important stakeholders from voluntary contribution to GEF. India has contributed both sides. around USD 78 million to GEF since its inception in 1991. This includes committed voluntary contribution of USD 12.17.2 Two meetings of this Forum, in January 2021 15 million under the current replenishment cycle i.e., GEF- and July 2021, have been held. In the 11th India-UK 7 that runs from 2018-2022. Under GEF-7, India has Economic and Financial Dialogue on 2nd September received a total allocation of USD 85.62 million. 2021, the Climate Finance Leadership Initiative (CFLI) India was launched. CFLI India aims to work with financial 12.16 International Platform on Sustainable institutions, corporates, and existing sustainable finance Finance initiatives, to accelerate efforts to mobilize private capital 12.16.1 International Platform on Sustainable Finance into India. The partnership will be led by the CFLI, a group (IPSF) is an initiative taken by the European Commission of leading financial institutions responsible for $6.2 trillion in the year 2019 and was formally launched on 18th of assets, chaired by Michael Bloomberg, and supported October 2019 at the International Monetary Fund by the UK Government, Government of India, the Global Headquarters, Washington DC. India joined the IPSF as Infrastructure Facility and City of London. a founding member along with Argentina, Chile, China, E. Foreign Training Courses/Programmes Canada, Kenya, Morocco and the European Union. Later, Indonesia, Japan, New Zealand, Norway, Senegal, 12.18.1 Department of Economic Affairs is the nodal Singapore, Switzerland, Hong Kong Special point for administering short term foreign training courses Administrative Region of the People's Republic of China offered by some bilateral partner countries under bilateral (Hong Kong SAR of PRC), the United Kingdom and cooperation programme and some multilateral agencies. Malaysia also joined the IPSF. The IPSF includes, as These courses are intended for capacity building of the observers: the Coalition of Finance Ministers for Climate officers in various spheres/fields of activities including Action, the European Bank for Reconstruction and sectors such as Education, Health, Water Resources, Development, the European Investment Bank, the Disaster Management, Governance, Natural Resources International Organisation of Securities Commissions, the and Energy, Agriculture, Nature Conservation, Network for Greening the Financial System, the Environmental Management, etc. Nominations are invited Organisation for Economic Co-operation and from all Ministries /Departments, State Governments/ Development, European Development Finance Union Territories. The nominations are screened by a Institutions, the United Nations Environment Programme Selection Committee in DEA and thereafter - Finance Initiative, the International Monetary Fund, IFRS recommended to the sponsoring Government/Agency for Foundation, the United Nations development Programme, acceptance. During 2021-22 (upto November, 2021) DEA and the World bank Group. has processed trainings for 96 Short Term Foreign 12.16.2 IPSF would act as a place of exchange for best Training Programmes (less than four weeks) from practices on Sustainable Finance Initiatives. IPSF will Singapore Cooperation Programme Training Award enable India to participate in the process of global (SCPTA), Japan International Cooperation Agency (JICA) deliberations on the evolution of Sustainable Finance as and Malaysian Government as received and suitable a major line of financing for the future in India, in the applicants have been recommended for the purpose. 64Department of Economic Affairs I 13. Integrated Finance Division Services. This involves finalizing the Budget Estimates/ the Revised Estimates/estimating final 13.1 The Division is responsible for the following requirements/ surrender of savings, re- functions: appropriations and vetting of Head wise (i) Tendering financial advice & concurrence to Appropriation Accounts proposals involving expenditure in respect of DEA and DFS as well as their attached and subordinate (iv) Coordination, Compilation, Printing and laying of the offices e.g. Security Appellate Tribunal (SAT)/ 'Detailed Demand for Grants (DDG)' and 'Output Outcome Monitoring Framework(OOMF)' for National Savings Institute/G-20 Secretariat /Office Central Sector and Centrally Sponsored of Special Court, Mumbai/ Office of Custodian/ Debt Schemes costing less than `500.00 crore of the Recovery Tribunals, Pension Fund Regulatory and Ministry of Finance in Parliament. Development Authority and Office of Court Liquidator, Kolkata (v) Coordination of all matters relating to the examination of the DDG by the Parliamentary (ii) Exercising expenditure control and management, Standing Committee on Finance. ensuring rationalization of expenditure and compliance of economy measures in accordance (vi) Monitoring of pending PAC/C&AG Audit Paras. with the instructions of the Department of Expenditure including regular monitoring of (vii) Coordination, Compilation, Printing and Presentation expenditure through monthly/quarterly reviews of Statements to be made by Hon'ble Finance Minister and submission of reports to the concerned as required in terms of Rule 73-A, in Lok Sabha/Rajya Secretaries. Sabha in respect of implementation of Reports of the Standing Committee. (iii) The Division also administers two Detailed Demands for Grants i.e. Grant No.30-Department of Economic (viii) Budgetary position regarding the Grants Affairs and Grant No.32-Department of Financial administered by the Division is given below: 13.2 Budgetary allocation of the Grants (on net basis) ( ` in crore) Grant BE 2021-22 RE 2021-22 BE 2022-23 30- Department of Economic Affairs Revenue 4520.78 5090.52 6143.36 Capital 56607.40 10525.58 8396.90 Total 61128.18 15616.10 14540.26 32- Department of Financial Services Revenue 3710.77 3037.87 1102.70 Capital 25800.02 32034.00 4211.03 Total 29510.79 35071.87 5313.73 The best practices followed for effective expenditure (c) Strengthening of internal control mechanism by control includes: getting internal audits undertaken. (a) Expenditure progress reviewed quarterly with Major (d) Monthly monitoring of Major Schemes/Programmes Head/Scheme wise details with concerned of Department included in the Outcome Budget. Secretaries (e) Regular and close monitoring resulted in finalization (b) The Major Head wise and Scheme wise expenditure of substantial number of cases of Action Taken progress as compared to BE figures, posted on the Notes (ATNs) in respect of C&AG Audit Para during web-site of the Ministry of Finance. the year. 65Annual Report 2021-2022 PARAS OF AUDIT REPORTS OF C&AG - Details of ATNs Audit paras pending with different Departments and their disposal status - as on 18.01.2022 Name of the Ministry/Department : Ministry of Finance (Department of Economic Affairs) Sl. No & Year No. of Paras/PA Details of the Paras/PA reports on which ATNs are pending. No. of the reports on which No of ATN not No of ATNs Sent No of ATNs which Report ATNs have been sent by the but returned with the have been finally submitted to PAC Ministry even observations and vetted by audit but after vetting by Audit for the first time Audit is awaiting their have not been re-submission submitted by the by the Ministry. Ministry to PAC 1. 44 of 2017 ... ... 1 ... 2. 4 of 2020 11 ... 7 ... 3. 7 of 2021 ... 14 ... ... Summary of Important Audit Observations:-  In the case of non-debt capital receipts, the actuals were lower than RE by `14,696 crore under Report No. 7 of 2021-Union Government (Civil)-Accounts "Miscellaneous Capital Receipts", which primarily of the Union Government for the year 2019-20 consisted of proceeds from disinvestment and Tabled in the Parliament on: 29th November, 2021 monetization of National Highways. In the case of capital expenditure, leaving aside savings under head This Report of the Comptroller and Auditor General of for North East, the variation between actuals and RE India (CAG) on the accounts of the Union Government (`2,784 crore) was marginal, with RE having been analyses the Union Government Finance Accounts (UGFA and the Appropriation Accounts of Union Civil increased over BE by `17,000 crore. Ministries. The Report gives an overview on Union (Para 1.3) Government Finances for FY 20 and consists of  During FY 20, the Union Government mobilised total observations of the CAG on the UGFA and the Union Government Appropriation Accounts for FY 20. resources amounting to `1,21,07,987 crore. Gross revenue receipts consisting of tax revenue Chapter 1: Overview of Union Finances (`20,10,059 crore), non-tax revenue (`5,88,328  Estimates of revenue receipts were scaled down at crore) and external assistance (`373 crore) the Revised Estimates (RE) stage as compared to contributed 21 per cent of resources. Debt receipts Budget Estimates (BE) by `94,611 crore. However, (`73,01,387 crore) constituted 60 per cent of total actual revenue receipts were further lower than RE resource mobilization of the Government. by `2,05,344 crore. This was primarily due to actual collections being less than RE in case of 'Taxes on  Out of the total resources mobilised during the year, income other than Corporation Tax' (`66,652 crore), 83 per cent were deployed on committed expenditure, Corporation Tax (`53,624 crore), Central Goods and comprising repayment of debt (52 per cent), Services Tax (`19,929 crore), and Non-Tax revenue discharge of Public Account liabilities (17 per cent), (`57,349 crore). Estimates for revenue expenditure interest payments (five per cent) and assignment of were reduced at RE stage by `79,776 crore, but mandated portion of gross tax receipts to States (five actual revenue expenditure fell further short of RE per cent). From the balance, after accounting for by `38,445 crore. Heads under which actual revenue Grants-in-aid to States/UTs and closing cash balance expenditure was lower than REs by a significant (four per cent), the Union Government was left with amount included Indian Railways-Commercial Lines 17 per cent of its gross mobilisation to spend on its Working expenses (`28,639 crore), Interest Payments (`8,740 crore) and General Education own activities. (`4,764 crore). (Para 1.4) 66Department of Economic Affairs I  Total receipts grew by 7.23 per cent (`6,28,286 crore)  Non-debt capital receipts have declined in the last YoY in FY 20. Non-debt receipts increased by 4.42 two FYs. Receipts from disinvestment, which is a per cent (`85,381 crore) and debt receipts increased major part of such receipts, fell from `72,620 crore by 8.03 per cent (`5,42,905 crore). in FY 19 to `48,234 crore in FY 20. Disinvestment receipts in the year pertained to Tehri Hydro  Tax revenues increased marginally by `40,371 crore Development Corporation (`7,500 crore), National (three per cent) over FY 19, while Non-tax revenues Thermal Power Corporation (`6,165 crore), Oil and (NTR) grew by `1,01,940 crore (21 per cent) over Natural Gas Corporation (`5,719 crore), Coal India the previous year. In the case of NTR, receipts from Ltd. (`5,673 crore), North Eastern Electric Power dividends/ profits increased by `72,715 crore (64 per Corporation Limited (`4,000 crore), Power Grid cent), which was primarily due to higher receipt of Corporation of India Limited (`3,850 crore), surplus/dividend from Reserve Bank of India. Kamarajar Port Limited (`2,383 crore), IRCTC  Non-debt capital receipts declined compared to FY Limited (`1,114 crore), Security Printing and Minting 19 due to lower premium received, lower Specified Corporation India Limited (`821 crore), etc. Undertaking of UTI (SUUTI) receipts and non-receipt (Para 1.7) of "Proceeds from Monetisation of National  Of the total disbursements of `1,14,59,551 crore in Highways". FY 20, disbursements from CFI was 81.80 per cent  Revenue expenditure increased by `3,53,749 crore (repayment of public debt was 55.20 per cent and (15.64 per cent) in FY 20 over the previous year. total expenditure from CFI was 26.60 per cent) and Most of this increase was on account of higher the balance of 18.20 per cent was from Public expenditure on "Grants-in-Aid and Contributions" Account. Of CFI disbursements, the shares of and "Social Services". On the other hand, the repayment of Public Debt and Loans and Advances expenditure on capital account decreased by were both on a declining trend while the share of `11,779 crore (2.95 per cent) mainly due to reduction Revenue Expenditure was on the rise in last three in expenditure on recapitalization of Public Sector years. Banks.  The sectoral share of expenditure has remained (Para 1.5) steady in the last five years. However, the highest  On the assets side, during the last two years, 34 YoY growth was seen in the case of Social Sector per cent of the cumulative Capital expenditure expenditure. The expenditure on Economic Sector consisted of investments of the Union Government witnessed an increase of `43,131 crore in FY 20 over in Government Companies, Statutory Corporations FY 19. This was mainly due to increase in expenditure and Other Joint Stock Companies. The balance 66 on 'Crop Husbandry' (primarily under PM Kisan per cent constituted cumulative expenditure for Samman Nidhi) and 'Food, Storage and creation of infrastructure for transport sector, health, Warehousing' (Food Subsidy). education, public works, etc. On the liabilities side,  Compared to FY 19, the expenditure on various internal debt constituted around 87 per cent of total explicit subsidies increased substantially in FY 20 with liabilities in FY 20 with internal debt increasing from `70,74,941 crore in FY 19 to `80,20,490 crore in total expenditure on subsidy rising by 16.59 per cent. FY 20. Expenditure on food subsidy was, however, (Para 1.6) significantly understated due to funding through loan from National Small Savings Fund.  Gross receipts showed an increasing trend during (Para 1.8) FY 16 to FY 20, but FY 20 showed the lowest growth of one per cent. Gross tax revenues showed a  As on 31 March 2020, the total outstanding Public decreasing trend during FYs 17-19, with growth Account liabilities were reported to be `8,79,325 becoming negative in FY 20. Non-tax revenue crore, which included `5,74,881 crore of Small showed a fluctuating trend during FYs 16-20, with Savings and Provident Fund and `3,04,444 crore FY 20 seeing a substantial jump primarily on account on account of other obligations. This, however, did of increase under share of surplus profits from the not include liabilities of `9,99,409 crore Reserve Bank of India (`79,988 crore). corresponding to investment of NSSF in Special 67Annual Report 2021-2022 State Government Securities (`4,40,438 crore) and Issues relating to accuracy of accounts Government Undertakings (`3,66,546 crore),  Suspense heads relating to Civil Ministries, Postal, investment of `82,963 crore relating to Post Office Insurance Fund, and accumulated deficit (`1,09,462 Telecom, Defence and Railways only showed net crore) in NSSF. balances under suspense heads and thus, did not (Para 1.9) disclose the real magnitude of separate credit and debit balances under these heads. This led to  Total debt of the Union Government grew from significant understatement of suspense balances in `66,51,365 crore as on 31 March 2018 to `73,44,902 the UGFA both at Major and Minor Head levels. crore as on 31 March 2019 and further grew to Resultantly, the balances were misrepresented by 8.3 `83,19,740 crore as on 31 March 2020. Public Debt, per cent under PAO Suspense, 70.2 per cent under however, remained within the band of 39-41 per cent Suspense Account (Civil) and 35.5 per cent under of GDP in last three years. Market loans due for PSB Suspense. redemption within seven years amounted to (Para 2.3 .1.1) `23,54,267 crore (around 37 per cent of market loans). (Para 1.10)  In FY 18 there was a balance of `1,76,688 crore left  Actual Revenue Deficit exceeded the BE stage and in the IGST at the end of the year. Of this, GoI had RE stage by 37.43 per cent and 33.36 per cent provisionally devolved `67,998 crore under IGST to respectively, which was attributed primarily to lower the States/UTs adopting Finance Commission tax receipts (`1,47,995 crore at RE stage) with formula for devolution of Central Taxes. The issue of expenditure not being commensurately unapportioned IGST balance was commented upon compressed. Similarly, actual Fiscal Deficit (FD) as in CAG's Report No. 2 of 2019 and further discussed compared to BE stage and RE stage was higher by in detail in CAG's Report No. 11 of 2019. `2,43,970 crore and `1,69,001 crore, respectively, Subsequently, in May 2020, the Government decided which was on account of lower than estimated to apportion the balance IGST of `1,76,688 crore miscellaneous capital receipts. Further, out of the between Centre and the States on 50:50 basis and FD of `10,31,126 crore, `6,67,237 crore was on reverse the IGST devolved in FY 18, citing CAG's revenue account in FY 20, with an YoY increase of observations on the issue. 6.66 per cent. (Para 1.3 and Para 1.10.1)  To partially adjust the balance IGST, sanction was accorded for expenditure amounting to `33,412 Chapter-2: Observations on Finance Accounts crore in June 2020 towards transfer to GST Issues of transparency and disclosures Compensation Fund. Audit observed that the adjustment involving expenditure of `33,412 crore  There was persistent use of Minor Head 800 by was approved only in FY 21 but incorporated in the Ministries/ Departments of Government of India (GoI). accounts of FY 20 after the closure of accounts for During FY 20, expenditure totalling `39,838 crore was the year through a Journal Entry, which violated laid booked under 'Minor Head 800-Other Expenditure' down procedures. It was also noticed that the under various Major Heads. Further, receipts of `16,892 crore were also booked under Minor Head adjustment was made only with reference to the net 800-Other Receipts during FY 20. impact of the transactions without any disclosures (Para 2.2 .1) of implications in gross terms for various heads of accounts covered by these transactions either in the  A total of 254 footnotes had been inserted in 16 Journal Entry or in the relevant Statements of UGFA. statements of the UGFA for disclosing additional Further, the amounts computed as paid in excess information with respect to figures for transactions. to States/UTs for FY 18 were adjusted against dues These footnotes, though related to significant of IGST pertaining to that year, instead of transactions, were brief and cryptic and in some compensation payable in FY 21 or later as provided cases were being repeated year after year without in the GST Compensation Act 2017. resolution. (Para 2.2.2 .4) (Para 2.3.3) 68Department of Economic Affairs I  In FY 20, against collection of cess of `95,553 crore, However, these receipts should have been booked transfers to the GST Compensation Fund amounted as Non-Tax Revenue. to `1,53,910 crore, i.e. `58,357 crore was (Para 2.4 .7) transferred in excess of collections. However, this Issues relating to accounting of Cess/Levies excess included an amount of `33,412 crore transferred by way of a Journal Entry in June 2020  Parliament had approved the transfer of Universal (after close of FY 20). Therefore, as on 31 March Access Levy (UAL) amounting to `8,350 crore to the 2020, `24,945 crore was transferred in excess of Universal Service Obligation (USO) Fund in the BE actual collections from CFI during FY 20 as against of FY 20. Against the total collection of UAL amounting short transfer by 31 March 2019 amounting to to `7,961.53 crore in FY 20, only `2,926 crore was `47,272 crore. Thus, transfer of Compensation Cess transferred to the USO Fund, resulting in short collected in past years of `22,327 crore to GST transfer to the USO Fund by `5,035.53 crore. Compensation Fund was yet to be done as on 31 (Para 2.6.1) March 2020.  As per Statement 8 of UGFA for the period FY 10 to (Para 2.3 .4) FY 20, the total cess on crude oil collected was  An amount of `3,108 crore was written off during FY `1,28,461 crore. Statement 9 of UGFA for the above- 20 on account of variation in exchange rate of mentioned years showed that no funds out of the net External Debt. However, the same amount was proceeds of cess were transferred to Oil Industry depicted as Receipts of External debt during the year, Development Board. Further, only `15,506 crore had which was contrary to the provision under been spent in last five years on activities pertaining Government Accounting Rules. to development of oil industry by the Ministry as (Para 2.3 .7) against collections of `72,384 crore by way of cess during this period. Issues of Data Integrity and Completeness (Para 2.6.3)  Accounting Authorities of three Ministries/  Though the new Health and Education Cess was Departments (Chemicals and Fertilizers, levied at a composite rate of four per cent, BE and Pharmaceuticals, Industry and Civil Aviation) failed RE for FY 20 continued to provide for transfer of to realize `2,027 crore towards guarantee fees during proceeds of this cess to the erstwhile Prarambhik FY 20. Shiksha Kosh, and Madhyamik and Uchchatar (Para 2.4 .1) Shiksha Kosh that were created for Primary Education Cess, and Secondary and Higher  Statement 11 of UGFA contained incomplete Education Cess, respectively. Further, no expenditure information in respect of nature, investment, face was envisaged for the health sector out of the cess value, number of shares, capital and percentage of nor was any dedicated fund created for the purpose. the Union Government's investment in 45 entities, (Para 2.6.4) while in 22 entities percentage of equity share did not change from the previous year despite having  Statements 8 and 13 of the UGFA and information investment/ disinvestment in FY 20. Further, in in budget statements revealed that Statement 13 respect of three entities, there was mismatch in the continued to depict the Fund as Central Road Fund disinvestment details furnished by Ministry of Finance instead of Central Road and Infrastructure Fund (MoF) and as depicted in Statement 11. (CRIF). Further, against total collection of cess of (Para 2.4 .3 and 2.4.4) `1,22,440 crore under the CRIF Act, Parliament approved `1,22,369 crore for appropriation.  Specified Undertaking of UTI (SUUTI) disposed of a However, actual transfer to the Fund was `90,252 part of shares held by it and transferred proceeds crore only. Part of the short transfer was due to from the sale as well as income from investments to erroneous transfers of `17,250 crore and `4,380 the Union Government during FY 20. The receipts crore to the Railway Safety Fund by Ministry of amounting to `2,069.86 crore were accounted in Railways and to 'Other Funds' by Ministry of Power, UGFA as 'other receipts' (minor head 800) under respectively. major head 4000 'miscellaneous capital receipts'. (Para 2.6.5) 69Annual Report 2021-2022 Issues relating to Reconciliation and Improper  During FY 20, the total savings under all the grants Accounting and appropriations were `4,10,158.38 crore and constituted 3.97 per cent of total authorisations.  Ministry of Road Transport & Highways transferred Savings of `100 crore or more occurred in 74 an amount of `5,000 crore to the Monetization of segments of 61 Grants/Appropriations and amounted National Highways Fund in the public account to `4,07,358.03 crore. Further, out of the 13 Grants/ through capital head 5054.80.797 instead of the Appropriations with savings of `5,000 crore or more approved revenue head 3054.80.797. Further, the in FY 20, six had such substantial savings in FY 19 expenditure of `5,000 crore incurred from the fund and FY 18 as well was booked under the head 5054.01.190- (Para 3.2.2) Investment in Public Sector & other Undertakings  Significant savings totaling to `1,65,250 crore were instead of the approved head 5054.01.337. Though on account of regulation of expenditure comprising there were no receipts on account of monetisation inter alia reduction of food subsidy to Food of National Highways in FY 20, funds were Corporation of India of `76,000 crore at RE stage, transferred through Gross Budgetary Support `50,000 crore due to non-release of Ways and instead of from proceeds from monetisation. These Means Advance to FCI, short transfer of `27,473.27 funds were used for making capital expenditure in crore to National Investment Fund/ Central Road the form of investment in National Highways and Infrastructure Fund, etc. In addition, savings of Authority of India instead of as Road Works. `94,289 crore represented gaps and shortfalls in (Para 2.7.1) performance in schemes and activities, while savings of `58,097 crore were attributable to  In FY 20, an amount of `1,882.40 crore towards unrealistic budget estimation. Further, there were receipts from sale of enemy properties was booked savings of `21,300 crore due to non-transfer of under head of account 4000.04.190.22.01.00- funds to Reserve Funds. Custodian Property of India instead of the newly (Para 3.2.2.3) opened head of account 4000.05.101- Sale of  In 25 sub-heads under 14 Grants/Appropriations, Financial Assets. (Para 2.7.3) supplementary provisions amounting to `2,168.90 crore were obtained during FY 20 in anticipation of Chapter 3: Observations on Appropriation Accounts higher expenditure, but final expenditure was even  During FY 20, there was excess disbursement of less than the original provisions. `32,637.79 crore over authorization involving two (Para 3.3) Grants of Ministry of Defence and one Grant pertaining to Department of Revenue (DoR). In case  Scrutiny of Grants/Appropriations having surrenders/ of the excess relating to DoR, the excess amounted lapsed amounts of `100 crore or more revealed that to `31,934.48 crore and was reported to be due to at least `1,70,103.02 crore relating to 33 Grants/ transfer of more funds to GST Compensation Fund Appropriations was either surrendered on 31 March in order to apportion balance IGST pertaining to FY 2020 or was allowed to lapse. 18. Audit examination revealed that the excess (Para 3.6) expenditure could have been avoided as the  Under PSB Suspense head, there were accumulated Government could have taken timely action to balances of `9,745.49 crore pertaining to Civil address the matter of short transfer of IGST. This Pension expenditure and `17,045.71 crore pertaining matter had been reported in the Reports of the CAG, to Defence Pension expenditure. This was due to which were available with the Government since non-clearance of pension scrolls in the accounts of February/ July 2019, giving sufficient scope to have relevant financial year, resulting in understatement made required provision in the Supplementary of expenditure and postponement of liability to Demand for Grant for FY 20. subsequent year(s). (Para 3.2.1) (Para 3.9.1) 70Department of Economic Affairs I 14. Coin and Currency Division Department. The Section deals with issues of this company relating to appointment to Board Level posts, 14.1 Coin and Currency Division is responsible for MoU, residual establishment matters of its nine Units, policy related to all aspects of the currency and coinage of and coordination of meetings of SPMCIL Board, SPMCIL India. The works of the Division is carried out in close Pension Fund Trust etc. coordination with Reserve Bank of India (RBI), Security 14.5 Major achievements of the Division are given Printing and Minting Corporation of India Limited (SPMCIL), below: Bhartiya Reserve Bank Note Mudran Private Limited (BRBNMPL) and Bank Note Paper Mill India Private 14.5.1 In order to stay ahead of the counterfeiting, Limited (BNPMIPL). The Division has three Sections viz. Government of India, in consultation with RBI, has initiated Currency, Coin and SPMC Section. Responsibilities among the process for introduction of new security features in these Sections are divided as follows: Indian banknotes. The Government has approved the recommendations of RBl's Central Board on revised 14.2 Currency Section deals with all policy matters matrix of security features in bank notes in terms of the relating to design, form and material of currency notes/ provisions of section 25 of the RBI Act, 1934. RBI has banknotes including security features, and operational issues relating to production, planning of printing of bank initiated process for introduction of this revised matrix of notes, Currency related legislation, indigenization of bank security features. This revised matrix of new security note materials, expansion, up-gradation and modernization features is expected to protect against counterfeiting of of Presses, Paper Mills, Ink factory, etc., administration of the currency notes. SBN (Cessation of Liabilities) Act, 2017 and Rules made 14.5.2 Given the immense potential of Distributed thereunder, and policy issues on crypto assets including Ledger Technology (DLT), the Division has been legislation and Central Bank Digital Currency. examining how best to mitigate risks posed by 14.3 Coin Section deals with policy matters relating cryptocurrencies to financial integrity and macroeconomic to design, shape and size of circulation coins, fixation of stability while still facilitating DLT based innovation. fair selling price of coins, coins related legislations and 14.5.3 The production of banknotes by BRBNMPL and issuance of Commemorative Coins, security products viz. SPMCIL is monitored by this Division. The meetings of passport, postal stamps, Non-Judicial Stamp Paper, Strategic Planning Group and Production Planning production planning of coins and determination of indent Committee are also held regularly to review the indent of coins, expansion, diversification and modernization of and production of banknotes and coins & their Mints and Security Presses. uninterrupted supply to public. The cumulative production 14.4 SPMC Section deals with matters related to of notes by the currency presses during 2020-21 up to SPMCIL, which is under administrative control of the 06.12.2021 is given below: Press Total Indent allocated Cumulative production Production left for 2021-22 (in mpcs) 01.04.2021 to 06.12.2021 for 2021-22 BRBNMPL 13,350 9,459.25 3,890.75 SPMCIL 8,900 4,488.82* 4,412.19 Face Value (Cr) BRBNMPL 4,29,750 2,80,858.25 1,48,891.75 SPMCIL 2,86,500 1,53,169 1,33,332 14.5.4 The trends in the Note In Circulation (NIC) are to higher denomination. The theme of new series coins monitored. The Notes In Circulation (NIC) as on is 'Agriculture', represented with crop grains on the November 4, 2016 were `17,74,187 Cr. which have now reverse side of the coins. RBI has commenced increased to `29,61,044 Cr. as on November 19, 2021. distribution of new design coins among public. 14.5.5 New Series of Coins which are friendly to visually 14.5.6 Furthermore, this Department vide Gazette impaired people: This Department vide Gazette notification dated 08th November, 2021 has notified a notification dated 6th March 2019, has notified new series special series of circulatory coins of One Rupee, Two coins of One Rupee, Two Rupees, Five Rupees, Ten Rupees, Five Rupees, Ten Rupees and Twenty Rupees Rupees and Twenty Rupees easily identifiable to the to celebrate 75th years of India's Independence under visually impaired. Hon'ble Prime Minister on 7th March the Azadi Ka Amrit Mahotsav (AKAM) celebrations. These 2019 released the new series coins. The new features coins are part of the action plan of Department under incorporated in the new series of coins include pattern of AKAM. This special Series of coin will retain other existing increasing size (i.e. diameter) from lower to higher features, including all the visually-impaired friendly denominations and weight in increasing order from lower features of the New Series of Coins, 2019. 71Annual Report 2021-2022 14.5.7 The trends in Coins In Circulation (CnIC) are also The Company has one Security Paper Mill (SPM) at strictly monitored. As on 31.10.2021, the CnIC of Hoshangabad which manufactures Security Paper for use `26698.06 crore. CnIC has risen to `658.15 crore as by Currency / Security Presses. The Company also has compared to CnIC as on 11.02.2021. an Ink Factory at Dewas which manufactures Offset Ink, UV Ink and Quickset Intaglio Ink for use by the presses 14.5.8 As per the Coinage Act, 2011, commemorative of SPMCIL. coin means any coin stamped by the Government or any other authority empowered by the Government in this 14.6.3 SPMCIL is committed to aid the nation by behalf to commemorate any specific occasion or event manufacturing world class and highly secured banknotes, and expressed in Indian currency. Accordingly, the coins and security documents. SPMCIL, in its various Government issues commemorative coins on eminent forms, has almost 100 years of security printing experience persons/ personalities/ institutions/ events/ programmes/ and over two centuries of experience in minting. history, etc. that have a national or international nature 14.6.4 The Company had produced 8288 million pieces and which have made a lasting contribution or impact. of the Bank Notes and supplied 8764 million pieces of The contribution made by the individual/ organisation/ Bank Notes to Reserve Bank of India (RBI) during the programme/ event should have transcended the barriers year 2020-21. This is 15.64% lower than the production of partisan politics, region, community, language or of 9824 million pieces of the Bank Notes during the last religion. However, on an occasion to express sympathy/ year. The Company had produced 2757 million pieces of grief/ exhibit respect for the sacrifice, Commiserative the Circulating Coins and supplied 2963 million pieces of Coins' would be issued. The Guidelines in this regard the Circulating Coins to RBI during the year 2020-21. has been issued on 29.09.2020. This is 16% lower than the production of Circulating Coins 14.5.9 During 2021-22 (Upto 30.1.2022), the achieved during the last year 2019-20. Over last 5 years, Government issued Gazette Notifications for release of on an average, SPMCIL manufactured approximately 4 Commemorative Coins viz. to mark the occasion of 1,50,000 commemorative coins and medallions (per 400th Birth Anniversary of Guru Shri Tegh Bahadur Ji, to annum) for fulfilling domestic demand. The Company celebrate the occasion of 125th Birth anniversary of Srila had produced 6870 Metric Ton (MT) of Security Paper A.C. Bhaktivedanta Swami Prabhupadji, Harcourt Butler and supplied 6742 MT of Security Paper to the printing Technical University Kanpur centenary celebrations, and presses during the year 2020-21. This is 2% lower than 150th Birth anniversary of Kavi Muddana. the production of Security Paper during the last year 2019- 14.6 Security Printing and Minting Corporation of 20. The Company had produced 600.42 Metric Ton (MT) India Limited (SPMCIL) of Security Inks in the year 2020-21 at Ink Factory, Dewas and supplied 595.97 Metric Ton Inks to printing presses 14.6.1 SPMCIL, a Miniratna Category-I, Schedule-'A' during the year 2020-21. This is 29.44% lower than the Central Public Sector Enterprise, was incorporated on production of Security Inks during the last year 2019-20. 13th January 2006 to manage four India Government The Company had produced 6.15 mpcs of travel Mints, two Currency Presses, two Security Presses and documents/passport booklets in the year 2020-21 and one Security Paper Mill, which were earlier being supplied 5.97 mpcs travel documents/passport booklets managed by the Government of India (Department of to MEA during the year 2020-21. This is 58.22% lower Economic Affairs, Ministry of Finance) directly. SPMCIL than the production of travel documents/passport booklets is wholly owned by the Central Government with during the year 2019-20. The company had also produced Authorized Share Capital of `2500 crores and paid-up Share Capital of `987.50 crores as on 31.03.2021. 241.29 mpcs of Non-Judicial Stamp Papers (NJSPs) in the year 2020-21 and supplied 244.47 mpcs NJSPs to 14.6.2 Bank Note Press (BNP), Dewas and Currency various State Governments during the year 2020-21. This Note Press (CNP), Nashik supplies currency notes to is 29.32% lower than the production of 341.36 mpcs of Reserve Bank of India. The Ministry of External Affairs NJSPs during the year 2019-20. and Ministry of Home Affairs are customers for passports and visa stickers respectively and the State Governments 14.6.5 The Revenue from Operations of the Company for Non-Judicial Stamp Papers and allied stamps and the has decreased to `4712.57 crores in 2020-21 from Postal Department for postal stationery, stamps, etc. `5099.71 crores (regrouped) in the previous year 2019- which are supplied by Security Printing Press (SPP), 20. The decrease in revenue is due to lesser production Hyderabad and India Security Press (ISP), Nashik. These consequent to reduction in indent of products by the Security Presses also produce various security items like customers and lockdown due to COVID-19 pandemic. cheques, railway warrants, income tax return order forms, Total expenditure for the year 2020-21 is `4094.00 crores saving instruments, commemorative stamps, excise as compared to `4133.38 crores (regrouped) for the year adhesive labels, certificates etc. for various customers. 2019-20. Profit before Tax (PBT) from continuing The four India Government Mints (IGMs) of the Company operations for the year 2020-21 is `789.74 crores as at Mumbai, Kolkata, Hyderabad and Noida supplies compared to `1176.69 crores (regrouped) for the year circulating coins to this Department for circulation by RBI. 2019-20. The Company had achieved a Total 72Department of Economic Affairs I Comprehensive Income (TCI) of `395.99 crores in the printing 16 billion note pieces per year in two shift year 2020-21 as compared to `745.07 crores (regrouped) operations. BNPMIPL and the Ink Manufacturing Unit of in the year 2019-20. The consolidated TCI after taking BRBNMPL at Mysuru have brought Indian Currency into account the 50% share of Joint Venture Company, Printing Industry to self-reliance. Presently, requirement BNPMIPL is `523.78 crores in the year 2020-21 as of both Paper and Ink are met with domestic supply. compared to the Consolidated TCI of `875.64 crores 14.7.2 Colour Shift Intaglio Ink (CSII), one of the security (regrouped) in the year 2019-20. features used in the Indian bank notes and imported 14.6.6 The Company had paid the Final Dividend of earlier, is now being manufactured at in-house Ink `215.48 crores for the year 2019-20 and for the year 2020- Manufacturing Unit from February 2019. BRBNMPL is 21, the amount of Final Dividend `240.41 crores was paid supplying entire requirement of CSII to both BRBNMPL to Government of India. and SPMCIL presses. 14.6.7 The Company had taken-up many modernization 14.8 Bank Note Paper Mill India Private Limited and capacity augmentation initiatives. The replacement (BNPMIPL): of one complete Printing Line comprising of Offset, 14.8.1 BNPMIPL was incorporated as a 50:50 Joint Intaglio, Numbering & Finishing machines has been Venture Company at Mysuru between SPMCIL and completed at CNP, Nashik. CNP, Nashik has also done BRBNMPL in the year 2010 to manufacture banknote installation of Online Print Quality Inspection System for paper (CWBN paper) indigenously. By commissioning two 03 Super Orl of Intaglio Machines. Further, the installation lines of paper machines, the Paper Mill has total installed of one additional Intaglio Machine and replacement of capacity of 12000 MT per annum. One Numbering Machine are in process at CNP, Nashik. 14.8.2 During the year 2020-21, BNPMIPL has The installation, Commissioning, FAT and Training of one produced 14808 MT CWBN paper (123% of installed Bank Note Processing Machine was completed at BNP, capacity) and supplied 14315 MT CWBN paper to all Dewas resulting into enhancement of installed finishing currency presses to meet their complete requirement. capacity by nearly 1200 mpcs. Further, the Installation, The Company is ISO 9001:2015, ISO 14001:2015 and Commissioning, Testing & FAT of one Intaglio machine ISO 45001:2018, certified. The Company has also was completed at BNP, Dewas resulting into increase in implemented the ERP system. installed Intaglio printing capacity by around 1200 mpcs. 14.8.3 BNPMIPL has been taking various initiatives to 14.6.8 A state-of-the-art Corporate R&D Centre has inculcate a culture of continuous improvement in its been setup at CNP, Nashik to carry out research and processes by adopting latest technology to reduce cost development activities on currency, passport and security of manufacturing. Some of the important measures like; documents etc. at par with international standards. The Power purchase from Indian Energy Exchange (IEX), R&D centre at ISP, Nashik is equipped with Digital Tear Reducing and optimising power demand, Installation of Resistance Tester, Cobb Tester, Digital Tensile Strength Variable Frequency Drives (VFD's), Upgrading water Tester, Digital Roughness/Porosity Tester, Digital Folding softener system, improving washing and flushing system Endurance Tester, Brightness/ Opacity & Colour Tester, of process lines, developing special machine parts Crumpling Instrument and Digital Bursting Strength indigenously, recycling of process water and achieving Tester. A full-fledged R&D Centre for Paper, Pulp etc. 'ZERO effluent discharge' etc., have contributed towards has been established at SPM, Hoshangabad. Latest reduction of manufacturing cost. Due to efforts testing equipment and machinery have been installed in undertaken towards environmental protection BNPM has the said R&D Centre. been able to recover, recycle and reuse rain water/ seepage water in the campus during the year 2020-21. 14.6.9 SPMCIL has taken-up many CSR projects in the The company has also initiated steps towards Research areas of education, healthcare, infrastructure, rural and Development with the support of ICAR-CIRCOT, development, skill development, etc. in the year 2021. Mumbai, SITRA, Coimbatore and CPPRI, Saharanpur Under the Gram Uday Scheme, BNP, Dewas had adopted to improve its processes. During the year the Company Kawaria village and SPM, Hoshangabad had adopted has received two safety awards from Department of Chatua village for implementing projects under CSR. As factories, Boilers, Industrial Safety & Health for Best per the instructions of Department of Public Enterprises package Boiler and Best Safe Industry (Large scale (DPE) for giving preference to aspirational districts, industry category). SPMCIL had adopted Barwani District of Madhya Pradesh as the aspirational District. 14.8.4 As part of Corporate Social Responsibility, BNPMIPL has been contributing in the areas of rural 14.7 Bhartiya Reserve Bank Note Mudran Private education, women empowerment, rural health, skill Limited (BRBNMPL): development, supporting homeless aged people, 14.7.1 BRNMMPL is a wholly owned subsidiary of eliminating malnutrition, art and culture, environment Reserve Bank of India, which runs two banknote printing protection, physically challenged, Wild life conservation, presses in Mysuru and Salboni with a total capacity of Disaster relief, etc. 73Annual Report 2021-2022 15. Other Multilateral Institutions (OMI) empowerment, natural resources' management and rural Division finance sector with the commitment of US$ 1100 million (approx.). Out of these, 25 projects have already been 15.1 International Fund for Agricultural closed. Presently, 7 projects with a total assistance of Development (IFAD) US$ 317.25/- million are under implementation and 1 15.1.1 International Fund for Agricultural Development project with assistance of US$ 104.85 million is at pipeline (IFAD) was set up in 1977 as the 13th specialized agency stage. In FY 2021-22, 1 project for assistance of USD of the United Nations. At present, IFAD has 177 members 104.85 million has been posed to IFAD and 1 project with Countries. assistance of USD 38 million has been signed with IFAD. List A- comprising the developed countries 15.1.6 IFAD' Loans Interest rate:- List B- comprising the oil-producing countries 15.1.6.1 Since 1st January, 2018, India is eligible for List C- comprising the developing countries loans under ordinary terms. IFAD loans granted on List C is further subdivided into the following sub ordinary terms shall have a rate of interest per annum lists: equivalent to one hundred percent (100 %) of the variable C-I comprising Africa reference rate, as determined semi-annually by the C-II comprising Europe, Asia and the Pacific Executive Board of IFAD, and a maturity period of 15 to C-III comprising Latin America and the Caribbean 18 years, including a grace period of 3 years, starting once the specified disbursement conditions have been met. India is a founder member of IFAD and a key contributor among the member Countries. 15.1.6.2 From 2013 to 2017, IFAD provided loans to India at a fixed interest rate of 1.25 percent plus a service 15.1.2 Composition of IFAD:- charge of 0.75 percent per annum, and with a maturity 15.1.2.1 IFAD is headed by a President elected for a period of 25 years including a grace period of 5 years. four-year term and is managed through two main However, the projects which were signed up to 2013, IFAD governing bodies viz. the Governing Council and the loans are repayable over a period of 40 years including a Executive Board. India is represented on the Governing grace period of ten years and carry no interest charges. Council by Secretary (EA) as Governor and Additional A service charge at the rate of three-fourths of one percent Secretary (MBC) as Alternate Governor. Joint Secretary (0.75%) per annum is levied on loan amounts outstanding. (OMI) is the Director on the IFAD Executive Board. 15.2 Asian Infrastructure Investment Bank (AIIB) 15.1.3 IFAD Governing Bodies meetings in 2021-22:- 15.2.1 The Asian Infrastructure Investment Bank (AIIB) 15.1.3.1 The 132nd, 133rd and 134th Sessions of the is a Multilateral Development Bank (MDB). IFAD Executive Board were held in April, September and Headquartered in Beijing, it began operations in January December 2021 respectively. India was represented in 2016 as a USD100 billion MDB, to finance infrastructure these sessions by JS (OMI) who is the Director from India for the development of Asia, from the Pacific to the in the IFAD Executive Board. The 25th Governing Council Mediterranean. Article 59 of the AOA provides for the meeting of IFAD was held on 16th February, 2022 in which Articles to enter into force when at least ten countries AS (MBC) represented GoI who is the Alternate Governor with subscriptions totaling at least 50 percent of AIIB's from India in the IFAD GC. total capital allocation have completed these procedures. 15.1.4 India's contribution to IFAD:- The Bank commenced its operation on 16.01.2016 with 15.1.4.1 IFAD funds are derived from member the inaugural meeting of its Board of Governors. This contributions (made in replenishment cycles), investment was followed by the first meeting of its Board of Directors incomes and special funds. India has so far pledged US$ on 17.01.2016. 258 million and contributed US$ 211 million to IFAD's Resources. In the 12th Replenishment cycle (IFAD12), 15.2.2 The bank was established with 57 founders India has pledged an amount of US$ 47 million as a core (mostly countries from Asia and Europe) initially and has contribution. Apart from this, India has also pledged an grown to 105 approved members worldwide in 2022. amount of US$ 20 million as Concessional Partner Loan 15.2.3 Membership (CPL) to IFAD. 15.2.3.1 The Bank has 105 members, including 89 15.1.5 IFAD projects in India:- members (of these 46 are Regional members and 43 15.1.5.1 India has received funding from IFAD for projects Non-regional) and 16 prospective members (of these 4 in rural development, tribal development, women's are Regional members and 12 Non-regional). Prospective empowerment and micro-finance. Since 1979, IFAD has members are those whose applications for membership assisted in 32 projects in the agriculture, rural have been approved by Governors but have not been development, tribal development, women's completed the requirements for membership yet. 74Department of Economic Affairs I 15.2.4 Shareholding 15.2.8 AIIB's projects and loans in India 15.2.4.1 The Authorized Capital Stock of the bank is 15.2.8.1 As of 8th March, 2022, India was AIIB's top USD100 billion, divided into 1 million shares of client in terms of the approved financing amount at USD USD100,000 each. Twenty percent are paid-in shares 8.13 billion. India accounts for the Bank's largest net (USD20 billion as paid-in capital made in five annual commitment at 24.17 percent. So far 33 Projects (23 installments), and 80 percent are callable shares. Sovereign, 10 Non-Sovereign) have been approved by AIIB 15.2.4.2 Currently, 96.76 percent of total capital stock of AIIB is subscribed of which India has subscribed shares 15.2.9 COVID Crisis Recovery Facility (CRF) and 83673 (8.63%) of the total shares. AIIB's voting structure India's share is tied to shareholding. Currently, India has a total voting 15.2.9.1 The Asian Infrastructure Investment Bank (AIIB) power of 7.59%. has created a Crisis Recovery Facility to support AIIB's members and clients in alleviating and mitigating 15.2.5 Financing Operations economic, financial and public health pressures arising 15.2.5.1 The Bank provides the following Financing from COVID-19. Since launch of the Facility and as of Products: October 22, 2021, 4 projects totaling USD 2.25 billion  Sovereign-Backed Financing have been approved for India under for Facility financing.  Non-sovereign-Backed Financing 15.3 New Development Bank (NDB)  Equity Investment 15.3.1 The proposal to establish a BRICS (Brazil, Russia, India, China and South Africa) Development Bank  Preparation Advances for Sovereign-Backed was first mooted by India during the 4th BRICS Summit Financing held in New Delhi in March 2012 and was reflected during 15.2.6 AIIB's Institutional Developments the Durban Summit in 2012, under the Leaders' 15.2.6.1 Some of the institutional developments of the declaration. The Union Cabinet on July 9, 2014 approved Bank include: the proposal of the Department of Economic Affairs for signing the Inter-Governmental Agreement on the New  Permanent Observer Status in UNGA: AIIB has Development Bank ('NDB' or 'Bank') and the Articles of been granted Observer Status in the UN General Agreement during the Sixth BRICS Summit. The Inter- Assembly on December 20, 2018. Granting of Governmental Agreement on the New Development Bank Observer status has put the Bank on a par with and the Articles of Agreement (AoA) were signed by the more than ninety other organizations which enjoy authorized signatories of the Governments of Brazil, Observer status; Russia, India, China and South Africa in the presence of  AAA credit rating: The Bank has maintained the Leaders during the 6thBRICS Summit in Fortaleza, Brazil 'AAA' credit rating over the last three years from on July 15, 2014. Upon the ratification of the Inter- all the premier credit rating agencies including Government Agreement by all BRICS countries including Standards and Poor, Moody's and Fitch Ratings India, the New Development Bank came into existence  Membership: The Bank's membership in July 2015. The agreed Minutes of the Ministers meeting increased to 105 members in 2022. of Fortaleza stated that the order of rotation of Presidents of the Bank will be India, Brazil, Russia, South Africa and 15.2.7 India's Position China. Mr. Marcos Prado Troyjo from Brazil is currently 15.2.7.1 India along with 20 other countries signed the serving as the second President of the Bank after Mr. Inter-Governmental Memorandum of Understanding K.V. Kamath. He took over the charge from July 7, 2020. (MOU) for establishing the AIIB on 24.10.2014 in Beijing. The President of India signed the Instrument of 15.3.2 Governance and Management Structure Ratification on 18.12.2015 and the said instrument was 15.3.2.1 The Bank has a Board of Governors, a Board registered in the Depository of Peoples Republic of of Directors, a President and Vice-Presidents as decided China on 11.1.2016. India is the second largest by the Board of Governors, and such other officers and shareholder in the AIIB and has an independent and staff as considered necessary. Governors are at exclusive seat on the Board of Directors of AIIB. Finance ministerial level, subject to the pleasure of the member Minister is India's Governor on the AIIB Board of appointing him. It was mutually decided that the first chair Governors, and Secretary (EA) is the Alternate. of the Board of Governors will be from Russia. Each Additional Secretary (MBC) is a Director on the Board member country is represented by a Governor and an of Directors and Joint Secretary (OMI) is the Alternate. Alternate Governor in the NDB Board of Governors. India Currently, Vice President and Chief Investment Officer is represented by Hon'ble FM as Governor and Secretary of the AIIB is from India (Dr. Urjit R. Patel). (EA) as an Alternate Governor in the Board of Governors. 75Annual Report 2021-2022 The Board of Directors is a non-executive and non- member countries (RMCs) and 27 Non-African countries resident body. Directors serve a term of two years and known as non-regional member countries (NRMCs). To may be re-elected. Each member country is represented become an AfDB member, non-regional members must by a Director and an Alternate Director in the NDB Board first accede to ADF membership. India had joined the of Directors. Bank on December 6, 1983. The Fund comprises, to date, 29 contributing countries (26 from NRMs and 3 from 15.3.3 Members and Shareholding RMCs/State participants) and benefits 38 countries. The 15.3.3.1 The initial authorized capital of the Bank is USD Fund's headquarters is at the Bank's headquarters, which 100 billion. The initial subscribed capital subscribed in is located in Abidjan, Côte D'Ivoire. India became a State equal shares by each of the founding members (Brazil participant/Donor of the ADF on May 6, 1982. All 81 AfDB Russia, India, China and South Africa) is USD 50 billion, members (54, RMCs & 27, NRMCs) are grouped into 20 of which USD 10 billion is being paid in seven installments. constituencies (13 regional and 7 non regional). India had Further, NDB announced the admission of 4 new joined the Nordic Constituency comprising Norway, perspective members namely Bangladesh, Egypt, UAE Sweden, Finland, Denmark and Ireland. India was allotted and Uruguay of which Bangladesh and UAE has formally a total of 41,475 shares and holds 0.287 in AfDB and in joined NDB. Bangladesh has subscribed 1.83% and UAE ADF has 0.178% voting share. India participates in the has subscribed 1.08% of share capital. BoG meetings which are held annually, and raises 15.3.4 Other Key Developments concerns during the BoD meetings via our constituency. 15.3.4.1 Regional Office: As per the NDB Article of India is represented in the Board of Governors by Hon'ble Agreement, the headquarters of the NDB was established Finance Minister of India and the Alternate Governor is in Shanghai, China and first Regional Office of the Bank the Secretary of the Department of Economic Affairs, was established in Johannesburg, South Africa. Further Ministry of Finance. As of December 2021, `601.9 crore at the BRICS Ministerial Meeting held in Fortaleza, Brazil and an additional USD 30.14 million Concession AfDB on 15 July 2014, it was resolved that the second Regional Donor Loans towards ADF replenishments, `31.33 crore Office of the Bank shall be established in Brazil, followed towards Multilateral Debt Relief Initiative and `55 crores by offices in Russia and in India. Recently, the Host was pledged towards Technical Cooperation Agreements Country Agreement for setting up NDB's Regional Office contributing to the Fund as a Donor for various in India was approved by the NDB Board of Directors development initiatives. and India Regional Office has been announced. We 15.5 European Bank for Reconstruction and expect the operationalization of the India Regional Office Development (EBRD) soon. 15.5.1 EBRD, headquartered in London was established 15.3.5 NDB projects in India in 1991 to help the erstwhile economies of Central and 15.3.5.1 As of February, 2022, 19 Projects have been Eastern Europe reconstruct their economies in the post- approved by NDB (17 Sovereign and 2 Non-sovereign) Cold War era, evolve into open, market-oriented for financing of USD 7 billion. economies, committed to the principles of multiparty democracy and pluralism. EBRD works in more than 30 15.3.6 NDB Assistance during COVID-19 Pandemic countries from Central Europe to Central Asia and in India Southern and Eastern Mediterranean. The EBRD is the 15.3.6.1 As of February 2022, NDB has approved two only Bank among MDBs that focuses mainly on the non- projects namely Emergency Assistance Program in sovereign operations EBRD has an explicitly political combatting COVID-19 of USD 1000 million and COVID- mandate: firstly, to support democracy-building activities. 19 Emergency Program Loan for Supporting India's Second, the EBRD does not have a concessional loan Economic Recovery from COVID-19 of USD 1000 million window. To date, the Bank has 70-member countries, as during COVID-19 Pandemic in India. well as the European Union and the European Investment 15.4 African Development Bank Bank. India had joined the EBRD in July 2018 as its 69th 15.4.1 The African Development Bank Group is a shareholder and currently holds 0.033% shareholding in multilateral development finance institution comprising the Bank. India is part of the Portugal Constituency in three distinct entities: the African Development Bank EBRD, which comprises Portugal, Greece, and San (AfDB), the parent institution, and two affiliates, a Marino. India paid Euro 1.79 Million (14.74 Cr INR) concessional window the African Development Fund towards its paid-up portion and has an initial subscription (ADF) and the Nigerian Trust Fund (NTF). When the of 986 shares India became the member of the Bank, African Development Bank (AfDB) was established, only comprising 179 paid-in shares and 807 callable shares. independent African countries were eligible to be India is represented in the Board of Governors by Hon'ble shareholders of the Bank, and later in 1982, the Finance Minister of India and the Alternate Governor is memberships were opened to Non-African Countries. The the Secretary of the Department of Economic Affairs, Bank comprises 54 African countries known as regional Ministry of Finance. 76Department of Economic Affairs I Annexure-I (A) DEPARTMENT OF ECONOMIC AFFAIRS (MAIN) Representation of SCs, STs, and OBCs (As on 31/12/2021) Groups Number of Employees Number of appointments made during the previous year i.e. 2021 By Direct Recruitment By Promotion By Other Methods Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Group A 192 30 5 30 30 5 1 8 23 1 1 0 0 0 Group B 243 35 33 44 20 3 0 10 0 0 0 1 0 0 Group C 197 70 6 29 2 0 0 1 6 2 0 1 0 0 TOTAL 632 135 44 103 52 8 1 19 29 3 1 2 0 0 Annexure-I (B) DEPARTMENT OF ECONOMIC AFFAIRS (MAIN) Representation of Persons With Disabilities (PWD) (As on 31/12/2021) DIRECT RECRUITMENT PROMOTION Groups Number of Employees No. of No. of No. of No. of Vacancies reserved Appointments made Vacancies reserved Appointments made Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Group A 192 0 0 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 Group B 243 0 1 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Group C 197 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 632 0 1 9 0 0 0 1 0 0 1 0 0 0 0 0 0 0 77Annual Report 2021-2022 Annexure-II (A) NATIONAL SAVINGS INSTITUTE, NEW DELHI Representation of SCs, STs, and OBCs (As on 31/12/2021) Groups Number of Employees Number of appointments made during the previous year i.e. 2021 By Direct Recruitment By Promotion By Other Methods Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Group A 3 1 0 0 0 0 0 0 0 0 0 0 0 0 Group B 18 2 0 4 0 0 0 0 0 0 0 0 0 0 Group C 34 7 4 10 0 0 0 0 0 0 0 0 0 0 Total 55 10 4 14 0 0 0 0 0 0 0 0 0 0 Annexure-II (B) NATIONAL SAVINGS INSTITUTE, NEW DELHI Representation of Persons With Disability (PWD) SCs, STs and OBCs (As on 31/12/2021) DIRECT RECRUITMENT PROMOTION Groups Number of Employees No. of No. of No. of No. of Vacancies reserved Appointments made Vacancies reserved Appointments made Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Group A 3 0 0 0 - - - - - - - - - - - - - - Group B 18 0 0 0 - - - - - - - - - - - - - - Group C 34 0 0 1 - - - - - - - - - - - - - - Total 55 0 0 1 - - - - - - - - - - - - - - 78Department of Economic Affairs I Annexure-III (A) SECURITIES APPELLATE TRIBUNAL, MUMBAI Representation of SCs, STs, and OBCs (As on 31/12/2021) Groups Number of Employees Number of appointments made during the previous year i.e. 2021 By Direct Recruitment By Promotion By Deputation Total SCs STs OBCs Others Total SCs STs OBCs Total SCs STs Total SCs STs 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Group A 5 0 0 0 5 0 0 0 0 0 0 0 0 0 0 Group B 7 1 0 0 6 0 0 0 0 0 0 0 0 0 0 Group C 12 2 0 4 6 0 0 0 0 0 0 0 0 0 0 TOTAL 24 3 0 4 17 0 0 0 0 0 0 0 0 0 0 Annexure-III (B) SECURITIES APPELLATE TRIBUNAL, MUMBAI Representation of Persons With Disabilities (PWD) SCs, STs and OBCs (As on 31/12/2021) BY DIRECT RECRUITMENT PROMOTION Groups Number of Employees No. of No. of No. of No. of Vacancies reserved Appointments made Vacancies reserved Appointments made Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Group A 5 0 0 0 - - - - - - - - - - - - - - Group B 7 0 0 1 - - - - - - - - - - - - - - Group C 12 0 0 0 - - - - - - - - - - - - - - Total 24 0 0 1 - - - - - - - - - - - - - - 79Annual Report 2021-2022 Annexure-IV (A) SECURITIES EXCHANGE BOARD OF INDIA Representation of SCs, STs, and OBCs (As on 31/12/2021) Groups Number of Employees Number of appointments made during the previous year i.e. 2021 By Direct Recruitment By Promotion By Other Methods Total SCs STs OBCs Total SCs STs OBCs Total SCs STs OBCs Total SCs STs OBC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 OFFICERS 900* 127 50 249 2 1 0 0 88** 13 5 26 3*** 0 0 0 SECRETARIES 72 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 JUNIOR ASST. 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 MESSENGER/ COOK 2 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL 975 128 50 252 2 1 0 0 88 13 5 26 3 0 0 0 * Includes four employees who are on contract/deputation ** Includes promotion within the Grade *** On contract / deputation. Annexure-IV (B) SECURITIES EXCHANGE BOARD OF INDIA Representation of Persons With Disability(PWD) STs and OBCs (As on 31/12/2021) DIRECT RECRUITMENT PROMOTION Groups Number of Employees No. of No. of No. of No. of Vacancies reserved** Appointments made Vacancies reserved Appointments made*** Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 OFFICERS 900 12 5 11 4 6 0 2 0 0 0 0 0 0 4 1 1 2 SECRE- TARIES 71 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 JUNIOR ASST. 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 MSNGR/ COOK 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 975 13 5 11 4 6 0 2 0 0 0 0 0 0 4 1 1 2 * Includes four employees who are on contract/deputation. ** Includes Backlog vacancy. Vacancies were advertised in the CY 2020; however due to COVID-19, the recruitment exercise got delayed and the newly recruited officers joined in CY 2021 post completion of recruitment exercise. *** Includes promotion within the Grade for CY 2020. 80Department of Economic Affairs I Annexure-V (A) SECURITY PRINTING & MINTING CORPORATION OF INDIA LIMITED (SPMCIL) Representation of SCs, STs, and OBCs (As on 31/12/2021) Groups Number of Employees Number of appointments made during the previous year i.e. 2021 By Direct Recruitment By Promotion By Other Methods Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Group A 358 58 19 69 25 2 1 5 0 0 0 0 0 0 0 Group B 927 140 75 170 17 2 0 1 50 13 1 3 1 0 0 Group C 5412 1050 498 824 94 3 0 23 315 85 22 3 1 2 0 TOTAL 6697 1248 592 1063 136 7 1 29 365 98 23 6 2 2 0 Annexure-V (B) SECURITY PRINTING & MINTING CORPORATION OF INDIA LIMITED, (SPMCIL) Representation of Persons with Disabilities (PWD)SCs, STs and OBCs (As on 31/12/2021) DIRECT RECRUITMENT PROMOTION Groups Number of Employees No. of No. of No. of No. of Vacancies reserved Appointments made Vacancies reserved Appointments made Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Group A 358 0 1 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Group B 927 1 0 13 0 0 0 1 0 0 0 0 0 0 21 0 0 1 Group C 5412 23 48 121 1 0 0 13 1 0 0 0 0 1 119 0 0 3 Total 6697 24 49 136 1 0 0 14 1 0 0 0 0 1 140 0 0 4 81Annual Report 2021-2022 Annexure-VI (A) INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY GOVERNMENT OF INDIA Representation of SCs, STs and OBCs (as on 31.12.2021) Groups No. of employees Appointment by Appointment by Appointment by in position Direct Recruitment Promotion other methods Total SC ST OBC Total SC ST OBC Total SC ST Total SC ST OBC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Officers 57 4 1 9 34 4 1 7 1 0 0 22 0 0 2 Executive Assistants - - - - - - - - - - - - - - - Multi- Tasking Staff - - - - - - - - - - - - - - - Total 57 4 1 9 34 4 1 7 1 0 0 22 0 0 2 Annexure-VI (B) INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY GOVERNMENT OF INDIA Representation of SCs, STs and OBCs (as on 31.12.2021) By Direct Recruitment BY Promotion Groups Number of No. of No. of No. of No. of Employees Vacancies reserved Appointments made Vacancies reserved Appointments made Total VH HH OH Total VH HH OH Total VH HH OH Total VH HH OH Total VH HH OH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Officers 57 1 0 0 1 1 0 0 34 01 0 0 0 0 0 0 0 0 0 0 Executive Assistants - - - - - - - - - - - - - - - - - - - - Multi- Tasking Staff - - - - - - - - - - - - - - - - - - - - Total 57 1 0 0 1 1 0 0 34 01 0 0 0 0 0 0 0 0 0 0 82Department of Economic Affairs I 83 SRIAFFA CIMONOCE FO TNEMTRAPED EHT NI TRAHC NOITAZINAGRO )1202.21.13 no sa(Chapter - II Department of Expenditure II Department of Expenditure 1. Personnel Division Service(CSS)/ Central Secretariat Stenographer Service (CSSS)/ Central Secretariat Clerical Service (CSCS) upto 1.1 The Personnel Division works under the Special the level of Section Officers/ Private Secretaries in the Secretary (Personnel) and is responsible for Ministry of Finance, apart from coordinating Parliament administration of various financial rules and regulations work as well as Right to Information Act (RTI) matters for including those relating to personnel matters of Central the Ministry of Finance as a whole. Government Employees such as regulation of pay and allowances, policy matters on pension, and staffing of 1.7 Pay Research Unit (PRU) Government establishments by creation and upgradation 1.7.1 The Pay Research Unit was established in 1968 of posts, as also cadre reviews. and is mainly responsible for collection, compilation and 1.2 The Division also deals with proposals seeking analysis of data on actual expenditure incurred on pay to alter service conditions and other benefits to and various types of allowances as well as data pertaining Government employees with significant recurring financial to the strength of the Central Government Civilian implication. Broad instructions on Expenditure Employees and employees of Union Territory Management, including economy measures and Administration. This unit brings out an Annual Publication measures for improving quality of expenditure such as titled “Annual report on Pay & Allowances of Central through Utilisation Certificates (UC) are issued by the Government Civilian Employees”. The brochure provides Personnel Division. statistical information regarding expenditure incurred by the different Ministries/ Departments of the Central 1.3 This Division administers the General Financial Government on pay and various types of allowances such Rules and the Delegation of Financial Powers Rules as Dearness Allowance, House Rent Allowance, Overtime including issue of clarifications/ amendments thereto, and Allowance, Compensatory Allowance etc. in respect of coordinates with Financial Advisors of all Ministries/ its regular civilian employees. It also provides information Departments of the Central Government. All legislative on Ministry-wise/ Department-wise and Group-wise proposals with general financial implications are number of sanctioned posts and numbers of incumbents scrutinized in the Personnel Division. in position. 1.4 The Department of Expenditure (DoE), Ministry 1.8 Expenditure Management Commission of Finance (MoF) receives Capital Acquisition/works (EMC) proposals from Ministry of Defence pertaining to Army, Navy, Air Force, DRDO and Coast Guard. These 1.8.1 Expenditure Management Commission (EMC) proposals are received in MoF after tender evaluation was constituted on 04.09.2014 with a mandate to and price negotiations are done by MoD. Ministry of recommend ways to increase efficiency of public Finance is not involved in the appraisal procedure of these expenditure, review major areas of Central Government proposals although the proposals have significant expenditure and suggest ways of creating fiscal space financial implications. The position of Ministry of Finance required to meet development expenditure needs, without is also unique because a large number of proposals compromising fiscal discipline. The Commission needing approval of CCS originating from Ministries like submitted its Report in four parts by March 2016. Out of MEA and MHA are also examined in Ministry of Finance. the 181 actionable points in the EMC report found It is the endeavor of Ministry of Finance to ensure that no implementable now, 161 have already been implemented. duplication of assets are created for meeting similar The remaining recommendations have been taken up security environment wherein MoD, MHA or any other for implementation by the concerned Ministries/ Ministry is a stakeholder. Departments and implementation is on going. 1.5 Service matters pertaining to the Indian Audit and 1.8.2 As recommended by EMC, a data base of Accounts Service(IA&AS), Indian Civil Accounts Service Autonomous Bodies (ABs) has been set up in the website (ICAS) and Indian Cost Accounts Service (ICoAS) are of Department of Expenditure and 68 Ministries/ dealt with by this Division. Administrative assistance to Departments have uploaded data relating to ABs under the Finance Ministers’ Office is also provided by this their administrative control. The information uploaded on Division. the portal is used by various Ministries and NITI Aayog for review and decision making. 1.6 The Division also handles the overall administration of the Department of Expenditure and also 1.8.3 Department of Expenditure has also reviewed controls the cadre for all Central Secretariat 231 Autonomous Bodies under 23 Ministries/Departments 85Annual Report 2021-2022 for rationalization. The review reports were sent to the Department, with a representative from SIU as Core respective Ministries/Departments for further action to Member, conducts study of such organisations. implement the recommendations and reduce the number 1.11.2 The Financial Advisers (FAs) are main links of autonomous bodies through merger, closure and between the SIU in the Department of Expenditure and disengagement. other Ministries/ Departments/ Offices/ Organisations. All 1.9 RTI Cell requests for staffing studies by the SIU are routed through the concerned FAs in the Departments. The Study 1.9.1 The Right to Information Act, 2005 is implemented Reports are issued after ‘on the spot’ work measurement in its true spirit and the information required to be study are conducted by the SIU Study Team which disclosed under the Act has been uploaded on the website includes discussion with the senior officials of the of the Department. The Central Public Information organisations and finalization of the provision as Officers (CPIOs) ensure timely supply of information to assessment report of the SIU. The final report of the SIU applicants and prompt action is taken on appeals by is required to be implemented by the concerned Appellate Authorities. The quarterly returns are submitted organization within the stipulated period of three months to the Central Information Commission by the Cell. Suo- as per the instructions in this regard. Moto disclosure has been made mandatory as per orders of the Department of Personnel & Training. 2. Public Finance-State Division 1.9.2 RTI Cell works in close coordination with CIC and 2.1 Scheme for Special Assistance to States for Capital this Cell updates the CIC with quarterly report of the Expenditure Department in the matter of RTIs and also receives CIC hearing notices of the officials of this Department for 2.1.1 Considering the fiscal environment faced by the necessary action in the matter.During the year 2020-21 State Governments during 2020-21 due to the shortfall under RTI Act 2005, 1232 RTI applications and 48 in tax revenues arising from the COVID-19 pandemic, appeals received in physical form and 5403 RTI ‘Scheme for Special Assistance to States for Capital applications and 298 appeals received online were Expenditure’, was approved wherein special assistance disposed off in a time-bound manner. of Rs. 11,830.29 crore was provided to the State Governments in the form of 50-year interest free loan 1.10 Legal Cell during financial year 2020-21. This Scheme of Special Assistance to States for Capital Expenditure has been 1.10.1 Legal Cell is the ‘Nodal Branch’ of the extended for the financial year 2021-22 with an allocation Department of Expenditure in Legal matters and of Rs. 10,000 crore. The Scheme for the financial year coordinates on Legal matters/Court cases pertaining to 2021-22 has three parts: ‘Establishment Division’ of the Department. The Cell receives the legal notices from various Courts and 2.1.2 Part-I is for the 8 north eastern States i.e. Assam, Government Counsels, receipts from the Government Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Counsels in connection with Professional Fee for their Nagaland, Sikkim and Tripura, and for the hill States of engagement and services, Collecting/compiling Uttarakhand and Himachal Pradesh. The sum allocated information on pending court cases, wherein Department for this part is Rs. 2,600 crore. Out of this amount, Rs. of Expenditure is one of the respondents and submitting 1,400 crore is divided equally among 7 north eastern the same to the Secretary (Exp.) for follow up action States while Rs. 1,200 crore is earmarked for Assam, thereon. It also maintains overall supervision on all Uttarakhand and Himachal Pradesh in equal shares legal matters and refers the Court cases received from (Rs.400 crore each). the various Sections of ‘Establishment Division’ to 2.1.3 Part-II is for all other States not included in Part- Ministry of Law & Justice for advice. The Cell also I. An amount of Rs. 7,400 crore is earmarked for this coordinates with M/o Law & Justice in Legal matters part. This amount has been allocated amongst these pertaining to Department of Expenditure. States in proportion to their share of Central Taxes as 1.11 Staff Inspection unit (SIU) per the award of the 15th Finance Commission for the financial year 2021-22. 1.11.1 The Staff Inspection Unit (SIU) was set up in 1964 with the objectives of securing economy in the 2.1.4 Part-III is for providing incentives to States staffing of Government Organizations consistent with Governments for privatization/disinvestment of the State administrative efficiency and evolving performance Public Sector Enterprises (SPSEs) and monetization/ standards and work norms in Government offices and recycling of assets. Under this part, States will be institutions wholly or substantially dependent on provided additional funds as 50 years interest free loan Government Grants. The Scientific and Technical over and above their allocation under Part-I/Part-II of the Organisations are not within the purview of the SIU but a Scheme. An amount of Rs. 5,000 crore is allocated for Committee constituted by the Head of the Respective this part of the Scheme. 86Department of Expenditure II 2.1.5 As on 30.11.2021 capital expenditure proposals of would provide additional resources available to the States Rs.6585.00 crore of 16 States have been approved and amounting upto Rs. 1,05,864 crore.The objectives of the an amount of Rs. 3276.96 crore has been released to additional borrowing space are to improve the operational the States under the scheme. and economic efficiency of the sector, and promote a sustained increase in paid electricity consumption. This 2.2 Borrowings of the States special dispensation has been recommended for each 2.2.1 As per the recommendations of Fifteenth Finance year for a four year period from 2021-22 to 2024-25. Commission [XV-FC], higher normal Net Borrowing 2.3 Loan to States in lieu of GST Compensation Ceiling of 4 percent of Gross State Domestic Product shortfall (GSDP) was allowed to States for 2021-22. The net borrowing of the States for the year 2021-22 has been 2.3.1 In order to meet the shortfall in Goods and Services fixed at Rs. 8,46,922 crore at 4% of GSDP of the States. Tax (GST) compensation to be paid to States, the Out of Net Borrowing Ceiling fixed for the year 2021-22, Government of India had set up a special borrowing consent of Government of India under Article 293(3) of window in the year 2020-21. An amount of Rs. 1,10,208 the Constitution of India amounting to Rs. 6,00,565 crore crore was borrowed through this window by the to raise open market borrowing (OMB) and Rs.55,532 Government of India during 2020-21 on behalf of the crore for negotiated loan has been issued to the State States and Union Territories with legislative assembly and Governments as on 30.11.2021. passed on to the States /UTs as loan on back to back basis to help the States/UTs to meet the resource gap 2.2.2 The capital expenditure has a high multiplier due to non-release of compensation due to inadequate effect, enhances the future productive capacity of the balance in GST compensation fund. All eligible States economy, and results in a higher rate of economic and UTs (with Legislature) have agreed to the growth. Accordingly, out of the net borrowing ceiling arrangements of funding of the compensation shortfall (NBC) of 4% of GSDP for the States for 2021-22, 0.50 under the back-to-back loan facility. percent of GSDP was earmarked for the incremental capital expenditure to be incurred by the States during 2.3.2 Subsequent to the deliberations in the 43rd GST 2021-22. For this a target for capital expenditure was Council meeting, Centre has borrowed Rs. 1.59 lakh crore fixed for each State. To become eligible for incremental from the market through special borrowing window in the borrowing, States were required to achieve at least 15 current financial year 2021-22 and released the entire percent of the target set for 2021-22 by the end of 1st amount to States and UTs with Legislature as a back-to- quarter of 2021-22, 45 percent by the end of 2nd quarter, back loan in three tranches i.e. Rs. 75,000 crore on 15th 70 percent by the end of 3rd quarter and 100 percent by July, 2021, Rs. 40,000 crore on 07th October, 2021 and 31st March 2022. Rs. 44,000 crore on 28th October 2021. 2.2.3 During the first review, eleven States namely, 2.4 Additional central Assistance for Externally Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Kerala, Aided Projects Madhya Pradesh, Manipur, Meghalaya, Nagaland, 2.4.1 Additional Central Assistance for Externally-Aided Rajasthan and Uttarakhand have achieved the target set Projects (EAPs) is passed on to the General Category for the capital expenditure in the 1st Quarter of 2021-22 States on back to back basis on the same terms and and these States have been granted permission to borrow conditions on which these loans are received by the Union an additional amount of Rs. 15,721 crore. During the Government from donor agencies. However, in case of second review, eight States namely, Chhattisgarh, Kerala, North Eastern and Himalayan States, special Madhya Pradesh, Manipur, Meghalaya, Punjab, dispensation has been made whereby they receive the Rajasthan and Telangana have achieved the target set assistance for EAPs in grant: loan ratio of 90:10. Based for the capital expenditure upto 2nd Quarter of 2021-22 on the recommendations of the Office of Controller of and these States have been granted permission by the Aid, Account and Audit Division, Department of Economic Department of Expenditure to borrow an additional Affairs, an amount of Rs. 16,449.74 crore has been amount of Rs.16,781 crore. After two rounds of review of released to the State Governments during 2021-22 (as capital expenditure, total additional borrowing permission on 30.11.2021) as against Budget Estimates (2021-22) of Rs. 32,502 crore has been issued to States (till of Rs. 49,750 crore. 30.11.2021). 2.5 Special Assistance to States 2.2.4 Further, XV-FC has recommended performance based additional borrowing space of 0.50 percent of 2.5.1 Post implementation of the 14th Finance Gross State Domestic Product (GSDP) to States in the Commission, States were empowered through the budget power sector. This additional borrowing of 0.50 percent line ‘Special Assistance to States’ for meeting spill over of GSDP is over and above the normal net borrowing committed liabilities for which Budget provision is not ceiling of 4 percent of GSDP fixed for year 2021-22. This made after implementation of the 14th Finance 87Annual Report 2021-2022 Commission recommendations and other need based attainment of star ratings as developed by MoHUA (for assistance to the States. Accordingly, Rs. 6950.50 crore non-million plus cities; (b) drinking water, rain water in 2017-18, Rs. 4680.81 crore in 2018-19, Rs. 1623.70 harvesting and water recycling (both for Rural Local crore in 2019-20 and Rs. 1948.66 crore in 2020-21 were Bodies and Urban Local Bodies). Under the ULBs grants, released to states as Special Assistance for meeting for cities with million plus population (Million-Plus cities), contextual needs. Now, in the first financial year of the 100 per cent of the grants are performance-linked through 15th Finance Commission award period (from 2021-22 to the Million-Plus Cities Challenge Fund (MCF). 2025-26) Rs. 731.00 crore has been released (till 2.6.4 To strengthen the hands of the State Governments 30.11.2021) as Special Assistance to the States of Goa, in prevalent Pandemic situation, as a special Gujarat and Sikkim. dispensation, the Department of Expenditure, Ministry of 2.6 Finance Commission Grants to States Finance at the recommendation of the Ministry of Home Affairs had released in advance (April, 2021) 1st 2.6.1 Finance Commission Division (FCD) undertakes instalment of the Central Share of the State Disaster processing of and follow up action on the various Response Fund (SDRF) of an amount of Rs.8,873.60 recommendations of the Central Finance Commission crore to all States for the year 2021-22. Similarly, the 2nd including release of grants recommended by the instalment of Rs 8,873.60 crore has also been released successive Central Finance Commissions. in advance to all States. During 2021-22 up to 50% of the 2.6.2 The Union Government on 01.02.2021 vide annual allocation of SDRF amount may be used by the Explanatory Memorandum as to the Action Taken on States for COVID-19 containment measures. the Recommendations made by the Fifteenth Finance 2.6.5 Health Sector Grants: The XV-FC has Commission (XV-FC) in its Report for the award period recommended Grants for Health to be channelised VFC 2021-22 to 2025-26 inter-alia accepted the through Local Governments amounting to Rs. 13,192.00 recommendations of the XV-FC. The XV-FC has crore for the year 2021-22 against this Rs.12,251.82 crore recommended grants-in-aid amounting to has been released. To strengthen and plug the critical Rs.2,33,233.77 crore to the States for the year 2021-22 gaps in the health care system at the primary health care for Post Devolution Revenue Deficit Grant, Grants to level, XV-FC has also identified interventions that will Local Bodies, Health Sector Grant and Disaster directly lead to strengthening the primary health Management Grants. The details of allocation and infrastructure and facilities in both rural and urban areas. releases of grants to State Governments under various components during 2021-22 are as under: 2.6.6 For 2021-22, recommendations of the XV-FC is (` in Crore) being implemented. Upto 30.11.2021, a total of Rs.1,44,633.07 crore has been released to the State Grants release Sl. Allocation during 2021-22 Governments for various components as recommended Components for No. (Upto by the Commission. The remaining part of the 2021-22 30/11/2021) recommended grants for the year 2021-22 will be Post Devolution Revenue Deficit released to the concerned States upon fulfilment of the 1. 118452.00 78968.00 Grant stipulated conditions. 2. Urban Local Bodies Grant 22114.00 6874.13 2.7 PFMS Unit 3. Rural Local Bodies Grant 44901.00 25248.38 4. Health Sector Grant 13192.00 12251.82 2.7.1 Public Financial Management System (PFMS) was started as a Central Sector/Central Plan Scheme and in Central Share of State Disaster 5. 22184.00 17747.20 Risk Management Fund/SDRF December, 2013 was approved for national roll out for all Central Share of National States and Schemes for a period of four years which was 6. Disaster Risk Management 12390.77 3543.54 later extended up to March, 2020. In September, 2019, Fund/NDRF it was decided that PFMS would cease to be a Central Grand Total 233233.77 144633.07 Sector and all activities of PFMS would be considered as a regular establishment activity of CGA. 2.6.3 The XV-FC have recommended Rs.22,114.00 2.7.2 A PFMS Unit was created in the Department of crore for Urban Local Bodies Grants and Rs.44,901.00 Expenditure in August, 2020. Subsequently, a dedicated crore for Rural Local Bodies Grants for 2021-22. The PFMS Division was also created vide order dated 05th Commission has recommended that 60 per cent of the April, 2021 within the Office of Controller General of grants to Rural local bodies and for Urban local bodies in Accounts (CGA) to exclusively look after the work of non-Million-Plus cities should be tied to supporting and Design, Development and Implementation of PFMS. The strengthening the delivery of two categories of basic PFMS Division will report functionally to the Secretary services: (a) sanitation, maintenance of ODF status (for (Expenditure) through the Additional Secretary/Joint Rural Local Bodies), solid waste management and Secretary in charge of PFMS unit in the Department of 88Department of Expenditure II Expenditure, as DoE’s operational relationship with 3.4 Public Finance (Central) division deals with the States/UTs and Central Ministries/Departments is likely financial restructuring of Central PSUs on the to facilitate better monitoring and smooth implementation recommendations of the Bureau for Restructuring of of PFMS. Public Sector Enterprises (BRPSE). It is also engaged in working out modalities for financial assistance to CPSEs, 2.7.3 Accordingly, following key actions have been quantification of their Internal and Extra Budgetary taken by the Department of Expenditure during 2020-21: Resource (I&EBR) generation for preparation of budget,  Webinar on PFMS- Enhancing usage, providing finalizing modernization of plants and machinery to ensure a Pleasing Experience: A Webinar was arranged more efficiency in production. Review of Capex and IEBR on 5th March, 2021 by the Department of of CPSEs is also done periodically. Expenditure alongwith the Office of CGA to revisit 3.5 Various issues relating to Food, Fertilizers, LPG PFMS for constant improvement. The purpose and Kerosene subsidy, including their quantification and of the webinar was to get feedback from a cross extension of assistance to the stake holders are also dealt section of users of PFMS to make the system within this division. This Division is actively involved along more user friendly, reduce manual processing with the concerned Department/Ministry, in shaping and decrease the compliance burden. The areas subsidy policy of the government as to ensure effective covered during the webinar include issues and targeting coupled with minimum burden on the challenges in EAT module, Moving towards a Government. Paperless PFMS, Issues facing users in Treasury Operations. Feedback and issues were received 3.6 The PFC division also deals with various issues from cross section of users based on which of Direct Benefit Transfer (DBT) in coordination with the action has been taken by the Office of CGA. DBT Mission, Aadhaar based authentication of beneficiaries data base and use of the Public Financial  New guidelines for releases under Centrally Management System (PFMS) in order to have end to Sponsored Schemes: As one of the Public end digitized information on all central expenditures expenditure management initiative, a new encompassing CSSs, CSs, subsidies and other procedure for release and monitoring of funds in expenditure. CSS has been issued by the Government on 23.03.2021.This procedure is intended to reduce 3.7 This division is responsible for preparation of float of funds and just in time transfer of funds to outcome budgets for all Central Ministries/Departments Implementing agencies by State in consultation with the NITI Aayog. This output-outcome Governments. The procedure has come into framework shall be for all CSSs and CSs dealing with effect from 01.07.2021. To facilitate smooth identified measurable outcome in the relevant medium implementation of the revised procedure the term framework,physical and financial outputs are Department of Expenditure has also issued a targeted on a year to year basis. A consolidated Outcome Frequently Asked Questions (FAQs) dated Budget 2021-22 was presented in the Parliament as a 7.7.2021 and Standard Operating Procedure part of the Budget Documents of 2021-22. (SOP) dated 30.7.2021. 3.8 During the period from 1st April, 2021 to 30th 3. Public Finance Central Division November, 2021, the Expenditure Finance Committee (EFC) Chaired by Secretary (Expendiutre) recommended 3.1 Public Finance (Central) Division is primarily 131 investment proposal/schemes of various Ministries/ engaged with all issues relating to the Expenditure related Department costing Rs.2,607,496.39 crores. proposals of the Government of India through various public funded programmes/ schemes/ projects of Central 3.9 Also, during the period, Public investment Board Government Ministries/ Departments. (PIB) chaired by Secretary (Exp.) considered and recommended 18 proposal involving an amount of Rs. 3.2 This division is entrusted with the appraisal and 1,57,634.68 crores. approval of all public funded schemes and projects of the Central Ministries/PSUs. In respect of development 3.10 In order to speed up the appraisal process, and schemes and projects, the focus has been on improving online portal for uploading EFC/PIB/SFC/DIB proposals, the quality of public Expenditure though better Scheme/ marking proposals to relevant Ministries, receiving Project formulation, emphasis on outputs, deliverables, comments, fixing dates for the meetings and dispatching impact assessment and convergence approach. minutes after approval has been functional since August, 2017. 3.3 A continuous endeavour is made to rationalize the Centrally Sponsored Schemes (CSSs) and Central 3.11 In August, 2021, revised format for appraisal and Sector Schemes (CSs) for optimal and focused use of approval of new Public Funded Schemes were issued, public resources. to make it more informative, lucid and to incorporate 89Annual Report 2021-2022 output/outcome related targets in a logical framework. present by various Ministries / Departments, This will make the appraisal more structured and effective CPSEs and autonomous / statutory bodies. e- while placing enhanced emphasis on measurable outputs/ Publishing of tender enquiries, corrigenda thereto outcomes of public expenditure. and details of contracts awarded thereon, on the Portal, has been made mandatory in a phased 4. Procurement Policy Division manner w.e.f 1st January 2012. 4.1 A Public Procurement Cell (PPC) was set up in ii. Further, it has also been decided to implement this Department in June, 2011 to take follow up action on e-Procurement in Ministries/ Departments of the Report of the Committee on Public Procurement the Central Government and instructions (CoPP) and for related matters such as drafting of rules have also been issued to all Ministries/ and setting up of a Central Public Procurement Portal. Departments to commence e-procurement in The Cell was gradually strengthened and a Division called respect of all procurement with estimated value Procurement Policy Division (PPD) was created. of Rs.2.50 lakh or more in a phased manner. Use of e-procurement has enhanced transparency 4.2 Functions of PPD and accountability and made procurement more The Division deals with the following items of efficient. This also helps in monitoring delays and work:- reducing the procurement cycle. i. Public Procurement legislation and rules, iii. Currently, more than 1,00,000 tenders are floated notifications, orders there under; per month using facility of CPPP (including States) which amounts to more than Rs.17 lakh ii. Policies relating to Public Procurement including crore per annum. Apart from it, many administration of General Financial Rules procurement organizations like Railways, PSUs 2017 on procurement of goods and services like ONGC, BHEL etc. have their own e- and contract management; policies relating procurement portals. to mandatory or preferential procurement; 4.4 Government e-Marketplace (GeM): iii. Matters relating to standardization of procurement related documents; i. It is mandatory to buy goods/ services available on GeM from GeM only. iv. All matters related to Central Public Procurement Portal (CPPP) set up for publishing information ii. In order to promote greater discipline and relating to Public Procurement; timeliness in payment to vendors, it has been decided that whenever a CRAC is auto generated v. Matters relating to electronic procurement; or issued by a buyer and payment is not made 10 days thereafter, the buyer organization will be vi. Professional standards to be achieved by officials required to pay penal interest @ 1% per month dealing with procurement and for the delayed payment beyond the prescribed suitable training and certification requirements timeline till the date of such payment. for the same; 4.5 Capacity Building: vii. Interface with International bodies on matters relating to Public Procurement. It is imperative that the executives/ officers engaged in public procurement process have thorough viii. Matters related to operational issues of knowledge of all the relevant rules, regulations and Government e-Marketplace (GeM). procedures of public procurement. For the purpose, one ix. Handling of proposals relating to Global Tender week Training Program on Public Procurement is Enquiry (GTE) received from all Central conducted in ArunJaitely National Financial Management Ministries. (AJNIFM), Faridabad with a view to educate and familiarize the concerned executives/ officers with all the 4.3 Central Public Procurement Portal & e- relevant rules, regulations and procedures of public Procurement procurement. Around 2,000 officers per annum are being i. Pursuant to the recommendations of the trained. So far, around 10,000 officers have already been Committee on Public Procurement (CoPP), a trained in AJNIFM. Central Public Procurement Portal (CPP Portal) 5. Official Language has been set up for providing comprehensive information and data relating to public 5.1 Hindi Section of the Department of Expenditure procurement and is accessible is responsible for implementation of the provisions made at www.eprocure.gov.in. It is being used at under Official Language Act, 1963 and Official Language 90Department of Expenditure II Rules, 1976 as amended from time to time. Hindi suggestions were also given to them to further improve Section is also responsible for coordinating follow-up the progress of Official Language Hindi. action on the suggestions/ directions given by Kendriya 5.5 The Policy of the Government with regard to the Hindi Samiti, Committee of Parliament on Official propagation and spread of the Official Language is that Language, Hindi Advisory Committee and Central Official Language Implementation Committee. Other the use of Hindi as Official Language may be increased responsibilities of the section include implementation with motivation, encouragement and goodwill.”Hindi of various incentive schemes to enhance use of Hindi Week” was observed in the Department from 14-21 in official work, facilitation in nomination of officers/ September, 2021 to motivate the employees for the employees for Hindi language training and organization progressive usage of Hindi in their day-to-day work. of Hindi Diwas/week/fortnight. In addition to these, Several competitions viz. Hindi Essay Writing, Noting- efforts for achieving annual targets set by Department Drafting, Poem Writing and ‘What does the picture say?’ of Official Language with regard to usage of Hindi in were organized to encourage the employees to work in official work are made in association with the other Hindi and create a conducive atmosphere. In addition, a Sections/Divisions/Offices in the Department. Campaign was launched for undertaking more and more 5.2 To increase original correspondence with other work in Hindi (minimum 2000 words) during the period Offices/individuals in Hindi, circulars are issued to from 01st to 30th September, 2021. Several officers and Sections/Divisions/Offices from time to time. As per employees of the Department took part in these quarterly progress report for the quarter ended on 31st competitions/campaign enthusiastically. September, 2021 original correspondence in Hindi with 6. Integrated Finance Unit (IFU) Region “A”, “B” and “C” is 69.66%, 67.5% and 54% respectively. 6.1 The Integrated Finance Unit works under Special 5.3 Virtual meetings of the Departmental Official Secretary & Financial Adviser (Finance) and deals with Language Implementation Committee were held on 23rd the expenditure and Budget related proposals under June, 2021 and 23rd September, 2021 in which reports Grant No.30 - Department of Expenditure which includes for quarters ending 31st March, 2021 and 30th June, (i) Secretariat General Services covering the 2021 received from the Sections/Divisions/Offices of establishment budget for the Department of Expenditure the Department were reviewed. Quarterly Progress (Main Secretariat), O/o Controller General of Accounts, Reports regarding progressive use of Hindi received O/o Central Pension Accounting Office, O/o Cost from Sections/Offices of the Department are reviewed Accounts Branch and O/o Chief Controller of Accounts; in detail keeping in view the targets prescribed in the (ii) Other Administrative Services covering the budget Annual Program. Wherever shortcomings were found, for Institute of Government Accounts and Finance, they are advised to rectify/improve usage of Hindi in National Institute for Financial Management, official work. Contribution to International Body (AGAOA) and the 5.4 Replies of letters received from members of budget relating to payment of service charges to the Parliament and other VIPs were promptly sent and follow Central Recordkeeping Agency for the New Pension up action ensured. During the period under reference, Scheme. replies to all the letters received in Hindi were compulsorily given in Hindi under Rule 5 of the Official 6.2 This Unit also monitors the expenditure under Language Rules 1976. Also, official language inspection Grant No.36 – Indian Audit & Accounts Department; and of 9 Sections/Divisions/Offices was conducted. During Grant No.39 – Pensions. inspection their work was found satisfactory and (₹ in crore) Budget Estimates 2021-22 *Revised Estimates 2021-22 Grant No. Revenue Capital Total Revenue Capital Total 30 – Department of 454.74 0.00 454.74 - - - Expenditure 36 – Indian Audit & 24.95 5434.92 - - - 5409.97 Accounts Department - - - 39 – Pensions 56873.12 0.00 56873.12 *Yet to be received. 91Annual Report 2021-2022 The allocations under the respective Grants are expenditures and collection of government receipts and as under: interact with the Central Bank for reconciliation of cash balances of the Union Government; and vi)Establish a 6.3 The Integrated Finance Unit expeditiously sound Human Resource Management System for examines and disposes the financial and expenditure recruitment, deployment and improve the career profile proposals pertaining to the Department of Expenditure management of officers and staff, both at the supervisory including the proposals for appointment of consultants, level and at the operational level within the Indian Civil deputation of officers abroad, payments towards Course Accounts Service. Fees (including grants-in-aid) to Arun Jaitley National Institute of Financial Management etc duly observing 7.4 Financial Reporting - Monthly and Annual :- austerity instructions issued by the Govt. from time to i) The office of the Controller General of Accounts is time. responsible for Monthly Consolidation of the Union Government Accounts, a detailed analysis of the monthly 6.4 The expenditure trend of Grant No.30-DoE is trends of receipts, payments, deficit and its sources of monitored consistently and strict control has been financing are presented to the Union Finance Minister exercised over the expenditure. A report of the review is every month. The documents has over a period of time regularly submitted to the Secretary (Expenditure) on evolved into an extremely useful tool for monitoring monthly basis. Further, the Quarterly expenditure of Grant budgetary compliance and a handy MIS reference for Nos. 36-IAAD and 39-Pensions is monitored and the decision making. In consonance with the Government’s report in this connection is submitted to Secretary (Expenditure) through DO letter. policy towards transparency in public functioning, an abstract of the Union Government accounts is also 7. Controller General of Accounts released every month on the Internet. The data can be accessed at the website http://www.cga.nic.in; ii) With 7.1 The Controller General of Accounts (CGA), in the the advancement of technology this office has started Department of Expenditure, Ministry of Finance, is the providing weekly flash figures of receipts, payments and Authority to administer, manage and supervise deficit to Ministry of Finance as a tool for quick departmentalized accounts of Government of India. It also management decision making. Daily flash figures are provides advice to various Ministries/Departments of provided in the month of March, in order to monitor various Government of India concerning Financial/Accounting financial parameters and targets; iii) In tune with the matters and is responsible for establishing and development in best practices, Controller General of maintaining a technically sound Payment and Accounting Account’s Office also prepares Provisional Accounts of System. the Government of India within two months of completion 7.2 The Office of Controller General of Accounts of the financial year; iv)The Finance Accounts of the prepares monthly and annual analysis of expenditure, Union Government is submitted to Parliament under the revenues, borrowings and various fiscal indicators for the provision of Article 151 of the Constitution of India. The Union Government. Under Article 150 of the Constitution, Finance Accounts of the Union Government presents the the Annual Appropriation Accounts (Civil) and Union accounts of receipts and disbursements for the purpose Finance Accounts are submitted to Parliament. Along with of the Union Government together with the financial these documents, an M.I.S Report titled ‘Accounts at a results disclosed by the revenue and capital accounts, Glance’ is prepared and circulated to Hon’ble Members the accounts of the public debt and the liabilities and of Parliament. assets are worked out from the balances recorded in the accounts; v) The Finance Accounts of the Central 7.3 Functions: i) Formulate policies relating to general Government comprises of the accounts of the Central principles, form and procedure of accounting for the Central and State Governments; ii) Administer the Government as a whole and includes transactions of Civil process of payments, receipts and accounting in Central Ministries/Departments, Ministries of Defence and Civil Ministries / Departments; iii) Prepare, consolidate Railways and the Departments of Posts & and submit the monthly and annual accounts of the Telecommunication. It presents the accounts of receipts Central Government through a robust financial reporting and outflows of the Central Government for the year system aimed at effective implementation of the together with the financial results disclosed by different Government fiscal policies; iv)Coordinate and assist in accounts and other data coming under examination. the introduction of Management Accounting Systems in These accounts include the Revenue and Capital Ministries/Departments with a view to optimizing the Account, Public Debt account and other liabilities and utilization of Government resources through efficient cash assets worked out from the balances in the accounts. It management and an effective Financial Management is supplemented by the accounts separately presented Information System (FMIS); v)Administer banking in the form of Appropriation Accounts for Grants and arrangements for disbursements of Government charged Appropriations. 92Department of Expenditure II 7.5 Public Financial Management System(PFMS): monitoring utilization of the funds released. This The Public Financial Management System (PFMS) is a resulted in tightening the procedure for grant of web-based online software application designed, central funds besides heightening its scrutiny on developed, owned and implemented by the Office of the fund utilization marking a big shift in the way Controller General of Accounts. Public Financial Centrally Sponsored Schemes (CSS) will operate Management System aims to provide a sound Public from now. Financial Management System for Government of India Over the years, Centrally Sponsored Schemes (GOI) by establishing a comprehensive payment, receipt and accounting network. It is aimed to achieve (i)”Just in (CSS) had become one of the largest financial time” transfer of funds and (ii) complete tracking of outgo for the Centre and several committees and realization of funds from its release to its credit into the finance commissions have recommended its bank account of intended beneficiaries. Public Financial heavy pruning and rationalization to make it more Management System makes a direct and significant effective. contribution to the Digital India Initiative of Government Accordingly new procedure for Centrally of India by enabling electronic payment and receipt for Sponsored Schemes (CSS) has been Ministries/Departments in Government of India. Presently, implemented since 01.07.2021 and Kerala Direct Benefit Transfer (DBT) payments in around 603 became the first state in the country to Schemes including state schemes are being made successfully operationalize a state nodal account through PFMS. Almost all the Central Sector (CS) & under Public Financial Management System Centrally Sponsored Schemes (CSS) are on PFMS and (PFMS) for the smooth flow of funds for centre- all the major banks including RBI are interfaced with sponsored schemes (CSS).After that all the 31 Public Financial Management System. State/UTs (With Legislature) are successfully 7.5.1 Achievements of Public Financial operationalizing the SNA under Public Financial Management System Management System (PFMS). The leading State in the implementation of SNA are Kerala, i) Treasury Integration: All the 31 Treasuries Chhattisgarh, Tamil Nadu, Uttarakhand, Delhi, integrated and are properly functional. and Puducherry. ii) External System Integration: 7.6 Technical Advice on Accounting matters a) Receipt Expenditure Advance Transfer 7.6.1 Article 150 of the Constitution provides that “The (REAT) integration completed for OPMS accounts of the Union and of the States shall be kept in (Online Procurement Management System) such form as the President may, on the advice of the for payment to farmers related to Telangana Comptroller and Auditor-General of India, prescribe.” Note State. to Rule 3 of Government Accounting Rules, 1990 provides b) REAT integration completed for Financial that “this function is exercised by the Controller General Accounting Package (FAP) of Food of Accounts, Ministry of Finance (Department of Corporation of India. Expenditure) on behalf of the President of India.” c) REAT integration completed for payment 7.6.2 Expenditures are classified according to the modules of Chhattisgarh CG Markfed Online function, programme, and their economic nature using a Paddy Procurement software fifteen digit numerical code. Receipts are classified d) REAT integration completed for OMMAS according to their nature and source. (Online Management, Monitoring and 7.6.3 In terms of Rule 26 of GAR, 1990 Controller Accounting system) related to payment to General of Accounts office administered the ‘List of Major beneficiaries under PMGSY (Pradhan Mantri and Minor Heads of Account of Union and States Gramin Sadak Yojana) (LMMHA)’, which contains the classification of account e) REAT integration completed for Annajkharid heads upto Minor Head level (and also some Sub/Detailed portal of Government of Punjab Heads under some of them) in Government Accounts. Any amendment in this LMMHA is carried out on the f) REAT integration completed for Food and advice of Comptroller and Auditor General of India Civil Supplies Department, Maharashtra (C&AG). In cases involving Accounting Procedure Budget iii) Single Nodal Account (SNA) Implementation: Division of Department of Expenditure, Ministry of Finance is also consulted. The Govt. of India, Ministry of Finance brought in new rules vide letter dated 23rd March, 2021 7.6.4 The Office of CGA developed the following New regarding procedure for release of funds under Head of Accounts:-New head of Accounts for Operation the Centrally Sponsored Schemes (CSS) and of ‘National Disaster Mitigation Fund’, ‘State Disaster 93Annual Report 2021-2022 Mitigation Fund’ were opened; New head of Accounts being done through the upgraded version of Audit Paras were also opened for classification of Expenditure on Monitoring System portal, which facilitates online ‘Industrial Promotion’, ‘Mineral Concession Fees’, ‘Non- submission and helps avoid scanning or physical Mineral Sairat Sources’, ‘Minor Mineral Concession submission of ATNs/ATRs/ENs. Fees’;& for classification of Receipts on Accounts of The number of CAG Audit para/ PAC paras/ ‘Agricultural Infrastructure Development Cess’. Explanatory Notes that have been submitted/settled 7.7 Treasury Single Account (TSA) through the APMS portal to the LokSabha (PAC Branch) during 2020-21 are as under:- 7.7.1 The Expenditure Management Commission (EMC) vide Para 125 of its September 2015 report had S.No. Subject Paras submitted to recommended to gradually bring all Autonomous Bodies (ABs) under Treasury Single Account (TSA) system. Under LokSabha Secretariat Treasury Single Account (TSA) system, all Autonomous during 01.04.2021 to Bodies (ABs) in receipt of grants-in-aid from Central 17.11.2021 Government have to open assignment limit based account 1. C&AG Audit Paras 197 in RBI linked with Central Government Principal Accounts Offices Account at RBI. Thereby ‘just-in-time’ cash release 2. PAC Paras 141 is ensured against the assignment limit to Autonomous 3. Explanatory Notes 29 Bodies (ABs). The unutilized balances at the end of the financial year will be written back to Government Account 7.10 Institute of Government Accounts and by PAO. The main advantage of the project is towards Finance (INGAF) financial gain on account of savings due to Just in time 7.10.1 The Institute of Government Accounts & Finance releases to Autonomous Bodies (ABs) resulting in reduction (INGAF) is the training arm of the Controller General of of Cash borrowings by the Government through RBI. The Accounts (CGA), Department of Expenditure, Ministry of guidelines for implementation Treasury Single Account (TSA) System were issued by Department of Expenditure, Finance, Government of India. Initially known as the Staff Ministry of Finance. Training Institute, it was set up in February, 1992 to train personnel in specific areas of accounting, administrative 7.7.2 Implementation of Treasury Single Account (TSA) matters and financial management. In the years following has been extended to 40 group of (Autonomous Bodies) its inception, the Institute has evolved to become a ABs, receiving funds amounting to more than Rs 200 premier training centre in the spheres of Government crores each from BE 2021-22 vide Budget Division Accounting and Public Financial Management. In Ministry of Finance OM dated 22-02-2021. addition, the Institute has Regional Training Centres 7.8 Government Banking Arrangement (GBA) (RTCs) at Chennai, Kolkata, Aizawl and Mumbai. 7.8.1 Department of Financial Services, Ministry of 7.10.2 Customized or Sponsored Training:- The Institute Finance vide their letter No. 7/10/2012-BO.II dated 24th of Government Accounts & Finance (INGAF) is being February, 2021 addressed to RBI removed embargo on regularly approached by various organization to provide the Private sector banks for doing Government Agency in-depth training for their staff and officers from Group A, Business. B & C such as Drawing and Disbursing Officers (DDOs)/ 7.8.2 Subsequently, this Office vide OM No. R-23001/ Heads of Officers etc. on a variety of subjects. Over the 1/2021-GBA-CGA/761-852 dated 6th August 2021 has last four years (2017-18 to 2020-21), this Institute has issued Criteria for selection of scheduled Private Sector conducted training programs for the different organization Banks as Accredited Bank/Authorized Banks for fresh/ whose duration spanned from one week to five weeks. additional government business (including government Prominent of these include national Investigation Agency agency Business) in Central Ministries/Departments in (NIA), National Sample Survey Organization (NSSO), respect of Government Agency Business Arrangement. Enforcement Directorate (ED), O/o Registrar General of India (ORGI) and so on. 7.9 Monitoring Cell 7.10.3 International Cooperation:- The Institute of Monitoring Cell, Office of the Controller General Government Accounts & Finance (INGAF) is a premier of Accounts, Department of Expenditure, Ministry of institute in the field of imparting training to participants Finance is entrusted with the work of co-ordination of from countries under ITEC programme in collaboration timely submission of Action Taken Notes (ATNs) on C&AG with Ministry of External Affairs. Besides this, the DPFM paras, Action Taken Replies (ATRs) on PAC paras and Explanatory Notes (ENs) on excess expenditure and participants of Sri Lanka Institute of Development savings of Rs. 100 crore and above as per direction of Administration (SLIDA), Sri Lanka have visited Institute Public Accounts Committee. Submission of Action Taken of Government Accounts & Finance (INGAF) on several Notes/Action Taken Replies and Explanatory Notes is occasion for training on Public Financial Management. 94Department of Expenditure II In addition, several programmes on Public Expenditure 8.4 Despite the limitations posed by outbreak of Covid- Management/Public Financial Management as well as 19 pandemic,the Office of Chief Adviser Cost completed Internal Audit/Risk Audit have regularly been conducted 56 studies/reports during the period from December 2020 for the participants from Royal Government of Bhutan, to November, 2021 following last annual report.The cost- the Government of Bhutan, the Government of price studies including vetting of claim/compensation Afghanistan and Nepal. The Institute of Government completed during this period are detailed below: Accounts & Finance (INGAF) has been functioning as (i) System Study/Pricing Methodology Study the Secretariat for the Association of Government Accounts Organization of Asia (AGAOA) since a) Determination of Pricing Methodology for the November 2007. Department of Atomic Energy of TBP (Tri Butyl Phosphate) & D2EHPA (Di2 Ethyl 8. Chief Advisor Cost Hexyl Phosphoric Acid) supplied by Talcher 8.1 The Office of Chief Adviser Cost (CAC) is one of and Baroda Unit of Heavy Water Board. the divisions functioning in the Department of (ii) Determination of Fair selling price of products/ Expenditure, Ministry of Finance. CAC is advising service where Government/Public Sector Ministries and Government Undertakings on cost Undertaking is the Producer/Service provider as accounts matters and undertaking cost investigation work well as the user :- a)Fixation of fair price of rails on their behalf. It is a professional body staffed by supplied by Steel Authority of India Ltd. (SAIL) Chartered Accountants/Cost and Management from Bhilai Steel Plant to Indian Railways for the Accountants. year 2019-20; b)Fixation of rates of 8.2 The Office of Chief Adviser Cost is rendering compensation for nuclear grade ammonium advice to the Central Government Ministries/ diuranate (NGADU) supplied by Indian Rare Departments/Organizations on complex Price/Cost Earths Limited to Bhabha Atomic Research related issues and financial matters, which cover a wide Centre for the years 2016-17, 2017-18 and 2018- spectrum of sectors/areas. It is currently engaged in the 19;c)Fixation of rate of compensation of Uranium following major thrust areas viz. i)Vetting of claims under Concentrate (U3O8) produced by Uranium Price Support Scheme, Market Intervention Scheme and Corporation of India Limited (UCIL) during the Price Stabilisation Fund for Perishable Agriculture year 2018-19;d)Fixation of fair selling price of produce and Cereals submitted by Implementing Tear Gas Gun (TGG) and Multi Barrel Launcher Agencies and State Governments; ii) Determination/ (MBL) manufactured by Central Workshop & fixation of fair prices of the products and services Stores (CENWOSTO), BSF, Tekanpur, Gwalior supplied/rendered by PSUs to the Government. To name for the year 2019-20; e)Fixation of fair price of a few: Rails by SAIL, Traction Electrics by BHEL, Bank Electronic Voting Machines consisting of Notes and Coins by SPMCIL, Uranium Concentrate by 13,95,306 Ballot Units, 10,55,716 Control Units UCIL, Nuclear Grade Ammonium Diuranate by IREL, Tear and 17,45,840 Voter Verifiable Paper Audit Trail Smoke Munitions, Tear Gas Gun, Multi Barrel Launcher (VVPAT) Units purchased for conducting by BSF etc.; iii) Subsidy payable to Northern Railway for LokSabha Elections – 2019;f)Fixation of Fair Catering Units functioning in Parliament House and Prime Price of Coins supplied by India Govt. Mints at Minister’s Office; iv) Representing in Revised Cost Kolkata, Hyderabad, Noida & Mumbai to RBI for Committee of the various Ministries and Departments to 2018-19;g)Determination of Fair Price of Bank identify the specific reasons behind time and cost overrun Notes supplied by Bank Note Press (BNP) of projects and schemes; v) Participating in EFC/PIB and Dewas & Currency Note Press Nashik to Reserve other Inter-Ministerial Committees; and vi)Examination Bank of India during the year 2019- of cost estimates, evaluation of the financial feasibility 20;h)Determination of Common Hourly Rates and other financial parameters of the High value and Overhead Percentage in respect of Infrastructural Projects like Rail, Highways, Power, Government of India Press, Mayapuri New Delhi Education Sector etc. referred by DoE. for the year 2017-18, Government of India Press, Rashtrapati Bhawan New Delhi, Minto Road New 8.3 The Office of CAC is also cadre controlling office Delhi, Mayapuri New Delhi and Temple Street for the Indian Cost Accounts Service (ICoAS), which Kolkata for the year 2018-19 and Government broadly encompasses Recruitment, transfer/posting and of India Press, Minto Road New Delhi for the year career progressions of ICoAS Officers. It also looks after 2019-20;i)Fixation of Final Price of DDT 50% training requirements of the officers for continuous up- WDP Supplied by M/s HIL (India) Ltd. to NVBDCP gradation of their knowledge and skills, in addition to for the year 2019-20;j)Vetting of price list of rendering professional guidance to the ICoAS officers Ayurvedic and Unani medicines manufactured working in different participating organizations. by Indian Medicines Pharmaceutical Corporation 95Annual Report 2021-2022 Limited (IMPCL) for the year 2017-18; and during the current year. Proactive role of this Office in k)Vetting of cost of homeopathic medicines the Revised Cost Committee has facilitated rationalisation manufactured by Goa Antibiotics & of revised cost estimates. Pharmaceuticals Limited. 8.6 EFC/PIB Committee Represented:This Office (iii) Determination of Fair selling price of products/ has represented and offered comments in 16 Expenditure service charges for the services supplied/ Finance Committee (EFC)/Public Investment Board (PIB) rendered by a Govt. Department/Agency for meetings in various Ministries/Departments involving a others total value of Rs. 2,07,383.40 crore during the period December 2020 to November, 2021. a) Study on printing of Maps by Survey of India. 8.7 Other Major Committees Represented: b) Pilot study on user charges of Tea-Board, Officers of Chief Adviser Cost’s Office owing to their Kolkata. expertise in costing/finance/commercial accounting (iv) Determination of subsidy/Reimbursement of have also served as Chairman/Members on the following Losses:- a)Vetting of claims of NAFED for major multi-disciplinary Inter-Ministerial/ Expert reimbursement of losses and recovery of Gains Committees:- a)Expert Group to examine remuneration under Price Support Scheme (PSS) for various to Department of Posts & Agency Banks for agency crops/commodities;b)Vetting of claims of charges/ remuneration for operating Small Savings NAFED, Food Corporation of India (FCI), State Schemes and other related issues; b)Expert Group to Trading Corporations (STCs) and Small Farmers formulate Final Guidelines for determination of Fees and Agri Consortium (SFAC) for reimbursement of all other charges in respect of Private Medical losses and recovery of Gains under Price Institutions and deemed to be Universities; c)National Stabilisation Fund (PSF) for various crops/ Pharmaceutical Pricing Authority (NPPA), Department commodities; c)Vetting of claims submitted by of Pharmaceuticals; d)Board of Governors and the Implementing Agencies and State Governments society of the Arun Jaitely National Institute of Financial under Market Intervention Scheme for Perishable Management (AJNIFM), Faridabad;e)Governing Body Agriculture produce (Onion & Garlic);d)Payment of Tear Smoke Unit, BSF, Tekanpur, (Gwalior);f)Advisory of establishment cost and subsidy claim in Committee for consideration of techno-economic respect of canteen run by Northern Railway viability of major/medium, flood control and multipurpose catering units functioning in PMO and Parliament projects, coordinated by Central Water House for various years; and e)Vetting of subsidy Commission;g)Price Negotiation Committee for fixing claims of Oil Marketing Companies (OMCs) unit price of 13,95,306 Ballot Units, 10,55,716 Control relating to Direct Benefit Transfer to domestic Units and 17,45,840 Voter Verifiable Paper Audit Trail LPG consumers under DBTL (PAHAL) Scheme, (VVPAT) Units purchased for conduct of LokSabha 2014. Elections – 2019 - Ministry of Law and Justice;h)M/o Water Resources, RD&GR -Special Committee for (v) Other studies :- a)Remuneration to Department Interlinking of Rivers;i)Working Group for reviewing the of Posts & Agency Banks for agency charges/ calculation of Benefit-Cost Ratio and Procedure for remuneration for operating Small Savings Revised Cost estimation for Major & Medium Irrigation Schemes and other related issues; b)Revaluation Flood Control and Multi-purpose projects under the of compensation payable to the prior allottees of Chairmanship of Member (Water Projects & Planning), Coal Blocks for ‘Mine Infrastructure Other than Central water Commission; j)9thRate Structure Land’ for various coal blocks;c)Finalisation of Committee under the Chairmanship of AS&FA, Ministry Proforma Balance Sheet and Income & of Information and Broadcasting for DAVP advertisement Expenditure Account of Tear Smoke Unit, rates for Print Media; k)Committee to adopt Uniform Tekanpur for the year 2019-20 & 2020-21; and Format of Accounts in 3 types of Health Institutions: d)Determination of Net Book Value/Present Hospital, Health Research and Medical Colleges; and Value of BU, CU and VVPATs proposed to be l)Committee for Ethanol Price to be paid to Ethanol transferred by the Election Commission of India suppliers for Ethanol supply year 2021-22 (01st to the State Election Commissions. December, 2021 to 30th November,2022) under the 8.5. Revised Cost Estimates Committees Ethanol Blended Petrol (EBP) Programme. Represented:In pursuance of Ministry of Finance, 9. Arun Jaitely National Institute of Department of Expenditure’s Office Memorandum No. 24(35)PF-II/2012 dated 05th August, 2016, Office of Chief Financial Management (AJNIFM) Adviser Cost has represented in 51 Committees for 9.1 Introduction about AJNIFM Revision of Cost Estimates in various Ministries/ Departments involving a total value of Rs. 46,809.45 crore 9.1.1 AJNIFM was set up in 1993 as a Society. The 96Department of Expenditure II Union Finance Minister is the President of the AJNIFM These short-term programmes deal with specific themes Society and Secretary (Expenditure) is the Chairman of and are specially tailored with the needs of the participants the Board of Governors. and sponsoring organisations. 9.1.2 It began with the core objective of training Officer 9.4 Collaboration with other Ministries/ Trainees (Probationers) of the 6 organised Accounts and Departments Finance services. However, over the years, the Institute a) The Memorandum of Agreement between has expanded its activities with four long term programs AJNIFM and Department of Economic Affairs has and a dynamic repertoire of short-term programmes. A been renewed for another period of two years brief of some of the programmes is given below. In the (01.04.2021 – 31.03.2023). process, AJNIFM has been able to carve a unique identity for itself as a premier institute of Ministry of Finance in b) The Institute also signed a Memorandum of professionalizing Public Financial Management and Understanding with Microsoft Corporation India Public Procurement. Ltd. commencing 30th June, 2021 to 30th June, 2022.The objective of the MoU is to 9.2 Key achievements conceptualize and explore building AI & emerging Due to the second wave of Covid-19, online classes for tech Centres of Excellence (CoE) with AJNIFM specified programmes could only be conducted. A total for MOF and associated Ministries with Fintech of 37 Management Development Programmes have been application subject to further deliberations and conducted online till October, 2021 and 1886 participants appropriate Microsoft internal processes and attended. The number of programmes scheduled from approvals. November, 2021 to March, 2022 including open as well c) Another Memorandum of Understanding has as sponsored programmes is 65. been signed between AJNIFM and ARTRAC for 9.3 Significant developments - Training the conduct of Management Development Programmes Programmes on Public Procurement & Financial Management for the Officers of Indian Army 9.3.1 AJNIFM conducts four long term programmes. under the aegis of Army Management Studies These are - Board (AMSB). The MoU will be valid for a period of three years from financial years 2021-22 to a. Professional Training Course: for Officer 2023-24. The MoU will be valid till 31st March, Trainees of various Accounts and Finance 2024 (29 months). Services (six months duration). 9.5 Initiatives taken with reference to the b. Post-Graduate Diploma in Northeast region. Management(Financial Management): A two- year AICTE approved programme for middle/ While the programmes run by AJNIFM draw senior officers of Central and State Governments participants from all over the country, recently, a special and the Defence Forces. training programme of one week duration on Public Financial Management was organised for newly recruited c. PGDM (Finance):This is a program with focus State Civil Service Officers of Arunachal Pradesh during on Financial Analysis, Financial Modelling, and 20-25th September, 2021. Financial products, Big Data Analytics, Financial Markets and Risk Management. It attracts 9.6 Initiatives undertaken for Disabled/ participants primarily from the private sector as Handicapped and SC/ST as well as other well as from the Central Government. weaker sections of Society d. PGDGAIA (Post Graduate Diploma in The AJNIFM campus is disabled friendly with Government Accounts and Internal Audit): A one- retro fittings at most of places. Any grievance received in year programme to upgrade the technical skills respect of SC/ST or other weaker sections are duly addressed. As on date, no grievance is pending with the of Group-B officers of the Civil Accounts Institute. Department under CGA. 9.7 Inputs on E-governance 9.3.2 Apart from its regular long term programmes,AJNIFM undertakes short term training 9.7.1 Dissemination of knowledge on new initiatives of programmes on various aspects of Finance and Public the Government: Whenever there are new initiatives of Financial Management. Participants include Central the Central Government, AJNIFM has been mandated Government Officers, State Government Officers, to launch special training drives to cover all Government Officers from Autonomous Bodies, PSUs, Defence entities. In fulfilment of this mandate, AJNIFM has run Forces and Officers from the Private Sector as well. several training programmes on GeM. 97Annual Report 2021-2022 9.7.2 Digital Governance: AJNIFM is a partner Institute  Providing support staff to Controller of Aid under NeGD, and is successfully delivering capacity Accounts and Audit (CAAA). building and training programmes in e-Governance for  Pension authorization under the Pension Rules all cadres of Government officials. Various training to the officials retiring on superannuation, seeking courses run at AJNIFM comprise a component on e- voluntary retirement and to the families of governance invariably. deceased employees/pensioners. 10. Chief Controller of Accounts (Finance)  Pension payment to foreign pensioners residing in India on behalf of Sri Lanka, Singapore, UK 10.1 The Chief Controller of Accounts (CCA) is in and Burma. overall charge of the payment and accounting set up of the Ministry and reports to SS&FA (Finance). He is  Accounting and monitoring of Loans advanced supported by three Controller of Accounts, one Deputy to foreign countries. Controller of Accounts, two Assistant Controller of  Accounting of total receipts and payments in the Accounts, 37 Senior Accounts Officers and approximately entire Central Government under the CGEGIS 300 other staff members at various levels. (Central Government Employees Group 10.2 Function of the CCA (Finance) Insurance Scheme) and calculation & accounting of interest liability of GOI under both the savings  Payments and accounting functions of six fund and Insurance fund components of this Departments in Ministry of Finance viz., scheme. Department of Economic Affairs, Department of Expenditure, Department of Revenue,  Provide support for the settlement of C&AG audit Department of Investment and Public Asset Para. Management, Department of Financial Services  Responsible for transfer of funds to and from CFI and Department of Public Enterprises. to Public Account. There are 14 such Funds in the Department of Economic Affairs, 2 in  Financial reporting to the Chief Accounting Department of Revenue, and 1 in Department of Authority (i.e. the Secretaries of the respective Expenditure. Departments) and to the Controller General of Accounts. The monthly accounts, Appropriation  Formulation of detailed Accounting procedures Accounts and Finance accounts pertaining to six in respect of the Funds maintained under Public Departments of the Ministry of Finance are sent Account of India. to the office of the Controller General of Accounts  Settlement of the cases relating to combined for their consolidation into the Accounts of pension, pro-rata pension, leave encashment, Government of India. leave salary and pension contributions, revision  The Scheme of Departmentalization of Accounts of pre-2016 pension cases etc. of the absorbed had envisaged a system of management employees of SPMCIL, after the corporatization accounting, O/o CCA prepares monthly and of Mints and Presses, in coordination with the quarterly review statements for receipt and Corporate office of SPMCIL, field units and the expenditure and submits the same for administrative division in the Ministry. information of the Secretaries of the  Internal debt accounting and reporting. Departments. The summary statements are also uploaded on the Ministry’s official website. 10.3 Achievements during the year:  Internal Audit is the responsibility of the O/o CCA. a) Enrolment of N.S.I. and Indian Economic Service into Employee Information System (EIS). In the Ministry of Finance, the Internal Audit Wing undertakes the audit of all DDOs, attached and b) Recovery of outstanding Penal Interest from subordinate offices including Banks who are Banks: Audit of the banks handling PPF-1968, handling Government Schemes such as Public SCSS- 2004 & Sukanya Samridhi Account-2016 Provident Fund, Special Deposit Schemes and scheme is conducted by Office of CCA (Finance) Senior Citizen Savings Scheme. There are about to check delayed remittances under these 137 auditee units within the jurisdiction of internal schemes. A total penalty of Rs. 22,71,70,325.66 audit. has been imposed on banks so far. 98Department of Expenditure II Details of Delayed Penal Interest levied on the Banks for PPF, SCSS and SSA (as on 30/11/2021) (Amount in Rs.) PPF SCSS SSA Total Outstanding as on 31/03/2020 14019973.62 67918229.09 - 81938202.71 Levied during 2020-21 93194761 84119558 - 177314319 Recovered during 2020-21 265996 31323278.87 - 31589274.87 Contested and dropped during 2020-21 65647 526922 - 592569 Total outstanding as on 31/03/2021 106883091.62 120187586.22 4692425.00 227070677.84 Levied during 2021-22 (upto 10/12/2021) 49740 16826002 0 16875742 outstanding as on 30/11/2021 104043594.5 120365170.1 4692425 243946419.84 Recovered during 2021-22 (upto 30/11/2021) 2889237.1 13886857.08 0 16776094.18 Contested and dropped during 2021-22 (upto 30/11/2021) 0 0 0 0 Net outstanding as on 10/12/2021 101154357.4 106478313.1 4692425 227170325.66 Name of the Schemes related works. The check points in the “Bhavishya Portal” ensures procedural accuracy of the PPF (Public Provident Fund-1968) pension cases. Pension cases of Pre-2016 are SCSS (Senior Citizen Saving Scheme-2004) being revised electronically on the E- portal eppo.nic.in/revision. SSA (Sukanya Samridhi Account-2016) f) All work related to feeding of budget, c) PFMS has been implemented in all Pay and supplementary, re-appropriation and surrender Accounts offices of the Ministry and all payments orders for each grant along with mapping of are being made through PFMS. Use of cheques heads to each scheme on PFMS has been as a mode of payment has been more or less successfully done since 2020-21. eliminated. All payments are now being made electronically. The implementation of PFMS g) The Automation of Compilation and coupled with extensive training to the concerned Consolidation of Monthly Accounts on PFMS was officials and peer to peer knowledge sharing has started from the Month of December, 2020 resulted in less adaptation time, more wherein the PAOs and Pr.AO are able to submit organisational efficiency, less response time in the accounts through their respective Digital payments, improved record keeping/tracking Signature on PFMS. through digital logs and more transparency. h) Vide Gazette Notification No. S.O. 2718(E) dated d) This Department has moved to Government e- 06.07.2021 issued by Government of India, Market Place for all the procurements. Officials wherein the Department of Public Enterprises were provided training on GeM and the has been made a part of the Ministry of Finance procurements are being made through GeM. The and the Finance advice charge of Department of procurement/process has now become more Public enterprises, will be looked after by SS & streamlined, efficient and transparent. This has FA, Ministry of Finance. The PAO (DPE) under considerably reduced the hurdles in the Ministry of Finance was set up and PAO functions procurement process, providing the purchasing commenced w.e.f. 01.10.2021 in a record time department with more choices and better of 3 months. recordkeeping as the bills are in digital format. i) Replacement of rupee loan software with e) All pension cases of this department are being INDRAA in the year 2021-22: The existing Rupee processed through the “Bhavishya Portal” Loan Software i.e. in house software was resulting in the expeditious processing of pension developed way back in 2003. Internal Debt of 99Annual Report 2021-2022 Government of India was Rs. 12,75,973/- crores 11.3 To endeavour and improve the ease of living of in the year 2004-05 which has increased to Rs. pensioners and to bring about transparency in the 42,40,767/- cores in 2013-14. For the Financial pension authorization process, the recent initiatives taken year 2021-22 it is estimated to be Rs. 69,03,225/ by CPAO are as follows: - crores. This increase in the internal debt over a) Consumption of e-PPO: The physical Pension the years has resulted in increased load on the Payment Orders (PPO) and e-PPOs were existing Rupee Loan Software which is a stand alone software with limited hardware capacity. received from the PAOs which are using Pension Hence, the new online software INDRAA i.e. Module of PFMS. The e-PPOs were being Internal Debt and Recovery Advanced Application transmitted to the Authorized banks but their is being developed and expected to come in force pension softwares were not ready to consume from 01.4.2022. the e-PPOs. Now all the banks are ready to consume e-PPOs as a result of vigorous efforts 11. Central Pension Accounting Office of CPAO. 11.1 The Central Pension Accounting Office (CPAO) b) Sharing of e-SSA with Bhavishya: Pensioners was established w.e.f. 1st Jan, 1990 for Payment and can get their Special Seal Authorities (SSA) by Accounting of Central (Civil) Pensioners and Pension to post, from bank and from the website of CPAO Freedom Fighters etc. CPAO is a subordinate office after login. CPAO is also sharing e-SSA in PDF under the Office of the Controller General of Accounts, format as an additional facility to the pensioners Ministry of Finance, Department of Expenditure. It has and they can get it from the Bhavishya Portal. been entrusted with the responsibility of administering the scheme of payment of pension to Central Government c) Digilocker: In order to provide additional facilities (Civil) Pensioners through authorized Banks. Its core to pensioners the e-PPO and e-SSA have been functions are: made available in digilocker through web service. The pensioner can now view and download their  Issue of Special Seal Authorities(SSAs) e-PPO and e-SSA from Digilocker. authorizing payment of pension in fresh as well as revision of pension cases to the d) Web Responsive Pensioner’s Service (WRPS): CPPCs(Central Pension Processing Centers) of WRPS has been developed to provide single pension disbursing Banks; point web solution for Pensioners to obtain comprehensive information relating to status of  Preparation of Budget for the Pension Grant and the pension processing and pension payments. accounting thereof; WRPS also provides a facility for logging of  Audit of CPPCs of pension disbursing Banks; grievances. The pensioners are provided an SMS at the stage of grievance registration and  Maintenance of Data Bank of Central Civil disposal. This ensures that they are fully Pensioners containing all details indicated in the informed of the status of the grievance. PPOs and Revision Authorities; e) Sharing of e-SSA with CGHS through web  Handle the grievances of Central Civil Pensioners service: In order to avoid delay in issuing CGHS  As an interim arrangement, payment of card to the pensioners, CPAO is sharing the e- provisional pension to the pensioners/family SSA with CGHS department. pensioners covered under New Pension Scheme as per orders of Ministry of Finance f) CPAO has been making an effort to ensure that pension authorization process becomes 11.2 Achievements: The primary function of CPAO is completely paperless. While the physical to issue SSAs to the CPPCs of Banks in fresh and revision Pension Payment Order (PPO) booklets have of pension cases. In the financial year 2021-22 (as on not been discontinued, as a first step, all the 30thNov, 2021), highlights are as follows: – Authorised Banks have been directed, w.e.f July  33,846 and 36,458 authorities were issued in 2021, to ensure that the credit of the first pension fresh and revision of pension cases respectively. into the account of pensioner/family pensioner is carried out immediately on the basis of e-PPO  Projection or estimate for the remaining period:- and e-SSA received from CPAO. This is i) Fresh Pension Case- 17,000 (Approx.) expected to lead to a significant reduction in delays experienced by the pensioners/ family ii) Revision of pension case- 18,000 (Approx.) pensioners in credit of first pension. 100Department of Expenditure II 11.4 e-Governance Initiatives of CPAO and Tracking for the pensioners. Under Web Responsive Pensioners’ Service (WRPS), 11.4.1 CPAO is a fully computerized office. A wide range facilities for pensioners’ grievance redressal and of softwares/packages have been developed/ uploading of list of retiring employees by implemented in this office for streamlining pension Ministries/Departments have been provided. It authorization, accounting, Grievance Redressal etc. is an important Digital India initiative for improving which include:- transparency, accountability and responsiveness i) Pension Authorization Retrieval & Accounting in pension processing and disbursements. This System (PARAS):- All the pension processing facility ensures digital presence and availability activities from receipt to dispatch are managed of records for pensioner. An instruction video on through PARAS. The web interface of PARAS Web Responsive Pensioners Service (WRPS) provides the related information to pensioners; has been prepared and uploaded on CPAO PAOs/Ministries & Banks. About 14.93 lakhs Website to assist the pensioners. SMS on Central Civil pension cases have been processed revision of the pension is being sent to the by CPAO through this software thereby creating pensioners along with a link to download the digital database of these pensioners. Various revision authority. MIS reports are also generated by this software  web link https://youtu.be/2yXIPZT8OqY for the purpose of monitoring. 11.4.2 Pensioners can now avail the following services ii) Web Responsive Pensioners’ Service (WRPS):- by registering on CPAO website using their PPO number Digital India campaign of Government of India and date of birth & date of retirement/date of death: emphasizes that Governmentservices should be made available to the citizens electronically by a) Pensioner Profile improving online infrastructure and by increasing b) Digital Record of Pension & Revision Orders internet connectivity or by making the country digitally empowered in the field of technology. c) Download Facility of Pension/Revision Under Digital India campaign, Central Pension Orders Sent to Banks Accounting Office (CPAO), M/o Finance took two important steps towards empowerment of Central d) Pension Processing Status Tracking Civil Pensioners and other stakeholders. The e) Monthly Details of Pension Payment then Hon’ble Union Minister for Finance & Corporate Affairs, Shri Arun Jaitley launched f) Grievance Redressal “Web Responsive Pensioners’ Service of CPAO g) SMS Facility on 14th Sep, 2016 and electronic-Pension Payment Order (e-PPO) on 1stMarch, 2018. This h) Links to JeevanPramaan, Bhavishya and is a milestone for CPAO towards its commitment CPENGRAMS Portals to efficiently & effectively serve the central civil pensioners. i) Dashboards for Pensioners, Banks and Ministries/Departments WRPS provides various services including Pension & Payment information, online Pension j) Social Media of CPAO Process Tracking & online Grievance Redressal 101Annual Report 2021-2022 102Department of Expenditure II 103Department of Revenue III Chapter - III Department of Revenue 1. Organisation and Functions xiii. Indian Stamp Act, 1899 (to the extent falling within jurisdiction of the Union); 1.1 The Department of Revenue functions under the overall direction and control of the Secretary (Revenue). xiv. Conservation of Foreign Exchange and It exercises control in respect of matters relating to all Prevention of Smuggling Activities Act, 1974; the Direct and Indirect Union Taxes through two Statutory xv. Prevention of Money Laundering Act, 2002; Boards, namely, the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and xvi. Foreign Exchange Management Act, 1999. Customs (CBIC). Each Board is headed by a Chairman who is also ex-officio Special Secretary to the Government xvii. Union Territory Goods & Services Tax Act, 2017 of India. Matters relating to the levy and collection of all the Direct taxes are looked after by the CBDT whereas xviii. Goods & Services Tax (compensation to States) those relating to levy and collection of Goods and Service Act, 2017 Taxes (GST), Customs and Central Excise duties, Service xix. Central Goods & Services Tax Act, 2017 Tax and other Indirect taxes fall within the purview of the CBIC. The two Boards were constituted under the Central xx. State Goods & Services Tax Act, 2017; and Board of Revenue Act, 1963. Each Board has a sanctioned strength of 6 (six) members. xxi. Integrated Goods & Services Tax Act, 2017 1.2 The Department of Revenue administers the 1.3 The Department looks after the matters relating following Acts: to the above-mentioned Acts through the following attached/subordinate offices: i. Income Tax Act, 1961; i. Commissionerates/Directorates under Central ii. Black Money (Undisclosed Foreign Income & Board of Indirect Taxes and Customs; Assets) Imposition of Tax Act, 2015 ii. Commissionerates/Directorates under Central iii. Benami Transactions (Prohibition) Act, 1988; Board of Direct Taxes; iv. Chapter-VII of Finance (No.2) Act, 2004 (Relating iii. Central Economic Intelligence Bureau; to Levy of Securities Transactions Tax) iv. Directorate of Enforcement; v. Central Excise Act, 1944 and related matters; v. Central Bureau of Narcotics; vi. Customs Act, 1962 and related matters; vi. Chief Controller of Factories; vii. Central Sales Tax Act, 1956; vii. Appellate Tribunal under SAFEMA; viii. Custom Tariff Act, 1975 viii. Income Tax Settlement Commission; ix. Central Excise Tariff Act 1985 ix. Customs and Central Excise Settlement Commission; x. Narcotic Drugs and Psychotropic Substances x. Customs, Excise and Service Tax Appellate Act, 1985; Tribunal; xi. Prevention of Illicit Traffic in Narcotic Drugs and xi. Authority for Advance Rulings (for Income Tax Psychotropic Substances Act, 1988; and Central Excise, Customs & Service Tax); xii. Smugglers and Foreign Exchange Manipulators xii. National Committee for Promotion of Social and (Forfeiture of Property) Act, 1976; Economic Welfare; 105Annual Report 2021-2022 xiii. Competent Authorities appointed under xv. Adjudicating Authority under Prevention of Money Smugglers and Foreign Exchange Manipulators Laundering Act. (Forfeiture of Property) Act, 1976 & Narcotic xvi. Revision Application Unit. Drugs and Psychotropic Substances Act, 1985; 1.4 A comparison of the collection of Direct and xiv. Financial Intelligence Unit, India (FIU-IND); Indirect taxes for the period of F.Y. 2020-21 and F.Y. 2021- 22 (provisional) is as follows: Amount collected 2021-22 S. No. Nature of Taxes 2020-21 (Provisional) (Up to Nov. 2021) 1. Corporate Income Tax 4,57,050.27 3,49,911.67 2. Personal Income Tax (excluding STT & WT) 4,69,328.78 3,38,652.74 3. Other Direct Taxes (WT, STT, etc.) 19,000.02 17,578.99 4. Total Direct Taxes (1+2+3) 9,45,379.07 7,06,143.40 5. GST (CGST, IGST & Comp. Cess) 5,48,777 4,51,328 6. Non-GST (Customs, Central Excise & Service [Tax Arrears]) 5,26,032 4,07,608 7. Total Indirect Taxes (5+6) 10,74,809 8,58,936 Note: Total may vary on account of rounding off 1.5 The details of representation of SCs, STs and d) Principal Directorate General of Income Tax OBCs are at Annexure-I. (Human Resource Development) 1.6 The details of representation of persons with e) Principal Directorate General of Income Tax disabilities are at Annexure-II. (Vigilance) 1.7 The details of ATNs in respect of audit f) Principal Directorate General of Income Tax observations are at Annexure-III. (Legal & Research) 1.8 An Organisation Chart of Department of Revenue Income Tax Department is the subordinate is given at Annexure-IV. organization of the CBDT having jurisdiction across the country. It is divided into 18 regions headed by Principal 2. Central Board of Direct Taxes Chief Commissioners of Income Tax, who are entrusted with the supervision and collection of direct taxes and 2.1 Organization and functions taxpayer services. The Directors General of Income Tax (Investigation) supervise the investigation functions and The Central Board of Direct Taxes (CBDT), created by deal with tax evasion and unearthing unaccounted the Central Boards of Revenue Act 1963, is the apex income. The Director General of Income Tax (Intelligence body entrusted with the responsibility of administering and Criminal Investigation) supervises the intelligence direct tax laws in India. The CBDT consists of a Chairman gathering and investigation in tax related crimes. The and six Members and is assisted by the following Principal Chief Commissioner of Income Tax Directorates: (Exemptions) supervises the work related to exemption a) Principal Directorate General of Income Tax and non-profit organizations/ trusts across the country (Administration & Tax Payer Services) and the Principal Chief Commissioner of Income Tax (International Taxation) supervises the work in the field b) Principal Directorate General of Income Tax of International Tax and Transfer Pricing. (Systems) The Principal Chief Commissioners of Income c) Principal Directorate General of Income Tax (Training) Tax are assisted by Chief Commissioners, Principal 106Department of Revenue III Commissioners and Commissioners of Income Tax and taxpayers due to the COVID-19 pandemic. Intensive Principal Directors General/ Directors General of Income information and awareness campaigns were launched Tax are assisted by Principal Directors/ Additional via the Twitter handle to broadcast the broad set of Directors General of Income Tax within their jurisdictions. measures rolled out by the Government in the form of Commissioners of Income Tax posted as Commissioners substantially easing the compliances and enhancing the liquidity in the hands of the taxpayers. The Twitter handle of Income Tax (Appeals) perform appellate functions and was also effectively used for campaigns spreading adjudication of disputes. awareness about the systemic reforms like Faceless 2.2 Media Centre, (M&TP) Assessment, Faceless Appeal, Faceless Penalty etc. Going beyond mere spreading awareness, the feedback The Commissioner of Income Tax (CIT)(M&TP), CBDT voiced by the stakeholders on the Twitter platform is in-charge of the Media Centre, set up in the CBDT in regarding various schemes was also expeditiously shared August 2006. The Media Centre disseminates information with the respective verticals within the Department. of public value relating to Direct Taxes through the Print For amplifying the Department’s presence & and Electronic Media. During the year, various press messaging on Twitter, twitter handles have also been releases were issued to bring important decisions, created by the regional offices of the Department at the developments and issues related to Direct Tax to the level of the respective Principal Chief Commissioners of public notice and to highlight different achievements of Income Tax. The 18 regional twitter handles operate in the CBDT and Income Tax Department. accordance with a detailed SOP to ensure adherence to the Government’s Social Media Policy and are used for Apart from the conventional means of outreach programmes at the local levels, thereby ensuring communication, the Department also utilizes social media the dissemination of information and awareness platforms to disseminate information to the public and campaigns to the last mile in the communication chain. also engage with it, especially through Twitter. The CBDT The Regional handles are using the Social Media platform twitter handle @IncomeTaxIndia is being managed by for showcasing the activities and programmes carried the Media Centre in CBDT. A Social Media policy has out by the field formations as part of celebration of Azadi been put in place and publicity campaigns through social Ka Amrit Mahotsav initiative. media platforms are being undertaken since 2015. In the first phase, the presence on Twitter was restricted to Apart from the above, the CIT(M&TP) and its dissemination of information of public value relating to office act as a coordinator between the field offices of CBDT and the CBDT, as also other Divisions of CBDT Direct Taxes. From FY 2019-20, however, in addition to and other Ministries in so far as issues pertaining to media the activity of dissemination of information and awareness are concerned. campaigns, the twitter handle started engaging directly with the taxpayers focusing on expeditious resolution of 2.3 Direct Tax Collection grievances and has more than 9,73,000 followers at present. CBDT instituted an Online Response and a) The net collection of direct taxes has increased Reputation Management System. As part of such from Rs.4,34,600.35 crores in Financial Year 2020-21 response management, the Department has been (upto 30.11.2020) to Rs.7,06,143.39 crores (provisional)* responding to the actionable tweets from taxpayers/ in Financial Year 2021-22 (upto 30.11.2021), i.e. a growth professionals since July 2019. The Twitter handle is being of 62.48% over the last Financial Year. The growth rate under Corporate Income Tax is 84.71% and growth rate used not only for dissemination & promotion of the content under Personal Income Tax** is 44.98%. In Financial of the Income Tax Department (ITD) to twitter users but Year 2021-22, about 63.73% of the Budget Estimate of also for response management and Online Reputation Rs.11,08,000 crores has been collected till 30.11.2021. Management at present. Thus, the speed and convenience afforded by the Twitter platform is being b) TDS collection for Financial Year 2021-22 (upto effectively used to complement the formal channels of 30.11.2021) is at Rs.4,38,854.40 crores showing growth of redressal for assisting the taxpayers and tax- 39.2% over last financial year for the corresponding period professionals, thereby expanding and strengthening the and constitutes 52.53% of the gross direct tax collection. e-Governance initiatives of the Department. c) During the Financial Year 2021-22 (upto The potential of the Social Media platform was 30.11.2021), collection under Advance Tax is fully utilized in extensive dissemination of the relief Rs.2,70,544.40 crores showing a growth of 63.4% over measures to mitigate the hardships faced by the the last financial year for the corresponding period and 107Annual Report 2021-2022 constitutes 32.38% of the gross direct tax collection. Limited (AIL) to Air India Assets Holding Limited (AIAHL) shall not be considered as ‘transfer’ for * Provisional (Source Pr.CCA, CBDT) the purposes of determining Capital Gains tax under the section 47 of the Act. ** Personal Income Tax includes STT Ï No tax liability shall arise from the said transfer 2.4 Some Recent Legislative Changes in Direct Tax under the head Income from Other Sources. Laws Ï No tax is to be deducted on transfer of immovable a. Tax incentives: property from AIL to AIAHL. i. Affordable Housing/Rental Housing Ï AIL shall not be considered as seller for the purpose of collecting tax under section 206C(1H) Keeping in view of the vision of ‘Housing for All’ and to of the Income-tax Act, 1961 (hereinafter ‘the Act’) promote affordable housing an additional deduction of for transfer of goods to AIAHL under a plan 1.5 lakh available for the purchase of an affordable house approved by the Central Government. has been extended for loans taken up till 31st March 2022 by the Finance Act, 2021. Further, to keep up the supply Ï AIAHL shall not be considered as buyer for of affordable houses, affordable housing projects tax deduction of tax under section 194Q of the Act holiday has been extended for projects approved till 31st for transfer of goods by AIL, to it under a plan March, 2022. Also, to promote supply of Affordable Rental approved by the Central Government. Housing for migrant workers 100% tax exemption will be available for notified Affordable Rental Housing Projects. Ï In addition to the above, through Press Release dated 10.09.2021 it has been announced that ii. Incentives for Start-ups provisions of section 79 of the Act shall not apply to an erstwhile Public sector undertaking which In order to incentivise start-ups in the country, the eligibility has become so as a result of strategic for claiming tax holiday for start-ups has been extended disinvestment, subject to conditions. for start-ups incorporated -till 31st March, 2022 by the Finance Act, 2021. Further, in order to incentivise funding v. Incentives for Sovereign Wealth Funds/ of the start-ups, the capital gains exemption for Pension Funds investment in start-ups has also been extended by one more year till 31st March, 2022. The threshold limit for In order to boost investment in infrastructure, Finance eligible start-ups was earlier raised to Rs 100 crores from Act, 2020 provided 100 % tax exemption to certain income Rs 25 crores. of Sovereign Wealth Funds (SWFs) and Pension Funds (PFs) arising from their investment in infrastructure in iii. International Financial Services Centre (IFSC) India. In order to ensure that a large number of such funds invest in India, Finance Act 2021 relaxed some of Various tax incentives have been provided for units the conditions relating to prohibition on private funding, located in International Financial Services Centre (IFSC) restriction on commercial activities, and direct investment in order to make it a hub for financial services in the world. in infrastructure. Since January 2021, 9 SWFs and 14 Further incentives have been provided in the Finance Act PFs have been notified to claim exemption under the said 2021, like tax holiday for capital gains for aircraft leasing clause. companies, tax exemption for aircraft lease rentals paid to foreign lessor, tax incentives for relocating foreign funds b. Ease of Compliance for Taxpayers into IFSC and allowing tax exemption for the investment division of foreign banks located in IFSC. i. No ITR for specified senior citizens: Through Finance Act, 2021, a new section 194P has been inserted iv. Strategic disinvestment of Air India to the Act to provide that in case of senior citizens of the age 75 years or above having only pension income and Finance Act, 2021 has amended the Act to interest income only from the account(s) maintained with facilitate the strategic disinvestment of Air India. It has a bank in which they receive such pension, then such been provided that: senior citizen shall not be required to file their ITRs. The  The transfer of capital assets from Air India specified bank shall be responsible for computing their 108Department of Revenue III total income and deducting tax thereon after giving effect vi. Launch of integrated e-filing & CPC 2.0 to various deductions allowable under chapter VI-A and project: With a view to provide a major fillip to e- rebate under section 87A of the Act. governance in the Income Tax Department, Integrated e-Filing & Centralised Processing Centre (CPC) 2.0 ii. Relaxation to NRIs: When Non-Resident Project has been launched, which is built upon the Indians return to India, they have issues with respect to success and learning from e-filing 1.0 & CPC 1.0 projects. their accrued incomes in their foreign retirement accounts The project which was approved by the Union Cabinet due to a mismatch in taxation periods. Finance Act, 2021 on 16/01/2019, employs new processes, state of the art has inserted specific section in the Act to provide relief to solutions and practices to radically transform and scale such taxpayers. up the e-governance capability and performance of the Income Tax Department in delivering taxpayer services. iii. Faceless Penalty- Faceless Penalty Scheme, The project envisions to redefine income tax filing and 2021 was launched to impart greater efficiency, processing in India to provide a best-in-class experience transparency and accountability to the procedure for to all taxpayers. imposition of penalty under Chapter XXI of the Act. The Scheme eliminates the interface between the income- As part of our commitment to provide improved taxpayer tax department and the taxpayers and provides for optimal services, the new Income Tax Portal utilisation of resources and a team-based mechanism www.incometax.gov.in was launched for better e- filing for imposition of penalty by one or more income-tax experience and faster processing of ITRs New facilities authorities with dynamic jurisdiction. The Scheme makes in the form of wizard based questionnaires and prefilled returns are being provided as help to the assessees. it possible for the taxpayers to submit replies and Constant monitoring for improvement of the present digital participate in the proceedings at their convenience. It also platforms is being done. Department has identified the provides for peer review of orders which will result in issues being faced by different stakeholders and the orders that are qualitatively better, reasonable and fair. Department has taken corrective measures through the service provider based on feedback from taxpayers and iv. Faceless ITAT: The Finance Act, 2021 has tax professionals. The first phase of the project for empowered the Central Government to notify a scheme Centralized Processing Centre 2.0 was commenced in for the purposes of disposal of appeals by the Appellate November 2020 and 6.27 Cr Income Tax Returns (ITRs) Tribunal so as to impart greater efficiency, transparency for AY 20-21 and 1.92 Cr ITRs for AY 21-22 have been and accountability by eliminating the interface between processed in the new system since then till 19th Nov 2021. the Appellate Tribunal and parties to the appeal in the The broad objectives of this project are listed as under: course of appellate proceedings to the extent technologically feasible, optimizing utilization of the a. Faster and accurate outcomes for taxpayer resources through economies of scale and functional specialization and introducing an appellate system with b. First time right approach dynamic jurisdiction. A National Faceless Income Tax c. Enhancing user experience at all stages Appellate Tribunal Centre shall be established for conduct of proceedings. All communication between the Tribunal d. Improving taxpayer awareness and education and the appellant shall be electronic. In case where through continuous engagement personal hearing is needed, it shall be done through e. Promoting voluntary tax compliance video-conferencing. f. Managing outstanding demand. v. Reduction in Time for Income Tax Proceedings: Finance Act, 2021 has reduced the time- The new income tax e-filing portal limit for re-opening of assessment to 3 years from the www.incometax.gov.in was launched as part of the earlier 6 years. Beyond the period of three years, only Integrated E-filing and Centralized Processing Centre 2.0 where there is books of account/documents/evidence of Project. Over 2.63 crore ITRs and nearly 30 lakh statutory concealment of income of 50 lakh or more in a year forms have been filed on the new portal till 19th Nov 2021. represented in the form of an asset, the assessment can The average daily filing of statutory forms has gone up be re-opened up to 10 years with the approval of the over 3 times from 9,055 in Sep to 31,963 since Oct till Principal Chief Commissioner of Income Tax. 19th Nov 2021. 109Annual Report 2021-2022 a. Over 17.25 crore unique logins have been done l. Over 39.36 Lakh Bank accounts have been by taxpayers till 19th Nov, 2021. validated and over 22.74 Lakh Bank Accounts have been enabled for E-verification. Refund re- b. Over 24.77 lakh new registrations have been issue requests have been submitted by 92,091 done and over 69.99 Lakh taxpayers have availed taxpayers and 1.21 Lakh taxpayers have of the forgot password facility to obtain their responded to outstanding tax demand. passwords till 19th Nov, 2021. vii. Taxpayers’ Charter: The Hon’ble Prime Minister c. Income Tax Return (ITR) filing has increased to has launched a ‘Taxpayers’ Charter’. The Charter 2.63 crore ITRs for AY 2020-21. 61% of these reflects certain principal commitments of the are ITR1 (1.59 crore), 8% is ITR2 (20.65 LAKH), Income Tax Department towards the taxpayer. 8% is ITR3 (21.14 lakh), 23% are ITR4 (60.08 The taxpayers’ charter has been adopted by the LAKH), ITR5 (1.46 lakh), ITR6 (0.51 lakh) and CBDT as per the provisions of section 119A of ITR7 (0.08 lakh). the Act. With its adoption, India joins other major economies in the world like USA, UK, Canada d. Over 54% of these ITRs are filed using the online and Australia which too have adopted and ITR form on the portal and the balance are published Charter as a gesture of their uploaded using the ITR created from the offline commitment towards their taxpayers. software utilities. Taxpayers’ Charter has a statutory mandate of e. Nearly 2.31 crore ITRs have been verified till 19th the Act which has been implemented by the Nov, 2021 for AY 21-22. Of this 1.99 crore were department w.e.f. 13-08-2020 and now it replaces e-verified using Aadhar OTP. the erstwhile Citizen Charter. It contains all the key service deliverables which were enshrined f. Over 1.91 crore ITRs 1,2 & 4 for AY 21-22 have in the erstwhile Citizen Charter. already been processed and 74.90 lakh refunds have been issued, out of the 2.31 Cr ITRs that Consequent upon implementation of Taxpayers’ have been verified by taxpayers for AY 21-22. Charter, Nodal Taxpayers’ Charter Cells have also been created at each of the 18 Regions/ g. In Faceless Assessments, Appeals, Penalty Zones under Pr. CCsIT. These Tax Payers proceedings 15.05 Lakh notices have been Charter Cells have been mandated to act as the posted on the portal, of which responses have access point to taxpayers at field level for been received in 7.96 Lakh cases. ensuring compliance of the commitments h. Over 0.81 Lakh ITRs have been filed by specified in the Taxpayers’ Charter. The taxpayers for various prior years in response to Directorate of Taxpayer Services (TPS)-1 has Notices under 148, 153A/C of the Act. been designated as a Nodal Office of CBDT for overall monitoring and reporting of Taxpayers’ i. Nearly 30 Lakh Statutory forms have been Charter Cells. At initial phase 16 key service submitted including 14.84 Lakh TDS statements, deliverables have been identified under the Tax 1.47 Lakh Form 10A for registration of Trusts/ Payers’ Charter for compliance by the field institutions, 2.83 Lakh Form 10E for arrears of authorities. salary, 6.19 Lakh 15CA and 1.36 Lakh 15CB for foreign remittance, 5,435 3CA-CD, 56,598 3CB- viii. Pre-filling of Income-tax Returns: In order to CD, 46,084 Form 35 for Appeal, 34,731 DTVSV make tax compliance more convenient, pre-filled Form4 till 19th Nov 2021. Income tax Returns (ITR) have been provided to individual taxpayers. The ITR form now contains j. Over 27.52 Lakh new E-PAN have been allotted pre-filled details of certain incomes such as salary and 82.36 Lakh taxpayers have linked their PAN income. The scope of information for pre-filing is with Aadhaar online on the portal. being further expanded by including information such as interest, dividend and capital gains etc. k. The digital signature registration (DSC), registration of non-residents has been enabled ix. Reduction in Compliance: A comprehensive and overall 6.75 Lakh DSCs have been registered. study of Income-tax Act and rules had been 110Department of Revenue III undertaken to identify those compliance which could be made up to 30th September, 2021. As can be reduced. Out of total 271 compliances on 30.11.2021 a total of 1,31,973 declarations which belong to Income-tax Act, 74 compliances have been received under the scheme covering have already been reduced. However, out of tax arrears of Rs.99,677 crores. remaining 197 compliances, 152 are already online and 45 are offline. Out of these 45 offline ii. Setting up of Dispute Resolution Committee: compliances, 42 compliances will be made online Through Finance Act, 2021, a special mechanism by next year. 3 compliances will need to be for dispute resolution is being set up in order to manual due to the non-availability of the PAN in reduce the disputes particularly for the small and certain cases. Further efforts are continuously medium taxpayers having taxable income of upto being made to provide online facilities to the Rs.50 lakh and any disputed income of Rs.10 taxpayers for ease of compliances. Recently a lakh can approach this committee under section utility was released where taxpayers can check 245MA of the Act. It will prevent new disputes in quick time from PAN of their clients, if the client and settle the issue at initial stage. has filed return of income and therefore no extra iii. Retrospective part of 2012 amendment tax to be deducted. nullified: In order to reduce litigation, attract x. Relief to Small Trusts: To reduce compliance investment and bring certainty in tax policy, the on small charitable trusts running educational retrospective part of the amendment made by institutions and hospitals relief by way of tax Finance Act, 2012 regarding taxation of indirect exemption to such trusts has been provided by transfer of assets located in India has been the Finance Act, 2021 by increasing the existing nullified by the Taxation Laws (Amendment) Act, threshold of annual receipts from Rs.1 crores to 2021 so as to provide that no tax demand shall Rs.5 crores. be raised in future on the basis of the said retrospective amendment for any indirect transfer xi. Removing the requirement of digital of Indian assets if the transaction was undertaken signature and e-verification to ease before 28th May, 2012 (i.e. the date on which the compliance in filing documents: Government Finance Bill, 2012 received the assent of the has clarified that E-verification and digital President). It has been further provided that the signature is not needed if documents are filed demand raised for indirect transfer of Indian through e-filing account in faceless assessment assets made before 28th May, 2012 shall be proceedings. nullified on fulfilment of certain conditions such as furnishing of undertaking for withdrawal of c. Reduction in Litigation pending litigation and furnishing of an undertaking i. Vivad se Vishwas: In the current times, a large to the effect that no claim for cost, damages, number of disputes related to direct taxes are interest, etc, shall be filed. The refund arising on pending at various levels of adjudication from the amount paid in these cases shall be made Commissioner (Appeals) level to Supreme Court. without any interest thereon. These tax disputes consume a large part of resources both on the part of Government as well iv. Window for settlement of cases: In order to as taxpayers and also deprive the Government end litigation in the form of writs in various High of the timely collection of revenue. With these Courts, the Government has allowed filing facts in mind, an urgent need was felt to provide settlement application to eligible taxpayers till 30th for resolution of pending tax disputes which will September 2021. not only benefit the Government by generating v. Vide CBDT Circular No.17 of 2019 dated timely revenue but also the taxpayers as it will 08.08.2019, Monetary limit of filing department bring to close mounting litigation costs and efforts appeal to ITAT/High Court/Supreme Court were can be better utilized for expanding business activities. Direct Tax Vivad se Vishwas Act, 2020 significantly enhanced to tax effect of Rs.50 was enacted under which the declarations for lakhs, Rs.1 Crore and Rs.2 Crore respectively settling disputes could be filed up to 31st March, from earlier limits of Rs.20 lakhs, Rs.50 lakhs 2021 and payment without additional amount and Rs.1 Crore respectively. 111Annual Report 2021-2022 d. Measures undertaken to promote digital attracting penal provisions of the Income-tax Act. transactions: Through the Finance Act, 2021, Further, in order to provide relief to the family the monetary threshold for getting books of members of taxpayers who have lost their lives accounts audited has been increased to Rs.10 due to Covid-19, the Government has decided crores in case of businesses whose total turnover that income-tax exemption shall be provided to or gross receipts made in cash does not exceed ex-gratia payment received by family members 5% of the total turnover or gross receipts and of a person from the employer of such person or the total expenditure including purchases made from other person on the death of the person on in cash does not exceed 5% of the total account of Covid-19 during FY 2019-20 and expenditure during the previous year. subsequent years. The exemption shall be e. Measures undertaken to curb Tax Evasion & allowed without any limit for the amount received widening of tax-base from the employer and the exemption shall be limited to Rs.10 lakh in aggregate for the amount Expansion of scope of TDS/TCS: For widening received from any other persons. the net of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) several new ii. Various other relief measures have been transactions were brought into its ambit. These provided on account of Covid-19, which are transactions include huge cash withdrawal, as under: foreign remittance, purchase of luxury car, e- (i) The tax deduction rates for specified payments commerce participants, sale of goods, acquisition and tax collection rates for specified transactions of immovable property, etc. Further, in order to was reduced by 25% during the period promote furnishing of income-tax returns, a 14.05.2020 up to 31.03.2021. The measure was special provision has been inserted in the Income undertaken to provide additional disposable Tax Act, 1961 to deduct/collect tax at higher rates in case of certain persons who have not filed their income in the hands of the taxpayers. income tax return for both of the preceding two (ii) In order to give a boost to the real estate sector, previous years and the tax deducted/collected through the Finance Act, 2021, the safe harbour was greater than Rs.50,000 in each of the two limit in case of first- time residential unit buyer years. Further, TDS at the rate of 0.1% on was increased from existing 10% to 20% till 30 payment made for purchase of goods by a buyer June 2021. This is expected to benefit home- (having sales/ turnover of Rs.10 crore or more buyers where the circle rate is higher than the in the financial year preceding the year in which market value of the property. the sale is made) to a person during the financial year exceeding Rs.50 lakh has also been (iii) In order to boost consumption, the benefit given introduced by the Finance Act, 2021. to an employee in lieu of LTC on account of expenditure incurred by the individual or a f. Relief Measures on account of COVID-19 member of his family during the specified period pandemic (12th October 2020 to 31st March 2021) on i. Tax exemption for medical treatment and goods or services which are liable to tax at an ex gratia payment on account of Covid: It has aggregate rate of twelve per cent or above under been announced to provide Income-tax various GST laws was provided tax exemption exemption to the amount received by a taxpayer subject to fulfilment of prescribed conditions. for medical treatment from an employer or from any person for treatment of COVID-19 during (iv) Time limits for various compliances by the financial year 2019-20 and subsequent years. taxpayers have been extended such as furnishing The aim of this exemption is to provide relief to of statement of Deduction of Tax for the last taxpayers who suffered on account of COVID- quarter of the Financial Year 2020-21, Certificate 19 and had to incur sum for medical treatment of Tax Deducted at Source in Form No.16, of COVID-19 after taking help from employer or application for registration by the charitable any person. Government also allowed incurring institutions, due dates for investment to claim of Covid medical expenditure in cash without capital gains exemption in Section 54 to 54GB 112Department of Revenue III of the Act, Quarterly Statement in Form No. partners have notified their tax treaty with India 15CC, filing of country by country reports etc. in their respective MLI positions. As a result, the MLI has modified/is expected to modify 63 tax (v) Time limits for passing different orders under treaties. various sections of Income-tax Act were extended due to COVID-19 pandemic. iii. India, as a member of Inclusive Framework on BEPS, is committed to implement the minimum (vi) Last date of linking of Aadhaar with PAN has been standard under BEPS Action 6 and BEPS Action extended to 31st March, 2022. 14. The minimum standards are to be met in respect of Double Taxation Avoidance (vii) Last date of payments of tax (without extra Agreements (DTAAs) with Inclusive Framework amount) under Vivad se Vishwas was extended countries. Implementation of minimum standards to 30th September, 2021 and with additional tax under these BEPS actions will be subject to a upto 31.10.2021. peer review process by OECD as well. Minimum standards under both Action 6 and 14 can be (viii) Last date of filing income-tax returns have been met through MLI if the treaty partner has also extended to 31st December 2021 (for non- signed and ratified the MLI and the respective company, non-auditable and non-transfer pricing DTAA is notified by both partners as Covered Tax cases), to 15th February 2022 (for company and Agreement (CTA). For some treaties, where the auditable cases) and to 28th February 2022 (for treaty partner has not signed the MLI or not transfer pricing cases). Due date of filing tax audit notified its treaty with India, bilateral negotiations report has been extended to 15th Jan 2022 and have been initiated with treaty partners to amend for TP report to 31st January 2022. the concerned tax treaties in order to make them 2.5 Foreign Tax and Tax Research Division compliant with the minimum standards. India also participated in the 3rd meeting of the Conference I. Negotiation of Tax Treaties - Multilateral of the Parties to the MLI on 23rd April, 2021 and Instrument (MLI), Double Taxation Avoidance has been elected as a member of the Steering Agreements (DTAAs) and Amending Group to the Conference of the Parties. Protocols: iv. Besides, steps have been taken for bilateral i. India has actively participated in the Base Erosion revision of existing treaties to make it more & Profit Shifting (BEPS) project of OECD/G-20 relevant & updated by incorporating the and endorsed the outcomes of the BEPS project, provisions which will align the existing DTAAs which were in the form of 15 action points for with the present international standards and the addressing tax avoidance by Multinational positions taken by India under MLI. Enterprises. Under BEPS Action 15, the BEPS outcomes and minimum standards that all v. DTAAs are an important area of bilateral countries have agreed to, are being implemented cooperation to prevent double taxation and by the signing of the Multilateral Convention for enhance economic cooperation between Implementation of Tax Treaty Related Measures countries, without creating opportunities for tax to Prevent Base Erosion and Profit Shifting, also avoidance or evasion. The key developments called as Multilateral Instrument (MLI). pertaining to DTAAs during FY 2021-22 are as follows: ii. Upon ratification on 25.06.2019, the provisions of the MLI were notified vide Gazette Notification  The Protocol amending the Agreement between S.O.2887(E), dated 9th August, 2019. The MLI India and Iran DTAA was signed on 17th entered into force in India from 01st October 2019. February, 2018 and has entered into force on India had notified 93 tax treaties in its final MLI 29th September, 2020 and has been notified in Position. With this India has taken necessary the Official Gazette on 1st April, 2021. steps to make all of its 95 treaties compliant with the BEPS minimum standards on treaty abuse  India has successfully negotiated and signed a (BEPS Action 6) and dispute resolution (BEPS DTAA with Chile (all procedures completed in India Action 14). As on 10th September 2021, 63 treaty and awaiting response from the Chilean side). 113Annual Report 2021-2022  India is in the process of finalising an amending international tax related issues at G-20 in all its Protocol with Brazil. meetings at the level of Leaders (represented by Hon’ble PM), Finance Ministers, Central Bank  The Cabinet has approved the signing of the Governors and Deputies. In recent times, Agreement for the Exchange of Information and International Tax issues have featured Assistance in Collection with Respect to Taxes prominently in the G20 Agenda. (AEI&ACT) between the Government of India and the St. Vincent and the Grenadines on 23.6.2021. Following the Third Finance Ministers and Central Coordination with MEA and the Saint Vincent and Bank Governors Meeting, at Venice on July 10, the Grenadines authorities is underway for 2021, the communique made reference to the signing of the Agreement. work done on the issues in the area of international tax. The relevant paragraph stated  Negotiations were held with Germany, France that: and Netherlands to revise and update the existing “After many years of discussions and building treaties. on the progress made last year, we have  Negotiations were held with Azerbaijan to finalise achieved a historic agreement on a more stable a DTAA. and fairer international tax architecture. We endorse the key components of the two pillars II. Role of Tax Treaties in Prevention of Fiscal on the reallocation of profits of multinational Evasion and Tackling of the Menace of Black enterprises and an effective global minimum tax Money as set out in the “Statement on a two-pillar solution to address the tax challenges arising i. Double Taxation Avoidance Agreements from the digitalisation of the economy” released (DTAAs),Tax Information Exchange by the OECD/G20 Inclusive Framework on Base Agreements(TIEAs), Multilateral Convention on Erosion and Profit Shifting (BEPS) on July 1. We Mutual Administrative Assistance In Tax Matters call on the OECD/G20 Inclusive Framework on (Multilateral Convention) and SAARC Multilateral BEPS to swiftly address the remaining issues and Agreement, create a legal obligation on a bilateral finalise the design elements within the agreed basis to exchange information in connection with framework together with a detailed plan for the administration of domestic laws concerning implementation of the two pillars by our next taxes. meeting in October. We invite all members of the OECD/G20 Inclusive Framework on BEPS that ii. The following steps have been taken in the recent have not yet joined the international agreement past for effectively utilizing the above mechanism to do so. We welcome the consultation process of Exchange of Information: with developing countries on assessing progress a) The Central Action Plan issued by the Central made through their participation at the OECD/ Board of Direct Taxes (CBDT), read with Manual G20 Inclusive Framework on BEPS and look on Exchange of Information, explains the process forward to the Organisation for Economic Co- and emphasizes the need to make exchange of operation and Development (OECD) report in information references seeking information under October.” the tax treaties. The Central Action Plan also Subsequently in the 4th G-20 Finance Ministers mandates that every Pr. CIT charge will organize and Central Bank Governors meeting held training and sensitization programme for making virtually in Washington DC on the October 13, proper references under tax treaties. 2021, the July agreement and the work towards b) Regular virtual meetings have been held with a more stable and fair international tax system various treaty partners to expedite the process was again acknowledged as under: of receiving information through tax treaties. “After the historic agreement reached in July on III. Tax Issues in G20 the key components of the two pillars on the reallocation of profits of multinational enterprises India is a leading contributor to the discourse on and an effective global minimum tax, we endorse 114Department of Revenue III the final political agreement as set out in the participation in the OECD/G20 Inclusive Statement on a two-pillar solution to address the Framework on BEPS and possible areas where tax challenges arising from the digitalisation of domestic resource mobilisation efforts could be the economy and in the Detailed Implementation further supported.” Plan, released by the OECD/G20 Inclusive IV. BEPS Inclusive Framework Framework on Base Erosion and Profit Shifting (BEPS) on 8 October. This agreement will i. In Ankara in September 2015, the OECD was establish a more stable and fairer international mandated by the G20 Finance Ministers to build tax system. We call on the OECD/G20 Inclusive an inclusive framework for implementation and Framework on BEPS to swiftly develop the model to report to them by early 2016. The architecture rules and multilateral instruments as indicated in for the inclusive framework was agreed by G20 and according to the timetable provided in the Finance Ministers in 2016. The G20 Finance Detailed Implementation Plan, with a view to Ministers also encouraged all relevant and ensure that the new rules will come into effect at interested jurisdictions to join the new inclusive global level in 2023. We welcome the framework on an equal footing. The work of Organisation for Economic Co-operation and Inclusive Framework includes consideration of Development (OECD) report on Tax and Fiscal the manner in which non-OECD countries will Policies after the COVID-19 Crisis. We note the consider themselves committed to the agreed OECD report on Developing Countries and the rules and their implementation. India continues OECD/G20 Inclusive Framework on BEPS to contribute to this important phase of the BEPS identifying developing countries’ progress made Project. through their participation in the OECD/G20 Inclusive Framework on BEPS and possible ii. As of November, 2021, a total of 141 members areas where domestic resource mobilisation have joined the Inclusive Framework, whose efforts could be further supported. We look mandate is, inter alia, to: forward to further discussing, on a regular basis, the initiatives undertaken to follow up the a. Review the implementation of the four BEPS recommendations included in the report.” minimum standards; The G-20 leaders in the Rome Summit from 30th b. Gather data for the monitoring of the other -31st October, 2021 endorsed the work done in aspects of implementation, including under BEPS the finance track. The relevant part of the Action 1 (on the tax challenges of the digital statement is as below: economy) and Action 11 (on measuring and monitoring BEPS); “The final political agreement as set out in the Statement on a Two Pillar Solution to Address c. Finalize the remaining technical work to address the Tax Challenges Arising from the Digitalisation BEPS challenges; and of the Economy and in the Detailed Implementation Plan, released by the OECD/G20 d. Support jurisdictions in their implementation of Inclusive Framework on Base Erosion and Profit the BEPS package, including by providing further Shifting (BEPS) on 8 October, is a historic guidance on the standards and by developing achievement through which we will establish a toolkits for low income countries. more stable and fairer international tax system. e. The Steering Group of the Inclusive Framework We call on the OECD/G20 Inclusive Framework (IF) comprises of members from 24 countries. on BEPS to swiftly develop the model rules and India has a representation in the Steering Group multilateral instruments as agreed in the Detailed of the Inclusive Framework. India strongly Implementation Plan, with a view to ensure that supports the inclusive approach of the framework the new rules will come into effect at global level to monitor and review the success of in 2023. We note the OECD report on Developing implementation of the BEPS recommendations Countries and the OECD/G20 Inclusive and collaborates with all the G-20, developing countries and international organizations to Framework on BEPS identifying developing ensure that there is a level playing field amongst countries’ progress made through their various economies. 115Annual Report 2021-2022 f. India has played an active role in the Inclusive V. Automatic Exchange of Information (AEOI) Framework and supported positive initiatives On the request of the G20, the OECD, working keeping in mind concerns of developing nations. with all non-OECD G20 countries, including India, developed a single uniform standard for g. The major work being undertaken by the Inclusive Automatic Exchange of Information (AEOI), the Framework this year is with respect to taxation Common Reporting Standard (CRS) on AEOI. of the Digital Economy. The OECD/G20 Inclusive This new global standard was endorsed by the Framework on BEPS released a joint statement G20 Finance Ministers in their meeting in Cairns on 21.09.2014 and by the G20 Leaders in their on tax challenges arising from the Digitalisation summit at Brisbane on 16.11.2014. In keeping of Economy on 1st July, 2021. India joined the with its leadership role in this area, India also Statement and continued to engage with the joined a group of 49 countries as “early adopters” members of the IF. Subsequently, after further of the new standard and commenced exchange of information in 2017. As on date, 42 developing discussions, a Joint Statement was finalised by countries are yet to set the date for first the the members of the IF on 8th October, 2021. 137 automatic exchange of financial account out of the 141 members have joined the information. The current status of commitment Statement, including India. for AEOI is tabulated below: 116Department of Revenue III For implementation of AEOI under CRS, as on VII. India’s Association with OECD 12th Aug 2021, 112 countries/jurisdictions have OECD is an organization of 38-member joined the Multilateral Competent Authority countries, who are signatories to the Convention Agreement (“MCAA”), which provides a on the Organization for Economic Co-operation framework for exchange of information on and Development. Tax issues have always been automatic basis. After joining the framework of an important part of OECD’s overall activities and the MCAA, as above, countries/jurisdictions need are undertaken by the Committee on Fiscal to enter into bilateral/multilateral arrangements Affairs (CFA) and its subsidiary bodies. These for exchanging information subject to subsidiary bodies carry out the work on a number confidentiality and data safeguards requirements of different topics, including development of the in the recipient country/jurisdiction. India signed Model Tax Convention (Working Party 1), Tax MCAA on 3rd June 2015. Policy and Statistics (Working Party 2), Transfer Pricing (Working Party 6), Consumption Taxes As committed by India, the first exchanges have (Working Party 9), Exchange of Information taken place in September 2017 and the same is (Working Party 10) and Aggressive Tax Planning reflected in the AEOI Report of the Global Forum. (Working Party 11). India has automatically exchanged information for the calendar years 2016, 2017, 2018, 2019 In addition, the CFA has established a number and 2020 on reciprocal basis with jurisdictions of other subsidiary bodies such as the Forum on Tax Administration, the Forum on Harmful Tax with whom AEOI has been activated. During this practices, the Task Force on Tax Crime and Other year, despite the continued COVID-19 pandemic Crimes, the Task Force on the Digital Economy related hiccups, India fulfilled its international and the Task Force on Tax and Development. obligations by transmitting AEOI information for The Centre for Tax Policy and Administration the Calendar Year 2020 to its various exchange (CTPA) acts as the Secretariat to the CFA and partners within the stipulated timelines. its subsidiary bodies and provides technical expertise and support to the CFA. VI. Inter-Governmental Agreement (IGA) with USA for purposes of FATCA The Indian delegates have been participating actively in the meetings of Working Parties and India entered into Inter-Governmental Agreement Task Force considering the prominent role of (IGA) with USA under the Foreign Account Tax OECD in development of international standards Compliance Act (FATCA) on 9th July 2015. This in the areas of international taxation, transfer obligates the Indian financial institutions to pricing and exchange of information. provide financial account information pertaining to US residents to Indian tax authorities, which Some of the areas of OECD’s work related to is then transmitted to USA automatically. taxation in which India was actively associated Similarly, under the IGA, the financial institutions this year are summarized below: of USA provide financial account information (a) OECD Global Relations Training Programme about Indian residents to USA tax authorities, (GRTP) which is transmitted to India automatically. Reporting of information under the IGA with USA India has been nominating officers to the OECD began from 30th September, 2015 and GRTP every year, which has been an important information pertaining to the calendar year 2014, tool for capacity building of our officers. During 2015, 2016, 2017, 2018, 2019 and 2020 has the year, due to the Covid-19 pandemic, the face- already been exchanged between the two to-face training programmes were cancelled. countries. During this year, despite the continued Various courses were, however, held through the COVID-19 pandemic related hiccups, India Knowledge Sharing Platform (KSP) of OECD and fulfilled its obligations by transmitting information were conducted virtually. Many participants from for the Calendar Year 2020 to the USA within the India enrolled directly on the courses conducted stipulated timelines. on various topics such as tax treaties, transfer 117Annual Report 2021-2022 pricing, BEPS action points, exchange of WP-1 has brought out multiple updates to the information, etc. Model Tax Convention latest being 2017 update which was released on 18th December, 2017. (b) Forum on Harmful Tax Practices (FHTP) Being an active participant to this forum, India has protected its source based taxation rights by Forum on Harmful Tax Practices (FHTP) was successfully incorporating its consistent established following the publication of OECD’s positions, wherever required, under various 1998 report on “Harmful Tax Competition: An articles in the recently released 2017 update to Emerging Global Issue” to identify those the OECD Model Tax Convention. India’s preferential tax regimes that have harmful effects. reservation to the Articles and commentary are Main work of FHTP is to review preferential tax recorded under the Chapter “Non-OECD regimes of member countries and to make Economies’ positions on the OECD Model Tax recommendations to remove features that create Convention”. harmful effect or to abolish the regime. India has been regularly participating in the FHTP is presently undertaking work under Action deliberations of WP-1 and contributing to working 5 of Base Erosion and Profit Shifting (BEPS) on issues related to tax treaties, model tax Action Plan. Under Action Item 5 of BEPS Action conventions and their commentaries, including Plan, FHTP is required to deliver three outputs all emerging issues requiring amendment to the (i) Finalisation of review of member/associate model tax conventions and their commentaries. county regimes; (ii) A strategy to expand The work area of WP-1 also includes follow-up participation to non-OECD member countries; (iii) work undertaken in respect of Action 6 Revision of existing criteria. (Preventing Treaty Abuse), Action 7 (Preventing Artificial Avoidance of PE status) and Action 14 During 2021, India’s transparency framework (Making dispute Resolution More Efficient) of the under Action 5 of the Base Erosion and Profit BEPS project, as identified in the final reports of Shifting was reviewed positively. these actions, which have already been endorsed by OECD and G-20 Countries including India. (c) Exchange of Information with No or Nominal Tax Jurisdictions (NNTJ) In view of the ongoing work on taxation of digital economy, WP1 has also been tasked with NNTJs are now required to spontaneously carrying forward the work on building the exchange information on the activities of certain consensus solution for addressing the tax resident entities with the jurisdiction(s) in which challenges arising from digitalization of the the immediate parent, the ultimate parent and/or economy especially in respect of Subject to Tax the beneficial owners are resident. A Standard Rule and taxation of Extractives. Operating Procedure (SOP) is being formulated on the use of the information, in consultation with (e) OECD’s Working Party 2 various stakeholders. India has started receiving information under the Standard in 2021. (i) Working Party No.2 (WP2) of OECD provides an opportunity to convey India’s views on (d) OECD’s Working Party 1 important subjects of tax policy. BEPS Action Point 11 has finalised report titled “Measuring and The Working Party 1 on Tax Conventions and Monitoring BEPS”. It inter alia involves: Related Questions was created on 1st May 1971 with the mandate to act as a forum for the a) Establishing methodologies to collect and discussion of issues related to the negotiation, analyses data on BEPS and the actions to application and interpretation of tax conventions, address it: to examine proposals for the modification of the OECD Model Tax Convention and to draft b) Develop recommendations regarding indicators appropriate recommendations for dealing with of the scale and economic impact of BEPS and the issues it has examined and for periodic ensure that tools are available to monitor and updates to the Model Tax Convention. Since then evaluate the effectiveness and economic impact 118Department of Revenue III of the actions taken to address BEPS on an provided inputs in relation to the technical issues ongoing basis. in the architecture of the proposed Amount B determination model. (ii) WP2 is also the nodal body for conducting Economic Impact Assessment of Proposals (g) OECD’s Working Party 10 being considered for Tax challenges of The mandate of OECD Working Party 10 (WP digitalization of the economy. The FT&TR division 10) on Exchange of information and Tax has coordinated with the WP2 in this economic Compliance is to provide support for impact assessment, giving inputs wherever improvements in the legal, practical and necessary. The final report of economic impact administrative framework to facilitate exchange assessment was presented before the Inclusive of information and mutual administrative Framework in October, 2020 and has now been assistance between the countries with the view placed in public domain. to improving tax compliance and ensuring (f) OECD’s Working Party 6: protection of taxpayers’ rights. The mandate of working party no. 6 is to work The meetings of the WP 10 were held virtually on transfer pricing issues and to amend the this year and were attended by the Indian OECD Transfer Pricing Guidelines for delegates. The major work undertaken in WP 10 multinationals and tax administrations as this year was as follows: required. It is also entrusted with monitoring of  Model Rules for Reporting by Platform Operators the implementation of the OECD Transfer Pricing with respect to Sellers in the Sharing and Gig Guidelines. Further, Working Party 6 is closely Economy were finalized. Reporting Schems associated in determination of principles related changes were also discussed. regarding Amount B in the Pillar 1 solution proposed by the OECD on taxation of multi-  Discussion on development of exchange national enterprises. framework for Virtual assets and E-money products. Review of the Common Reporting In addition of the above, Working Party- 6 is also Standard for Automatic Exchange of Information. involved in implementation of Country-by-Country reporting package developed under Action point (h) OECD’s Working Party 11 13 of the BEPS project of the OECD. WP11 is entrusted with the responsibility of India has been regularly participating in the addressing the following BEPS Action Points deliberation of Working Party 6 and has regularly related to ‘Aggressive Tax Planning’ (ATP): put forth India’s view regarding the principles that may govern transfer pricing of various  Action Item No. 2 – Neutralize the effects of hybrid transactions within a multinational group mismatch arrangements; including in relation to the amendment of the OECD transfer pricing guidelines. Further, India  Action Item No. 3 – Strengthening Controlled has been a regular participant in the 2020 review Foreign Corporation (CFC) Rules; of the Country by Country (CbC) report that was  Action Item No. 4 – Limit Base Erosion via taken by the OECD to review the implementation Interest Deductions and other Financial of the CbC reporting framework and has provided payments; and inputs to modify the CbC report to make it more inclusive in respect of information required by the  Action Item No. 12 – Require taxpayers to developing countries. disclose their aggressive tax planning arrangements [Mandatory Disclosure Regime In addition to the above, as Working Party 6 has (MDR)]. also been tasked with determination of principles governing Amount B under the Pillar 1 solution, As part of the work being done for the consensus proposed by the OECD, India has participated in solution to address tax challenges posed by deliberation of the Working Party 6 and has digitalisation, Working Party 11 was called upon 119Annual Report 2021-2022 to advance the work on Pillar Two liaising with existing as well as new and emerging risks to other working parties as necessary. During the Transparency and Exchange of Information for year, WP-11 has worked on the highly technical Tax Purposes. India has provided an Expert for aspects of Pillar 2, including income inclusion the Task Force on Risk. During the year, rule(IIR), UTPR etc. These issues are of numerous meetings of the Steering Group were significance and relevance to both, the Indian tax held in which India participated actively. Meetings authorities as well as the Indian taxpayers that of the Peer Review Group and the AEOI Peer are part of an MNE groups. India has been keenly Review Group were also held to discuss and looking at the scope that is being chalked out by adopt peer review reports on the implementation WP-11 and has actively participated in the of the international standards on Exchange of meetings throughout the year so that India is able Information on Request (EOIR) and Automatic to take an appropriate position on addressing Exchange of Information (AEOI) of various remaining BEPS risks of profit shifting to entities jurisdictions. Various meetings of the Task Force subject to no or very low taxation. on Risk were also held during the year to discuss and finalize the methodology to be followed for (i) Global Forum the work of the Task Force and risk scenario The Global Forum is the leading international forms/inputs provided by the Global Forum body working on the implementation of global tax members as well as relevant inputs gathered by transparency and exchange of information the Global Forum Secretariat from other sources. standards around the world. Over the past 12 India also provided Expert Assessors for peer years, the Global Forum has achieved reviews of Russia, Portugal and Armenia. India considerable progress in implementing the also participated in various trainings/workshops international tax transparency and exchange of conducted by the Global Forum which include information standards. Currently, the Global India’s participation as a presenter in the Global Forum has 163 member jurisdictions which Forum’s 1st workshop on establishing and running include all G20 countries. Together they work on Exchange of Information (EOI) Units. an equal footing to put an end to offshore tax evasion. (j) Tax Inspectors without Borders (TIWB) India is an active member of the Global Forum India is an active participant as a Partner and holds leadership positions in its key bodies/ Administration in TIWB programme which is a governance structure. Presently, India is a joint initiative of UNDP and OECD. Currently, member of the Steering Group (20 countries) and India is providing its Tax Experts for the TIWB Vice Chair of the Peer Review Group (30 programmes with Eswatini, Sierra Leone, countries). India is also a member of the AEOI Seychelles and Bhutan as a Partner Peer Review Group (34 countries). India sends Administration in the field of transfer pricing and more than 1000 exchange of information international taxation. India is also providing its requests under tax treaties to various jurisdictions Tax Experts for TIWB-CI (Criminal Investigation) annually, inter alia, requesting information programmes with Uganda and Kenya in the field regarding undisclosed foreign assets/income of of tax crime investigations. Indian taxpayers. India is also exchanging financial account information with various VIII. Coordination with other Multilateral Agencies jurisdictions under automatic exchange of India is an Associate member of Centre for Inter information mechanism. The Global Forum has American Tax Administration (CIAT), a been a partner in this fight against black money multilateral organization. The efforts of CIAT are stashed abroad by its work on the implementation focused on cooperation between the tax of international standards on transparency and exchange of information for tax purposes. India’s administrations of different jurisdictions with a active engagement with the Global Forum helps view to work jointly against international tax in maintaining a mutually beneficial relationship. evasion. To fulfil this objective, CIAT organizes different activities, studies, workshops, seminars In FY 2020-21, the Global Forum set up a Task etc. wherein tax administrations can share their Force on Risk to identify, examine and analyse suggestions, practices, experiences etc. In 2021, 120Department of Revenue III India participated in the General Assembly administrations and of identifying innovative tax meeting held by CIAT virtually. India also administration practices to increase efficiency, participated in the meeting of the CIAT regarding effectiveness and fairness of tax administration ‘Tax Administration and COVID-19 crisis’. and reduce compliance burdens. Presently, the FTA consists of 53 OECD and non-OECD India has been an important member of countries including members of the G20. The Commonwealth Association of Tax work of the FTA is overseen by the FTA Bureau, Administrators (CATA) since 1979. CATA’s which comprises heads of revenue activities include organizing annual technical administrations of 14 of the member countries. workshops, high quality training programmes for India is member of the FTA Bureau and the tax officials, in country training programmes Revenue Secretary, being head of revenue administration in India, is FTA Commissioner tailored to meet specific needs of members, from India and represents India in the FTA publication of a quarterly newsletter, provision of Bureau. consultancy services and research facilities for members upon request, supply of information to Being a member of the FTA and its Bureau, India members, etc. is an active participant in the work programme of the FTA. IX. Cooperation with BRICS Countries on Tax Matters The work programme of the FTA is delivered by a range of collaborative networks, knowledge BRICS is an important multilateral block that sharing Communities of Interest (CoI) and a seeks to represent the interests of the developing number of time-limited projects and reports countries. The BRICS countries represent Asia, undertaken by smaller groups of tax Africa, Europe and Latin America and together administrations together with the FTA Secretariat. account for 30% of the global land, 43% of the All of these work streams operate under the global population and 21% of the world’s GDP. sponsorship of lead Commissioners. India has been actively participating in the FTA projects India has successfully hosted BRICS Tax Experts such as: and Tax heads meetings in 2021 when India held Chairship of BRICS. Under India’s leadership,  Effective taxation of platform sellers in sharing & the communiqué released after the meetings gig economy. committed BRICS nations to discuss  Effective use of information received under transformation of tax authorities so as to evolve Common Reporting Standard (CRS). the best practices that would enable us to grow together in the spirit of Cooperation for Continuity,  Online Cash registers. Consolidation and Consensus.  Expansion of Common Transmission System India, in association with CATA, have facilitated (CTS). successfully hosting of the ‘International Seminar on the Modern Techniques of Investigation and  Tax Debt Management. Intelligence Gathering’ at National Academy of  Joint International Task force on Shared Direct Tax (NADT), Nagpur in 2017, 2018 and Intelligence and Collaboration (JITSIC) etc. 2020 and currently in talks for organizing its 2021/ 22 edition. Under current work programme of the FTA, India is a member of project group for following X. India’s Collaboration with Forum on Tax projects: Administration (FTA)  Small and Medium sized Enterprises (SMEs): Forum on Tax Administration is a forum for co- improving tax compliance and reducing burdens. operation between revenue bodies and was created in July, 2002 at the initiative of Committee  BEPS Impacts and inputs. on Fiscal Affairs (CFA) of the OECD, with the aim of promoting dialogue between tax  Tax administration 2030. 121Annual Report 2021-2022 India has been regularly participating in these significant business presence in India. This calls projects through emails and virtual meetings and for a constant and deep engagement by the wherever required, comments/inputs are being Indian competent authority with the American sent to the FTA Secretariat from time to time. competent authority. India also has a number of Since 1st April, 2021, India has been regularly tax disputes with United Kingdom, Japan, China, participating in FTA Meetings virtually. The Netherlands, Canada, Switzerland, Australia, Meetings attended by India this year include 2 Denmark, Sweden, Finland, Germany, etc. Both the Joint Secretaries in the Foreign Tax and Tax FTA Bureau Meetings in May and October, 2021, Research (FT & TR) Division of CBDT (JS, FT & Meeting of the FTA Community of Interest on TR-I and JS, FT & TR-II) are the two Indian Small and Medium Enterprises. FTA Meeting on competent authorities. While JS, FT & TR-I is Tax Administration 3.0, FTA Deputies Meeting the competent authority for North American and prior to the FTA Bureau Meeting, FTA Meeting European countries, JS, FT & TR-II is the on Assistance to Vietnam on introduction of a competent authority for the rest of the world. Large Taxpayer Programme. iii. New procedures and new systems were put in XI. Mutual Agreement Procedure place for continuing APA and MAP work, in view i. Multinational Enterprises (MNEs) operating of the challenges faced due to CoVID-19 pandemic. During the year, multiple discussions across the world are subjected to transfer pricing through emails and letters were held with audit in various countries to ensure that their competent authorities of many countries mainly, related party international transactions are priced USA, UK, Sweden, Switzerland, Netherlands, at arm’s length. Sometimes, the income of the Germany and Denmark etc. to resolve the tax group is taxed in various jurisdictions and dispute cases pending under the Mutual disputes arise due to economic double taxation Agreement Procedure (MAP) provided in the of the same income in the hands of different Double Taxation Avoidance Agreements. taxpayers of the same MNE group. Similarly, MNEs also face juridical double taxation where iv. Two Competent Authority meetings have been the same income is taxed in the hands of the held between India and USA virtually to discuss same taxpayer in different jurisdictions. To and resolve Mutual Agreement Procedure (MAP) resolve such disputes, the Double Taxation and bilateral Advance Pricing Agreement (BAPA) Avoidance Agreements (DTAAs) provide a cases as per provisions of Double Taxation mechanism through the “Mutual Agreement Avoidance Convention (DTAC) between India Procedure” Article of such DTAAs. Under this and USA. Further, Competent Authority Meetings mechanism, the competent authorities of have also been held virtually with UK and countries having a DTAA between them may Netherlands during the year. consult each other and reach an understanding v. The Competent Authorities of India and Japan to avoid double taxation. have been discussing virtually to resolve Mutual Agreement Procedure (MAP) and bilateral ii. India has a wide network of DTAAs and has been Advance Pricing Agreement (BAPA) cases as per able to successfully resolve double taxation provisions of Double Taxation Avoidance issues with various treaty partners by effectively Convention (DTAC) between India and Japan. using the Mutual Agreement Procedure (MAP) Article. The largest number of tax disputes is with vi. A virtual bilateral meeting was held between the the United States of America, which is not Competent Authority of India and Singapore in surprising because both countries have a very October 2021 to discuss bilateral APA/MAP high volume of trade and American MNEs have cases. 122Department of Revenue III vii. A virtual bilateral meeting between the disputes which would have otherwise clogged the Competent Authority of India and Korea to judicial system, and has helped in sending across discuss MAP/APA cases is scheduled in the signal that the Government wants taxpayers December 2021. to invest and grow. viii. During the year, the Competent Authorities of iii. Besides successfully running the unilateral leg India and Australia have also been discussing of the APA programme, CBDT has also vigorously virtually to resolve Mutual Agreement Procedure engaged with its various tax treaty partners to (MAP) and bilateral Advance Pricing Agreement negotiate and enter into Bilateral APAs, which (BAPA) cases. provide the taxpayers an added benefit of relief from any double taxation. ix. During the period January 2021 to November 2021, in aggregate, approximately 110 TP MAP iv. The programme has been accepted well by cases (assessment years) were closed with taxpayers and tax consultants, which is evinced treaty partners in North America and Europe. by the fact that 376 APAs (320 Unilateral APAs During the period from April, 2014 till December, and 56 Bilateral APAs) have been entered into 2021, more than 900 cases (assessment years) till November 2021 by CBDT. In 2020-21 and have been closed under MAP, which resulted in 2021-22, CBDT put in place remote signing significant reduction of litigation in India. protocol for signing of APAs due to challenges posed by Covid-19. All the APAs during this period x. During the year, in aggregate, 27 non-TP MAP have been signed following this protocol. cases (assessment years) have been closed/ resolved from 1st April, 2021 till November 2021 2.6 Investigation Division with United Kingdom, and 6 with the United During the Financial Year 2020-21, the States. Government has taken several steps, by way of policy- XII. Advance Pricing Agreements level initiatives and more effective enforcement actions on the ground to tackle the issue of black money. These i. The Advance Pricing Agreement (APA) steps include legislative and administrative measures, programme of CBDT, which was introduced more creation of more advanced systems and processes with than eight years ago, is one of its foremost due focus on capacity building and greater use of initiatives for promoting a non-adversarial and information technology. investor-friendly tax regime in India. i. Search and seizure and survey actions: ii. The APA programme has contributed significantly During F.Y. 2020-21, search and seizure actions to the Government’s mission of promoting ease were carried out against more than 569 groups of doing business, especially for MNEs which leading to seizure of assets worth over Rs.880 have a large number of cross-border transactions crores and admission of undisclosed income of within their group entities. By virtue of being over Rs.4145 crores. Whereas, during F.Y. 2021- founded on principles of mutual trust and 22* (upto November, 2021), search and seizure cooperation between taxpayers and revenue actions were carried out in over 364 groups. The authorities, the programme has helped in shaking actions in these cases led to seizure of assets off the image of India being a jurisdiction where worth over Rs.557 crores and an admission of the tax administration ran an aggressive transfer undisclosed income of over Rs.3461 crores. pricing regime. Further, by providing tax certainty to taxpayers, it has contributed immensely in Further, during F.Y. 2020-21, over 426 surveys prevention/resolution of costly and protracted tax were conducted leading to detection of 123Annual Report 2021-2022 undisclosed income of over Rs.5111 crores. iv. Actions under the Prohibition of Benami Whereas, during F.Y. 2021-22* (upto October, Property Transactions Act, 1988 (“the Benami 2021), over 233 surveys were conducted leading Act”): to detection of undisclosed income of over With a view to bridge the gaps and put in place Rs.3430 crores. appropriate effective legislation, the existing Act *Figures are provisional was amended through Benami Transactions (Prohibition) Amendment Act, 2016, and came ii. Prosecutions & compounding: into force w.e.f. 1st November 2016. The Various measures have been taken by the amended Act defines benami transactions and Income-tax Department (ITD) in the recent past benami property. It provides for consequences to strengthen the prosecution mechanism with a of entering into a prohibited benami transactions, view to identify the deserving prosecutable cases which includes attachment of the benami at the earliest and pursue the same with due property, confiscation and prosecution of both the seriousness. benamidar and the beneficial owner. The ITD has set up 24 Benami Prohibition Units across During F.Y. 2020-21, over 173 prosecution India for taking effective action under the Benami complaints were filed and 16 persons were Act. convicted. Whereas, during F.Y. 2021-22* (upto August, 2021), 51 prosecution complaints have As an outcome of unabated actions taken by ITD, been filed and 2 persons have been convicted. during F.Y. 2020-21, show cause notices for provisional attachment of benami properties were * Figures are provisional. issued in over 190 new cases and provisional iii. Actions under the Black Money (Undisclosed attachment was made in over 195 cases. The Foreign Income and Assets) and Imposition value of properties under attachment was over of Tax Act, 2015 (“the BM Act”): Rs.623 crore. In more than 152 cases, references were made to the Adjudicating Recognizing the limitations of the Income Tax Act, Authority under the Act. Further, in 112 cases, 1961 in dealing with black money stashed the Adjudicating Authority confirmed the orders abroad, the Government enacted a of provisional attachment passed by the ITD. comprehensive and a more stringent new law Moreover, during the F.Y. 2021-22 (upto October, that has come into force w.e.f. 01.07.2015. As 2021), show cause notices for provisional an outcome of the actions taken by the Income- attachment of benami properties were issued in tax Department under the BM Act, as on 154 new cases and provisional attachment has 31.03.2021, undisclosed foreign assets and been made in 107 cases. The value of properties income valued at over Rs.36,100 crores (subject under attachment is over Rs.1594 crore. In 220 to fluctuations in currency conversion) have been cases, references have been made to the detected. Further, as on 31.03.2021, more than Adjudicating Authority under the Act. Further, in 104 prosecution complaints have been filed over 78 cases, the Adjudicating Authority has under the BM Act. confirmed the orders of provisional attachment Whereas as on 31.10.2021, undisclosed foreign passed by the ITD. assets and income valued at over Rs.38,650 v. Investigation in foreign assets cases: crores (subject to fluctuations in currency conversion) have been detected. Further, as on In HSBC bank accounts cases, as an outcome 31.10.2021, more than 110 prosecution of investigation, undisclosed income of about complaints have been filed under the BM Act. Rs.8466 crore has been brought to tax on account of deposits made in unreported foreign 124Department of Revenue III bank accounts. Further, concealment penalty of In Paradise paper cases, as on 31.10.2021, about Rs.1294 crore has been levied in 171 search & seizure and/or survey conducted in 32 cases. So far, 204 prosecution complaints in cases; notices under section 10 of the Black HSBC cases have been filed in 89 cases. Money Act issued in 59 cases; criminal In International Consortium of Investigative prosecution complaints have been filed/initiated Journalists (ICIJ) cases, sustained investigations in 13 cases and undisclosed credits of Rs.271 conducted have led to detection of more than crore approx. (Foreign – Rs.77 crores & Rs.11,010 crore of credits in the undisclosed Domestic– Rs.194 crore) have been detected. foreign accounts and 101 prosecution complaints Further, for efficient and effective handling of have been filed before criminal courts. information being received in relation to foreign In Panama paper cases, as on 31.10.2021, assets/income, a dedicated set up in the form of search & seizure action conducted in 83 cases; Foreign Assets Investigation Units (FAIUs) are assessment proceeding u/s 10 of the BM Act has being set up by diverting the existing posts in the been issued in 71 cases; criminal prosecution Income Tax Department. Accordingly, with the complaints have been filed in 46 cases and approval of the Hon’ble Finance Minister, 29 undisclosed credits of Rs.20,082 crore approx. FAIUs have been created in the Investigation (Foreign – Rs.14,093 crores & Domestic – Rs.5,989 crores) have been detected. Directorates across India. 125Annual Report 2021-2022 3. Central Board of Indirect Taxes and Customs The motto of CBIC is "Desh Sevarth Kar Sanchay". The Central Board of Indirect Taxes and Customs or CBIC (erstwhile Central Board of Excise & Customs) is a part 3.1 GOODS & SERVICE TAX of the Department of Revenue under the Ministry of The Constitution was amended vide the 101st Finance, Government of India. It is the apex body for Amendment Act, 2016, to provide concurrent powers to indirect tax administration. It is involved in policy both Centre & States to levy GST on goods and Services formulation concerning levy and collection of Customs, both. Subsequent to the amendment, the GST Council Central Excise duties, Central Goods & Services Tax comprising of the Union Finance Minister, MoS, Finance (CGST) and Inter-state Goods & Services Tax (IGST), and Finance Ministers of all States, is empowered to make prevention of smuggling and administration of matters recommendations on matters related to GST Law and relating to Customs, Central Excise, CGST, IGST and tax rates. More than 17 taxes and 13 cesses have been Narcotics to the extent which is under CBIC's purview. subsumed in GST making India - "One Nation One Tax". The CBIC also plays an active role in GST Council The taxes subsumed in GST include erstwhile Central meetings and the associated activities of Law Committee Excise duty (except on 5 petroleum products & tobacco/ which deliberates on all matters brought before the GST tobacco products) and Service Tax. Council. GST has completed more than 4 years, since its The CBIC constituted under the Central Board implementation. GST has revolutionized the indirect of Revenue Act, 1963 consists of a Chairman and six taxation regime in India and has allowed India to achieve Members who are Special Secretaries to the Government the goal of One Nation, One Tax. However, like every of India. The CBIC personnel supervise the functioning other law, GST is also an evolving law and Government of the subordinate formations which includes Directorates has been sensitive towards the requirements of the trade and field formations of Customs, GST Commissionerates and industry and is making necessary changes required and Narcotics formations such as Opium factories and in law and procedures under GST to address the concerns the Central Revenues Control Laboratory. of the trade so as to make in India a favourable destination The field formations are mainly engaged in for investment and to enable India in achieving the Goal collection of revenue and are spread across the country. of "AtmaNirbharbharat". The tax payer's grievances are attended to by these field Following decisions have been implemented/ units of the CBIC on a day to day basis. proposed to be implemented in GST during 2021-22: The Board is assisted by 19 Directorates who (i) Vide notification No. 15/2021-CT dated act as adjunct offices and assist the Board in policy 18.05.2021 a proviso has been inserted to formulation. Each Directorate has been assigned with a Rule 90(3) to exclude the time period from specific responsibility. The Directorate General of the date of filing of the refund claim in Revenue Intelligence (DRI) is the premier intelligence and FORM GST RFD-01 till the date of investigation agency which collects and collates communication of the deficiencies in FORM intelligence relating to Customs duty frauds and GST RFD-03 by the proper officer, from the smuggling. Similarly, the Directorate General of GST period of two years as specified under sub- Intelligence is tasked with investigation of GST and section (1) of Section 54, in respect of any Central Excise/ Service Tax matters. Another important such fresh refund claim filed by the directorate is the Directorate of Human Resource applicant after rectification of the Development (DGHRD) which handles all HR matters of deficiencies. Further, a new provision has CBIC. been introduced allowing the applicants to After the introduction of GST in 2017, the withdraw the refund application filed in Directorate of Analytics and Risk Management (DGARM) FORM GST RFD-01 (sub-rule (5) and (6) was created. The DGARM is engaged in data analytics of rule 90). A new form has been notified and data mining. The results of the data analytics has for withdrawal of refund application (FORM helped in detecting large number of fake invoice cases GST RFD-01W). and has helped in augmenting GST collection. The (ii) It has been clarified vide Circular No. 160/ performance of this Directorate has been commendable 16/2021-GST, dated 20.09.2021 that only in the previous two years. The Directorate of Performance those goods which are actually subjected Management is tasked with evaluation of performance to export duty i.e., on which some export of the field formations based on laid down parameters. duty has to be paid at the time of export, The Directorate of Audit is mandated to carry out audit will be covered under the restriction which is an important tool of compliance verification. imposed under section 54(3) of CGST Act 126Department of Revenue III from availment of refund of accumulated except SEZ unit, w.e.f. 01.12.2020. Further, ITC. to ensure the smooth roll out, vide notification No. 28/2021 dated 30.06.2021, (iii) Vide notification No. 15/2021-CT dated penalty for non-compliance of QR code 18.05.2021, Rule 138E has been amended provisions was waived during the period to prescribe blocking of e-way bill only in 01.12.2020 to 30.09.2021. Vide Circular No. respect of supplies made by the person who 146/02/2021-GST dated 23.02.2021 and fails to file their FORM GSTR-3B returns Circular No. 156/12/2021-GST dated for a consecutive period of two months or 21.06.2021, clarification in respect of more or statement in FORM CMP-08 for applicability of Dynamic Quick Response two quarters or more, or statement of (QR) Code on B2C invoices and outward supplies in FORM GSTR-1for any compliance of notification No. 14/2020 two months or quarters; and not in respect dated 21.03.2020 have been issued. of supplies made to such defaulting taxpayer as recipient. With this (ix) Requirement of filing FORM GST ITC-04 amendment, issuance of e-way bill by the for the period July, 2017 to March, 2019 compliant supplier will not be blocked, in was waived subject to certain conditions. respect of supply made to recipient, W.e.f. 01.10.2021, FORM ITC-04 is including a recipient who has defaulted in required to be filed on half yearly basis by furnishing two consecutive returns. This the taxpayers having AATO in the preceding would ensure that business of compliant FY of more than Rs. 5 crore and on annual suppliers is not adversely affected. basis by other taxpayers. (iv) Electronic invoicing system was introduced (x) GST Council in its 45th meeting held on for taxpayers with turnover of more than Rs. 17.09.2021 had recommended that refund 500 crores from 01.10.2020 for B2B to be disbursed in the bank account, which transactions and for export invoices. The is linked with same PAN on which same was extended for taxpayers with registration has been obtained under GST. turnover of more than Rs. 100 Crores from (xi) Tenure of National Anti-profiteering 01.01.2021. Vide notification No. 05/2021 Authority, established to deal with the anti- dated 08.03.2021, the same has been profiteering issues, has been further extended for taxpayers with turnover of extended up to November, 2022. more than Rs. 50 Crores from 01.04.2021. (xii) Vide notification No. 19/2021 dated (v) Requirement of issuing e-invoices by 01.06.2021-CT read with notification no. 33/ government departments and local 2021-CT dated 29.08.2021, amnesty has authorities has been exempted vide been given for the returns for the period notification No. 23/2021 dated 01.06.2021. from July, 2017 to April, 2021 wherein the (vi) E-wallet Scheme was further deferred up amount of late fee payable for FORM to 31.03.2022. Exemption from IGST and GSTR-3B has been capped at Rs. 500/- Cess on the imports made under the AA/ (Rs. 250/- + Rs. 250/-) for each return if EPCG/EOU schemes was further extended the tax liability was zero for that period. For up to 31.03.2022. all other cases, it has been capped at Rs. 1,000/- (Rs. 500/- + Rs. 500/-) for each (vii) It has been clarified vide Circular No 160/ return. The said amnesty will be available 16/2021-GST, dated 20.09.2021 that there only if the returns are furnished between is no need to carry the physical copy of tax 01.06.2021 to 30.11.2021. invoice in cases where invoice has been generated by the supplier in the manner (xiii) Maximum late fees for delay in filing GSTR- prescribed under rule 48(4) of the CGST 1 and GSTR-3B for returns of period from Rules. June, 2021 or quarter ending June, 2021 onwards has been capped based on (viii) Provisions have been made in GST Rules turnover / tax liability. to specify QR code on tax invoices. It has been provided that the invoice shall have (xiv) Vide notification No. 21/2021 dated dynamic QR code for all B2C invoices for 01.06.2021 maximum late fee for delay in the taxpayers having annual aggregate furnishing FORM GSTR-4 has been turnover of more than Rs. 500 crores, capped. This would be applicable for return 127Annual Report 2021-2022 of the CGST Rules, 2017, dated 02.11.2021 has been issued by CBIC. for FY 2021-22 onwards. Maximum late fee would be Rs. 500/- (Rs. 250/- + Rs. 250/-) (xx) COVID Relief Measures in GST per return for NIL return and Rs 2000/-(Rs. Compliance 1,000/- + Rs. 1,000/-) in other cases. In view of the challenges faced (xv) Vide notification No. 22/2021 dated by taxpayers in meeting the statutory and 01.06.2021, late fee payable for delayed regulatory compliances under GST law furnishing of FORM GSTR-7, from the tax due to the outbreak of the second wave period of June, 2021, has been reduced to of COVID-19, the Government has Rs 50/- per day (Rs. 25/- + Rs. 25/-) subject issued notifications, dated 1st May, 2021, to a maximum of Rs 2,000/- (Rs. 1,000/- + 1st June, 2021 and 29th August, Rs. 1,000/-) per return. 2021providing various relief measures for taxpayers. These measures are as (xvi) Simplification of Annual Return for Financial follows: Year 2020-21: a. Reduction in rate of interest: a. Amendments in section 35 and 44 of CGST Act made through section 110 Concessional rates of interest in lieu of the normal rate and 111 of the Finance Act, 2021 to be of interest of 18% per annum for delayed tax payments notified. This would ease the have been prescribed in the following cases- compliance requirement in furnishing reconciliation statement in FORM  For registered persons having aggregate GSTR-9C, as taxpayers would be able turnover above Rs. 5 Crore: However rate to self-certify the reconciliation of interest of 9 per cent for the first 15 days statement, instead of getting it certified from the due date of payment of tax and 18 by chartered accountants. This change per cent thereafter, for the tax payable for will apply for Annual Return for FY 2020- tax periods March 2021, April 2021 and May 21 (notification No. 29/2021 dated 2021 payable in April 2021, May 2021 and 30.07.2021); June 2021 respectively. b. The filing of annual return in FORM  For registered persons having aggregate GSTR-9 / 9A for FY 2020-21 to be turnover up to Rs. 5 Crore (for both normal optional for taxpayers having aggregate taxpayers and those under QRMP scheme): annual turnover up to Rs. 2 Crore Nil rate of interest for the first 15 days from (notification No. 31/2021 dated the due date of payment of tax and 9 per 30.07.2021); cent for the next 45 days, 30 days and 15 c. The reconciliation statement in FORM days for the tax payable for the periods GSTR-9C for the FY 2020-21 will be March, April and May, 2021 respectively. required to be filed by taxpayers with annual aggregate turnover above Rs. 5  For registered persons who have opted to Crore (notification No. 30/2021 dated pay tax under the Composition scheme: 30.07.2021). NIL rate of interest for first 15 days from the (xvii) Retrospective amendment in section 50 due date of payment of tax and 9 per cent of the CGST Act with effect from for the next 15 days, and 18 per cent 01.07.2017, made vide section 112 of the thereafter for the tax payable for the quarter Finance Act, 2021, providing for payment ending 31st March, 2021. of interest on net cash basis, has been notified w.e.f 01.06.2021 (notification No. b. Waiver of late fee: 16/2021 dated 01.06.2021).  For registered persons having aggregate (xviii) Instructions dated 22.09.2021 have been turnover above Rs. 5 Crore: Late fee issued by CBIC for issuing show cause waived for 15 days in respect of returns in notices (SCNs) by GST officers under FORM GSTR-3B furnished beyond the due section 73 or 74 in a time bound manner. date for tax periods March, 2021, April, (xix) Guidelines for disallowing debit of 2021and May 2021, due in the April 2021, electronic credit ledger under Rule 86A May 2021 and June, 2021respectively; 128Department of Revenue III  For registered persons having aggregate 01.06.2021 wherein the time limit for turnover up to Rs. 5 Crore: Late fee completion of various actions, by any waived for 60 days, 45 days and 30 days in authority or by any person, under the GST respect of the returns in FORM GSTR-3B Act, which falls during the period from 15th furnished beyond the due date for tax April, 2021 to 29th June, 2021, has been periods March, April and May, 2021 extended upto 30th June, 2021, subject to respectively. some exceptions as specified in the notification.  For registered persons filing FORMGSTR 3B on quarterly basis, Late fee waived for  The timeline for making an application of 60 days beyond the due date for period Jan- revocation of cancellation of registration March, 2021. where registration has been cancelled under clause (b) or (c) of sub-section (2) of section c. Extension of due date of filing GSTR-1, IFF, 29 of CGST Act and the time limit for GSTR-4 and ITC-04: submission of such application falls during the period from 01.03.2020 to 31.08.2021  Due date of filing FORMGSTR-1 and IFF has been extended up to 30.09.2021 vide for the month of April, 2021 and May, 2021 notification No. 34/2021-CT dated extended by 15 days. 29.08.2021.  Due date of filing FORM GSTR-4 for FY 3.2 Customs 2020-21 extended from 30th April, 2021 to 31stJuly, 2021. Indian Customs has always been at the forefront when it comes to adopting cutting edge technology for  Due date of furnishing FORM ITC-04 for providing better services in respect of both cargo and Jan-March, 2021 quarter extended from passengers. The policy adopted by Customs is directed 25th April, 2021 to 30th June, 2021. towards the twin goals of "Make in India" and "Atma Nirbhar Bharat". The tariff structure has been calibrated d. Certain amendments in CGST Rules: so as to achieve furtherance of economic activity and  Relaxation in availment of ITC: Rule 36(4) employment generation in the domestic market. There is a special emphasis on providing a level playing field and i.e. 105% cap on availment of ITC in FORM rational protection to MSMEs who are contributing GSTR-3B to be applicable on cumulative immensely in employment generation. basis for period April, May and June, 2021 to be applied in the return for tax period 3.2.1 Reforms carried out by Customs for the year- June, 2021 or the quarter ending in June, 2021-22: 2021. Otherwise, rule 36(4) is applicable for  Indian Customs has expedited Customs each tax period. clearances for goods imported relating to  The filing of GSTR-3B and GSTR-1/ IFF by COVID 19 pandemic, including oxygen companies using electronic verification code related equipment etc, enabling the has already been enabled for the period essential goods to reach the beneficiary in from 27.04.2021 to 31.05.2021. This has the least possible time. been further extended vide notification No.  Remission of Duties and Taxes on Exported 27/2021-CT dated 01.06.2021 to 31st Products (RoDTEP) Scheme is another August, 2021 and vide notification No. 32/ scheme implemented recently by Customs 2021-CT dated 29.08.2021 to 31st October, through a simplified IT System. This enables 2021. issue of Export Rebate in the form of a e. Extension in statutory time limits under transferable duty credit/ electronic scrip (e- section 168A of the CGST Act: scrip) which will be maintained in an electronic ledger by the Central Board of  Time limit for completion of various actions, Indirect Taxes & Customs (CBIC). This by any authority or by any person, under the revamped end-to-end automated scheme GST Act, which falls during the period from aims to provide a boost to Indian exports by 15th April, 2021 to 30th May, 2021, providing a level playing field to domestic extended upto 31st May, 2021, subject to industry abroad. some exceptions as specified in the notification. This has been further extended  Several other key trade facilitation measures vide notification No. 24/2021-CT dated undertaken includes decrease in number of 129Annual Report 2021-2022 goods subjected to Examination by  Strategic imports like defense goods not leveraging technology, Revamping of Direct produced domestically are allowed imports at Port Delivery Scheme leading to more concessional duty. importers availing the scheme, Risk based  The import of non-essential items is discouraged. processing of Drawback Claims, digital applications for AEOs, dispensing with  To prescribe trade remedial duties, like anti- certain periodic renewals etc. dumping duty, CVD, safeguard duty on dumped  Various agreements/MoUs were signed by and subsidized imports causing injury to the Indian Customs with countries like Maldives, domestic industry. USA, BRICS etc on various Customs related  Encourage exports, by making available the raw matters for mutual co-operation. This will material without the imposition of customs duty facilitate movement of goods across the and allowing refunds of duty/taxes on inputs, countries. besides fiscal incentives. Prominently, gems and jewellery sector, textiles, pharma, leather goods, 3.3 Tax Research Unit: electronics, fisheries, agriculture have been All issues pertaining to rate of taxes (Customs, benefitted by such initiatives relating to exports. GST, Central Excise), including exemptions, are handled A2. Basic Customs Duty structure consequent to by the Tax Research Unit of CBIC. adoption of the above guiding principles for inducing Tax Research Unit-I (Goods) & Tax Research Unit-II economic growth in India: (Services)  The basic customs duty rates in general are Nil/ 2.5%/5%/7.5% on the inputs/ intermediate A. General policy direction as regards Customs products [industrial chemicals, ores and duty rates to give impetus to economic growth: concentrates, fuels, textile fibres and yarns etc.] A1. In recent years, the Customs duty rate structure used in industries for manufacturing. has been guided a conscious policy of the  Finished items of consumption attract higher duty, government to: e.g., items like mobile, television, air-conditioner,  Incentivize domestic value addition under make refrigerators, washing machine, furniture, jewellery, including imitation jewellery, watches, in India initiative, which inter alia envisages toys attract higher BCD. Footwear, certain textile imposition of lower duty on raw materials and articles etc. attract BCD at the rate of 25%. Most providing reasonable tariff barrier on goods being of these changes have been made in the last 3 manufactured in India; Budgets.  Put in place phased manufacturing plan in  The BCD has been increased in past few budgets respect of significant products like mobile phone, on items like oils, pulses, wheat, sugar, fruit other electronic goods like TVs, electric vehicles, juices, edible oils and miscellaneous edible batteries, solar panel etc. The BCD rate are preparation to safeguard the interest of farmers. calibrated in such a manner that encourages  Concerted efforts have been made to remove deepening of value addition gradually. For inversions in duty structure. Tariff Commission example, in respect of mobile phones, initially and DPIIT examines the issues of inversion/ the parts were placed under nil BCD while duty negative effective protection to the domestic was imposed on mobiles. Gradually, duty has industry. In majority of cases Tariff Commission been raised on parts in phased manner as their did not find any inversion. Appropriate corrections production began in India. made in few cases recommended by them. The  Providing level playing field to farmers with inversion now being spoken about essentially emanates from FTA and ITA, the review of which adequate tariff barrier on agricultural produce. lies in the domain of Department of Commerce.  Have a graded duty structure so as to avoid duty B. Rate related changes in Goods and Services inversion on value added products. Tax:  Calibrated customs duty structure in such way B1: GST on Goods that incentivizes investment in key areas like  GST rates on all renewable equipment petroleum exploration, electronic manufacturing including solar, wind etc were increased from 5% etc. 130Department of Revenue III to 12% in October, 2021 in order to remove the is supplied by the publisher has been inverted duty structure present in the industry and changed to 18 % from 12% to bring it on provide a fillip to domestic manufacturing of parity with Colour printing of images from film renewable equipment. or digital media.  With respect to the ores such as those of iron, iv. GST Exemption on leasing of rolling stock copper, manganese, tungsten, nickel, cobalt by IRFC to Indian Railways has been etc. where metals attract 18% GST, the GST withdrawn so as to open the ITC chain. rates were raised from 5% to 18% to remove the v. E Commerce Operators are being made inverted duty structure from the ore concentrate liable to pay tax w.e.f.1.1.2022 on following industry and ensure a smooth flow of ITC. services provided through them  GST rates on all railway goods were raised (a) transport of passengers, by any type and standardized at 18% to remove the duty of motor vehicles through it [w.e.f. 1st differential and correct the inverted duty structure. January,2022]  A concessional GST rate of 5% was fixed for Bio- (b) restaurant services provided through it diesel supplied to Oil Marketing Companies for with some exceptions [w.e.f. 1st blending with High Speed Diesel with a view to January, 2022] incentivize Bio-diesel production and reduce dependence on fossil fuels. vi. Relaxations have been made in conditions relating to IGST exemption relating to import  The GST rates on finished products like of goods on lease, where GST is paid on the textile apparel and footwear have been lease amount, so as to allow this exemption increased from 5% to 12% (effective from 1st even if (i) such goods are transferred to a January 2022) in order to remove inversion and new lessee in India upon expiry or prevent blocking of working capital. termination of lease; and (ii) the lessor located in SEZ pays GST under forward B2: GST on Services charge. Following measures have been taken towards rationalization of GST rates, Atma- nirbhar Bharat, Make- vii. GST rate has been increased from 12% to in-India and promotion of ease of doing business during 18% on Licensing services/ right to broadcast the FY 2021-22: and show original films, sound recordings, radio and television programmes [ to bring I. Rationalization of GST Rates of Services: parity between distribution and licencing services]. i. Changes have been made so to make it clear that land owner promoters could utilize credit II. Exemption from levy of GST of GST charged to them by developer promoters in respect of apartments that are i. GST exemption on transport of goods by subsequently sold by the land promotor and vessel and air from India to outside India has simultaneously allowing the developer been extended upto 30.9.2022. promotor to pay GST relating to such apartments any time before or at the time of ii. GST exemption has been provided on issuance of completion certificate. services by way of grant of National Permit to goods carriages on payment of fee. Earlier ii. Notification has been issued to extend the it was charged @18%. same dispensation as provided to MRO units of aviation sector to MRO units of ships/ iii. GST exemption has been provided on Skill vessels so as to provide level playing field to Training for which Government bears 75% domestic shipping MROs vis a vis foreign or more of the expenditure. Earlier, MROs and accordingly, (a) GST on MRO exemption was available only if Govt funded services in respect of ships/vessels is 100% expenditure of the training reduced to 5% (from 18%) (b) PoS of B2B programme. supply of MRO Services in respect of ships/ vessels would be location of recipient of iv. GST exemption has been provided on service. Services related to AFC Women's Asia Cup 2022. iii. GST rate on Printing and reproduction services of recorded media where content III. Issuance of Clarification: It has been clarified 131Annual Report 2021-2022 by way of Circular that- students with Disabilities" is exempt from GST i. services supplied to an educational institution including Anganwadi (which viii. services by cloud kitchens/central kitchens provide pre- school education also), by way are covered under 'restaurant service', and of serving of food including mid- day meals attract 5% GST [ without ITC]. under any midday meals scheme, ix. Ice cream parlours sells already sponsored by Government is exempt from manufactured ice- cream. Such supply of levy of GST irrespective of funding of such ice cream by parlours would attract GST at supplies from government grants or the rate of 18%. corporate donations. x. overloading charges at toll plaza, being akin ii. services provided by way of examination to toll, are exempt from GST. including entrance examination, where fee xi. the renting of vehicle by State Transport is charged for such examinations, by Undertakings and Local Authorities is National Board of Examination (NBE), or covered by expression 'giving on hire' for similar Central or State Educational Boards, the purposes of GST exemption and input services relating thereto are exempt from GST. xii. services by way of grant of mineral iii. supply of service by way of milling of wheat/ exploration and mining rights attracted GST paddy into flour (fortified with minerals etc. rate of 18% w.e.f. 01.07.2017. by millers or otherwise)/rice to Government/ xiii. admission to amusement parks having local authority etc. for distribution of such rides etc. attracts GST rate of 18%. The flour or rice under PDS is exempt from GST GST rate of 28% applies only to admission if the value of goods in such composite to such facilities that have casinos etc. supply does not exceed 25%. Otherwise, xiv. alcoholic liquor for human consumption is such services would attract GST at the rate not 'food and food products' for the purpose of 5% if supplied to any person registered of the entry prescribing 5% GST rate on in GST, including a person registered for job work services in relation to food and payment of TDS. food products. iv. GST is payable on annuity payments C: Central excise duty on Diesel and petrol received as deferred payment for construction of road. Benefit of the C1 Excise duty rates: Diesel and petrol duty exemption is for such annuities which are increases are depicted below paid for the service by way of access to a  The relevant factors, for retail sale price of petrol road or a bridge. and diesel are international prices of crude and v. services supplied to a Government Entity the rupee exchange rate. by way of construction of a rope-way attract  The increasing international prices of crude have GST at the rate of 18%. led to a sharp rise in retail selling price of petrol vi. services supplied by Govt. to its and diesel. This necessitated a reduction in undertaking/PSU by way of guaranteeing Excise Duty on petrol and diesel. loans taken by such entity from banks and financial institutions is exempt from GST.  The Road and Infrastructure Cess (RIC) was reduced by Rs 5 per litre for Petrol and Rs 10 for vii. coaching services to students provided by coaching institutions and NGOs under the Diesel as depicted in the table below. These central sector scheme of 'Scholarships for prices came into effect from 04.11.2021. Duty rates applicable upto 02.02.2021 Duty rates applicable with effect from (Rs. per litre) 04.11.2021 (Rs. per litre) Commodity BED SAED RIC AIDC Total BED SAED RIC AIDC Total Petrol 1.40 11 18 2.5 32.90 1.40 11 13 2.5 27.90 (unbranded) Petrol 2.60 11 18 2.5 34.10 2.60 11 13 2.5 29.10 (branded) Diesel 1.80 8 18 4.0 31.80 1.80 8 8 4.0 21.80 (unbranded) Diesel 4.20 8 18 4.0 34.20 4.20 8 8 4.0 24.20 (branded) BED: Basic Excise Duty SAED: Special Additional Excise Duty RIC: Road and Infrastructure Cess 132Department of Revenue III D. Other measures taken by CBIC/already in force related to Covid-19 COVID-19 Relief Measures taken (April, 2021 onwards) D.1 Exemption/ Reduction in Basic Customs Duty on import of COVID-19 relief goods TABLE-1 S.No. Description of goods Valid till Reference 1. Remdesivir Active Pharmaceutical 31.10.2021 Ingredients (API) 2. Beta Cyclodextrin (SBEBCD) used in 31.10.2021 manufacture of Remdesivir, subject to the condition that the importer follows the Notification No. procedure set out in the Customs (Import 27/2021-Customs of Goods at Concessional Rate of Duty) dated 20.04.21, as Rules, 2017. amended vide 3. Injection Remdesivir. 31.10.2021 notification No. 29/2021-Customs 4. Inflammatory Diagnostic (marker) kits, 31.10.2021 dated 30.04.21 namely- IL6, D-Dimer, CRP(C-Reactive Protein), LDH (Lactate De-Hydrogenase), Ferritin, Pro Calcitonin (PCT) and blood gas reagents 5. Medical Oxygen 30.09.2021 6. Oxygen concentrator including flow 30.09.2021 meter, regulator, connectors and tubings. 7. Vacuum Pressure Swing Absorption 30.09.2021 (VPSA) and Pressure Swing Absorption (PSA) oxygen plants, Cryogenic oxygen Air Separation Units (ASUs) producing liquid/gaseous oxygen. 8. Oxygen canister. 30.09.2021 9. Oxygen filling systems. 30.09.2021 Notification No. 10. Oxygen storage tanks 30.09.2021 28/2021-Customs 11. Oxygen generator 30.09.2021 dated 24.04.21, as amended vide 12. ISO containers for Shipping Oxygen 30.09.2021 notification No. 13. Cryogenic road transport tanks for 30.09.2021 31/2021-Customs Oxygen dated 31.05.21 and No. 41/2021-Customs 14. Oxygen cylinders including cryogenic 30.09.2021 dated 30.08.21* cylinders and tanks 15. Parts of goods at S.No.6 to 14 above, 30.09.2021 used in the manufacture of equipment related to the production, transportation, distribution or storage of Oxygen, subject to the condition that the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. 16. Any other device from which oxygen can 30.09.2021 be generated 133Annual Report 2021-2022 17 Ventilators, including ventilator with 30.09.2021 compressors; all accessories and tubings; humidifiers; viral filters (should be able to function as high flow device and come with nasal canula). 18 High flow nasal canula device with all 30.09.2021 attachments; nasal canula for use with the device. 19 Helmets for use with non-invasive 30.09.2021 ventilation. 20 30.09.2021 Non-invasive ventilation oronasal masks for ICU ventilators. 21 Non-invasive ventilation nasal masks for 30.09.2021 ICU ventilators. 22 COVID-19 vaccine. 30.09.2021 23 Amphotericin B 30.09.2021 24 Specified API/excipients for 31.08.2021 Notification No. Amphotericin B 35/2021-Customs 25 Raw materials for manufacturing 30.09.2021 dated 12.07.21 COVID-19 testing kits * Exemption from BCD and Health Cess D.2 Exemption/ Reduction in GST/ IGST on import of COVID-19 relief goods TABLE 2 Reduced S.No. Description of goods Valid till Reference GST rate 1. All goods covered under Nil 31.08.2021 Ad hoc exemption Customs notification 27/2201 Order (AEO) No. and 28/2021 (listed in Table 1 4/2021-Customs above), imported by State dated 03.05.2021, as Government or agency amended by AEO No. authorised by it, free of cost for 5/2021-Customs free distribution. dated 31.05.2021 2. All goods covered under Nil 31.08.2021 Notification No. Customs notifications 27/2201 32/2021-Customs and 28/2021 (listed in Table 1 dated 31.05.2021 above), imported and donated to Central/ State Government or relief agency recommended by State Government, for free distribution. 134Department of Revenue III 3 Medical Grade Oxygen 5% 30.09.2021 Notification No. 4 30.09.2021 05/2021-Central Tax Tocilizumab Nil (Rate) dated 5 Amphotericin B Nil 30.09.2021 14.06.2021 6 Remdesivir 5% 30.09.2021 7 Heparin (anti-coagulant) 5% 30.09.2021 8 Covid-19 testing kits 5% 30.09.2021 9 Inflammatory Diagnostic 30.09.2021 (marker) kits, namely- IL6, D- Dimer, CRP (C-Reactive Protein), LDH (Lactate De- 5% Hydrogenase), Ferritin, Pro Calcitonin (PCT) and blood gas reagents. 10 Hand Sanitizer 5% 30.09.2021 11 Helmets for use with non- 30.09.2021 5% invasive ventilation 12 Gas/Electric/other furnaces 30.09.2021 5% for crematorium 13 Pulse Oximeter 5% 30.09.2021 14 High flow nasal canula device 5% 30.09.2021 15 Oxygen Concentrator/ 30.09.2021 5% generator 16 Ventilators 5% 30.09.2021 17 BiPAP Machine 5% 30.09.2021 18 Non-invasive ventilation 30.09.2021 nasal or oronasal masks for ICU ventilators 5% Canula for use with ventilators 19 Temperature check 30.09.2021 5% equipment 20 Ambulance 12% 30.09.2021 E. AMENDMENTS IN THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975 AMENDMENTS E.1 Tariff rate changes for Basic Customs Duty [to be Rate of Duty effective from 02.02.2021, unless otherwise specified] * [Clause [95 (i)] of the Finance Bill, 2021] S. No. Heading, Commodity From To sub- heading tariff item Chemicals 1. 2803 00 10 Carbon Black 5% 7.5% 135Annual Report 2021-2022 Plastic items 2 3925 Builder’s ware of Plastics 10% 15% Gems and Jewellery Sector 3 7104 Cut and Polished Synthetic stones, 10% 15% including Cut and Polished Cubic Zirconia Electrical and Electronics Sector 4 8414 30 00 Compressors of a kind used in 12.5% 15% refrigerating equipment 5 8414 80 11 Compressors of a kind used in air- 12.5% 15% conditioning equipment 6 8504 90 90 Printed Circuit Board Assembly [PCBA] 10% 15% of charger or adapter (All goods under this tariff item, other than above, will continue to attract the existing effective rate of BCD at 10%) Parts of Automobiles 7 7007 Safety glass, consisting of toughened 10% 15% (tempered) or laminated glass. (All goods under this heading, other than those used with motor vehicles, will continue to attract the existing effective rate of BCD at 10%) 8 8512 90 00 Parts of Electrical lighting and signaling 10% 15% equipment, windscreen wipers, defrosters and demisters, of a kind used for cycles or motor vehicles 9 8544 30 00 Ignition wiring sets and other wiring sets 10% 15% of a kind used in vehicles, aircraft or ships 10 9104 00 00 Instrument Panel Clocks and Clocks of a 10% 15% similar type for vehicles, Aircraft, Spacecraft or Vessels 136Department of Revenue III E.2 Tariff rate changes (without any change in the Rate of Duty effective rates of Basic Customs Duty) S. No. Heading, Commodity From To sub- heading tariff item 1. 8414 40 Air compressors mounted on a wheeled 7.5% 15% chassis for towing 2. 8414 80 Gas Compressors (other than of a kind 7.5% 15% (except used in air-conditioning equipment), free- 8414 80 piston generators for gas turbine, turbo 11) charger and other compressors 3. 8501 10 to Electric Motors 10% 15% 8501 53 4. 8536 41 00 Relays 10% 15% and 8536 49 00 5. 8537 Boards, panels, consoles, etc. for electric 10% 15% control or distribution of electricity 6. 9031 80 00 Other instruments, appliances and 7.5% 15% machines 7. 9032 89 Electronic automatic regulators and other 10% 15% controlling instruments or apparatus F. OTHER PROPOSALS INVOLVING CHANGES IN BASIC CUSTOMS DUTY RATES IN RESPECTIVE NOTIFICATIONS [with effect from 2.2.2021, unless specified otherwise] S. No Chapter, Commodity From To Heading, sub- heading, tariff item Agricultural Products and By Products 1. 2207 20 Denatured Ethyl Alcohol (ethanol) for use in 2.5% 5% 00 manufacture of excisable goods 2. 23 All goods except dog and cat food and shrimp Nil/ 15% larvae feed 5%/ 10%/ 15%/ 20%/ 30% 137Annual Report 2021-2022 Minerals 3 2528 Natural borates and concentrates thereof Nil/5% 2.5% Fuels, Chemicals and Plastics 4 2710 Naphtha 4% 2.5% 5. 2907 23 00 Bis-phenol A Nil 7.5% 6. 2910 30 00 Epichlorohydrin 2.5% 7.5% 7. 2933 71 00 Caprolactam 7.5% 5% 8. 3907 40 00 Polycarbonates 5% 7.5% 9. 3908 Nylon chips 7.5% 5% 10. 3920 99 99 Other plates, sheets, films, etc. of other plastics 10% 15% Leather 41 Wet blue chrome tanned leather, crust leather, NIL 10% 11 finished leather of all kinds, including splits and . sides of the aforesaid Textiles 12. 5002 Raw Silk (not thrown) 10% 15% 13. 5004, 5005, Silk yarn, yarn spun from silk waste (whether or 10% 15% 5006 not put up for retail sale) 14. 5201 Raw Cotton Nil 5% + 5% AIDC* 15. 5202 Cotton waste (including yarn waste or garneted Nil 10% stock) 16. 5402, 5403, Nylon Fibre and Yarn 7.5% 5% 5404, 5405 00 00, 5406, 5501 to 5510 Gems and Jewellery Sector 17. 7106 Silver 12.5.% 7.5%+ 2.5% AIDC 18. 7106 Silver Dore 11% 6.1% + 2.5% AIDC 19. 7108 Gold 12.5% 7.5%+ 2.5% AIDC 138Department of Revenue III 20 7108 Gold Dore 11.85 6.9%+ % 2.5% AIDC 21 7107 00 Base metals or precious metals clad with 12.5% 10% 00, 7109 precious metals 00 00, 7111 00 00 22 7110 Other precious metals like Platinum, Palladium, 12.5% 10% etc. 23 7112 Waste and scrap of precious metals or metals 12.5% 10% clad with precious metals 24 7112 Spent catalyst or ash containing precious metals 11.85 9.17% % 25 7113 Gold or Silver Findings 20% 10% 26 7118 Coin 12.5% 10% Metals 27 7204 Iron and steel scrap, including stainless steel 2.5% Nil scrap [up to 31.03.2022] 28 7206 and Primary/Semi-finished products of non-alloy 10% 7.5% 7207 steel 29 7208, Flat products of non-alloy and alloy steel 10% 7.5% 7209, /12.5% 7210, 7211, 7212, 7225 (except 7225 11 00) and 7226 (except 7226 11 00) 30 7213, Long product of non-alloy, stainless and alloy 10% 7.5% 7214, steel 7215, 7216, 7217, 7221, 7222, 7223, 7227 and 7228 139Annual Report 2021-2022 31 7225 Raw materials for use in manufacture of CRGO 2.5% Nil steel [up to 31.03.2023] 32 7404 Copper Scrap 5% 2.5% 33 7318 Screw, bolts, nuts, etc. of iron and steel 10% 15% Capital Goods 34 8430 Tunnel boring machines Nil 7.5% 35 8431 Parts and components for manufacture of tunnel Nil 2.5% boring machines with actual-user condition IT, Electronics and Renewable 36 8544 (other Specified insulated wires and cables 7.5% 10% than 8544 70 and 8544 30 00) 37 39, 74 and Former, bases, bobbins, brackets; CP wires; Nil Applic 85 P.B.T.; Phenol resin moulding powder; able Lamination/ El silicon steel strips for use in rate manufacture of transformers (entry at S.No. 198 of 25/1999-Customs) 38 Any Inputs or parts for manufacture of Printed Circuit Nil 2.5% Chapter Board Assembly (PCBA) of cellular mobile phone (w.e.f. 1.4.2021) 39 Any Inputs or parts for manufacture of camera Nil 2.5% Chapter module of cellular mobile phone (w.e.f. 1.4.2021) 40 Any Inputs or parts for manufacture of connectors of Nil 2.5% Chapter cellular mobile phone (w.e.f. 1.4.2021) 41 Any Inputs or raw material for manufacture of Nil 2.5% Chapter specified parts like back cover, side keys etc. of cellular mobile phone (w.e.f. 1.4.2021) 42 Any Inputs or raw material (other than PCBA and Nil 10% Chapter moulded plastics) for manufacture of charger or adapter of cellular mobile phones 43 8504 90 90 Moulded plastics for manufacture of charger or 10% 15% or adapter 3926 90 99 140Department of Revenue III 44 Any Inputs or parts of Printed Circuit Board Nil 10% Chapter Assembly of charger or adapter of cellular mobile phones 45 Any Inputs or parts of Moulded Plastic of charger or Nil 10% Chapter adapter of cellular mobile phones 46 Any Inputs or raw materials (other than Lithium-ion Nil 2.5% Chapter cell and PCBA) of Lithium-ion battery or battery pack (w.e.f. 1.4.2021) 47 Any Parts or components of PCBA of Lithium-ion Nil 2.5% Chapter battery or battery pack (w.e.f. 1.4.2021) 48 Any Inputs or raw materials of following goods: - Nil 2.5% Chapter (i) Other machines capable of connecting to an automatic data processing machine or to a network (8443 32 90) (ii) Ink cartridges, with print head assembly (8443 99 51) (iii) Ink cartridges, without print head assembly (8443 99 52) (iv) Ink spray nozzle (8443 99 53) (w.e.f. 1.4.2021) 49 Any Inputs and parts of LED lights or fixtures 5% 10% Chapter including LED Lamps 50 Any Inputs for use in the manufacture of LED driver 5% 10% Chapter or MCPCB (Metal Core Printed Circuit Board) for LED lights or fixtures including LED Lamps 51 9405 50 40 Solar lanterns or solar lamps 5% 15% 52 8504 40 Solar Inverters 5% 20% 53 9503 Parts of Electronic Toys for manufacture of 5% 15% electronic toys Aviation Sector 54 Any Components or parts, including engines, for 2.5% 0% Chapter manufacture of aircrafts or parts of such aircrafts, by Public Sector Units under Ministry of Defence subject to condition specified. Medical devices 55 9018-9022 Medical Devices imported by International Health Health Organization and Diplomatic Missions Cess Cess @ 5% @ Nil 141Annual Report 2021-2022 Goods imported under Project Import Scheme 56 9801 High Speed Rail Projects being brought under Applica 5% project imports ble Rate 57 8714 91 All goods other than Bicycle parts and 10% 15% 00, 8714 components 92, 8714 93, 8714 94 00, 8714 95, 8714 96 00, 8714 99 G Pruning and review of customs duty concessions/ exemptions: G.1 Review of concessional rates of BCD prescribed in notification No. 50/2017 – customs dated 30.6.2017: The BCD exemption hitherto available on certain goods are being withdrawn by omitting following entries of notification No. 50/2017-Customs dated 30.6.2017. S. No. S. No. of Notfn Description/ CTH 1. 209 Diphenylmethane 4, 4-diisocyanate (MDI) for use in the manufacture of spandex yarn 2. 230 Ink cartridges, ribbon assembly, ribbon gear assembly, ribbon gear carriage, for use in printers for computers 3. 229 71 items like wax items, wood polish materials, prints for photo frames, velvet fabric/paper, handles/blades for [w.e.f 1.4.2021] cutlery, jigat, wine tools etc. 4. 311 35 items like fasteners, zippers, shoulder pads, buckles, rivets, Velcro tape, toggles, stud, elastic cloth and band, [w.e.f 1.4.2021] bobbin, hooks, anglets etc. 5. 312 42 items like buckles, buttons, stamping foil, sewing thread, Loop rivets, Glove Liners, shoe laces, inlay cards [w.e.f 1.4.2021] etc. 6. 313 18 items like lace, Velcro tape, curtain hooks, Tassel, Beads, Sequins, sewing threads, poly wadding materials, [w.e.f 1.4.2021] quilted wadding materials etc. 142Department of Revenue III G.2 Customs duty exemptions, including those which have been granted through certain other stand- alone notifications, have also been reviewed by rescinding the notification: Notification S. No. Notification Subject No. 1. 1/2011- Exemption to all items of machinery, instruments, appliances, Customs, dated components or auxiliary equipment for initial setting up of solar the 6.1.2011 power generation project or facility 2. 34/2017- This notification provided exemption to tags or labels (whether Customs dated made of paper, cloth, or plastic), or printed bags (whether made 30th June, 2017 of polyethene, polypropylene, PVC, high molecular or high density polyethene) imported for fixing on articles for export or for the packaging of such articles. Similar exemption exists at S. No.257 of notification No. 50/2017-Cus. These have been merged in the said S. No.257 and notification No 34/2017-Cus has been omitted. 3. 75/2017- Customs dated Exemption for goods imported for organizing FIFA Under-17 13th September, World Cup, 2017. 2017 H. IMPOSITION OF AGRICULTURE INFRASTRUCTURE AND DEVELOPMENT CESS ON IMPORT OF CERTAIN ITEMS [to be effective from 02.02.2021] [Clause [115] of the Finance Bill, 2021] An Agriculture Infrastructure and Development Cess (AIDC) has been proposed on import of specified goods. To ensure that imposition of cess does not lead to additional burden in most of these items on the consumer, the BCD rates has been lowered. This cess shall be used to finance the improvement of agriculture infrastructure and other development expenditure. The list of items on which cess has been imposed and the applicable duty and AIDC on them would be as follows: S. Heading, Commodity Basic customs AIDC No sub- duty heading tariff item 1. 0808 10 00 Apples 15% 35% 2. 1511 10 00 Crude Palm Oil 15% 17.5% 3. 1507 10 00 Crude Soya-bean oil 15% 20% 4. 1512 11 10 Crude Sunflower seed oil 15% 20% 5. 0713 10 Peas (Pisum sativum) 10% 40% 6. 0713 20 10 Kabuli Chana 10% 30% 7. 0713 20 20 Bengal Gram (desichana) 10% 50% 8. 0713 20 90 Chick Peas (garbanzos) 10% 50% 9. 0713 40 00 Lentils (Mosur) 10% 20% 10. 2204 All goods (Wine) 50% 100% 11. 2205 Vermouth and other wine 50% 100% of fresh grapes, flavoured 143Annual Report 2021-2022 12 2206 Other fermented 50% 100% beverages for example, Cider, Perry, Mead, sake, mixture of fermented beverages or fermented beverages and nonalcoholic beverages 13 2208 All goods (Brandy, 50% 100% Bourbon whiskey, Scotch etc.) 14 2701 Various types of coal 1% 1.5% 15 2702 Lignite, whether or not 1% 1.5% agglomerated 16 2703 Peat, whether or not 1% 1.5% agglomerated 17 3102 10 00 Urea Nil 5% 18 3102 30 00 Ammonium nitrate 2.5% 5% 19 31 Muriate of potash, for use Nil 5% as manure or for the production of complex fertilisers 20 3105 30 00 Diammonium phosphate, Nil 5% for use as manure or for the production of complex fertilisers 21 5201 Cotton (not carded or 5% 5% combed) 22 7106 Silver (including imports 7.5% 2.5% by eligible passengers) 23 7106 Silver Dore 6.1% 2.5% 24 7108 Gold (including imports by 7.5% 2.5% eligible passengers) 25 7108 Gold Dore 6.9% 2.5% 144Department of Revenue III In the wake of rising prices of edible oils, the duties on crude as well as refined edible oils were reduced in multiple tranches from June 2021 onwards. After the last duty reduction, which was made on 21st December, 2021, the current BCD and AIDC rates on edible oils is detailed as below: BCD & AIDC Rates on On 02.02.2021 On 21.12.2021* Edible Oils Tariff Item Description BCD AIDC BCD AIDC or HSN of goods 1511 10 00 Crude Palm 15% 17.5% Nil 7.5% Oil 1507 10 00 Crude 15% 20% Nil 5% Soya-bean oil 1512 11 10 Crude 15% 20% Nil 5% Sunflower seed oil 1511 90 Refined 54% - 12.5% - Palm Oil & its fractions 1507 90 10 Refined 45% - 17.5% - Soya-bean oil 1512 19 10 Refined 45% - 17.5% - Sunflower seed oil Applicable upto 31.03.202 I. Amendment in Chapter 27 of the Fourth Schedule to the Central Excise Act, 1944. Tariff items 2709 10 00, 2709 20 00, and the entries are being substituted relating thereto as under: [to be made effective from 01.04.2021] [Clause [96(i)] of the Finance Bill, 2021] Tariff Item Description of goods Unit Rate of duty 2709 Petroleum oils and oils obtained from bituminous minerals, crude 2709 00 10 ---petroleum crude Kg. Nil 2709 00 20 ---other Kg. ….. 145Annual Report 2021-2022 J. IMPOSITION OF AGRICULTURE INFRASTRUCTURE AND DEVELOPMENT CESS (AIDC) ON PETROL AND DIESEL An Agriculture Infrastructure and Development Cess (AIDC) as an additional duty of excise has been proposed on Petrol and High-speed diesel vide Clause [116] of the Finance Bill, 2021. This cess shall be used to finance the improvement of agriculture infrastructure and other development expenditure. The details of the cess are as under S. No. Commodity Rate of AIDC [Clause [116] of the Finance Bill,2021] 1 Motor spirit commonly known as Rs. 2.5 per litre petrol 2 High speed diesel Rs. 4 per litre 3.4 Anti-Smuggling Unit B. Matters related to Central Revenue Control Laboratory (CRCL) A. Matters related to Logistics: i. Vide letter dated 12.11.2021, all the field i. Drive Through Container Scanner (Rail): The formations and the Narcotics Control Bureau approval of the competent authority has was informed that the CRCL, Vadodara has already been conveyed to Directorate of also developed testing facilities for NDPS Logistics (DoL) in June, 2021 for substances and has received accreditation procurement of one DTRS at JNPT. The by National Accreditation Board for Testing work order has been issued to the vendor. and Calibration Laboratories (NABL). The expected date of operationalization of Therefore, it is advised that the said facility the DTRS is by the end of 2022. may also be utilised for testing Narcotics Drugs and Psychotropic Substances. ii. Mobile X-ray Container Scanner: The ii. Revalidation of various sanctions in respect procurement of five Mobile X-ray Container of various types of CRCL equipment. Scanners (MXCS) is at advanced stage. At present, the matter is with IFU for financial C. Matters related to ICD/CFS concurrence. i. This office vide Circular No. 02/2021- Customs dated 19.01.2021 has issued a iii. Mobile Container Scanners procured by IPA: comprehensive guideline on posting of The Indian Port Association (IPA) procured customs officer on cost recovery basis. The eight (8) Mobile X-ray Container Scanners. guidelines prescribe staffing norms at various The Board has accorded in-principal customs facilities, payment of cost recovery approval for taking over the ownership of charges for the officers and staff deployed these scanners in accordance with the and the conditions for the waiver of cost decision of CoS in 2019 that Customs recovery charges. Department should be given responsibility for operating the Container Scanners. The ii. Considering the lack of clarity/ hardships Board has accorded approval for tripartite being faced by the trade, this office vide agreement amongst CBIC, IPA and the Circular No. 20/2021-Customs dated vendor to ensure the contractual obligations 16.08.2021 has issued a clear and simplified of the vendor during warranty period and post comprehensive guideline enabling the exit/ warranty. de-notification provisions for ICDs/CFSs/ AFSs. iv. Revalidation of various sanction in respect D. Notification of Port/Airport of 90 Videoscopes, 74 Videoscopes, 86 XBIS, 76 XBIS, Fixed container Scanners, Kushinagar Airport has been declared as a Customs Mobile container Scanners, XMISs, PRDs & notified airport, vide notification no. 72/2021- Customs RIDs etc. (N.T.) dated 13.09.2021. 146Department of Revenue III 3.5 International Customs Division (ICD) The organizational structure of International Customs Division is as under: There are four Sections in ICD, viz. International authenticity and investigations. When Customs Desk, Land Customs, Cus V and FTA Cell. implemented, this would result in a Further, in light of e-governance, all the files in this Division transformational change in Customs working with are dealt on e-office. Also, CPIOs and Appellate authority resultant enhancement of revenues, trade for the abovesaid four Sections have been appointed. facilitation and risk mitigation. Brief of the functions and achievements of the Sections are below. III. Finalization of BRICS CMAA: Under India's chairmanship of BRICS in 2021, CBIC has Achievements: successfully concluded the negotiations on the BRICS Customs Mutual Administrative I. CMAA between India and UK: The Agreement Assistance Agreement (CMAA). These between the Government of the Republic of India negotiations were underway for the last 7 years and the Government of the United Kingdom of and required persistent efforts to resolve the Great Britain and Northern Ireland on Customs impasse over critical issues. This milestone has Cooperation and Mutual Administrative been highlighted as a key achievement during Assistance in Customs Matters was signed in the BRICS Leaders' Summit on 09.09.2021 and May, 2021. The exchange of information between also duly acknowledged in the BRICS Leaders' the Customs Administrations will provide for Declaration, 2021. assistance between Customs Administrations by sharing information and intelligence to facilitate IV. Operationalization of BRICS Joint proper application of Customs law and Enforcement Network: During the 3rd BRICS prevention, detection, investigation and Customs Cooperation Committee meeting, held combating of Customs offences, especially in at Brussels in June 2018, it was agreed to critical areas such as under-valuation of imports, establish BRICS Custom Joint Enforcement origin frauds, over-valuation of exports and the Network (JEN) to foster collaboration among consequent fraudulent availment of export Member States in Customs Enforcement incentives. The CMAA also provides for sharing matters. During India's chairmanship in 2021, information on sensitive commodities, exchange CBIC has successfully steered this agenda and of information to support risk profiling and operationalized the BRICS-JEN. The task was capacity building activities. accomplished through several rounds of discussions among the respective enforcement II. Pre-arrival information exchange between agencies, led by Directorate of Revenue Customs administrations: The CBIC and the Intelligence (India). The JEN is now active for Maldives Customs Service have signed an MoU conducting joint enforcement activities and for cooperation in exchange of pre-arrival exchange of information. In the first such information for facilitation of trade and customs international operation conducted under the aegis control on goods traded between the two of BRICS JEN named "Operation SCABBARD" countries, on 22.07.2021. Automated advance in the month of October 2021, more than 20 exchange of Customs data between two instances of Narcotics/ Precursors/ controlled Customs administrations is a path breaking substances seizures were reported by member global initiative of the CBIC. The information countries. exchanged under the MoU will be used for trade facilitation, risk management and tax compliance, V. BRICS Capacity Building Workshop: During including checking the goods declaration, the 3rd BRICS Customs Cooperation Committee 147Annual Report 2021-2022 meeting, held at Brussels in June 2018, Customs well received by other Customs administrations Training Centers in China, Russia and India were and also evinced interest to emulate Indian endorsed as the BRICS Customs Training template. On the sidelines of ICF 2021, India held Centers. During the BRICS Customs Experts bilateral meetings with Russian Federation, meeting held on March 16, 2021, India proposed Uzbekistan, South Korea and Tajikistan in which to conduct a workshop/training at the BRICS issues of mutual interest, such as initiating pre- Customs Training Centre in Bengaluru (NACIN, arrival data exchange, development of electronic Bengaluru), bringing together the expertise of origin data exchange system (EODES), Customs officials from all BRICS members. The cooperation in capacity building and law National Academy of Customs, Indirect Taxes enforcement were discussed. and Narcotics (NACIN), Bengaluru, CBIC has successfully conducted the capacity building IX. Launch of ECTS (Electronic Cargo Tracking workshop, from 22nd to 26th November, 2021, System) for movement of dutiable goods to through virtual mode. bonded warehouses: VI. Assisting Maldives Customs in lab testing: In order to ensure swift and secure movement During the visit of Chairman, CBIC to Maldives of dutiable goods from port of import to customs in July 2021 for signing of MoU on customs data warehouse, CBIC has launched the use of ECTS exchange, Maldives Customs expressed (Electronic Cargo Tracking System) in Oct 2021. The first difficulties in conducting lab testing of import/ truck carrying bonded goods was flagged off from ICD export goods and sought India's assistance. Tughlakhabad on 14.10.2021. This concept is borrowed CBIC responded positively to Maldives' request from transshipment procedure for cargo meant for and offered services of CRCL (Central Revenue neighboring countries. This pilot has been conceived for Control Laboratory), India. Subsequently, in a moving dutiable goods from port to bonded warehouses virtual meeting held on 27.09.2021 between and from bond to bond. It makes use of transparent, CBIC and MCS, modalities for testing in India paperless and secure documentation and also prevents were finalized. CRCL New Delhi has now started theft/pilferage. testing of samples from Maldives Customs. The first test report was sent to Maldives in the first X. Signing Letter of Exchange (LoE) with week of Oct 2021. Bhutan: VII. Training of Maldives Customs officers by In the Commerce Secretary Level Meeting held on CRCL: In addition to conducting lab testing in 03.11.2021, on recommendations of CBIC, Letters of India, CBIC has also undertaken to train Maldives Exchange were signed by India and Bhutan to include Customs officers in this area, as a part of an MoU the following additional entry/exit points to the Protocol on Capacity Building signed between CBIC and of the India-Bhutan Agreement on Trade, Commerce and MCS in 2019. A group of 10 MCS officers Transit: attended a 5 days' training programme on chemical analysis and narcotics drugs and i) Nagarkata Land Customs Station without psychotropic substances (NDPS) testing from commodity restriction; 18th to 22nd Oct, 2021 at the CRCL New Delhi, which is also a WCO Regional Customs ii) Agartala Land Customs Station as an entry/exit Laboratory. point; VIII. India's participation in the International iii) Pandu port (Guwahati Steamerghat) as an entry/ Customs Forum: On invitation of Federal exit point, subject to cross border control at Customs Service (FCS) of Russia, Chairman Dhubri; CBIC attended the International Customs Forum iv) Jogighopa riverine port as an entry/exit point, (ICF), 2021 held in Moscow on 21-22 Oct. The subject to cross border control at Dhubri event brought together Customs administrations across the world to deliberate on best practices v) Asian Highway 48 connecting Torsha tea garden and future visions. In the ICF 2021, CBIC in India and Ahllay in Bhutan as an additional presented its 25 years journey of leveraging IT route corresponding to the Land Customs Station for trade facilitation and law enforcement. The at Jaigaon; Indian delegation showcased recent advancements made by CBIC in this direction, vi) Kamardwisa as an entry/exit point; and particularly Faceless Customs and Compliance Information Portal. These developments were vii) Birpara as an entry/exit point. 148Department of Revenue III XI. Reducing compliance burden for authorized of the Union List of the Seventh Schedule to the couriers: Constitution), is repealed and there are only 6 Commodities viz. (5 Petroleum Products) Crude Oil, As a part of reducing compliance burden of Diesel, Petrol, Natural Gas, Air Turbine Fuel and Tobacco stakeholders, CBIC, vide notifications no. 85/2021- Products on which Central Excise duty is being levied. Customs (NT) and 86/2021-Customs (NT) both dated 27.10.2021, has introduced changes in Courier The Wing overviewed the implementation of the Regulations of 1998 (manual mode) and 2010 (electronic Sabka Vishwas-Legacy Dispute Resolution Scheme, mode). In brief, these amendments have provided for 2019, which aimed at liquidating the legacy cases of lifetime validity of registration as well as its voluntary Central Excise and Service tax whereas the amnesty surrender. These amendments are expected to bring components could bring the non-compliant tax payer/tax greater certainty to the authorized couriers and support evaders under the tax net. Presently, the wing is dealing them to focus on their core business and spur trust-based with the Writ Petitions and clarifications regarding the said compliance. scheme. The Budgetary Support Scheme under GST was XII. Launch of ECCS (Express Cargo Clearance notified by the Department of Promotion of Industry and Systems) at ICT Kolkata: Internal Trade, Ministry of Commerce & Industry and is With the launch of ECCS at Kolkata in Oct 2021, being implemented by CX Wing in CBIC. It covers the Himalayan States (J&K, Himanchal Pradesh, all International Courier Terminals (ICTs) having courier Uttarakhand) and North Eastern States (Arunachal work load, have now been brought under electronic clearance mode. ECCS had migrated from WIPRO data Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura) including Sikkim. It provides centre to CBIC data centre on 29.07.2020. At the time of budgetary support to the eligible units under erstwhile migration, ECCS was operational only at three locations i.e. Bangalore, Mumbai and Delhi. During the last one Area-based Exemption Scheme and were availing benefits under the respective central excise exemption year, the enhanced version of ECCS has been rolled out at 5 additional locations viz. Chennai, Cochin, notification in the erstwhile regime of Central Excise taxation. Ahmedabad, Jaipur and Kolkata. During the Special campaign drive for cleanliness 3.6 CENTRAL EXCISE during the period 2nd October to 31st October, 2021, old records/files have been reviewed and a total of 1059 files The Central Excise and Service Tax Wing deals of the CX & ST wing have been weeded out. Further, with the policy issues related to Central Excise and legacy during the cleanliness drive electronic scrap and other issues of Central Excise & Service tax. With the waste material has been weeded out. implementation of GST w.e.f. 01.07.2017, the Chapter V of the Finance Act, 1994, is omitted and the Central Excise During the current financial year, the Notifications/ Act, 1944 (except as respects goods included in entry 84 Circulars/Instructions issued by the Wing are as follows: S. Notification No. & Date Subject No. 1. 02/2021-CX(NT), Notification for allowing Centralised registration for Petroleum Crude. dt. 10-11-2021 S.No. Circular No. & Date Subject 1. Circular No. 1079/03/2021-CX, Clarification in respect of the Master dt. 11-11-2021 Circular No. 1053/02/2017-CX dated 10.03.2017 149Annual Report 2021-2022 S.No. Instruction File No. & Date Subject 1. F.No. 116/40/2021-CX-3 Procedures for refund of excise duty on purchase of petrol/diesel/fuel oil by Diplomatic Dt. 10-11-2021 Missions and their officers for their official /personal use - regarding. 2. CBIC-90206/1/2021-CX-IV Audit Para No. 501 to 5018 of Chapter V of Section-CBEC Audit report no. 01 of 2021 of SCNs and Dt. 18-11-2021 Adjudication process in CBIC-reg. 3.7 Drawback Division processing of duty drawback claims. The above measure is expected to reduce the processing I. Functioning of Drawback Division time taken for drawback claims, enable quick Drawback Division in CBIC aims to facilitate trade and disbursal of exporters and rationalise the enhance ease of doing business while balancing the need Customs' workload. for compliance and enforcement of Customs laws. It c. RoDTEP scheme: Government had constituted performs the following functions: a committee for determination of ceiling rates (i) Fixation of All Industry Rates under Duty under Remission of Duties and Taxes on Drawback scheme, which is a key scheme Exported Products (RoDTEP) scheme. Joint to rebate the incidence of Customs and Secretary (Drawback) was designated as the Central Excise duties on export products so Secretary to the Committee and Drawback as make country's exports zero-rated and Division served as its secretariat. It being a DoC's competitive in international markets. scheme, ceiling rates/ caps under the RoDTEP scheme were notified by Department of (ii) Monitoring of sanction and disbursal of Commerce / DGFT based on recommendations drawback by the field formations; and of the RoDTEP Committee and discussions with DoR. The RoDTEP Committee submitted its first (iii) Monitoring along with DGFT of the phase report on 24.12.2020 which was submitted functioning of all Export Promotion schemes to DoC on 11.01.2021. Thereafter, the RoDTEP except SEZ, EOU and Gems and Jewellery Committee submitted its final report on schemes, which are monitored by the DGEP. 15.03.2021 which was subsequently sent to DoC on 06.04.2021. Notifications No. 75/2021- (iv) Fixation of rates for other schemes like Rebate of State and Central Taxes and Customs (N.T) dated 23.09.2021 notifying the Electronic Duty Credit Ledger Regulations, 2021 Levies (RoSCTL) and Remission of Duties and No. 76/2021-Customs (N.T) dated and Taxes on Exported Products (RoDTEP). 23.09.2021 has been issued by this Division II. Important items of work accomplished by the notifying the manner to issue duty credit for goods Drawback Division of CBIC during the period exported under RoDTEP scheme and also 01.01.2021 to 31.10.2021 are as follows: specifying certain conditions and restrictions. Further, Circular No. 23/2021-Customs dated a. Notification No. 23/2021-Customs dated 31st 30.09.2021 has also been issued for clarifications March, 2021 issued to extend the exemption from regarding the scheme. Integrated Tax and Compensation Cess upto 31.03.2022 on goods imported against AA/EPCG d. RoSCTL scheme: Earlier, it was intended to authorizations. subsume the RoSCTL scheme w.e.f 01.01.2021 in the RoDTEP scheme. However, later b. Circular No.15/2021-Customs dated 15th July Government decided to have independent 2021 has been issued by this Division regarding RoSCTL scheme w.e.f 01.01.2021 to 31.03.2024. implementation of second phase of Risk In this regard, consequent to notification by Management System (RMS) w.e.f. 26.07.2021 Ministry of Textiles, Notification No. 77/2021- wherein RMS will process the shipping bill data Customs (N.T) dated 24.09.2021 was issued by after the Export General Manifest (EGM) is filed Drawback Division, notifying the manner to issue electronically and provide required output to ICES duty credit for goods exported under RoSCTL for selection of shipping bills for risk-based scheme and also specifying certain conditions 150Department of Revenue III and restrictions. Further, Circular No. 22/2021- investigation of cases booked and related reports. It also Customs dated 30.09.2021 has been issued for coordinates with DGARM and DGGI in analysing and clarifications regarding the scheme. disseminating intelligence to filed formations. Government has taken several effective e. Formulation of Budgetary mechanism: As per measures to curb the menace of fraudulent Input Tax directions from Ministry, Drawback Division has Credit (ITC) availment based on fake invoices which successfully brought all the scrip based export essentially is an invoice raised without actual supply of promotion schemes under budgetary goods and/or services. Considering the large-scale mechanism. impact of this menace on Income Tax collection, bank 3.8 Customs Investigation Wing finance and money laundering besides denting GST revenue, a country wide special drive measure to stamp Investigation-Customs Wing of CBIC is entrusted out fake invoice issuance and availment of fraudulent with Policy related matters such as disposal of seized/ credit on its strength is being carried out w.e.f. 09th Nov. confiscated goods, prosecution and various types of 2020 which has, till 7th Nov. 2021, resulted into detection complaints/ references and PMO Complaints etc. of 5485 cases involving an approx. amount of Rs. 37900 Important Initiatives taken crore. Besides, an amount of Rs. 1967 crore has been a) Explosives and war like material lying at various recovered and 539 people have been arrested so far. Custom formations since a very long time were Prior to introduction of GST, offence data related disposed of under Operation "Vishphotak Mukt to cases of indirect taxes of Central Excise and Service Bandargah", Tax were being recorded manually in a register called b) Data for available stock in warehouses (e- 335-J. However, with the present digital age, and focus Malkhanas) and stock of safety measure of of the Govt. towards digitisation, the need to capture warehouses undertaken successfully, offence data of newly introduced GST cases booked by the field formations digitally was felt. Accordingly, an online c) A new dashboard for DIGIT for centralized data portal DIGIT which aims to create a simple, easily of SCNs, Order in Originals and other relevant accessible and transparent interface for the officers of information for proper monitoring has been DGRI/DGGI and Customs/CGST & C. Ex. field formations prepared, in storing and retrieving data on cases registered by them, d) After a series of long litigation, Department could has been introduced on full scale basis. This Module get possession over 56 Kgs gold successfully assists in keeping track of the various cases detected which were seized by local police in 1965. and the progress made and status of each case by way Initiatives under process of recording of the details of the cases at various stages a) New Policy on the behest of Hon'ble FM for of investigation, adjudication, appeal, prosecution and disposal of seized/confiscated gold by Customs rewards. This System can be used for various purposes, is prepared in consultation with RBI & SPMCIL, including for generating reports for analysis and MIS. b) Formulation of Customs Controlled Delivery Based on DIGIT data, CBIC recently launched a platform/ Regulations is at advance stage of finalization; dashboard called 'Drishyam" having details of the macro c) Delegation of Customs power to Assam Rifles data of offence cases for monitoring of progress of cases and BSF to prevent smuggling activities in the with a facility to track individual case. Drishyam is a read- border areas is under process. only application which shall not have any effect in the d) Apart from currently functional IEC alert, the alert data entry of DIGIT applications. system for Shipping Bills wise are being Further, Since GST Investigation is not an en- developed to check fraudulent exports and exchange of data between CBIC and DGFT is cadred formation and hence information with respect to being further enhanced. other points may be treated as not applicable. 3.9 GST Investigation Wing 3.10 The Directorate General of Performance Management (DGPM) GST Investigation wing of CBIC was created by Instruction No. 01/2018 on 10th September, 2018. Its I. Directorate General of Inspection (Customs and main work is related to deal with policy issues including Central Excise) was constituted in 1939, as part of the legislative matters concerning enforcement aspect viz. Board's office for conducting periodical inspections and search, seizure, arrest, prosecution and compounding to advise the Board on technical questions, under CGST Act, 2017 which eventually refers to GST Policy wing for further implementation. It monitors the standardization of organization & procedures in Custom work of DGGI and GST field formations in respect of Houses and Central Excise Commissionerates. It became 151Annual Report 2021-2022 an attached office on 1st April, 1946. On August 13, 2015, Gr.I & II, LDC, Head Havaldar, Havaldar and MTS were finalised. the name has been changed to Directorate General of Performance Management (Customs, Central Excise and (ii) 84 dossiers of candidates for the post of Steno Service Tax). Besides the Directorate's headquarter in Gr.I, 10 in the grade of Steno Gr.II and 120 in respect of New Delhi, 05 regional units are functioning at Mumbai, Tax Assistants were received for recruitment through SSC Kolkata, New Delhi, Chennai and Hyderabad. Examination, 2018. The joining fromalities and postings to various directorates were done. II. Mandate of DGPM: (iii) DPCs in the grades of Sr.PS. PS, AO, EA, Steno (a) Nodal Agency for implementation of e-office. Gr.I, Tax Assistant, LDC and Head Havaldar, and Senior (b) Cadre Controlling Authority for all Group 'B' and Translation Officers were conducted timely and 71 officers 'C' staff cadres of 18 Directorates under CBIC were promoted. and the Junior/ Senior Hindi Translators posted (b) Inspection of Field Formations: DGPM is in CBIC all over India. tasked with inspection of field Commissionerates to (c) To carry out inspections to determine whether ensure that the field offices are working as per CBIC's the working of the field formations is as per policy guidelines. This is ensured through a periodic Indirect Taxes & Customs procedures and to review of Commissionerate records, making an make recommendations in respect to the assessment of how the formation is performing and procedural flaws, if any noticed. issuing inspection note, highlighting the specific shortcomings with observed trends, if any. A copy of the (d) Work related to Tax Arrear Recovery. inspection report is also sent to the zonal Chief (e) Nodal office for implementation of the Rajbhasha Commissioner. The inspected formation is required to Policy in the field formations. send its compliance to ensure that the shortcomings are removed in a time bound manner. III. Performance during the year: Acheivements of 2021-22 (a) Cadre controlling Authority: DGPM is the cadre Controlling Authority for all Group 'B' and 'C' staff (i) As per norms dated 12.05.10, DGPM is to inspect cadres (Executive, Ministerial and Non-Technical) of 18 the Commissionerate headquarter once in three years. Directorates under CBIC in respect of 19 posts ranging Additional inspections would be based on careful profiling of the risk parameters. Each Commissionerate is from MTS (Group C) to Superintendent (Group B, inspected each year by either DGPM or jurisdictional Chief Gazetted). It is also CCA for the Junior Hindi Translator Commissioners. For this DGPM formulates annual and Senior Hindi Translators posted in CBIC across the inspection allocation plan for inspection of the107 GST country. Commissionerate and 57 Customs Commissionerates. Highlights of work done in 2021-22 The details of the inspection to be conducted by DGPM (i) Recruitment Rules of Group C posts of Steno in year 2021-22 is given below: Commissionerate DGPM HQ WRU ERU SRU CRU NRU Total CGST 10 6 5 6 4 8 39 Customs 6 4 3 3 3 2 21 Total 16 10 8 9 7 10 60 (ii) With the advent of GST and changes in Customs, CX.9 dated 24.12.2014, the Directorate General of the existing Inspection Template was revised with Performance Management (DGPM) is the Functional deliberations with RU's of DGPM and inputs from Policy Owner of the reports prescribed under Part V of the MIS Wing of CBIC. The same is being used by DGPM. All Pr. Monthly Performance Report (MPR) of Customs, Central CC/CC were also informed to use New Template in their Excise & Service Tax, covering Key Areas viz. inspections. Adjudication, Call Book, Provisional Assessments, Refund-Rebate & miscellaneous. These monthly reports (iii) A compendium based on important observations are downloaded from MIS web-based utility, complied and made in the Inspection Reports (IRs) of the inspections analysed every month. A note containing our analysis and conducted by DGPM during the FY 2020-21 was prepared comments on the performance of various Zones on the indicating common short comings noticed during above mentioned Key Areas is sent to the Members. inspections. (d) Tax Arrears Recovery (TAR): Tax Arrears (c) Compilation and Analysis of Part V of Monthly Recovery (TAR) was constituted by the CBIC with a view Performance Report (MPR): As per the CBIC's to coordinate, facilitate, monitor and oversee the efforts instructions issued under F.No.296/236/2014-CX.9 (Pt.II) of the Central Excise, Service Tax, CGST & Customs dated 17.09.2015 and Member's DOF No. 296/236/2014- field formations towards recovery of arrears. Apart from 152Department of Revenue III regular monitoring of performance of each Zone and verify the claims submitted with DGFT under Target Plus keeping track of achievement of all India targets, it Scheme. regularly analyses zone-wise data and brings the Acheivements of 2021-22 deficiencies to the notice of the respective Zonal Chief Commissioner with suggestions for taking necessary (i) After introduction of GST as well various changes corrective measures. It provides all necessary inputs and in law, the existing instructions were consolidated and assistance to the DGPM and the CBIC in matters relating updated in form of a Master Circular for effecting recovery to points raised by CAG and other Parliamentary of arrears. Committee's (including PAC). It is the nodal agency (ii) The status of recovery of arrears during the last between CBIC and FIU-India and is also Nodal Officer to 3 years is as below: Recovery of Arrears (Year-wise) [Rs in Crores] Not recoverable due to Total Appeal Clearly Year Target Recovered Restrained Units Closed/ Arrears Period Write- Recoverable Litigation (BIFR/DRT/ Defaulers Not Not off OL etc) Traceable Over 2019-20 9253 6819 272914 206068 24897 11405 222 20168 10151 2020-21 10151 6108 269234 201478 19805 14411 252 25548 7741 2021-22 [Upto 7741 2056 294541 215434 21154 20823 276 27418 9436 30.11.21] (e) Nodal Office for implementation of Official under CBIC through e-office. Language Policy -Hindi 3.11 The Directorate General of Human Resource Acheivements of 2021-22 Development (DGHRD) (i) Eighty-five (85) Official Language inspections of With a view to providing a more focused cadre different formations under CBIC proposed to be management including time bound career progression conducted. in all grades and infrastructure expansion in order to catalyse the Human Resource functions as an engine of (ii) Five meetings of Hon'ble Committee of progress, the Directorate of Human Resource Parliament on Official Language was coordinated Development (HRD) was set up in November, 2008 by and attended. Full assistance was provided to merging the erstwhile Directorate of Organization & the inspected office in preparation of Personnel Management and Directorate General of questionnaire. Housing &Welfare. The new formation was operational (iii) Indraprastha, the departmental e-Magazine was w.e.f. 1st December, 2008. Presently, there are four wings published and uploaded on the website of DGPM in DGHRD namely HRM-I, HRM-II, Infrastructure & as well as circulated to all the field formations Welfare (I&W) and Expenditure Management Cell (EMC). Major Achievements of Infrastructure Wing, DGHRD, for the Year 2020-21 I. Construction projects sanctioned/revalidated during F.Y. 2021-22 S. Project Amount Date of No. Proposal in brief cost released Sanction/ (Rs. in Cr.) (Rs. in Cr.) revalidation Revalidation for construction of office building cum Guest House for Customs 1. 1.24 0.50 07.06.2021 Department at the site of Shore Guard, Dwarka, Jamnagar Revalidation for construction of New Academy of NACIN at Palasamudram (V), 2. 2.00 2.00 15.06.2021 (Hindupur)Ananthpur Dist., Andhra Pradesh (Consultancy work) 153Annual Report 2021-2022 Revalidation for construction of office 3. 43.66 8.00 18.06.2021 building at Jamnagar Revalidation for construction of 4. boundary wall by DRI Zonal Unit, 0.98 0.58 18.06.2021 Lucknow Revalidation for construction of office building for CGST 5. 42.44 6.00 18.06.2021 Commissionerate Kolhapur, at Tarabai Park, Kolhapur Revalidation for construction of new 6. office building for Udaipur CGST office 42.06 8.00 18.06.2021 at Udaipur including GH Revalidation for construction of office building including boundary wall at 7. 116.42 10.00 18.06.2021 allotted land for CBIC offices in Ghaziabad Revalidation for construction of 3 Div. 8. offices and 14 ranges offices on plot 33.24 10.00 22.06.2021 bearing Nos P-34 at MIDC, Boisar. Revalidation for construction of compound wall & office building at 9. 1.30 0.60 23.06.2021 Mamidipally, Near Shamshabad Airport, Hyderabad. Revalidation for construction of office 10. building for DRI Kolkata Zonal Unit at 64.5 10.00 25.06.2021 Kolkata Revalidation for Construction of 11. Office complex at Customs Enclave 495.50 5.00 25.06.2021 Plot, Wadala, Mumbai through CPWD Construction of office building of DRI 12. Zonal Unit at Trustpuram 31.38 0.10 29.06.2021 Kodambakkam, Chennai Revalidation for construction of 13. 9.72 4.52 29.06.2021 office building CGST division Bhilwara Revalidation for construction of New Academy of NACIN at Palasamudram 14. (V), (Hindupur)Ananthpur Dist., 15.14 2.44 02.07.2021 Andhra Pradesh (boundary wall & gate complex) 154Department of Revenue III Payment for providing in new load of 1408KW having BP No. 907775367 at 15. 3.99 3.99 16.07.2021 Plot No. 1, Retail Business Centre, Nangal Raya, Janakpuri, New Delhi Construction of boundary wall on plot allocated to CGST and CX Division 16. 0.29 0.29 04.08.2021 Raebareilly, CGST & CX Commissionerate, Allahabad. Revalidation for construction of office building and 02 nos. residential 17. quarters for CGST Ranges office at 2.05 1.50 04.08.2021 Pandharpur, Distt. Solapur, Maharashtra Revalidation for construction of office 18. building for CGST Comm'te, Cus. Div. 28.04 8.00 13.08.2021 and Agartala Audit Circle at Agartala Revalidation for construction of boundary wall with concertina wire fencing around the land at Solina, 19. 4.14 0.50 18.08.2021 Srinagar for construction of office and residential buildings of Customs & CGST Division, Srinagar. Revalidation for construction of office 20. building at Anantapur, Andhra 7.07 1.30 18.08.2021 Pradesh. Construction of office building for DRI 21. 74.80 0.10 03.09.2021 (HQ.) at Vasant Kunj, Delhi Construction of boundary wall along with levelling work & Borewell for 22. 0.64 0.64 01.10.2021 office building and staff quarters for CGST Division and ranges at Kadapa Proposal for addl. payment for 23. electricity connection charges at 0.04 0.04 01.10.2021 Nangal Raya, New Delhi. Construction of compound wall along 24. with gat for GST office building and 0.33 0.33 13.10.2021 staff quarters at Tirupati Comm'te Revalidation for construction of 25. 227 40.00 07.06.2021 residential qtrs. at Dwarka 155Annual Report 2021-2022 Revalidation for construction of RCC 26. retaining wall in GST Colony along 1.16 0.88 15.06.2021 with back Nallah at JLN Marg, Jaipur Revalidation for construction of 27. residential quarters in the campus of 348.77 80.00 15.06.2021 C.R. quarters at Anna Nagar, Chennai Revalidation for construction of 28. residential accommodation for CBIC 49.02 10.00 18.06.2021 at Nungambakkam, Chennai Revalidation for construction of 187 29. nos. residential qtrs. at Kharghar by 110.11 25.00 18.06.2021 NBCC. Revalidation for construction of residential quarters at Customs 30. 480 5.00 25.06.2021 Enclave Plot, Wadala, Mumbai through CPWD Revalidation for construction of 7 Nos. Type-IV Quarters and Guest 31. 3.95 0.25 06.08.2021 House for Kurnool (Tirupati Comm’te), Andhra Pradesh 32. Revalidation for construction of Residential complex at Land Customs 7.99 1.00 18.08.2021 Station jogbani. Revalidation for construction of 21 nos. of staff quarters, guest House/ 33. 11.85 4.66 18.08.2021 Multi-purpose Hall and Boundary wall at LCS, Raxual Demolition of dilapidated 08 Nos. Type III Quarters (G+3 Building 01 34. block bearing Q. No. 117 to 124) at 0.09 0.09 29.09.2021 Custom Colony, Headland Sada, Vasco, Goa Construction of office building at 35. 43.67 Nil* 18.11.2021 Jamnagar Construction of office building of RTI 36. 46.71 Nil* 18.11.2021 NACIN at Attapur, Hyderabad Construction of additional residential 37. quarters (T-II, T-III & T-IV) at Port 1.62 Nil* 18.11.2021 Area, Tuticorin * The subject proposals for revalidation have been sanctioned on 18.11.2021. The funds are yet to be released by EMC 156Department of Revenue III II Land projects sanctioned/revalidated during F.Y. 2021-22 Date of S.No. Amount Sanction/ Proposal in brief revalidation (in Rs.) during 2021-22 Demand of Rs. 5,02,38,349.76 (Rupees Five Crore Two Lakh Thirty Eight Thousand Three Hundred Forty Nine and Paise Seventy Six only) for renewal of 1) 5,02,38,349.76/- 09.07.2021 lease of plot allotted to Central Excise Department for the purpose of residential houses in Sector-V, Bokaro Steel City by SAIL Bokaro Demand of Rs. 3,85,43,171.60/- (Rupees Three Crore Eighty-Five lakh Fourty-Three Thousand One Hundred Seventy One and paise sixty only) towards payment for 2) renewal of lease along with other charges 3,85,43,171.60/- 20.07.2021 to SAIL Bokaro in respect of plot allotted to Central Excise Department for the purpose of Office premises in Sector-IV, Bokaro Steel City by SAIL Bokaro. Permission for vacating 1.0730 acres of 2,44,27,291/- + land and Administrative approval & Rs. 3000/- 3) Financial sanction for acquisition of 0.8035 yearly payment 08.09.2021 acres of land from Cochin Port Trust of nominal lease (CPT) on lease basis at Fort Kochi – reg; rent Grant of a/a & e/s for payment of Annual Ground Rent in respect of purchase of land on lease basis for 99 years for 4) 1,56,40,063/- construction of office building for DGGI 16.09.2021 Chandigarh Zonal Unit and DRI Ludhiana Zonal Unit – reg. Grant of administrative approval and expenditure sanction for purchase of land from Government of Jharkhand at core 5) 5734506/- 18.10.2021 capital area, Dhurwa, Ranchi for construction of CGST office building at Ranchi, Jharkhand. Acquisition of departmental land for 6) construction of improvement / widening of 562868/- 01.11.2021 2 Lane with pave shoulder/4 lane of NH- 40 between Shillong to Dawki Road 157Annual Report 2021-2022 III. Preservation of Heritage Buildings b) Ex-gratia financial assistance in cases of death of departmental officials while in service. INTACH (Indian National Trust for Art and Cultural Heritage) has been appointed by CBIC as consultancy c) Financial assistance for Promotion of Adventure agency for restoration and conservation of the following Sports. departmental heritage buildings. d) Cash Awards for winning medals/civilian awards 1. The proposal for renovation/ up-gradation of the in sports and financial assistance for participation Custom House, heritage building Kolkata by in sports events/ competitions. INTACH is sanctioned for an amount of Rs. e) Cash Awards to the meritorious children of 62,86,10,000/- and the work is under progress. Departmental officials on the basis of 2. The proposal for renovation/ up-gradation of the performance in the 10th & 12th Board Exams. Old Light House in Puducherry (Heritage building) f) Setting up/ refurbishing of Departmental Guest by INTACH is sanctioned for an amount of Rs. Houses. 3,32,36,000/- and the work is under progress. g) Setting up/ refurbishing of Departmental Gyms/ 3. Goa, Customs building (a.k.a. Blue Building) has Recreation/ Sports centres. been converted into a museum and the proposal for its restoration and renovation by INTACH is h) Setting up/ refurbishing of Departmental sanctioned for an amount of Rs. 1,88,70,445/- Canteens/ Kitchenettes. with the work being under progress. i) Setting up / refurbishing of crèche facilities. Customs & Central Excise Welfare Fund j) Setting up of Hostel facilities. The Customs & Central Excise Welfare Fund and k) Financial Assistance for Preventive and Welfare Special Equipments Fund were created after the sanction measures for fighting against COVID-19. of the President of India in 1987 for the purpose of Highlights of the Performance and Achievements financing various welfare schemes for promotion of under flagship schemes being implemented during welfare of staff and their families and for acquisition of 2021-22 (till November, 2021): anti-smuggling equipment of a specialized nature within the shortest possible time. The Funds are financed by  Ex-gratia: 196 requests of the next of kin of the transfer of 10% of the sale proceeds of confiscated goods deceased/ permanently disabled Departmental credited to the Government and Customs/Excise Duties, officials sanctioned by the Governing Body of the fines, penalties in offence cases realized and sustained Customs & Central Excise Welfare Fund in appeal/revision etc. The funds are allocated in the ratio involving an amount of Rs 10.39 crore have been 1:1 between the two funds. A Governing Body consisting disbursed during the year 2021-22 (till November, of the following members is centrally administering the 2021). Customs & Central Excise Welfare Fund: -  Financial assistance for fighting against COVID- 1. Chairman, CBIC …… Convener 19 in CBIC: 103 HoDs have been granted a total 2. All members of financial assistance of Rs. 1.84 crore under the the CBIC …… Members Scheme for grant of financial assistance for 3. Financial Adviser …… Member preventive and welfare measures for fighting 4. Additional Director against COVID-19 in CBIC during the year 2021- General (I&W) Wing, …… Member-Secretary 22 (till November, 2021). DGHRD  Medical: 97 requests for medical expenses of the Departmental officials not reimbursed under The Governing Body is vested with the authority CGHS/ CS (MA) Rules sanctioned by the for administering the funds in accordance with the policies Governing Body of the Customs & Central Excise and procedures laid down by the Government and the Welfare Fund involving an amount of Rs1.0 crore Rules for administration of the Welfare fund. The Special have been disbursed during the year 2021-22 Equipments Fund is being looked after by Directorate of (till November, 2021). Logistics.  Cash Awards: 75 Cash Awards have been The following Schemes are being implemented sanctioned to the meritorious children of for staff welfare under the aegis of Customs & Central Departmental officials on the basis of their Excise Welfare Fund are as under: performance in 10th and 12th Board Exams, by the Governing Body of the Customs & Central a) Financial assistance for medical expenses which Excise Welfare Fund during the year 2021-22 could not be fully reimbursed under CGHS/ CS (till November, 2021) involving an amount of Rs. (MA) Rules. 8.38 Lakhs. 158Department of Revenue III  Guest Houses: In 2 proposals from the field and designing work of 1st Edition of formations for setting up/ refurbishing of the 'Compendium of Welfare Schemes' was done Guest Houses sanctioned by the Governing Body in the year 2020-21, however it has been formally of the Customs & Central Excise Welfare Fund released by Chairman (CBIC) on the occasion involving an amount of Rs.20.48 Lakh have been of GST Day (01.07.2021). disbursed during the year 2021-22 (till November, b) A new Scheme for Grant of Financial 2021). Assistance for Preventive and Welfare  Gym/ Sports/ Re-creation Centre: One proposal measures for fighting against COVID-19 was from the field formations for setting up of Gym/ launched w.e.f. 01.04.2020 for the Preventive Sports/ Re-creation Centre sanctioned by the and Welfare measures for fighting against Governing Body of the Customs & Central Excise COVID-19 has been approved by Governing Welfare Fund involving an amount of Rs.6.53 Body of Welfare Fund on 31.03.2020 (within a Lakh have been disbursed during the year 2021- week from the declaration of National Lockdown 22 (till November, 2021). by Hon'ble Prime Minister on 24.03. 2020). Three instalments- first @ of Rs. 2,25,000/- per  Canteen facility: One proposal from the field Customs Commissionerate, Rs. 1,50,000/- per formations for setting up of Canteen has been GST Commissionerate and Rs. 75,000/- (per sanctioned by the Governing Body of the HoD) for Directorates, and 2nd and 3rd @ Rs. Customs & Central Excise Welfare Fund 3,00,000/- per Customs Commissionerate, Rs involving an amount of Rs.6.53 Lakh have been 2,00,000/- per GST Commissionerate and Rs. disbursed during the year 2021-22 (till November, 1,00,000/- (per HoD) for Directorates have been 2021). sanctioned by the Governing Body of the Welfare  Crèche facility: One proposal from the field Fund during 2020-21 and 2021-22. formations for setting up of Crèche has been c) A new scheme for Annual Medical sanctioned by the Governing Body of the Examination for Group 'B' and Group 'C' Customs & Central Excise Welfare Fund officials of age 40 years and above was involving an amount of Rs. 2.86 Lakh have been implemented w.e.f. 01/04/2021 after approval disbursed during the year 2021-22 (till November, by the governing body of the welfare fund. 2021). The Scheme covers all the tests which are  Financial assistance for the Subsidized transport presently available to the Group 'A' officers under Annual Medical Examination being implemented facility for the Staff posted at JNCH, Nhava by DoPT, subject to ceiling of Rs 2000/- and Rs Sheva, Raigarh: As reimbursement under the 2200/- for men and women respectively or Scheme for partial funding of the subsidized whichever is less. transport facility for the officers/staff posted at JNCH, Nhava Sheva, Raigarha total amount of d) CBIC's Aashvaasan - CBIC's COVID Rs. 15.88 Lakh was sanctioned by the Governing Response and Outreach Programme: The Body of the Customs & Central Excise Welfare programme envisaged of a coordinated response Fund have been disbursed during the year 2021- by CBIC to the COVID-19 pandemic and its fall 22 (till November, 2021). out for medical aid and humanitarian assistance both in financial terms and by way of supplies of  Cash Award to Sport persons: An amount of Rs. essentials including food and transport to all 5.25 Lakhs was granted to Shri Jagdish Tanwar, members of the CBIC fraternity. Under the Supdt., Customs (Prev.) Jodhpur for winning programme, the Response Teams were set up Silver medal in ITF Young Senior World Tennis at three tiers viz. National, Zonal and Ground- Championship, 2019 held in Miami, USA in level COVID Response Teams. The Names and October, 2019 sanctioned by the Governing Body Contact details of the set members of the teams of the Customs & Central Excise Welfare Fund have been compiled and displayed on DGHRD's has been disbursed during the year 2021-22 (till website for wide circulation for the help of the November, 2021). needy departmental officials. Significant developments/ Policy decisions taken e) Publication of Shraddhanjali: A booklet of during 2021-22 (till November, 2021): obituaries 'Shraddhanjali' in the fond memory of the all the departmental officials who lost their a) The CBIC through the DGHRD has devised and lives due to COVID-19 has been published by administered a number of scheme for the welfare DGHRD. It was formally presented to the Hon'ble of its staff from time to time, so it was decided to Finance Minister on 30.06.2021. e-publish 'Compendium of Welfare Schemes' which is comprehensive guide of all the Welfare f) An online facility has been developed on the Schemes being implemented from the Customs DGHRD's website for real-time updation and & Central Excise Welfare Fund. The compilation monitoring of the data of the vaccination 159Annual Report 2021-2022 against COVID-19 in respect of the of the Departmental officials (in case of death during anti- Departmental officials of CBIC in the wake of evasion/ anti-smuggling/ anti-narcotics operations or 2nd wave of pandemic. death in harness). During the year 2020-21 (till November, 2021), a total of Rs.9.54 crore has been disbursed as g) A new scheme for Persons with Disability ex-gratia financial assistance in 182 cases to the widows (being Departmental officials or their of the employees, who died while in service. dependent family members) for purchase/ fitting of aids/appliances devices has been 2) Relaxation in Cash Award Scheme for girls: framed. The scheme is devised to help persons Under the revised Cash Award Scheme, the girl with dependent disability (PWD) for procuring children of departmental officials are granted enhanced durable, scientifically manufactured, modern amount of Rs. 12,000/-as compared to Rs. 10,000/- sophisticated and standard Assistive Device to granted to boys.During the year 2020-21 (till November, promote their psychological physical, social, 2021), out of total 75 Cash Awards granted, 44 Cash rehabilitation by reducing their physical and Awards (i.e. 58.67%) involving an amount of Rs. 5.28 mental effects of disabilities and at the same Lakhs have been granted to the girl children of time enhance abilities. Departmental officials. h) The posters of the 5 flagship Welfare 3.12 The Directorate General of Taxpayer Services Schemes being implemented from the Customs (DGTS) & Central Excise Welfare Fund have been prepared and designed by the Welfare Division i) An introductory para about the functions/ and have been e-published during the year 2020- working of the organization and set-up of the 21, for popularizing these Schemes and spread Division including its various Advisory awareness to the grass-root level of the Boards and Councils, if any; in a brief and Department, so that maximum benefits can be concise note from; Organization Chart of the reaped by the Departmental officials. Department/Division; Initiatives undertaken for welfare for SC/ ST during In terms of Board's Order No. 02/Ad.IV/2015 2021-22 (till November, 2021): dated 27.8.2015, the Directorate General of Taxpayer Services (DGTS) is entrusted with the Relaxation in Cash Award Scheme: task of coordinating taxpayer services and Cash Awards are granted to children of publicity and information dissemination Department officials on the basis of their performance in requirements of the CBIC. It is headquartered at the Board Examination in 10th and 12th standard. The New Delhi with zonal offices at Ahmedabad, Eligibility criterion (i.e. minimum percentage of marks Bengaluru, Chennai, Kolkata and Mumbai. obtained in Board Exam at 10th and 12th level) has been ii) Para highlighting the performance and relaxed by 10% and 5% for SC/ST category and OBC achievements under the key/flagship categories respectively. During the year 2021-22 (till programmes being implemented by November, 2021), out of 75 total Cash Awards granted, Divisions/Department during the year 15 Cash Awards (i.e. 20%) involving an amount of Rs. PUBLICITY 1.74 Lakhs have been granted to the children of Publicity Activities till 30.11.2021 in F.Y. 2021-22 Departmental officials belonging to SC/ST categories. a) The Compliance Information Portal provides free Initiatives undertaken for Woman Empowerment access to all the Customs regulatory compliance during 2021-22(till November, 2021): and import-export procedures for about 12,000 1) Ex-gratia assistance for widows of Departmental tariff entries. To highlight the positive effects this officials: Directorate has prepared 02 short- videos (01 Launch of the portal and 01 tutorial video). Financial assistance is granted from the Welfare b) GST regime completed 04 successful years on Fund as ex-gratia financial assistance to the next of kin 01.07.2021, to publicize this occasion and make 160Department of Revenue III public aware about the latest achievements under Publicity Activities to be undertaken in the latter part GST regime, this Directorate produced 06 short- of the F.Y.2021-22 videos on the occasion of completion of 4 years 1. Publicity of decisions taken by the 46th GST of GST along with a logo and 10 creatives, Council. circulated to field formations and social media platforms. 2. Publicity of initiatives undertaken by CBIC in the later course of the Financial Year. c) 02 short videos were prepared on Baggage rule for international passengers. 3. Publicity of Government of India's initiative Azadi ka Amrit Mahotsav (AKAM) in the later part of d) 12 testimonial videos were prepared highlighting the financial year. the point of view of trade and industry from CBIC Website various sectors/ walks of life throughout the country on GST. Recognizing the speed and reach of internet and e) 01 short video highlighting the measures taken also popularity of CBIC website, extensive use of CBIC by CBIC to help the industry during COVID-19 website was made for publicity, awareness and was also produced/ released. information dissemination. Information available on this site includes GST Acts & Rules, notifications, circulars, f) The Government, in an initiative to encourage orders, Public Notices, Press Releases, GST Fliers, local manufacturing, revamped the General FAQs, Sectoral FAQs, Overview of GST, Anti- Manufacturing & other operation in Warehouse profiteering etc. Regulation (MOOWR) scheme. To ensure greater public awareness this Directorate has Social Media (As on 30.11.2021) prepared 01 short video on MOOWR. Considering the importance of social media as a powerful means of instant communication with citizens, g) A module for Scheduling Examination of the the Department has effectively used this platform namely containerised cargo at ICDs/Ports was launched Facebook page (CBICINDIA), twitter handle on 11.11.2021 and to highlight the benefits this (@CBIC_India) and Youtube channel (GST_India). Over directorate prepared 01 short video on Module 330 Creatives were released through social media sites for Scheduling Examination. Twitter and Facebook covering varied topics related to h) DGTS has worked as an interface between the AEO; Azadi ka Amrit Mahotsav (AKAM); Clarification on Board and field formation in organizing the Azadi GST; CMP-08; COVID 19; Deferred Payment; e-Invoice; ka Amrit Mahotsav (AKAM) commentating the GST Refunds; HSN Code; QR Code; Section 46 of the 75 years of Independence of India. In this regard Customs Act; GST Returns; Trade Friendly Initiatives by approx. 50 creatives were prepared and shared CBIC; Special Refund and Drawback Drive by Customs with field formations on various events i.e. ensuring liquidity during COVID 19; Turant Customs; Hosting Air Balloon; Commemorating the martyrs 43rd, 44th and 45th GST Council Meeting; GST Day etc. of the Jalianwala Bagh massacre; World Environment day; International Yoga Day; Quit (Projection till 31.03.2022) India Movement etc. Regular reminder of filing GST Returns/ Deferred i) For educating and increasing taxpayers' payment of Customs Duty/ filing of Central Excise Return/ awareness in an effective manner, webinars are payment of duties will be issued along with any conducted regularly by DGTS Zonal units in amendments/ legislative changes/ new initiative association with field formations and trade introduced by CBIC. This Directorate will also carry out organization (FICCI, ASSOCHAM, CII, etc.). publicity campaign to educate the taxpayers/ public at Some of the topics covered are: large about the punitive actions with respect to fake invoices and making them aware about frauds committed  AEO program in name of GST/ Customs officers. As the Country is  Recent GST Relief Measures for Taxpayers celebrating 75 years of independence "Azadi ka Amrit Mahotsav" (AKAM) all the Creatives issued by this  Latest up dates in GST directorate carrying the logo of AKAM, we will also be  Refund in GST and Process of Error rectification preparing few AKAM oriented Social media Campaign.  RoDTEP Scheme and RoSCTL Schemes, RTI AND PUBLIC GRIEVANCES Implementation and functionality This Directorate is the nodal agency under CBIC  e-Filing of GST Appeal on GSTN Portal & Recent to monitor the progress of filing of quarterly returns by Changes in GST Refund Module public authorities under CBIC on the website of Central Information Commission (CIC) as required under Section  Manufacturing in Customs Bonded Warshouse 25(2) of the RTI Act, 2005. It was ensured that all the DGTS has organized more than 50 Webinars in field formations under CBIC uploaded their RTI Quarterly a span of last 8 months time. Returns on the CIC website. During the period, 161Annual Report 2021-2022 applications received under the RTI Act, 2005 were newly recruited IRS (C&IT) Group 'A' officers selected efficiently handled. Public Grievances received by this through Civil Service Examination conducted by UPSC. Directorate were processed/ forwarded to the appropriate Since last two decades NACIN is conducting complete formations for further action. professional training of Officer Trainees of IRS (C&IT). TAXPAYER SERVICE CENTRES iii. In addition, NACIN through its 18 Zonal/ Regional Campuses in 15 state capitals, and 03 major cities, One of the mandates of DGTS has been to set conducts the training programs for the capacity building up Taxpayer Service Centres in all Commissionerates. as well as enhancing of skills in-service officers. Vigorous follow-up has ensured setting up of Taxpayer Services Centers in the Commissionerates of Central Tax, iv. NACIN also conducts the Mid-career training Customs & Central Excise. programs at regular time intervals for the officers to enable them to discharge their responsibilities effectively as per PUBLIC GRIEVANCE OFFICERS their changed roles and positions. The zonal/ regional Public Grievance Officers have been designated campuses of NACIN also provide induction training to in all the Commissionerates across the country and details the newly recruited Group B and C officers. are available on CBIC website. The Citizens' Charter v. NACIN was also mandated by the Government provides for appeal to superior officer in the event of to provide GST training to all officers under CBIC and unsatisfactory response from Public Grievance Officer. officers from States, Union territories and other Accordingly, contact details of the superior officer have stakeholders at the time of the introduction of GST. also been posted on the website for the benefit of taxpayers. 3.13.1 Achievements: PUBLICATIONS The following are the major milestones in NACIN's journey towards excellence in FY 2021-22: The Directorate brought out following publications at the behest of CBIC and other formations: I. Officer Trainee (OT) Cell Taxpayer Information Publications (till 30.11.2021): a. Officer Trainees (OTs) of the Indian Revenue Service (Customs & Indirect Taxes) undergo Compendium of welfare scheme; Shraddhanjali Induction Training which comprises of classroom Booklet; Swachta Uday Booklet; WTO agreement on training as well as functional modules in the area Trade Facilitation; CIP Portal and Faceless Customs; of Customs, Central Excise & Service Tax, Goods Athithi App; IGCR Rules; MOOWR scheme; RoDTEP & Service Tax, Narcotics and matters pertaining Scheme; RoSCTL Scheme; Composition Levy Scheme; to various allied Acts. The Induction Training also QRMP Scheme; e-Way Bill; Job work under GST; Refund comprises of attachments with various agencies in GST; e- Invoice; Initiatives for MSME sector etc. such as CRPF Academy Gurugram, Wildlife 3.13 National Academy of Customs, Indirect Taxes Institute of India Dehradun, Central Bureau of & Narcotics (NACIN) Narcotics Gwalior, National Law School of India University Bhopal, Coast Guard, etc. where the OTs learn from domain experts to tackle the i. National Academy of Customs, Indirect Taxes & future challenges of their service. The training Narcotics (NACIN) is the apex institute of Government programme has been revamped with more focus of India for capacity building in the field of indirect taxation. on participative approach in place of theoretical It also plays a vital role in international capacity building classroom training to enable the OTs become by imparting training to officers of various countries in functionally competent with skill sets required to the field of Customs, drug laws and environment discharge their duties. In furtherance of this protection. NACIN is the World Customs Organization objective, the OTs after conclusion of their (WCO) Regional Training Centre (RTC) for the Asia classroom training and attachment programmes Pacific Region. United Nations Environment Program are sent to GST & CX field formations for On- (UNEP) has designated NACIN as a collaboration center the-Job Training (OJT) with aim to acclimatize for capacity building in the field of environment protection. them with hands-on working of the Department. In collaboration with United Nations Office on Drugs & Crime (UNODC), NACIN is imparting training on drug b. The onslaught of second wave of COVID-19 law enforcement to various Asian nations. The confronted the Academy with unique challenge Government of India has entrusted NACIN the as Induction Training of 72nd Batch of IRS (C&IT) responsibility of knowledge exchange, experience sharing was underway at that time. The Academy took and training with various countries of the world. the challenge head-on and responded in ii. The charter of functions of NACIN issued by proactive and dynamic way by realigning CBIC mandates training of not only the officers working components of the training programme. Most of under CBIC but also of the officers from other the training components were moved online departments, ministries, and other stakeholders. NACIN's during the COVID wave in order to ensure that flagship program is to conduct the Induction Training of sufficient time is available later on to complete 162Department of Revenue III the practical exposure (given by way of Goods & Services Tax, Dispute Settlement, attachments in the field formations) as and when Financial Investigation, Electronic Data the COVID wave subsided. Ultimately, the Interchange, Cyber Forensics, Drug Law classroom training and the attachments were Enforcement to name a few. The special trainings completed in such a manner that frequent travel were organized this year in ADVAIT for the could be avoided without compromising on officers who would go a long way in deploying learning and exposure of the Officer Trainees. data analytics for curbing evasion. The Academy in its endeavour to give the OTs b. Online training is the new norm across the the best possible learning exposure went a step training institutes after outbreak of COVID-19. further and introduced as well as conducted for Apart from distance learning benefits, the online the first time a new attachment with National trainings are cost-effective as the trainee officers Intelligence Academy (NIA), Dwarka, New Delhi need not travel. Further, the expert faculty can for the 72nd Batch in order to sensitize the OTs be invited for online sessions irrespective of on the important issues concerning national geographical restrictions. However, paying security, terror funding, secret enquiry, security attention to online classes is a real challenge for perspective of foreign investment, etc. the trainee officers. It is observed that short online c. The Academy trains two Batches of IRS (C & trainings are more effective way of teaching as it IT)-previous Batch and current Batch is difficult to maintain concentration after a span simultaneously. The previous Batch (71st) of the of one hour. The new training programmes have OTs after completing their On-the-Job Training been launched by Zonal Institute, Bhopal like joined back the Academy to complete their MANTHAN- thought-provoking topics by eminent Furbisher Course from 06.12.2021 to speakers, MASTERCLASS- from experts in 24.12.2021. The idea behind the Furbisher specialized subject, BHAGIDAR-an Outreach Course inter alia is giving the OTs a platform to programme fot trade on GST issues, have interactions with eminent personalities from SANTULAN- on work-life balance, HAR important walks of life. The Furbisher Course was BUDHVAR GST WAR and likes. An onsite completed with fulfilment of planned objectives 'customized training module' was introduced for culminating with Passing-out Parade on imparting training to Customs officers posted at 24.12.2021 which was attended by the Chairman International Airports all across the country by and Members of the CBIC along with other senior Zonal Institute, Mumbai. Multi Disciplinary School officers of the Department. of Economic Intelligence (MDSEI) as a Centre of Excellence has been established at Mumbai, II. In-Service Training & Short online training focussing on capacity building for combating sessions economic crimes through knowledge a. In-service training is a vital component of all dissemination. Under the aegis of MDSEI, the trainings conducted by NACIN. It is here that trainings in Blockchain Technology and Crypto individual topics are covered in much detail, Currency and Collection analysis and Handling helping the officers in their day-to-day work. of Intelligence and Evidences in a Digital World NACIN conducts demand-driven, short duration were conducted. The special trainings were courses of 1 to 5 days in contemporary and organized in ADVAIT for the officers who would emerging areas for CBIC officers along with go a long way in deploying data analytics for Indian Audit and Accounts Service (IA&AS) and curbing evasion. Zonal Campus Delhi has Indian Trade Service (ITS) Probationers, Indian introduced technology based quiz application Airforce officers, State GST officers. The topics such as KAHOOT, to make learning more range from a variety of areas like Trade effective and participatory rather than Facilitation, Prevention of Money Laundering, monotonous. Green Customs, Intellectual Property Rights, c. Due to sustained efforts NACIN could impart Customs Conventions, Prevention of Wildlife following trainings to in service officers in respect trafficking, Data Analytics, Stress management, of GST as well as other areas: Sr. No. Trainings No. of trainings No. of Officers Trained 1 GST 428 32533 2 In service training 860 42792 This result was achieved despite lockdown during COVID time and disruptions caused due to strict protocol issued by government during current financial year. d. Mid Career Training Program (MCTP) three batches from August, 2021 to December, Phase-III of MCTP-2021-22 was conducted by 2021. NACIN through Partner Institute IIPA, New Delhi e. International cooperation & Training Cell has wherein 118 IRS(C&IT) Officers participated in conducted 4 online trainings in cooperation with 163Annual Report 2021-2022 US Department of State, wherein 117 CBIC October to 2nd November, 2021 in coordination officers participated. Under MoA with Ozone Cell, with LBSNAA. 33 officers of the IRS (C&IT) from ICT cell conducted 1 online Supervisory 2000 & 2001 batches participated in the workshop under HPMP stage-II at ZTI, Delhi, programme which involved a hybrid on-line and wherein 23 CBIC officers participated. physical training. Online courses by MIT and f. iGOT Karmayogi University of London on the topics 'Leading From the Emerging Future' and 'Global Energy and  On 2nd September 2020, the Union Cabinet Climate Policy' respectively were made approved 'Mission Karmayogi' - the National mandatory before participation in Common Programme for Civil Services Capacity MCTP. Building (NPCSCB). This is termed as the biggest and most comprehensive post- iv. E-Prayogshala:"E-prayogshala", an 18 seater recruitment Human Resources Development digital forensics lab has been established for reform in the Government. iGOT Karmayogi training officers on forensic software used for portal is the Launchpad for the NPCSCB. Its acquiring, processing, analysing, and reporting an online learning platform that shall provide of data at Zonal Campus, Vadodara. anytime-anywhere learning to train more than v. Standard Operating Procedure to store/locate/ two crore civil servants. retrieve videos of online training has been  NACIN has uploaded content on 5 topics on formulated by Zonal campus, Hyderabad to Indirect Taxation of 55 hours on iGOT portal. streamline the process of lecture recordings. Content of 62 competencies has been vi. A modern air conditioned auditorium with state validated and is ready for creation by of the art acoustics and audio- visual apparatus Instructional Design Agency. has been constructed at the cost of Rs. 3.7 crore 3.13.2 Initiatives: (approx) with a seating capacity of 209 persons with separate facility for a modern pantry at Zonal i. New NACIN complex at Hindupur: a/a and e/s Institute, Bengaluru. granted by Competent Authority: vii. "Plant and adopt a tree" scheme is a novel With the exponential growth in the role and duties initiative started and implemented by NACIN, of CBIC personnel for giving central direction to Bengaluru at the new Hindupur campus. indirect tax policy formulation and collection, the responsibility of NACIN in capacity building has viii. COPS-26 workshop: NACIN, Bengaluru also increased manifold. The existing space and conducted a unique workshop named COPS-26 facilities are therefore inadequate to support the in December 2022. This workshop was aimed at institutional goals and organization's vision, as providing a sneak peek into the plans undertaken also its commitment to the International Customs by the world community to keep the planet earth fraternity for partnerships and collaborations. To livable for progeny by reducing Carbon emission overcome the inadequacies of space, facilities, which directly affects global warming. other modern training tools and to raise the ix. "Kaavish", a bi-monthly e-magazine has been capacity building standards to global level with started by NACIN Vadodara, for in-department new and enhanced facilities like Field Training circulation. The magazine is a compilation of the Centers, Marine Training Center, Research following: Centre etc., NACIN has taken up the project of a. Courses conducted by NACIN Vadodara building a new State-of-the-Art campus at b. Tribute to the legends of our department Hindupur, Andhra Pradesh. In the year 2021-22 the Project, as proposed to be constructed by c. Eminent Faculties CPWD, was approved by the Project Investment d. Landmarks/festivals Board (PIB) headed by the Finance Secretary e. Achievements by the department as well as after due verification by DGHRD and vetting by officers IFU, DoR. As a result, Administrative Approval 3.13.3 Conclusion: and Expenditure Sanction of Rs.702.27 crore has been accorded for Phase-I of the project by the This year's endeavours as above have been in Hon'ble Finance Minister on 01.12.2021. sync with the NACIN's mandate for capacity building and upgradation of not just officials of CBIC but also in true ii. BRICS Capacity building Workshop- A first of its spirit of MISSION Karmayogi, imparting training and kind capacity building workshop was organized sharing expertise across the public servants and various from 22.11.21 to 26.11.21 by NACIN ZTI stakeholders of Indirect Taxation regime at pan India level, Bengaluru in its capacity as the Regional Training and even across national boundaries. These initiatives Center (RTC) of WCO among the BRICS would equip the human resource of CBIC in the technical Member nations. The workshop marked a new and intellectual aspects. beginning in the relation among BRICS nations and covered a wide range of topics on Customs 3.14 DIRECTORATE GENERAL OF VIGILANCE: for capacity building. 3.14.1 ROLE & FUNCTIONS OF DGoV: iii. Participation in the First Common MCTP with The vigilance work in CBIC is administered and theme 'Leading to Learn' was conducted in two supervised by the CVO through the twin wings of the batches from 26th to 31st October, 2021 and 29th vigilance set up of CBIC, viz Directorate General of 164Department of Revenue III Vigilance (DGoV) and Ad.V Section in the CBIC, with each iii. Carving out a legal vertical during the AGT 2021 performing its set of functions as summarized below: exercise to deal with the CAT/Court related vigilance matters. An ADG rank officer assisted A. DGoV: by a Deputy Commissioner rank officer have i. To handle vigilance related work and processes been deputed to ensure timely and expeditious uptil pre-charge memorandum stage; handling of legal matters of Ad.V Section; ii. To monitor the vigilance cases under officers of iv. Extension of CBIC's E-sevavivad portal for the various formations under CBIC; service matter litigation to vigilance litigation iii. To maintain proper surveillance on the officers matters to monitor its legal cases pending at the of doubtful integrity; various legal fora and for better synergy with the field formations. iv. To maintain close liaison with CVC & CBI on B. Pro-active steps to sensitize field formations various vigilance related matters; and monitor progress of Disciplinary v. To carry out various preventive vigilance Proceedings: activities, like Surprise Checks, Vigilance Audits In 2021, some of the notable efforts made to etc. sensitize field formations on various aspects of B. Ad.V Section, CBIC: disciplinary proceedings included: i. To handle the disciplinary proceedings of all i. SOPs for effective and timely handling of court Group 'A' officers starting from issuance of cases on disciplinary matters to protect the charge memorandum till their conclusion; interests of the government were issued to all ii. To conclude the disciplinary proceedings of all field formations; retired officers; ii. Sensitization of all IOs on the option to invoke the existing Departmental Inquiries (Enforcement iii. To handle entire work related to suspension of of Witnesses & production of Documents) Act Group A officers; by Inquiry Authorities to secure the attendance iv. To maintain liaison with UPSC, DOP&T & Law of the witnesses, as the same is not being Ministry on various vigilance related matters; and invoked by the Inquiry Authorities due to lack of v. To grant vigilance clearance to Group A officers. awareness about this provision; 3.14.2 INITIATIVES TO IMPROVE PERFORMANCE: iii. Structured interaction through video conferences with Disciplinary Authorities and Inquiry Officers Concerted efforts have been made to spruce up to take stock of the pendency position and vigilance administration in CBIC in the current year, nudging them to expeditious finalization of the namely: proceedings; A. Improvement in business processes: iv. Close monitoring to ensure timely implementation i. Successful roll out on 01 June 2021 of e-office of penalty orders passed on conclusion of in DGoV as well as Ad. V has contributed in disciplinary proceedings; improving the efficiency levels as well as giving 3.14.3 ACHIEVEMENTS: impetus to transparency and accountability in The above measures have contributed to the administration; exponential improvement in the year-on-year ii. Decentralization of work related to disciplinary performance of DGoV in vigilance matters. There has cases of retired non Group 'A' officers under been a high rate of disposal in the key vigilance related erstwhile Rule 9 of CCS (Pension) Rules to DGoV work areas, such as finalization of inquiries, submission zonal units on 29 September 2021. This of cases to UPSC and issuance of final orders etc., which measure, and the new and revised work flow has been appreciated also by CVC in their review design, will optimize the work load at Board and meetings, wherein disposal of cases in Block Years 2000- Zonal units level and will help in expediting the 2010, 2011-2018 and 2019 to date were taken up for close completion of proceedings; scrutiny. The major achievements in 2021 (From 1.1.2021 to 31.12.21) are given below: S. KEY AREA OF WORK YEAR ON YEAR No. PROGRESS 2020 2021 1 Final Orders issued on conclusion of Disciplinary 172 226 Proceedings - Major Penalty Cases 2 Final Orders issued on conclusion of Disciplinary 54 70 Proceedings - Minor Penalty Cases 3 Prosecution sanctioned 44 69 4 Complaints Handled 565 1401 5 Vigilance clearance given (references) 1430 1834 In 2021, 206 Departmental inquiries were completed and they are at different stages of Disciplinary Proceedings. These initiatives would further contribute to enhancing CBIC's image as a responsive and efficient administration and would also improve our compliance commitments to CVC. 165Annual Report 2021-2022 4. Revenue Headquarters Administration  Chairman, Vice Chairman and Members of CCESC 4.1 Administration  Director General of CEIB The Revenue Headquarters looks after matters relating to all administrative work pertaining to the  Director of Enforcement Department, coordination between the two Boards (CBIC  Competent Authorities (SAFEMA and NDPS) and CBDT), the administration of the Indian Stamp Act 1899 (to the extent falling within the jurisdiction of the  Director (FIU-IND) Union), the Central Sales Tax Act 1956, Goods and  Chairperson and Member of Adjudicating Services Tax (GST) Act, 2017, the Narcotic Drugs and Authority set up under PMLA Psychotropic Substances Act 1985 (NDPS), the Smugglers and Foreign Exchange Manipulators  Chairman and Members of "Appellate Tribunal" (Forfeiture of Property) Act 1976 (SAFEMA), the Foreign established under SAFEMA, 1976. Exchange Management Act 1999 (FEMA), the  CVO, CBDT/ CBIC/ ED Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA), the 4.2 Directorate of Enforcement Prevention of Money Laundering Act, 2002 (PMLA) and 4.2.1 Introduction matters relating to the following attached/ subordinate 4.2.1.1 The Directorate of Enforcement (ED) is the offices of the Department: premier law enforcement agency of the Government of India which has been entrusted with the administration a. Enforcement Directorate and enforcement of the Prevention of Money Laundering b. Central Economic Intelligence Bureau (CEIB) Act, 2002 (PMLA), Foreign Exchange Management Act, 1999 (FEMA) and the Fugitive Economic Offenders Act, c. Competent Authorities appointed under SAFEMA 2018 (FEOA). The ED is the nodal agency for collection and NDPS of intelligence, carrying out research and analysis and d. Chief Controller of Factories conducting financial investigation for cases involving money laundering, bank frauds, financial scams, foreign e. Central Bureau of Narcotics exchange violations etc. Under the provisions of PMLA, f. Customs, Excise and Service Tax Appellate the officers of the ED investigate and prosecute the Tribunal (CESTAT) persons involved in money laundering, attach the proceeds of crime and carry out international cooperation g. Appellate Tribunal under SAFEMA with competent authorities in foreign jurisdictions including h. Customs and Central Excise Settlement recovery of assets stashed abroad and extradition of Commission (CCESC) fugitives. The ED is also entrusted with the responsibility to investigate, adjudicate and impose penalty if any i. National Committee for Promotion of Social and person violates the provisions of FEMA and launch Economic Welfare prosecution in appropriate cases. j. Financial Intelligence Unit, India (FIU-IND) 4.2.1.2 In the recent past, the work of Directorate of k. Adjudicating Authority under Prevention of Money Enforcement has increased considerably both qualitatively and quantitatively. Investigations have Laundering Act commenced in several high-profile cases with positive l. National Institute of Public Finance and Policy results in terms of attachment and confiscation of (NIPFP) proceeds of crime related to bank fraud, corruption, drugs & human trafficking and terror financing etc. The following items of works are also undertaken by the Headquarters: 4.2.2 Functioning of the Directorate 4.2.2.1 The primary function of the Directorate of Appointment of - Enforcement is administration and enforcement of the Prevention of Money Laundering Act, 2002 (PMLA)  Chairman and Members of CBIC and CBDT including investigation into the offence of money  Chairman, Vice Presidents and Members of laundering, filing of prosecution complaint before the special court against the accused, attachment and CESTAT confiscation of property involved in money laundering, 166Department of Revenue III carrying out international cooperation with competent Economic Offenders Act, 2018 (FEOA). The FEOA authorities in foreign jurisdictions ensuring that the provides for the measures to deter the fugitive economic accused persons do not enjoy the proceeds of crime. offenders from evading the process of law in India by Unlike in many other countries, in India, ED has the sole staying outside the jurisdiction of Indian Courts and to jurisdiction to investigate the money laundering cases and preserve the sanctity of the rule of law in India. Action the Law Enforcement Agencies (LEAs) having the under the said Act can be initiated against economic responsibility to investigate a "predicate offence", offenders who have left India so as to avoid criminal including the State Police Authorities, are required to prosecution or who, being abroad, refuse to return to India make a reference to ED to examine the money laundering to face criminal prosecution and the total amount involved aspect of the criminal activity. In certain cases, the fact in the economic offence is more than Rs. 100 crore. that a predicate offence has taken place is also obtained 4.2.3 Organizational Structure from publicly available sources or on receipt of information from the Financial Intelligence Unit (FIU). On receipt of 4.2.3.1 The Directorate of Enforcement is headed by the the reference or information and after making certain Director, who is not below the rank of Additional Secretary preliminary verification, ED records a case and initiates to the Government of India. He is assisted in his work at investigation (Enforcement Case Information Report or the Headquarters by officers of all ranks. Sanctioned the ECIR) following a risk based approach taking into strength of 04 Special Directors, 11 Additional/Joint consideration factors such as materiality of the offence, Directors and a number of other officers/staff is available transnational nature of the crime, complexity of the case, in HQ to assist the Director, ED. The Headquarter office the larger public interest and the availability of resources. (HQ) of ED is situated in New Delhi. The functional Investigation under PMLA generally covers collection of establishment of ED is divided into 05 Regions located information/evidence from public domain, other at Chandigarh (Northern Region), Chennai (Southern investigating agencies (Predicate Offence Investigating Region), Delhi (Central Region), Kolkata (Eastern Region) Agency (LEAs), Income Tax Department, Customs and and Mumbai (Western Region). Each region is headed Indirect Tax Department, Ministry of Corporate Affairs, by a Special Director. Apart from the above Regions, a Serious Fraud Office, SEBI, etc.), financial institutions, special Unit named as Headquarters Investigation Units banks, District Sub Registrar office, etc. as well as using (HIUs) headed by the Special Director and Special Task investigative tools as provided under PMLA. Identification Force (STF) headed by the Additional Director are also and quantification of proceeds of crime and involvement functioning at the Headquarters office, having pan India of person/ entities in any process or activity connected jurisdiction. Regions are constituted by Zone(s) headed with proceeds of crime are main requirements for proving by Additional Directors/Joint Directors and Sub-Zone(s) offence of money laundering as well as for punishment headed by Deputy Directors. Sub-Zones are controlled for money laundering offence. by respective Zones. Zones and Sub-Zones function over the specified jurisdiction for the purpose of Enforcement 4.2.2.2 The Directorate of Enforcement is also entrusted of various entrusted Acts. with the implementation of the Foreign Exchange Management Act, 1999 (FEMA) whose object is to 4.2.3.2 The Regional Special Directors are assigned with consolidate and amend the law relating to foreign the role of supervising and monitoring the overall working exchange for facilitating external trade and payments and and functioning of the zonal offices of the Directorate for promoting the orderly development and maintenance falling under their jurisdiction, located at various cities of foreign exchange resources. ED initiates investigations within the Region and other administrative matters. and issues Show Cause Notices (SCN) in cases where Similarly, the Zonal Additional/Joint Directors are the allegations of contravention of provisions under FEMA responsible for the overall supervision and functioning of are notices. These SCNs upon adjudication results in the FUs under their jurisdiction including the Sub-zones. imposition of penalty as well as confiscation of currency/ The sub-zonal offices are headed by Deputy Directors property involved. and they report to the zonal Additional/Joint Directors. 4.2.2.3 The Directorate of Enforcement has also been 4.2.3.3 The detailed territorial Jurisdiction of the offices entrusted with the implementation of the Fugitive of the Directorate is as under:- 167Annual Report 2021-2022 Northern Region - Regional Office: Chandigarh SI. Zonal Office Sub Zonal Office Territorial Jurisdiction No. (Headed by (Headed by Deputy Additional /Joint Director) Director) 1. Chandigarh-I (CDZO-I) U. T. of Chandigarh along with Panchkula; State of Himachal Pradesh (Shimla Sub Zonal Office) Shimla (SHSZO) Himachal Pradesh 2. Chandigarh-II (CDZO-II) States of Haryana (excluding city of Panchkula and districts of Gurgaon, Faridabad, Bahadurgarh, Rohtak and Sonipat) and Uttarakhand (Dehradun Sub Zonal Office) Dehradun (DNSZO) Uttarakhand 3. Gurgaon (GNZO) 5 Districts of Haryana: Gurgaon, Faridabad, Bahadurgarh, Rohtak and Sonipat 4. Jalandhar (JLZO) Punjab 5. Jaipur (JPZO) Rajasthan 6. Srinagar (SRZO) Jammu & Kashmir and Ladakh (UTs) Jammu (JMSZO) Jammu & Kashmir (6 Districts of Jammu, Doda, Kathua, Poonch, Rajouri and Udhampur) Central Region - Regional Office: Delhi SI. Zonal Office (Headed Sub Zonal Office Territorial Jurisdiction No. by Additional /Joint (Headed by Deputy Director) Director) 1. Delhi-1 (DLZO-I) FEMA — Police Districts - East District, North-East District, Shandara District, Outer District, North-West District, Rohini District, North District, Metro, Railways. PMLA — All cases involving predicate offences registered by CBI, DRI, Customs & SEBI 2. Delhi-II (DLZO-II) FEMA — Police Districts - South District, South-- East District, South-West District, West District ,Central District, New Delhi District, Dwarka, IGI Airport. PMLA — All cases involving predicate offences registered by Delhi Police, NIA, NCB, Income Tax & any other Law Enforcement Agency. 168Department of Revenue III 3. Lucknow (LKZO) Uttar Pradesh 34 Districts of Uttar Pradesh: Allahabad, Ambedkar Nagar, Azamgarh, Ballia, Banda, Basti, Balrampur, Chandauli, Chitrakoot, Deoria, Faizabad, Fatehpur, Gonda, Gorakhpur, Ghazipur, Hamirpur, Jhansi, Jalaun, Jaunpur, Kaushambhi, Kushinagar, Lalitpur, Maharajganj, Mau, Mirzapur, Mahoba, Pratapgarh, Sravasti, Sidharthnagar, Sultanpur, Sant Kabir Nagar, Sonebhadra, Sant Ravi Das Nagar & Varanasi 4. Patna (PTZO) Bihar 5. Ranchi (RNZO) Jharkhand Eastern Region - Regional Office: Kolkata SI. Zonal Office (Headed Sub Zonal Office Territorial Jurisdiction No. by Additional /Joint (Headed by Deputy Director) Director) 1. Kolkata-I(KLZO-I) Police Districts of Kolkata City 2. Kolkata-II (KLZO-II) All Police Districts of West Bengal (except Kolkata city), Sikkim (including Sikkim Sub Zonal Office) and UT of Andaman & Nicobar Islands Gangtok (GKSZO) Sikkim 3. Bhubaneshwar (BBZO) Odisha 4. Guwahati-I (GWZO-I) Assam 5. Guwahati-II (GWZO-II) States of Meghalaya, Arunachal Pradesh, Nagaland, Manipur, Mizoram and Tripura Agartala (AGSZO) Tripura Aizawl (AZSZO) Mizoram Imphal (IMSZO) Manipur Itanagar (ITSZI) Arunachal Pradesh Kohima (KHSZO) Nagaland Shillong (SGSZO) Meghalaya 169Annual Report 2021-2022 Western Region: Regional Office: Mumbai SI. Zonal Office (Headed Sub Zonal Office Territorial Jurisdiction No. by Additional /Joint (Headed by Deputy Director) Director) 1. Mumbai-I (MBZ0-I) Mumbai city and Mumbai suburban areas 2. Mumbai-II (MBZO-Il) Maharashtra (except Mumbai city and Mumbai suburban areas) Nagpur (NGSZO) Maharashtra (24 Districts of Nagpur Bhandara, Gondia, Chandrapur, Gadchiroli, Wardha, Amravati, Yavatmal, Akola, Washim, Hingoli, Nanded, Buldana, Parbhani, Jalgaon, Jalna, Beed, Latur, Aurangabad, Osmanabad, Ahmednagar Nasik, Dhule & Nandurbar) 3. Ahmedabad (AMZO) Gujarat, UTs of Daman & Diu, Dadra &Nagar Haveli Surat Gujarat (07 districts of Surat, Valsad, Naysari, The Dangs, Tapi, Narmada &Bharuch) , UTs of Daman & Diu, Dadra & Nagar Haveli 4. Bhopal (BHZO) Madhya Pradesh (including Indore Sub Zonal Office Indore(INSZO) 11 Districts of Indore ,Ujjain, Ratlam, Jhabua, Alirajpur, Dhar, Barwani, Khargone, Burhanpur, East Nimar, Devas. 5. Panaji (PJZO) Goa 6. Raipur (RPZO) Chhattisgarh Southern Region: Regional Office: Chennai SI. Zonal Office Sub Zonal Office (Headed Territorial Jurisdiction No. (Headed by by Deputy Director) Additional /Joint Director) 1. Chennai-I (CEZO-I) Chennai metropolitan area of Tamil Nadu 2. Chennai-II (CEZO-II) Tamil Nadu (except Chennai metropolitan area) and UT of Puducherry Madurai (MDSZO) Tamil Nadu (14 districts of Madurai, Dindigul, Theni, Trichy, Karur, Ariyalur, Perambalur, Virudhanagar, Tirunerveli, Pudukottai, Tuticorin, Sivagangai, Ramanathapuram & Kanyakumari) 170Department of Revenue III 3. Bangalore (BGZO) Karnataka Mangalore (MGSZO) 15 District of Dakshin Kannad, Bagalkot, Belgaum, Bellary, Bidar, Bijapur, 4. Kochi (KCZO) gadag, Haveri, Davangere, Dharwad, Gulburga, Karwar, Koppal, Udupi & Raichur) Kerala and UT of Lakshadweep Kozhikode (KZSZO) 7 districts of Kasargode, Kannur, Wynad, Kozhikode, Malappuram, palghat & Trichur) 5. Hyderabad (HYZO) States of Andhra Pradesh & Telangana Visakhapatnam(VKSZO) 13 districts of Visakhapatnam, Vizianagaram, Srikakulam, East Godavari, West Godavari, Krishna, Guntur, Prakasam, Nellore, Kurnool, Anantapur, Chittoor & Cuddapah 4.2.3.4 The hierarchy of executive wing in the Directorate is represented as under: 4.2.3.5 The present organizational structure of the Directorate is explained through charts presented hereunder: 171Annual Report 2021-2022 crimes, international hawala, terror financing and drugs 4.2.3.6 The offices of the Directorate of Enforcement trafficking. The Directorate has set up offices in all the located all over India ensures that the money laundering seven sisters of North-East (07 states under North- offences are investigated in an effective manner and it Eastern Region). also acts as deterrence for the potential offenders of money launderers. 4.2.4 Performance of Directorate of Enforcement in the area of PMLA 4.2.3.7 Considering the strategic importance of North- East Region, Directorate of Enforcement has The work done by ED in the area of PMLA is summarized strengthened its presence and intensified anti-money in the following Tables: laundering activities including cross border financial Table 1: ECIRs Recorded, Attachments Made and Prosecution Complaints filed Topic 1.7.05 to 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020-21 2021- Total 31.03.12 13 14 15 16 17 18 19 20 22(upto 30.11.21) No. of cases 1437 221 209 178 111 200 148 195 562 981 395 4637 recorded (ECIR) No. of PMLA 38 11 55 69 74 101 103 216 51 130 59 907 Prosecution Complaints filed No. of 131 65 130 166 105 180 196 181 160 173 121 1608 Provisional Attachment Orders (PAOs) issued No. of PAOs 108 52 57 138 117 118 179 187 144 62 103 1265 confirmed Value of 1215 2358 1773 3657 2000 11032 7432 15490 28815 14107.59 8989.26 96868.85 Assets under attachment (Rs. in crore) Value of 9601 326 1395 2151 2952 9189 5086 13175 7449 7104.22 5779.13 64207.35 assets under PAO confirmed by Adjudicating Authority(Rs. in crore) After the Provisional Attachment is confirmed by the Adjudicating Authority wherein it is held that the property is involved in money laundering, the Directorate of Enforcement takes possession of the property and the offenders do not enjoy the property and thus it no longer remains a “provisional measure” Table 2: Number of summons issued, searches conducted and persons arrested under PMLA Financial Year Number of summons Number of searches Number of persons arrested issued conducted under PMLA 2016-17 4567 226 31 2017-18 5837 368 38 2018-19 9175 519 24 2019-20 10668 335 41 2020-21 12173 596 78 2021-22(till 11252 572 54 30.11.2021) 172Department of Revenue III Table 3: Money Laundering Investigation (ECIR) under different categories of offences (as on 30.11.2021) Category of Offence Corresponding provisions Number of Number of Amount of under the predicate Act cases cases proceeds investigated prosecuted seized or frozen/ attached (Amount in Crores ) Offences related to Illicit NDPS Act 590 23 152.01 Trafficking in Narcotics Drugs & Psychotropic Substances Offences against the State IPC 121-121B 25 03 1.47 Offences relating to IPC 255-260 09 00 4.78 Counterfeiting Offences relating to Murder, IPC 302-414 87 23 245.6 Grievous Bodily Injury, Kidnapping, Extortion, Stealing, Robbery etc. Offences related to Cheating, Bank fraud 769 144 40923.364 Fraudulent Deeds and Disposition of Property, Forgery Siphoning of Government 193 63 825.95786 etc. (IPC 417-488) Funds Ponzi Scheme/ Duping of 297 74 16798.98 Investors Others 1024 175 17452.975 Offences relating to Currency IPC 489A-489B 147 08 5.73 Notes and Bank Notes Offences related to Illicit Arms Arms Act,1959 44 13 837.44 Trafficking Offences relating to unlawful Unlawful Activities Prevention 131 29 193.18 activities of individuals and Act, 1967,Explosive associations and dealing with Substances Act,1908 terrorist activities Offences relating to wildlife Wildlife Protection Act,1972 52 05 122.42 including poaching, smuggling and illegal trade in wildlife and its derivatives Offences relating to Trafficking in Immortal Traffic Prevention 15 03 4.79 person Act,1956,Juvenile Justice (Care & Protection of Children) Act, 2000 Offences related to corruption in Prevention of Corruption Act, 927 222 13831.8488 government agencies and public 1972 sector businesses in India. 173Annual Report 2021-2022 Offences relating to smuggling Antiquities & Art 02 00 00 and fraudulent commercial TreasureAct, 1972 activities in the antiques & sculptures Offences relating to use of Securities&Exchange Board 24 03 258.27 manipulative and deceptive of India Act, 1992 devices in trading, insider trading and substantial acquisition of securities or control Offences relating to evasion of Customs Act,1962 41 08 122.42 duty or prohibitions imposed under the Customs Act. Offences relating to bonded Bonded Labour System 04 01 0.11 labour and child labour (Abolition Act), 1976 and Child Labour (Prohibition and Regulation) Act, 1986 Offences relating to Copyright Copy Right Act, 1857 and 12 03 94.04 and Trademark Trade Marks Act,1999 Offences relating to breach of Information Technology 01 00 00 confidentiality Act,2000 and privacy Offences relating to Biological Diversity 02 00 00 Environmental Crime Act,2002,Protection of Plant Varieties and Farmer’s Rights Act, 2001 Offences relating to discharging Environment Protection 16 04 15.89 environmental pollutants, etc., in Act,1986 and Water excess of prescribed standards Prevention & Pollution Offences relating to emigration Emigration Act,1983, 30 02 52.78 and passport violations Foreigners Act, 1946 and Passport Act,1967 Offences where the categorization of the predicate offence is 195 101 4924.79 not evident/other offences Total 4637 907 96868.85 4.2.5 Performance of Directorate of Enforcement in the area of FEMA The work done by ED in the area of FEMA is summarized in the following Tables: Table 4: Investigations under FEMA Financial Year Investigation SCN issued SCN adjudicated Penalty imposed (Rs. initiated in crores) 2016-17 1993 538 693 40.65 2017-18 3627 791 868 178.80 2018-19 2661 844 769 1905.18 2019-20 3360 718 574 704.60 2020-21 2774 529 353 774.03 2021-22(till 2774 190 156 709.03 30.11.2021) 174Department of Revenue III ED is working tirelessly to extradite the fugitive Table 5: Number of summons issued and searches conducted under FEMA economic offenders who have evaded the process of law in India by staying outside the jurisdiction of Indian Courts. Financial Year Number of summons Number of issued searches The efforts of the Directorate have resulted in successful conducted representation before Competent Court abroad in under FEMA extradition of various fugitive economic offenders. In this 2016-17 3240 222 regard, it is pertinent to mention that UK Court has approved extradition of few high profile accused persons 2017-18 4156 126 to India following effective representation of the 2018-19 6102 151 Directorate in coordination with other LEAs and Indian 2019-20 6838 142 mission abroad. 2020-21 4005 56 4.2.8 Other Initiatives 2021-22(till 3176 74 30.11.2021) Other initiatives taken by the Directorate of Enforcement includes the following: 4.2.6 Performance of Directorate of Enforcement (a) Celebration and commemoration of 75 years of in the area of FEOA independence India and the glorious history of it’s people, culture and achievements, “Azadi Ka As on 30th November, 2021, ED has filed Amrit Mahotsav”, a 75 week countdown to our applications under FEOA against 14 persons, out of which 75th anniversary of Independence intended to 09 persons have been declared as Fugitive Economic end post a year on 15th August, 2023, started in Offenders by the Competent Courts. Hon’ble Special the Directorate from 12th March, 2021. The Court has ordered for confiscation of properties to the Mahotsav is being celebrated in this Directorate. tune of Rs. 427.67 crores in respect of various accused. Hearing for confiscation of properties in respect of other (b) A Vigilance Awareness Week was also organized declared FEOs is underway in the Competent Courts. by the Directorate during 26th October to 1st November, 2021 to create awareness among Moreover, extradition proceedings in case of high staff to check corruption at every level so that a profile fugitive economic offenders are also being properly corruption free society could be attained. followed up by the Directorate. (c) International Day of Yoga was celebrated on 21st June, 2021 by all the offices of this Directorate. 4.2.7 Performance of Directorate of Enforcement All the officers / officials of the Directorate in the area of Extradition and RCN participated with enthusiasm and zeal. The Directorate of Enforcement has made (d) To ensure rational distribution of work, the requests for publishing of Red Corner Notice (RCN) in concept of Functional Unit has been introduced respect of 34 persons, out of which RCN has been in each field of work across all the offices/ published in respect of 19 persons. A total of 30 formations. For ensuring specialized, targeted Extradition requests have been sent to various countries and smooth working, each such unit is self- in respect of 23 individuals. The year wise details are contained unit headed by an officer of the rank presented in the following Table: of Deputy Director with clearly demarcated resources and responsibilities including Table 6: Red Corner Notice (RCN) and Extradition investigation, administration, intelligence etc. Financial Year No. of RCN No. of Extradition These Functional Units were created vide order request made requests made dated 11.02.2021. 2015-16 2 0 2016-17 0 0 (e) Further, with a view to have unique designation of Deputy Directors and Assistant Directors 2017-18 7 5 posted in the various offices of the Directorate 2018-19 17 18 of Enforcement and to ensure broad uniformity 2019-20 03 04 in work allocation amongst the officers working 2020-21 04 02 in this Directorate, an order in this regard specifying the designations and broad allocation 2021-22(till 01 01 30.11.2021) of work was issued on 04.05.2021. 175Annual Report 2021-2022 4.3 Financial Intelligence Unit – India a. Regular interaction and exchange of (FIU-IND) information. 4.3.1 Background and function of FIU-IND b. Received 2843 requests for information from intelligence and Law Enforcement Agencies. Financial Intelligence Unit-India (FIU-IND) was set c. Provided information in 2620 cases up by the Govt. of India to coordinate and strengthen requested by the agencies. collection, analysis and sharing of financial intelligence through an effective national, regional and global network iv. Regional and global AML/CFT efforts (01 April to combat money laundering and related crimes. 2021 to 30 November 2021): 4.3.2 The main functions of FIU-IND include all a. 118 requests received from foreign FIUs. matters pertaining to b. 228 requests sent to foreign FIUs. a) Analysis of information/reports received from Reporting Entities as per the provisions of PMLA v. Increasing awareness about money 2002 and Rules made there under and their laundering and terrorists financing (01 April dissemination to authorized domestic agencies 2021 to 31 October 2021): for further action. a. 11 Programmes for training REs were b) Enforcement of the provision of PMLA in so far conducted in which 570 participants as it relates to FIU-IND. participated. b. 28 Review meetings at FIU-IND were held c) Egmont Group and exchange of information with in which 178 participants participated. foreign FIUs. c. 11 Training Programmes for training LEAs d) Interface with reporting entities and their were conducted in which 1110 participants regulators and domestic agencies authorized to participated. receive information from FIU-IND including promoting awareness about AML/CFT, capacity d. 16 meetings with LEAs were conducted in building and training. which 215 participants participated. 4.3.3 Highlights of the Performance/ achievements vi. Strengthening legislative and regulatory during 2021-22 (from 01 April 2021 to 30 framework: November 2021) a. Regular interaction with the Department of i. Collection of information (01 April 2021 to 30 Revenue and Regulators. November 2021): b. Issued many Operational Analysis (OAs), a. 93,93,889 Cash Transaction Report (CTRs) highlighting existing regulatory gaps in some received. financial products. Detailed discussions ensuing with RBI and DoR for bridging their b. 2,52,726 Suspicious Transaction Reports regulatory gaps. (STRs) received. c. Participated in proceedings of the AML c. 1,40,965 Counterfeit Currency Reports Steering Committee for evolving Risk based (CCRs) received. approach and framing of the National ML/ TF Risk Assessment. d. 5,48,806 NPO Transaction Report (NTRs) received. vii. Strengthening IT information: ii. Analysis and dissemination of information (01 a. Development and testing of various modules April 2021 to 30 November 2021): of FINNET 2.0 a. 90,860 STRs processed. b. Initiation of tendering process of selecting consulting agencies as Project Management b. 47,956 STRs disseminated. Unit (PMU) for FINNET 2.0 iii. Collaboration with domestic Law c. Continued operation and maintenance of Enforcement and Intelligence Agencies (01 FINNET 1.0 April 2021 to 30 November 2021): 176Department of Revenue III d. Establishment of Strategic Analysis Lab (SAL) mechanism for coordinating measures for combating for enhancing the capacity of FIU India in money laundering. proactively generating new information/ analysis. 4.4.4.2 The Director, Directorate of Enforcement has been designated as the Director for exercising powers e. Setting up of LMS having e-learning module and training lab for promoting capacity build- under the PMLA, 2002 and is authorized to provisionally up of all stakeholders in particular and Res attach the property allegedly involved in money in general. laundering. The Adjudicating Authority is empowered to confirm/ relief the provisional Attachment after hearing f. New Reporting format to capture relevant information facilitating 360 degree analysis the aggrieved parties to ensure that property is not and ease of reporting. disposed of during the pendency of trial for scheduled offences of money laundering or proceeds of crime 4.4 Economic Security (ES) money laundered. 4.4.1 Economic Security Cell is dealing with the 4.4.4.3 The Adjudicating Authority consists of a administration and implementation of the Prevention of chairperson and two Members. The post of Chairperson Money Laundering Act, 2002. Based on PMLA, Economic & Members are tenure post after retirement from erstwhile Security Cell is also looking after framing / amendment job. The Adjudicating Authority received 195 nos. of of PMLA Rules on matters relating to Know Your Provisional Attachment Orders (PAOs) and 195 nos. of Customer (KYC norms), setting up of special Courts Original Complaints (OCs) during the year 2021. In under PMLA, Section 66 of PMLA – authorities to whom addition, 161 nos. of Original Application (OAs) for information to be disseminated etc. from time to time. retention of seized documents from Directorate of Enforcement were received during the November 2021. 4.4.2 Prevention of Money Laundering Act (PMLA) was 1 Nos. of Miscellaneous Application (MA) also received enacted on 17th January, 2003 and brought into force on during the year 2021. Final orders in Original Complaint 1st July 2005. The object of this Act is to prevent money and Original Application have been pronounced in 245 laundering and to provide for confiscation of property nos. of cases except 100 nos. of cases where the Hon’ble derived from, or involved in, money – laundering and for courts granted stay in respect of Provisional Attachment matters connected therewith or incidental thereto. Two orders/ Original applications furnished by Directorate of main objectives of the Act are: Enforcement.  Criminalize money laundering and provide for attachment, seizure and confiscation of property 4.5 Financial Action Task Force involved in money laundering [Implemented by i. Financial Action Task Force (FATF) is an Enforcement Directorate]; and independent inter-governmental body having 39 members (37 jurisdictions and 2 organizations)  Prescribe obligations on banks, financial established by its member jurisdictions for Institutions and intermediaries relating to KYC, effective implementation of legal, regulatory and record keeping and furnishing reports operational measures for combating money [Implemented by Financial Intelligence Unit laundering, terrorist financing, combating (FIU-IND)]. financing or proliferation of weapons of mass destruction in countries across the world. India 4.4.3 PMLA has been amended from time to time to became a member of FATF in 2010. India is also overcome the deficiencies and to meet the international a member of two FATF Style Regional Bodies standards on Anti-Money Laundering as prescribed by (FSRBs) -Asia Pacific Group (APG) and Eurasian Financial Action Task Force (FATF). Group the combating Money laundering and Financing of Terrorism (EAG) 4.4.4 Adjudicating Authority under Prevention of Money Laundering Act, 2002 ii. The core work of FATF is to conduct Mutual Evaluation of its Members and to guide and assist 4.4.4.1 The Prevention of Money Laundering Act FSRBs to conduct Mutual evaluation of their respective member jurisdictions. India’s last (PMLA), 2002 was enacted by the Parliament to prevent Mutual Evaluation was conducted in the year money laundering and connected activities, confiscation 2010 and the next Mutual Evaluation is scheduled of proceeds of crime and setting up of agencies and 177Annual Report 2021-2022 to begin at the end of the year 2022 based on the FATF Cell works as the Secretariat to the IMCC. revised standards of FATF (40 recommendations and 11 Immediate outcomes). xi. An AML/ CFT Joint Working Group under the Chairmanship of Additional Secretary (Revenue) iii. The Mutual Evaluation is very comprehensive and has been created for enhancing operational co- intense exercise and evaluates the anti-money ordination among all stakeholders. laundering and combating terror financing (AML/ CFT) abilities of a country’s financial sector. xii. FATF Cell is also part of the core group constituted by Department of Personnel and iv. FATF Cell was constituted in DoR in 2017 vide Training to work on G20 Anti-Corruption Working GOI Gazette Notification dated 9th Nov, 2017. Group (ACWG) and is working closely with all stakeholders on the Action plan for 2022-24 v. Coordination or work related to FATF Secretariat which covers the year of 2023, India’s presidency is the main function of FATF Cell. As part of this, of G 20. FATF Cell provides regular inputs for FATF coordinates with other key agencies such the Finance Track of G 20 coordinated by DEA, as ED, FIU-IND, RBI, SEBI, IRDAI, MHA, NIA, BRICS AML/CFT meetings, RIC meetings, CT MEA, MCA etc. Dialogues, to UN on Terrorist Financing related Targeted Financial Sanction and meetings of vi. The Cell receives, circulates and discusses other multilateral economic bodies. various documents/ proposals related to FATF, APG, EAG with all the concerned stakeholders xiii. During the year 2021, FATF Cell, Department of within the country and comments of India are sent Revenue worked closely with financial sector on these issues, keeping national interests in supervisors and regulators in order to improve view. the existing AML/CFT infrastructure, and meetings were held to improve our compliance vii. The FATF cell also handles nominations of Indian with FATF standards. Officers from FATF Cell delegation to the Plenaries and other important attend FCORD meetings for coordination on meetings of FATF, APG and EAG. Officers from Counter Financing of Terrorism (CFT). the key agencies along with officers from FATF Cell participate in these meetings and the xiv. Since the advent of pandemic, the Plenary and delegation takes part in the multilateral Working Group meetings of FATF, EAG, APG are discussions on various issues. being conducted in virtual mode and Indian delegation has been attending the same. The viii. Currently, the FATF Cell is coordinating the work February and June Plenary and Working Group related to India’s upcoming mutual evaluation. meetings of FATF of 2021 were virtual but the Joint Secretary (Revenue) is the National October Plenary 2021 was Hybrid which was Coordinator and Director (FATF) is the Deputy attended physically in Paris, France by a two- National Coordinator for the Mutual evaluation member delegation from India. exercise. 4.6 Narcotics Control (NC) ix. An important part of FATF mutual evaluation is to conduct National Risk Assessment where risk The Narcotics Control Division administers the of various sectors of the economy like Banking, Narcotic Drugs and Psychotropic Substances Act,1985 Insurance, Capital Markets, Designated Non- (61 of 1985), which prohibits, except for medical and Financial Business and Profession sectors etc., scientific purposes, the manufacture, production, are assessed periodically. FATF Cell, DoR possession, sale, purchase, transport, warehouse, use, functions as the coordinator for conducting consumption, import inter-State, export inter-State, import India’s/TF NRA. into India, export from India or transshipment of narcotic drugs and psychotropic substances. The policy of the x. An Inter- Ministerial Coordination Committee has Governments has thus been to promote use of narcotic been constituted under the Chairpersonship of Drugs and psychotropic substances for medical and Revenue Secretary under Sec.72A of PMLA with scientific purposes while preventing their diversion from the mandate of macro-level policy decision licit sources, and prohibiting illicit traffic and abuse. The making on AML/CFT matters, operational co- Narcotic Drugs and Psychotropic Substances Act divide operation between the Government, law the powers and responsibility of regulation of licit activities. enforcement agencies, the Financial Intelligence Section 9 of the Act has listed various activities which Unit-India and the regulators or supervisors, and the Central Government can, by rules, regulate while supervision of National Risk Assessment (NRA). Section 10 lists various activities which the State 178Department of Revenue III Governments can, by rules, regulate. Accordingly, Narcotic of drug offenders tracing and freezing of Drugs and Psychotropic Substances Rules, 1985 have illegally acquired properties of drug traffickers been framed by the Central Government, which regulates derived from illicit drug trafficking for cultivation of opium, manufacture, import/export of narcotic forfeiture and confiscation. drugs and psychotropic substances. Further to prevent iv. Issuance of licenses for manufacture of diversion of precursor chemicals, of wide industrial use, synthetic Narcotic Drugs. for illicit manufacturing of, narcotic Drugs and psychotropic Substances, the Narcotic Drugs and Psychotropic v. Performing the functions of Competent Substances (Regulations of Controlled Substances) Order, National Authority (CNA) for issuance of 2013 has been framed under Section 9A of the NDPS Act. Export Authorizations and Import Certificate for Export/ Import of Narcotic Drugs & 4.6.1 FUNCTIONS/ WORKING OF THE CENTRAL Psychotropic Substances and issuance of BUREAU OF NARCOTICS ‘No Objection Certificate’ for import/export 4.6.1.1 Organizational set up of precursor chemicals under the 1961, 1971 and 1988 UN Conventions dealing with The Narcotics Commissioner heads the Central narcotic drugs, psychotropic substances and Bureau of Narcotics (CBN) with headquarters at Gwalior. chemicals/substances used for manufacture The Narcotics Commissioner exercises control and of these drugs. supervision over opium poppy cultivation, which is presently undertaken in select notified areas of the three vi. 1988 Convention requires CNA of the states of Madhya Pradesh, Uttar Pradesh & Rajasthan. countries to take all possible measures to In addition to the work relating to licensing of opium poppy prevent diversion from international trade of cultivation, measurement and test measurement of fields precursor chemicals used in illicit and procurement of opium, the CBN also undertakes manufacture of narcotic drugs and preventive checks and exercises vigil to prevent diversion psychotropic substances in close of opium into illicit channels as well as enforcement of cooperation with INCB and competent Narcotic Drugs & Psychotropic Substances Act, 1985. authorities of concerned countries. 4.6.1.2 Responsibilities and Duties vii. Liaison with the International Narcotics Control Board, United Nations Drug Control The broad outline of the functions and responsibilities Programme as well as with the Competent of CBN are as under: National Authorities of other foreign countries on issues related to international trade in i. Performing the function of the National narcotic drugs, psychotropic substances and Opium Agency for India under Single precursor chemicals. Convention on Narcotic Drugs 1961 to exercise supervision over licit cultivation of viii. Co-ordination with other Enforcement opium poppy in the country in terms of Agencies such as Narcotics Control Bureau, Section 5(2) of the NDPS Act,1985. Directorate of Revenue Intelligence, State Police, State Excise and various other drug ii. Survey, detection and eradication of illicit law enforcement agencies. cultivation of opium poppy throughout the country. 4.6.1.3 Performance and Achievements: iii. Enforcement of provisions of the NDPS Act The performance/achievement with respect to 1985 to suppress illicit traffic in Narcotic issuance of NOCs issued by Central Bureau of Narcotics Drugs, Psychotropic Substances and during the year 2021-22 for the export/import of Precursor controlled substances including search, Chemicals is as under: seizure, arrest, investigation and prosecution Number of NOC issued From From 01.12.2021 Total 01.04.2021 to to 31.03.2022 30.11.2021 (Projected) For export of Controlled Substance 1040 700 1740 For import of Controlled Substance 873 477 1350 No. of Pre-export Notifications issued 833 700 1533 No. of Pre-export Notification received 666 300 966 Number of Stop Shipments /suspended (Import) 12 NA Number of Stop Shipments /suspended (Export) 6 NA 179Annual Report 2021-2022 International Narcotics Control Board (INCB) has stopped suspicious transactions of Precursors Chemicals developed online Pre-export Notification (PEN) system suspected to be diverted from the licit channels during to make exchange of information between the Competent the year under report. National Authorities. CBN had issued 833 PENs (during The performance/achievement with respect to the period from 01.04.2021 to 30.11.2021 to the issuance of Export authorization and Import Certificate competent authority of various importing countries, for issued by Central Bureau of Narcotics during the current verifying the legitimacy of the transactions. On the financial year from for the export/import of narcotic drugs/ initiative, taken by the Central Bureau of Narcotics (CBN), psychotropic substances is as under: through online PEN system, CBN has identified and Particular Psychotropic Substances Narcotic Drugs From From From From 01.04.2021 to 01.12.2021 to 01.04.2021 to 01.12.2021 to 30.11.2021 31.03.2022 30.11.2021 31.03.2022 (Projected) (Projected) No. of Export 4187 2100 278 80 Authorization Issued No. of Import 450 225 145 40 Certificate issued The Government of India has developed web- consumption of Narcotic Drugs in the country. The objective based software for online registration of manufacturers and of the online application is to collect required data on wholesalers of psychotropic substances, for both bulk manufacture and consumption of narcotic drugs for drugs and preparations, with the Central Bureau of generation of Form “C” in respect of India for submission Narcotics (CBN), under the guidance of the National to the International Narcotics Control Board (INCB), Informatics Centre, New Delhi. The system has been Vienna. This office has taken up the matter with National made functional to facilitate submission of data on Informatics Centre (NIC), New Delhi. However, development manufacture, utilization, stock, import, export, sale of web based online application for registration of purchase and consumption of psychotropic substances manufacturers and dealers of narcotic drugs with the in the country. Central Bureau of Narcotics (CBN) are still under process. The data collected through the system, will 4.6.1.4 Enforcement of NDPS Act, 1985- facilitate generation of periodical, statistical report on The Central Bureau of Narcotics undertakes action psychotropic substances like form ’P’ form ‘A/P, form ‘B/ to prevent the illicit trafficking of Narcotic Drugs and P’ besides other MIS report for monitoring the Psychotropic Substances. It also undertakes manufacture and consumption of psychotropic investigations and prosecution of drug related offences, substances in the country. tracing and freezing of illegally acquired property of drug traffickers, derived from illicit drug trafficking, for forfeiture The Government of India has decided to develop and confiscation. a web based online application for registration of manufacturers and dealers of narcotic drugs with the Number of persons convicted/ acquitted in CBN Central Bureau of Narcotics (CBN) and submission of cases, decided by various Courts, during the financial data on manufacture, utilization, stock trade and year 2021-22 (upto October, 2021) are as under: Financial Total no. of Total no. of persons Total No. Total no. Total no of Convicti year persons who convicted against of of persons on rate were facing whom prosecution persons persons facing (%) prosecution at was launched during convicted acquitted prosecution the beginning of the year at the end the year of year 2021-22 678+2 64 1 3 738+2* 25% *Foreigners 180Department of Revenue III Number of cases, decided by various Courts, during the financial year 2021-22 are as under (upto October,2021): Financial Total No. of cases Total no. of Total no. Total no. Conviction year number of in which cases in of cases of cases rate (%) cases fresh which in which pending pending at prosecution conviction accused at the the launched was were end of beginning during the obtained acquitted year of year year 2021-22 540 42 1 3 578 25% Details of Destruction of Illicit Opium Poppy Cultivation and Cannabis in 2020-2021 are as under (upto 31st October, 2021): Year State Area Destroyed (in Total Area Destroyed Hectare) (in Hectare) 2020 Arunachal Pradesh Lohit-2580 (Poppy) 3180 (26.02.2020 to 06.03.2020) Namsai-600 (Poppy) 2021 MP unit Ganja-0.02 3.8 Poppy-3.78 Disposal of seized drug by CBN during the year 2021 (upto 31st October, 2021): Sr. Narcotics Drugs/ Psychotropic No. of Cases Quantity No. Substances/ Precursor 1 Opium 7 78.85 kg 2 Poppy Husk/Straw 18 4346.47 kg 3 Heroin 33 26.876 kg 4 Ganja 4 205.6 kg 5 Charas 2 9.4 kg 6 Alprazolam 2 4.3 kg 7 Poppy Plant + Cultivation 7 270 plants + 3.78 Hect. 8 Acetic Anhydride 1 54.9 Litres Seizure effected by CBN during the year 2020 & 2021 (upto 31st October,2021): Type of Drug/ Substance 2020 2021 (31st Oct.,2021) Opium Quantity (In kgs.) 361.180 39.285 Cases 10 9 Poppy straw Quantity (In kgs.) 231.590 alongwith black poppy seeds 181Annual Report 2021-2022 cases Heroin Quantity (In Kgs) 1.515 9.830 Cases 3 3 Cannabis(Ganja) Quantity (In kgs) 18.000 35.75 kg + 750 plants Cannabis plant Cases 1 3 Illicit Cannabis cult Quantity (In kgs) 0.0200 hect Cases Poppy Straw/Husk Quantity(In kgs.) 17431.260 20555.380 Cases 18 13 Diazepam Quantity (No of Tab /Inj.) 15 inj 30Tab +175 inj Buprenorphine Quantity (In kgs.) - - No. of Inj/Tabs. 1222570 tablets Cases 2 Pentazocine Quantity (No. of Inj.) 3 inj 18240 inj. Cases Codeine Phosphate Quantity (No. of bottles 21876 bottles 5912 bottles Cough Syrup Cases - 2 Alrazolam Tab Quantity (No. of tablets) 3166740 tabs + 215046 02.000 kgs Cases 4 4 Zolpidem Quantity (No. of tablets) 4755 tablets Cases Clonazepam Quantity (No. of tablets) 129300 tablets 4490 tab Cases 1 Clobazam Quantity (No. of tablets) 6970 tablets Tramadol Quantity (no of tablets & 2064229 tablets & 60256 Tab + 28800 Capsules 1240 capsules cap Case 1 Tramadol Inj Quantity (No. of Injection 390 ampulse 6418 Inj. Lorazepam Quantity (No. of tablets) 5025 tablets 750 tablets Methyl Phenidate Quantity (No. of tablets) 600 tablets Chlordiazepoxide Quantity (No. of tablets) 3933 tablets 580 tab Oxazepam Quantity (No. of tablets) 43110 tablets Phinobarbitone Quantity (No. of tablets) 2000 tablets Unlabeled injections Quantity (No of Inj.) 704 ampules 216 amp said to be Buprenophine inj. 182Department of Revenue III Illicit Poppy Quantity 0.2839 hect. 3.78 hect Cultivation. cases 2 6 Lanced opium cap Quantity 205 cap cases Ayurvedic medicine Quantity 18272 bottles + 180 having opium grams content cases 1 Acetic Anhydride Quantity 24050 litre cases 1 Phenobarbiton Quantity 110 inj Mephentermine Inj Quantity 727 inj, Midazolam Inj+ Quantity 280 Inj + 6 Spray spray Etizolam Quantity 3000 tab Black Poppy seed Quantity 17697.460 kg Chlordizepoxide Quantity 582 tab cases operation. After receipt of computed challans from Govt. 4.6.1.5 Gender Issues/ Empowerment of Women: Opium Factories, final payment to cultivators is being NACIN Bhopal had conducted online one day done without waiting for Settlement Operation. training on 03.03.2021 on Gender Sensitization, Gender 4.6.1.8 Other highlights of performance and Mainstreaming, Overview of Sexual Harassment of achievements during the year 2021: Women at Workplace.  GEM Purchase 4.6.1.6 During the crop year 2020-21, a quantity of 315 Purchase of items for the official purpose is made Metric Tons of opium at 70° consistency (Provisional through GEM portal. The dead stock items, figure) was procured from opium cultivators. The average perishable items are purchased through GEM yield (kg./hectare) at 70° consistency on the basis of portal. The upcoming purchase/ services of the results received from Madhya Pradesh, Rajasthan and articles will also be made through the GEM portal Uttar Pradesh units for the crop year 2020-21 was mostly. 62.248, 66.633 & 53.468 respectively. The All-India average yield during 2020-21 was 64.374 kg/hectare.  World Drug Day, 26th June, 2021 by Central These figures are for crop year 2020-21 as the crop cycle Bureau of Narcotics for the cultivation of opium is 1st October to 30th Every year, 26th June is observed as September. “International day against drug abuse and 4.6.1.7 Payment to cultivators through e-Payment: trafficking”, in order to raise awareness for the drug menace in the society and seeking people’s Since crop year 2012-13, a new procedure for participation to deal with this problem. Central payment has been adopted. There was high risk in Bureau of Narcotics organised several activities drawing big amount from Banks carrying it to weighment like placing Banners on prominent public places centers, disbursing it to concerned cultivators/ and Tree plantation in the official campus. Lambardars and carrying it to villages by cultivators from weighment enters in late evening. Banking infrastructure 4.6.2 GOVERNMENT OPIUM AND ALKALOIDS has been improved in opium growing areas and it is WORKS (GOAW) developing day by day. Considering all these factors, cost of opium/commission is being paid through e-payment 4.6.2.1 Chief Controller of Factories (CCF) directly in Bank Accounts of cultivators during weighment The Government Opium & Alkaloid Works 183Annual Report 2021-2022 (GOAW) is engaged in the processing of raw opium for at New Delhi. Each of the factories at Ghazipur and export and manufacturing of opiate alkaloids through its Neemuch comprises two units – the Opium Factory and two Factories viz Govt. Opium & Alkaloid Works (GOAW) Alkaloid Works. The Opium Factories undertake the work at Ghazipur (U.P.) and Neemuch (M.P.). The Products of receipt of opium from the fields, their storage and manufactured at GOAWs are mainly used by processing for exports and domestic consumption. The pharmaceutical industry of India for Preparation of cough Alkaloid Works are engaged in processing raw opium syrup, pain relievers, de-addiction drugs and tablets for into alkaloids of pharmacopeial grades to meet the terminally ill cancer and HIV patients. The GOAW are domestic demand of the pharmaceutical industry. The administered by a High Powered Body called the GOAWs have employed a total work force of about 650 “Committee of Management” constituted and notified by people at the two opium and alkaloid plants. The work the Government of India in 1970. The Additional force comprises of officials and staff drawn from the Secretary (Revenue), Department of Revenue, Ministry Central Board of Excise and Customs, Central Bureau of Finance is the Chairman of the Committee of of Narcotics, Central Revenues Control Laboratory, apart Management. An officer of the rank of Commissioner/ from personnel selected by the Union Public Services Joint Secretary is the Chief Controller of Factories who Commission directly. The security aspects of these heads the Organization and each of the two factories at factories are looked after by Central Industrial Security Neemuch and Ghazipur are managed by a General Force (CISF), a paramilitary force of the Ministry of Home Manager of the rank of Additional Commissioner/Director. Affairs. The overall performance / achievements of GOAF The office of the Chief Controller of Factories is located for the Financial Year 2021-22 are as follows: GOVERNMENT OPIUM AND ALKALOID FACTORIES (GOAF) I. PERFORMANCE OF GOAF FOR THE FINANCIAL YEAR 2021-22 (Provisional) Sl. Particulars Unit Actual Production Estimated Production No. from December, 2021 April to November, to March,2022 2021 A. PRODUCTION 1 Drying of opium for KG. -- -- Export at 90°C 2 a) Morphine Sulphate KG. 206.300 50.000 b) Codeine Phosphate (C.P.) KG. 12706.000 6300.000 c) Pure Thebaine KG. 654.475 350.000 d) Noscapine BP KG. 158.000 1500.000 e) Papavarine S.R. KG. 1885.100 550.000 f) IMO Powder KG. 1000.000 11000.000 g) IMO Cake KG. 3046.000 1954.000 Total (2) (a to g) KG. 19655.875 21704.000 3. Codeine Phosphate Imported for KG. 11000.000 26500.000 Domestic Market 184Department of Revenue III Sl. Particulars Actual Sales Estimated Sales from No. April to November, 2021 December, 2021 to March,2022 Quantity Amount (Rs. in Quantity Amount Crore) (in Kg.) (In Kg.) (Rs. in Crore) B. SALES 1 Export of opium for at 90°C 137 0.08 200 0.11 a) Morphine Sulphate 326.075 1.35 250.000 1.04 b) Codeine Phosphate 22879.48 104.56 4368.000 19.96 (Indigenous Production & Imported) c) Dionine I.P. 0.000 0.000 30.000 0.36 d) Pure Thebaine 2142.500 9.72 352.000 1.6 e) Noscapine BP 559.000 1.997 350.000 1.24 f) Pholcodine 220.917 0.08 50.000 0.37 g) Papavarine S.R. 1463.000 0.41 860.000 0.28 h) IMO Powder (Dom. Sales + 9040.000 7.85 3023.000 3.20 Export) i) IMO Cake (Domestic 2110.000 2.15 2889.000 2.94 Sales + Export) Total 2 (a to i) 38740.97 128.117 12172.000 30.99 Grand Total (1+2) 38877.97 128.197 12372.00 31.10 C. (a) COUNTRY WISE EXPORT OF OPIUM AT 90°C (excluding IMO Powder & Cake) FOR THE FINANCIAL YEAR 2021-22 (UPTO NOVEMBER, 2021) (Quantity in Kgs) Unit USA France Switzerland Sri Lanka Total 1 Ghazipur -- -- -- -- -- 2 Neemuch 137 -- 137 Total 137 -- -- -- 137 (b) COUNTRY WISE EXPORT OF OPIUM AT 90°C (excluding IMO Powder & Cake) FOR THE FINANCIAL YEAR 2021-22 (FROM DECEMBER, 2021 TO MARCH, 2022) (Quantity in Kgs) Unit USA France Switzerland Sri Lanka Total 1 Ghazipur -- -- -- -- -- 2 Neemuch 200 200 Total 200 200 185Annual Report 2021-2022 D. (a) REVENUE RECEIPTS (ON REALISATION BASIS) FOR THE FINANCIAL YEAR 2021-22 (UPTO NOVEMBER, 2021) (Rs. in crore) Opium Factory Alkaloid Works Total 1 Ghazipur 0.08 25.64 25.72 2 Neemuch 0.12 109.94 110.06 Total 0.20 135.58 135.80 (b) REVENUE RECEIPTS (ON REALISATION BASIS) FOR THE FINANCIAL YEAR 2021-22 (FROM NOVEMBER, 2021 TO MARCH, 2022) (Rs. in crore) Opium Factory Alkaloid Works Total 1 Ghazipur 0.36 18.44 18.80 2 Neemuch 0.64 28.55 29.19 Total 1.00 46.99 47.99 II. ACHIEVEMENT OF CCF ORGANISATION UP TO THE MONTH OF NOVEMBER, 2021 WITH COMPARATIVE DATA OF PREVIOUS YEAR i.e. 2020 FOR THE SIMILAR PERIOD Povisional Sl. Actual Production % age increase over No. previous year Particulars Unit April to November 2020-21 2021-22 (1) (2) (3) (4) (5) (6) A. PRODUCTION 1 Drying of opium for KG. -- -- -- Export at 90°C 2 Manufacture of Drugs: a) Morphine Sulphate KG. 287.450 206.300 -28.23% b) Codeine Phosphate KG. 8212.483 12706.000 54.72% c) Pure Thebaine KG. 470.200 654.475 39.19% d) Noscapine BP KG. 2276.375 158.000 -93.06% e) Pholcodeine KG. 89.700 0.000 -100% f) Papavarine S.R. KG. 1491.300 1885.100 26.41% g) IMO Powder KG. 5700.00 1000.000 -82.46% h) IMO Cake KG. 0.00 3046.000 100% Total (2) KG. 18527.508 19655.875 6.09% 3. Import of Codeine Phosphate i) For Domestic Market KG. 0 11000.000 100% 186Department of Revenue III B. SALES Provisional Sl. 2020-21 2021-22 No. Particulars April to November April to November Quantity Amount Q u antity Amount (Rs. in (Kgs.) (Rs. in (Kgs) Crore) Crore) (1) (2) (3) (4) (5) (6) 1 Export of opium on actual basis 100.000 0.05 137 0.08 2 Domestic Sale of Drugs: (on actual basis) a) Morphine Sulphate 429.000 1.78 326.075 1.35 b) Codeine Phosphate 16653.800 76.10 22879.48 104.56 (Indigenous & Imported) c) Dionine I.P. 8.000 0.10 0.000 0.00 d) Pure Thebaine 538.000 4.62 2142.500 9.72 e) Noscapine BP 222.000 0.80 559.000 1.997 f) Papavarine S.R. 24.500 0.18 1463.000 0.41 g) Pholcodine 2000.000 0.53 220.917 0.08 h) IMO Powder (Domestic sale + 7791.000 10.17 9040.000 7.85 Export) i) IMO Cake (Domestic sale + 3303.750 3.37 2110.000 2.15 Export) Total (2) (a+i) 30970.050 97.65 38740.972 128.117 Grand Total (1+2) 31070.050 97.70 38877.97 128.197 C: COMPARATIVE COUNTRY WISE EXPORT OF OPIUM AT 90°C UP TO (NOVEMBER OF EACH FINANCIAL YEAR) (Qty. in Kgs. at 90ºC) Unit USA FRANCE SWITZERLAND JAPAN SRI LANKA TOTAL 2020-21 Ghazipur -- -- -- -- -- -- Neemuch -- -- 100 -- -- 100 Total -- -- 100 -- -- 100 2021-22 Ghazipur -- -- -- -- -- -- Neemuch 137 -- -- -- -- 137 Total 137 -- -- -- -- 137 187Annual Report 2021-2022 D: COMPARATIVE REVENUE RECEIPTS ON REALISATION BASIS (upto November of each Financial Year) (Rs. in Crores) (Provisional) Unit Opium Alkaloid Total Factories Works 2020-21 Ghazipur 0.05 19.63 19.68 Neemuch 0.05 77.48 77.53 Total 0.10 97.11 97.21 2021-22 Ghazipur 0.08 25.64 25.72 Neemuch 0.12 109.94 110.06 Total 0.20 135.58 135.78 4.6.2.2 Development of North Eastern Region: The 4.7.1.1 The Central Economic Intelligence Bureau is the CCF organization including GOAWs are located in Uttar nodal agency on economic intelligence. It was set up in Pradesh, Madhya Pradesh and Delhi only and therefore, 1985 for coordinating and strengthening the economic there is nothing to specify with regard to work done on intelligence and enforcement activities under the Ministry the development of North Eastern region and Sikkim of Finance. Project Schemes. 4.7.1.2 The Bureau is headed by a Director General who 4.6.2.3 Grievances Redressal Machinery: Public is assisted by two Additional Directors General (JS Grievances in the CCF’s Organization are dealt with Equivalent), Joint Secretary (COFEPOSA), Additional/ promptly. The labour grievances are also dealt with Joint Directors (DS/Director equivalent), Under expeditiously and the relations between the Management Secretaries, Deputy Directors (US equivalent) and other & workers during this period was harmonious and cordial. staff. 4.6.2.4 Gender Budgeting/Empowerment of Women: Equal opportunity / status is enjoyed by women in CCF 4.7.1.3 In terms of its existing charter, the CEIB functions organization. In case of gender bias / harassment as: reported if any, it is ensured that appropriate action is taken against the erring official. Internal Complaint a) The Secretariat for the Economic Intelligence Committee has already been formed at CCF office, New Council (EIC) Delhi, GOAW, Neemuch & Ghazipur for the purpose of dealing the complaints received regarding sexual b) Coordination between various agencies for harassment at workplace. coordinating action and repository of economic intelligence (ECOINT) and 4.6.2.5 Activities Undertaken for Disability Sector & SCs/STs & Other Weaker Sections of Society: The c) Administers the COFEPOSA Act, 1974 at CCF organization is strictly adhering to the prescribed Central Government Level. rules and regulations for the welfare and development of disabled, SCs, STs and other weaker sections. With an 4.7.1.4 In terms of its existing revised charter dated objective to initiate prompt action on grievances of such 12.12.2003 issued by Department of Revenue (HQ), the sections, a committee has been formed with members CEIB carries out the following functions: drawn from such sections. Roster registers for this purpose are also being maintained. a) The Secretariat for the Economic Intelligence 4.7 Central Economic Intelligence Bureau (CEIB) Council (EIC); 4.7.1 Organization and Functions b) Coordination between various agencies for 188Department of Revenue III coordinating action and repository of were conducted on Shell Companies, Informal economic intelligence (ECOINT); and Remittance Systems or Hawala Transactions, Misuse of Liberalized Remittance Scheme. Ponzi c) Administer the COFEPOSA Act 1974 at Scheme and Fraudulent GDRs. Central Government Level; d) Ensure prompt dissemination of intelligence iii. Other Policy Suggestions by Bureau: having security implications among the NSCS, IB & R&AW; Various review meetings were held with concerned Law Enforcement Agencies (LEAs) to e) Coordinate the functioning of Regional discuss on the issue viz. Standardization of Bank Economic Intelligence Councils (REICs); Formats, Remedial action on Policy related f) Coordination with Multi Agency Centre issues affecting banking operations’, fraudulent (MAC); transactions in foreign currency by FFMCs, online g) Organize meetings of Working Group under transmission of CDF data from CBIC to FIU-IND, the Chairmanship of Revenue Secretary at working of REICs after restructuring of the prescribed intervals and submit a report to Income Tax Dept. (launch of Faceless the Chairman of the EIC after every meeting; Assessment Scheme), amendments in existing h) Act as a ‘think tank’ for the Department of Memorandum of Understanding (MoU) Between Revenue, Ministry of Finance on all issues CEIB & RBI, assessment of threat perception relating to economic offences, and undertake relating to import/likely misuse of parts of drones/ analysis of economic activities at the macro Unmanned Aerial vehicles (UAVs), Fraudulent level. GDRs, Money Laundering by Digital Lending/ 4.7.1.5 The details of the activities of CEIB are as under: loan apps, Trade Based Money Laundering and efficacy of sharing of FMRs/Bank complaints and A. INTELLIGENCE SHARING ON ECONOMIC OFFENCES Look Out circulars (LOCs) with law enforcement i. Studies in the Bureau and Reports of Inter- agencies. Ministerial Groups: The Bureau issued Alert Circulars on various The Bureau conduced study on various topics issues such as smuggling of prohibited items, which are of grave concern in the economic evasion of customs duty by ways of offences. Study report on Fake Indian Currency misdeclaration and undervaluation, evasion of Notes, Artificial Intelligence and Data Analytics GST by way of misdeclaration to concerned LEAs to detect economic offences and Use of to sensitize their field formations. Blockchain Technology in checking economic iv. Development/ generation of sharable inputs offences especially banking frauds have been by CEIB: finalized. Further, study reports on six other topics are in the finalization stages and will be completed The Bureau developed and shared intelligence by March, 2022. with DRI and CBIC pertaining to evasion of customs duty by way misclassification of ii. Group on Economic Intelligence (GEI): imported goods and misuse of exemption notification on imports of parts of hybrid cars, The Group on Economic Intelligence (GEI) Fingertip Pulse Oximeter’ and used/ refurbished mechanism formed w.e.f. 01.12.2005 as per IT goods for necessary action in order to protect directions from Economic Intelligence Council the interest of revenue. The Bureau developed and shared intelligence (EIC) is focused on discussing matters critical to with DGGI pertaining to bogus firms involved in LEAs and suggesting a calibrated approach in generating bogus/fake invoices for the purpose devising solutions to problems faced by them and of passing of fake ITC to the tune of Rs.173 in better monitoring of the respective fields by Crores. LEAs themselves. v. Information sought from CEIB: In the current F.Y 2021-22, five GEI meetings CEIB receives requests from Agencies like IB, 189Annual Report 2021-2022 FIU, SFIO, RBI, CBDT and DGCEI seeking (NEOR) is envisaged as a secure web-based information on economic offenders/ offence(s), platform that will enable creation of rich data which are promptly responded to. As per the DFS repository of economic records of economic guidelines on detection, reporting, investigation offenders and its seamless dissemination etc. relating to large value bank frauds of more amongst the intelligence agencies and law than Rs. 50 Crores, report on prospective enforcement agencies. It is designed to be an borrowers / NPAs are being sought from CEIB important tool at the disposal of both CEIB and by Public Sector Banks. LEAs in understanding the micro trends pertaining to economic offences and coping with vi. National Economic Intelligence Network rapidly changing modus operandi adopted to (NEIN) DATABASE. defraud the national economic security. CEIB maintains NEIN database of dossiers and The proposed NEOR portal will have offence cases of economic offenders/suspected functionalities of entering offence data by the LEA tax evaders, based on data received from the along with added feature of pulling the data from Law Enforcement Agencies across the country. database of respective law enforcement agencies CEIB has more than 8680 dossiers and details through API. The system will also ensure of 156865 (as on 30.11.2021) offence cases, proactive information sharing amongst the law booked by various agencies. During current FY 2021-22 (as on 30.11.2021), 33055 inputs were enforcement agencies and will provide search entered in the database and 13237 inputs were functionality to law enforcement agencies to view disseminated as against 40519 intelligence inputs case details based on consent mechanism. The received. NEOR Portal will provide an effective analytics tool to the business requirements by assisting in vii. Secure Information Exchange Network trend analysis, text mining, predictive analysis (SIEN): and risk scoring. The existing data in NEIN is envisaged to be migrated in the new application As per a decision of the EIC in 2007, SIEN i.e. NEOR. (Secure Information Exchange Network)-a secured network platform for online exchange ix. Functioning of Regional Economic of intelligence and information is fully Intelligence Councils (REICs) operationalized in the Bureau which connects thirteen member-agencies with CEIB as central REICs were set up in March, 1996 for ensuring hub with each other. Further, SIEN has been regional operational coordination amongst the integrated with NEIN in 2017 to make details of different enforcement and investigation agencies the database of economic offenders, available in the field of economic intelligence. It comprises to all the above agencies. As per the directions of designated officers from CBDT, CBIC, DRI, by the Government, the operation of SIEN was DGGI, NCB, ED, CBI, IB, RBI, local heads of brought under the domain of Multi Agency Centre RoC, EOW of State Police and State Tax (MAC) of MHA on 27.07.2021. Authorities etc. The Bureau convenes zonal Conferences of the REIC Conveners to monitor viii. National Economic Offence Records (NEOR): and review the performance. The relevant The ‘National Economic Offences Records’ statistics relating to REICs is as under: FY No. of Meetings No. of cases Additional Revenue Detected Additional Revenue held shared (In Rs. lakhs.) Realized (In Rs. lakhs.) 2020-21 137 2019 100489.7 8402.02 2021-22 (till 65 1258 61480.82 182.32 30.11.2021) 190Department of Revenue III B. Trainings on Intelligence and other relevant It was through earnest efforts of CEIB that a new areas coordinated by Bureau training on ‘Legal Aspects and Legal Matters’, conducted The Bureau organizes training programmes in by the NLU, Dwarka materialized during this year 2021- premier training institutions for officers of the Department 22. of Revenue/ Member agencies of REICs. The Bureau The training calendar for the FY2021-22 was coordinates training programmes with various specialized prepared and shared with all the concerned training agencies on different subjects for upgradation of the institutes. In this year, details of the training programmes capacity and skills of the Officers. conducted by the Bureau so far are as under: S. Name of the Course/ Institute Conducted Date/ Duration of No. of No. Training Course/ Training the Course/ Participants Training Nominated for Training 1. Intelligence Gathering Cabinet Secretariat 12th to 17th April 2021 40 Intelligence Tradecraft Training Academy Gurgaon. 2. Legal Aspects and NLU, Dwarka 14th to 16th June 36 Legal Matters 2021 3. Trade Based Money State Bank Institute of 18th & 19th July 28 Laundering Consumer Banking, 2021 Hyderabad 4. Techniques of National Academy of 28th September to 40 Investigation using Direct Taxes, Nagpur 01st October, 2021 Digital Forensic 5. Intelligence Gathering Intelligence Bureau, IB 13th to 17th 45 Intelligence Tradecraft Training School, New September, 2021 Delhi. 6. Investigating Economic National Institute of 05th to 08th October, 36 Crime in Securities Securities Markets, Navi 2021 Market Mumbai C. IMPLEMENTATION OF THE CONSERVATION Act, 1974 (COFEPOSA Act, 1974) has been enacted to OF FOREIGN EXCHANGE AND PREVENTION OF provide for preventive detention law to detain smugglers SMUGGLING ACTIVITIES (COFEPOSA) Act, 1974. and foreign exchange manipulators from indulging in these prejudicial activities. Conservation of foreign exchange and prevention of smuggling activities is of prime importance for the During the year 2021-22, preventive detention economic health and national security of a Nation. Accordingly, the links which facilitate the violations of orders against 06 persons (from 01.04.2021 to 30.11.2021) foreign exchange regulations and smuggling activities are were passed under the COFEPOSA Act, 1974 whereas required to immobilizes by detention of persons engaged 17 detentions orders (including the orders issued and in these operations as the smuggling, foreign exchange executed before 01.04.2021) were confirmed by the various racketeering and related activities have a deleterious effect on the national economy and thereby causing a Advisory Boards constituted under the said Act. Further, serious adverse effect on the security of the state. 12 persons (including the absconders in respect of the To deal with this menace, the Conservation of detention orders issued in previous years) were detained Foreign Exchange and Prevention of Smuggling Activities during the period from 01.04.2021 to 30.11.2021. 191Annual Report 2021-2022 4.8 STATE TAXES As a part of revenue augmentation, several measures have been taken, which include inter-alia There are two State Taxes Sections in the Nudging taxpayers through regular emails and SMS, the Department of Revenue: Red-flag reports, Comparison reports, return defaulters’ a) State Taxes-I notice, centralized suspension/ revocation, blocking/ b) State Taxes-II unblocking of e-Way Bills/ GSTR-1 on non-filing of two 4.8.1 State Taxes - I Section GSTR-3B returns etc. have been implemented. State Taxes -I Section of the Department of 4.8.2 State Taxes –II Section Revenue deals with legislative work relating to Central State Taxes-II Section of the Department of Acts having significant interface with the States like the Revenue handles legislative work relating to Central Acts Indian Stamp Act, 1899 and the Constitution (One having significant interface with the States like the Central Hundred and First Amendment) Act, 2016 for Sales Tax Act, 1956, the Goods and Services Tax implementation of Goods and Services Tax (GST) as well (Compensation to States) Act, 2017. Facilitation in respect as administrative and budgetary matters in respect to of State level Value Added Tax (VAT) in regulation and Goods and Services Tax Network (GSTN) – Special payment of GST compensation to States/ UTs on account Purpose Vehicle incorporated for providing IT platform of revenue loss due to implementation of GST w.e.f. for the GST, Union Territories Goods and Services Tax 01.07.2017 have been dealt by this division as per details (UTGST) Act, 2017 etc. Recently, vide Finance Act, 2021, given below: section 8G has been inserted in the Indian Stamp Act, 1899 regarding strategic sale, disinvestment etc. of GST Compensation to States/ UTs for revenue immovable property by Government company not liable loss due to implementation of GST to stamp duty. Further, Gross GST collection is Rs. i. The Goods and Service Tax (Compensation to 7,19,078 crore for FY 2017-18, Rs. 11,77,370 crore for States) Bill, 2017 was passed by Lok Sabha on FY 2018-19, Rs. 12,22,117 crore for FY 2019-20, Rs. 29th March 2017 to provide for compensation to 11,36,825 crore for FY 2020-21 and Rs. 9,37,405 crore the States for the loss of revenue arising on for FY 2021-22 (till Nov, 2021). account of implementation of the Goods and GSTN as a SPV provides IT backbone to the Services Tax in pursuance of the provision of the entire GST system, which has been developed on open- Constitution (One Hundred and First source platform, using the latest and scalable architecture Amendment) Act, 2016. Accordingly, GST design. Over a period of time GSTN has taken various compensation Act, 2017 has been enacted which steps to improve the taxpayer experience in tax provides detailed mechanism for compensation compliances and has streamlined the operation of GST to the States for loss on account of System. With these improvements, GST System in now implementation of GST. For the purpose of GST able to scale up and cater more than 3 lakhs taxpayers compensation to States, a cess is being levied at any point without any hassle. on luxury & demerit goods and proceeds of such cess is being credited to separate Public Account Further, GSTN has implemented several known as Compensation Fund. GST initiatives for simplifying GST compliance with a view to compensation amounting to Rs. 49,017.24 crore facilitate ease of doing business and has provided e- for the period July, 2017 to March, 2018, Rs. Invoice facility, SMS based “Nil” return filing facility, 83,058.44 crore for period April, 2018 to March, Quarterly return filing and Invoice furnishing facility for 2019 and Rs. 1,65,671.17 crore for period April, MSMEs; auto-drafting of return and tax payment. End to 2019 to March, 2020 has been released to the end automation of refund and single authority States/ UTs towards provisional GST disbursement, Invoice Registration Portal (IRP) for compensation on bimonthly basis as per GST generating Invoice Reference Number (IRN) of e-Invoice, (Compensation to States Act), 2017, subject to 59 Minutes Loan Scheme for MSME, enhanced calculation of GST compensation based on AG knowledge repository to help quicker resolution of certified figures. taxpayers’ grievances; single window registration of companies through SPICe-AGILE-Pro system of MCA; ii. Due to the economic impact of the pandemic has Geo-coding to capture correct address of the taxpayers; led to higher compensation requirement due to Business Intelligence System for identifying non- lower GST collection and at the same time lower complaints and assisting data driven governance; Risk collection of GST compensation cess. based identification of non-complaint trade; integration of FASTag (RFID) System of NHAI with e-Way Bill System iii. The issue of GST Compensation to States has of GST for live tracking of the movement of vehicles etc. been deliberated in the 41st and 42nd GST Council have been the spin off advantages of GST System. meetings. Accordingly, in FY 2020-21, Centre had 192Department of Revenue III borrowed Rs. 1.1 lakh crore under a special performed judicial, quasi-judicial or adjudicating function window and passed on to the States as back-to- for three years. back loan to help the States to meet the resource gap due to short-release of compensation on 4.9.1.3 During the period 01.12.2020 to 30.11.2021 in total account of inadequate balance in the 1221 Appeals (534 in PMLA, 104 in NDPSA, 03 in Compensation Fund. This arrangement has been SAFEMA, 108 in FEMA and 472 in PBPT) were filed and finalized after detailed deliberations with the in addition 1999 Miscellaneous petitions (1146 in PMLA, States and all States have opted for this arrangement. In addition, depending on the 177 in NDPSA, 08 in SAFEMA, 200 in FEMA and 468 in amount available in the Compensation Fund, PBPT) were filed during the said period. Total 06 appeals Centre has also been releasing the regular GST (05 in PMLA and 01 in NDPSA, Nil in SAFEMA, Nil in Compensation to States to make up for GST FEMA and Nil in PBPT) were disposed during the said revenue shortfall. Taking into account, the GST period. Compensation released from Compensation Fund as well as back-to-back loan released in 4.9.2 Competent Authority under SAFEMA/ NDPSA FY 2020-21, GST Compensation of Rs. 37,134 crore is pending to States/UTs for period April’2020 4.9.2.1 The Smugglers and Foreign Exchange to March’2021 as per provisional figures. Centre Manipulators (Forfeiture of Property Act, 1976 is committed to release full GST Compensation (SAFEM(FOP)A), provides for forfeiture of illegally to the States/UTs as per GST (Compensation to acquired property of the persons convicted under the Sea States) Act, 2017 for the transition period by Customs Act, 1878, the Customs Act, 1962 and the extending the levy of Compensation Cess beyond Foreign Exchange Regulation Act, 1947 and Foreign 5 years to meet the GST revenue shortfall as Exchange Regulation Act, 1974 and the persons detained well as servicing the loan borrowed through under the Conservation of Foreign Exchange and special window scheme. Prevention of Smuggling Activities Act, 1974. The Narcotics Drugs and Psychotropic Substances Act, 1985 iv. Subsequent to deliberations in the 43rd GST (NDPSA) provides for tracing, freezing, seizure and Council meeting, Centre has borrowed Rs. 1.59 forfeiture of illegally acquired property of the persons lakh crores from the market through special convicted under that Act or any corresponding law of any window in current FY and passed it to the States/ foreign country, and those who are detained under the UTs as a back-to-back loan as was done in last Prevention or Illicit Traffic in Narcotic Drugs and year. Release of this amount has been front Psychotropic Substances Act, 1988 and Jammu and loaded during the financial year to enable the Kashmir Prevention of Illicit Traffic in Narcotic Drugs and States/UTs to undertake capital expenditure. Psychotropic Substances Act, 1988. 4.9 Competent Authority 4.9.2.2 SAFEM(FOP) Act and NDPS Act provide for appointment of Competent Authorities for carrying out 4.9.1 The Appellate Tribunal under SAFEMA forfeiture of illegally acquired properties. At present, the Offices of Competent Authorities are located at Kolkata, 4.9.1.1 The Appellate Tribunal constituted under the Chennai, Delhi, Mumbai and one unit is at Ahmedabad. Smugglers and Foreign Exchange Manipulators SAFEM(FOP)A envisages establishment of an appellate (Forfeiture of Property) Act, 1976 (SAFEMA). It started forum, namely the Appellate Tribunal to hear the appeals functioning w.e.f. 03.01.1977. It hears the appeals files filed against the orders of Competent Authority under against the orders of Competent Authority under SAFEM/ SAFEMA/NDPSA Act. NDPS Acts, Adjudicating Authority under PMLA, FEMA 4.9.2.3 As per the latest amendments vide the Finance and Prohibition of Benami Property Transactions Act Act 2021 to the Prohibition of Benami Property 1998. Transaction Act, 1988, the Competent Authority appointed under sub section (1) of section 5 of the Smuggling and 4.9.1.2 The Appellate Tribunal is located at New Delhi. It Foreign Exchange Manipulators (Forfeiture of Property) consists of a Chairman (who is, or has been a Judge of Act, 1976 is the Adjudicating Authority to exercise the Supreme Court or Chief Justice of a High Court) and jurisdiction, powers and authority conferred by or under four Members. The four Members are appointed from PBPT Act, 1988. PBPT Act was enacted to prohibit among the officers of the Central Government who has benami transactions where any person enters into a held the post of Additional Secretary to the Government benami transaction in order to defeat the provisions of any law or to avoid payment of statutory dues or to avoid of India or any equivalent or higher post and has payment to creditors, the beneficial owners, benamidar 193Annual Report 2021-2022 and any other person who abets or induces any person to agencies, the number of show cause notices issued and enter into such benami transaction, shall be punishable the value of the property involved therein, the number of under the said Act. orders of forfeiture passed and the value of the property involved therein, and the value of sale proceeds of the 4.9.2.4 The details regarding the number of reports property disposed of, year-wise, from 2000-01 to 2021- received by the Competent Authorities from enforcement 2022 are given in Appendix ‘A’. Appendix ‘A’ FORFEITURE OF ILLEGALLY ACQUIRED PROPERTY UNDER NDPSA AND SAFEM(FOP)A BY COMPETENT AUTHORITIES Financial Number of Number of Notices for Number of Value of sale Year reports Forfeiture issued and Forfeiture Orders proceeds of received from value of Property issued and value of Property Enforcement involved. Property involved. disposed of Agencies (in Rs. lakhs) Number Value (in Number Value (in Rs. Lakhs) Rs. Lakhs) 1 2 3 4 5 6 7 2000-2001 491 159 2755 103 1662 201 2001-2002 228 89 7223.12 50 3202.39 107 2002-2003 995 72 1269.22 53 2498.60 18 2003-2004 1180 97 1547.75 25 977.01 51.6 2004-2005 1357 162 3251.64 25 650.93 73.67 2005-2006 607 214 10074.59 91 744.60 153.27 2006-2007 514 243 3017.27 112 868.57 2.63 2007-2008 507 210 12784.31 24 551.10 366.97 2008-2009 99 39 2065.88 28 1115.33 121.30 2009-2010 48 21 178.5 20 2153.20 Nil 2010-2011 128 19 1394.06 22 45.57 1123.49 2011-2012 112 17 690.85 22 391.58 191.27 2012-2013 40 13 3091.48 10 101.10 Rs.1294.28 lakhs + US $3400 2013-2014 61 5 73.55 3 118.73 608.37 2014-2015 54 24 643.908 18 3253.55 166 2015-2016 92 22 1553.81 12 308.93 11.52 2016-2017 45 22 1232.95 19 2.35 778.44 and $443783.19 2017-2018 40 7 77.92 3 39.47 1641.45 2018-2019 104 28 1243.69 4 94.26 918.93 2019-2020 105 36 7417.96 52 15,606.82 371.89 2020-2021 38 17 3549.17815 1 22500.00 3.70 2021-2022 34 3 188.00 3 192.59 2.79388 (Jan to Nov- 21) 194Department of Revenue III 4.10 Customs, Excise & Service Tax Appellate list all such matters by bench by issuing separate orders. Tribunal (CESTAT) 4.10.2.2Despite various constraints including several 4.10.1 Functions/ Working of the Organization vacancies of Members and subordinate staff, the appeals are disposed in a consistent pace. A sample statement 4.10.1.1The Customs, Excise and Service Tax Appellate showing institution and disposal of appeals of the current Tribunal formerly known as Customs Excise & Gold financial year is given below: (Control) Appellate Tribunal is a quasi-judicial body hearing appeals filed against the orders passed by the Commissioners of Customs and Central Excise under Total the Customs Act, 1962 and Central Excise Act, 1944. Year Institutions Disposal Pendency as on Service Tax appeals are also now filed before the Tribunal 1.12.2021 under the Finance Act, 1994. The Tribunal is also having appellate jurisdiction on Anti-dumping matters under the March 2021 6531 6108 71762 Customs Tariff Act and the special bench headed by the to December President, CESTAT Principal Bench the appeals against 2021 the orders passed by the designated authority of the Ministry of Commerce. Whenever two different decisions on a single issue are passed by co-ordinate Benches of the Tribunal, the issue is resolved by constituting 3 4.10.2.3The process of online filing of appeals and online Members Larger Bench and a decision then rendered by payment of appeal fee is undertaken by NIC. Information the larger bench is applicable to all Division Benches and is uploaded on the website of the Tribunal for the sake of subordinate adjudicating authorities. transparency in administration. All orders including daily orders of the Tribunal are also uploaded besides real time 4.10.1.2 The Principal Bench of the Tribunal is situated at Delhi and the regional benches are situated display of item number taken by the Bench which is at Mumbai, Kolkata, Chennai, Bangalore and Ahmadabad. available both in the website and display boards installed For speedy disposal of appeals to the benefit of litigants, in the premises. the Ministry of Finance, vide notification no. 7/2013 has 4.10.2.4The whole north eastern region is conveniently notified creation of three new benches of the Tribunal at placed under the jurisdiction of Kolkata Bench. However, Chandigarh, Allahabad and Hyderabad and three additional the indirect tax litigation from N.E. region is relatively less. Benches one each at Delhi, Mumbai and Chennai. The regional benches at Allahabad, Chandigarh and Hyderabad 4.10.2.5All facilities as required by the Government in started functioning w.e.f. 01.10.2015, 01.12.2015 and respect of weaker sections including differently abled and 14.12.2015 respectively. SC/ST are strictly followed and extended to the eligible 4.10.1.3Each Bench of the Tribunal consists of a Judicial candidates/Staff. Member and a Technical Member. To expedite the disposal 4.10.2.6All facilities are being extended to female of small cases with financial stake up to Rs. 50,00,000/- employees of this Tribunal as per O.M. No.13018/4/2009- (Fifty Lakhs Rupees), wherein no question of rate of duty Estt.(L) dated 08/07/2009 of DOPT. To redress the or valuation is involved, single member bench is grievances of women, a complaint committee under the constituted. The Tribunal is also the final appellate authority Chairperson, CESTAT, has been constituted. So far, no hearing appeals from the orders of the Commissioner complaint has been received by the committee. (Appeals). Appeals from the orders passed by the Tribunal are filed before the Hon’ble Supreme Court on Classification 4.10.2.7The Tribunal is trying to strictly adhere to the and Valuation issues as they have all India ramifications. provisions of FRBM Act. All expenditures are limited to 4.10.2 Highlights of the performance and the budget allocated for the Tribunal. The Members of the achievements during the year Tribunal are being sent on official tour to other benches where there are vacancies. Though they are entitled for 4.10.2.1After the situation caused by the pandemic, the travel by Business class flights, the Members are Tribunal resorted to hearing of appeals on the video requested to travel by economy class to which they oblige conferencing by engaging open-source video platform as part of austerity measures. In spite of escalation in through GIV Meet. This facility has been implemented in prices of various items/ services and the function of all 9 benches and substantial number of cases has been additional benches, the expenditure is restricted to the disposed. It has been noticed that pre-deposit has not been received while filing of appeals deposited during granted ceiling. Sincere efforts are being done to control pandemic time. If they were to remain listed, the parties the expenditure with financial propriety and could have unfair advantage hence it has been decided to reasonableness. 195Annual Report 2021-2022 4.11 Authority for Advance Ruling Division Notification No. 40/99-CX(NT) dated 09.06.1999 and 41/ 99-CX(NT). The Commission consists of a Principal Bench 4.11.1 Customs, Central Excise & Service Tax presided over by the Chairman at New Delhi and 3 Settlement Commission Additional Benches at Chennai, Mumbai and Kolkata 4.11.1.1 Highlights of the Performance and presided over by Vice Chairman with 2 Members in each achievements of the Commission during the Year is Bench. The Commission functions under the Department given below: of Revenue in the Ministry of Finance. The Settlement Commission has been set up to No. of applications No. of applications Duty Settled (Rs. expedite recovery of Customs, Central Excise & Service received disposed of in crores) Tax revenue locked up in adjudication proceedings. It (upto (upto November, (upto November, offers a one time opportunity to tax payers to make a November,2021) 2021) 2021) true and full disclosure of their liabilities. Settlement 64 6 4.33 Commission has also been empowered to grant immunities from penalty and from prosecution, thus 4.11.1.2 Function & Working of the Organization. offering an opportunity to tax payers to settle the disputes expeditiously. The Central Government have constituted the Customs & Central Excise Settlement Commission 4.11.1.3 Year-Wise Performance/achievements of under section 32 of the Central Excise Act, 1944 vide the Settlement Commission: Disposal No. of No. of No. of Year Applications Duty settled (Rs. Applications Applications Received in Crores) Rejected Settled 1999-2000 3 1 2000-01 327 28 146 21.28 2001-02 559 63 153 26.64 2002-03 656 105 365 187.51 2003-04 753 141 431 114.04 2004-05 1273 205 1143 181.25 2005-06 1587 283 1207 129.09 2006-07 1960 219 1434 239.02 2007-08 1596 369 2274 507.92 2008-09 857 124 569 125.43 2009-10 723 68 599 67.36 2010-11 885 103 770 114.33 2011-12 959 247 702 462.48 2012-13 1610 74 934 198.06 2013-14 1623 156 1680 482.99 2014-15 1525 353 1469 743.32 2015-16 1262 208 1154 654.31 2016-17 844 174 814 1037.13 2017-18 563 116 488 428.95 2018-19 535 73 417 291.06 2019-20 257 39 249 243.49 2020-21 242 29 249 170.39 2021-22 64 7 6 4.33 (Upto Nov.21) Total 20663 3178 17253 6430.38 196Department of Revenue III 4.11.2 National Institute of Public Finance and introduce a new system by establishing appellate Tribunal. Policy (NIPFP) The appellate jurisdiction of CBEC and Revisionary jurisdiction of the Central Government were abolished with 4.11.2.1 The NIPFP is a premier research organization effect from 11.10.1982, except a few residual transitional for conducting research, policy advocacy, and capacity provisions and the Customs, Excise and Gold Appellate building activities in the field of public finance and policy. Tribunal (now CESTAT) was set up with effect from Established in 1976 as an autonomous institution under 11.10.1982. The Finance Act, 1984, revived the Revisionary the Societies Registration Act, 1860, the Institute has powers of the Central Government in specified type of made significant contributions to policy reforms at all levels cases. On the Customs side, Section 129 DD read with of Government of India. The NIPFP provides research, engages in policy advocacy and capacity building on public proviso to Section 129(A) of the Act, empowered Central finance and policy. Government to revise the appellate orders passed by the Commissioner of Customs (Appeals). On Central Excise 4.11.2.2 The Governing Body is chaired by an side, Section 35EE read with first proviso to sub-section Economist of Eminence and at present Dr. Urjit Patel, (ii) of Section 35B of the Central Excise Act, 1944 gave former Governor of RBI, is the Chairman of the Governing review and revisionary powers to Central Government to Body. Government is represented by the Secretary revise the orders passed by the Commissioner of Central (Revenue), Secretary (Economic Affairs) and Chief Excise (Appeals). Economic Adviser of the Ministry of Finance. There are three eminent Economists and representatives of FICCI 4.12.1.2On the Service Tax side the two provisos inserted and ASSOCHAM on the Governing Body. There is an in sub-section (1) of Section 86 of the Finance Act 1994 Academic Committee advising the Director. vide Section 117 of the Finance Act 2015 (with effect from 4.11.2.3 Initiatives relating to Gender Budgeting and 14.05.2015) stipulate that where an order, relating to a Empowerment of Women: service which is exported, has been passed under section 85 and the matter relating to grant of rebate of service tax NIPFP has done research in the topic and as input service, or rebate of duty paid on inputs, used in conduct policy dialogue at national and international fora providing such service, such order shall be dealt with in including UN organizations. accordance with the provisions of section 35EE of the Central Excise Act 1944. All appeals in such matters 4.12 Revision Application Unit pending before the Appellate Tribunal shall also be 4.12.1 Formation, function and working of the transferred and dealt with in accordance with the provisions Revision Application Unit of Section 35 EE of the Central Excise Act 1944. 4.12.1.1 The mandate of the Revision Application Unit 4.12.1.3The Revision Applications filed either by parties is to dispense justice. Under the scheme operative till 10.10.1982, the appeal against the orders of the or department against the orders of Commissioner Commissioners (then called Collectors), of Customs & (Appeals) are considered and decided by Additional Central Excise lay with the Central Board of Excise & Secretary (RA). The Central Government is the highest Customs. As far as the appeals against the orders passed authority in such revision and review matters and orders by the authorities below the rank of the Collectors (now thus passed by the Additional Secretary (RA) are final. called Commissioners), were concerned, the same were Petitioners, aggrieved with the revision order passed by to be filed before the appellate Collectors of Customs & Additional Secretary (RA) may take re-course to writ Central Excise. Erstwhile Section 131 of the Customs petitions under Article 226 of Constitution of India. Act, 1962 and Section 36 of the Central Excise & Salt Act, 1944, empowered the Central Government to revise 4.12.1.4The Revision Application Unit is directly the orders passed by the CBEC and appellate Collectors responsible to Secretary (Revenue). in exercise of their appellate jurisdiction. At the Government level, while Secretary (Revenue) or Special 4.12.2 Jurisdiction Secretary disposed of the Revision Applications against orders passed by the CBEC, and the Addl. Secretary or 4.12.2.1Customs jurisdiction - Section 129 DD read with Joint Secretary disposed of the applications against the proviso to Section 129 A (1) of Customs Act, 1962 orders passed by the appellate Collectors of Customs & empowers the Central Government to revise or review the Central Excise and executive Collectors of Customs and appellate orders passed by Commissioner of Customs Central Excise. The Finance (No. 2) Act, 1980 sought to (Appeals) if such order related to:- 197Annual Report 2021-2022 (a) Any goods imported or exported as baggage; 4.12.2.5FTT jurisdiction - Rule 15 of Foreign Travel Tax (FTT) Rules, 1979 empowered the Central Government to (b) Any goods loaded in a conveyance for importation revise or review the appellate orders passed by into India, but which are not unloaded at their place Commissioner of Customs & Central Excise (Appeals) if of destination in India, or so much of the quantity such order related to Payment of Foreign Travel Tax. of such goods as has not been unloaded at any such destination if goods unloaded at such 4.12.3 Process destination are short of the quantity required to be unloaded at the destination; The Revision Application Unit receives the revision application in prescribed form EA-8/CA-8 filed by (c) Payment of drawback as provided in Chapter X department as well as parties. The stipulated time for and the rules made there under. filing such applications is 90 days from the date of communication of order-in-appeal. Delay up to 90 days 4.12.2.2 Central Excise jurisdiction - Section 35 EE can be condoned by Central Government in deserving read with proviso to Section 35 B (1) of Central Excise cases. The Revision Application Unit on receipt of revision Act, 1944 empowered the Central Government to revise applications issues the acknowledgement to the applicant or review the appellate orders passed by Commissioner along with deficiency memo if any deficiency is found. of Central Excise (Appeals) if such order related to: Simultaneously, a check-list in prescribed format is also prepared. Notice is issued to respondent party for filing (a) A case of loss of goods, where the loss occurs counter reply. Thereafter, personal hearing is fixed / held in transit from a factory to a warehouse or to in cases, in the order of seniority. Out of turn hearings another factory, or from one warehouse to are allowed only in deserving cases involving substantial another or during the course of processing of the revenue, recurring issues resulting into multiplicity of goods in a warehouse or in storage, whether in cases, interest liability, the issue is no longer res integra, a factory or in a warehouse; passenger is going abroad and in cases of financial hardship. After completion of hearing, final revision order (b) A rebate of duty of excise on goods exported to is issued by Additional Secretary (RA). any country or territory outside India or on excisable materials used in the manufacture of 4.12.4 Latest Developments goods which are exported to any country or territory outside India; The Revision Application unit was earlier headed by a Commissioner and ex-officio Joint Secretary. The (c) Goods exported outside India (except to Nepal working of this set-up was stayed by an order of Punjab or Bhutan) without payment of duty. & Haryana High Court, upheld by the Apex Court also, whereby it was directed that an officer of a higher rank 4.12.2.3 Service Tax jurisdiction – The provisions than the Joint Secretary be posted as the orders of of Section 35EE of the Central Excise Act 1944, which Commissioner (Appeals) are being revised and an officer dealt with revision by the Central Government, have been of the same rank cannot revise these orders. made applicable to Chapter-V of the Finance Act, 1944 Subsequently, an officer of the rank of Principal dealing with Service Tax. In the Finance Act 2015, the Commissioner and ex-officio Additional Secretary was Section 86 has been amended to prescribe that the posted in Aug, 2017 and an additional office of Additional remedy against the order passed by Commissioner Secretary (R.A.) was created at Mumbai to reduce the (Appeals) in a matter involving rebate of Service Tax, pending cases which got piled up during the period of shall lie in terms of Section 35EE of the Central Excise stay. The office at Delhi caters to Northern and Eastern Act 1944. In such cases against the order passed by the regions while the Mumbai Unit takes up the cases Commissioner (Appeals), revision application is required pertaining to Southern and Western regions. to be filed before AS (RA). 4.12.5 Performance 4.12.2.4 IATT jurisdiction - Rule 13 of Inland Air Since the joining of Additional Secretary in Travel Tax (IATT) Rules, 1989 empowered the Central November, 2020 the work in the unit has picked up very Government to revise or review the appellate orders fast, from November, 2020 to October, 2021, 530 passed by Commissioner of Customs & Central Excise Revision Applications have been disposed of by Delhi (Appeals) if such order related to payment of IATT. unit alone. 198Department of Revenue III 5. Integrated Financial Unit (IFU) (d) Restructuring proposals, redeployment of personnel in field formations and constituent units. Integrated Finance Division of the Department (e) Comprehensive Computerization of of Revenue is under the direct supervision of Additional Department of Revenue, its field formation Secretary & Financial Advisor (Finance). There are three including Customs and GST formations and units dealing with budget, finance and expenditure Income Tax field formations. management in respect of the grants pertaining to Department of Revenue, Direct Taxes and Indirect (f) Proposals from Committee of Management Taxes. Director (Finance), D/o Revenue/GST & Customs (COM), D/o Revenue which oversees the and Director (Finance), Direct Taxes/ Expenditure assist functioning of Government Opium & Alkaloid the Additional Secretary & Financial Advisor (Finance). Works (GOAWs). 5.1 Activities undertaken by the Integrated (g) Grants-in-aid to National Institute of Public Financial Unit: Finance & Policy and Central Revenue Sports & Cultural Board. All offices under the Department of Revenue, (h) Proposals for Delegated Investment Board which inter-alia include Revenue headquarters, Central (DIB), Public Investment Board and Cabinet Board of Direct Taxes (CBDT), Central Board of Indirect Committee on Economic Affairs (CCEA) Taxes & Customs (CBIC), Narcotics Control Division, relating to comprehensive computerization Central Bureau of Narcotics, Chief Controller of Factories, plan of CBDT/CBIC, capital expenditure Central Economic Intelligence Bureau, Financial involving construction of office/residential Intelligence Unit (FIU-IND), Goods & Service Tax Council complexes and readymade office/residential Secretariat, Enforcement Directorate, Customs, Excise & buildings of all the three Departments. Service Tax Appellate Tribunal (CESTAT), Settlement Commission (IT/WT), Authority for Advance Rulings, (i) Proposals received for sanction of financial Appellate Tribunal for Forfeited Property, Adjudicating assistance from the Customs & Central Authority under PMLA, Income Tax Ombudsman, National Excise Welfare Fund and Special Equipment Committee for Promotion of Social & Economic Welfare, Fund. Revision of norms were finalized in all field offices of Income Tax Department which include respect of setting up of/refurbishing of Directorate General of Income Tax (Systems), Directorate recreation/sports clubs, gymnasiums, General of Income Tax (Legal & Research), Directorate Departmental Canteens, crèches for of Income Tax (O&M Services), Directorate of Income Tax children of Departmental officials, guest (Infrastructure), National Academy of Direct Taxes and houses and cash award scheme for other field offices under the Central Board of Direct Taxes meritorious children with special emphasis all field offices under Central Board of Indirect Taxes & on girl children and children of group ‘D’ staff. Customs which include Directorate General of Systems & (j) Schemes proposed by CBDT/CBIC for utilizing Data Management, Directorate General of Human the budget provision under 1% Incremental Resource Development, Directorate of Revenue Revenue Incentive Scheme for obtaining Intelligence, Directorate General of Goods and Service approvals of the competent authority. Tax Intelligence, Directorate General of Goods and Service Tax, National Academy of Customs, Indirect Taxes & (k) Proposals involving relaxation/interpretation Narcotics, etc., are serviced by the three units of Integrated of financial rules and all proposals requiring Finance Division in terms of Budget formulation, fund reference to the Department of Expenditure. allocation, expenditure monitoring & control, enforcing 5.3 The expenditure budget/non-tax revenue receipts economy, scrutiny and sanction of expenditure proposals of Department of Revenue, Direct Taxes and Indirect beyond the delegated powers of field offices. Taxes for BE 2021-22 was prepared. RE 2021-22 and 5.2 Details of expenditure and financial proposals BE 2022-23 ceiling has been finalized and communicated scrutinized and approved: by the Budget Division, Department of Economic Affairs. The Details of RE 2021-22 and BE 2022-23 in respect of (a) Creation and continuation of posts, all the three grants are as below: construction/purchase/hiring of offices, as well as residential accommodation for the (Rs. in crore) field formations of Central Board of Indirect Grant Gr. No. 2021-22 2022-23 Taxes & Customs and Central Board of BE RE BE Direct Taxes, Department of Revenue and D/o 35 201512.64 209805.42 227552.52 its attached offices. Revenue (Erstwhile Grant No. 31 in FY 2019-20 & 2020-21) and (b) Procurement of goods and services (Grant No. 33 in FY 2021-22) Direct 36 8532.34 8508.89 9308.80 including procurement of anti-smuggling Taxes (Erstwhile Grant No. 32 in FY equipment i.e. scanners and marine vessels. 2019-20 & 2020-21) and (Grant No. 34 in FY 2021-22) (c) Proposals for deputation abroad of officers Indirect 37 21359.27 74938.99 41139.17 of the Department, CBDT, CBIC and their Taxes (Erstwhile Grant No. 33 in FY 2019-20 & 2020-21) and field offices. (Grant No. 35 in FY 2021-22) 199Annual Report 2021-2022 5.4 Integrated Finance Division has taken the their supervision. Presently one post of Director (OL); following steps/initiatives in 2021-22: one post of Deputy Director (OL); two posts of Assistant Director (OL) and 5 posts of Senior Translation Officer (i) Implementation of Cash Management Plan are lying vacant. Still matters relating to implementation as per Monthly Expenditure Plan (MEP) and of Official Language Policy of the Union were dealt with Quarterly Expenditure Allocations (QEA) as by this division and follow up action taken on the orders envisaged by Budget Division of Department and instructions issued by the Department of Official of Economic Affairs, Ministry of Finance. Language from time to time. Entire translation work of (ii) Review of Monthly and Quarterly the Department from English to Hindi and vice-versa is Expenditure vis-à-vis budgetary allocations ensured by the Official Language Division. and MEP/QEA and report to Revenue The Department of Revenue is notified under Secretary and Expenditure Secretary in Rule 10(4) of the Official Language Rules, 1976. 30 compliance of the guidelines of the sections of the Department have been specified for doing Department of Expenditure, Ministry of their entire work in Hindi. Finance for strict financial discipline. 6.2 Performance of the OL Division during the (iii) Review of specific activities/developments year under report: of Department of Revenue and report to Secretary (Expenditure) on monthly basis. a. All the documents pertaining to CBIC, CBDT & Revenue HQs were invariably issued bilingually (iv) Enforcement of instructions on economy in as per the requirement under Section 3(3) of expenditure by periodic review of the Official Languages Act, 1963; expenditure and advisories to spending authorities for expenditure control in line with b. All gazette notifications, replies to Parliament the economy instructions issued by the Questions and Assurances pertaining to Department of Expenditure. CBIC, CBDT and Revenue HQs were furnished bilingually; (v) Preparation and budgetary allocation for Compensation to States/UTs for revenue c. Notes and monthly summaries for the loss on roll out of GST; Government Opium Cabinet, Action Taken Reports (ATRs) on the & Alkaloid Works; provision of funds in Report of the Comptroller & Auditor General respect of Remissions of Duties and Taxes of India, Annual Report and Outcome Budget on Exported Products (RoDTEP) and other of the Ministry of Finance were translated and scrips based schemes; Acquisition of made available bilingually; residential and office accommodation; d. A number of Double Tax Avoidance Strengthening of IT capability for e- Agreements entered into with various governance of CBIC, CBDT and Department countries were translated into Hindi; and of Revenue; Acquisition of ships and fleets to strengthen Marine capability & Acquisition e. Hindi translation of all the material relating of Anti-Smuggling equipment. to “Faceless Scheme” for honoring the honest tax payers was provided; 5.5 In addition, the allocation and monitoring of the budget relating to advances, viz. House Building Advance, f. Website material received from all the Computer Advance etc. were also done. sections of the Department of Revenue (HQs), CBDT and CBIC was translated into 5.6 The Integrated Finance Division has also been Hindi and uploaded on the Ministry’s website. entrusted with the formulation of schemes of important expenditure proposals from their initial stage. It also 6.3 Hindi Salahakar Samiti and OLIC meetings: follows up with the Department/Boards for the settlement of audit objections, inspection reports, draft audit paras Action has been taken for formation of Sanyukt and reports of PAC/Standing Committee. Hindi Salahakar Samiti of the Departments of Revenue, Expenditure and Investment & Public Asset Management 6. Implementation of Official Language and Office of the Comptroller and Auditor General of India. Policy 6.4 Inspection by Parliamentary Committee on 6.1 The Department of Revenue has a full-fledged Official Language: Official Language Division which is entrusted with the task Parliamentary Committee on Official Language of implementing the Official Language Policy of the inspected 12 subordinate offices of Department of Government of India. This Division consists of one post Revenue. The officers of official language Division of Director (OL) and operates through four Official facilitated successful inspections of these offices despite Language Sections; each headed by an Assistant Director the prevailing Corona-19 epidemic scenario. (OL) and there are two posts of Deputy Director (OL) for 200Department of Revenue III 6.5 Official Language Inspections: be transparent, responsive, accountable, citizen-friendly and able to disseminate the information to the citizens. The officers of the Hindi Division of the Under the provisions of the RTI Act-2005 a nodal RTI Department also carried out inspections of 05 sections Cell was set up in the Department of Revenue to of Headquarters and 02 Subordinate Offices under the coordinate RTI matters. The RTI Cell collects, dispenses control of the Department of Revenue during the year and transfers the application seeking information to the under report with the view to assess the progress in use concerned CPIOs. The following steps were taken to of Hindi in the office and suggested ways to accelerate facilitate dissemination of information under the provisions the use of Hindi in the official work. of the Right to Information Act in Revenue Headquarters: 6.6 Hindi Day/ Hindi Pakhwara: (i) In our continued efforts to bring transparency and effective governance, we have placed On the occasion of Hindi Day, a message was information in the public domain on a issued by the Hon’ble Finance Minister and Honorable proactive basis which is available at https:// Home Minister exhorting all the officers/employees of the dor.gov.in/rti/revenue-headquters. Department to do their maximum official work in Hindi. (ii) In regards to the transparency audit which Hindi Pakhwara was celebrated from 14 September, is carried out each year, the self appraisal 2021 to 30 September, 2021. Various competitions like form submitted corresponding to year 2020- Hindi noting & drafting, Essay writing, Extempore Speech 21 has been audited by the National Institute competition, Quiz competition, Hindi typing and Hindi of Public Finance & Policy. The CIC after Shorthand competition were organized during the Hindi perusal of the audit report has issued an Pakhwara. Also, there was an award scheme for doing advisory to the Revenue Headquarters maximum work in Hindi during the Hindi fortnight for the which is under consideration. gazetted officers, Hindi speaking non-gazetted officers as well as the non-Hindi Speaking non-gazetted officers (iii) Due to the prevailing COVID-19 situation it separately. Those who secured first, second and third has been observed that the citizens have positions in these competitions have been given cash taken up the digital route for filing RTI prizes of Rs. 5000/- (First prize), Rs. 3000/- (Second prize) Applications which has resulted in and Rs. 2000/- (Third prize) and also 3 consolation prizes considerable decrease in the number of RTI of Rs. 1000/- each were given. Applications received offline. 6.7 Training: (iv) To make the system of transfer of RTI Application received offline to other Public During the year 2021-22, 2 MTS were nominated Authorities more seamless and efficient; the for training in Hindi typing in the courses run by the Central offline RTI Applications received are lodged Hindi Training Institute, Ministry of Home Affairs. on the RTI Request and Appeal 7. Implementation of the Right to Management Information System so that it Information Act, 2005 can be transferred immediately to the concerned Public Authority. 7.1 Revenue Headquarters (v) The following table indicates the number of In order to achieve the objectives of Good RTI Applications and Appeals received in the Governance, it is necessary that the administration should financial year 2021-22 up to 30.09.2021: Type No. of Applications No. of cases Request Request/ received during the year transferred to other rejected Appeals 2021-22 including cases PAs u/s 6(3) + returned accepted transferred to other Public to the Applicant Authorities Offline RTI Applications 129 68 10 51 Online RTI Applications 3004 2631 75 195 Offline Appeals 15 6 1 8 Online Appeals 67 37 0 22 Total fee received offline u/s 7(1) is Rs. 430/- Additional fee received offline u/s 7(3) is Rs. 1172/- Total fee received online u/s 7(1) is Rs. 20490/- Additional fee received online u/s 7(3) is Rs. 348/- 201Annual Report 2021-2022 7.2 Central Board of Direct Taxes (CBDT): (Year: 2021-22) S. Ministry/ Quarter Opening No. of Total no. No. of Decisions Number of Total Number of times various Provisions were invoked while Rejecting Requests No. Department/ balance of Requests Requests Requests where cases Amount Relevant Sections of RTI Act, 2005 Organization Requests received (Column transferred Application where Collected Section 8(1) Other Sections ( oa fs Q o un a s rtt ea rr )t Qd uu ari rn teg r 4+5) to P o ath s er in rfo es jr em f co tar et dio n a ad c gis t aic o ii nnp s l ti tan aka nery yn ( cf phe ee a nr+ g aa led tysd )+l . (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (9) (11) (24) ( eO rsth ) officer in (Rs.) respect of administrati on of RTI Act (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) 1. Central 1 0 360 360 782 1 0 6296 1 0 0 0 0 1 0 0 0 0 0 0 0 0 Board of Direct Taxes 2 50 599 649 1174 5 0 8912 1 0 0 0 1 0 0 0 0 1 0 1 0 1 3 62 649 711 1013 4 0 7410 1 1 0 0 0 1 0 0 0 0 0 0 0 3 Total 0 1608 1720 2969 10 0 22618 3 1 0 0 1 2 0 0 0 1 0 1 0 4 7.3 Central Board of Indirect Taxes & Customs Headquarters office, there are 38 CPIOs, one CPIO for (CBIC): each of the section. The no. of applications received, CBIC is implementing the provisions of Right to applications rejected and requests accepted by the CPIOs Information Act, 2005 since its enforcement. In the in CBIC during the year 2021-22 are given below: Quarter ending on No. of applications No. of cases transferred to No. of No. of received during the other Public Authorities requests requests quarter under Section 6 (3) rejected accepted 30.06.2021 569 153 23 418 30.09.2021 846 290 17 558 There are 23 Appellate Authorities, who decide applicants. The no. of appeals received, appeals rejected the appeals received under the RTI Act from various and appeals accepted by the CPIOs in CBIC during the year 2021-22 are given below: Quarter ending on No. of appeals received during the No. of appeals rejected No. of appeals accepted quarter 30.06.2021 26 3 22 30.09.2021 34 5 28 Registration fee collected under section 7(1) and these two quarters is as given below: the additional fee collected under section 7(3) during Quarter ending on Fee collected under section 7(1) (in Additional fee collected under section 7(3) (in Rs.) Rs.) 30.06.2021 250 475 30.09.2021 460 1850 The fee is excluding the amount of fee received Appeals against the information provided in for submitting applications online on the RTI portal. response to RTI online applications are also made online, which are transferred to concerned First Appellate The Government has also launched an RTI Portal Authority, who also provide the requisite reply to the citizen which facilitates filing of applications online by the Citizens. on the portal itself. CBIC has received 60 appeals from The applications concerning Department of Revenue are April 2021 to September 2021. accessed by the two Nodal Officers, one for Customs and the other for rest of the matters pertaining to CBIC. 7.4 Narcotics Control (NC): Thereafter, these applications are transferred online to the 7.4.1 Central Bureau of Narcotics (CBN): concerned CPIOs in the Board, who are required to provide the requisite information online, on the Portal itself, so that Various provisions of Right of Information Act, the applicant may immediately access the requisite 2005 have been implemented in the Central Bureau of information. So far, CBIC has received 1415 applications Narcotics in the year 2005. Unit -wise information of from April 2021 to September 2021. CPIO’s and First Appellate Authorities appointed at present is as follow: At present, the facility for transferring the applications received on the RTI portal is limited to the S. Headquarters MP Raj. UP CPIOs in the Board and 46 CCs/DGs of CBIC. Hence, No. Unit Unit Unit applications pertaining to the remaining field formations Gwalior are transferred manually with the direction to provide the 1 CPIO 1 17 8 2 information directly to the citizen. 2 FAA 1 1 1 1 202Department of Revenue III Further, it is to apprise that the application PAN database has shown steady growth in received under RTI section are dealt with the RTI Act tune with economic progress. The and are disposed of in the time limit. Detailed functions progressive number of PANs allotted up to and various aspects of the work done by the 9th November, 2021 (cumulative) is Department are also available on CBN website http:// 57,25,38,153. During the period between www.cbn.nic.in November 9th 2020 to November 9th, 2021 7.4.2 Chief Controller of Factories (CCF): 4,21,14,642 PANs have been allotted. A cell in each unit of this organization, such as (b) Common Business Identification the factories at Ghazipur and Neemuch, as also at the Number (CBIN or BIN) Delhi office of the CCF have been set up. These cells As per section 139A of the Income-tax Act function directly under the officials designated as CPIO/ 1961, role of Permanent Account Number APIO. The applications received are regularly disposed (PAN) was envisaged as that of a tax-payer off within the prescribed time-frame. identity limited to Income-tax department. 7.5 Financial Intelligence Unit – India (FIU-IND): However, PAN is now required for various activities like opening of a bank account, Number of RTI applications received, disposed opening of a de-mat account, for other of and denied during the Year 2021-2022 (Upto to 30th Nov, 2021): financial transactions prescribed in Rule 114(B) of the Income-tax Rules, 1962, Received Disposed Off Remarks registration for Goods and Services Tax Transferred Replied (GST) etc. Thus PAN is leveraged to 32 15 17 0 become Common Business Identification Number (CBIN) or simply Business Note: FIU-IND has been included in the Second Identification Number (BIN) for providing Schedule of Right to Information Act, 2005 vide registration to a number of government Department of Personnel & Training notification dated departments and services. 28.09.2005 and therefore under Section 24(1) of the Right (c) PAN Verification Facility to Information Act, 2005, is exempt from the operation of this Act, except for the information pertaining to the PAN verification facility is provided through allegation of corruption and human right violation. the website of the Income-tax department through link “Verify Your PAN” facility on 7.6 Customs, Excise & Service Tax Appellate Tribunal (CESTAT): official website of Income-tax department www.incometax.gov.in, by providing the PAN The Public Information Officer and the Appellate Full name and Date of Birth. Authority have been nominated by the Public Authority in all Benches of the Tribunal, and they are acting in Service for PAN verification is also provided accordance to the provisions of the Right to Information by Income-tax PAN Service Providers Act, 2005, in dispensing the information. All RTI (UTITSL and NSDLe-Gov) to agencies applications and orders including orders of the Appellate falling under any of the approved categories Authority are uploaded on the website. as per procedure laid down by the Directorate of Income-tax(Systems). 8. E-governance activities (d) Grievances Redressal Machinery: 8.1 Central Board of Direct Taxes (CBDT): 8.1.1 Activities under E-governance: Grievance redressal machinery related to PAN is well defined. The Income-tax (a) Permanent Account Number (PAN) department has a special electronic PAN (Permanent Account Number) is a 10 grievance redressal system called e-Nivaran digit alpha-numeric number allotted by the on e-filing portal of the Department i.e. on Income-tax department to taxpayers and to incometax.gov.in. Grievances are also the persons who apply for it under the received through Centralized Public Income-tax Act, 1961. Permanent Account Grievance Redressal and Monitoring Number (PAN) enables the department to System (CPGRAMS) of Government of link all transactions and correspondences India and through the designated PAN of a person with the department. Service providers. 203Annual Report 2021-2022 8.1.2 New Initiatives e) Enhanced QR code on e-PAN & Physical PAN Card: a) Instant PAN allotment through Aadhaar based e-KYC The e-PAN is embedded with an enhanced QR code which captures demographic data For the purpose of simplification of as well as photograph and signature of Permanent Account Number (PAN) applicant. This QR code can be read through allotment the PAN module of DIT (System) an app which is freely available on Google developed the facility for instant allotment Play Store. The enhanced QR code enables of PAN (on near to real time basis), which offline verification of PAN data, thus was launched by the Hon’ble Finance eliminating possibility of photo shopping etc. Minister on 28.05.2020. This facility is now resulting in enhanced security of PAN card available for those PAN applicants who and e-PAN. possess a valid Aadhaar number and have a mobile number registered with Aadhaar. f) Integration of PAN with AADHAAR UIDAI The allotment process is paperless and an (Aadhaar PAN linking) electronic PAN (e-PAN) is issued to the Integration of database with UIDAI has applicants free of cost. Number of PAN already taken place for seeding of Aadhaar allotted through this functionality till with PAN for dual purpose. It prevents any November, 2021 since the inception of the of the duplicate PAN from being issued to project is 95,76,246. any applicant as well as to identify the b) Integration with Ministry of Corporate applicant having an already issued PAN. Affairs (MCA) for issue of PAN and TAN/ Seeding of Aadhar number is made Instant e-PAN for corporate entities: mandatory by provisions of section 139AA of the Income Tax Act except for the PAN and TAN allotment has been integrated categories of person as provided by Gazette with the process of registration of new notification no. S.O. 1513(E) dated 11-05- companies using a Common Application 2017. Till 09.11.2021 a total of 41,72,56,290 Form SPICe at MCA portal. Under this facility PANs of individuals have been seeded with PAN and TAN are being allotted on near to Aadhaar data base, which is approximately real time basis. Number of PAN allotted 72.88% of total PAN allotted to individuals. through this facility till September, 2021 is Seeding of Aadhaar in remaining PANs is 6,09,894 and the number of TAN allotted presently going on. through this facility till September, 2021 is 6,10,774. g) Project- Insight c) Integration with SEBI An integrated data warehousing and business intelligence platform has been Integration with SEBI, for grant of registration operationalised to enable ITD in meeting the to the Foreign Portfolio Investor (FPI) by the three goals, namely, (i) to promote voluntary SEBI and allotment & Issuance of PAN by compliance and deter noncompliance; (ii) to the Income Tax Department has been impart confidence that all eligible persons launched. Under this process PAN/e-PAN pay appropriate tax; and (iii) to promote fair shall be allotted and issued to the FPIs on and judicious tax administration. The key the basis of common application form components of Insight System are: submitted to the SEBI for grant of registration by SEBI to the entity. Number of i. A State-of-the-Art Data warehouse has PAN allotted to FPIs by the Income-tax been operationalized and regular department till October, 2021 is 963. reports/MIS are provided to CBDT and Government for pre-budget analysis, d) Facility for downloading e-PAN: impact assessment and policy A facility to enable the existing PAN holder formulation. to download e-PAN through MSP’s websites ii. A dedicated reporting portal (https:// after OTP authentication has been created. This enables a secure e-PAN which is report.insight.gov.in) provides a printable many a time. e-PAN can be comprehensive interface between downloaded in pdf format. Further, facility Reporting Entities and the Income-tax to download in .xml format (machine Department. The Reporting Portal readable) has also been launched. enables seamless data filing, data 204Department of Revenue III processing, data quality monitoring significant transactions were and report rectification. Compliance shown to the taxpayer and a facility Check for PAN u/s 206AB and was provided to provide 206CCA has also been enabled at confirmation and feedback (if the Reporting Portal for REs. information was incorrect). After the campaign, 1,24,325 taxpayers paid iii. Income Tax Transaction Analysis advance tax of Rs 13,874 Crore. Centre (INTRAC) handles data integration, data processing, data c. E-campaign for high value quality monitoring, data warehousing, transactions (including SFT, TDS/ master data management and data TCS, GST, Exports, Imports, analytics. Data has been enriched by foreign remittance, securities transactions etc.) vis-a-vis the standardization of bank account information filed in the ITR was number/contact/address, address executed for 7,19,062 taxpayers clustering, geocoding, relationship for A.Y. 2020-21. Underlying high identification/ clustering. Data value transactions were shown to Analytics is being used for the taxpayer on the Compliance identification of high risk non-filers, portal and online facility was selection of cases for scrutiny under provided to validate the CASS, identification of high risk information and provide feedback refund claims, identification of high if the information was incorrect. risk remittances, risk assessment of After the campaign, more than information received under Automatic 1,10,137 taxpayers revised their Exchange of Information (AEOI), returns and increased the income Country-by-Country Reporting in revised return by 1,609 Cr. (CbCR) and Suspicious Transaction Reports (STRs). v. Annual Information Statement was operationalised in October 2021. iv. Compliance Management Central Annual Information Statement (AIS) is Processing Centre (CMCPC) comprehensive view of information for leverages campaign management a taxpayer displayed in Form 26AS. approach (consisting of emails, SMS, Taxpayer can provide feedback on reminders, outbound calls, letters) to information displayed in AIS. Many new support voluntary compliance and information sources, not available in resolution of compliance issues. A the current Form 26AS, have been dedicated compliance portal (https:// added in AIS. The objective of AIS is to compliance.insight.gov.in) displays display complete and accurate information to the taxpayer and information to the taxpayer, enable capture response on compliance taxpayer to provide feedback on issues in a structured manner for information and to enable seamless effective compliance monitoring and prefilling of return. evaluation. vi. Business Intelligence Dashboard a. e-campaign for non-filers for AY consisting of 200+ interactive Business 2020-21 was executed. As a Intelligence (BI) reports has been result, 4.32 Lakh identified non- implemented to provide actionable filers filed their return and self- information to ITD users with drill down. assessment tax of Rs. 3,850 The BI reports have been classified crore was paid by target segment under various themes such as Tax after campaign. Collection, Tax Base, ITR Information, Business Information, Exemption, b. e-campaign for significant Taxpayer Compliance, TDS transactions (during FY 2020-21) Information, TDS Compliance, was implemented for 6,51,207 International Transactions, Third Party taxpayers who had conducted Information etc. high value transactions in the current year and the quantum of vii. GIS (Geographical Information advance tax paid was lower than System) Dashboard consisting of more the expected amount. The than 100 interactive GIS reports have 205Annual Report 2021-2022 been implemented to provide high-level xiii. Insight Learning Hub, an integrated geographical view to senior platform consisting of learning management for effective monitoring. management system, online courses, competency tests and training material viii. Profile View under Insight Portal repository has been rolled out to provides comprehensive multi-year support capacity building of ITD profile of taxpayer and other entities employees by “delivery and tracking of with secure role based information customized learning content to access control. The Profile views employees using competency-based display key insights, financial ratios and training approach”. 15 online courses related information for effective have also been rolled out for analysis. customised training and capacity building of assessing officer. ix. I- Search has been enabled at insight supporting the fuzzy search In implementation of faceless schemes functionalities wherein the ITD user can Insight System is being leveraged for search entity, address, bank account, automated allocation of cases, Property, Non-PAN Transaction etc. verification, risk assessment of draft when the Entity ID is not known to the orders, bulk signing etc. user. The user can search on the basis Proposal for Insight Enhancement of attributes such as name, address, (insight+) was approved after date of birth, father’s name, email, considering the new requirements mobile number, passport number, emerging from changes in legal Aadhar number, vehicle no, bank framework and operating environment. account number etc. Suspicious The scope of Insight enhancement Transaction Reports Information consists of following components: Search has also been enabled at Insight a. Comprehensive API based integration with internal (CPC 2.0, x. Verification of Information in form of ITBA) and external (Reporting Various Case Types has been enabled entities, Exchange Partners) at Insight for Taxpayers and Reporting systems. Entities. The ITD Users are able to seek Information from Taxpayer b. Implementation of Intelligent through Issue of Various Notices (e.g Decision Support System to meet the requirements of Centralised e- 133 (6), 131(1A) and view the Verification Scheme. Response submitted by Taxpayer before Verifying Information. c. Implementation of Annual Information Statement (AIS). xi. Bulk Data Uploading – Utilities like Case Related Information Upload d. Aadhaar based login on Utility and Verification Report Upload Compliance, Reporting and Data Utility have been provided for ITD Exchange Portal. Users to upload Information in bulk w.r.t e. Mobile app for basic Insight a PAN and the corresponding view of functionalities. the Information has been enabled under the Profile Views of the h) Computer Assisted Scrutiny Selection Respective PANs and to the Person (CASS) uploading the Information packet. Income Tax Department has been xii. Insight Knowledge Hub, an integrated implementing Computer Assisted Scrutiny platform consisting of i-Wiki, i-Library, Selection (CASS) for selecting cases for i-Forum and i-Query, has been rolled scrutiny (audit). The suggestions received out to assist ITD in “Organizing from field formations and the outcome in creating, sharing, using and managing cases selected in prior years are reviewed organisation knowledge for getting the by a cross functional committee (including right knowledge to the right person at representatives from assessment, the right time”. investigation, intelligence, international 206Department of Revenue III taxation, transfer pricing, risk assessment, electronically pay taxes. Financial year wise systems) to refine the scenarios and percentage of e-payments is as below: parameters. New scenarios are also introduced on the basis of analysis of Financial Year % in terms of % in terms of total information sources and environmental total number of amount associated scanning. New approaches such as e-challans with e-challans Thematic risk assessment etc were 2018-19 82.26 91.14 introduced to further refine selection basket under few scenarios. 2019-20 84.36 90.95 i) Non- Filers Monitoring System (NMS) 2020-21 86.39 91.27 The Income Tax Department has implemented the Non- Filers Monitoring 2021-22 87.74 92.46 System (NMS) which assimilates and (upto Nov 2021) analysis in-house information as well as transactional data received from third- New Payment solution (TIN 2.0) is being parties, including Statements of Financial rolled out under IEC 2.0 project during FY Transaction (SFT), Tax Deduction at Source 2021-22. The expected benefits are as (TDS) and Tax Collection at Source (TCS) under: statements, Intelligence and Criminal • Enable tax payment through RTGS / Investigation (I&CI) data etc. to identify such other channels persons/entities who have undertaken high value financial transactions but have not filed • Real time credit of tax payment and their returns. During the year around 19 lakh MIS non-filers with potential tax liabilities were identified. The information about • 100% reconciliation of challan data and transactions is made available on the online funds portal and email and SMS is sent to the non- • Online mechanism for challan filer to provide online response and submit correction return. Many non-filers file their return and pay appropriate taxes. The details of high k) Refund Banker risk non-filers are pushed to the field The Refund Banker project has enabled formation for further action. Further, in view system driven process for determination, of the challenges posed by Covid-19, generation, issue, dispatch and credit of transformational changes introduced in the refunds. This project has made the process department and recent amendments introduced vis-a-vis reassessment in IT Act, of delivery of refund completely automated, 1961, Multiyear NMS cycle was executed speedy and transparent. Under the Refund to rationalise the work load on field Banker Scheme, paper and electronic formations w.r.t. already existing NMS Cycle refunds determined by the Income Tax 3 to Cycle 9 cases. Assessing Officers are sent in electronic files by Income Tax Department to the State Bank j) Payment of Taxes of India (SBI), which has been designated The Online Tax Accounting System (OLTAS) as the Refund Banker agent of the facilitates near real time reporting, Department. The Refund Banker sends ECS monitoring and reconciliation of tax or Direct Credits to the bank accounts, where payments made by taxpayers through the refunds have been processed for banks. E-payment of taxes has been electronic payment. enabled through Net Banking and ATMs and nearly 89% of tax is collected through this A web based status tracking facility in mode facilitating payment of taxes anytime collaboration with India Post and Protean from home/office without having to go to a eGov Technologies Limited (NSDL) is bank branch. Companies and auditable available under the Scheme. Call centre cases (taxpayers where provisions of facility with toll free number 1800-42-59-760 section 44AB of the Income-tax Act, 1961 is also available for tracking status of refunds are applicable) are mandatorily required to issued through the scheme. 207Annual Report 2021-2022 The Assessing Officer’s role in issuing across the length and breadth of the refunds is limited to processing the return country. This was implemented in 2008 of income on computer. The status of and is currently continuing under refunds is updated on the departmental extensions since 01.01.2013, by way application with reasons for non- payment of AMC. in case of unpaid or returned refunds, to enable the assessing officers to re-send the iii. As on date, more than 780 office refund for payment after removing the locations are connected through this deficiency. Audit trail and MIS on unpaid/ project to the Central Database (CD) unpicked refunds (with ageing) are available located at Delhi. The offices through this on departmental system for monitoring network work on various modules such status of issue of refunds. There has been as Income Tax Business Application a steady increase in number and percentage (ITBA), Project Insight, Central of refunds issued through the scheme. Processing Centre (CPC), CPC-TDS, During current Financial Year, the E-filing and etc. Through these modules percentage of refunds issued through the the department conducts its various scheme is 99.99 % of the total number of activities, such as collection of taxes, refunds issued all over India as under: processing of returns, PAN allotments, scrutiny assessments, Video Financial No. of No. of Total no of Percentage Conferencing (VC), monitoring of Year Refunds Other refunds of Refunds advance taxes and etc. (Paid) Refunds paid Paid through (Paid) through iv. Change Order Management is the Refund Refund integral part of the TAXNET Contract. Banker Banker In the instant dynamic environment it provides much needed operational 2018-19 2,81,90,436 2,493 2,81,92,929 99.99 flexibility. The major activities in change 2019-20 2,88,47,480 456 2,88,47,936 99.99 orders are as follows: • Relocation of nodes/ Additional 2020-21 2,53,42,641 205 2,53,42,846 99.99 nodes 2021-22 • Establishing new site (up to Nov 2021) 1,27,66,253 87 1,27,66,340 99.99 • Shifting of site • Bandwidth Augmentation During FY 2021-22, real time integration (API based) between CPC 2.0 and refund v. These are executed as per the banker is being implemented to ensure departmental requirement and direct credit of refund on the same day. requisitions received from the field formations. The Table-1 below gives l) Taxnet 1.0 the brief description of Change Order i. The aim and objectives of the ongoing Management received during the F.Y. Taxnet 1.0 project is to provide the basic 2021-22 (till 21/12/2021). architectural backbone to the entire Shifting of Sites New Site digital edifice of the Direct tax No Total No Relocation Addl. administration in India. It provides No of Total No of of Nodes Nodes seamless, secure, efficient & dedicated Sites of Nodes Sites Nodes connectivity through MPLS IP-VPN, to 3 57 1 0 173 338 all the departmental users at more than Grand Total No. of Nodes 568 780 locations spread across the country. m) Income Tax National Website-Webmaster ii. This is an IT-infrastructure project and Project: provides and maintains the LAN and WAN connectivity through MPLS IP- The National Website of the Income Tax VPN technology to the Income Tax Department (www.incometaxindia.gov.in) Department, connecting all its buildings known as Webmaster Project, is the first 208Department of Revenue III source of authentic information about the repository of policy and technical Direct Tax laws for the Tax Payer in the circulars/guidance/notifications issued country. It hosts a number of services with by the CBDT, and provide links to user friendly functionalities and features. relevant circulars/guidance issued by Amongst the various services that this the regulatory authorities in India and website hosts are authentic content on direct other international bodies. The portal tax laws, PAN, TAN etc., providing returns is not only be useful for the domestic & statements of e-filed cases, international financial institutions but will also help tax related content, FAQs, tutorials, tax the foreign tax authorities and financial information, press release, latest news etc. institutions to get information about the The number of visitors to the website has Indian laws, rules and procedures been continuously increasing that shows its related to AEOI under CRS. efficacy and popularity. • More than 130 Tax Treaties, which During the FY2020-21, the portal had a total India had entered into with Foreign number of 296,64,20,091 hits and Countries, have been uploaded (with 1,84,18,154 visitors. A proof that the website unique facility of Treaty comparison) is being very widely used by the taxpayers • Tax rates as per Income Tax Act vis-à- and members of public and that the website vis Tax Treaties. has substantial visibility. • Relevant provisions under Income-Tax Features of the Website Act, Companies Act, ServiceTax and The main features are as under: FEMA for Non-residents • Complete information related to Direct • There is a section for Synthesized Text Taxes Due Dates for the “Double Taxation Avoidance Agreements”. So far ‘Synthesized Text’ • First Point of Information for the Tax for the application of the Agreements payers for all Direct Tax related entered into with 12countries have information, new updates etc. been uploaded. • Promoting Tax Payers to take Integrity • Providing information to the Taxpayer Pledge – Integrity pledges being in the form of FAQs/Tutorials/Tax promoted through publishing of relevant web link at Home Page of the Information series booklets. Website. • Cross linking: - Cross linking across all • Website is now one of the most the sections of Income-Tax Act 1961, educative sites, built on state-of-the-art has been provided. Further, all related technology, having a rich repository of Income-Tax Rules1962, FAQs, Tax more than 100 Tax and Allied Laws, Services, Income-Tax forms are Rules, approximately 10,000 Circulars available on that page itself. and Notifications which are cross- • Services centric information Page for referenced and hyperlinked for users’ various services such as PAN/TAN, convenience. Return Filing, Tax Payment, Tax • International Taxation related calendar, Tax Chart &Tables, Tax contents: An “Exchange of utilities, Tax Helplines and more have Information” functionality has been been provided. created on the Income-tax Department • The website is friendly for differently website for dissemination of abled persons and can be accessed information to financial institutions, easily by visually challenged users, Departmental officers as well as public users with partial or poor sight including at large. The Chairman, CBDT on 22- color blind users and deaf users. It is 11-2019 inaugurated the functionality bilingual and Rajbhasha compliant. which consolidates all the relevant AEOI (Automatic Exchange of • Separate corner for Senior Citizens. Information) related information at one place for convenient access by all • Latest News & Press Release are stakeholders. The portal would be a updated on real time basis. 209Annual Report 2021-2022 • Income Tax Office Locator (covers Assessees shall be requested to confirm or details of all Income-tax Offices across clarify the information, which has tax India) implication through an automated structured queries and structured responses, which • Separate pages of Pr. CCIT/DGIT- can be processed through trained machines Includes information about field offices, leveraging digital technologies including Grievance Redressal Mechanism, Artificial Intelligence and Machine Learning. respective CPIOs, Appellate Authorities With the introduction of section 135A in the under RTI Act. Income Tax Act, a fresh e-Verification • Tenders from Department. scheme has been notified by the CBDT. An elaborate structured question bank is made n) Income Tax Business Application (ITBA) ready. An additional work order has been The Income Tax Business Application (or issued to the MSP of Project Insight. ITBA) has been in action for over 3 years Intelligence Decision Support System will with the aim of being abreast with assist a part of e-Verification process. technological changes; re-engineering the p) Integrated Communication Management business process within the tax (ICM)—ICM has been rolled out to user and administration and empowering the taxpayers from 7th Jun 2021. employees to deliver outcomes in a consistent, efficient and taxpayer friendly (i) ICM has already catered to over 6 lakh manner. ITBA’s main objective is to bring all calls from taxpayers, 1 lakh ‘Live Chat’ internal business processes on a digital sessions, redressed over 6 lakh platform so that officers and staff can grievances and enabled customer increase their efficiency by bringing services in 10 regional languages to information and work at a single place for assist the callers effectively. decision making. Apart from being (ii) Webex and Webinars are conducted accessible over Income Tax Department’s at various stages of roll out of new private network, ITBA is also accessible over features or forms to understand the the internet using VPN to cater to the problems faced by the users by challenging times of COVID-19 and to involving the technical architects in the remove hindrances in delivery of taxpayer webex meetings. service. (iii) Virtual Assistants and Live Chat Agents The ITBA (Income Tax Business Application) assist the users with queries on the is the platform for use by the tax officers, for services of IEC. Screen Sharing implementing the Faceless regime. Hence feature will be enabled shortly. ITBA not only enhances accountability and Communication of campaigns through transparency for an efficient tax social media has been commenced. administration but is also a boon for the honest taxpayers. q) Accreditation of employers, deductors, banks CAs etc. - Accreditation program with Over 1.5 lakh assessment orders, 1.25 lakh employers, deductors, banks, CAs, ERI and penalty orders, and 50 thousand appellate TRPs etc. will enable the department to orders have been passed in a faceless obtain information about taxpayers relating manner on the ITBA portal since the launch to salary, interest, income from house of faceless regime. The implementation of property, deductions etc. throughout the year the faceless regime also resulted in large in an accurate manner which will enable scale restructuring, consolidation, and CPC 2.0 to accurately pre-fill the return and rationalisation of the income tax jurisdictions, take up these returns for faster processing. which necessitated bulk migration of roughly 42 crores PANs across India. This was done r) Zero Down time: A complete re-design of through ITBA. the e-Filing portal has been rolled out to taxpayers and users and the new design o) E-Verification enables operations of the portal in a Zero E-Verification is conceptualised for Downtime mode. This is achieved through automated verification of the information website replication and fail over strategies, available with the Department, to ensure that content delivery networks and a stringent all due tax is collected without any leakage. SLA and penalty. 210Department of Revenue III s) Aayakar Sampark Kendra (ASK) t) Online grievance redressal system e- Nivaran: Aayakar Sampark Kendra (ASK) is Taxpayer Information and Services Center (Call ‘E-Nivaran’ is an electronic grievance Centre) of the Income tax Department which redressal system integrated with the ITBA makes the first level of Taxpayer Services application, the Department’s internal online by way of addressing taxpayers’ general working system. The paper grievances queries pertaining to:- received through ASK centers are also digitized and integrated with e-Nivaran a. PAN module. b. Status of PAN applications The CBDT forwards the grievances which c. Status of Refund are received manually or through e-mail in the offices of PM/FM/MOS/Chairman/ d. The critical dates of filing returns and Members to the Directorate of Taxpayer taxes Services (TPS). These grievances are e. Newly introduced schemes like IDS, e- uploaded on e-Nivaran according to PAN Sehyog, Vivaad se Vishwaas etc. jurisdiction. The TPS Directorate monitors the pendency and redressal of e-Nivaran The Income Tax Department has 6 Call grievances all over the country. Centres (1 National Call Centre and 5 Regional Call Centres) called Aaykar Directorate of Tax Payer Service -II has been Sampark Kendras situated at assigned with the duties of monitoring of Gurugram (NCC), Jangipur, Kochi, disposal of public grievances of CPGRAMS. Jammu, Vadodara and Shillong All grievances are downloaded from the (RCCs). All the five regional call centers website pgportal.gov.in and after are connected with National Call examination, action taken by the offices Center via MPLS links, the calls are subordinate to CBDT are monitored by the identified through the originating CLI Directorate to ensure timely resolution of the and routed to the respective center. grievances. Information about redressal action taken in such cases is uploaded on In all, there are 90 agents, called the website by the subordinate offices. The Taxpayer Relationship Agents (TRAs) Directorate constantly monitors the stationed at these centres to answer resolution of the grievances throughout the the general queries of the Taxpayers country. over 2 Toll Free Nos. 1961 and 18001801961, from 0800 hrs to 2200 The actual data from 01.04.2021 to hrs from Monday – Saturday. 30.11.2021 in respect of the grievances is as under: On an average approximately 2,50,000 calls are received per month across a) Disposal of Grievances: 96% these 6 call centres. Support provided (Grievances received during the year - in 14 different languages, i.e. English, 34591, Disposal - 33450, Brought Hindi, Punjabi, Kashmiri, Bengali, Odia, forward were 6257) Assamese, Khasi, Gujarati, Marathi, b) Average Disposal time: 56 days Malayalam, Tamil, Telugu and Kannada. u) Launch of TPS module/Mobile App “Aaykar Setu” on the lines of Digital The major benefit of Aaykar Sampark India initiative: Kendras is that a Taxpayer doesn’t require to search for his generic An e-platform for accessing the key tax queries about Income Tax over web as payer services is provided by the these Toll Free Services are available Department to the general public/taxpayers. from 0800 hrs to 2200 hrs from Monday The Taxpayer Services Module/Mobile App – Saturday. provided extensive information about tax related queries & services. Its main The trend of ever increasing call highlights are: volume shows that these centres are gaining popularity among taxpayers i. ASK IT – It functions as a CHATBOT due to their handiness and utility. (A virtual machine chatting with the 211Annual Report 2021-2022 user) which provides solution to queries with other services in Government of India, of taxpayers relating to PAN,TAN, TDS, which are already on SPARROW Portal and Return Filing, Refund Status, Tax will help in timely Promotions and Payment etc. on real time basis. Empanelment. Around 5,000 Group A and 6,800 Group B officers have shifted to ii. Live Chat with Tax Experts – In case SPARROW portal and their APARs for the users have any query they can use the year 2019-2020 and 2020-2021 have been chat option at TPS section. This facility written on the SPARROW Portal. Further, is available on all working days. from January 2021 the filing of IPR on iii. Tax Return Preparers at your SPARROW has been made mandatory. doorstep – It helps to locate the TRP ii. The Directorate of HRD has further initiated on Google map. A Tax Payer can the implementation of e-office in the locate/search the TRP at the desktop department from CBDT to all field formations as well as on his mobile App. all over the country. This would bring the iv. Tax Tools – It facilitates tax Income Tax Department at par with other calculations for filing ITR. Various tax Ministries and Departments. tools are available, which will give the iii. “HRD Corner” has been created on the output required for ITR on the basis of irsofficersonline website and the main inputs/information available with user. purpose for the creation of “HRD Corner” v. PAN/TAN – All the services related to on the irsofficersonline website is for PAN/TAN i.e. PAN/TAN application, consolidating all communications and De-duplication, PAN surrender, PAN- circulars related to HR matters of IRS Aadhar Linking are available through officers at one place, thereby acting as a the portal bridge between the field and the Directorate of HRD. The HRD Corner has different tabs vi. TDS/TRACES – It provides links to all related to APAR, Training and Capacity the services useful for a tax deductor/ Building, Deputation, Promotion, collector, tax deductee in one place Empanelment, Non-Functional Upgradation, along with proper bifurcation of Gender Issues, Circulars and Instructions, services between Tax Deductor/ etc. Deductee etc. iv. IRS Online Deputation Module, which is a vii. Payment of Taxes – It provides ease single window, online deputation module has of use of all the services related to tax been made available in all the 18 payment including tax calculation, View Pr.CCsIT(CCA) regions and also the 6 tax credit statement etc. attached Directorates of CBDT. IRS Online viii. Latest Updates on website and Deputation Module is the online deputation email/SMS – It will help the taxpayers module designed for receipt and the faster in finding out the information required processing of the deputation applications as per upcoming compliance dates on and streamlining the deputation cadre the main window of the Tax Payer clearance of the IRS officers. This module Services. brings together all the stakeholders - DG(Vig) office, AD. VI A CBDT, APAR Cell ix. Tax Gyaan –Tax Gyaan is a multiple HRD, ADG-3 HRD Office and CCA Office choice question web-based game to and all IRS officers on one single platform. provide knowledge to the youths accessible from mobile as well as v. UDAAN –The IRS Mentoring Programme desktop. Scheme has commenced from 1st October, 2021. The primary objective of UDAAN is to 8.1.3 New Initiative in respect of Human Resources support the young IRS officers professionally Development (HRD) and emotionally as well as to guide them i. The Directorate of HRD has successfully through various practical aspects on joining shifted from in-house portal for APAR writing a station on first posting. Through this to NIC based portal e-Office (SPARROW) programme, the young officers would be for both group A and B officers which would exposed to the right values and ethics at the smoothen and expedite the process of APAR nascent stage careers so as to develop a writing. This will also align the department positive attitude towards the Income Tax 212Department of Revenue III Department. Development of a mentoring The portal further provides information about culture through a pool of trained and the documents required for customs committed mentors has been a key priority clearances of import or export commodities. area for the Directorate of HRD. It also provides information about the requirement of necessary permissions/ vi. Gender cell – The inputs on female clearances or requirement of License/ employees received from various Pr. CCIT Permit/Certificates/Other Authorizations charges were updated in the gender (LPCOs) to be obtained from any Partner database. Government Agency (PGA) for imports and 8.2 Central Board of Indirect Taxes & Customs exports of commodities. Other important information on various aspects of Customs (CBIC): such as import and export through posts and 8.2.1 Anti-Smuggling Unit: courier, import of samples, re-import and re- export of goods, self-sealing facility for During the year 2020-21 (upto November, 2021), exporters, project imports and Traveller’s following major initiatives have been taken by Anti- guide for passengers arriving in India or Smuggling Unit: departing from India, is also available on the i. PGA eSANCHIT (Automatic License portal. The portal also features a pan India Transmission and Verification)- Single map showing all the Customs seaports, Window implemented PGA eSANCHIT on airports, land customs stations etc. Also, the 16.11.2018 whereunder all the PGAs would portal contains addresses of the regulatory upload PDF of the License/Permit/ agencies and links to their websites. Certificate/Other Authorization (LPCO) iii. Application Program Interface (API)- API issued by them on eSANCHIT and would for fetching PDF documents from PGAs has communicate the document/image been implemented with one of the PGAs reference number to the beneficiaries (DRN/ namely DG Hydrocarbon (DGHC). This has IRN), who can use the said IRN/DRN for done away the process of manual uploading making the LPCO available to the customs of LPCOs by PGAs. More PGAs were for clearance of goods. This would eliminate requested to come forward for the initiative. physical interface between PGA, Customs Meanwhile, it was decided go for integrating and beneficiaries. It reduces dwell time and the PGAs through API for transferring of data cost of shipment. As of now, 53 PGAs have elements of LPCOs instead of pdf been enabled for uploading LPCOs on document. In this regard, data fields of the eSANCHIT. Further, Single Window is in LPCOs pertaining to more than 50 PGAs process of identifying more PGAs. were identified and common fields were mapped. KPMG, the consultant of CBIC ii. Compliance Information Portal (CIP)-In have been engaged to prepare a common compliance of Article 1.3 of the World API specification document. Discussions Trade Organization’s (WTO’s) Trade were held with the development teams of Facilitation Agreement (TFA), the Central DG Systems and KPMG. To start with, 4 Board of Indirect Taxes and Customs PGAs namely DGHC, GJEPC, APEDA and (CBIC), has launched an Indian Customs Coffee Board have been identified. The Compliance Information Portal (CIP) as Technical Specifications have been shared another facilitation tool for trade as a step with ICES and ICEGATE for finalization of towards enhancing ease of doing the same and development of APIs business. The portal can be accessed at www.cip.icegate.gov.in/CIP. The portal iv. Training for the PGAs: In co-ordination with provides a free, easy and quick access to NACIN, Faridabad an online training was information on all Customs procedures scheduled for the officers of 6 PGAs working and regulatory compliance for nearly on SWIFT. 12,000 Customs Tariff Items. It provides v. Training to Departmental Officers all necessary information related to laws working as Authorised Officer under FSS governing the cross-border trade, step by Act: FSSAI has authorised customs officers step procedures and Acts of Customs to function as authorised officers under FSS along with applicable duties and taxes on Act at 128 locations. In order to ensure each Customs Tariff Items on a single compliance of food safety regulations, Single platform. Window has organised online training of 213Annual Report 2021-2022 departmental officers. The training was DG as well as all IRS(C&IT) officers on one provided by FSSAI officers. The training was platform for faster processing and attended by more than 150 officers. streamlining the deputation cadre clearance procedure. The Endeavour is to complete vi. Webinars for the trade and PGAs: During the deputation cadre clearance processing the Pandemic, Webinars have been in around 8 working days’ time, with conducted for the trade and the PGAs, working in an automated environment. highlighting the potential and importance of e SANCHIT for making the cross-border (ii) SPARROW-CBIC project, for online writing trade complete paperless. of APAR of Group B and C officers (Grade vii. Non-tariff Measures: Non-tariff measures Pay 1900 and above) of Central Board of are generally defined as policy measures Indirect Taxes and Customs (CBIC) was other than ordinary customs tariffs that can successfully implemented w.e.f F.Y. 2018- potentially have an economic effect on 19 and covered more than 50,000 Officers/ international trade in goods, changing Staff (Head Havaldar and above) of CBIC. quantities traded, or prices or both. Standard In the mainstream executive cadres under Operating Procedure for notification of new CBIC, Havaldar and MTS were still not Non-Tariff Measures (MTM) or other import/ covered in SPARROW-CBIC and their export restrictions/prohibitions by various APARs were continued to be written in Ministries/Departments/Government manual/hard copy only. Havaldars and MTS Agencies was issued according to which being the feeder grade/ cadre for further PGAs will forward non-tariff measures to promotion to the grades where APARs were Director (Customs) as per the proforma. In already being written online, a need was felt pursuance of same, tariff item wise NTMS that their APARs also need to be written have been complied and shared with NCTF. online. The mapping of personnel in the Grade of MTS and Havaldars in SPARROW 8.2.2 Drawback Division: CBIC was also an action point submitted by Both the RoDTEP scheme and RoSCTL scheme DGHRD to the Board and the same was to provides for remission amount in the form of transferable be completed by 30.09.2021. The same has duty credit issued to a person and maintained in the been completed and all MTS and Havaldars, electronic duty credit ledger in the customs automated on the basis of data provided by field system. In this regard, this Division vide Notification No. formations, have been mapped on to 75/2021-Customs (N.T) dated 23.09.2021 has issued SPARROW CBIC w.e.f APAR cycle 2020- Electronic Duty Credit Ledger Regulations, 2021 21. Further, HRM-I, DGHRD is the nodal specifying therein use, transfer, maintenance etc. of office for APAR representation in respect of Electronic Duty Credit Ledger (EDCL). EDCL would Group ‘A’, IRS(C&IT) officers. In case of ensure electronic processing and issuance of electronic representation against APAR grading/ duty credits/ benefits without any manual intervention, comments, received from JC and above, making the process transparent, faster and efficient. processing is done at HRM-I and the case 8.2.3 The Directorate General of Human Resource is presented before appropriate Referral Development (DGHRD) Board. During 2020-21, 7 representations from Pr./ Commissioner/ADG and 8 8.2.3.1 HRM-I Wing: representations from JC/ADC, pertaining to Performance and achievements of HRM-I APAR year 2018-19 and 2019-20 were Wing during the year 2021-22 (up to November 2021): disposed of in HRM-I. Apart from this, 56 During the year 2021, following major initiatives have been APAR representations pertaining to AC/DC, taken by DG (HRM): along-with comments of Reporting and (i) E-Pratiniyukti (Online Deputation Module): Reviewing officers, were sent to Zonal Pr. e-Pratiniyukti is a single window, online Chief Commissioner/ADG for disposal. Deputation Module for receipt and (iii) Recruitment rules for the post of Sr. Private processing of deputation applications/cadre Secretary were notified vide GSR No.112 clearance of IRS (C & CE) officers. The dated 18/08/20. module was launched on 01.09.2020 by the Hon’ble Chairman-CBIC. The module (iv) Recruitment rules for the post of Sr. Private brings together all stakeholders i.e. Ad.-II Secretary were notified vide GSR No.25 CBIC/Ad.-V CBIC/DGoV/DGHRD and CCO/ dated 09/03/21. 214Department of Revenue III (v) Recruitment rules for the post of online writing of APAR in SPARROW-CBIC to Administrative Officer were notified vide Havaldar and MTS (Group C mainstream GSR No. 305(E) dated 21/05/20 cadres of Central Board of Indirect Taxes and Customs (CBIC), beginning with APAR cycle (vi) DPCs for Group A & Group B to A:- 2020-21. The mapping of personnel in the • DPC for the grade of Assistant Grade of MTS and Havaldars in SPARROW Commissioner to Deputy Commissioner CBIC was also an action point submitted by conducted for the batch of 2017-18. DGHRD to the Board and the same was to be completed by 30.09.2021. The same has been • DPC conducted for the grade of Chief completed and all MTS and Havaldars, on the Commissioner to Principal Chief basis of data provided by field formations, have Commissioner. been mapped on to SPARROW CBIC w.e.f. • Preparatory work for the promotion of APAR cycle 2020-21. Joint Commissioner to Additional Projections till March 2022: Commissioner has been completed for a) To create an effective database which the batch of year 2009. DPC will be would streamline and facilitate the conduct conducted in the last week of of the DPC process, APARs for the last November 2021. 10 years of all Group B & C officers/ staff • NSFG for the batch 1988 to 2001 for are to be scanned and uploaded in the the rank of Joint Commissioner to SPARROW-CBIC module. Additional Commissioner. b) Pursuing of Cadre Restructuring (vii) A task force was formed for implementation proposal under consideration of of iGOT-Mission Karmyogi for DoP&T. determining framework of Roles, c) Undertake review of performance Activities and competencies required by parameters as already indicated in the the officers and staff of CBIC at various APAR formats and to make necessary levels. DG, DGHRD was appointed as the changes as required so as to keep head of the task force for preparing the themselves relevant and updated. FRAC documents. 8.2.3.2 HRM-II Wing: (viii) SPARROW-CBIC project, for online writing of APAR of Group B and C officers (Grade Pay Performance and Achievements of HRM-II 1900 and above) of Central Board of Indirect wing of DGHRD: Taxes and Customs (CBIC) was successfully i. Launch of BhugtaanTab: In order to enable implemented w.e.f F.Y. 2018-19 and covered the staff as well as the vendors, to check, the more than 50,000 Officers/Staff (Head status of their submitted bills in Administration Havaldar and above) of CBIC. In the branch, a “ Bhugtaan” tab has been made and mainstream executive cadres under CBIC, launched by HRM-II office on 01.04.2021on Havaldar and MTS were still not covered in DGHRD’s website and is working successfully. SPARROW-CBIC and their APARs were All vendors and staff can now check the status continued to be written in manual/hard copy of their bills from the tab. only. Havaldars and MTS being the feeder ii. Launch of Swachhta@CBIC- an e- module grade/ cadre for further promotion to the to monitor Swachhta projects grades where APARs were already being written online, a need was felt that their APARs iii. The Swachhta@CBIC tab designed by HRM also need to be written online so as to bring II wing was launched on 8th October, 2021. on board all mainstream executive cadres of It is an online module (hosted on DGHRD Group ‘B’ & ‘C’ for online APAR writing in website) which will allow easy and quick SPARROW-CBIC. This would create an access to the swachhta projects initiated by effective database which would enable the field formations at a single click, thereby streamlining of the DPC process and bring ensuring proper monitoring of the fund transparency and responsiveness in the utilization and the status of the projects appraisal process. Thus, to further deepen the throughout the year. As the project details implementation of SPARROW-CBIC, as also of each formation will be available for view to increasingly move towards Digital to all, it will also encourage the dissemination Governance, it was decided to extend the and further replication of best practices 215Annual Report 2021-2022 amongst the field formations. It is important Civil List 1961, which was a unified Civil List to mention that during last four years total of Customs and Central Excise as well as 1494 projects have been successfully Income Tax as an Appendix to the current implemented and for year 2021-22, 525 Civil List. projects are under progress. A fund of Rs. ix. E-Module For HYB Reports: The on-line 60 Cr has been earmarked under the Module is now operational for reporting of budgetary head OE Swachhta, out of which Sanctioned Strength, Working Strength and 40 cr have been allocated to the formations. Vacant Posts of various Cadres on a certain iv. Release of the 3rd Edition of Swachhta date, e.g. as on 01st January or 01st July of booklet “Swachhta Uday 2021” and a year from Cadre Controlling Authorities, presentation of the Annual Swachhta Awards Directorates and from formations under their 2020-2021 control. The online E-Module replaced conventional collection and assimilation of v. The Swachhta booklet captures the reports, saving both time and efforts glimpses of various Swachhta projects involved. undertaken by the formations and the details of the best Swachhta projects of the zones/ x. Development of ‘Group ‘B’ & Ç’ module and directorates/ commissionerates selected for collection of basic data for Group ‘B’& Ç the Swachhta Awards-CBIC (2020-21). The officers: booklet was released by the Chairman CBIC An urgent need was felt to collect the basic on 08.10.2021. data of all officers under CBIC to assist vi. Special Cleanliness Drive during Swachhta Hon’ble Supreme Court in a Court matter in Pakhwada: the month of October, 2021. Accordingly, HRM-II wing conceptualized and developed A special campaign for cleanliness was an e-module exclusively for Group ‘B’& Ç’ conducted by DGHRD in the month of officers and in a time bound manner October, 2021. A total of 608 Swachhta collected basic data of all officers including projects were undertaken by the various their name, DOB, Category, Designation, offices of CBIC during the special campaign. Date of Joining in Department and current A total of 35 projects were undertaken by place of posting. The said module is hosted DGHRD for disposal of e-waste, paper on DGHRD website and maintained waste, old office items, cleaning of office internally. premises and total 1214 files were weeded out. 392 sq. ft. of Space was thereby freed 8.2.4 The Directorate General of Performance up. Management (DGPM): vii. E-Disposition List: The module, launched in e-Office is a “Mission Mode Project” under “Digital the month of October 2020, ensures timely India Programme” implemented Pan India on 15.06.2020 availability of data in respect of officers in all the 436 offices under CBIC, viz. CGST Zones, posted in various field formations/ Customs formations zones and Directorates for file Directorates, on real time basis. management, movement and decision making. Implementation of e-office has been an effective office viii. Civil List with Photograph: On 25.06.2021, tool with the onset of the Covid pandemic, since the Chairman CBIC has released the 26thedition physical work processes have been severely affected on (2021) of the IRS (C&IT) Civil List updated account of the safety protocols. The following initiatives as on 01.01.2021. This edition is innovative were taken to ensure the reach of e-Office in the and unique in many ways. Besides the hard organisation: bound colour edition, the current edition of the Civil List has several firsts - the (i) Online trainings for all EMD Managers as incorporation of photographs of officers and well as users were organized; the symbolic depiction of a medal against (ii) User manuals for the various e-office related the names of Presidential Awardees. The issues were created and circulated; names and photographs of past Chairpersons of CBIC has been included to (iii) Four focussed groups i.e., EMD Managers ensure their place in CBIC’s institutional for Instance-I, EMD Managers for Instance memory and to recognize contributions, they II, CBIC Instance-I & CBIC Instance-II were made as head of family. Another valuable created for providing real time solution to addition is inclusion of contextual portion of the issues besides a dedicated e-mail id that 216Department of Revenue III is attended to by dedicated teams headed lists are uploaded on weekly basis and Daily orders are by System Administrator. Problems, if any, uploaded on daily basis. Final orders are uploaded as could also be raised using the Saksham soon as they are signed by the Members. All information platform. concerning the Tribunal are available as required by DOPT OM No.1/6/2011 dated 15/04/2013. The NIC has Between 01.04.2021 to 30.11.2021, 3,85,011 e undertaken the job of online filing of appeal which is first Files were created, 56,90,889 e Files were moved and of its kind in a Tribunal. Online payment of appeal fee is 20,04,398 e Receipts were created indicating extensive also done along with it. use of e Office in 436 filed formations of CBIC. 8.5 Directorate of Enforcement: 8.3 Narcotics Control (NC): ED has made a number of efforts to digitize its 8.3.1 Central Bureau of Narcotics (CBN): functions for ML risk profiling and streamlining the ML / As regards, E-Governance activities, it is stated TF investigations with the use of AI, computerization, etc, that various instructions of the Government, on issue of the same are summarized as below: e-governance, are noted for compliance and necessary i) Project of Computerization of the action. Use of CCTV’s Camera’s at Settlement and processes of ED: This project has been Weighment centres was also successfully carried out. initiated to computerize all the processes of Payment to cultivators made through e-payment from the the ED including identification of ML cases crop year 2012-2013 continuously. on risk-based mechanism, handling all Computers have been provided, almost, in each matters of investigation in the system, section and have been inter-connected through Network. having interface with other external agencies All urgent reports or replies to the references received for smooth and expeditious exchange of from the Ministry are being forwarded to the Ministry of information, etc. Important features of this Finance, New Delhi and other offices through e-mail, as project which will assist in digital far as possible. transformation of ED are as under: The Central Bureau of Narcotics website has a) The ED will get a customized software been updated and all the application forms for issue of [termed as Core ED Operations export/import authorization for export/import of System (CEDOS)] developed for use Psychotropic substances, Narcotics Drugs and Precursor of its officers and all the file work will chemicals can be downloaded from the CBN website: be replaced by system-based www.cbn.nic.in. The opium cultivation data from 1998- functioning in all areas of work 99 has also been uploaded on the CBN website: including intelligence collection and www.cbn.nic.in processing, investigation, management of properties, human 8.3.2 Chief Controller of Factories (CCF): resource management, etc. The Organization of Chief Controller of Factories b) The system will be able to integrate with has launched its own website which contains complete various external agencies through API information about the organization, its activities, contact which are following as – details, etc. All tenders for procurement of material and • FIU: The STRs from FIN-NET services are timely loaded in the website for information could be accessed through the and participation of the manufacturers / suppliers. The interface between the two organization has also arranged to display various applications information pertaining to production of drugs, sale of drugs, etc. through internet. Placing of various other • CBI: Interface with CRIMES information for information of the concerned authorities system of CBI to ensure timely have also been taken up and likely to be provided soon exchange of information. through internet. Placing of various other information of • NATGRID: Information could be the concerned authorities have also been taken up. The extracted by NATGRID through organization purchase goods & services through GeM which ED can get inputs. ad tendering through e-procurement portal. • GSTN: This will lead to allowing 8.4 Customs, Excise & Service Tax Appellate access to the financial information Tribunal (CESTAT): filed by a person in the GST The dynamic website of the Tribunal started in returns which will assist in January 2017 is fully operational with the help of NIC and intelligence collection and is now extended to all eight Regional Benches. Cause investigation. 217Annual Report 2021-2022 • CBDT: Information about the PAN ii) Risk Assessment Monitoring Committee: number, bank accounts, filing In consonance with FATF standards, the income, 26 AS, etc could be made Directorate of Enforcement has formulated available in the system. a risk based system for selection of cases for money laundering investigation which • Integration with other relevant provides that certain categories of cases government bodies application like should be mandatorily investigated and e-courts, CCTNS, ICJS, etc. certain cases shall be investigated on the c) The system shall create and maintain basis of quantity/amount involved. a database of all the intelligence/inputs The access to CCTNS/ICJS database received from LEAs, etc. and ongoing (which is a repository of the FIRs registered cases of ED so that a consolidated by the LEAs) has been given to all the offices database may be created including of the Directorate. All the potential cases of details of individuals, Bank Accounts, ML are identified online through logging into Corporate Entities, Mobile Numbers, CCTNS/ICJS portal and the cases which do PAN / Aadhar Number / CIN # / IEC not fall under the mandatory criteria are Code etc. This will help in ensuring that examined by a Risk Assessment Monitoring ED has a ready-made database to refer Committee (RAMC), which holds meetings back or to provide linkages as and every quarter through Video Conference. when they come in contact with ED The digitization project will further lead to during any new investigation. refinement in selection of cases based on d) An easy to access and responsive risk profile. search functionality shall be available iii) Use of satellite imagery for managing to ED officers to help them conduct attached properties:During the course of search on individuals, transactions, investigation, the ED attaches various cases, supporting documents and properties which are spread across the underlying data. Every time the above country. In order to monitor these properties parameters are entered in the system, and to ensure that no encroachments/ the database can provide all details unauthorized constructionsare done on the related to it. property, satellite images of the properties e) The CEDOS solution shall also have are being sought from National Remote advanced analytics and capability of Sensing Center (NRSC). Further, ED has performing advanced analysis on high requested Bhabha Atomic Research Center volume data received from various (BARC), Vishakhapatnam to develop case proceedings as well as received software for processing satellite images of from external agencies. attached properties to monitor them at regular intervals and the BARC is working f) The existing records shall also be on the same. scanned with OCR capability so that the details are captured in the iv) Analysis of call data records:ED intercepts database. calls of various persons during the course of investigation. However the same are This project will enable smooth and fast voluminous and various difficulties are faced co-ordination between ED and various in analyzing them. To overcome the same, domestic predicate agencies and FIU& Directorate of Enforcement contacted BARC NATGRID. ED will have access to databases of various domestic which has developed 2 software (one each agencies which will enable ED to verify for Hindi and English languages) to convert facts in real time which would have speech to text and analyse these call data otherwise taken weeks to months. The records automatically. Also, this project is AI used in the project will save time being further extended to assimilate the taken in various processes and would major Indian regional languages. For this, fasten the pace of the ML investigation. data (both audio and transcript) has been The Detailed Project Report (DPR) has obtained from Central Institute of Indian already been submitted by M/s Ernst Languages (CIIL), Mysuru and provided to & Young and the project is progressing BARC for developing similar software in with good pace. Regional languages too. 218Department of Revenue III v) Summons module:The Directorate of reducing case backlogs and improving the Enforcement has developed an intranet user experience. application for generating summons [issued • Advancing analytical capabilities to generate under the provisions of Section 50(2) of the more accurate linkages, enabling deeper PMLA, 2002]. The most important feature insights through an enriched profile of of the system generated summons is that suspicious entities, with integration of the print out of summons shall have a QR additional government and commercial code at the bottom of the summon(s). The databases and deployment of AI / ML, to receiver of the summons shall have the enable better decision making by analysts. option of verifying the authenticity of the summons by scanning the QR code printed • Building efficient and intelligent mechanisms on the summons on our official website. This for dissemination and exchange of will help in digitalizing the process of information with other agencies. issuance of summons and will also help in • Equipping law enforcement agencies with bringing transparency in the process. It is analytical tools for enhanced analysis of the also expected that it will also ensure that cases disseminated to them. individuals are not conned/fooled by unknown persons through fake summons. • Setting up of a training cell and Learning Earlier, as summons were being issued Management System to conduct online and manually, it was not possible to centrally classroom trainings and enable continuous learning for all users in the FIU ecosystem. maintain & monitor data of summons and to ensure authenticity of summons issued. • Setting up of a dedicated Strategic Analysis Lab to stay abreast of the developments and vi) Handling of digital evidences: ED seizes applications of emerging technologies for huge number of digital devices (e.g. hard AML, recommend best practices and disks, mobile phones), during search and generate insights to strengthen the seizure operations. Analysis of these functioning of FIU-IND. devices is extremely essential for the purpose of investigation. But, it often • Strengthening security by adopting an array consumes a lot of time (2 to 6 months) to of best-in-class measures, standards, tools get data retrieved from National Cyber Labs. and internal controls for information security. To overcome this issue, the Directorate Development of FINNET 2.0 system commenced signed a MoU with National Forensic in August 2020 with onboarding of the Managed Service Sciences University (NFSU), Gandhinagar Provider (MSP) selected through a competitive bidding to help create ED its own cyber lab with process. The system design and development are trained staff. Now, ED has 6 cyber labs of underway, and the system is envisioned to go-live in 2022. its own wherein forensic analysis of these digital evidences is done by using 9. Swachh Bharat Campaign specialized forensic tools. Now ED is able 9.1 Revenue Headquarters: to analyze digital evidences in 4-5 days of seizure operations. Further, the ED has Department of Revenue has taken several steps entered into a MoA with the National as a part of Swachh Bharat Campaign initiated by Forensic Sciences University (NFSU), Government of India under Swachhta Action Plan 2021- Gandhinagar for establishing a state of the 22, various activities were undertaken by the Department, art cyber lab at Gandhinagar which will be viz. Swachhata Pakhwada campaign from 16th August, 7th cyber lab of ED. 2021 to 31st August, 2021; many activities were undertaken and images were uploaded on the web portal 8.6 Financial Intelligence Unit – India (FIU – IND): of the Ministry of Drinking Water and Sanitation. The Department has been monitoring the implementation of FIU-IND initiated project FINNET 2.0 to advance Swachhta Action Plan of all field formations of Central capabilities of the FINNET system through a technological Board of Direct Taxes (CBDT) and Central Board of transformation. This will encompass the redevelopment Indirect Taxes and Customs (CBIC). Feedback via video and revamp of the existing FINNET application, redesign conferencing with Nodal Officers of CBDT & CBIC was of processes to improve compliance, and strengthening undertaken during Swachhta Pakhwada. During 2021- of the strategic and tactical analysis capabilities of FIU- 22, to encourage cleanliness in the office complexes, IND. The core objectives of this project will include: awareness drives for maintaining cleanliness with the • Building a more efficient system for participation of the officers and employees were done in collection of data from reporting entities, this Department in addition to routine cleaning, sweeping, 219Annual Report 2021-2022 mopping of floors/ corridors of all the rooms including It is an online module (hosted on DGHRD staircases, toilets, open area etc. Sufficient steps were website) which will allow easy and quick taken to sanitize the rooms/ open areas etc., distribution access to the swachhta projects initiated by of mask, sanitizers, soap and other safety-related the field formations at a single click, thereby products on routine basis to prevent spread of COVID- ensuring proper monitoring of the fund 19 in the office premises, as per the protocol issued by utilization and the status of the projects the Ministry of Home Affairs and Ministry of Health & throughout the year. As the project details Family Welfare from time to time. Staff cars allocated to of each formation will be available for view senior officers were also sanitized regularly to prevent to all, it will also encourage the dissemination spread of COVID-19. Special Drive for weeding out of and further replication of best practices old records/ files, disposal of waste material, disposal amongst the field formations. It is important of newspaper waste, old/ written off books, disposal to mention that during last four years total of e-waste etc. was carried out in the Department as 1494 projects have been successfully well as in the field formations of the CBDT/ CBIC & implemented and for year 2021-22, 525 other subordinate offices of the Department of projects are under progress. A fund of Rs. Revenue. Weeding/ recording/ digitization / scanning of 60 Cr has been earmarked under the old records was carried out for optimization of office budgetary head OE Swachhta, out of which space. Disposal of obsolete goods/ e-waste was also 40 cr have been allocated to the formations. carried out regularly to maintain overall cleanliness & ii. Release of the 3rd Edition of Swachhta proper ambience of the office premises. Emphasis was booklet “Swachhta Uday 2021” and also given on curbing single use plastic (SUP) and presentation of the Annual Swachhta Awards discourage use of plastic in the Department. All the 2020-2021 activities relating to Swachhta were undertaken during Swachhta Action Plan 2021-22 covering Revenue iii. The Swachhta booklet captures the Headquarters as well as field offices of CBDT & CBIC. glimpses of various Swachhta projects undertaken by the formations and the details 9.2 Central Board of Direct Taxes (CBDT): of the best Swachhta projects of the zones/ Cleanliness campaign from 2nd October 2021 to directorates/ commissionerates selected for 31st October 2021 the Swachhta Awards-CBIC (2020-21). The booklet was released by the Chairman CBIC The following actions with regards to the on 08.10.2021. ‘Swachata Abhiyan’ have been undertaken from 2nd October till 31st October 2021 in the Central Board of iv. Special Cleanliness Drive during Swachhta Direct Taxes (including the field offices of the CBDT): Pakhwada a. Cleanliness Campaigns have been A special campaign for cleanliness was conducted at 416 different sites as part of conducted by DGHRD in the month of October, 2021. A the ‘Swachata Abhiyan’. total of 608 Swachhta projects were undertaken by the various offices of CBIC during the special campaign. A b. A total of 6,32,257 files were reviewed, out total of 35 projects were undertaken by DGHRD for of which 4,52,447 non-essential files were disposal of e-waste, paper waste, old office items, weeded out. cleaning of office premises and total 1214 files were c. Rs. 48,02,016/- of revenue was generated weeded out. 392 sq. ft. of Space was thereby freed up. as a result of the scrap disposal undertaken. 9.3.2 National Academy of Customs, Indirect Taxes This involved old and obsolete furniture/ equipment etc. & Narcotics (NACIN) d. As a result of the weeding out of files and i. NACIN successfully completed construction scrap disposal activities, a total of 86,854 of four water storage tanks under Swachhta sq feet area was freed. Project at a remote village of Parbung in Manipur and another project on construction 9.3 Central Board of Indirect Taxes & Customs of community sanitary toilet at Songkot (CBIC): Village is under process which will be 9.3.1 Directorate General of Human Resource completed shortly. Development ii. Construction of Shed for serving Mid-Day i. Launch of Swachhta@CBIC- an e- meal for students at Hinoo United module to monitor Swachhta projects Government School Ranchi. The Swachhta@CBIC tab designed by HRM iii. Zonal Campus, Chandigarh donated two II wing was launched on 8th October, 2021. Sanitary Pad Incernators from the Swachhta 220Department of Revenue III Fund to “Ashiana”, Sector 16 Panchkula report was sent to The Deputy Director which runs an orphanage for girls and to (HRM-II), Directorate General of Human Govt. Primary School, Sector 15 Panchkula Development, New Delhi. in the month of December 2021 to promote ii. Office premises was cleaned and beautified the personal hygiene of young girls who under the Swacch Bharat Abhiyan. reside/study at these organizations. iii. MTSs / Farash / Sweepers deployed at the iv. A set of two Community Composting Bins office were motivated during the swachhta (each bin of capacity 1000 lit) were provided period. to Greater Visakhapatnam Municipal Corporation (GVMC). The same are placed iv. Banners with slogans of swachhta in GVMC’s Composting Station, awareness were displayed at different Public Visakhapatnam. Places in Gwalior. v. A Sanitary Napkins Incinerator Machine with v. Motivating messages on cleanliness was Smoke Control Unit has been provided to aired in Gwalior through 94.3 FM on 22nd Government Residential School for Visually Oct, 2021 at 10:54 A.M. Handicapped Girls at Sagarnagar, 9.5 Directorate of Enforcement: Visakhapatnam. Swachh Bharat Abhiyan launched by the Hon’ble vi. Zonal Campus, Patna has installed water Prime Minister on 2nd October, 2014 is being vigorously purification system along with water cooler followed by ED. On 2nd October, 2021, a pledge ceremony at Shri Chandra Senior Secondary +2 was organized across all offices of the Directorate where School, Kurji Mohalla, Patna and at Vani all the officers and staff members took pledge to keep Mandir, Rajbanshinagar, Patna. our nation ‘Swachh’. Further, various drives have been organized including installation of banners for creating 9.4 Narcotics Control (NC): awareness among citizens and government officials i. Office celebrated “Swachhata Pakhwada” towards the cause of this “Abhiyan”. Regular inspection from 2nd October to 31st October,2021 and of the office premises is also being done. 221Annual Report 2021-2022 222 I - eruxennA sCBO/sTS/sCS fo noitatneserpeR )CIBC( smotsuC dma sexaT tceridnI fo draoB lartneC :noitazinagrODepartment of Revenue III 223 I - eruxennA )TDBC( sexaT tceriD fo draoB lartneC :noitazinagrO .0202 raey radnelac eht gnirud 9102 noitanimaxE secivreS liviC hguorht detceles setadidnac eht ot TDBC yb deussi neeb sah stnemtnioppA fo reffO * .rupgaN ,TDAN ,noitutitsnI gniniart eht ni gniniart gniogrednu era sreciffO eht sa evoba 5 ot 2 nmuloc ni dedulcni ton era srebmun 57 esehT ©PLS ni truoC emerpuS elb’noH eht fo 8102.80.92 detad redrO ot tcejbus 0202.21.61 detad redrO eciffO s’TDBC ediv edam neeb evah snoitomorp esehT ** .1102/12603 .oNAnnual Report 2021-2022 224 I - eruxennA retrauQ daeH euneveR :noitazinagrODepartment of Revenue III 225 I - eruxennA )DNI-UIF( tinU ecnegilletnI laicnaniF :noitazinagrO deredacne era stsop ’A‘ puorG 01 ,stsop ’A‘ puorG 24 eseht fo tuo sreciffO ’A‘ puorG 24 fo htgnerts denoitcnas a gnivah si DNI-UIF * era stsop 42 ,stsop ’A‘ puorG 23 gniniamer eht fo tuO .erdac CIN yb edam era stnebmucni eht fo gnitsop hcihw tsniaga ,CIN htiw .1202.11.03 no sa dellif )’C‘ puorG( STM 60 fo stsop rof tpecxe ylno noitatuped si tnemtnioppa fo edom ehT :etoNAnnual Report 2021-2022 226 I - eruxennA AMEFAS rednu lanubirT etalleppA ehT :noitazinagrODepartment of Revenue III 227 I - eruxennA ytreporP deriuqcA yllagelli fo erutiefroF rof ytirohtuA tnetepmoC :noitazinagrOAnnual Report 2021-2022 228 I - eruxennA )TATSEC( lanubirT etalleppA xaT ecivreS & esicxE ,smotsuC :noitazinagrODepartment of Revenue III 229 I - eruxennA noissimmoC tnemeltteS xaT ecivreS & esicxE lartneC ,smotsuC :noitazinagrOAnnual Report 2021-2022 230 I - eruxennA scitocraN fo uaeruB lartneC :noitazinagrODepartment of Revenue III 231 I - eruxennA tnemecrofnE fo etarotceriD :noitazinagrOAnnual Report 2021-2022 232 I - eruxennA yciloP dna ecnaniF cilbuP fo etutitsnI lanoitaN :noitazinagrODepartment of Revenue III 233 II - eruxennA SEITILIBASID HTIW SNOSREP EHT FO NOITATNESERPER )CIBC( smotsuC dna sexaT tceridnI fo draoB lartneC :noitazinagrO :etoN )noisiv wol ro ssendnilb morf gnireffus snosrep( deppacidnaH yllausiV rof sdnats HV )i( )tnemriapmi gniraeh morf gnireffus snosrep( deppacidnaH gniraeH rof sdnats HH )ii( )yslap larberec ro ytilibasid srotomocol morf gnireffus snosrep( deppacidnaH yllacidepohtrO rof sdnats HO )iii( ot detomorp eb nac seitilibasid htiw snosrep ,revewoH .stsop B dna A puorG ot noitomorp fo esac ni seitilibasid htiw snosrep rof noitavreser on si erehT )vi( .seitilibasid htiw snosrep rof elbatius deifitnedi ni tsop denrecnoc eht dedivorp ,stsop hcusAnnual Report 2021-2022 234 II- eruxennA )TDBC( sexaT tceriD fo draoB lartneC :noitazinagrO .0202 raey radnelac eht gnirud 9102 noitanimaxE secivreS liviC hguorht detceles setadidnac eht ot TDBC yb deussi neeb sah stnemtnioppA fo reffO * .rupgaN ,TDAN ,noitutitsnI gniniart eht ni gniniart gniogrednu era sreciffO eht sa evoba 5 ot 2 nmuloc ni dedulcni ton era srebmun 4 esehTDepartment of Revenue III 235 II- eruxennA retrauQ daeH euneveR :noitazinagrOAnnual Report 2021-2022 236 II - eruxennA )DNI-UIF( tinU ecnegilletnI laicnaniF :noitazinagrODepartment of Revenue III 237 II - eruxennA AMEFAS rednu lanubirT etalleppA ehT :noitazinagrOAnnual Report 2021-2022 238 II- eruxennA ytreporP deriuqcA yllagellI fo erutiefroF rof ytirohtuA tnetepmoC :noitazinagrODepartment of Revenue III 239 II- eruxennA )TATSEC( lanubirT etalleppA xaT ecivreS & esicxE ,smotsuC :noitazinagrOAnnual Report 2021-2022 240 II - eruxennA noissimmoC tnemeltteS esicxE lartneC & smotsuC :noitazinagrODepartment of Revenue III 241 II - eruxennA scitocraN fo uaeruB lartneC :noitazinagrOAnnual Report 2021-2022 242 II- eruxennA tnemecrofnE fo etarotceriD :noitazinagrODepartment of Revenue III 243 II- eruxennA yciloP dna ecnaniF cilbuP fo etutitsnI lanoitaN :noitazinagrOAnnual Report 2021-2022 Annexure - III Summary of important observations included in Audit Reports presented to Parliament during 2021 1. Central Board of Indirect Taxes and Customs (CBIC) 1.1 PAC Cell : Sl. Year Details of the Paras/PA reports on which ATNs are No. pending No. of ATNs which No. of paras/PA No. of ATNs sent have been finally reports on which No. of ATNs not but returned with vetted by Audit but ATNs have been sent by the observations and have not been submitted to PAC Ministry even for Audit is awaiting submitted by the after vetting by the first time their resubmission Ministry to the Audit by the Ministry PAC ATN yet to be 104 submitted: 13 FY (Pending for 62 152 2021-22 translation) First ATN sent in FY 2021-22: 271 1.2 PAC (Customs) : Sl. Year Details of the Paras/PA reports on which ATNs No. are pending No. of paras/PA No. of ATNs No. of ATNs sent but No. of ATNs which reports on which not sent by returned with have been finally ATNs have been the Ministry observations and Audit vetted by Audit but submitted to PAC even for the is awaiting their have not been after vetting by first time resubmission by the submitted by the Audit Ministry Ministry to the PAC 3 2020 39 4 31 2. Central Board of Direct Taxes (CBDT) (As on 30.11.2021) Sl. Year Details of the Paras/PA reports on which ATNs No. are pending No. of paras/PA No. of ATNs No. of ATNs sent but No. of ATNs which reports on which not sent by returned with have been finally ATNs have been the Ministry observations and Audit vetted by Audit but submitted to PAC even for the is awaiting their have not been after vetting by first time resubmission by the submitted by the Audit Ministry Ministry to the PAC Nil Nil Nil Nil 244Department of Revenue III 3. Integrated Finance Unit (IFU) Sl. Year Details of the Paras/PA reports on which ATNs No. are pending No. of paras/PA No. of ATNs No. of ATNs sent but No. of ATNs which reports on which not sent by returned with have been finally ATNs have been the Ministry observations and Audit vetted by Audit but submitted to PAC even for the is awaiting their have not been after vetting by first time resubmission by the submitted by the Audit Ministry Ministry to the PAC Nil Nil Nil Nil 245Annual Report 2021-2022 246 VI - eruxennADepartment of Investment and Public Asset Management IV Chapter - IV Department of Investment and Public Asset Management I. FUNCTIONS (ii) Efficient management of public investment in CPSEs for accelerating economic development and augmenting As per the present Allocation of Business rules, the Government's resources for higher expenditure. mandate of the Department is as follows: III. MISSION 1.(a) All matters relating to management of Central Government investments in equity including (i) List CPSEs on stock exchanges to promote people's disinvestment of equity in Central Public Sector ownership through public participation and improving Undertakings. efficiencies of CPSEs through accountability to its (b) All matters relating to sale of Central Government shareholders. equity through offer for sale or private placement or any (ii) To bring in operational efficiencies in CPSEs through other mode in the erstwhile Central Public Sector strategic disinvestment, ensuring their greater Undertakings. contribution to the economy. Note: All other post disinvestment matters, including (iii) Adopt a professional approach for financial those relating to and arising out of the exercise of Call management of CPSEs in the national interest and option by the Strategic Partner in the erstwhile Central disinvestment aimed at expanding public participation in Public Sector Undertakings, shall continue to be handled ownership of CPSEs. by the administrative Ministry or Department concerned, IV. ORGANISATIONAL STRUCTURE where necessary, in consultation with the Department of Investment and Public Asset Management (DIPAM). The Department of Investment and Public Asset Management (DIPAM) is currently headed by Shri Tuhin 2. Decisions on the recommendations of Administrative Kanta Pandey, Secretary. He is assisted by one Additional Ministries, NITI Aayog, etc. for disinvestment including Secretary, four Joint Secretaries and one Economic strategic disinvestment Adviser. The Department functions on the Desk Officer 3. All matters related to Independent External Monitor pattern and the assigned work is handled at the levels of (s) for disinvestment and public asset management. Joint Secretary, Director/Deputy Secretary and Under 4. (a) Decisions in matters relating to Central Public Secretary. Sector Undertakings for purposes of Government 2. The Organizational Structure of the Department is investment in equity like capital restructuring, bonus, placed at Appendix -I. dividends, disinvestment of government equity and other V. CURRENT POLICY ON DISINVESTMENT related issues. IN CPSEs (b) Advise the Government in matters of financial The Government follows a policy of disinvestment restructuring of the Central Public Sector Enterprises and through the minority stake sale and strategic for attracting investment in the said Enterprises through disinvestment of CPSEs. capital market. Strategic Disinvestment 5. The Unit Trust of India Act, 1963 (52 of 1963) along with subjects relating to Specified Undertaking of the Unit Strategic Disinvestment implies substantial sale of Trust of India (SUUTI). Government shareholding of a CPSE along with transfer of management control. Government policy on Strategic II. VISION disinvestment of CPSEs was successfully implemented (i) Promote people's ownership of Central Public Sector till 2004. However, thereafter, till 2014-15, disinvestment Enterprises (CPSEs) to share in their prosperity through in CPSE was carried out only through limited minority disinvestment. stake sale, and no strategic disinvestment took place. 247Annual Report 2021-2022 Since 2015-16, the Government has revived the policy Minority stake sale for strategic disinvestment by substantially overhauling For certain other CPSEs, the government carries out its approach for disinvestment of CPSEs. NITI Aayog was minority stake sale without transfer of management mandated to identify the CPSEs for strategic control through various SEBI-approved methods, in order disinvestment. to unlock the value, promote public ownership, meet the minimum public shareholding norms of SEBI and for Till February, 2021 NITI Aayog has identified CPSEs for ensuring higher degree of accountability. The modes of strategic disinvestment based on the criteria of (i) National disinvestment commonly used for minority stake sale Security; (ii) Sovereign function at arm's length, and (iii) include Initial Public Offer (IPO), Offer for Sale (OFS), Market Imperfections and Public Purpose. The policy on Buyback of shares and Exchange Traded Funds (ETF) strategic disinvestment is based on the economic offers. These methods play important role in principle that Government should discontinue in sectors, strengthening the capital market through (i) increasing where competitive markets have come of age and the float of well performing CPSEs (ii) providing economic potential of such entities may be better opportunity to retail investors to participate in an extended range of stocks and bonds and (iii) increasing liquidity discovered in the hands of strategic investor due to and depth of the markets. various factors such as infusion of capital, technological upgradation and efficient management practices.. VI. DISINVESTMENT PERFORMANCE In order to realize the mission of New, Self-reliant India, A. Minority Stake Sale there was a need to redefine public sector participation The various modes of disinvestment are: in business enterprises and to encourage private sector participation in all sectors. Against this backdrop, the New i. Initial/Further Public Offer (IPO/FPO) Public Sector Enterprise ("PSE") Policy for Atmanirbhar ii. Exchange Traded Fund Bharat was approved by Cabinet, on 27th January 2021 iii. Offer for sale (OFS) and was notified on 4th February, 2021. The policy intends to minimise the presence of Government in the PSEs iv. Buyback of shares across all sectors of economy. v. Strategic disinvestment Under New Public Sector Enterprise ("PSE") Policy i. Initial Public/Further Offer IPO/FPO public sector commercial enterprises have been classified as Strategic and Non-Strategic sectors. Following four Public Offer: When an issue / offer of shares or convertible broad Strategic Sectors have been delineated based on securities is made to new investors for becoming part of shareholders' family of the issuer, it is called a 'public the criteria of national security, energy security, critical issue'. Public issue can be further classified into Initial infrastructure, provision of financial services and public offer (IPO) and Further public offer (FPO). The availability of important minerals: significant features of each type of public issue are  Atomic Energy, Space and Defense; illustrated below:  Transport and Telecommunication; a) Initial public offer (IPO): When an unlisted company  Power, Petroleum, Coal and other minerals; and makes either a fresh issue of shares or convertible securities or offers its existing shares or convertible  Banking, Insurance and Financial Services. securities for sale or both for the first time to the public, it In Strategic sectors, bare minimum presence of the is called an IPO. This paves way for listing and trading of existing public sector commercial enterprises at Holding the issuer's shares or convertible securities on the Stock Company level will be retained under Government control. Exchanges. The remaining enterprises in a strategic sector, will be b) Further public offer (FPO): When an already listed considered for privatisation or merger /subsidiarization company makes either a fresh issue of shares or with another PSE or for closure. PSEs in non-strategic convertible securities to the public or an offer for sale to sectors shall be considered for privatisation, where the public, it is called a FPO. feasible, otherwise such enterprises shall be considered Achievements: During the last seven years (till 2020-21) for closure. 16 CPSEs have been listed which yielded Rs 29,870 Approval of the Government for strategic disinvestment crore, as compared to Rs 21,266 crore realized from listing of 6 CPSEs during 2009-14. An additional market of a specific PSE shall be taken from time to time, on a cap of Rs 1,81,000 crore was achieved through the new case-to-case basis. The timing for specific transactions listings. will however, be contingent, inter alia, on the considerations of appropriate sequencing, sectoral c) Listing of LIC on stock market through an IPO : CCEA trends, administrative feasibility, investors' interest, etc. on 08.07.2021 has approved "Listing of shares of the 248Department of Investment and Public Asset Management IV LIC of India on stock market through an IPO.  Govt. continues to retain management control Amendments in the LICI Act have been carried out to  Cost-effective enable listing. BRLMs, Legal Adviser, Statutory Auditor,  Time efficient (completed in 2 trading days) Ad Agency, Registrar and Collection Bankers have been appointed for the transaction. Miliman Advisors appointed  Transparent allocation based on price-parity for Actuaorial valuation. LIC has procured new Actiorial basis. Software System. M/s Battlboi and Purohit appointed as Achievements : After listing, further disinvestment by statutory Auditor for LIC IPO. IEV valuation work being OFS mechanism yielded Rs 94,915 crore through 42 done by LIC and valuation advises. Early invester Road transactions in last seven years. show was held. DRHP has been filed on 13.02.2022 During the current financial year (till 3.1.2022), OFS of with SEBI. IPO to be launched in March, 2022. AXIS Bank (through SUTTI), NMDC, HUDCO and HCL ii. Buyback of shares have been concluded yielding respectively Rs.3994.33 crore, Rs.3653.82 crore, Rs.720.46 crore and Rs.741.95 Buyback is the repurchase by a company of its shares crore amounting to a total of Rs.9110.56 crore. Stake from the existing shareholders that reduces the number sale IPCL (now RIL) yielded 219.34 crore. Government of its shares in the open market. has also received Rs.2,700 crore cash sale proceeds Objectives: Companies buy back their shares for a though strategic disinvestment of Air India. So far number of reasons: (04.03.2022) Govt. has received Rs. 12,424 crore as  To increase the value of shares held by disinvestment receipt for FY 2021-22. promoters. iv. Exchange Traded Fund  To eliminate any threats by minority shareholders ETFs have proved to be an important investment who may be looking for a controlling stake. opportunity for retail investors and have turned out to be  For CPSEs, buyback is a tool for Govt. of India a good instrument for Government of India's to disinvest the equity held by GoI in CPSEs and disinvestment programme. Since 2016-17, ETFs to make proper utilization of idle cash left with comprising a basket of CPSE stocks was used as a major CPSEs. instrument for disinvestment. Two ETF products, namely CPSE-ETF (10 CPSE stocks) and Bharat-22 (22 scrips  As per DIPAM guidelines dated 27.05.2016 the including CPSEs, PSBs and SUUTI stocks) were lau criteria for identifying potential buyback cases are nched by DIPAM. Through various offers of CPSE-ETF as under: and Bharat-22 ETF, Govt. could realize disinvestment  CPSE with net worth of Rs. 2,000 crore and proceeds of Rs.98,949 crore since 2016-17. However, cash and bank balance of Rs. 1,000 crore there is now limited scope of disinvestment through should mandatorily go for buyback. existing ETF window as many underlying Stocks in CPSE- ETF and Bharat-22 ETF have reached close to 51% level  Other CPSEs may also go for buyback, of GOI equity or some stocks in the ETF basket are no based on the merits of each case. longer available for disinvestment due to strategic Achievements : In order to make the use of idle cash disinvestment or other reasons. Also, there has been lying with CPSEs and for improving the Earning per share, concern that large and repeated tranches of Equity ETF Govt. used buyback method effectively.During the last were acting as a disincentive for investors in PSU stocks seven years, disinvestment proceeds of Rs 44,213 crore due to price overhang. Therefore, Government has now were realized from buyback of shares by 43 CPSEs.. decided to pause in employing Equity ETFs as a tool for iii. Offer for Sale (OFS) minority stake sale. B. Strategic Disinvestment Offer for sale (OFS) is a simpler method of share sale through the exchange platform for listed companies. The Based on the recommendation of NITI Aayog, the mechanism was first introduced by SEBI in 2012, to make Government, since 2016, has given 'in-principle' approval it easier for promoters of publicly-traded companies to for strategic disinvestment of 35 CPSEs and/or cut their holdings and comply with the minimum public Subsidiaries/ Units/ Joint Ventures of CPSEs and IDBI shareholding norms by June 2013. The method was Bank. Out of the 36 cases, 33 cases are being handled largely adopted by listed companies, both state-run and by DIPAM and 3 cases are being handled by the private, to adhere to the SEBI norms of minimum public respective Administrative Ministry/ Department. Out of shareholding. Government often used this route to divest the 33 cases being handled by DIPAM, strategic its shareholding in CPSEs. disinvestment transactions have been completed in 9 cases; 5 CPSEs are under consideration for closure; 2 Salient features of OFS: cases are held up due to litigation. Remaining 17  simple to execute transactions are at various stages. The details are given  market-driven at Annexure-I. 249Annual Report 2021-2022 With progress on privatization of Air India, the government Budget 2021-22 envisaged completion of a number of has crossed a significant milestone has been crossed major transactions namely BPCL, Air India, the Shipping with M/s Talace Pvt Ltd, a wholly owned subsidiary of M/ Corporation of India, BEML Ltd, Pawan Hans, Neelachal s Tata Sons Pvt Ltd emerging as the successful bidder Ispat Nigam Ltd., IDBI Bank etc in 2021-22. Budget also proposed to bring the IPO of LIC during FY 2021-22. The for sale of 100% equity shareholding of GoI in Air India transactions are mostly on track and are at various stages. along with equity shareholding of Air India in AIXL and AISATS. Share Purchase Agreement was signed among VII. DISINVESTMENT TARGETS & ACHIEVEMENTS M/s Talace Private Ltd, Air India and Ministry of Civil Aviation on 25.10.2021. The transaction has closed on The B.E for disinvestment proceeds for the year 2021- 27.01.2022. Government of India has received Rs. 2,700 22 was fixed at Rs.1,75,000 crore. So far, Government crore cash sale proceeds from the strategic sale of Air has received Rs. 12424 crore as on 4.3.2022 from India Ltd. Privatization of Air India is expected to improve Strategic Disinvestment of Air India and disinvestment of performance and productivity of the airline and help to CPSEs through Offer for Sale route and sale of shares rejuvenate the aviation sector of the country. through stock exchange. OFS was concluded in NMDC Ltd, HUDCO Ltd, HCL; sale of residual shares of IPCL CCEA empowered Alternative mechanism approved the (now RIL) concluded through stock exchange; and sale highest bid of M/s Tata Steel long products Limited for of SUUTI shares done in Axis Bank. Besides, strategic 93.71% shares of JV partners of 4 CPSEs and 2 Odisha disinvestment of Numaligarh Refinery Limited was Govt. State PSE at the Bid Enterprise Value of Rs.12,100 completed in March, 2021 and BPCL received Rs. 9876 crore. NINL is a joint venture of 4 CPSEs namely MMTC, crore from the transaction. Government has received NMDC, BHEL, MECoN and 2 Odisha Govt. PSUs namely Rs.6665 crore as dividend from BPCL, which includes OMC and IPICOL. special dividend on account of gains mainly from sale of BPCL's stake in Numaligarh Refinery Limited. a) Trends in Disinvestment Disinvestment receipts (2014-15 to 2020-21) Year RE (Rs. Crore) Receipts (Rs. Crore) No. of Transactions 2014-15 26353 24349 8 2015-16 25313 23997 9 2016-17 40000 46247 21 2017-18 100000 100057 36 2018-19 80000 84972 28 2019- 20 65000 50299 15 2020-21 32000 32845 18 Total 362765 135 Financial Year (2021-2022) (as on 4.3.2022) S. Name of % of GoI's Method of Receipts GoI's No CPSEs Shares Disinvestment (in Rs. Shareholding Disinvested Crore) Post Disinvestment 1 Others 0 OFS 3994.33 0 (SUTTI Axis Bank) 2 NMDC 7.49 OFS 3651.37 60.8 3 NMDC 0 EMP OFS 2.45 60.8 4 HUDCO 8 OFS 720.41 81.81 5 HUDCO 0 Employee OFS 0.0529 81.81 6 HCL 6.61 OFS 741.95 66.15 7 IPCL(now 0.42 sale of shares 219.34 0 RIL) through stock exchange 8 Air India 100 Strategic 2700.00 0 Disinvestment 9 MoTL Buyback … Total Receipts 12,423.67 250Department of Investment and Public Asset Management IV VIII. OTHER INITIATIVES In February 2019, Govt. had approved a framework for (i) Launch of Bharat Bond ETF non-core asset monetization with DIPAM as the nodal Department. The framework consists a multi-layer Bharat Bond ETF was launched in December 2019 which institutional mechanism for overall implementation of was the first instrument of its kind based on high-quality programme for monetization of non-core assets. The public-sector bonds. The second tranch was launched in framework provides for monetisation through a wide July 2020. The two tranches received huge response from all sections of investors especially retail investors. The range of models ranging from direct contractual first issuance is for 3- and 10-years tenures which was agreement to structured finance models. The scope of oversubscribed against the base size of Rs 7000 crore this framework covers identified non-core assets of by 1.7 times. A total of 54,21 7 retail investors participated CPSEs under strategic divestment. Other CPSEs/PSUs/ in the NFO. Bharat Bond ETF NFO II Tranche was Sick or loss making CPSEs under closure, and other launched on 14-17 July, 2020 which was also a Government organizations can adopt this framework for resounding success with 39,272 applications amounting their asset monetization with the approval of competent to Rs. 10,992 crore, and oversubscribed by more than authority. 3.7 times against the base issue size of Rs. 3,000 crore Asset Monetization of a number of CPSEs viz. BEML, in both 5- and 11-years category. BPCL, B&R under Strategic Disinvestment, HMT, Bharat Bond ETF NFO III Tranche (BBETF 2032) of 10+ Instrumentation India under closure, MTNL & BSNL under years tenure with maturity date of 15th April, 2032 was loss making is being carried out currently by DIPAM and launched from 3rd to 9th December, 2021. The base size the transactions are at various stages. of the issue is Rs. 1,000 with green shoe option of Rs. 4,000 crore. The issue overscribscribed more than 6.2 Creation of National Land Monetization Corporation times agains the base issue size of Rs. 1000 crore. in the form of a Special purpose vehicle. The Bharat Bond ETF invests in constituents of the NIFTY Monetization of land and property requires a unique set BHARAT Bond Indices, consisting of AAA rated public of skill and expertise in real estate market assessment, sector companies. The ETF program aims to achieve its property appraisals, valuation, transaction design, ultimate objective of creating a liquid yield curve for CPSE property development, site servicing, property bonds and helps development of bond markets. The ETF management, etc. A dedicated, land monetisation agency program has provided a safe and secure investment is also required to own, hold and monetize land and other avenue for investors, especially retail investors who now non-core assets released following the closure of CPSEs are now able to access bonds with smaller amount (as under the new PSE policy. low as Rs. 1,000), while helping CPSEs mobilize debt at In the Budget 2021-22 , Government announced setting reduced cost. Regular issues of Bharat Bond ETF would up of a Special Purpose Vehicle (SPV), with capacity and provide good opportunity for deepening the bond market. expertise, to carry out the monetization of the land and (ii) Asset Monetization other non-core assets in an efficient and prudent manner, in line with international best practices. Accordingly, an At present, there are many operating Central Public SPV is being incorporated as a CPSE which is owned Sector Enterprises (CPSEs) which hold considerable 100 percent by Government of India and named "National quantum of land, buildings and other non-core assets Land Monetisation Corporation" (NLMC). NLMC will across the country, including assets in major cities. Some support monetization of non-core assets of CPSEs under of these non-core assets are unutilized or sparsely utilized disinvestment or under closure as well as other and there is a significant potential of identification as non- government agencies. core/ surplus asset for monetization. Asset monetization IX. CAPITAL MANAGEMENT OF CPSES program of the Government aims at unlocking the value Since 2015-16, Government has made a paradigm shift of such public assets. Both core and non-core assets in the capital management of CPSEs as part of a have considerable potential for generating financial conscious strategy to manage government investment resources for delivering economic and social program. in CPSEs, and to enable companies to address critical, Monetization of core assets are steered by NITI Aayog inter-linked issues such as leveraging of assets for fresh investment, capital restructuring, and financial while the initiative for monetization of non-core assets restructuring. Comprehensive guidelines have been laid has been hitherto steered by Department of Investment out by DIPAM for capital restructuring of CPSEs through and Public Asset Management (DIPAM). a consistent dividend policy, ensuring buyback of shares, 251Annual Report 2021-2022 issue of bonus shares and splitting of shares. This has  Maintenance of the Payroll Package encouraged companies to leverage net-worth for higher  Implementation of e-Office investment and use funds judiciously and in a focused  Following web based monitoring systems are in place: manner. Consistent Dividend Policy  Lok Sabha and Rajya Sabha Question, Answer Monitoring System. DIPAM has issued guidelines regarding a consistent dividend policy for CPSEs for ensuring predictability in  Centralized Public Grievance Redress and dividend payment by companies. A predictable dividend Monitoring System (CPGRAMS) regime would enable CPSEs to avoid end-loading of  Online Monitoring System for Parliament dividend payments by freeing up resources payable Assurances during last quarter. It will also help revive investor interest and improve market sentiments for CPSE stocks, as  Centralized Tender/Procurement Monitoring System: predictability in regular dividend payment would attract Tenders are regularly put on the website and e- quality investors to CPSE stocks and retain them in the Publishing in e-procurement portal is being done hope of a future dividend. As a result of this initiative, regularly. CPSE stocks have gained traction among the investors,  Representations of Reserved Categories in Posts and as reflected in the BSE CPSE index, which have risen Services in Government of India (RRCPS) Monitoring 39.43% since January 2021 to date, in comparison to System (SC/ST Commission Portal). benchmark index, which rose by 20.76%.  APAR Monitoring system for IAS Officers (JS level & Total dividend receipts from CPSEs in FY 2020-21 stood above), CSS/ CSSS Officers (All levels). at Rs 39,607 crore, which exceeds the Revised Estimate (RE) of Rs 34,717 crore, and is more than actual dividend  Cadre Management System (for CSS Officers). receipts (Rs 35,543 crore) during the previous financial  Pension Portal year. Total dividend receipts this FY (as on 4.3.2022) stands at Rs. 44,414 crore.  Use of GeM portal X INITIATIVES UNDERTAKEN FOR  Quarterly Rolling Plan PERSONS WITH DISABILITIES,  Data Portal (Data.gov.in). SCHEDULED CASTES, SCHEDULED XIV REDRESSAL OF PUBLIC GRIEVANCES TRIBES AND OTHER BACKWARD The Department is using the Centralized Public Grievance CLASSES: Redress and Monitoring System (CPGRAMS). The website of the Department also has an in built mechanism The staff strength in the Department along with for receiving grievances from public. A Joint Secretary representation of Scheduled Castes, Scheduled Tribes, Persons with disabilities and Other Backward Classes is has been designated as Nodal Grievance Officer and given at Appendix.II Additional Secretary has been nominated as Nodal Appellate Authority for the purpose. XI INITIATIVES RELATING TO GENDER BUDGETING AND EMPOWERMENT OF Internal Complaints Committee on Sexual harassment WOMEN of women employees The nature of allocated work of the Department does not In compliance with Supreme Court's Judgement dated have any scope for gender budgeting and empowerment 13th August, 1997 in Visakha case relating to prevention of women. of sexual harassment of women at work place, an internal XII OFFICIAL LANGUAGE POLICY complaints committee has been put in place for The Department has a full-fledged Official Language Unit considering complaints of sexual harassment of women to implement the Official Language Policy. The website employees in Department of Investment and Public Asset of the Department is bilingual. Management (DIPAM). XIII E-GOVERNANCE XV VIGILANCE MACHINERY As a part of good governance through the use of A Joint Secretary has been designated as part-time Chief information technology, the following initiatives have been Vigilance Officer in the Department. taken: XVI. RIGHT TO INFORMATION ACT, 2005.  Website of the Department (www.dipam.gov.in) is updated on a regular basis, in both English and Hindi. In order to facilitate dissemination of information under The website is compliant with the Guidelines for Indian the provisions of the Right to Information Act, 2005, the Government Websites (GIGW). following initiatives have been taken by the Department: 252Department of Investment and Public Asset Management IV (i) An RTI Cell has been set up to collect, transfer the not involved in the delivery of any public services and applications under RTI Act, 2005 to the Central Public thus, does not have any direct interface with the citizens Information Officers/ Public Authorities concerned and or public at large. However, the Department has initiated to submit the quarterly returns regarding receipt and disposal of the RTI applications/ appeals, to the Central the following measures as a part of good governance: Information Commission. Timelines have been prescribed for disposal of (ii) Details of functions of the Department along with its transaction related bills to avoid delay and any scope of functionaries etc. have been placed on Department's corruption as also to promote good governance. website (www.dipam.gov.in) in compliance with Section 4(1)(b) of the RTI Act and is updated from time to time. XVIII AUDIT PARAS/OBJECTIONS (iii) One Under Secretary has been designated as the Nodal Central Public Information Officer and 3 Deputy No CAG or PAC paras/Objections are pending in Directors and 9 other Under Secretaries as Central Public the Department. Information Officers under Section 5(1) of the Act, in XIX INTEGRATED FINANCE UNIT respect of subjects handled by them. (iv) One Joint Secretary, 5 Directors and 5 Deputy The Integrated Finance Unit works under Additional Secretaries have been designated as First Appellate Secretary & Financial Adviser (Finance) and deals with Authorities in terms of Section 19(1) of the Act for all expenditure and Budget related proposals of Grant No. matters relating to their Divisions. 32 - Department of Investment & Public Asset XVII INITIATIVES FOR GOOD GOVERNANCE Management - which includes Secretariat General As per the mandate provided by the Government of India Services covering the establishment budget for the (Allocation of Business) Rules, 1961, the Department is Department of Investment & Public Asset Management. The budget allocation under Grant No. 32 is as under: - (Rs. in crores ) Grant No. Budget Estimates 2021-22 Revised Estimates 2021-22 B.E. 2022-23 Plan Non-Plan Total Plan Non-Plan Total Plan Non-Plan Total 32 - Department of Investment & Public ---- 110.52 110.52 ---- 96.88 96.88 ---- 290.42 290.42 Asset Management The Integrated Finance Unit monitors all financial and consistently monitored by the IF Unit. All budget related expenditure related proposals of the Department like matters including issues concerning Standing Committee appointment of consultants, foreign deputation/visits of on Finance come within the purview of this unit. officers etc. The expenditure trend of the Department is 253Annual Report 2021-2022 Annexure-I List of CPSEs, including subsidiaries and Units of CPSEs for which Government has given 'in-principle' approval for strategic disinvestment since 2016. a) Ongoing Transactions being processed by DIPAM S.No. Name of CPSE./Organization c) Transactions held up due to litigation 1. Project & Development India Limited 21. Hindustan Newsprint Limited (subsidiary) 2. Engineering Project (India) Limited 22. Karnataka Antibiotics & Pharmaceuticals 3. Bridge and Roof Co. India Limited Limited 4. Central Electronics Limited# 5. BEML Limited d) Transactions halted as the CPSEs 6. Ferro Scrap Nigam Limited (subsidiary) recommended / approved for closure; or any 7. Nagarnar Steel Plant of NMDC Limited other reason 8. Alloy Steel Plant, Durgapur^; Salem Steel 23. Hindustan Fluorocarbons Limited (subsidiary)* Plant; Bhadrawati Steel Plant - units of Steel 24. Scooters India Limited* Authority of India Limited 25. Bharat Pumps & Compressors Limited* 9. Pawan Hans Limited 26. Hindustan Prefab Limited 10. HLL Lifecare Limited 27. Units of Cement Corporation of India Limited# 11. Indian Medicines Pharmaceuticals Corporation Limited * Government approved for closure of the Company. 12. (a) Bharat Petroleum Corporation Ltd (except # Transaction not feasible and the mines are being Numaligarh Refinery Limited) returned to the State Governments. (b) BPCL stake in Numaligarh Refinery Limited to a CPSE strategic buyer $ 13. The Shipping Corporation of India Limited e) Transactions Completed 14. Container Corporation of India Limited 15. Neelachal Ispat Nigam Limited # S.No. Name of CPSE 16. Rashtriya Ispat Nigam Ltd. 17. IDBI Bank 28. Hindustan Petroleum Corporation Limited ^ Transaction halted for the time being. 29. Rural Electrification Corporation Limited # Strategic buyer selected. 30. HSCC(India) Limited $ Transaction completed. 31. National Projects construction corporation Limited b) Ongoing Transactions being processed by 32. Dredging Corporation of India Limited respective Administrative Ministries 33. THDC India Limited 18. Various Units of India Tourism Development 34. North Eastern Electric Power Corporation Corporation Limited Limited 19. Hindustan Antibiotics Limited 35. Kamrajar Port Limited 20. Bengal Chemicals & Pharmaceuticals Limited 36. Air India and five of its subsidiaries @ 254Department of Investment and Public Asset Management IV 255 trahC noitasinagrO )JS(noC riD riD )KS(SDAnnual Report 2021-2022 256 II-xidneppA tnemeganaM tessA cilbuP & tnemtsevnI fo tnemtrapeD fo tcepser ni sCBO ,sTS ,sCS fo noitatneserpeR MAPID ni seitilibasid htiw snosrep eht fo noitatneserpeRChapter - V Department of Financial Services V Department of Financial Services 1. Work Allocation among Sections VIPs /PMO against Private Sector & Foreign Banks. Banking Customer Service. Banking Ombudsman. 1.1 Banking Operation-I (BO-I) Coordination of PRAGATI meetings. Appointment of Governor/Deputy Governor of 1.4 Banking Operation & Accounts-I (BOA-I) RBI, Chairman & MDs of SBI, CMDs and EDs of Nationalised Banks, salary allowances and other terms Preparation of annual consolidated review on the and conditions of Whole Time Directors of PSBs. working of Public Sector Banks (PSBs) and laying it on Constitution of Boards of Directors of RBI and PSBs: the Tables of both Houses of Parliament. Pattern of appointment of Workmen Employee Directors, accounting and final accounts in Public Sector appointment of Part Time Non Official Directors and Banks.Study and analysis of the working results of PSU Officer Employee Directors of PSBs. Nomination of Banks.Taxation matters of PSBs/FIs.Dividend payable to Directors on the Board of PSBs. Central Government by PSBs.Scrutiny of the annual financial reviews of PSBs conducted by RBI under Section 1.2 Banking Operation-II (BO-II) 35 of the Banking Regulation Act, 1949 and follow up action.Capital restructuring of PSBs (including Administration of all Acts/Regulations/Rules restructuring of weak PSBs) and Government's related to Financial Systems like the Negotiable contribution to share capital, public issue of banks.Release Instruments Act, 1881, the Chit Funds Act, 1982, Price of externally aided grants to ICICI Bank under Chits and Money Circulation Schemes (Banning) Act, USAID.Disputes and arbitration between PSBs and 1978, Banning of Unregulated Deposit Scheme Act, 2019, between PSBs and other Govt. Departments/ Deposit Insurance and Credit Guarantee Corporation PSEs.Appointment of advocates in PSBs. Residuary (DICGC), Act, 1961, Payment and Settlement System Act, matters of Portuguese Banks in Goa.Opening and shifting 2007 and Factoring Regulation Act, 2011.State of administrative offices of banks. All Policy matters Legislations - Protection of Interest of Depositors Acts of related to Banking Operation such as Licensing, State Governments. amalgamation, reconstruction, moratorium funds, and Matters relating to Multi-Level Marketing and acquisition of private sector banks. Functioning of PSBs. Ponzi Schemes. Setting up of IFSC - GIFT. International Notification regarding exemption from various sections Relations (Banking) / Bilateral issues. International of the Banking Regulation Act, 1949 and appointment of Cooperation in WTO, RCEP, JCCII and CEPAs/CECAs/ appellate authority to hear appeals under BR Act and FTAs of India with bilateral and multilateral partners. Banking Companies (Acquisition and Transfer of Matters relating to Financial Sector Development Council Undertakings) Act of 1970 and 1980. Administration of all and its Sub-committees. Matters relating to Central Acts/ Regulations/ Rules related to Public Sector Banks, Economic Intelligence Bureau (CEIB). Matters relating RBI and State Level Banks. Laying of annual reports and to office of Court Liquidator, Kolkata. Work relating to audit reports etc., of PSBs in Parliament. Government Agency Business. Financial Action Task 1.5 Banking Operation & Accounts-II (BOA-II) Force (FATF). Setting up of Currency Chest by banks in border districts (within 80 KMs of International Border). Credit Information Companies (CICs). Works Rationalization of Bank Holidays / declaration of bank relating to monitoring of NPAs and Recovery including holidays under section 25 of the Negotiable Instruments compromises and OTS of all PSBs. Parliament matters, Act, 1881. Know Your Customer (KYC) all matters - AML VIP/PMO references, complaints and other matters and CFT matters. relating to above works. All matters related to NPA/ Stressed Assets (other than Sectoral Stress), including 1.3 Banking Operation-III (BO-III) relief measures by banks in area affected by natural calamities. Stressed Assets Stabilization Fund (SASF). Customer Service in Banks/FI/Ins. All kinds of Audit of banks, appointment and fixation of remuneration complaints/representations received from individual/ of auditors of PSBs/FIs. Bank guarantees, Letters of Credit associations for redressal of their grievances in these and Letters of Undertaking / Comfort by PSBs and related institutions such as delay in clearance of cheques, non- complaints. Citizen's Charter of PSBs/RBI. Acquisition/ payment/non-issue of drafts, non-issue/delay in issue of Leasing/Renting/Vacation of premises, Estate Officers duplicate drafts, misbehaviour/rude behaviour/harassment under Public Premises Act, 1971. Operation of foreign on the part of staff of the Institution, non-settlement/delay banks in India (including IDC and FDI Policy matters). in settlement of deceased accounts, non-transfer/delay Banking Sector Reforms (including EASE Index and PSB in transfer of accounts from one office to another, non- Reforms Agenda). NBFCs and Appellate Authority on opening/delay in opening of new accounts, non- NBFCs. Operational risk management (other than cyber- compliance with standing instructions of the customers, security and digital payments security), including frauds non-payment of term deposits before maturity, delay in and fugitive offenders. Administration of all Acts/ payment to pensioners, including those related to credit Regulations/Rules related to NBFCs and CICs. Statement cards, ATMs, etc. All kind of complaints received from of Intent / Key Performance Indicators / Performance DARPG/DPG relating to Public/ Private Sector/Foreign evaluation of whole-time Directors. Insolvency Bankruptcy Banks/FI/Ins. All kinds of complaints received from MPs/ Code (IBC). Overseas branches of Indian banks. 257Annual Report 2021-2022 1.6 Agriculture Credit (AC) 1.9 Industrial Relations (IR) Credit flow to Agriculture and allied sectors. Service matters of PSBs including IDBI/ RBI, Agricultural Debt Waiver and Debt Relief Credit flow to Pension matters of NABARD. Industrial Disputes Act Agriculture and allied sectors. Agricultural Debt Waiver matters, HR matters relating to PSBs and RBI Unions and Debt Relief Scheme, 2008. Matters relating to and Associations in the Banking Industry, Bipartite NABARD (except pension matters), Agriculture Finance settlements of policy of transfer, promotion, and HRD in Corporation (except Service matters), State Legislations banks. IB reports about political activities of bank on the subject, Co-operative Banks (including Urban Co- employees. Pay and Allowances of bank employees in operative Banks), external aided projects relating to rural/ overseas branches. HR Reforms. agriculture credit, appeals made by co-operative banks, 1.10 Coordination (Coord.) financial assistance to persons affected by natural calamities, riots disturbances, etc. Bank credit to KVIC, Organisation of FM's meetings with CEOs of handloom and handicraft sector. Citizen Charter of PSBs and regional consultative committee meetings. Staff NABARD. Appointment of CMDs & Directors of NABARD. Meeting of Secretary (FS)/ Senior Officers Meeting (SOM). Kisan Credit Card (KCC) Scheme. Secretarial assistance Monitoring & Review of disposal of VIP references, PMO to the designated appellate authority in regard to appeal references, coordination of RBI pending matters. by Urban Cooperative banks against cancellation of Parliament Questions regarding VIP references. Monthly DO letter to Cabinet Secretary from Secretary (FS). license by RBI. Appointment of CPIOs, ACPIOs, AA and Nodal Section 1.7 Regional Rural Banks (RRB) for RTI matters of DFS and to deal with CIC for Annual Report etc. Updation of Induction Material for DFS; Co- Legislative matters with regard to RRB Act, 1976 ordination of VIP, PMO, President-Sectt.,etc., references and framing of rules there under. Nomination of non-official involving more than two Divisions of DFS. directors on the Board of RRB, appointment of Chairman, Recommendation of RRBs, review of performance of 1.11 Establishment (Estt.) RRBs, wage revision, manpower planning. Laying of Matters pertaining to the Officers and Staff of DFS Annual Reports of all RRBs along with review thereof. including RRs, appointment, ACRs, deputation (including Formation of Staff Service Regulation and Promotion abroad), training, IWSU, SIU, welfare, review of officers Rules for employees and officers of RRBs, IR matters of under FR 56(J), internal vigilance, staff grievances, RRBs. Citizen's Charter of RRBs. Priority Sector Lending, pension, etc. Grant of various advances to officers and Micro Finance and other related matters which includes staff, payment of fees to advocates, settlement of medical lending to weaker sections including SC/ST, PM's New claims and CGHS matters, family welfare programme. 15 Point Programme for the Welfare of Minorities, Credit to minorities, follow up action of Select Parameters 1.12 General Administration (GA) recommended by Sachar Committee, DRI Scheme. Housekeeping/Security matters, cleanliness, 1.8 Financial Inclusion (FI) stores, canteen, R&I, library. Staff Car Drivers, vehicles to the officers of DFS. Purchase of Computer Hardware Work relating to financial inclusion, coordination and maintenance of Computers, Printers and other with other sections, offices, institutions etc on financial equipments. Maintenance of furniture and electricity items. inclusion. Branch expansion of banks. Lead Bank Scheme Logistic support for arranging farewell of staff of DFS. and Service Area Approach. District and State Level Providing of Identity Cards to the Staff of DFS and CMDs/ Bankers' Committee (SLBC). Regional imbalances of EDs/PROs of Public Sector Banks/Financial Institutions/ banking network, matters related to Business Insurance companies, etc. Correspondents/Business Facilitators, Mobile Banking 1.13 Parliament etc., matters relating to e-Governance in all FIs and e- Payments in banking system and computerisation of Collection, identification and marking of PSBs. Matters relating to Payment Regulatory Board Parliament Questions, Notices, admitted Questions, and (PRB) constitution and matters related to PRB. Matters getting the files approved from the Minister. Preparation relating to Minimum deposit balance, cash handling & of facts and replies for pads of Ministers. Keeping track digital payment charges; On-boarding of merchants on and record of pending Assurances, Special Mentions and digital payment platforms other than cards. Banking References under 377 and other matters as mentioned matters relating to digital payment platforms. All matters in the Induction Material. Presidential address to the Joint related to Pradhan Mantri Jan Dhan Yojana (PMJDY), Session of Parliament. Compilation and submission of Pradhan Mantri Mudra Yojana (PMMY), Stand Up India material for Parliament Questions to other Ministries/ (SUI) and Mission Office. Departments. Parliamentary Committee Matters, etc. 258Department of Financial Services V 1.14 Hindi Projects (SIFTI) of IIFCL, Operational/Policy/Budgetary matters relating to Exim Bank, IIFCL, IWRFC and IIBI Implementation of Official Language Policy of the Ltd. Matters related to IFCI Ltd, IDFC Ltd, winding up Government. Translation work relating to Parliament matter related of IIBI Ltd, and other related matters. Board Questions. Standing Committees, Minutes of the level appointments-Whole Time Directors- IIFCL, EXIM, Meetings. Hindi Teaching Scheme and other miscellaneous work as mentioned in induction material IFCI Ltd and their personnel matters. Government of DFS. Nominee Directors-EXIM Bank, IIFCL, IFCI Ltd. and IDFC Ltd. Non-Official Directors/Independent Director in -EXIM 1.15 Welfare Section (SCT) Bank, IIFCL and IFCI Ltd. Sector-specific matters like Matters relating to recruitment, promotion and infrastructure, power, textiles, exports; steel, telecom, welfare measures of SC/ST/OBC/PH and Ex-servicemen road, shipping (added) etc. matters related to sectoral in Public Sector Banks/Financial Institutions and Public issues. Laying of annual reports of IIFCL, EXIM Bank, Sector Insurance Companies (PSBs/FIs/PSICs). Matter IFCI Ltd and Liquidator's report of IIBI Ltd. Before the of policy regarding reservation for these categories in parliament. Matters related to Ratnagiri Gas and Power PSBs/FIs/PSICs, reservation matters in RRBs etc. Pvt. Ltd (RGPPL). Citizen's Charter of EXIM Bank and Inspection/examination of Reservation Roster for SCs/ IIFCL. All matters related to resolution and registration STs/OBCs in PSBs/FIs/PSICs. issues of Asset Reconstruction Company (ARC) and to 1.16 Reservation Cell track the activities of the ARCs. All matters related National Investment and Infrastructure Fund. Appointment of Assistance to the Liaison Officer for smooth Statutory Auditor in EXIM Bank. Media and Publicity related functioning and discharging of his duties and matters of DFS. Project Monitoring Group (PMG) Meeting. responsibilities as Liaison Officer for SC/ST/OBC/EWS/ Partial Credit Guarantee Scheme (PCGS). PwD, preparation / maintenance of reservation roster of SC/ST/OBC/EWS/PwD for the proper secretariat of this 1.19 Industrial Finance-II (IF-II) Department, reply to Parliament Questions/National Commission for SC/ST/OBC/PwD in respect of SC/ST/ Administration of National Housing Bank Act, OBC/EWS/PwD staff of the Department, maintenance of 1987.Administration of Small Industries Development data of SC/ST/OBC/EWS/PwD staff of the Department, Bank of India Act. Administration of National Housing Bank submission of all reports/ information to other Ministries/ Act Administration of State Financial Corporation Act. Departments/Parliamentary Committees, etc. in the Operational, Policy and Budgetary matter relating to SIDBI related matters. and NHB. Matters relating to NHB and Housing Policy. Post winding up of BIFR & AAIFR matters. Matters related 1.17 Data Analysis (DA) to Micro, Small and Medium Enterprises (MSMEs), Reserve Bank of India Credit Policy - Busy TReDS. SIDBI, SFCs, Credit Guarantee Fund for Micro Season - Slack Season and selective credit control. and Small Enterprises, CGFMU, CGFSI, CGTMSE, Financial sector assessment and sectoral credit analysis. CGFF, MLIs, Credit Guarantee Scheme and other related Banking Statistics regarding bank deposits and advances. matters on the subject. Citizens Charter of NHB and Deposits and advances of banks. Rates of interest on SIDBI. Appointment and all personnel matters of Whole bank deposits and advances. Dissemination of results and Time Director in SIDBI and NHB. Appointment of Non- important information relating to RBI, IBA, studies on Official/Independent Directors and Government Nominee banking reforms. Analysis of other international reports Directors in SIDBI and NHB. Laying of annual reports of relevant to banking sector in India. Analysis of Reports of SIDBI and NHB before the Parliament. All matters related committees on Financial Sector Reforms etc. to Pradhan Mantri Mudra Yojana (PMMY). All matters Management Information System - collection, collation of data relating to Banking Industry. Result Framework related to Educational Loans including Vidyalakshmi Document (RFD), Speeches of FM/MOS on different Portal, Govt. Sponsored Schemes-PMEGP, Education, occasions. Audit Paras. UN e-Government Index & Digital employment generation scheme of SJSRY, SGSY and Services. Work related to committee of Financial Sector other poverty alleviation programmes and other related Statistics. Coordination of budget proposals of DFS. matters, VIP references, Audit Paras, CPGRAM, RTI, Matters related to Budget Announcements, Output- Parliament Questions, Assurances, Grievances, Budget outcome Monitoring Framework. Sustainable Announcements, Coordination with RBI and State Govts. Development Goals - Indicators pertaining to DFS. Micro Finance - Matters related to Micro Finance 1.18 Industrial Finance-I(IF-I) Institutions and Legislation thereon, Self Help Groups as Administration of the Export-Import Bank Act- well as NABARD's Micro Finance, etc. Matter related to 1981 and Scheme for financing Viable Infrastructure psbloansin59minutes portal. 259Annual Report 2021-2022 1.20 Vigilance Insurance Regulatory and Development Authority of India, Council of the Institute of Actuaries of India, Insurance Consultation with CVC/CTE. Nomination of CVOs Ombudsmen, Council of Insurance Ombudsmen, and for PSBs/FIs/PSICs. Correspondence with CBI. Annual insurance appointment related matters pertaining to Banks Action Plan on Anti-Corruption measures. Investigation Board Bureau. Administration of the Actuaries Act, 2006 of cases of frauds by CBI & RBI. Matters under Prevention and related matters. Matters of public entities relating to of Corruption Act. Preventive vigilance. Vigilance systems the Public Premises (Eviction of Unauthorized Occupants) and procedures in RBI/PSBs/FIs and Insurance Act, 1971. Parliamentary, audit, right to information, court, Companies/PFRDA/IRADI and RBI. Inquiry into arbitration and VIP reference related matters and dealing complaints against GMs/EDs and CMDs of PSBs/FIs/ with matters referred through receipts or otherwise in PSICs/PFRDA/IRADI/RBI and Vigilance Surveillance over respect of any of the items enumerated above or them. Major frauds in PSBs (in India and abroad). PMO connected thereto. references on anti-corruption measures. Bank security, robberies & loss prevention in banks. Sanction of 1.23 Insurance-II (Ins.-II) prosecution in case of ED/CMDs. War Book Matters. Administration of the Insurance Act, 1938; Life Annual Reports of CVC. Conduct Regulation in PSBs/ FIs, employment after retirement regulations in PSBs. Insurance Corporation Act, 1956; General Insurance CVC/CBI references relating to DRTs/DRATs. Vigilance Business (Nationalisation) Act, 1972; Insurance clearance, sanction of prosecution and any other matter Regulatory and Development Authority Act, 1999 and of Board level appointees of PSBs, FIs, PSICs, PFRDA, related matters, other than those related to corporate IRDA and RBI. Vigilance matters of Officials in DFS, governance, appointment and service matters. Policy Officers of Office of Custodian and Government Officials matters relating to insurance, and to this end, analysis of in DRTs/DRATs. the trends and development in and the performance of the insurance sector and various bodies established by Office of the Custodian and Special Court or under the said Acts. Administrative matters pertaining to public sector insures and Agriculture Insurance Joint Parliamentary Committee (JPC) (which Corporation of India Limited (AICIL), other than enquired into irregularities in securities transactions). governance, appointment and service matters. Disciplinary action against bank employees/executives Assessment of capital requirements, divided payouts and involved in irregularities in securities transactions. Establishment matters relating to Special Courts/Office performance of public sector insurance and AICIL. Social of the Custodian. All issues pertaining to continuation of security schemes for insurance protection and other posts, budget matters of the O/o Custodian and Special insurance schemes sponsored/ supported by the Court including extension of the O/o Custodian and Government. Insurance Ombudsmen Rules and appointment of Custodian. administration thereof, other than corporate governance, appointment and service related matters pertaining to 1.21 Debts Recovery Tribunals (DRT) Insurance Ombudsmen and the Council of Insurance Ombudsmen. Foreign investment in insurance sector. Establishment of DRTs/DRATs under the Reforms in the sector and public sector insurers, including Recovery of Debts due to Banks and Financial Institutions adoption of technology in insurance (except matters Act, 1993. Administration of Recovery of Debts and allocated to the Cybersecurity and FinTech Section). Bankruptcy (RDB) Act, framing or amending rules for Supporting the section in charge of international implementing of the provisions of the Act. Filling up of the cooperation matters on insurance related aspects of posts of Chairpersons, Presiding Officers, Registrars, Assistant Registrars, Recovery officers, and other posts international cooperation. Taxation matters relating to in DRTs/DRATs. Issuing clarifications/guidelines etc. on insurance sector. Matters relating to the industry, including administrative matters/review. Progress and disposal of those raised by industry bodies/associations. cases by DRT/DRATs. Budget provisions, monitoring, etc Implementation of Law Commission Reports. All residual relating to DRTs/DRATs. Administration of SARFAESI Act, matters relating to insurance which are not enumerated appointment of Registrar/MD & CEO, CERSAI, ease of specifically as an item of work allocated to either doing business agenda- flowing from recent amendments. Insurance-I Section or Insurance-II Section. Parliamentary, CKYC matters under Prevention of Money Laundering audit, right to information, court, arbitration, VIP reference Act, 2002. Policy matters relating to Central Registry of related matters and dealing with matters referred through Securitisation Asset Reconstruction and Security Interest receipts or otherwise in respect of any of the items (CERSAI), a PSU, including the Central Registry under enumerated above or connected thereto. the SARFAESI Act, 2002. 1.24 Pension Reforms (PR) 1.22 Insurance-I (Ins.-I) Reforms in the Pension Sector. Policy matters Corporate governance, appointment and service with respect to NPS, Atal Pension Yojana and Swavalmban matters pertaining to public sector insurers and AICIL, Scheme. Administration of PFRDA Act, 2013. Framing of 260Department of Financial Services V rules under PFRDA Act, 2013. Appointments of  Gross NPAs have declined from 11.2% in Mar- Chairperson and Board member of PFRDA, CVO in 2018 to 6.9% in Sep-2021 PFRDA, Budget and Funds of PFRDA and Legislative and  Net NPAs have declined from 5.9% in Mar-2018 policy prescriptions to PFRDA. to 2.21% in Sep-2021 1.25 Cybersecurity and FinTech (IT)  Provisioning Covering ratio (PCR) has risen from Matters relating to overall cybersecurity for the 62.96% in Mar-2018 to 84.92% in Sep-2021 financial services sector and in the Department. (c) Capital adequacy: CRAR of SCBs improved by Coordination of FinTech and Deep Tech (artificial 152 bps y-o-y to reach 16.3% in March, 2021, intelligence, big data, block chain, etc.) matters related to and all time high of 16.4% in Jun-21 with CRAR the financial services sector and the Department (other of PSBs at 14.4%, as on 31.12.2021 was enabled than matters related to e-payments in the banking system). by their raising of capital (in the form of both equity Management of the Department's website and web and bonds) in FY 2020-21, amounting to services. Coordination with NIC for the Department. Rs.58,697 crores (the highest amount mobilised Parliamentary, audit, right to information, court, arbitration in a financial year) and capital infusion of and VIP reference related matters and dealing with matters Rs.20,000 crore to 5 PSBs. In FY 2021-22, PSBs referred through receipts or otherwise in respect of any of have raised Rs.46,012 crores till January, 2022. the items enumerated above or connected thereto. PSBs have adequate capital for growth. 1.26 GST Cell (d) Credit growth: Despite contraction in GDP, SCBs Overseas preparedness of all institutions under posted credit growth of 5.6% during FY 2020-21 DFS to implement GST, to provide inputs to the " Banking, with robust credit growth in agriculture and allied Financial and Insurance" Sectoral Group with reference activities (12.3%), personal loans (10.2%) and to GST. Other matters related to coordination, rollout and overall credit flow to industry was broadly flat. implementation of GST w.r.t institutions under With large borrowers deleveraging, deposits administrative control of DFS etc. outpacing credit growth and plentiful liquidity from RBI's unconventional monetary measures like 1.27 Surplus Cell TLTRO, open market operation (OMO) etc., All service matters and day to day administrative banks are now well placed to cater to the credit matters related to surplus staff of AAIFR & BIFR including demands of the economy. their redeployment. Consultation with DoPT, handling of 2.1 Credit outreach court cases of surplus staff. RTI and personal matters of surplus staff such as leave, retrial benefits, perks & Government has launched nationwide Credit allowances etc. Outreach Programme on 16.10.2021, under which banks have been holding special camps across the country to Performance and Significant Developments make loans available to eligible borrowers. An aggregate 2. Overview banking sector loan amount of Rs.94,063 crores has been sanctioned up to 26.11.2021 under this. Impact of the pandemic on the financial sector has been far less than feared previously. Gross Non- 2.2 Non-Performing Asset (NPAs) Performing Asset (GNPA) and Capital to Risk Weighted The gross NPAs of scheduled commercial Asset Ratio (CRAR) of SCBs have been at 7.33% and banks have declined from a peak of Rs.10,36,187 16.3% respectively, in FY 2020-21, and 6.94% and 16.54% crores, as on 31.3.2018, to Rs.8,00,463 crores, as on respectively, for the quarter ended September, 2021. 30.9.2021, with the ratio of gross NPAs to gross advances declining from 11.18% to 6.93% during the same period. (a) Profitability: In FY2020-21, the banking sector, As per Reserve Bank of India (RBI) data, including PSBs, earned record profit. Net profit aggregate gross advances of Public Sector Banks (PSBs) of PSBs increased to Rs.31,820 crores, marking increased from Rs.18,19,074 crores as on 31.3.2008 to a return to overall profitability after 5 years. Net Rs.52,15,920 crores as on 31.3.2014. As per RBI inputs profit of PSBs in 3 quarters of FY 2021-22 aggressive lending practices, during this period along with increased to Rs.47,985 crores, more than 1.5 wilful default / loan frauds / corruption in some cases, times of net profit of FY 2020-21. economic slowdown etc; were observed to be primary reasons for the spurt in the stressed assets. Asset Quality (b) Asset quality: Despite wide-spread disruptions Review (AQR) initiated in 2015 for clean and fully caused by COVID-19 pandemic, asset quality of provisioned bank balance-sheets revealed high incidence SCBs has improved significantly with- of NPAs. As a result of AQR and subsequent transparent 261Annual Report 2021-2022 recognition by banks, stressed accounts were Registration by RBI on 4.10.2021 for commencement of reclassified as NPAs and expected losses on stressed business of securitisation of asset reconstruction loans, not provided for earlier under flexibility given to operations. restructured loans, were provided for. Primarily as a NARCL is intended to resolve stressed assets result of transparent recognition of stressed assets as above Rs.500 crores each, amounting to about Rs.2 lakh NPAs, as per RBI data on global operations, gross NPAs crores in phases. Government has approved extending a of PSBs rose from Rs.2,79,016 crores as on 31.3.2015, guarantee of up to Rs.30,600 crores to back Security to Rs.8,95,601 crores as on 31.3.2018 and as a result Receipts (SR) issued by NARCL for acquiring stressed loan of Government's strategy of recognition, resolution, assets. Pursuant to the above, guarantee approval between recapitalisation and reforms, have since declined to NARCL and Government of India is under finalization. The Rs.5,79,011crores as on 30.9.2021. guarantee will be valid for five years from the date of To improve resolution and recovery, the issuance of SRs or till the date of final settlement of loan Insolvency and Bankruptcy Code was enacted and accounts, whichever is earlier. number of recovery related reform measures effected, 2.5 Regional Rural Banks (RRBs) enabling recovery by PSBs of Rs.5,49,327crores over the last seven financial years. Under IBC, resolution The RRBs were established under the provisions plans have been approved in 421 cases till September of the Ordinance promulgated on 26th September, 1975 2021, with Rs.2.46 lakh crores realisable amount by and RRBs Act, 1976. The objective for the establishment financial creditors. of RRBs was to create an alternative channel to cooperative credit structure with a view to ensure sufficient institutional Reforms were effected for Enhanced Access credit for rural and agriculture sector. The RRBs, with focus and Service Excellence (EASE) under a PSB Reforms on serving the rural areas, are an integral segment of the Agenda, which aimed at improving customer Indian banking system. Sponsored by the Commercial responsiveness, deepening financial inclusion and Banks, the equity of RRBs are held by the Central digitalisation, serving MSMEs better, and enabling credit Government, concerned State Government and the off-take, besides improved governance, prudential Sponsor Bank in the proportion of 50:15:35. These banks lending, better risk management and technology-driven are envisaged to be State-sponsored, regionally based and checks and controls. rural-oriented. The purpose of establishment of the RRBs 2.3 Bank frauds is to develop the rural economy by providing credit and other facilities to the small and marginal farmers, agricultural Government, in 2015, issued "Framework for labourers, artisans and small entrepreneurs. As on 31 timely detection, reporting, investigation etc. relating to March 2021, 43 RRBs are operating through a network of large value bank frauds" to PSBs and instituting wide- 21,856 branches covering 696 districts of the country. All ranging structural and procedural reforms through the branches of RRBs are on CBS Platform. framework and other steps to check fraudulent banking practices. Systematic and comprehensive checking, 2.6.1 Role of RRBs including of legacy stock of NPAs of PSBs, for frauds RRBs have a mandate to ensure rural development under the framework has helped unearth frauds and foster financial inclusion. Over the years, the RRBs perpetrated over a number of years, with fraud have traversed a long journey. The contributions being made occurrence as percentage of gross advances, in PSBs, by RRBs as a whole at present, are briefly as under. having declined sharply from a peak of 1.12% in FY2013- 14 to 0.003% in FY 2021-22 (up to 30.9.2021).  Of the total loans extended by the RRBs, 70% goes to agriculture. About 90% of loans are extended to 2.4 Setting up of National Asset Reconstruction the priority sector. Of the total loans, about 64% is company Limited (NARCL) extended to weaker sections, including small and Hon'ble Finance Minister in her budget speech marginal farmers. for 2021-22 has made the announcement regarding  RRBs pay a significant role in extending micro credit. setting up of a new structure for stressed asset They account for 32% of the SHG accounts and resolution. In this regard, a new structure involving Asset 28% of the loan amount. 18% of total KCCs have Reconstruction Company (ARC) and Asset Management been issued by the RRBs. Company (AMC) was firmed up in consultation with Reserve Bank of India (RBI) and Indian Banks'  Share of RRBs in total accounts/enrolments under Association (IBA), and National Asset Reconstruction Government Sponsored Schemes like PMJDY, Company Limited (NARCL) was incorporated on PMJJBY, PMSBY, APY, etc. varies from 12% to 19%. 7.7.2021. NARCL has been set up under the Companies Act, 2013 with minimum 51% shareholding with the  92% of the branches of RRBs are in rural and semi public sector banks and it was granted Certificate of urban areas. RRBs though have 14% of total bank 262Department of Financial Services V branches in the country, their share in total number 3. Financial Inclusion of rural branches is about 29%. In the rural areas 3.1 Pradhan Mantri Jan Dhan Yojana (PMJDY) of aspirational districts, RRBs have about 40% of With a view to increase banking penetration, the rural branches. Moreover, many RRBs have promote financial inclusion and to provide at least one branches in remote areas and they are providing bank account per household across the country, a National financial services to vulnerable sections. Mission on Financial Inclusion (FI) known as Pradhan Mantri Jan Dhan Yojana (PMJDY) was announced on 15th  In rural areas, the share of business of RRBs is August, 2014. The scheme was formally launched on 28th about 20% in amount terms and they are providing August, 2014 at National level by the Hon'ble Prime core banking services (deposits and loans) to Minister. Comprehensive financial inclusion of the about 27% of the people availing banking services excluded sections was proposed to be achieved by 14th from formal sources. In North Eastern Region, August, 2018 in 2 phases as under. RRBs cater to the banking needs of about 42% of the rural people. As against the overall Rural CD  Phase I (15th August, 2014 - 14th August, 2015) Ratio of 62% for all the banks, RRBs have Rural Universal access to banking facilities in all areas, CD Ratio of 72%. except those with infrastructural and connectivity constraints and providing basic banking accounts 2.6.2 Amalgamation of RRBs and RuPay Debit card with inbuilt accident insurance cover of Rs. 1 lakh and organizing Financial Literacy With a view to enable RRBs to minimize their Programme. overhead expenses, optimize the use of technology, enhance the capital base and area of operation and  Phase II (15th August, 2015 - 14th August, 2018) increase their exposure, Government of India, in FY 2017- Overdraft (OD) facility upto Rs.5,000 after six months 18, has carried out amalgamation of RRBs located within of satisfactory operation/history. Creation of Credit a state. As on 31.03.2021, 24 RRBs have thus been Guarantee Fund for coverage of defaults in overdraft amalgamated into 11, reducing the total number of RRBs accounts and unorganised sector pension schemes to 43 from 56 earlier. like Swavlamban.  Extension of PMJDY 2.6.3 Key Financial Parameters of RRBs PMJDY has been extended beyond 14.8.2018 with (Amount in Rs. crores) the focus on opening of accounts shifting from "every household" to "every unbanked adult" and making Particulars 31st March 31st March the scheme more attractive with upward revision in 2020 2021 (i) OD limit from Rs.5,000 to Rs.10,000; (ii) accident Owned Funds 34,663 38,741 insurance cover on RuPay card holders from Rs.1 Deposits 4,78,737 5,25,226 lakh to Rs.2 lakh; (iii) age limit for availing OD facility Loans & Advances 2,98,214 3,15,181 revised from 18-60 years to 18-65 years and (iv) no Non-Performing conditions attached for OD upto Rs.2000. Assets (NPAs) 31,106 31,381 3.2 Performance of PMJDY. Major achievements of PMJDY are as under. (Numbers in crores) Breakup by Gender Breakup by Geography Deposits in PMJDY No of No of No of PMJDY PMJDY Accounts (in PMJDY PMJDY No of PMJDY As on Accounts Accounts (in crore) Accounts Accounts Accounts (Rural/Semi Rs. crores) (Male) (Female) (Urban/Metro) Urban) March'15 14.72 7.15 7.39 8.68 5.86 14,641 March'16 21.43 10.37 11.05 13.17 8.26 35,672 March'17 28.17 13.67 14.49 16.87 11.3 62,972 March'18 31.44 14.85 16.60 18.52 12.92 78,494 March'19 35.27 16.53 18.74 20.90 14.37 96,107 March'20 38.33 17.85 20.48 22.63 15.70 1,18,434 March’21 42.20 18.82 23.38 27.85 14.35 1,45,551 As on 44.23 19.62 24.61 29.54 14.69 1,50,939 29.12.2021 263Annual Report 2021-2022  A total of 44.23 crore Jan-Dhan accounts have been As on Off-site ATMs On-site ATMs Total ATMs opened till 29.12.2021 under PMJDY, with a deposit balance of Rs.1,50,939 crores. The average deposit 31.03.2018* 115471* 106776 222247* balance is approx. Rs.3412 per PMJDY account. 31.03.2019* 115323* 106380 221703*  There are 24.61 crore (55.6%) women Jan-Dhan 31.03.2020* 121086* 113271 234357* account holders, with about 29.54 crore (66.8%) accounts opened in rural and semi-urban areas. 31.03.2021* 140618* 97970 238588*  Approximately 31.28 crore RuPay cards with an 30.09.2021* 143599* 97383 240982* inbuilt accidental insurance of Rs.2 lakh (Rs.1 lakh Source: RBI * Includes ATMs deployed by White Label for accounts opened before 28.8.2018) coverage ATM Operators. have also been provided to PMJDY account holders. The number of card acceptance devices of Point  Out of total operative accounts opened under of Sale (POS) has increased from 10.7 lakh in March 2014 PMJDY, 86.2% have been seeded with Aadhaar to 54.98 lakh in December, 2021. number of the account holder on user consent basis, which has enabled interoperable and immediate 3.4 Jan DhanDarshak, a mobile application, has also Aadhaar based transactions, including for Direct been launched to provide a citizen centric platform for Benefit transfer (DBT) through Aadhaar Payment locating banking touch points such as bank branches, Bridge. ATMs, Bank Mitras, Post Offices, etc. in the country. The web version of this application could be accessed at the 3.3 Banking Touch Points: PMJDY aimed at link http://findmybank.gov.in. Banks have been provided providing banking touch points throughout rural India by login credentials to upload the GIS location of their mapping over 6 lakh villages into 1.6 lakh Sub Service branches, Business Correspondents and ATMs on the Areas (SSAs). Each SSA typically comprised of 1,000- app. As per JDD app, as on 28.01.2022, there are 1.68 1,500 households. Out of 1.6 lakh SSAs, 1.3 lakh SSAs lakh branches, 4.85 lakh BCs (including IPPB-BCs) and are covered through interoperable, online BCs and 2.15 lakhs ATMs mapped by the banks. Further, as per remaining 30,000 are covered through bank branches. data uploaded by the banks on JDD app, out of the 5.54 BCs deployed in rural areas also provide interoperable lakh (5,53,804) mapped villages on the app, 5.54 lakh Aadhaar Enabled Payment System (AePS) banking (5,53,468) (99.94%) villages are having branch or BC services. within a distance of 5 kilometers". The strength of bank branches and ATMs has 3.5 Jan-Dhan Aadhaar Mobile (JAM) been augmented over the years as indicated below: A Jan Dhan Aadhar Mobile (JAM) pipeline has Number of bank branches of Scheduled been laid for linking of Jan-Dhan account with mobile Commercial Banks number and Aadhaar. This infrastructure pipeline is providing the necessary backbone for and easing DBT As on Rural Semi Urban Metropolitan Total flows, adoption of social security/ pension Schemes, urban facilitating credit flows, promoting digital payments, etc. It 31.03.2017 49,871 38,991 25,067 26,486 140,415 has provided the much-needed support for accelerating the pace towards achieving a digitalised, financially 31.03.2018 50,852 39,676 25,421 26,478 142,427 included and insured society. The instant transfer of Direct 31.03.2019 51,590 41,087 26,361 27,098 146,136 Benefits under various Government Schemes has been made possible through the JAM pipeline. 31.03.2020 52,360 42,276 27,273 28,069 149,978 31.03.2021 52,639 42,522 27,382 27,981 150,524 4. Key Schemes 30.06.2021 52,769 42,240 27,209 27,838 150,056 4.1 Social Security Schemes Source: RBI 4.1.1 Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) - The scheme is available to people in the age Number of ATMs of Scheduled Commercial Banks group of 18 to 50 years having a bank / Post office account (SCBs), Small finance Banks (SFBs), Payment who give their consent to join / enable auto-debit. Risk Banks (PBs) and White Label ATM Operators coverage under this scheme is for Rs. 2 lakhs in case of death of the insured, due to any reason, at an annual As on Off-site ATMs On-site ATMs Total ATMs premium of Rs. 330/- which is to be auto-debited from the subscriber's bank / Post office account. 31.03.2016 97149 101950 199099 31.03.2017* 112666* 109809 222475* 264Department of Financial Services V 4.1.2 Pradhan Mantri Suraksha Bima Yojana The key features of APY are as under. (PMSBY) -The Scheme is available to people in the age  APY is primarily focused on workers in the group 18 to 70 years with a bank / Post office account unorganised sector, however, all citizens of the who give their consent to join / enable auto-debit. The country in the eligible category may join the scheme. risk coverage under the scheme is for Rs. 2 lakhs in case  Any Indian citizen between 18-40 years of age can of accidental death or total permanent disability and Rs. 1 join through their savings bank account or post office lakh for partial permanent disability; due to accident at a savings bank account. premium of Rs. 12 per annum which is to be deducted from the account holder's bank / Post office account  Minimum pension of Rs.1000 or Rs.2000 or through 'auto-debit'. Rs.3000 or Rs.4000 or Rs.5000 is guaranteed by the Government of India to the subscriber at the New measures in PMJJBY and PMSBY age of 60 years, with a minimum monthly contribution (for those joining at age 18) of Rs.42  A grace period of thirty days from the due date of or Rs.84 or Rs.126 or Rs.168 and Rs.210, renewal of PMJJBY and PMSBY, i.e.up to respectively. 30.6.2021, has been allowed to only those subscribers whose accounts did not have adequate  After the subscriber's demise, the spouse of the funds to pay for the premium as on 31.5.2021. subscriber shall be entitled to receive the same Intermediary commission has been increased from pension amount as that of the subscriber until the Rs.11 per subscriber to Rs.30 per subscriber under death of the spouse. PMJJBY, to incentivize intermediaries.  After the demise of both the subscriber and the spouse, the nominee of the subscriber shall be  In view of the pandemic, in addition to Death entitled to receive the pension wealth, as Certificate as proof of death or cause of death, accumulated till age 60 of the subscriber. several other documents have been made as valid proof up to 30.11.2021 or till further revision,  If the actual returns during the accumulation phase whichever is earlier. Banks have begun forwarding are higher than the assumed returns for minimum claim documents electronically to their partner guaranteed pension, such excess will be passed insurer's through designated app to enable on to the subscriber. expeditious claim settlement within 14 days.  The contributions can be made at monthly / quarterly / half yearly intervals through auto debit facility from  As on 15.12.2021, the progress under PMJJBY and savings bank account/ post office savings bank PMSBY are as under. account of the subscriber. The monthly / quarterly / half yearly contribution depends upon the intended Scheme Eligibility Premium Enrollments Claims Claims Settle- / desired monthly pension and the age of subscriber (Yrs) (p.a) (crores) Paid amount ment (crores) Ratio at entry. (Rs.) (%)  As on 30th November, 2021, the number of PMJJBY 18 to 50 Rs 330 11.77 5,28,182 10,563.64 99.74% subscribers under APY is more than 3.57 crore with contribution of Rs. 1,68,766 crore and AUM of PMSBY 18 to 70 Rs 12 26.59 93,281 1,817.19 97.67% Rs. 19,352 crore.  As on 30.11.2021, the category wise number of APY enrolments are as under. 4.1.3 Atal Pension Yojana(APY)- Atal Pension Yojana (APY) was launched by the Hon'ble Prime Minister on 9th Category of Banks Number of Subscribers May, 2015, and is being implemented with effect from 1st Public Sector Banks 2,52,32,793 June, 2015. The Scheme aims to provide monthly pension to eligible subscribers not covered under any organized Private Banks 21,77,337 pension scheme. APY is open to all bank and post office Small Finance Bank 61,884 account holders in the age group of 18 to 40 years. Under this Scheme any subscriber can opt for a guaranteed Payment Bank 11,51,468 pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000 and Regional Rural Banks 66,45,999 Rs.5,000 receivable at the age of 60 years. The District Co-op Banks 59,673 contributions to be made vary based on pension amount chosen and the age at time of enrolment. APY is being State Co-op Banks 5,662 administered by PFRDA under the overall administrative Urban Co-op Banks 22,271 and institutional architecture of the NPS. Currently, the Department of Posts 3,48,033 Scheme is being distributed through more than 250 active APY service providers including all banks and post offices. Total 3,57,05,120 265Annual Report 2021-2022 Major measures/steps undertaken to increase Banking Financial Companies (NBFCs) & Micro Finance coverage under the Schemes Institutions (MFIs).  Promotion and pension literacy  Categories: Shishu - upto Rs. 50,000/-, Kishore - Rs. 50,000 to Rs.5.00 lakh, Tarun - Rs.5.00 lakh i. Pension Fund Regulatory and Development to Rs.10.00 lakh; Authority (PFRDA), is actively engaged with Banks, State Level Bankers' Committees (SLBCs) & LDMs  No insistence on collateral(s); for National, State and District level focused  A Credit Guarantee Fund for Micro Units (CGFMU) promotion of APY across the country. was set up for guaranteeing loans extended to ii. APY Felicitation and Outreach programs at 10 eligible micro units under Pradhan Mantri Mudra locations have been held in which stake-holders Yojana (PMMY) by Member Lending Institutions from Banks at state/district-level are participating. (MLIs) and Overdraft loan amount sanctioned under Pradhan Mantri Jan Dhan Yojana (PMJDY) iii. Training programs are being organised, town hall accounts. From FY 2020-21 onwards, loans meetings, regular Strategy & Review Meetings are sanctioned to Self Help Groups (SHGs) between being conducted to increase pension literacy. Rs.10 lakh to Rs. 20 lakh would also be eligible iv. Several Central Ministries and State Governments for coverage under CGFMU. The National Credit have been approached to get their unorganized Guarantee Trustee Company Ltd. (NCGTC), a workforce like MNREGA workers, Self Help Groups, wholly-owned company of Government of India, Asha workers, Aanganwadi workers covered under constituted under the Companies Act, 1956 (2013) APY. is the trustee of the Fund. v. Periodical advertisements in the print and electronic  As on 31.10.2021 the sanction amount covered media being issued and updates posted in social under live guarantee is Rs.1.33 lakh crore. media like YouTube, Twitter, Facebook to create As on 31.12.2021, more than 32.53 crore loans awareness about the scheme. amounting to Rs.17.32 lakh crores have been sanctioned vi. Information about APY is being disseminated since the launch of Scheme. Out of this, more than 7.02 through APY KI PATHSHALA You Tube channel. crore loans amounting to Rs.5.45 lakh crores have been extended to New Entrepreneurs/ Accounts which is  Launch of eAPY Platform with Multiple Options approximately 22% of total loans extended under the - PFRDA has launched the eAPY platform to scheme. About 68% loans have been sanctioned to facilitate online on-boarding of APY subscribers women entrepreneurs and 51% loans have been w.e.f. 30th September, 2021. sanctioned to SC/ST/OBC category of borrowers. Category-wise break-up are as under.  Engaging Fintechs and Banking Correspondents (BCs) for widening the Category Percentage as per Percentage as per outreach No. of Loans Amount Sanctioned i. PFRDA is engaging Payment banks like Airtel Shishu 87% 43% Payment Bank and Small Finance banks to achieve Kishore 11% 33% larger enrolment. Tarun 2% 24% ii. Engagement of BCs with suitable incentivization is also helping in increasing outreach of the Scheme. Total 100% 100%  Updating of APY mobile App - To enhance ease 4.3 Stand Up India Scheme (SUPI) of availing various services, features such as The Stand Up India Scheme launched on 5th account details, viewing contribution made, on the April, 2016 aims to promote entrepreneurship among the APY mobile App have been updated. Scheduled Caste/ Scheduled Tribe and Women by 4.2 Pradhan Mantri Mudra Yojana (PMMY) facilitating bank loans of value between Rs.10 lakh and Rs.1 crore to at least one SC/ ST borrower and one woman The Scheme was launched on 8th April 2015 for borrower per bank branch of Scheduled Commercial financing income-generating small business enterprises Banks for setting up greenfield enterprises in trading, in manufacturing, trading and service sectors, including manufacturing and services sector. In 2019-20, the Stand activities allied to agriculture such as poultry, dairy, Up India Scheme was extended for the entire period beekeeping, etc. Under PMMY, both Term loan and coinciding with the 15th Finance Commission period of Working Capital requirements can be met. Loans under 2020-25. Pursuant to an announcement made by the PMMY are extended through MLIs viz; Banks, Non- Union Finance Minister in the Budget speech of 266Department of Financial Services V FY 2021-22, the following changes have been made in Year wise position of target and achievement the Stand Up India Scheme: - under agricultural credit flow for the last seven years and current year given below indicates the sustained trend of  The extent of margin money to be brought by the actual disbursement, surpassing the incremental annual borrower has been reduced from 'upto 25%' to targets year after year. As against the annual target of 'upto 15%' of the project cost. However, the Rs.15,00,000 crores for 2020-21, agriculture credit to the borrower will continue to contribute at least 10% tune of Rs.15,75,398 crores was disbursed, registering of the project cost as own contribution. The 105% achievement. As on 30thSep 2021, Rs.12,48,105 Scheme envisages 'upto 15%' margin money crores was disbursed (Provisional) against target of which can be provided in convergence with eligible Rs.16,50,000 crores registering 76% achievement. Central/State schemes; 5.1 Kisan Credit Card  Loans for enterprises in 'Activities allied to The Kisan Credit Card (KCC) scheme was agriculture' e.g. pisciculture, beekeeping, poultry, introduced in 1998-99, as an innovative credit delivery livestock, rearing, grading, sorting, aggregation system aiming at adequate and timely credit support from agro industries, dairy, fishery, agriclinic and the banking system to the farmers for their cultivation agribusiness centers, food & agro-processing, etc. needs including purchase of inputs in a flexible, convenient (excluding crop loans, land improvement such as and cost effective manner. The Scheme is being canals, irrigation, wells) and services supporting implemented by all Cooperative Banks, Regional Rural these, shall be eligible for coverage under the Banks (RRBs) and Commercial Banks throughout the Scheme. country. NABARD monitors the scheme in respect of Cooperative Banks and RRBs, whereas RBI monitors the As on 31.12.2021, a total number of SCs/STs scheme in respect of Commercial Banks. A revised and Women borrowers benefited under the Stand Up India scheme for KCC was circulated by RBI and NABARD in Scheme are as under. (Amt. in Rs. crores) SC ST Women (General) Total No of No of Sanctioned No of Sanctioned Amt. Sanctioned Amt. No of A/Cs Sanctioned Amt. A/Cs A/Cs Amt. A/Cs 18553 3814.84 6273 1335.88 106126 24343.08 130952 29493.80 4.4 Pradhan Mantri Vaya Vandana Yojana 2012 prescribing the provision for ATM enabled debit card which can be used at ATM/Point of sale (POS) terminal, Pradhan Mantri Vaya Vandana Yojana (PMVVY) inter alia, with facilities of one-time documentation and is offered by the Life Insurance Corporation of India (LIC) built-in cost escalation in the credit limit, etc. The facility and supported by the Government of India, to provide of KCC along with interest subvention has been extended senior citizens of age 60 years or more an assured to Animal Husbandry farmers and Fisheries to help them minimum pension for a term of 10 years, linked to the meet their working capital requirements. Presently, about 7 crore farmers avail the benefit of the KCC scheme price at which they purchase the pension policy. having a total outstanding loan of Rs.6.8 lakh crores. Government bears the cost of any shortfall in the returns earned annually on the policy purchase price vis-à-vis the 5.2 Rural Infrastructure Development Fund (RIDF) minimum returns required for paying the assured minimum The Government of India had set up Rural pension. Maximum Investment allowed is Rs.15,00,000. Infrastructure Development Fund (RIDF) in NABARD with A loan of up to 75% of the purchase price, under the the objective of providing low cost fund support to the scheme, is allowed after completion of three policy years. States to facilitate quick completion of ongoing rural The Scheme is valid upto 31st March, 2023. As on infrastructure projects. RIDF, with 39 activities under its 31.01.2022, 7.75 lakh senior citizens have been benefited scope, has emerged as a dependable source of public under the scheme. funding of impactful rural infrastructure projects. The 5. Agriculture Credit annual allocation of funds under RIDF has gradually increased from Rs.2,000 crores in 1995-96 (RIDF I) to In order to boost the agriculture sector with the Rs.40,000 crores in 2021-22 (RIDF XXVII). As against help of effective and hassle-free agriculture credit, the the allocation of Rs.40,000 crores made during 2021-22 Government has been fixing annual targets for ground for RIDF under Tranche XXVII, sanctions to the tune of level agriculture credit by Scheduled Commercial Banks, Rs.38,450 crores were accorded to various State Regional Rural Banks (RRBs) and Cooperative Banks. Governments as on 31.01.2022. 267Annual Report 2021-2022 The Agriculture targets and achievements (Rs. in crores) * Data in Provisional Source: Ensure Portal of NABARD The aggregate allocation till 30thNovember, 2021 5.4 Short Term Regional Rural Bank (Refinance) has reached Rs.4,31,622 crores, including Rs.18,500 Fund crores for the Bharat Nirman component sanctioned to The Short Term Regional Rural Bank (Refinance) National Rural Roads Development Agency (NRRDA) (STRRB) Fund was set up with an allocation of Rs.10,000 under RIDF XII-XV. Impact evaluation studies on projects crores in 2012-13, so as to enable NABARD to provide funded under RIDF have revealed multiple positive socio- Short Term refinance to RRBs to meet their crop loan economic developmental outcomes in rural areas. These lending obligations. NABARD provides refinance to RRBs projects have brought about an improvement in ease of at an interest rate of 4.5 % per annum for crop loans upto living in rural areas and augmenting income levels, Rs.3.00 lakh disbursed by RRBs at an interest rate of 7% besides strengthening the rural banking system and credit per annum to ultimate borrowers. The allocation under absorption capacity. STRRB Fund was at Rs.10,000 crores (10,126.75 crores, including residual allocation of earlier years) during 2021- 5.3 Short Term Cooperative Rural Credit 22. As on 30.01.2022, Rs.6,765.64 crores has been (Refinance) Fund utilised out of STRRB (Refinance) Fund during 2021-22. The Short Term Cooperative Rural Credit- 5.5 Long Term Rural Credit Fund (LTRCF): STCRC (Refinance) Fund was set up in NABARD in 2008- This fund has been set up for the purpose of 09 with an initial corpus of Rs.5,000 crores to provide Short providing long term refinance support to Cooperative Term refinance to Cooperative Banks so as to ensure Banks and Regional Rural Banks for their lending towards increased and uninterrupted credit flow to farmers at investment activities in agriculture. Government has concessional rate of interest. NABARD provides refinance allocated Rs.15,000 crores (15,190.12 crores, including to Cooperative bank at an interest rate of 4.5 % per annum residual allocation of earlier years) to this fund during 2021- for crop loans upto Rs.3.00 lakh disbursed by cooperative 22. As on 30.01.2022, Rs.14,528.83 crores has been banks at an interest rate of 7% per annum to ultimate utilised out of LTRCF during 2021-22. borrowers. An allocation of Rs.45,000 crores (45,570.37 crores, including residual allocation of earlier years) has 5.6 Strengthening the Capital Base of NABARD been made for the STCRC (Refinance) Fund during 2021- NABARD Amendment Act 2018 has been notified 22. As on 30.01.2022, Rs.32,203.43 crores has been on 19.01.2018 which empowers the Government to utilised out of STCRC (Refinance) Fund during 2021-22. increase the authorised capital of NABARD from Rs.5,000 268Department of Financial Services V crores to Rs.30,000 crores and to increase it beyond 5.7.3 Swachh Bharat Mission - Gramin (SBM-G) Rs.30,000 crores in consultation with RBI as deemed The Government of India in the Ministry of Jal necessary from time to time. This will enable NABARD to Shakti (earlier Ministry of Drinking Water & Sanitation), potentially increase its borrowing in future for funding the launched SBM-G on 2nd October, 2014 with the goal to large investments being made in rural infrastructure in achieve universal sanitation coverage in rural areas by sectors like irrigation, housing, universal sanitation, dairy, 2nd October, 2019. For the construction of around 3 crore fisheries etc. Individual House Hold Toilets, 1500 Community Sanitary During 2021-22, equity support of Rs.1,500 crores Complexes and Solid & Liquid Resources Management has so far been provided to NABARD to enable it to fulfil works during 2018-19, the total fund requirement towards its lending commitment under various Government Central Share was estimated at Rs.30,343 crores, out of initiatives including the flagship programmes i.e PMAY-G, which Rs.15,000 crores was to be raised through LTIF, MIF and Swatch Bharat Mission. Total paid up capital borrowing from NABARD. As on 30 November 2021, the as on 30.01.2022 in respect of NABARD is Rs.17,580 cumulative sanction and release by NABARD under SBM crores. -G stands at Rs.15,000 crores and Rs.12,298.20 crores respectively. 5.7 Role of NABARD in Government of India Initiatives 5.7.4 Micro Irrigation Fund 5.7.1 Long Term Irrigation Fund (LTIF) Micro Irrigation Fund with a corpus of Rs.5,000 crores has been operationalized from 2019-20 in NABARD The Government of India, in the Dept. of Water with an objective to facilitate State Govts. Efforts in Resources, River Development and Ganga Rejuvenation, mobilizing additional resources for expanding coverage Ministry of Jal Shakti (earlier Ministry of Water Resources) under micro irrigation and incentivizing its adoption beyond has taken a major initiative to complete various stalled provisions of PMKSY-PDMC. The cumulative sanction and major/medium irrigation projects in the country, for which release under MIF as on 31.01.2022 stands at Rs.3970.17 a Long Term Irrigation Fund (LTIF) was set up in NABARD. crores and Rs.2083.72 crores respectively. This will As on 30 November 2021, against the total estimated facilitate in expanding micro irrigation to an area of 12.83 amount of Rs.77,595 crores for the 99 identified projects, lakh ha. involving 10.20 lakh farmers. Further, the corpus sanctions have been accorded by NABARD under LTIF under MIF has been augmented by another Rs.5000 to the tune of Rs.71,170.70 crores. Further, loan amount crores, as announced in the Union Budget 2021-22. of Rs.11217.69 crores has been sanctioned for the Polavaram Irrigation project, Rs.1,378.61 crores for North 6.1 Priority Sector Lending (PSL) Koel Reservoir Project, Rs.485.35 crores for The objective of priority sector lending (PSL) has Shahpurkandi Dam and Rs.826.17 crores for Relining of been, inter-alia, to ensure access to credit to vulnerable Sirhind and Rajasthan Feeder under LTIF. The cumulative sections of society and have adequate flow of resources amount released against sanction of 99 identified projects to those segments of the economy which have higher stood at Rs.43,968.79 crores. Similarly, for Polavaram employment generation potential and help in making an Irrigation project, North Koel Reservoir Project and impact on poverty alleviation. Thus, the sectors that impact Shahpurkandi Dam Project, cumulative releases stood large sections of the population, the weaker sections and at Rs.10650.18 crores, Rs.721.22 crores and Rs.207.45 the sectors which are employment-intensive such as crores, respectively. agriculture and micro and small enterprises are part of 5.7.2 Pradhan Mantri AwaasYojana- Gramin the priority sector. (PMAY-G) With the objective of making the Priority Sector Lending norms more broad-based, the guidelines are The Government of India in the Ministry of Rural reviewed from time to time to align them with the emerging Development launched 'Pradhan Mantri Awaas Yojana- national priorities. As a part of this process, the PSL Gramin' (PMAY-G) on 1st April 2016, with an objective to guidelines have been revised in 2020. The revised ensure "Housing for All" by 2022. A total of 2.95 crore guidelines also aim to encourage and support environment houses are to be constructed under PMAY-G {1 crore friendly lending policies/schemes and help to achieve under Phase-I (2016-17 to 2018-19) and 1.95 crore Sustainable Development Goals (SDGs). houses under Phase -II (2019-20 to 2021-22)}. NABARD extends loans to National Rural Infrastructure 6.2 Some of the salient features of the revised Development Agency (NRIDA), a SPV of GoI, towards PSL guidelines are as under. part funding of Central share under the Scheme. The  To address regional disparities in the flow of priority cumulative sanction and release under PMAY - G as on sector credit, higher weightage has been assigned as on 30 November 2021 stands at Rs.61,975 crores and to incremental priority sector credit in 'identified 184 Rs.48,819.03 crores respectively. 269Annual Report 2021-2022 credit deficit districts' where priority sector credit agricultural produce, and to encourage use of flow is comparatively low, and vice versa. NWR/eNWR issued by warehouses registered and regulated by Warehouse Development and  The targets prescribed for "small and marginal Regulatory Authority, the PSL limit for loans against farmers" and "weaker sections" are being NWRs/eNWR has been increased from Rs.50 lakh increased from 8% to 10% & 10% to 12% to Rs.75 lakh per borrower. respectively in a phased manner from 2021-22 to 2023-24. The outstanding priority sector advances of Public Sector Banks was Rs.23,63,854 crores as on March 31,  Credit to new sector like Compressed Bio Gas 2020 and Rs.25,38,507 crores as on March 31, 2021. (CBG), Solar projects, credit for start-ups (up to Advances to agriculture by PSBs amounted to Rs.50 crores) engaged in Agriculture & allied Rs.11,33,163 crores as on March 31, 2021 constituting activities and MSME have been made eligible under 18.50 percent of Adjusted Net Bank Credit (ANBC). For PSL. the quarter ended June, 2021* total outstanding priority  Higher credit limit has been specified for Farmers sector advances of public sector banks is Rs.24,83,811 Producers Organisations (FPOs)/Farmers crores and outstanding towards agriculture under priority Producers Companies (FPCs) undertaking farming sector is Rs.11,18,870 crores. (*Provisional figures as with assured marketing of their produce at a pre- reported by banks to RBI). determined price. 6.3 Revised Targets /Sub-targets for Priority  Credit limit has also been enhanced in case of sector sector like renewable energy sector, Health The targets and sub-targets set under priority sector Infrastructure (including Ayushman Bharat) and lending, to be computed on the basis of the ANBC/ CEOBE education loan. as applicable as on the corresponding date of the  In order to ensure greater flow of credit to the preceding year, are as under. farmers against pledge/hypothecation of Categories Domestic Foreign banks Regional Rural Small Finance commercial with less than 20 Banks Banks banks (excl. branches RRBs & SFBs) & foreign banks with 20 branches and above 40 % out of which 40 % out of which up up to 32% can be to 32% can be in the in the form of form of lending to Total Priority Sector 40 % lending to Exports Exports and not less 75 % and not less than than 8% can be to 8% can be to any any other priority other priority sector sector 18% ; out of 18% out of which a target of 18% ; out of which a which target of Agriculture 10 %* is Not applicable target of 10 % *is 10 %* is prescribed for prescribed for SMFs prescribed for SMFs SMFs Micro Enterprises 7.5 % Not applicable 7.5 % 7.5 % Advances to Weaker 12 %* Not applicable 15% 12%* Sections Note: % in terms of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOB), whichever is higher. *Targets for Small and Marginal Farmers (SMFs) s and weaker sections as per revised guidelines will be implemented in a phased manner from 8% to 10% and 10% to 12% respectively up to 2024. 270Department of Financial Services V 6.4 Education Loan and make application for Educational Loans provided by Banks. The Portal has the following features. Every meritorious student should have access to bank credit to pursue higher education, if they so desire.  Information about Educational Loan Schemes of Indian Banks' Association (IBA) had prepared the Model Banks; Educational Loan Scheme and circulated to banks in the  Common Educational Loan Application Form for year 2001. The Scheme is for all students including Students; students belonging to the economically weaker sections and those below the poverty line. Indian Nationals who  Facility to apply to multiple Banks for Education have secured admission to a higher education course in Loans; a recognised Institution in India or abroad through an entrance test/merit based selection process are eligible  Provision for charging of differential interest rates for educational loans under the Scheme. The Scheme Facility for Banks to download Students' Loan has been modified from time to time keeping in view the Applications; changing needs of the students. The last revision of the  Facility for Banks to upload loan processing Model Educational Loan Scheme was carried out on status; 15.02.2021 and circulated to Banks. The main features of the revised Model Educational Loan Scheme are as  Facility for Students to email grievances/queries under. relating to Educational Loans to Banks;  Provision for charging of differential interest rates  Dashboard facility for Students to view status of based on status of collateral, employability and their loan application reputation of institutions.  Linkage to National Scholarship Portal for  Relaxation in margin and security for loans information and application for Government guaranteed by NCGTC. Scholarships.  Extension of repayment period (after moratorium) Banks have been requested to give wide publicity up to 15 years for all loans. to this Portal so that students wanting education loans  Uniform one-year moratorium for repayment after can apply for it and indicate their bank of choice. completion of studies in all cases. 6.4.4 Interest Subsidy Scheme for Education Loans  Provision for moratorium taking into account spells of unemployment/under-employment, Ministry of Human Resource Development had say two or three times during the life cycle of the formulated, in May, 2010, a Central Scheme to provide loan. Moratorium may also be provided for the 'Interest Subsidy' for the period of moratorium on incubation period if the student wants to take up educational loans taken by students of economically a start-up venture after graduation. weaker sections from scheduled banks under the Educational Loan Scheme of the Indian Banks' 6.4.1 Service Area Norms for Education Loans- RBI Association. The scheme is applicable to the following guidelines categories of loans. RBI has advised the Banks on November 09, 2012 i. Educational loan disbursed/availed after 1st April, that Service Area Norms are to be followed only in the 2009 from Scheduled Banks which follow IBA case of Government Sponsored Schemes, circulated vide Model Educational Loan Scheme; their circular dated December 8, 2004 and are not applicable to sanction of educational loans. Hence, banks ii. Students belonging to economically weaker have been advised not to reject any educational loan sections, i.e, whose parental income from all application for reasons that the residence of the borrower sources do not exceed Rs.4.5 lakhs per annum; does not fall under the bank's service area. iii. The scheme is applicable starting from academic 6.4.2 Performance of Education Loans year 2009-10, disbursement starting on or after 01.04.2009, irrespective of date of sanction. As on 31st December, 2021, the total outstanding education loans of Public Sector Banks (PSBs) as on 31st 7. Financial Institutions December, 2021 stood at is Rs.77,902.94 crores in 18,78,866 accounts. 7.1 Export -Import Bank of India (Exim Bank) 6.4.3 Vidya Lakshmi Portal Exim Bank has been established as a statutory, apex financial institution in 1982 under an Act of the Vidya Lakshmi Portal is a first of its kind portal Parliament of India, for financing, facilitating and promoting providing single window for Students to access information India's international trade, for functioning as the principal 271Annual Report 2021-2022 financial institution for coordinating the working of Public-Private-Partnership (PPP) projects. IIFCL provides institutions engaged in financing export and import of long term financing to viable infrastructure projects through goods and services with a view to promoting the country's a product mix of Direct Lending (SIFTI), Takeout Finance, international trade, and to function as a key policy-input Refinance and Credit Enhancement. On a standalone provider to the Government of India. basis, till 30th November, 2021, IIFCL has made Cumulative Gross Sanctions of Rs.1,72,559 crores under The Bank offers a comprehensive range of Direct lending, Takeout Finance and Refinance schemes. lending and service / advisory programmes, aimed at This includes Cumulative Gross Sanctions of Rs.1,01,286 aiding the globalisation efforts of Indian companies. The crores to 527 projects under Direct Lending. The Company Bank especially distinguishes itself in the areas of project has made Cumulative Disbursements of Rs.86,562 exports, export lines of credit (LOCs) and overseas crores, Rs.25,015 crores under Refinance and Rs.16,413 investment finance, which benefit a gamut of externally- crores under Takeout Finance till November 2021. oriented Indian companies, including SMEs. The Bank has launched Ubharte Sitaare Programme aimed at 7.3 IFCI Ltd. offering future export champions a combination of equity, IFCI Ltd. (IFCI) was set up as a Statutory debt and technical assistance to qualitatively and Corporation ("The Industrial Finance Corporation of India") quantitatively grow their exports under the programme. in 1948 for providing medium and long term finance to During the current financial year, the Government of India industry. In 1993, after repeal of the IFC Act, IFCI became has infused capital of Rs.750 crore towards subscription a Public Limited Company, registered under the to its share capital. Companies Act, 1956. Currently, IFCI is a Government As on November 30, 2021, the Bank, with the Company with Government of India holding 63.81% of support of Government of India, has extended 310 Lines paid-up capital of IFCI. IFCI is also registered with the of Credit aggregating USD 31.18 billion to various Reserve Bank of India (RBI) as a Systemically Important countries across Asia, Africa, LAC, CIS and Oceania Non-Deposit taking Non-Banking Finance Company region. As on November 30, 2021, the Bank has (NBFC-ND-SI) and is also a notified Public Financial sanctioned an aggregate amount of USD 2.84 billion for Institution under Section 2(72) of the Companies Act, 32 projects under Buyer's Credit under National Export 2013. Insurance Account (BC-NEIA). As regards Overseas 7.4 National Bank for Financing Infrastructure and Investment Finance, during 2020-21, the Bank sanctioned Development funded and non-funded assistance aggregating Rs.742 crores to 5 Indian corporates for part financing their As announced during Union Budget 2021-22, the overseas investments in 3 countries. From April to National Bank for Financing Infrastructure and November 30, 2021, funded and non-funded assistance Development Act, 2021 has been enacted in March, 2021 aggregated Rs.1890 crores to 11 Indian corporates for for establishment of National Bank for Financing part financing their overseas investments in 7 countries. Infrastructure and Development, as an infrastructure As on November 30, 2021, the Bank's net loans and focused Development Financial Institution (DFI), to advances stood at Rs.1,08,722 crores, while the non-fund support the development of long-term non-recourse portfolio of the Bank was at Rs.14,684.80 crores. The total infrastructure financing in India including development of business portfolio of the Bank stood at Rs.2,42,368 crores the bonds and derivatives markets necessary for as on November 30, 2021. infrastructure financing and to carry on the business of financing infrastructure. It is expected to help start a 7.2 India Infrastructure Finance Company Ltd (IIFCL) virtuous investment cycle in the post Covid era, by IIFCL is a wholly-owned Government of India anchoring financial closure and catalysing private sector company set up in 2006 to provide long-term financial investments in infrastructure. Chairperson has already assistance to viable infrastructure projects. IIFCL has been been appointed while two Govt. Nominee Directors have registered with the Reserve Bank of India as Non-Banking been nominated to enable early operationalization of the Finance Company - Infrastructure Finance Company DFI. (NBFC-IFC) since September 2013. IIFCL has set up three 7.5 National Housing Bank wholly-owned subsidiaries as under. 7.5.1 Operational Highlights during FY 2020-21 (a) IIFC(UK) (01.07.2020 to 30.06.2021) (b) IIFCL Asset Management Company Limited  Refinance target of the year surpassed with (IAMCL) Rs.34,230 crores disbursed during the year: (c) IIFCL Projects Limited (IPL) another all-time high for NHB in succession (Rs.25,177 crores in FY19 and Rs.31,258 crores The organization gives overriding priority to in FY20). 272Department of Financial Services V  This included Rs.12,041 crores under the Special lending of PSLs by Banks with HFCs allowed since Refinance Facilities (ASRF/SRF 2021) to alleviate Oct., 2020 was one of them. Covid related stress of sector (@ 4.85-5.35%) and  During April, 2020 to March, 2021, NHB, as a Rs.9,631 crores under AHF directed at EWS/LIG Central Nodal Agency under PMAY-CLSS (U), segments (@3%). disbursed subsidy amounting to Rs.6,964 crores  Worth mention is the refinance support by NHB to 3.04 lakh households. Till June, 2021, NHB as to housing sector during the pandemic period. a CNA released subsidy of Rs.29,960 crores to Total disbursements during the period March, PLIs benefitting over 13 lakh households (8.53 2020 till June, 2021 amounts to over Rs.63,000 lakh under EWS/LIG and 4.63 lakh MIG). crores.  Key HR initiatives of the year include putting in  Outstanding refinance portfolio of the Bank place a comprehensive HR Policy of the Bank; increased during last two years from Rs.69,712 induction of officers at various cadre including crores at June, 2019 to Rs.85,545 crores at June, specialists in Risk Management, Credit, HR, 2021. During the same period, refinance exposure Economic Research and MIS to ensure proper to HFCs rose from Rs.50,453 crores to Rs.72,107 succession planning and introduction of MD & crores. ED's Club for young officers to encourage continuous learning.  Cumulatively, NHB has made disbursement of Rs.3,02,192 crores (till 30.06.2021).  Introduced a matrix based and tech driven rating model was put in place for Internal Credit rating  NHB is the main source of low-cost long-term of PLIs and operationalised the Cyber Security liquidity for HFCs post liquidity crisis of 2018-19. Operation Centre (CSOC). Over 80% of refinance during last two years were to HFCs which included 30+ smaller HFCs with  Strengthened the Regional Set up with opening Loan Book of less than Rs.1000 crores. of 4 new Regional Representative Offices (RRO) at Chennai, Bhopal, Lucknow and Guwahati for  Total Assets of the Bank increased from Rs.75,591 better monitoring and compliance, grievance crores at June, 2019 to reached a level of redressal and better coordination with SLBC and Rs.90,594 crores at June, 2021. State Governments.  63% of the year's refinance disbursements were  Organised COVID-19 vaccination camps in-house low-cost funds under SRF and AHF with negligible for vaccination of the officers, staffs and their spread. Further, Rs.625 crores was provided family members, as also employees of other towards DHFL and PMC Bank exposures to institutions in Habitat Centre. achieve Nil Net NPA status.  Increased virtual engagement with all HFCs  Notwithstanding this, Bank managed to close the helped NHB during the pandemic period to ensure year with a PAT of Rs.663 crores and a stronger that the moratorium on loan repayments is passed balance sheet of the Bank with 100% PCR. on to borrowers, vaccination drive is launched and  In view of the pandemic related travel restrictions, at the same time, to provide the much-needed the Bank adopted a hybrid model (mix of virtual liquidity support and revive fresh disbursements. and onsite) of inspection of HFCs in consultation  The Bank organised 12 such meetings of CEOs with RBI. To strengthen supervision of HFCs, an of HFCs in small homogeneous groups, to online Inspection Reporting System was launched deliberate on the sector specific issues and to digitize inspection reports. Off-site supervision developments. was strengthened with upgradation and automation of various ORMIS based reports.  Despite the intermittent disruption by COVID-19, FY 2020-21 proved to be a year of resurgence  Automated Data Flow (ADF) was successfully and revival for the housing finance system, as also implemented at 5 large HFCs and its rollout to for National Housing Bank. Noteworthy is that, Top 20 HFCs is underway. This is a major initiative even after the second phase of COVID, home loan in the direction of strengthening off-site monitoring disbursement from HFCs has revived to pre- and overall supervision of HFCs. pandemic levels and more importantly, the HFCs  Bank continued to contribute in improving have a larger role in the post pandemic revival of regulation and functioning of HFCs by way of the housing finance sector and continue to lead periodic recommendations sent to RBI through the disbursement charts. Supervisory Committee of Board and DFS. Co- 273Annual Report 2021-2022 7.5.2 Financing (as on 30.09.2021 viz. 01.07.2021 to Small and Medium Enterprises and coordination of the 30.09.2021) functions of the various Institutions engaged in similar activities.  During the period ended 30.09.2021 refinance of Rs.185 crores was sanctioned to 5 HFCs and 7.6.1 Operational Highlights during FY 2020-21 Rs.1494.67 crores was sanctioned to 11 HFCs In the current challenging business environment, out of which Rs.1454.67 crores was disbursed the Bank registered its highest ever Net Profit of Rs.2,398 during the FY 2020-21. crores during FY 2021, an increase of 3.6% as compared  This includes disbursement of Rs.483.28 crores to FY 2020. The Asset Base of the Bank has registered a under AHF towards 5279 dwelling units. Y-o-Y growth of 2.6% and stood at Rs.1,92,322 crores at the end of FY 2021. Loans and Advances stood at  With an aim to meet the supplementary liquidity Rs.1,56,233 crores as of March 31, 2021, a decline of requirements of the HFCs/PLIs due to COVID-19 5.6% as compared to FY 2020. disruptions, Bank launched new scheme named Special Refinance Facility 2021 (SRF 2021) in the The Net Interest Income for FY 2021 grew by month of April, 2021 and disbursed Rs.8111.80 11.5% to Rs.3,678 crores, driven by a 0.10 percentage crores to 38 PLIs including 37 HFCs. growth in Net Interest Margin. The improved margins, coupled with reduced operating expenses and reduced  As on September, 2021, PLIs have repaid all the Cost-to-Income ratio, were the drivers for the Bank logging amount availed under Special Refinance Facility its highest ever net profit. and Additional Special Refinance Facility. 7.6.2 Financing during FY 2020-21  Total refinance support to PLIs since April, 2021 is Rs.13,847 crores which includes Rs.13,347 The Institutional Finance operations of the Bank crores to HFCs. focused primarily on addressing the liquidity concerns of financial intermediaries, as part of Special Liquidity Facility Projections/estimates for the period from (SLF) Rs.15,000 crores provided by RBI. Under the 01.10.2021 to 31.03.2022 scheme, the Bank has disbursed Rs.5,700 crores to 16  Bank has sanctioned an amount of Rs.516 crores Banks, Rs.4,902 crores to 57 Non Banking Finance and disbursed an amount of Rs.265 crores during Companies (NBFCs) and Rs.2,258 crores to 36 the month of October, 2021. Microfinance Institutions (MFIs), benefitting 24.59 lakh eligible candidates. RBI has further provided Special  Bank projects to further sanction an amount of Liquidity Facility (SLF-II) of Rs.15,000 crores to the Bank Rs.21,000 crores and disburse an amount of to address the liquidity and credit needs of the MSME Rs.20,000 crores during the period November, sector, and Special Liquidity Facility (SLF-III) of Rs.16,000 2021 to March, 2022. crores to the Bank for innovative schemes to meet short- and medium-term needs of the MSME sector, especially 7.5.3 Promotion & Development smaller MSMEs, in credit deficient and aspirational  Under PMAY-CLSS (Urban), for the period July districts. 01, 2021, to October 15, 2021, subsidy amounting The Institutional Finance book stood at to Rs.2,925.77 crores was released benefitting Rs.1,44,628 crores at the end of FY 2021, declining by 1.22 lakh households (Rs.2,920.08 crores to 1.21 6.9% year-on-year, owing to the ample surplus liquidity in lakh households under EWS/LIG and Rs. 5.69 the financial system. However, the Bank has diversified crores to 277 households under MIG). its customer base by onboarding 35 new NBFCs, 18 new  Till 15.10.2021, NHB as a CNA released subsidy MFIs and two Banks during FY 2021, taking the total of Rs.32,922.75 crores to PLIs benefitting 14.38 customer base to 31 commercial Banks, 10 Small Finance lakh households (Rs.23,176.43 crores to 9.75 lakh Banks (SFBs), 71 NBFCs and 78 MFIs at the end of FY households under EWS/LIG and Rs.9,746.32 2021. crores to 4.63 lakh households under MIG). Direct Lending operations of the Bank primarily 7.6 Small Industries Development Bank of India focused on ensuring uninterrupted flow of credit to (SIDBI) MSMEs, especially to those engaged in fighting the pandemic, and in implementation of relief measures Small Industries Development Bank of India has announced by RBI. FY 2021 has been a fruitful year for been established under an Act of the Parliament in April Direct Finance operations, and structural changes 2, 1990. SIDBI is mandated to serve as the Principal undertaken have resulted in a 17.4% growth in outstanding Financial Institution for executing the triple agenda of portfolio, taking it to Rs.11,581 crores, and a 19.9% growth Promotion, Financing and Development of the Micro, in customer base during FY 2021. The Bank has played a 274Department of Financial Services V crucial role in addressing the financing needs of MSMEs seven locations, EU Switch Asia Bamboo Project in nine during the COVID pandemic by rolling out customized backward states including five in NER, Sanitation & schemes as per the needs of the MSMEs engaged in Hygiene Entrepreneurs (SHEs) etc. fighting the pandemic. The Bank has undertaken various initiatives to The Bank is an operating agency for Fund of promote the innovations and keeping the entrepreneurial Funds for Start-ups (FFS), a programme of DPIIT, Ministry zeal alive among youngsters. Key initiatives include of Commerce and Industry, ASPIRE Fund (AF) of Ministry Gramin Navonmesh Protsahan, which supported 18 rural of MSME and UP Startup Fund on behalf of Government innovations, the Bank Sakhi Programme, which created of Uttar Pradesh. During FY 2021, Rs.1,611.25 crores was 1,640-plus Bank Sakhis in 36 districts of Bihar, the sanctioned to 18 Alternative Investment Funds (AIFs) Swavalamban Chair for MSME Solutions at the under Fund of Funds (FFS), taking the cumulative Government Engineering College Thrissur, the sanctions to Rs.5,409.45 crores as of March 31, 2021. Swavalamban Divyangjan Assistive Tech Market Access Under UP Start-up Fund, commitments of Rs.20 crores Fund, the SIDBI Centre for Innovation in Financial have been sanctioned to two AIFs as on March 31, 2021. Inclusion/SCiFI, and the Swavalamban Livelihood Enhancement and Awareness Programme in Leh to 7.6.3 Promotion & Development promote entrepreneurship in the region. The Promotion and Development (P&D) activities 8. Insurance Sector of the Bank are woven around Mission Swavalamban, which is an umbrella framework for stimulating the 8.1 Overview entrepreneurship culture and supporting various livelihood Insurance, being an integral part of the financial and entrepreneurship programmes. The five pillars of sector, plays a significant role in India's economy. Apart Mission Swavalamban, viz., Sampark, Samwad, from protecting against mortality, property and casualty Suraksha, Sampreshan and Sangam, are the key guiding risks and providing a safety net for individuals and themes for the Bank's P&D activities. enterprises in urban and rural areas, the insurance sector Under the Sampark theme, which signifies the encourages savings and provides long-term funds for connect with MSMEs and Entrepreneurs, the Bank has infrastructure development and other long gestation focused on enhancing the connect with MSMEs and projects of the nation. The development of the insurance entrepreneurs through initiatives such as establishing sector in India is necessary to support its continued Swavalamban Connect Kendras in 100 districts, economic transformation. organizing webinars under E-Udyam Sangyan, launching 8.2 Public Sector Insurers a Digi-Gyanshala for imparting financial literacy, and organizing fairs to support livelihoods. Under the Samwad The following are classified as public sector theme, which signifies dialogue to strengthen relations insurers operating in India by the Insurance Regulatory among stakeholders, the Bank launched the and Development Authority of India (IRDAI): Swavalamban Crisis Responsive Fund to support free onboarding of MSMEs on the TReDS platform. The Bank (1) Life Insurance Corporation of India (LIC), which has onboarded 11,600-plus MSMEs on the said platforms. is a life insurer Under the Suraksha theme, which signifies (2) National Insurance Company Limited (NICL), creating an enabling environment for MSME growth, the which is a general insurer Bank has designed COWE Mart as a medium for digital (3) Oriental Insurance Company Limited (OICL), Buyer-Seller connect and onboarded 98 women which is a general insurer entrepreneurs. The Bank has also supported 76 role models in 11 districts. Under the Sampreshan theme, (4) United India Insurance Company Limited (UIICL), which signifies constructive engagement with policy which is a general insurer makers and MSME entrepreneurs, the Bank has set up (5) New India Assurance Company Limited (NIACL), Project Management Units in 11 states for strengthening which is a general insurer the MSME ecosystem and transferring good practices through learning sessions. Further, a bouquet of digital (6) General Insurance Corporation of India ("GIC knowledge products was also created for dissemination Re"), which is a reinsurer of information on entrepreneurship among the youth. (7) Agriculture Insurance Company of India Limited, The Sangam theme signifies initiatives that inherit which is a specialised insurer, incorporated as a the traits of more than one of the four other pillars. Under joint venture of the four public sector general this theme, the Bank has undertaken initiatives such as insurers and National Bank for Agriculture and Swavalamban Silai Schools, which were opened in 1,638 Rural Development (NABARD) villages, Micro Enterprise Promotion Programmes at 275Annual Report 2021-2022 (8) Export Credit Guarantee Corporation of India Administration of the Actuaries Act, 2006 was Limited ("ECGC"), which is a specialised insurer strengthened through the Actuaries (Election to Council) for export credit guarantee, incorporated as a Rules, 2021, which enabled electronic voting, and through Government of India enterprise under the Ministry the Actuaries (Procedure for Enquiry of Professional and of Commerce and Industry, Department of Other Misconduct) Amendment Rules, 2021 which Commerce amended the Actuaries (Procedure for Enquiry of Professional and Other Misconduct) Rules, 2008, which 8.3 Legislative framework for insurance made extensive improvements in the procedure for The Department is responsible for administering enquiry into professional and other misconduct by the following Acts: actuaries. (1) The Insurance Act, 1938 8.4 Industry Statistics (2) The Life Insurance Corporation Act, 1956 8.4.1 Insurance penetration and insurance density (3) The General Insurance Business Insurance penetration and density reflect the level (Nationalisation) Act, 1972 of development of insurance sector in a country. Insurance penetration is calculated as the percentage of insurance (4) The Insurance Regulatory and Development premium to GDP, while insurance density is calculated as Authority Act, 1999 the ratio of premium to population. For FY 2020-21, insurance penetration for India was 4.2%, of which life (5) The Actuaries Act, 2006 insurance accounted for 3.2% and non-life insurance The Insurance (Amendment) Act, 2021 amended accounted for 1%. India's insurance density for FY 2020- the Insurance Act, 1938, to enhance the allowed limit for 21 was US$ 78. foreign investment in an Indian insurance company from 8.4.2 Life insurance 49% to 74% of paid-up equity capital, subject to such conditions and manner as may be prescribed by rules, Life insurance premium income during FY 2020- and also removed the earlier requirement that an Indian 21 was Rs. 6.29 lakh crore, as against Rs. 5.73 lakh crore insurance company with such investment have Indian in FY 2019-20, representing a growth of 9.74%. ownership and control. The requisite conditions and manners were provided for through amendments made New business premium for life insurance for to the Indian Insurance Companies (Foreign Investment) FY 2020-21 Rules, 2015 by the Indian Insurance Companies (Foreign Market New premium Total Investment) Amendment Rules, 2021 published in the Growth share underwritten premium Official Gazette on 19th May 2021, thereby operationalising LIC 71.8 % 1.84 lakh crore 2.79 lakh 7.50 % the legal framework for higher foreign investment in the Private sector 28.16 % 0.94 lakh crore crore insurance sector. insurers Enabling amendments made to the Life Insurance Corporation Act, 1956 by the Finance Act, 2021 aligning 8.4.3 General insurance LIC's governance framework with listing requirements under regulations made by the Securities and Exchange General insurance premium income (including Board of India (SEBI) were brought into force with effect premium income of standalone health insurers) during from 30th June 2021. The Life Insurance Corporation FY 20-21 was Rs. 1.99 lakh crore, as against Rs. 1.89 Rules, 1956 were amended through the Life Insurance lakh crore in FY2019-20, representing a growth of 5.19%. Corporation General (Amendment) Rules, 2021 published in the Official Gazette on 30th June 2021, to carry out the Premium for general insurance (including health provisions of the Act as amended. insurance) for FY 2020-21 The General Insurance Business Nationalisation Market share Premium Growth (Amendment) Act, 2021 amended the General Insurance underwritten Business (Nationalisation) Act, 1972 to provide for greater Public 42.75 % Rs. 0.85 lakh 1.50 private participation in the public sector general insurance sector crore companies, enhance insurance penetration and social insurers protection, and secure the interests of policy holders while Private 57.25 % Rs. 1.14 lakh 8.12 contributing to faster growth of the economy. The sector crore amendments were brought into force with effect from 27th insurers August 2021. 276Department of Financial Services V Health premium accounted for 32.08% 8.5 Investments of the insurance sector (Rs. 63,752.97 crore) of the general insurance premium As on 31st March 2021, the total investments held income (including premium income of standalone by the insurance sector were as under: health insurers) in FY 2020-21, as against 30.10% in FY 2019-20 (Rs. 56,865.13 crore). Insurance sector Life insurers Public sector insurers FY 2020-21 FY 2019-20 (FY 2020-21) (FY 2020-21) Total Rs. 49.13 Rs. 42.53 91.18% 73.79% investments lakh crore lakh crore of total investments of total investments 8.6 Rural and social sector business All the life insurers* fulfilled their rural sector obligations for FY 2020-21, details of which are as under: All life insurers Private life insurers LIC Rural sector obligations 63.85 lakh policies 26.32% of total policies 21.43% of total (22.67%) policies Total lives covered under 3.82 crore 17.19% of total policies 7.96% of total social sector policies * Sahara India Life Insurance Company Limited was directed by IRDAI not to underwrite any kind of new business from 24th June 2017, issued under section 52B(2) of the Insurance Act, 1938. Therefore, Sahara India Life has not been considered for Rural and Social Sector Obligations. All the general insurance companies, including financial inclusion. Further, the Insurance Regulatory and standalone health insurers (SAHI), also fulfilled their Development Authority of India (Obligations of Insurers obligations in the rural and social sector for FY 2020-21. to Rural and Social Sectors) Regulations, 2015 stipulate General insurers underwrote a premium of Rs. 31,436 obligations for insurers in respect of rural and social sector, crore in the rural sector in FY 2020-21. Public sector which has also contributed to the development and insurers and private sector insurers underwrote 29.09% promotion of micro insurance products in India. and 70.91% respectively of the total gross premium underwritten in the rural sector. In FY 2020-21, in the life insurance segment, 10.69 lakh new micro insurance policies were issued to An insurance scheme for the health workers individuals with new business premium of Rs. 355.27 crore fighting COVID-19 under Pradhan Mantri Garib Kalyan and 1,012.99 lakh lives were covered under group micro Package (PMGKP) was launched by the Ministry of Health and Family Welfare. Policy for the scheme was issued by insurance policies with new business premium of Rs. NIACL, with effect from 30th March 2020. Due to the 4,213.06 crore. A total of 93,748 micro insurance agents continuance of the pandemic, the scheme was given were attached to life insurers at the end of FY 2020-21. multiple extensions and was last extended for the period Further, in FY 2020-21, in the general insurance segment up to 18th April 2022. 1,680 claims have been paid under (excluding standalone health insurers), 53,046 new micro the scheme till 28th February 2022 to eligible claimants in insurance policies were issued. respect of deceased COVID health warriors, out of which 1,390 claims have been paid during the current financial 8.8 Grievance redressal year. IRDAI facilitates resolution of policyholder 8.7 Micro insurance grievances by monitoring the insurers' policy of grievance redressal. It has put in place the Integrated Grievance To facilitate penetration of insurance to the lower Management System (IGMS) as an online system for income segments of population, IRDAI had made the grievance management, which serves as a gateway for Insurance Regulatory and Development Authority of India online registration and tracking of grievances as well as (Micro Insurance) Regulations, 2015. They enable a platform for distributing insurance products that are an industry-wide grievance repository that enables IRDAI affordable for the rural and urban poor and promote to monitor disposal of grievances by insurers. 277Annual Report 2021-2022 Grievances resolved during FY 2020-21 Private Public sector All life Private life All general sector LIC general insurers insurers insurers general insurers insurers Grievances 99.88 % 99.63 % 99.97% 98.33% 98.39% 98.27% resolved To provide quick relief to the individual  Well designed pension system: NPS is policyholders for addressing their complaints through out- managed through an unbundled architecture of-court system in a cost-effective, efficient and impartial involving intermediaries appointed by the Pension manner, Insurance Ombudsman Rules, 2017 were Fund Regulatory and Development Authority amended in March 2021. These provided for a complaints (PFRDA) viz. Pension Funds, Custodian, Central management system for online filing and tracking of Recordkeeping and Accounting agency (CRA), complaints and hearings through videoconference, and National Pension System Trust, Trustee Bank, also brought insurance brokers within the purview of Points Of Presence (PoP) and Annuity Service Insurance Ombudsmen, while widening the scope of Providers (ASP). It is regulated by PFRDA which complaints. is a statutory regulatory body established under the PFRDA Act, 2013, to promote old age income 9. Pension Sector security and protect the interests of NPS National Pension System (NPS) subscribers. The National Pension System (NPS) was  Dual benefit of Low Cost and Power of introduced by the Government of India to replace the Compounding: The pension wealth which defined benefit pension system by defined contribution accumulates over a period of time till retirement pension scheme in order to provide old age income grows with a compounding effect. The all-in-costs security in a fiscally sustainable manner and to channelize of the institutional architecture of NPS are among the small savings into productive sectors of the economy the lowest in the world. through prudential investments. It was made mandatory  Partial withdrawal: Subscribers can withdraw up for all new recruits to the Government service (except to 25% of their own contributions at any time armed forces) with effect from 1st January, 2004, and before exit from NPS Tier I for a maximum of three has also been rolled out for all citizens with effect from times during the entire tenure of subscription under 1st May, 2009, on voluntary basis. NPS has been adopted NPS for certain specified purposes such as by all the State governments except West Bengal, and marriage of children, purchase of house, medical most of the Central and State autonomous bodies. The treatment etc. The requirement of minimum period Scheme offers two types of accounts, namely Tier-I and under NPS for availing the facility of partial Tier-II. The Tier-I account is the Pension account, while withdrawal from the mandatory Tier-I account of the Tier-II account is a voluntary withdrawable account the subscriber has been reduced from 10 years which is allowed only when there is an active Tier-I account to 3 years from the date of joining w.e.f. 10th in the name of the subscriber. Presently, a Government August, 2017. The minimum gap of 5 years employee under NPS has to mandatorily contribute 10% between two partial withdrawals has also been of pay and Dearness Allowance (DA) and 14% of pay and removed w.e.f. 10th August, 2017. DA is contributed by the Government to the employee's Tier-I account. At exit on superannuation, subscriber would  Tax Benefits presently available under NPS be mandatorily required to invest at least 40% of the i. Tier I pension wealth in Tier-I to purchase an annuity from an Insurance Regulatory and Development Authority of India a) Subscriber is allowed tax deduction in addition to (IRDAI) regulated Insurance Company and a maximum the deduction allowed under section 80 CCD (1) of 60% of the accumulated corpus in the Tier -I account is for additional contribution in his NPS account given to the individual in lump-sum. If the subscriber exits subject to maximum investment of Rs. 50,000/- before superannuation or 60 years of age, he/ she has to under section 80CCD 1(B) of the Income Tax Act, invest at least 80% of the accumulated balance to 1961. purchase an annuity and the remaining 20% can be withdrawn as lump sum. There are a number of benefits b) To ensure parity of tax treatment between NPS available to the employees under NPS. Some of the and various retirement products such as General features are as under. Provident Fund (GPF), Contributory Provident 278Department of Financial Services V Fund (CPF), Employees Provident Fund (EPF) exposure to equity capped at 25% at the age of and Public Provident Fund (PPF), the limit of tax 35 years and tapering off thereafter (LC-25). exemption under section 10(12A) of the Income (2) Moderate Life Cycle Fund with maximum Tax Act, 1961, in respect of the amount withdrawn exposure to equity capped at 50% at the as lump sum to the extent of 40% of the total age of 35 years and tapering off thereafter (LC- accumulated balance has been enhanced to up 50). to 60% of the total accumulated balance at the closure of account. With this, the entire The existing scheme in which funds are allocated withdrawal is now exempt from income tax. by the PFRDA among the three Public Sector Undertaking fund managers based on their past performance in c) Interim/ Partial Withdrawal from NPS Tier I up to accordance with the guidelines of PFRDA for Government 25% of the contributions made by NPS subscriber employees will continue as the default scheme for both is tax free. existing and new subscribers. d) Minimum 40% of the amount is to be mandatorily 9.1 The status of NPS as on 30th November, 2021, utilized for purchasing an annuity from the Annuity is as under. Service Provider registered and regulated by the Insurance Regulatory and Development Authority and empanelled by PFRDA. Amount utilized for purchase of annuity is not taxable. Further, Sector No. of Assets Under amount utilised for purchase of annuity is subscribers(in Management(in exempted from GST. lakhs) Rs Crores) Central Government 22.44 2,08,967 ii. Tier II State Government 54.44 3,46,965 Contribution by the Government employees under Corporate 13.19 79,866 Tier-II of NPS is now covered under Section 80 C of the All Citizen Model 18.88 27,688 Income Tax Act, 1961, for deduction up to Rs.1.50 lakh NPS Lite * 41.92 4,630 for the purpose of income tax at par with the other Total 150.87 6,68,116 schemes such as GPF, CPF, EPF, and PPF provided that *(No fresh registration permitted w.e.f 01.04.2015) there is a lock-in period of 3 years.  Freedom of choice for selection of Pension Funds 9.2 Recent developments under NPS in and pattern of investmentto Government Government Sector employees as under.  Notification of Central Civil Services i. Choice of Pension Fund: Vide Government (Implementation of NPS) Rules, 2021 The CCS Notification dated 31.01.2019, the Government (Implementation of NPS) Rules, 2021, have been notified subscribers are also allowed to choose any one by the Department of Pension and Pensioners' Welfare of the pension funds including Private sector (DoPPW) on 30.03.2021 for Central Government pension funds, as in the case of subscribers in employees. The said Rules, inter alia, stipulate the the private sector. They can change their option timelines for PRAN generation, contribution upload, once in a year. However, the current provision of deduction and remittance, including exits and withdrawals combination of the Public-Sector Pension Funds and also the provision for payment of interest on delayed will be available as the default option for both deposits of NPS contributions and fixation of the existing as well as new Government subscribers. responsibility in case of delays in subscriber registration and remitting of NPS contributions. ii. Choice of Investment pattern: The following options for investment choices are offered to  Applicability of provisions of Gazette Government employees: - Notification of Department of Financial Services dated 31-01-2019 on employees of Central Autonomous a) Government employees who prefer a fixed return Bodies (CABs) - The provisions of the notification dated with minimum amount of risk have an option to 31.01.2019, regarding enhancement of employer invest 100% of the funds in Government contribution to 14%, choice of the pension fund and securities (Scheme G). investment pattern in the Tier I and payment of compensation in case of delayed or non-deposit of NPS b) Government employees who prefer higher returns contributions for any period during 2004-2012, have been have the options of the following two Life Cycle extended to the employees of CABs (covered under NPS) based schemes. vide OMs dated 26.08.2021 and 21.10.2021 issued by (1) Conservative Life Cycle Fund with maximum Department of Expenditure 279Annual Report 2021-2022 9.3 Major measures/steps undertaken to increase paperless process wherein the Subscriber will coverage under the Schemes submit the registration request through digital signature.  Expansion of NPS distribution channel: As of now 93 PoPs are distributing NPS, however, to expand  Easing the fund transfer process of Intermediaries the NPS distribution channels the following steps by using National Automated Clearing House are being taken: (NACH) -In order to overcome the challenges faced by Nodal offices and to avoid returns of i. Individual agents are being engaged for NPS contributions as well as to ease the process of distribution through Points of Presence (PoPs). contribution upload by Nodal officers, PFRDA has ii. Fintech companies like Paytm Money, ET Money, introduced NACH mandate 'as an option' under Funds India & Fisdom are being engaged for NPS which, all the nodal offices have to provide 'one- distribution time mandate registration' for auto debiting their bank accounts with the amount based on the file  Steps for pension literacy uploaded for salary contribution. The facility can also be availed by POPs/Corporates and there is i. Webinars/conference have been organised in no additional cost to avail the facility from CRA association with various trade bodies The and Trustee Bank. Federation of Indian Chambers of Commerce & Industry (FICCI), The Confederation of Indian  e-Appeal for Ombudsman -Currently, in case a Industry (CII/) PHD Chamber of Commerce and subscriber wants to file an appeal with the Industry(PHDCCI), Merchants' Chamber of Ombudsman, he/she has to file a written Commerce & Industry (MCCI). application or send the filled form to the Ombudsman's email ID. PFRDA has taken the ii. Financial literacy website has been hosted initiative of providing an online appeal portal for (www.pensionsanchay.org.in) the ease of the subscribers.  Publicity and media campaign  Exit through Aadhaar based Self-authorization by i. Media campaign is being run by PFRDA by e-NPS subscribers -PFRDA has allowed exits engaging electronic media, print media and social from NPS based on 'Self Authorization' by the media. Subscribers themselves using Aadhaar if the corpus in their Account is up to Rs. 10 lakhs 9.4 Major steps taken by PFRDA to ease the accessibility of NPS to subscribers  Annuity based on Single KYC by ASP- Facility allowed in coordination with IRDAI - Earlier,  Instant bank account verification - Penny Drop - subscribers had to fill a separate form and submit In order to resolve the issue of return of additional sets of documents with ASPs for getting remittances, to protect the interest of subscribers their Annuity. Now the ASPs are issuing annuity with timely credit of amount and for additional due based on the documents submitted/uploaded by diligence to identify the rightful beneficiary, Instant the subscribers during the submission of Bank Account Verification by 'penny drop' has withdrawal form to their Nodal office/PoPs. been adopted by CRAs, by integrating their IT system and exit framework with the Fin-tech 9.5 Initiative taken with reference to the service providers.through penny drop to identify development of North- Eastern Region and Sikkim the beneficiary and the subscribers' bank account. including projects/ schemes in operation and actual expenditure thereon  Partial Withdrawal through self-declaration - Submission of supporting documents dispensed Under NPS, the PoPs are advised to enrol with -To ease the process of partial withdrawal subscribers in NPS across the country including the north and make it simple, online and paperless in the east region. Several NPS webinars conducted for North interest of subscribers, request for partial East region in association with trade bodies and PoPs. withdrawal through self- declaration has been Under APY, Zone wise review meetings are allowed, by Instant Bank account verification conducted PAN India for review of performance of APY  eNPS for Government - A new On-boarding SPs, SLBCs/ UTLBCs with special emphasis on North- feature for Government Sector Subscribers -eNPS Eastern region by organizing regular meetings to is the online platform hosted by NSDL-CRA on popularize the scheme, handholding sessions etc. Further, behalf of NPS Trust wherein a Subscriber can trainings are imparted through webinars and offline mode register and contribute online under NPS. The to explain the features and benefits of APY scheme. process of registration through eNPS will be a 280Department of Financial Services V 9.6 Initiative undertaken for Disabled/ greenfield projects related to health/ medical Handicapped and SC/ST & other weaker section of infrastructure. The aforesaid credit guarantee the society would be provided by National Credit Guarantee Trustee Company Limited (NCGTC) to Scheduled To implement Government instructions on welfare Commercial Banks (SCBs). LGSCAS leverages of SC/ST/PWD employees, a cell has been set up in the announcement by RBI of a Special Line of PFRDA. A General Manager Grade officer has been Credit to SCBs at 4% interest for credit to the nominated as Liaison Officer for SCs/STs/PWDs. Also, a health care sector. Important features of the separate cell for welfare of OBCs has been set up in Scheme would be as under: PFRDA. A Deputy General Manager Grade officer has been nominated as Liaison Officer for OBCs. i. The Scheme would be applicable to all loans sanctioned up to 31.03.2022, or till an amount of 9.7 Initiatives relating to Gender Budgeting and Rs. 50,000 crores is sanctioned, whichever is Empowerment of Women earlier. A Committee for prevention of Sexual ii. Credit facilities will be sanctioned up to Rs. 100 Harassment at workplace, in PFRDA, is in place for crores for the project in the form of fund based receiving complaints, holding enquiry etc. in accordance and non fund based facilities. with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, and meets on quarterly basis. iii. The scheme shall provide credit guarantee of 50 10. Measures taken during COVID-19 pandemic per cent to all brownfield projects and of 75 per cent to all greenfield projects to be set up at the 10.1 Resolution Framework for COVID-19 related centres other than Metropolitan cities (8 in stressed loans number). For aspirational districts, the guarantee RBI, vide its circulars dated 5.5.2021 on cover for both brownfield expansion and Resolution Framework 2.0 for COVID-19 related stress, greenfield projects shall be 75%. has permitted lending institutions to implement resolution iv. Interest rate under the Scheme is capped at plans / restructuring in respect of eligible personal loans, 7.95% p.a. and loans to individuals for business purposes, loans to small businesses and micro, small and medium v. No Guarantee Fee shall be charged by NCGTC enterprises (MSME), while classifying them as standard. from SCBs under the Scheme. Such resolution plan /restructuring has been permitted in As informed by National Credit Guarantee Trustee respect of loans to individuals for business purposes, loans Company Limited (NCGTC), as on 26.11.2021, loans to small businesses and loans to MSMEs having amounting to Rs.276.48 crores have been sanctioned to aggregate exposure of up to Rs. 25 crores as on 98 enterprises under the scheme out of which Rs.121.49 31.3.2021, which has been enhanced to Rs.50 crores vide crores have been disbursed. RBI's circulars dated 4.6.2021. Even in respect of accounts restructured under earlier schemes, lending 10.3 Credit Guarantee Scheme for Micro Finance institutions have been permitted, as a one-time measure, Institutions (CGSMFI) to review the working capital sanctioned limits and / or drawing power based on a reassessment of the working The Credit Guarantee Scheme for MFIs capital cycle, reduction of margins, etc. without the same (CGSMFI) has been launched in June, 2021 as part of being treated as restructuring. the Economic Relief Package announced to support Indian economy in fight against COVID-19 pandemic. The 10.2 Loan Guarantee Scheme for Covid affected brief of provisions under the Scheme are as under. Sectors (LGSCAS)  It is guarantee Scheme for loans by Scheduled The Government of India vide its Cabinet decision Commercial banks (SCBs) or other Institutions dated 30.6.2021 has introduced Loan Guarantee Scheme (as decided from time to time) to NBFC-MFIs for Covid Affected Sectors (LGSCAS) with a corpus of and Micro Financial Institutions (MFIs) in the Rs. 2,000 crores for providing credit guarantee coverage country for onward lending to small borrowers. to projects under healthcare sector. The brief of provisions under the Scheme are as under.  Guarantee upto 75% for a maximum period of 3 years.  To launch Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS) with a corpus of  The Scheme operationalised w.e.f. 15.07.2021. Rs.2,000 crores to provide financial (credit) It is valid till March 31, 2022 or till guarantees for guarantee cover for brownfield expansion and an amount of Rs.7,500 crores are issued, 281Annual Report 2021-2022 whichever isearlier. financing facility for investment in viable projects relating to post-harvest management infrastructure and  The Scheme is expected to benefit around 25 community farming assets. The scheme is available for lakh small borrowers. FPOs, JLGs, SHGs, PACS, Agri-entrepreneurs, Start-up,  The Interest rate on loans from SCBs to NBFC- etc. with the facility of 3% interest subvention for loan upto MFIs and MFIs for this purpose would be capped Rs.2 crores. Operational guidelines have been issued at 1 year Marginal Cost Based Lending Rate and MoUs with Banks have been signed by DAC&FW (MCLR) + 2% p.a. and they are in readiness to provide credit to all eligible entities. As on 27.12.2021, Rs.6257 crores has been  On lending is being provided by NBFC-MFIs and sanctioned under this scheme. MFIs to small borrowers at an Interest rate which is at least 2% below the maximum rate prescribed 10.5 Animal Husbandry Infrastructure by RBI on such loans. [To illustrate, if the Development Fund (AHIDF) maximum interest rate that an NBFC-MFI can A special fund namely the Animal Husbandry charge to its eligible small borrowers works out Infrastructure Development Fund (AHIDF), with targeted to 22% p.a. as per the formula prescribed by lending of Rs. 15,000 crore from 2020-21 to 2022-23 by Reserve Bank of India (RBI) on such lending, banks has been launched by D/o Animal Husbandry and then the said NBFC-MFI shall charge 20% p.a. Dairying (DAHD). The scheme with the facility of 3% from its eligible small borrowers under the interest subvention for all eligible entities aims at scheme.] incentivising investments by individual entrepreneurs,  80% of the assistance provided by NBFC-MFIs private companies and FPOs to establish (i) the dairy and MFIs under the Scheme would be for processing and product diversification infrastructure, (ii) creation of fresh loan assets and not for meat processing and product diversification infrastructure repayment of earlier loans. and (iii) Animal Feed Plant (iv) Breed Multiplication farms for livestock (v) Technologically assisted (modern  All existing or new small borrowers (not in default technology based integrated / advanced poultry farms) for more than 90 days) within the regulatory poultry farms including purchase of parent and grand definition of micro finance as prescribed by RBI parent stock.. Operational guidelines for the scheme are eligible to avail the Scheme. issued by DAHD have been shared with all banks. Under this scheme, Rs. 1221 crore has been sanctioned, as on  No guarantee fee would be charged by NCGTC 17.12.2021. for this Scheme. 10.6 PM Formalisation of Micro Food Processing  As informed by National Credit Guarantee Enterprises Scheme (PM FME) Trustee Company Limited (NCGTC), as on 19.11.2021, loans amounting to Rs 10,000 crores A Centrally Sponsored Scheme namely PM-FME have been sanctioned under the scheme as per has been launched by M/o Food Processing Industries details as under. (Amount in Rs. crores) As Sanction by Disbursement by Sanctioned by MFI to Disbursement by MFIs reported MLIs to MFI MLIs to MFI Small Borrowers to Small Borrowers reported by reported by NCGTC as on NCGTC as on 19.11.2021 19.11.2021 No of Amount No of Amount borrowers borrowers Total 10,000 5,907.80 6,81,765 2,586.11 6,62,449 2,503.75 (MoFPI) to address the challenges faced by the micro 10.4 Agricultural Infra Fund (AIF) enterprises and to tap the potential of groups and A new Agriculture Infrastructure Fund (AIF), with cooperatives in supporting the upgradation and targeted lending of Rs.1 lakh crore by banks and Financial formalization of these enterprises. The scheme envisages Institutions from 2020-21 to 2023-24 has been launched an outlay of Rs. 10,000 crore over a period of five years by D/o Agriculture Cooperation and Farmers Welfare from 2020-21 to 2024-25 under which 2,00,000 micro food (DAC&FW) to mobilize medium to long term debt processing units will be directly assisted with credit-linked 282Department of Financial Services V subsidy. It aims to provide capital subsidy @35% of the their credit outstanding as on 31.03.2021 to eligible project cost, with a maximum ceiling of Rs.10.0 businesses who have not availed assistance lakh per unit for Individual micro food processing units, under ECLGS (ECLGS 1.0 or 2.0); credit support SHGs, etc. Operational guidelines for the scheme issued up to 40% of their credit outstanding as on by MoFPI have been shared with all banks and NABARD 31.03.2021, subject to the maximum of Rs.200 and they are in readiness to provide credit to all eligible crore per borrower, to businesses in sectors entities. Under this scheme, Rs.131 crore has been specified under ECLGS 3.0, who have previously sanctioned, as on 17.12.2021. not availed ECLGS and Incremental credit can 10.7 AtmaNirbhar Bharat Abhiyan be availed within these limits by existing ECLGS borrowers whose eligibility increased because of Hon'ble Prime Minister announced a change in cut-off date to 31.03.2021 from comprehensive AtmaNirbhar Bharat (ANB) package of 29.02.2020. Rs.20 lakh crores - equivalent to 10% of India's GDP on 12th May 2020. Following significant Agriculture-related  The validity of ECLGS i.e. ECLGS 1.0, ECLGS measures were announced as part of the ANB package: 2.0, ECLGS 3.0 & ECLGS 4.0 have been 10.7.1 Emergency Credit Line Guarantee Scheme extended upto 31.03.2022. Last date of (ECLGS) disbursement under the scheme has been extended to 30.06.2022.  The Emergency Credit Line Guarantee Scheme (ECLGS) was announced as part of the  As informed by National Credit Guarantee Trustee AatmaNirbhar Bharat Package in 2020 with the Company Limited (NCGTC), as on 30.12.2021, objective to help MSMEs/small businesses to loans amounting to Rs 3.01 lakh crores have been meet their operational liabilities and resume sanctioned under the scheme. businesses in view of the distress caused by the COVID-19 crisis, by providing Member Lending 10.7.2 Additional Emergency Working Capital Funding Institutions (MLIs) 100 per cent guarantee against for farmers through NABARD any losses suffered by them due to non-repayment i. New front loaded special refinance facility of of the ECLGS funding by borrowers. An overall Rs.30,000 crores sanctioned by NABARD during ceiling of Rs. 3 lakh crores of guarantees was COVID-19 to RRBs, Cooperative Banks and MFIs approved. during 2020-21.  Since its launch, ECLGS has undergone extensions and changes keeping in view the ii. Of Rs.5000 crores allocated to NABARD by RBI impact of Covid on various sectors of the economy under SLF for smaller NBFCs and NBFC-MFI, and emerging needs. All these changes were Rs.1717 crore has been disbursed by NABARD made within the overall ceiling of Rs. 3 lakh crores till 30.11.2021. guarantee cover. iii. During 2021-22, RBI has provided an amount of  The design of ECGLS provides flexibility to quickly Rs.25000 crores under SLF - 2 to NABARD for respond to emerging needs, as has been meeting the liquidity requirements of the evidenced by the introduction of ECLGS 2.0, 3.0 agricultural and rural sector during the pandemic. and 4.0 as well as changes from time to time, all As on 24.12.2021, Rs.24,399 crores has been of which were within available headroom of Rs 3 disbursed out of this special facility. lakh crores. Keeping in view the changes announced in the scheme and the continuing 10.7.3 Rs 2 lakh crore credit boost to the farm sector adverse impact of COVID on businesses, it has by covering 2.5 crore PM-KISAN beneficiaries under been decided to enhance the existing overall Kisan Credit Card (KCC) Scheme. guarantee limit of Rs. 3 lakh crores to Rs. 4.50 lakh crores. Under the PM Atmanirbhar Bharat package, a special KCC saturation drive is being undertaken to cover  Further, with a view to support businesses 2.5 crore farmers under the KCC scheme with a credit impacted by the second wave of COVID 19 boost of Rs.2 lakh crores. As on 24.12.2021, a major pandemic, certain modifications have been made milestone has been achieved by covering over 2.74 crore in the Scheme, which inter-alia include, additional farmers with a credit limit of Rs.2.94 lakh crores under credit support of upto 10% of total credit the ongoing KCC Saturation Drive. Out of 2.74 crore KCC, outstanding as on 29.02.2020 or 31.03.2021, whichever is higher, to existing borrowers under 15.1 lakh KCC has been sanctioned to Animal Husbandry, ECLGS 1.0 & 2.0; credit support of upto 30% of Dairy & Fisheries farmers. 283Annual Report 2021-2022 10.7.4 Rs.1500 crore Interest Subvention for MUDRA- i. All PSBs/FIs/PSICs were requested on Shishu Loans. 08.02.2017 to ensure that complainants are informed about the incomplete details in the As approved earlier, 2% Interest Subvention for application by sending a reply to the complainant prompt payees of Mudra-Shishu Loans for a period of 12 and a copy of the reply be uploaded on months will be provided by the Government to eligible CPGRAMS. borrowers. An amount of Rs.775 crore has been released additionally to SIDBI as part of the first tranche for ii. As per directions of DARPG, necessary immediate release of interest subvention benefit to the instructions were issued to PSBs/FIs/PSICs on Member Lending Institutions (MLIs). An amount of 09.03.2017 that public grievances are required Rs.1,232 crores has been allocated in the first to be resolved within 1-2 months from the date Supplementary Demands for Grants. As on 24.12.2021, of its initiation. more than Rs.598.53 crores has been disbursed by SIDBI to MLIs for onward credit of subvention amount into iii. Grievance Redressal Mechanism and contact borrower's accounts. details of Nodal Officers of all PSBs updated on DFS website. 10.7.5 PM Street Vendor's Atmanirbhar Nidhi Scheme (PM SVANidhi) iv. All PSBs/IRDA/PFRDA/RBI/PSICs were requested on 08.09.2017 to ensure prompt It is a Central Sector Scheme implemented by resolution of all pending grievances including the Ministry of Housing and Urban Affairs (MoHUA) with those referred by DPG and strengthen their the objective of providing relief to street vendors affected grievance redressal mechanism and carry out by Covid-19 lockdown. Launched on June 01, 2020, the regular monitoring/review at senior level. Scheme envisages empowering street vendors by not only extending loans to them but also for their holistic economic In the Department of Financial Services, a large development. The Scheme facilitates working capital loan number of grievances/complaints concerning Banking and up to Rs.10,000 with a 1-year tenure and free onboarding Insurance Sectors are received directly from citizens, both of beneficiaries on Digital payment platforms. To promote online and by post. The postal grievances are also digitized digital transactions, cash back up to Rs. 1,200 per annum and processed through CPGRAMS for its onward is available under the Scheme. An interest subsidy @ 7% transmission to the designated Nodal Officers i.e. Deputy per annum is paid quarterly on timely repayment to General Manager/General Manager (DGM/GM) of promote borrowing by street vendors. Beneficiaries are concerned Public Sector Banks/Public Sector Insurance also eligible for 2nd tranche of loan upto Rs.20,000 with Companies (PSBs/PSICs) for its redressal within a 18 months tenure after timely repayment of the 1st tranche maximum time limit of 45 days. All organisations under loan. As on 13.01.2022, 32,27,797 loan applications have DFS have made efforts to maximise the use of technology been sanctioned; out of which 28,58,321 applications have for reducing the grievance redressal time to one month been disbursed. from the existing 45 days. These directions are followed 11. Miscellaneous by all organisations under the Department of Financial Services. Action taken reports are uploaded on the system 11.1 Representations from SCs, STs, OBCs and and a scanned copy of the reply is provided to the PWDs. complainant as pdf file that can be viewed by the 11.1.1 Details of representations from SCs/STs/OBCs complainant online. Replies through post are also sent and Persons with Disabilities (PWDs) in Public Sector to those complainants who have lodged their grievances Banks / Financial Institutions and Insurance Companies physically. is at Annexure I & II respectively. The Banks and Insurance Companies have 11.1.2 Disposal of Public Grievances grievance redressal mechanism in place and are also hosted on their respective websites for information and Timely redressal of public grievances relating to usage by the customers. The first level of grievance banking and insurance sectors is an important tool towards redressal is Branch Manager in Banks and Insurance upgrading the quality of customer service in this very Companies followed by Zonal Managers and then General crucial segment of financial sector. Department of Manager (Customer Care) in Head Office. The grievances Administrative Reforms and Public Grievances (DARPG) concerning private banks and private insurance has established CPGRAMS (Centralised Public Grievance companies are resolved through Reserve Bank of India Redressal and Monitoring System), (an online web-based (RBI) and Insurance Regulatory and Development system), to resolve public grievances. To ensure that individual grievances are resolved within a maximum time Authority (IRDA) respectively. The PSBs have also limit of 45 days and the petitioners are informed of the established Ombudsman for settlement of grievances. action taken, the following instructions have been issued to PSBs and Insurance Companies. 284Department of Financial Services V Grievances received from PMO are attended Ombudsman Scheme for Non-Banking Financial promptly and present status is being uploaded on portal Companies, 2018 and (iii) the Ombudsman Scheme for by concerned Banks/ Insurance companies. As per Digital Transaction, 2019. In addition to integrating the existing arrangement, the number of grievances are on three existing scheme also includes under its ambit Non- increasing side. Most of the grievances are related to Scheduled Primary Co-operative Banks with a deposit size issues related to ATM, Pension, Loan Applications, Bank of Rs.50.00 crores and above. The scheme adopts "One transactions and fraud cases, which can be easily handled Nations One Ombudsman mechanism. In case the by Bank / Insurance officers. Grievances are monitored petitioners are not satisfied with the kind of disposal by regularly and followed by periodical reminders through the concerned Banks/Insurance Companies, they can file emails to the concerned Nodal Public Grievance Officers their complaints with the Banking Ombudsmen concerned in Banks and Insurance Companies and concerned for the settlement of their grievance through mediation Sections in the Department. and passing of awards. The Reserve Bank of India (RBI) has As per CPGRAMS database the details of receipt, launched 'The Reserve Bank Integrated Ombudsman disposal and pending grievances during the period Scheme, 2021' on 12.11.2021. The Scheme integrates 01.04.2021 to 30.11.2021 in respect of banking and the existing three Ombudsman Scheme of RBI namely - insurance sectors are as follows: (i) the Banking Ombudsman Scheme, 2006 (ii) the Sector Brought Received Disposed Pending as % of Disposal Less than M o r e than Forward on as on 45 days 45 days 30.11.2021 30.11.2021 old old Banking 9034 105818 107880 6972 93.93% 6871 600 Insurance 519 19982 17831 2670 86.97% 3278 64 Total 9553 125800 125711 9642 92.88% 10149 664 Status of public grievances on PG Portal for the period 01.04.2021 to 30.11.2021 is as under. Total Grievances Grievances Balance % of disposal as on Average time of Received Disposed Off 30.11.2021 disposal 135353 125711 9642 92.88 17 days The present status of public grievances for the security schemes launched by the Government is as period 01/04/2021 to 30/11/2021 relating to social under. Name of the scheme Total Grievance Grievance % of Grievance disposed pending disposal Atal Pension Yojna 68 67 1 98.53 Pradhan Mantri Jan Dhan Yojna 236 210 16 88.98 Pradhan Mantri Mudra Yojna 1193 1141 52 95.64 Pradhan Mantri Suraksha Bima Yojna 214 205 9 95.79 Pradhan Mantri Jeevan Jyoti Bima 448 418 30 93.30 Yojna 285Annual Report 2021-2022 The present status of public grievances received from PMO for the period 01.04.2021 to 30.11.2021 is as under: Name of the Total Grievances Grievances % of disposal Sector Grievances disposed pending Banking 28552 27077 1475 94.83 Insurance 4058 3834 224 94.48 As per CPGRAMS database the details of receipt, 01.04.2021 to 30.11.2021 in respect of banking and disposal and pending grievances during the period insurance sectors for Covid 19 grievances are as follows: Sector Brought Received Disposed Pending as % of Less More Forward on Disposal as than 3 than 3 30.11.2021 on days days old 30.11.2021 old Banking 119 6585 6569 135 97.98% 42 93 Insurance 18 1668 1660 26 98.46% 16 10 Total 137 8253 8229 161 98.08% 58 96 In January 2021, DARPG has started Appeal Authorities assigning specific organizations (PSBs/ Mechanism in CPGRAMS wherein the customers who PSICs/FIs/IRDA/RBI) under control of DFS for are not satisfied with the resolution of their grievance can monitoring and disposing of the appeals. appeal for review by higher Authorities. Since there was provision of creation to Sub-appellate authority, a Sub- As per CPGRAMS database (Appeal Portal) the appellate authority was created in all PSBs/PSICs/FIs/ details of receipt, disposal and pending appeal during IRDA/RBI and at each Section level in DFS. In view of the period 01.04.2021 to 30.11.2021 in respect of large number of appeals, Directors/Deputy Secretary/Joint banking and insurance sectors for Appeal are as under. Director in DFS have been nominated as Appellate Sector Brought Received Disposed Pending as % of Disposal Less than More Forward on as on 30 days old than 30 30.11.2021 30.11.2021 days old Banking 2524 9332 9949 1907 83.92% 527 1380 Insurance 606 1926 2435 97 96.17% 73 24 Total 3 1 30 11258 12384 2004 86.07% 600 1404 to be involved in the scam and (c) a reasonable and 11.2 Vigilance equitable distribution of the property. 11.2.1 Organisations under Department of Financial The Special Court has been sanctioned four posts Services of judges. To support their day to day functioning, the (a) Special Court office of the Special Court functions with a staff of 49 officials at various levels. These are renewed on a year- The Special Court (Trial of offences relating to to-year basis by DFS, Ministry of Finance with the Transactions in Securities) Act, 1992 came into force on approval of IFU. As on 27.1.2022 a total number of 06.06.1992. The Act was necessitated by reasons of the pending matters in the Special Court is 77 which includes, unprecedented situation wherein very large amount of Suits and Special Cases (Criminal). public monies had been siphoned off into private pockets. The legislature sought to set up a Special Court through (b) Office of the Custodian this Act for (a) speedy trial of offences (b) immediate To assist the Custodian in discharging the duties attachment and freezing of all assets of parties suspected under the Special Court (TORTS) Act, 1992, at present 286Department of Financial Services V there are three offices - with headquarters at New Delhi, 11.3 Legislative office at Mumbai mainly attending to the Court matters on 11.3.1 The Factoring Regulation (Amendment) Act, day to day basis and third one at Bangalore mainly to 2021 deal with matter relating to Fairgrowth Financial Services Ltd (FFSL) and Fair Growth Investment Ltd (FGIL), The Factoring Regulation (Amendment) Act, 2021 Bangalore based notified entities. Office of the Custodian has received the assent of the President on 07.08.2021 has been sanctioned 29 posts including Custodian and and was published in the Gazette of India on 09.08.2021. two posts of Directors. These are renewed on a year-to- The provisions of the Act have come into force with effect year basis by Ministry of Finance, DFS with the approval from 23.08.2021. This Act is pursuant to the Hon'ble of Integrated Finance Unit (IFU). Finance Minister's announcement in the Budget Speeches of 2019-20 and 2020-21 that necessary amendments will Since inception, a total of 13545 cases were filed be made to the Factoring Regulation Act 2011 to enable in the Special Court, which were defended/contested by NBFCs to extend invoice financing to the MSMEs through the Custodian and 13468 cases have been disposed of TReDS, thereby enhancing their economic and financial by the Special Court, leaving a balance of 77 cases for sustainability. The major amendments made are- their disposal as on 31st December, 2021. Similarly, a total of 514 appeals were filed in the Supreme Court, of  One major amendment is to permit all NBFCs which 473 cases have been disposed of, leaving 41 cases other than only NBFC-Factors (those whose pending (31st December, 2021). As on 31st December, principal business is factoring) to do factoring 2021, while the total outstanding liabilities of notified parties business as well, thus increasing the NBFC were for Rs.36,812 crores, the assets were only to the ecosystem for factoring from only 7 NBFCs tune of Rs.4988 crores, out of which Rs.1118 crores are currently to well over 9500 NBFCs potentially, thus non-recoverable assets. Till 31st December, 2021, widening the scope of financiers and permitting Rs.10,934 crores (approx.) has been recovered by the all NBFCs to do factoring business and participate Custodian and out of these assets, Rs.6,946 crores in on TReDS for discounting the invoices of MSMEs; cash has been distributed to Income Tax Department, Banks etc.  Another major amendment is to permit TReDS entities to act as agents for financiers for filing of Out of a total of 23.67 crore attached shares, registration of charge with CERSAI on behalf of 16.62 crore shares have been sold and a sum of the factors using the platform, thus bringing in Rs.3,372.14 crores realized. Out of the remaining 7.05 operational efficiency. Simultaneously, it is crore shares with current value of Rs.2849 crores, 5.52 proposed to reduce the time period for registration crore are traded shares and 1.53 crore are untraded of invoice and satisfaction of charge upon it, in shares. A total of 177 immovable properties of notified order to avoid dual financing; parties had been attached by the Custodian, out of which, 148 have been sold/disposed to realize a value of Rs.173  Other minor amendments include amending the crores. A sum of Rs.6.49 crore has been realized by sale definitions of "assignment", "factoring business" of jewellery items through Customs department / SBI. and "receivables", so as to bring them in Cash balance in the attached current accounts and fixed consonance with international definitions, to insert deposits of notified parties as on 31st December, 2021 is a new definition of TReDS, and to empower RBI Rs.933.54 crores. to make regulations with respect to factoring business. 11.2.2 Performance 11.3.2 The Deposit Insurance and Credit Guarantee  The Vigilance Division of the Department monitors Corporation (Amendment) Act, 2021 the progress on disposal of complaints received from various sources and pendency of disciplinary  Last year, after the landmark Budget / vigilance cases regularly and meeting with CVOs announcement of 2020, protection to depositors is undertaken in this Department at appropriate in banks had already been enhanced by DICGC, intervals. which increased the deposit insurance cover from Rs. 1 lakh to Rs. 5 lakh in February 2020.  Instructions have been issued from time to time Thus, each depositor is insured up to Rs. 5 lakh as and when any gap in the system is observed per depositor per bank. to strengthen the preventive vigilance in these organisations.  In view of numerous recent cases of banks, especially cooperative banks, being unable to  Vigilance Awareness Week was observed from fulfil their obligations towards their depositors, 26.10.2021 to 01.11.2021. the continuing concern was that when various restrictions / moratorium, etc are imposed on a 287Annual Report 2021-2022 bank by RBI under different provisions of the  Further, the Board of DICGC has approved the Banking Regulation Act, 1949, then in such amendments to the Regulations vide resolution cases, despite intervention by RBI and the dated 13.09.2021. After obtaining the necessary Central Government, genuine depositors approvals as per the Act, the amendment to the continue to face serious difficulties on account Regulations have been notified in the Official of restrictions on them from accessing their Gazette effective from 22.09.2021. deposits. Depositors are unable to access their own money (which by very definition should be 11.4 Debt Recovery Tribunal payable on demand) even to the extent of the  e-office:- e-office software has been enabled on insured value, despite deposit insurance being cloud for the use by the DRTs/DRATs. Order has in place. This can continue for extended periods of time which can be very long, even upto 8-10 been placed with NIC and their team is years in the case of liquidation, leading to implementing the project in DRTs and DRATs. hardship for depositors.  e-DRT:- The e-DRT project to digitize the  Hon'ble Finance Minister in the Budget Speech functioning of all 39 Debts Recovery Tribunal 2021 made announcement that amendments (DRTs) and 5 Debts Recovery Appellate would be moved so as to streamline the Tribunals (DRATs) has been implemented by the provisions, as this would help depositors of banks Department of Financial Services. The e-DRT that are currently under stress. project has automated the full cycle of workflow of DRATs and DRTs, which has brought  Hence, the DICGC Act, 1961 has now been transparency and increased their efficiency. The amended to provide that even if a bank is temporarily unable to fulfil its obligations and meet project has ensured online availability of case its liabilities to depositors due to restrictions / and access to e-filing and e-payment. MIS reports moratorium imposed on it, depositors can get are being generated for effective monitoring and easy and time-bound access to their deposits to functioning of DRTs/DRATs. MIS reports like the extent of deposit insurance cover through pending cases in DRTs of Public Sector Banks interim payments by DICGC. A clear-cut timeline (PSBs) and appeals filed, disposed and of maximum of 90 days has been provided for pendency in DRATs have been added. interim payment to depositors. If RBI finds it expedient to finalize a scheme (eg.  DRTs have performed well and have successfully amalgamation, reconstruction, etc.) to rescue the recovered substantial amount for the banks. As bank, timeline can be extended for maximum 90 per provisional data (mentioned below), made days more. available by all DRTs, a total 7590 Original Applications (OA) cases involving an amount of  The Deposit Insurance and Credit Guarantee Rs 26213.85 crore were disposed of and further Corporation (Amendment) Act, 2021 has total 3178 Securitization Applications (SA) cases received the assent of the President on involving an amount of Rs 27020.62 crore were 13.08.2021 and was published in the Gazette of disposed off during the period 1.4.2021 to India on 13.08.2021. The provisions of the Act 30.11.2021. have come into force with effect from 01.09.2021. Year Details of Disposed of cases during the year No. of A m o unt involved in No. of Amount involved in OA# cases OA cases SA@ cases SA Cases disposed of (in Rs. crores) disposed of (in Rs. crores) 2021-22 7590 26213.85 3178 27020.62 # Original Applications filed by Creditors under the RDB Act,1993 @ Applications filed by Borrowers/ aggrieved persons against direct action for recovery under the SARFAESI ACT, 2002. 288Department of Financial Services V  Online Hearings: Video Conferencing (VC) links National Electronic Fund Transfer (NEFT) System and were got provided to DRATs/DRTs through NIC e-Kuber System of RBI have been declared as protected w.e.f. 29.4.2020, to enable online hearing of systems by this Department. urgent cases during the COVID -19 outbreak. Up  Website security & quality audit to 31.10.2021, 2,95,993 online hearings were held through VC. Web Application Security Audit of this Department's Website, which is conducted annually has 11.5 Information Technology and Cyber Security been completed by Indian Computer Emergency Key initiatives of the Department of Financial Services in Response Team (CERT-In) empanelled auditor and the the year 2021-22 are as below: certificate of the same has been issued to this Department. Website quality Certification of this  Identification of Critical Information Department's website [under E-Government Infrastructure in financial sector. Development Index (EGDI) exercise], conducted every In the Information Technology Act 2000, Critical three years as per Guidelines for Indian Government Information Infrastructure (CII) has been defined as the Websites (GIGW) requirement was undertaken by computer resource, the incapacitation or destruction of Standardisation Testing and Quality Certification (STQC) which, shall have debilitating impact on national security, and the certificate on the same was issued to this economy, public health or safety. National Critical Department. Information Infrastructure Protection Centre ("NCIIPC"),  Cyber Crisis Management Plan is the national nodal agency in respect of Critical Information Infrastructure Protection. With a view to The purpose of Cyber Crisis Management Plan identifying CII in the financial services sector, this (CCMP) is to establish the strategic framework and Department coordinates with Regulators (Reserve Bank actions to prepare for, respond to and begin to coordinate of India, Insurance Regulatory and Development Authority recovery from a cyber-incident. The plan is derived from of India & Pension Fund Regulatory and Development guidance framework of the CCMP prepared by CERT-In Authority) for identifying and notification of critical and Ministry of Electronics and Information Technology infrastructure of regulators as also its regulated entities. (MeitY). CCMP has been put in place in this Department To streamline the process of identification of CII within in October 2020 and had been reviewed and updated financial services sector and to build a clear roadmap and periodically. pipeline for identification of CIIs in banking, insurance and 11.6 Audit Paras pension sector, a Standard Operating Procedure (SOP)has been put in place, in consultation with NCIIPC. A summary of Audit observations made available As of now, Real Time Gross Settlement (RTGS) System, by the Office of C&AG pertaining to DFS is at Annexure-III. 289Annual Report 2021-2022 290Department of Financial Services V 291Annual Report 2021-2022 292Department of Financial Services V 293 III eruxennA secivreS laicnaniF fo tnemtrapeDChapter - VI Department of Public Enterprises Department of Public Enterprises (DPE) 1. Public Enterprises Survey 2.1.1 Chairperson cum Managing Director: - 1.1 Public Enterprises Survey Appointment of CMD on the Board of CPSE is done by concerned administrative Ministry on the basis of The Department of Public Enterprises brings out the recommendations of Public Enterprises Selection Board Public Enterprises Survey on the performance of Central (PESB) after obtaining approval of competent authority Public Sector Enterprises (CPSEs), which is laid in the and after completing due formalities in this regard. Parliament every year. 2.1.2 Government Directors: - As per PE Survey 2020-21 (Provisional) there were 389 Central Public Sector Enterprises under the administrative The Government Directors are generally senior officers control of various Ministries/ Departments as on of the Government of India, State Government(s) or other 31.3.2021. Out of 389 CPSEs, 255 are in Operation. Out Government agencies who are nominated to the Boards of 255 operating CPSEs as many as 177 CPSEs showed of CPSEs by the concerned administrative Ministries in profit during 2020-21, 77 CPSEs incurred losses during ex-officio capacity. The dual role of a Government Director the year, and 1 CPSE has no profit no loss. The ‘net profit’ is clearly demarcated i.e. as a Director of the company of 177 profit making CPSEs was `1,89,320 crore in 2020- and representative of the Government. As Director of the 2021. The ‘net loss’ of 77 loss making CPSEs stood at company, they are bound to exercise due diligence and `(-)31,058 crore during the year. The overall net profit of act in the best interest of the company keeping in view the 255 operating CPSEs increased by 69.48% to `1.58 the provisions of the Companies Act 2013. Government lakh crore in 2020-21 from `0.93 lakh crore in 2019-20. being the major shareholder in CPSEs, they are also The contribution of CPSEs to the Central Exchequer required to protect its interest. In doing so, they can take increased by 31.14% to `4.96 lakh crore in 2020-21 as formal instructions from the Government on critical issues compared to previous year of `3.79 lakh crore. and voice them in the meetings of the Board of the company. They are required to provide timely feedback A comparison of performances of CPSEs during 2020- on decisions taken by the company to their administrative 21 vis-a-vis the previous year i.e., 2019-20, is at Ministry/Department/organization. Annexure-2. In respect of the matters having substantial financial and 2. Organisation and Autonomy of CPSEs other consequences to the Government (a) as a shareholder and (b) on the policies of Government arising The endeavour of the Government is to make Central in the Board meetings, the Government Director is Public Sector Enterprises (CPSEs) autonomous Board required to escalate them to the concerned Ministry and managed companies. Under Articles of Association, the take their advice to formally prepare a view point of the Board of Directors of CPSEs enjoys autonomy in respect Ministry and present the same in the Board of Directors of recruitment, promotion and other service conditions meeting. The Government Director should also regularly of below board level employees. The Board of Directors sensitize the Board about the relevant Government of a CPSE exercises delegated powers subject to broad Guidelines (including DPE Guidelines) and compliance policy guidelines issued by Government from time to time. of the same. 2.1 Structure of Boards of CPSEs: If the Board of a CPSE decides contrary to the The Board of Directors of CPSEs essentially consist of Government policy, the Government Director should voice three types of Directors namely Government Directors, the concern of the Government and get his/her dissent Functional Directors and Independent (Non-Official) or disagreement recorded in the Minutes of the Board Directors. The Boards are headed by a Chairperson cum meeting and report the same to the Ministry/Department. Managing Director. As per the extant guidelines the The Government Director is required to submit a quarterly number of functional Directors should not exceed 50% report on the issues deliberated by the Board, which in of the actual strength of the Board and the number of his/her view merit attention of the Government and raise Government nominee Directors shall be restricted to a alerts when things are not happening as expected in the maximum of two. In case of listed CPSEs with executive company. chairman, the number of non-official Directors shall be 2.1.3 Functional Directors: at least 50% of the Board strength. In case of unlisted and listed CPSEs with non-executive chairman, at least The functional directors are executive heads of the one-third of the Board Members shall be non-official concerned functional areas of a CPSE and perform their Directors. executive role in the respective fields allotted to them. 295Annual Report 2021-2022 viz Operations, Finance, Marketing, Human Resources giants. The Boards of such CPSEs have been delegated etc. The functional Directors are appointed on the Boards enhanced powers in the areas of (i) capital expenditure, of CPSEs by the concerned administrative Ministry on (ii) investment in joint ventures/subsidiaries, (iii) mergers the basis of recommendations of Public Enterprises & acquisitions, (iv) human resources management, etc. Selection Board (PESB) after obtaining approval of During the year 2021-22, one CPSE, namely, Power competent authority and after completing due formalities in this regard. PESB is under the administrative Finance Corporation was granted Maharatna status. jurisdiction of Department of Personnel & Training. PESB 2.3 Navratna Scheme issues the advertisement, shortlists candidates and holds selection interviews for selection to the posts of functional The Government had introduced the Navratna Directors. The functional Directors are appointed for a scheme, in 1997, to identify Central Public Sector tenure of 5 years or till their superannuation whichever Enterprises (CPSEs) that had comparative advantages is earlier. and to support them in their drive to become global giants. 2.1.4 Non-Official (Independent) Directors: - Under this scheme, the Boards of Navratna CPSEs have also been delegated autonomy in the areas of enhanced The presence of Non-Official Directors (NoDs) on the Boards of CPSEs is important for sound Corporate powers in the areas of (i) capital expenditure, (ii) Governance as their constructive role is essential for investment in joint ventures/subsidiaries,(iii) mergers & smooth and transparent functioning of the company. The acquisitions, (iv) human resources management, etc. NoDs play an important role in various committees of Boards viz. Audit Committee, Nomination & 2.4 Miniratna Scheme Remuneration Committee, CSR Committee etc. In October 1997, the Government had decided 2.1.4.1 The proposals for appointment of Non-Official to grant enhanced autonomy and delegation of financial Directors (NoDs) on the Boards of CPSEs are initiated powers to some other profit-making companies subject by the concerned administrative Ministry which submits to certain eligibility conditions and guidelines to make a panel of names to DPE with the approval of their them efficient and competitive. These companies, called competent authority. DPE places such proposals before Miniratnas, are in two categories, namely, Category- I the Search Committee, which presently consists of Secretary (DoPT) as Chairperson, Secretary (DPE), and Category-II. Secretary of the Administrative Ministry/ Department of 2.5 The salient features of Maharatna, Navratna & the concerned CPSE and 2 non-official Members. The Miniratna scheme and list of these CPSEs are provided concerned Administrative Ministry/ Department appoints the Non-Official Director on the basis of at Annexure-4 and Annexure-5 respectively. recommendations of Search Committee after completing 2.6 Performance Appraisal of Board Level due formalities in this regard and after obtaining the Executives of CPSEs: approval of competent authority. The non-official Directors are appointed for tenure of 3 years. Details of 2.6.1 DPE has laid down the guidelines for annual the qualifying standards for being eligible to be appointed performance appraisal of functional Directors of CPSEs as NoD is at Annexure-3 which, inter-alia, prescribe the format, time schedule, 2.2 Maharatna Scheme components of Annual Performance Appraisal Reports (APARs) and their relative weight, channel of submission, 2.2.1 The main objective of the Maharatna scheme which was introduced in 2010 is to empower mega etc. The performance assessment of functional Directors CPSEs to expand their operations and emerge as global of CPSEs is determined in the following manner: Designation Weightage MOU Targets Personal attributes Total score/ flowing from and functional rating MOU assigned competencies of to Directors the officer Chairman cum Managing 75 - 25 100 Director (CMD) Functional Director 40 35 25 100 296Department of Public Enterprises 2.6.2 Channel of Submission: Channel of submission of APAR of Board Level Incumbents of CPSE is generally as under: Sl Officer whose Reporting Authority Reviewing Accepting No. PAR is to be Authority Authority written 1 Executive Secretary Admin. Minister Incharge Minister Incharge Chairman/CMD/MD Ministry/ Departments 2 Functional Directors Executive Secretary Admin. Minister Incharge Chairman/CMD/MD Ministry/Departments 3. Wage Policy and Manpower Rationalization 3.2.2 Pay Revision for employees of CDA pattern in CPSEs: 3.1 The Department of Public Enterprises (DPE) functions as the nodal Department for policy relating to For the employees of CPSEs following the CDA pattern, pay revision of CPSE executives at Board as well as below DPE vide OM dated 17.08.2017 issued guidelines for Board level and non-unionized supervisors. DPE also revision of pay scales and allowances w.e.f. 01.01.2016. issues guidelines for wage settlement negotiations in case The benefit of pay revision is allowed to the employees of workmen in CPSEs. The Department renders advice of those CPSEs that are not loss making and are in a to the Administrative Ministries/ Departments and CPSEs position to absorb the expenditure on account of pay in matters relating to revision in pay scales of executives revision from their own resources without any budgetary and also for the wage policy negotiations of workmen. support from the Government. Further, DPE vide OMs The CPSEs are largely following the Industrial Dearness dated 21.05.2018 and 04.07.2019 conveyed the Allowance (IDA) pattern of scales of pay. However, in some Government decision on allowances applicable to CDA CPSEs, Central Dearness Allowance (CDA) pattern of employees of CPSEs. scales of pay is also followed. DPE issues DA orders in respect of IDA employees on quarterly basis; and for CDA 3.2.3 Wage Revision for Workmen under IDA employees of CPSEs on six monthly basis. pattern in CPSEs: 3.2 Pay Revision for employees of CPSEs: DPE has issued policy guidelines for the 8th Round of Wage Negotiations with unionized workmen of CPSEs 3.2.1 Pay Revision for Executives and non- (effective from 01.01.2017) vide its OM dated 24.11.2017. unionized Supervisors of IDA pattern in The validity of the wage negotiation as per para 2(xi) of CPSEs: DPE OM dated 24.11.2017 would be minimum period of 3.2.1.1 The Third Pay Revision Committee (PRC) was five years for those who opted for a five-year periodicity constituted under the Chairmanship of Justice (Rtd) Shri and for a maximum period of ten years for those who Satish Chandra to consider and recommend pay scales have opted for a ten-year periodicity of wage negotiation for Board and Below Board level executives and non- w.e.f. 01.01.2017. unionized supervisors of CPSEs under IDA pattern of pay scale. Based on the recommendations of the Third 3.3 Guidelines recently issued: PRC and Government’s decisions thereon, the revised 3.3.1 Enhanced DA rates for employees of CDA pay pay scale guidelines effective from 1st January, 2017 scales from 17% to 28% and subsequent revision thereof were issued vide DPE OMs dated 03.08.2017, to 31% with effect from 1st July 2021 were notified. 04.08.2017 and 07.09.2017. Similarly, Industrial DA rates were also revised for 3.2.1.2 The revised pay scales and allowances employees of the 2017/2007/1997/1992 & 1987 IDA pay recommended by third PRC were based on the basic scales of CPSEs. premise of affordability. These pay scales and allowances are to be implemented subject to the condition that the 3.3.2 Guidelines regarding payment of PRP in absence additional financial impact in the year of implementing of Independent Director, were issued by vide OM dated the revised pay- package for Board and Below Board 01.09.2021. level Executives and Non-Unionized Supervisors should 3.3.3 Guidelines regarding calculation of gratuity & not be more than 20% of the average Profit Before Tax cash payment in lieu of leave for employees who retired (PBT) of the last three financial years preceding the year from CPSEs during period from January, 2020 to June, of implementation. All the expenditure on this account is 2021 were issued vide DPE OMs dated 13.10.2021 & to be met by the CPSE implementing the revised pay 25.10.2021 for employees following CDA & IDA pay scales scales & allowances and no budgetary support is provided by the government. respectively. 297Annual Report 2021-2022 4. Categorisation of CPSEs Administrative Ministry/Department and submitted to DPE. The latter examines such proposals in consultation 4.1 The Public Sector Enterprises are categorized with the Public Enterprises Selection Board (PESB) and into four Schedules namely ‘A’, ‘B’, ‘C’ & ‘D’. The then the approval of Minister In-charge is obtained through categorization of CPSEs has implications mainly for Cabinet Secretary. organizational structure and salary of Board level incumbents of the concerned CPSE. It also plays a role 5. Monitoring and Evaluation in grant of autonomy to the Boards of CPSEs under 5.1. Memorandum of Understanding (MoU): ‘Ratna’ scheme. 5.1.1. The Government of India introduced the system 4.2 The initial categorization of CPSEs in the mid- sixties was made on the basis of their importance to the of MoU in the year 1986, based on recommendations economy and complexities of their problems. Over the given by Arjun Sen Gupta Committee report (1984). The years the Department of Public Enterprises has evolved report recommended that the Central Public Sector norms for the purpose of categorization/re-categorization Enterprises (CPSEs) should enter into agreements with of CPSEs. Categorization is based on both quantitative their Administrative Ministries for five years, with progress factors like investment, capital employed, net sales, profit to be reviewed annually. MoU is an agreement between before tax, number of employees and units, capacity the Administrative Ministries/ Departments and the addition, revenue per employee, sales/capital employed, management of CPSE. CPSEs are assigned a set of capacity utilization, value added per employee and targets and their performance is evaluated at the end of qualitative factors such as national importance, the year against these pre-decided targets. complexities of problems being faced by the company, 5.1.2. Scope: All CPSEs (Holding as well as level of technology, prospects for expansion and Subsidiaries) are required to sign a MoU. The holding diversification of activities and competition from other CPSEs sign the MoU with their Administrative Ministries/ sectors etc. The other factors, wherever available, relate Departments, while the subsidiaries sign the MoU with to share price, MoU ratings, Maharatna/Navratna/ their respective holding companies. The table below Miniratna status and ISO certification. In addition, the depicts year-wise data of MoU signed over the past 10 factor relating to the critical/Strategic importance of the years. The number of MoU signing CPSEs has decreased CPSE is also taken into account. At present there are 69 over the period due to various reasons such as the closure Schedule ‘A’, 69 Schedule ‘B’, 44 Schedule ‘C’ and 5 of CPSEs; merging of the subsidiaries with holding Schedule ‘D’ CPSEs. The Schedule-wise list of CPSEs companies; exemption from signing of MoU for sick/ is given in Annexure-6. under closure/ under-construction/ non-operational 4.3 Procedure for Categorization: Proposal for CPSEs or other grounds as per the recommendation from categorization of a CPSE is initiated by the concerned the Administrative Ministry. Year MoU signed Year MoU signed 1987-88 4 2011-12 197 1991-92 72 2012-13 196 2001-02 104 2013-14 197 2002-03 100 2014-15 214 2003-04 96 2015-16 215 2004-05 99 2016-17 231 2005-06 102 2017-18 196 2006-07 113 2018-19 165 2007-08 144 2019-20 144 2008-09 147 2020-21 124 2009-10 197 2021-22 107 2010-11 198 5.1.3. Institutional arrangements for for evaluating the performance of CPSEs. HPC Implementation of MoU Policy: is headed by the Cabinet Secretary and comprises following members: (a) High Powered Committee (HPC): The HPC gives guidance and directions with respect to the CEO (NITI Aayog), Finance Secretary, Secretary determination of the principles and parameters (Expenditure), Secretary (Statistics & Programme 298Department of Public Enterprises Implementation), Chairman (Public Enterprises included in the revised MoU process are market oriented Selection Board); Chief Economic Advisor reflecting the shareholders’ interest in terms of growth in (Economic Affairs); Chairman (Tariff revenue; EBITDA margin; return on net worth; return on Commission) and Secretary (DPE). capital employed; asset turnover ratio and market capitalization. Adequate weightage has also been given (b) Inter-Ministerial Committee (IMC): The IMC to production linked parameters pertaining to CPSE’s core sets the basic parameters of the MoU and also operations. All the parameters are quantifiable and lays down the financial and physical targets verifiable from the documents in public domain. Besides against each of the parameters. The IMC certain government’s priorities/ programmes such as comprises of Secretary (DPE) as Chairman, procurement from GeM, MSE sector, etc. have been also Chief Economic Advisor (Department of been included for compliance by CPSEs, the non- Economic Affairs), Representatives of compliance of which would result in deduction of marks. Department of Expenditure, MoSPI, NITI Aayog The revised MoU framework also provides for and Secretary of Administrative Ministry as benchmarking based on growth and emerging trends of special invitee. Any other expert can be co-opted the sector; vision that has been worked by the Ministry by IMC on need basis. about the sector and peer performance. 5.1.4. MoU Framework (up to 2020-21): As CPSEs 5.1.6. General Guidelines related to MoU function across diverse sectors under different conditions, Framework the evaluation parameters had been designed for a uniform comparison. There were two broad categories 5.1.6.1.Target setting: Each CPSE is required to upload of parameters – Mandatory and Optional – with equal data in respect to its physical and financial performance weightage (50%) to each. The mandatory category for a period of 5 years preceding the year for which MoU comprised of three financial performance parameters is to be signed. Based on this data of CPSEs, the sectoral namely revenue from operations, operating profit and vision from the Administrative Ministry and data of industry return on investment (i.e., ratio of PAT/Net-worth) peers, IMC sets the requisite levels of performance applicable uniformly to all CPSEs [excluding those that against each of the parameters as benchmarked targets. depend on government grants or perform function of These benchmarked targets are for ‘Excellent’ level. distribution of grant]. For the remaining 50% weightage, a menu of parameters was in place for selection by the 5.1.6.2.MoU Score and Rating: MoU score is an Administrative Ministry. The IMC was authorized to take aggregate of score on all parameters with respect to decision on finalizing the appropriate and relevant performance vis-à-vis the targets. To distinguish parameters for measuring the performance of respective between good and poor performing CPSEs, there are CPSEs. five performance ratings - ‘Excellent’, ‘Very Good’, 5.1.5. Revised MoU Framework (2021-22 & ‘Good’, ‘Fair’, and ‘Poor’. Score and rating are subject onwards): Based on the recommendations of the HPC, to fulfillment of certain compliance parameters/ criteria the framework for MoU System using an online failing which aggregate MoU score is reduced and the dashboard for the target setting and performance rating is modified accordingly. The rating system of evaluation of CPSEs has been put in place and made CPSEs based on the MoU aggregate score is as applicable from FY 2021-22 & onwards. The parameters follows: Aggregated Score Rating 90≤Score≤100 Excellent 70≤Score<90 Very Good 50≤Score<70 Good 33≤Score<50 Fair 0≤Score<33 Poor 5.1.6.3.MoU Evaluation: CPSEs are required to enter 5.1.6.4.The basic framework of MoU parameters and data from their audited balance sheet and Profit & Loss inter se distribution of marks is given at Annexure-7. statement on the dashboard through which the score is automatically calculated against the benchmarked targets 5.1.7. MoU Assessment Outcomes: for each parameter on proportionate basis. Score on all 5.1.7.1 The year wise figures for signed MoU and parameters are thereafter added to arrive at MoU evaluation for CPSEs are tabulated below: aggregate Score. Particulars 2016-17 2017-18 2018-19 2019-20 2020-21 Total MoUs Signed 231 196 165 144 124 Evaluation Report Submitted 198 186 144 140 122 299Annual Report 2021-2022 5.1.7.2.A comparison of the MoU ratings secured by the CPSEs during the last 5 years is as under: Rating Number of CPSEs under each rating over Years 2016-17 2017-18 2018-19 2019-20 2020-21 Excellent 49 49 42 25 22 Very Good 54 41 38 34 40 Good 40 36 30 32 27 Fair 31 39 16 25 21 Poor 24 21 18 24 12 Total 198 186 144 140 122 5.2. Corporate Governance and the Companies (CSR Policy) Rules, 2014 notified thereunder by Ministry of Corporate Affairs and the 5.2.1. The term Corporate Governance includes the Schedule-VII of the Act, which lists the activities that can policies and procedures adopted by a corporate entity in be undertaken under CSR. achieving its objectives in relation to shareholders, employees, customers & suppliers, regulatory authority 6.3 Based on the recommendations of CPSEs and the community at large. In general parlance, it means Conclave held in April, 2018, with the approval of a code of corporate conduct in relation to all the competent authority, Department of Public Enterprises stakeholders, whether internal or external. Corporate has issued guidelines on 10th December,2018 to all Governance implies transparency of management administrative Ministries & CPSEs for adopting a theme systems and encompasses the entire mechanics of the based focused approach every year on CSR expenditure functioning of the company. It provides a system by which by CPSEs. These guidelines inter-alia provide that CSR corporate entities are directed and controlled, besides expenditure for such thematic programmes should be attempting to put in place a system of checks and around 60% of annual CSR expenditure of CPSEs. The balances between the shareholders, directors, auditors aspirational districts identified by NITI Aayog may be given and the management. preference. The common theme identified for the FY 2021-22 is ‘Health & Nutrition, with special focus on 5.2.2. Keeping in view the importance of Corporate COVID related measures including setting up makeshift Governance principles in ensuring transparency and hospitals and temporary COVID care facilities’. enhancing the trust of stakeholders and the fact that there was a continued need to adopt and apply the good 6.4 DPE organized an Interactive Workshop of CSR Corporate Governance practices in respect of CPSEs Heads of CPSEs on 24th November, 2021 at Guwahati. where huge public funds are invested, Guidelines on The Workshop was attended by more than 80 senior Corporate Governance for all CPSEs on mandatory basis executives of various CPSEs. was approved by the Government in March, 2010. 6.5 DPE organized an Interactive Workshop of CSR 5.2.3. The Guidelines cover issues like composition of Heads of CPSEs on 27-28th December, 2021 at Patna. Board of CPSEs, Audit Committee, Remuneration The Workshop was attended by 62 participants including Committee, Disclosures, Code of Conduct and Ethics, CSR heads of various CPSEs, senior officers from Health Risk Management, etc. and Education Department of Govt. of Bihar and officers/ executives of implementing agencies from five 5.2.4. Each year CPSEs are assessed in respect to Aspirational Districts of Bihar. their performance on the parameters laid out in the extant Guidelines. 7. Scheme for Counselling, Retraining and Redeployment (CRR) & Scheme for 6. Corporate Social Responsibility (CSR) Research, Development and Consultancies 6.1 As per Section-135 of the Companies Act, 2013, (RDC) all profit-making corporates, including Central Public 7.1 The Scheme for Counselling, Retraining and Sector Enterprises (CPSEs) exceeding threshold limits Redeployment (CRR) of Rationalized Employees of prescribed in the Act of net worth 500 crore, or turnover CPSEs is being implemented by Department of Public of 1000 crore or net profit of 5 crore are mandated to Enterprises (DPE) as a Central Sector Plan Scheme spend at least 2% of the average net profits (Profit Before since 2001-02. CRR Scheme was modified in November, Tax) of the company made during the three immediately 2007 in order to widen its scope and coverage. One preceding years on CSR activities as per the items listed dependent of VRS optee is also eligible in case the VRS in Schedule VII of the Companies Act, 2013. optee himself/herself is not interested. The Scheme has 6.2 The CPSEs are required to follow the provisions been subsequently modified in February, 2016 in order contained in Section-135 of the Companies Act, 2013 to broaden the network of Training Providers and also to 300Department of Public Enterprises follow standardized methodology of training, design and his/her aptitude and expertise, take up economic activities delivery. and continue to be in the production process. 7.2 Objectives of the CRR Scheme Retraining: The objective of training is to help the separated employees acquire necessary skill/expertise/ (i) Bringing separated employees of CPSEs and/or orientation to start new vocations and re-enter the their dependents into the mainstream economy productive process after loss of their jobs. through appropriate re-skilling. Redeployment: The scheme also envisages (ii) Reorientation of VRS/VSS optees/ dependents redeployment of separated employees in the production to enable them to adjust to new environment and process. At the end of the programme, VRS/VSS optee/ adopt new vocations dependents should be able to engage themselves in 7.3 The Main elements of the CRR scheme alternate vocations of self/wage employment. Counselling: Counselling is the basic pre-requisite of 7.4 CPSEs are the key to the success of the scheme. the rehabilitation programme of the separated employees. They are expected to extend all possible support for the The separated employees need psychological counselling welfare of the separated employees by clearing their to absorb the distress of loss of assured livelihood and compensation/dues before release. Long association with to face the new challenges and also needs support to employees puts CPSEs in a better position to identify plan his compensation amount prudently. He/she also their retraining needs. needs to be made aware of the new environment of 7.5 Year wise number of persons trained under the market opportunities so that he/she may, depending upon scheme is shown as under: Year Number of VRS optees trained 2001-02 8,064 2002-03 12,066 2003-04 12,134 2004-05 28,003 2005-06 32,158 2006-07 34,398 2007-08 9,728 2008-09 9,772 2009-10 7,400 2010-11 9,265 2011-12 9,400 2012-13 7,506 2013-14 3,230 2014-15 2,525 2015-16 3,150 2016-17 1,576 2017-18 1,792 2018-19 1528 2019-20 & 2020-21* 1,141 * Due to Covid-19, there was disruption in training programmes under CRR as they were kept suspended during this period and implementation of scheme for the year 2019-20 has rolled over to 2020-21. 7.6 Physical/Financial Targets under CRR Scheme for the year 2021-22 and 2022-23 FY BE / RE (` crore) Physical Targets (in Nos.) 2021-22 3.40 / 2.70 1500 2022-23 3.40 1500 301Annual Report 2021-2022 7.7 CRR scheme – 2019-20 and Addendum 7.7.2 Due to COVID-19 outbreak, the programmes under CRR scheme were adversely affected. An 7.7.1 A tripartite agreement was signed for 2019-20 addendum to MoU for the year 2019-20 was signed between the Department of Public Enterprises (DPE), between DPE, NSDF and NSDC on 19.8.2021 for National Skill Development Fund (NSDF) under the extending the period of completion upto March, 2022. Ministry of Skill Development & Entrepreneurship (MSDE) and National Skill Development Corporation (NSDC) to 7.7.3 The following sectors and job roles have been provide skill training under National Skills Qualification selected for the skill training during the years 2019-20 Framework (NSQF) to implement the scheme. and 2020-21. S.N. Sector Job Role 1 Electronics & Hardware Field Technician- Other Home Appliances 2 Retail Retail Sales Associate 3 Electronics & Hardware Field Technician-Other Home Appliances 4 IT-ITES Domestic Data Entry Operator 5 IT-ITES CRM Domestic Non-Voice 6 Electronics & Hardware Field Technician Ups and Inverter 7 Plumbing Plumbing (General) 8 Tourism & Hospitality Assistant Catering Manager 9 Electronics & Hardware Field Technician-Other Home Appliances 10 Electronics & Hardware Field Engineer RACW 7.8 Tripartite MoU for CRR-V (RDC) for the executives of Central Public Sector Enterprises (CPSEs) and State Level Public Enterprises A tripartite MoU (CRR-V) was signed between DPE, (SLPEs). Under the Scheme Management Development National Skill Development Fund and National Skill Programmes on various topics for increasing the Development Corporation for implementation of CRR knowledge & skillsets of executives of CPSEs and Scheme for FY 2021-22. SLPEs are organized at various Centres for Excellence 7.9 Scheme in respect of Research, Development such as IIMs, IITs, IIPA New Delhi etc. DPE plans to and Consultancies (RDC) organize 25 training programmes and 18 workshops during the year 2021-22 under the RDC Scheme. DPE is implementing another Central Sector Plan Scheme of Research, Development and Consultancies 7.10 Physical/Financial Targets under RDC Scheme for the year 2021-22 and 2022-23 Year BE/RE Physical Targets (` crore) (Nos. of Training Programs & Workshops) 2021-22 5.15/4.10 43 2022-23 5.15 43 7.11 Statement of Scheme wise Expenditure for vulnerable and weaker sections of society, from the scope of the policy. The policy proposes that in Strategic the year 2020-21 is enclosed at Annexure-8. Sector, bare minimum presence of the existing public sector enterprises at holding company level will be 8. Implementation of New Public Sector retained under the Government control. The remaining Enterprises (PSE) Policy enterprises in Strategic Sector will be considered for privatisation or merger or subsidiarization with another 8.1 The Government notified the new Public Sector CPSE or for closure. CPSEs in Non-Strategic Sector shall Enterprise (PSE) Policy on 4th February, 2021. The new be considered for privatisation, where feasible, otherwise PSE policy envisages classification of CPSEs into such enterprises shall be considered for closure. Strategic and Non-Strategic Sectors and exempts certain CPSEs such as those setup as not for profit companies 8.2 The Department of Public Enterprises (DPE) has under the Companies Act, 2013 or those supporting been brought under the Ministry of Finance vide 302Department of Public Enterprises notification dated 6th July, 2021 of Cabinet Secretariat. 9.3 VRS in marginally profit or loss Making / sick / Vide order dated 17th August, 2021 of Finance Secretary, unviable CPSEs demarcation of certain responsibilities between DIPAM Marginally profit /loss making CPSEs as well as sick and and DPE has been done. DPE has been entrusted with unviable units may adopt either of the following models: the responsibility to identify CPSEs for closure or privatisation in Non-Strategic Sector in consultation with Gujarat Model, under which the compensation is administrative Ministries/Departments. DPE is also computed by allowing 35 days salary for every completed required to drive the closure process for CPSEs approved year of service and 25 days for each year of the balance for closure. For implementation of the above, a service left until superannuation subject to the condition Disinvestment Division has been created in DPE. that compensation shall not exceed the sum of salary for the balance period left for superannuation. 8.3 In order to operationalize the New Public Sector Enterprise (PSE) Policy for CPSEs in Non-Strategic Department of Heavy Industry (DHI) model, under Sector and to drive the closure process of CPSEs which ex-gratia payment made is equivalent to 45 days identified for closure, DPE has prepared guidelines in emoluments (Pay + DA) for each completed year of consultation with D/o Expenditure, D/o Economic Affairs, service or the total emoluments for the balance period of D/o Revenue, DIPAM and NITI Aayog. These guidelines service, whichever is less. The employees who have have been issued on 13.12.2021and are provided at completed not less than 30 years of service will be eligible Annexure-9. for a maximum of 60 (sixty) months’ salary/wage as compensation and this will be subject to the amount not 8.4 The salient features of the guidelines are given exceeding the salary/wage for the balance period of below: service left. i) identification of the CPSEs either for closure or privatization in Non-Strategic Sector will be done 10. Executive Development Programmes in consultation with the concerned Administrative 10.1 The Central Public Sector Enterprises (CPSEs) Ministries/Departments, NITI Aayog, Department design their own human resource development of Expenditure and DIPAM; programmes to upgrade skills and knowledge of middle ii) the details of CPSEs approved for disinvestment and senior level executives by giving them training in by CCEA will be communicated to DIPAM for various fields of management development through their taking necessary action as per its extant own management institutes or outsourcing the services procedure. Whereas, DPE will drive the process of premier management training institutions in India. for CPSEs approved for closure and 10.2 Secretary, DPE is an ex-officio member of the iii) the guidelines propose to transfer leasehold land Executive Board and Governing Council of the Standing of CPSEs under closure to the respective state Conference of Public Enterprises (SCOPE), New Delhi. governments. The freehold land will be transferred to Special Purpose Vehicle (SPV) to 10.3 Secretary, DPE is member on the Board of be set up for their disposal. The alienation of land Governors of the Institute of Public Enterprise, from the CPSEs under closure will help in Hyderabad. expediting the closure process. 10.4 India is a founder Member of International Center 9. Voluntary Retirement Scheme (VRS) for Promotion of Enterprises (ICPE) headquartered in Slovenia. It was established as an inter-Governmental 9.1 As a result of the restructuring in some Central organisation of developing countries for improving the Public Sector Enterprises (CPSEs), Government performance of their public enterprises as Strategic announced the Voluntary Retirement Scheme (VRS) in instrument of economic and social development. ICPE October, 1988. A comprehensive scheme was later pursues its goals by carrying out research, education, notified by the Department of Public Enterprises (DPE) training, consultancy work and disseminating information in May, 2000. through documentation and publishing activities directed 9.2 VRS in CPSEs that can support the scheme towards bridging the gap between theory and practice on their own on a wide range of issues pertaining to corporate governance, management and other related fields. Enterprises, which are financially sound and can sustain VRS on their own, can frame their own schemes of VRS 11. Reservation in Services for Scheduled Castes and make it attractive enough for employees to opt for it. (SCs), Scheduled Tribes (STs), Other They may offer as compensation upto 60 days salary Backward Classes (OBCs) and Others, in the (only Basic Pay +DA) for every completed year of service. CPSEs Such compensation will, however, not exceed the salary for the balance period of the service left. 11.1 The Personnel and Recruitment Policies in 303Annual Report 2021-2022 respect of appointments against below Board level posts posts covered under creamy layer criteria on the above- are formulated by the management of respective CPSEs. mentioned principle. However, on matters of general importance, policy guidelines are issued by the Government of India to the 11.5 DPE has issued Presidential Directive on enterprises so as to enable them to frame their individual 11.3.1997 to all the administrative Ministries /Departments corporate policies. Furthermore, formal Presidential concerned with the CPSEs in follow-up of DoPT Directives are issued to CPSEs by the concerned instructions for employment of physically challenged administrative Ministries to ensure reservation in regard persons in CPSEs. With the enactment of the Persons to employment for Scheduled Castes, Scheduled Tribes and Other Backward Classes (OBCs), on similar lines with Disabilities (Equal Opportunities, Protection of Rights as applicable in the Central Government Ministries/ and Full Participation) Act, 1995, the reservation to Departments. DPE through its OM dated 25.02.2015 has physically challenged persons have been extended to stipulated that those instructions as issued by identified Group ‘A’ and ‘B’ posts to be filled through Direct Government in respect of reservations to SC/ ST/ OBC/ Recruitment. As per the ‘The Rights of Persons with Disability & Ex-servicemen are to be taken as mutatis Disabilities Act, 2016, not less than 4% posts shall be mutandis extended to all the CPSEs concerned unless reserved for persons with disabilities. specified otherwise by DPE. 11.2 A comprehensive Presidential Directive 11.6 DPE has also extended instructions vis-à-vis the incorporating all important instructions on reservation for scheme for reservation for Ex-servicemen in CPSEs SCs and STs was issued by DPE to all the administrative through the administrative Ministries/ Departments. Ministries/Departments concerned on 25th April, 1991 for Instructions for streamlining the procedure for recruitment formal issuance of the same to CPSEs. Necessary of Ex-servicemen have also been issued with a view to changes and modifications are also circulated to CPSEs augment their in-take in CPSEs. Such CPSEs, which are through their administrative Ministries/ Departments for in a position to offer agencies/dealerships, have been information and compliance. advised to reserve quota of such agencies/dealership for allotment to Ex-servicemen. 11.3 Subsequently, based on the recommendation of the Second Backward Classes Commission (Mandal 11.7 The instructions issued by DoPT vide its OM Commission) and in accordance with the Hon’ble dated 19.01.2019 & 31.01.2019 and DO letter dated Supreme Court Judgment in the Indira Sawhney case, 21.01.2019 in respect of 10% reservation to Economically instructions were issued for providing reservation of 27% Weaker Sections (EWSs) are also mutatis mutandis of vacancies in favour of Other Backward Classes extended to all the CPSEs in terms of DPE OM dated (OBCs). Reservation for OBCs was made effective w.e.f. 25.01.2019 and 01.02.2019. 8.9.1993. The Department of Personnel & Training (DoPT) which formulates the policy in respect of 11.8 The need to ensure timely filling up of reserved reservation in services has been issuing instructions from posts and the backlog has been stressed through various time to time on various aspects of reservation in respect instructions issued from time to time. All administrative of OBCs. Department of Public Enterprises (DPE) has Ministries/Departments have been requested to advise been extending these instructions to CPSEs through their the CPSEs under their administrative control to take administrative Ministries for compliance. A effective steps to fill up the unfilled reserved posts in Direct comprehensive Presidential Directive incorporating these Recruitment as well as in Promotion in accordance with instructions was forwarded by the Department of Public the existing instructions. Further, the DoPT has issued Enterprises to all administrative Ministries vide DPE’s OM dated 27th July, 1995 for formal issuance to the CPSEs instructions from time to time to launch a Special under their control. Recruitment Drive (s) to fill up backlog of reserved vacancies for SCs, STs & OBCs in CPSEs. DPE has 11.4 Further in terms of DPE OM dated 25-10-2017, also extended these instructions to all administrative all executives i.e. Board & below board level will be Ministries/Departments dealing with CPSEs to fill up these considered as creamy layer subject to the proviso that vacancies in a time bound manner. those executives whose annual income as per criterion given in DoPT OM dated 08-09-1993 is less than Rs. 8 11.9 The present quota for providing reservation for lakhs (as amended vide DoPT OM dated 13-09-2017) candidates belonging to Scheduled Castes, Scheduled will not fall under creamy layer criteria. It is for the Tribes and OBCs as well as other categories of persons concerned CPSE to issue the necessary orders for the entitled to reservation of vacancies is shown below: 304Department of Public Enterprises Category Quota for Reservation Scheduled Castes 15% Scheduled Tribes 7.50% Other Backward Classes 27% Physically Handicapped Persons 4% Economically Weaker Sections (EWSs) 10% As per policy of reservation for Ex-servicemen & 2021-22. Efforts were also made to promote original Dependents of those killed in action, 14.5% posts in correspondence in Hindi. The Official Language respect of skilled workers and 24.5% post in respect of Implementation Committee of DPE continues to function un-skilled posts are reserved for Ex-servicemen in under the Chairmanship of the Joint Secretary. CPSEs. 12.3 To create awareness and expanding the use of 12. Official Language Policy Hindi as Official Language, Hindi Pakhwada was organized by the Department from 14th September, 2021 12.1 DPE’s Official Language Section is primarily to 28th September, 2021. During the Hindi Pakhwada six responsible for implementation of the various provisions of the Official Language Act 1963 and the Rules framed competitions namely, Hindi Shrutlekh, Hindi Grammar thereunder. Official Language Section is also responsible Chitra Lekhan Hindi Kavita, Hindi Bhashan and Hindi for translation of documents required to be issued under Nibandh were organized for the officers and staff Section 3(3) of the Official Language Act, 1963. As more including officials on contract basis. than 80% of the staff of this Department knows Hindi, the Department has been notified under rule 10(4) of the 12.4 Annual Public Enterprises Survey on the working Official Language Rules, 1976. of Central Public Sector Enterprises is presented in the 12.2 Resolutions, notifications, notices, circulars, Parliament every year by this Department. This is papers etc. to be laid on the Table of the both houses of comprehensive document brought out by the Department Parliament have been issued bilingually during the year simultaneously in English and Hindi. 305Annual Report 2021-2022 Annexure-1 Organogram of Department of Public Enterprises Hon’ble Finance Minister Hon’ble Minister of State (Finance) Secretary Special Secretary Joint Secretary Adviser Pr. Adviser DDG JS & FA CCA Dy Secretary Dy Secretary Jt. Director Director Jt. Director Director (Wage Cell (Policy-I) (Policy-II) (MoU) (Survey)) (Disinvestment) & Admn) 306Department of Public Enterprises Annexure-2 Table 1: Performance of CPSEs during 2020-21 S.N. Item/Indicator 2019-20 2020-21# % in (Rs Crore) (Rs Crore) Growth 1. Gross Revenue of (operation) CPSEs 24,58,028 24,26,045 -1.30 2. Total paid up capital of all CPSEs 3,10,461 3,21,070 3.42 3. Investment (equity plus long-term loans) 21,28,179 21,67,479 1.85 of all CPSEs 4. Capital employed (Paid up capital + long 30,96,914 32,46,696 4.84 term loans and reserves & surplus) of all CPSEs 5. Profit of (profit making) CPSEs 1,37,657 1,89,320 37.53 6. Loss of (loss making) CPSEs -44,277 -31,058 29.86* 7. Overall Net Profit 93,379 1,58,262 69.48 8. Reserves and Surplus of all CPSEs 9,68,735 10,79,216 11.40 9. Net Worth of all CPSEs 12,46,538 13,61,600 9.23 10. Contribution of all CPSEs to Central 3,78,500 4,96,358 31.14 Exchequer * The total loss of loss making CPSEs has declined showing improvement of 29.86%. Note: The figures for 2020-21 are provisional and yet to be laid in the Houses of parliament. # Provisional 307Annual Report 2021-2022 Annexure-3 Details of Eligibility Criteria for appointment as Non-Official (Independent) Directors: Criteria of Experience: (v) Former CEOs of private companies if the company is (a) listed on the Stock Exchanges or (b) unlisted (i) Retired Government officials with a minimum of 10 but profit making and having an annual turnover of years’ experience at Joint Secretary Level or above. at least Rs.250 crore. (ii) Persons who have retired as CMD/CEOs of CPSEs (vi) Persons of eminence with proven track record from and Functional Directors of the Schedule ‘A’ CPSEs. Industry, Business or Agriculture or Management. The ex-Chief Executives and ex-Functional Directors (vii)Serving CEOs and Directors of private companies of the CPSEs will not be considered for appointment listed on the Stock Exchanges may also be as non-official Director on the Board of the CPSE considered for appointment as part-time non-official from which they retire. Serving Chief Executives/ Directors on the Boards of CPSEs in exceptional Directors of CPSEs will not be eligible to be circumstances. considered for appointment as non-official Directors on the Boards of any CPSEs. Criteria of Educational Qualification (iii) Academicians/Directors of Institutes/Heads of Minimum graduate degree from a recognized university. Department and Professors having more than 10 Criteria of Age years teaching or research experience in the relevant domain e.g. management, finance, marketing, The age band should be between 45-65 years (minimum/ technology, human resources, or law. maximum limit) (iv) Professionals of repute having more than 15 years This could, however, be relaxed for eminent of relevant domain experience in fields relevant to professionals, for reasons to be recorded, being limited the company’s area of operation. to 70 years. 308Department of Public Enterprises Annexure-4 Salient Features of Ratna Scheme (Maharatna/Navratna/Miniratna) 1. MAHARATNA SCHEME 1.3.2 The delegated powers to establish financial joint ventures and subsidiary entities would be exercised by 1.1 Eligibility Criteria: The CPSEs meeting the the Board of Maharatna CPSEs in the following manner: following eligibility criteria are considered for Maharatna status: - (i) The proposal for establishing financial joint a) Having Navratna status ventures and subsidiary entities will be presented to the Board of the concerned CPSE. b) Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI (ii) The concerned administrative Ministry/ regulations Department will obtain the concurrence of NITI Aayog for such proposals on a case to case basis c) An average annual turnover of more than and firm up its view on the proposals as the Rs.25,000 crore during the last 3 years stakeholder for the Board’s deliberations through d) An average annual net worth of more than its representative on the Board for appropriate Rs.15,000 crore during the last 3 years decision. e) An average annual net profit after tax of more (iii) The Government Directors will ensure that the than Rs.5,000 crore during the last 3 years views of the Government, being the majority f) Should have significant global presence/ shareholder, on such proposals are properly international operations. presented before the Board while a decision on such proposal is being taken. The decision for 1.2 Procedure for grant/divestment of Maharatna investment to set up financial joint ventures and status: - The procedure for grant of Maharatna status as subsidiary entities should only be taken by the well as their review is similar to that in vogue for the grant Board when Government Directors are present of Navratna status. in the board meeting. 1.3 Powers delegated to Maharatna CPSEs: - 2. Navratna scheme: 1.3.1 The Boards of Maharatna CPSEs in addition to exercising all powers to Navratna CPSEs, exercise 2.1. Eligibility criteria: The CPSEs which are enhanced powers in the area of investment in joint Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ventures/subsidiaries and creation of below Board level ‘very good’ MOU rating in three of the last five years and posts. The Boards of Maharatna CPSEs have powers to have a ‘Composite Score’ of performance to be 60 or (a) make equity investment to establish financial joint above in six identified performance parameters are ventures and wholly owned subsidiaries in India or abroad eligible to be considered for grant of Navratna status. and (b) undertake mergers & acquisitions, in India or The composite score is calculated on the basis of abroad, subject to a ceiling of 15% of the net worth of the performance of the concerned CPSEs during the last concerned CPSE in one project, limited to an absolute three years. For calculation of composite score, 6 ceiling of Rs.5,000 crore (Rs. 1,000 crore for Navratna performance indicators have been identified based on CPSEs). The overall ceiling on such equity investments their general applicability to the CPSEs. The performance and mergers and acquisitions in all projects put together indicators have been chosen so as to capture the will not exceed 30% of the net worth of the concerned performance of CPSEs irrespective of their belonging to CPSE. In addition, the Boards of Maharatna CPSEs have manufacturing sector or services sector. The 6 identified powers to create below Board level posts upto E-9 level. performance indicators are: - S.N. Performance Indicator (Maximum Weight) 1 Net Profit to Networth 25 2 Manpower Cost to total Cost of Production or Cost of 15 Services 3 PBDIT to Capital employed 15 4 PBIT to Turnover 15 5 Earnings per Share 10 6 Inter Sectoral Performance 20 Total 100 309Annual Report 2021-2022 2.2 Procedure for grant/divestment of Navratna (b) The delegated powers to establish financial joint status: The proposals for grant/divestment are initially ventures and subsidiary entities would be considered by the Inter-Ministerial Committee and then exercised by the Board of Navratna CPSEs in by the Apex Committee. The recommendations of Apex the following manner: Committee for grant/divestment of Navratna status are (i) The proposal for establishing financial joint to be placed before Minister (In charge of DPE) for a ventures and subsidiary entities will be decision. presented to the Board of the concerned 2.3 The Powers Delegated to Navratna CPSEs: CPSE. 2.3.1 Capital Expenditure: - The Navratna CPSEs (ii) The concerned administrative Ministry/ have the powers to incur capital expenditure on purchase Department will obtain the concurrence of of new items or for replacement, without any monetary NITI Aayog for such proposals on a case to ceiling. case basis and firm up its view on the proposals as the stakeholder for the Board’s 2.3.2 Technology Joint Ventures and Strategic deliberations through its representative on Alliances: - The Navratna CPSEs have the powers to the Board for appropriate decision. enter into technology joint ventures or strategic alliances and obtain by purchase or other arrangements, (iii) The Government Directors will ensure that technology and know-how. the views of the Government, being the majority shareholder, on such proposals are 2.3.3 Organization Restructuring: - The Navratna properly presented before the Board while CPSEs have the powers to effect organizational a decision on such proposal is being taken. restructuring including establishment of profit centres, The decision for investment to set up opening of offices in India and abroad, creating new financial joint ventures and subsidiary activity centres, etc. entities should only be taken by the Board 2.3.4 Human Resources Management: - The when Government Directors are present in Navratna CPSEs have been empowered to create posts the board meeting. upto E-6 level and wind up all posts up to non-Board 2.3.7 Mergers and acquisitions: - The Navratna CPSEs level Directors and make all appointments up to this level. have been delegated powers for mergers and acquisitions The Boards of these CPSEs have further been subject to the conditions that (i) it should be as per the growth empowered to effect internal transfers and re-designation plan and in the core area of functioning of the CPSE, (ii) of posts. The Board of Directors of Navratna CPSEs have conditions/limits would be as in the case of establishing joint the power to further delegate the powers relating to ventures/subsidiaries, and (iii) the Cabinet Committee on Human Resource Management (appointments, transfer, Economic Affairs would be kept informed in case of posting, etc.) of below Board level executives to sub- investments abroad. Further, the powers relating to Mergers committees of the Board or to executives of the CPSE, and Acquisitions are to be exercised in such a manner that as may be decided by the Board of the CPSE. it should not lead to any change in the public sector character 2.3.5 Resource Mobilization: - These CPSEs have of the concerned CPSEs. been empowered to raise debt from the domestic capital 2.3.8 Creation/Disinvestment in subsidiaries:- The markets and for borrowings from international market, Navratna CPSEs have powers to transfer assets, float subject to condition that approval of RBI/Department of fresh equity and divest shareholding in subsidiaries Economic Affairs, as may be required, should be obtained subject to the condition that the delegation will be in through the administrative Ministry. respect of subsidiaries set up by the holding company 2.3.6 Joint ventures and Subsidiaries: - under the powers delegated to the Navratna CPSEs and further to the proviso that the public sector character of (a) The Navratna CPSEs have been delegated the concerned CPSE (including subsidiary) would not be powers to establish financial joint ventures and changed without prior approval of the Government and wholly owned subsidiaries in India or abroad with such Navratna CPSEs will be required to seek the stipulation that the equity investment of the Government approval before exiting from their CPSE should be limited to the following: - subsidiaries. i. Rs. 1000 crore in any one project, 2.3.9 Tours abroad of functional Directors: - The Chief Executive of Navratna CPSEs have been delegated ii. 15% of the net worth of the CPSE in one powers to approve business tours abroad of functional project, directors up to 5 days’ duration (other than study tours, iii. 30% of the net worth of the CPSE in all joint seminars, etc.) in emergency under intimation to the ventures/ subsidiaries put together. Secretary of the administrative Ministry. 310Department of Public Enterprises 2.3.10 Exercise of delegated Navratna powers is project should be limited to 15% of the networth contingent on certain conditionalities. of the CPSE or Rs. 500 crore, whichever is less. The overall ceiling on such investment in all 3. MINIRATNA SCHEME: projects put together is 30% of the networth of 3.1 Eligibility criteria the CPSE. (i) Category-I CPSEs should have made profit in (b) Category II CPSEs: To establish joint ventures the last three years continuously, the pre-tax profit and subsidiaries in India with the stipulation that should have been Rs.30 crores or more in at least the equity investment of the CPSE in any one one of the three years and should have a positive project should be 15% of the networth of the net worth. CPSE or Rs. 250 crore, whichever is less. The overall ceiling on such investment in all projects (ii) Category-II CPSEs should have made profit for put together is 30% of the networth of the CPSE. the last three years continuously and should have a positive net worth. (c) The delegated powers to establish financial joint ventures and subsidiary entities would be (iii) These CPSEs shall be eligible for the enhanced exercised by the Board of Miniratna CPSEs in delegated powers provided they have not the following manner: defaulted in the repayment of loans/interest payment on any loans due to the Government. (i) The proposal for establishing financial joint ventures and subsidiary entities will be (iv) These public sector enterprises shall not depend presented to the Board of the concerned upon budgetary support or Government CPSE. guarantees. (ii) The concerned administrative Ministry/ (v) The Boards of these CPSEs should be Department will obtain the concurrence of restructured by inducting at least three non- NITI Aayog for such proposals on a case- official Directors as the first step before the to-case basis and firm up its view on the exercise of enhanced delegation of authority. proposals as the stakeholder for the Board’s deliberations through its representative on (vi) The administrative Ministry concerned shall the Board for appropriate decision. decide whether a Public Sector Enterprise fulfilled the requirements of a Category-I/Category-II (iii) The Government Directors will ensure that company before the exercise of enhanced the views of the Government, being the powers. majority shareholder, on such proposals are properly presented before the Board while 3.2 Procedure for grant of Miniratna status: Grant a decision on such proposal is being taken. of Miniratna status to a particular CPSE is done by The decision for investment to set up concerned Administrative Ministry/Department. financial joint ventures and subsidiary 3.3 Powers Delegated entities should only be taken by the Board when Government Directors are present in 3.3.1 Capital Expenditure the Board Meeting. (a) For CPSEs in category I: The power to incur 3.3.3 Mergers and acquisitions: - The Board of capital expenditure on new projects, Directors of these CPSEs have the powers for mergers modernization, purchase of equipment, etc., and acquisitions, subject to the conditions that (a) it should without Government approval upto Rs. 500 crore be as per the growth plan and in the core area of or equal to net worth, whichever is less. functioning of the CPSE, (b) conditions/limits would be (b) For CPSEs in category II: The power to incur as in the case of establishing joint ventures/subsidiaries, capital expenditure on new projects, and (c) the Cabinet Committee on Economic Affairs would modernization, purchase of equipment, etc., be kept informed in case of investments abroad. Further, without Government approval upto Rs. 250 crore the powers relating to Mergers and Acquisitions are to or equal to 50% of the Net worth, whichever is be exercised in such a manner that it should not lead to less. any change in the public sector character of the concerned CPSEs. 3.3.2 Joint ventures and subsidiaries: 3.3.4 Scheme for HRD: - To structure and implement (a) Category I CPSEs: To establish joint ventures schemes relating to personnel and human resource and subsidiaries in India with the stipulation that management, training, voluntary or compulsory retirement the equity investment of the CPSE in any one schemes, etc. The Board of Directors of these CPSEs 311Annual Report 2021-2022 have the power to further delegate the powers relating Government guidelines as may be issued from time to to Human Resource Management (appointments, time. transfer, posting, etc.) of below Board level executives 3.3.7 Creation/Disinvestment in subsidiaries :- To to sub-committees of the Board or to executives of the transfer assets, float fresh equity and divest shareholding CPSE, as may be decided by the Board of the CPSE. in subsidiaries subject to the condition that the delegation 3.3.5 Tour abroad of functional Directors: - The will be in respect of subsidiaries set up by the holding Chief Executive of these CPSEs have the power to company under the powers delegated to the Miniratna approve business tours abroad of functional directors CPSEs and further to the proviso that the public sector up to 5 days’ duration (other than study tours, seminars, character of the concerned CPSE (including subsidiary) etc.) in emergency, under intimation to the Secretary of would not be changed without prior approval of the the administrative Ministry. Government and such Miniratna CPSEs will be required to seek Government approval before exiting from their 3.3.6 Technology Joint Ventures and Strategic subsidiaries. Alliances: - To enter into technology joint ventures, strategic alliances and to obtain technology and know- 3.3.8 Exercise of delegated Miniratna powers is how by purchase or other arrangements, subject to contingent on certain conditionalities. 312Department of Public Enterprises Annexure-5 (List of Maharatna, Navratna & Miniratna CPSEs as on February, 2022) Maharatna CPSEs 7. Bharat Sanchar Nigam Limited 1. Bharat Heavy Electricals Limited 8. Braithwaite & Company Limited 2. Bharat Petroleum Corporation Limited 9. Bridge & Roof Company (India) Limited 3. Coal India Limited 10. Central Warehousing Corporation 4. GAIL India Limited 11. Central Coalfields Limited 5. Hindustan Petroleum Corporation Limited 12. Central Mine Planning & Design Institute Limited 6. Indian Oil Corporation Limited 13. Chennai Petroleum Corporation Limited 7. NTPC Limited, 14. Cochin Shipyard Limited 8. Oil & Natural Gas Corporation Limited, 15. Cotton Corporation of India Ltd. 9. Power Finance Corporation 16. EdCIL (India) Limited 10. Power Grid Corporation of India Limited 17. Garden Reach Shipbuilders & Engineers Limited 11. Steel Authority of India Limited. 18. Goa Shipyard Limited Navratna CPSEs 19. Hindustan Copper Limited 1. Bharat Electronics Limited 20. HLL Lifecare Limited 2. Container Corporation of India Limited 21. Hindustan Newsprint Limited 3. Engineers India Limited 22. Hindustan Paper Corporation Limited 4. Hindustan Aeronautics Limited 23. Housing & Urban Development Corporation Limited 5. Mahanagar Telephone Nigam Limited 24. HSCC (India) Limited 6. National Aluminium Company Limited 25. India Tourism Development Corporation Limited 7. National Buildings Construction Corporation Limited 26. Indian Rare Earths Limited 8. Neyveli Lignite Corporation Limited 27. Indian Railway Catering & Tourism Corporation Limited 9. NMDC Limited 28. Indian Railway Finance Corporation Limited 10. Oil India Limited 29. Indian Renewable Energy Development Agency 11. Rashtriya Ispat Nigam Limited Limited 12. Rural Electrification Corporation Limited 30. India Trade Promotion Organization 13. Shipping Corporation of India Limited 31. IRCON International Limited Miniratna CPSEs 32. KIOCL Limited Category - I CPSEs 33. Mazagaon Dock Shipbuilders Limited 1. Airports Authority of India 34. Mahanadi Coalfields Limited 2. Antrix Corporation Limited 35. MOIL Limited 3. Balmer Lawrie & Co. Limited 36. Mangalore Refinery & Petrochemical Limited 4. Bharat Coking Coal Limited 37. Mineral Exploration Corporation Limited 5. Bharat Dynamics Limited 38. Mishra Dhatu Nigam Limited 6. BEML Limited 39. MMTC Limited 313Annual Report 2021-2022 40. MSTC Limited 58. South Eastern Coalfields Limited 41. National Fertilizers Limited 59. Telecommunications Consultants India Limited 42. National Projects Construction Corporation Limited 60. THDC India Limited 43. National Small Industries Corporation Limited 61. Western Coalfields Limited 44. National Seeds Corporation 62. WAPCOS Limited 45. NHPC Limited Category-II CPSEs 46. Northern Coalfields Limited 63. Artificial Limbs Manufacturing Corporation of India 47. North Eastern Electric Power Corporation Limited 64. Bharat Pumps & Compressors Limited 48. Numaligarh Refinery Limited 65. Broadcast Engineering Consultants India Limited 49. ONGC Videsh Limited 66. Central Railside Warehouse Company Limited 50. Pawan Hans Helicopters Limited 67. Engineering Projects (India) Limited 51. Projects & Development India Limited 68. FCI Aravali Gypsum & Minerals India Limited 52. Railtel Corporation of India Limited 69. Ferro Scrap Nigam Limited 53. Rail Vikas Nigam Limited 70. HMT (International) Limited 54. Rashtriya Chemicals & Fertilizers Limited 71. Indian Medicines & Pharmaceuticals Corporation Limited 55. RITES Limited 72. MECON Limited 56. SJVN Limited 73. National Film Development Corporation Limited 57. Security Printing and Minting Corporation of India Limited 74. Rajasthan Electronics & Instruments Limited 314Department of Public Enterprises Annexure-6 (Schedule-Wise List of Central Public Sector Enterprises as on February, 2022) Schedule- A 33. Mazagon Dock Shipbuilders Limited 1. Airports Authority of India 34. MECON Limited 2. Advanced Weapons and Equipment India Limited 35. MMTC Limited 3. Armoured Vehicles Nigam Limited 36. MOIL Limited 4. BEML Limited 37. Mumbai Railway Vikas Corporation Limited 5. Bharat Electronics Limited 38. Munitions India Limited 6. Bharat Heavy Electricals Limited 39. National Aluminum Company Limited 7. Bharat Petroleum Corporation Limited 40. NBCC (India) Limited 8. Bharat Sanchar Nigam Limited 41. National Fertilizers Limited 9. Central Warehousing Corporation 42. New Space India Limited 10. Coal India Limited 43. NHPC Limited 11. Container Corporation of India Limited 44. NMDC Limited 12. Dedicated Freight Corridor Corporation of India 45. National Textiles Corporation Limited Limited 46. NTPC Limited 13. Electronics Corporation of India Limited 47. NLC India Limited 14. Engineers India Limited 48. North Eastern Electric Power Corporation Limited 15. Fertilizers & Chemicals (Travancore) Limited 49. Oil & Natural Gas Corporation Limited 16. Food Corporation of India 50. Oil India Limited 17. GAIL (India) Limited 51. ONGC Videsh Limited 18. Heavy Engineering Corporation Limited 52. Power Finance Corporation Limited 19. Hindustan Aeronautics Limited 53. Power Grid Corporation of India Limited 20. Hindustan Copper Limited 54. Power System Operation Corporation Limited 21. Hindustan Paper Corporation Limited 55. RITES Limited 22. Hindustan Petroleum Corporation Limited 56. RailTel Corporation of India Limited 23. HMT Limited 57. Rail Vikas Nigam Limited 24. Housing & Urban Development Corporation Limited 58. Rashtriya Chemicals and Fertilizers Limited 25. I T I Limited 59. Rashtriya Ispat Nigam Limited 26. Indian Oil Corporation Limited 60. Rural Electrification Corporation Limited 27. IRCON International Limited 61. SJVN Limited 28. Indian Railway Finance Corporation Limited 62. Security Printing & Minting Corporation of India 29. Konkan Railway Corporation Limited Limited 30. KIOCL Limited 63. Shipping Corporation of India Limited 31. Mahanagar Telephone Nigam Limited 64. Solar Energy Corporation of India Limited 32. Mangalore Refinery & Petrochemicals Limited 65. State Trading Corporation of India Limited 315Annual Report 2021-2022 66. Steel Authority of India Limited 32. HLL Lifecare Limited 67. Telecommunications Consultants (India) Limited 33. Hindustan Newsprints Limited 68. THDC India Limited 34. Hindustan Organic Chemicals Limited 69. Yantra India Limited 35. Hindustan Shipyard Limited Schedule- B 36. Hindustan Steelworks Construction Company Limited 1. Air India Asset Holding Company Ltd. 37. HMT (International) Limited 2. Andrew Yule & Company Limited 38. HMT Machine Tools Limited 3. Balmer Lawrie & Company Limited 39. HMT Watches Limited 4. Bharat Coking Coal Limited 40. India Optel Limited 5. Bharat Dynamics Limited 41. India Tourism Development Corporation Limited 6. Bharat Gas Resources Limited 42. India Trade Promotion Organization 7. Bharat Petro Resources Limited 43. Indian Drugs & Pharmaceuticals Limited 8. Bharat Pumps & Compressors Limited 44. Indian Railway Catering & Tourism Corporation 9. Brahmaputra Crackers & Polymers Limited Limited 10. Brahmaputra Valley Fertilizer Corporation Limited 45. Indian Rare Earths Limited 11. Biotechnology Industry Research Assistance Council 46. Indian Renewable Energy Development Agency Limited 12. Braithwaite & Company Limited 47. Instrumentation Limited 13. Bridge & Roof Company (India) Limited 48. M S T C Limited . 14. British India Corporation Limited 49. Madras Fertilizers Limited 15. Burn Standard Company Limited 50. Mahanadi Coalfields Limited 16. Cement Corporation of India Limited 51. Mineral Exploration Corporation Limited 17. Central Coalfields Limited 52. Mishra Dhatu Nigam Limited 18. Central Electronics Limited 53. National Handloom Development Corporation 19. Central Mine Planning & Design Institute Limited Limited 20. Chennai Petroleum Corporation Limited 54. National Jute Manufacturers Corporation Limited 21. Cochin Shipyard Limited 55. National Projects Construction Corporation Limited 22. Cotton Corporation of India Limited 56. National Seeds Corporation Limited 23. Eastern Coalfields Limited 57. National Small Industries Corporation Limited 24. Engineering Projects (India) Limited 58. Northern Coalfields Limited 25. Fertilizer Corporation of India Limited 59. Numaligarh Refinery Limited 26. Garden Reach Shipbuilders & Engineers Limited 60. Orissa Mineral Development Company Limited 27. Gliders India Limited 61. PEC Limited 28. Goa Shipyard Limited 62. Pawan Hans Limited 29. Handicrafts & Handlooms Export Corporation Limited 63. Projects & Development India Limited 30. Hindustan Cables Limited 64. Scooters India Limited 31. Hindustan Fertilizer Corporation Limited 65. South Eastern Coalfields Limited 316Department of Public Enterprises 66. Troop Comforts Limited 25. HSCC (India) Limited 67. Uranium Corporation of India Limited 26. Hotel Corporation of India Limited 68. W A P C O S Limited 27. The Jute Corporation of India Limited 69. Western Coalfields Limited 28. Karnataka Antibiotics & Pharmaceuticals Ltd Schedule- C 29. Nagaland Pulp & Paper Company Limited 1. Andaman & Nicobar Islands Forest & Plantation 30. National Backward Classes Finance & Development Development Corporation Limited Corporation. 2. Artificial Limbs Mfg. Corporation of India 31. National Film Development Corporation Limited 3. Brithwaite Burn & Jessop Construction Company 32. National Handicapped Finance & Development Limited Corporation. 4. Bengal Chemicals & Pharmaceuticals Limited 33. National Minorities Development & Finance Corporation 5. BHEL Electric Machines Limited 34. National Research Development Corporation of India. 6. Bharat Wagon & Engineering Company Limited 35. National Safai Karamcharis Finance & Development 7. The Bisra Stone Lime Company Limited Corporation. 8. Broadcast Engineering Consultants India Limited 36. National Scheduled Castes Finance & Development 9. Central Cottage Industries Corporation of India Corporation Limited 37. National Scheduled Tribes Finance & Development 10. Central Inland Water Transport Corporation Limited Corporation 11. Central Railside Warehouse Company Limited 38. NEPA Limited 12. Certification Engineers International Limited 39. North Eastern Handicrafts & Handloom Development Corporation Limited 13. Delhi Police Housing Corporation 14. EdCIL (India) Limited 40. North Eastern Regional Agricultural Marketing Corporation Limited 15. FCI Aravali Gypsum & Minerals (India) Limited 41. Rajasthan Electronics & Instruments Limited 16. Ferro Scrap Nigam Limited 42. Richardson & Cruddas (1972) Limited 17. Hindustan Antibiotics Limited 43. STCL Limited 18. HIL (India) Limited 44. Tungabhadra Steel Products Limited 19. Hindustan Photo Films Manufacturing Company Limited Schedule- D 20. Hindustan Prefab Limited 1. Birds Jute & Exports Limited 21. Hindustan Salts Limited 2. Hindustan Fluorocarbons Limited 22. HMT Bearings Limited 3. Indian Medicines Pharmaceutical Corporation Limited 23. HMT Chinar Watches Limited 4. Orissa Drugs & Chemicals Limited 24. Hooghly Dock and Port Engineers Limited 5. Rajasthan Drugs & Pharmaceuticals Limited 317Annual Report 2021-2022 Annexure-7 Basic Framework of MoU (2021-22 & onwards) SN Parameter Formula Marks Source/ Verification A. Top-line, Bottom-line and Returns Perspective: 1. Revenue from Operations Revenue from Operations 5 Profit & Loss (Rs. in Cr.) Statement 2. Asset turnover ratio (%) Total Income 5 P&L Statement & ×100 Total Assets Balance Sheet 3. EBITDA as a percentage EBITDA 10 P&L Statement ×100 of Revenue Total Income EBITDA: Earnings Before Interest, Tax, Depreciation & Amortization excluding exceptional or extra-ordinary items 4. Return on Net Worth (%) PAT 10 P&L Statement & ×100 Average Net Worth Balance Sheet Net worth: As per The Companies Act 5. Return on Capital EBIT 5 P&L Statement & ×100 Employed (%) Total Capital Employed Balance Sheet Total Capital Employed: Net worth + Non-Current Borrowings 6. Market capitalization/ Share Price improvement over sectoral index on 15 BSE / NSE Data annual basis, including dividend payout (for listed CPSEs) (%) Or Or P&L Statement & Earning Per Share (for unlisted CPSEs) Balance sheet B. Physical Goals; Trade Receivables, CAPEX and R&D 7. Physical Output: Production/ Generation/ Transmission etc. 20 Annual Report of Value of Production/ Services/ Total Income CPSE 8. Trade Receivables as Trade Receivables 5 Balance Sheet & ×365 number of days of Revenue from Operations P&L Statement Revenue from Operations 9. i. CAPEX (Rs in Cr.) Target is based on Budget document of Balance Sheet Union Govt. 10 Addition to Property Plant and Equipment, capital work-in-progress, capital advances ii. CAPEX achievement Achieving 90 % of target Confirmation by the till end of 3rd quarter (31st 3 Administrative December) (Rs in Cr.) Ministry 10. Expenditure on R&D / 2% 2 Annual Report of Innovations, Initiatives as CPSE percentage of PBT (%) C. Export/ Import 11. Exports as a percentage Value of Exports 5 P&L Statement & ×100 of Revenue from Revenue from Balance Sheet Operations operations Should show improvement over previous year. 12. Imports as a percentage Imports consumed 5 Annual Report of of Revenue from during the year CPSE ×100 operations Revenue from operations Should show reduction from previous year. 318Department of Public Enterprises Any other parameter – Profit & Loss • For loss making CPSEs: reduction in losses/ expenses, etc., Statement/ Annual • For Finance & social sector Finance CPSEs: Loan disbursement/ Report of CPSE Overdue Loans/ NPA/ cost of raising funds/ Geographical coverage/ last mile disbursement, etc. • If parameter(s) is not applicable, the weightage may be allocated to other parameter(s). Note1: During assessment, marks to be calculated proportionately for achievement from 50% to 100% of target figure for each parameter. There will be no marks awarded for the parameters having achievement below 50% of target (except for the parameter on Market Capitalisation). Note 2: In working out achievements for the year, quantified qualifications of CAG/ Statutory Auditors would be adjusted. D. Aggregate score would be subject to compliances failing which full marks, as indicated below, would be deducted and there will be no partial deduction: SN Compliance Parameters Marks Source/ Verification 1. Procurement from GeM portal in percentage as prescribed by the Administrative Ministry IMC: -2 on the basis of GeM 25% of Procurement of goods and services through portal and Sambandh GeM portal during the year as per GeM portal ×100 Total procurement of goods and services during the previous year as per Sambandh portal 2. DPE guidelines on select matters Administrative Ministry i. Pay Revision guidelines and review of profitability of -2 on the basis of CAG CPSEs for pay revision Reports etc. ii. Expenditure Management Economy Measures and Rationalisation of Expenditure iii. Guidelines on Accessible India Campaign (Sugamya Bharat Abhiyan) iv. Guidelines on implementation of the Apprenticeship Act, 1961 v. Guidelines issued from time to time on CSR expenditure by CPSEs. 3. Compliance of provisions in the Companies Act, 2013 (or SEBI -3 Administrative Ministry (LODR) regulations in case of listed entities) on Corporate on the basis of CAG/ Governance such as: Statutory/ Secretarial (i) Composition of Board of Directors Auditor Report(s) (ii) Board Committees (Audit Committee etc.) (iii) Holding Board Meetings (iv) Related Party Transaction (v) Disclosures and Transparency 4. Target as given by DIPAM/ NITI Aayog: -2 Administrative Ministry i. Dividend Payout on the basis ii. Assets Monetization Milestones confirmation from iii. Specific disinvestment Milestones DIPAM/ NITI Aayog 5. Procurement and timely payment to Micro Small and Medium -2 Administrative Ministry Enterprises on the basis of 25% of Procurement of goods or services through Sambandh portal MSEs (including 4% from SC/ST MSEs and 3% from Women MSEs) during the year as per Samband Portal Total procurement of goods and services during the year as per Samband Portal 6. Steps and initiative taken for Health & Safety improvement of -1 Confirmation by the Human Resources in CPSEs (Target to be prescribed by the administrative Ministry Administrative Ministry) 319Annual Report 2021-2022 Annexure-8 Statement of Scheme-wise Expenditure Department of Public Enterprises Demand No. 45 2020-21 Scheme Rs. In Thousand BE RE Total Expenditure 2020-21 2020-21 2020-21 (as on 31.03.2021) CRR Scheme Publications 0 0 0 Other Administrative Expenses 500 0 0 Professional & Special Services 39,500 19,100 7,547 Grants-in-Aid 500 0 0 CRR Scheme NER (Grant-in Aid) 4,500 1,900 0 CRR Total 7,547 RDC Scheme Domestic Travel Expenses 2,000 200 200 Foreign Travel Expenses 500 100 0 Publications 2000 1100 330 Other Administrative Expenses 9000 100 0 Professional & Special Services 30,000 18,700 13,730 Grants-in-Aid 500 100 0 Contribution ICPE 10,000 11,000 12,490 RDC Scheme NER (Grant-in-Aid) 6,000 3,700 2,726 RDC Total 29,476 Grand-Total 1,05,000 56,000 37,023 320Department of Public Enterprises Annexure-9 Guidelines for Implementation of New Public Sector Enterprises (PSE) Policy for CPSEs in Non-Strategic Sector 1.1 The Government notified the new Public Sector privatisation under the Non-Strategic Sectors, DPE will Enterprise (PSE) Policy on 4th February, 2021 for prepare a Note for in-principle approval of the CCEA Atmanirbhar Bharat. The new PSE Policy envisages regarding the CPSEs identified for closure and/ or for classification of CPSEs into Strategic and Non-Strategic disinvestment in Non-Strategic Sectors. Such note(s) for Sectors and exempts certain CPSEs such as those setup in principle approval of CCEA will preferably be prepared as not for profit companies under the Companies Act, separately for individual sectors falling under the category 2013 or those supporting vulnerable and weaker sections of “Non-Strategic Sector” of new PSE policy. The CPSEs of society, from the scope of the Policy. The Strategic which are approved in principle by CCEA for Sectors as per the policy are as under: disinvestment will be communicated to DIPAM for taking necessary action as per its extant procedure. Closure of i) Atomic Energy, Space, and Defence CPSEs will be done as per the process outlined below at ii) Transport and Telecommunication Para 3. iii) Power, Petroleum, Coal, and Other Minerals 3. Revised closure process of CPSEs: iv) Banking, Insurance, and Financial Services 3.1 Once, the in-principle decision for closure of a CPSE is obtained from CCEA, an IMC will be constituted 1.2 CPSEs in the Strategic Sector/ Non- Strategic by DPE to drive the process of the closure of CPSEs. Sector are to be taken up for privatisation, merger, subsidiarisation with another CPSE or for closure. Only 3.1.1 The Ministry/Department concerned will proceed a bare minimum presence of CPSEs in the aforesaid to work out the details of the closure. This would inter- Strategic Sector is to be maintained. alia include estimation of budgetary support required for financing the closure of the CPSE, the time-lines and 1.3 The Department of Public Enterprises (DPE) has phasing of release of funds from the Central Government been brought under the Ministry of Finance vide and updating of records of the movable and immovable notification dated 6th July, 2021 of Cabinet Secretariat assets of the CPSE etc. The brief details of preparatory and thereafter, Finance Secretary vide order dated 17th activities are enumerated below: August, 2021 demarked certain responsibilities between DIPAM and DPE. DPE has been entrusted with the a. Statutory dues: The statutory dues/ liabilities responsibility to identify CPSEs for closure or privatisation towards revenues, taxes, cesses and rates due in Non-Strategic Sector in consultation with administrative to Central Government or State Government or ministries/departments and to take in principle approval to local authorities will be worked out by CPSE from CCEA in respect of such identified CPSEs. Besides, under the supervision of its Administrative DPE has also been entrusted with the task of setting up Ministry/ Department. a Special Purpose Vehicle (SPV) for asset monetisation b. Serving Closure Notice: CPSE to give a general once the SPV is approved by the Cabinet. DPE is also notice to employees and other stakeholders required to drive the closure process for CPSEs approved intimating about the intention of closure and also for closure, on the lines of disinvestment process being write to the Ministry of Labour and Employment run by DIPAM. regarding the same, as applicable under 1.4 Accordingly, the following guidelines are Industrial Relations Code, 2020. The CPSE with prescribed. The closure guidelines as enumerated below the approval of the Administrative Ministry should will supersede all the closure guidelines issued earlier. also notify the VRS Scheme 2. Implementation of new PSE policy by DPE: c. Dues of employees: Funds required for implementing VRS/VSS/ payment of wages/ 2.1 Identification of CPSEs of Non-Strategic salaries and statutory dues in respect of the Sectors for Closure and Disinvestment: Under the employees till the time of their release by way of New Public Sector Policy, DPE will identify the CPSEs VRS/ VSS/ retrenchment will be worked out. either for closure or privatization in the Non-Strategic Sectors in consultation with the concerned Administrative d. Liabilities towards Secured Creditors Ministries/Departments, NITI Aayog, Department of Estimation of the amount to be paid back to the Expenditure and DIPAM. Secured Creditors based on the offers from them for settlement at minimum value. Administrative 2.2 Preparation of CCEA Note seeking in- Ministry/Department may critically examine the principle: After identification of CPSEs for closure or best possible settlement including schedule of 321Annual Report 2021-2022 payment, waiver of interest and penalties with of acquisition, amount of compensation paid, status of secured creditors. possession of land, encroachments, if any, geo-mapping etc. will be done. e. Dues payable to the Central Government: The dues payable to the Central Government availed 3.1.4 Once the preparatory activities are completed by in the form of loans from time to time, segregated the administrative Ministry/Department, a Draft Note for into the principal outstanding amount and the Closure of the CPSE will be prepared by DPE based on interest thereon shall be worked out. the inputs of preparatory activities and in consultation with the concerned Administrative Ministry/Department for f. MAT liability: In case the proposal involves closure of the CPSE on case-to-case basis. The same waiver of outstanding GOI loans (and accrued will be placed before the IMC which after scrutiny will vet interest thereon), the MAT liability on the same the Note. Thereafter, the approval of the Hon’ble Finance should also be worked out. Minister (FM) will be taken. g. Other liabilities: All other liabilities including any 3.1.5 If the Director(s) of the CPSE(s) fails to co-operate, to the unsecured creditors should be worked out. the Administrative Ministry/ Department can take a view h. Estimation of movable assets: Updating details on removing the Functional Directors including the CMD of movable assets including plant(s) & and give additional charge of the CMD to the Joint machineries and verification of inventory from an Secretary concerned and charge of Functional Directors independent third party e.g., a firm of Chartered to other senior officers in the administrative Ministry/ Accountants/Cost Accountants. Besides, Book Department as per extant guidelines in this regard. This Value of the movable assets, the current information regarding removal of the Functional Directors estimated market value and realisable value from including the CMD will be communicated to the PESB. their sale will be worked out. Wherever movable 3.2 Disposal of immovable assets assets are on lease, negotiation with the lessor will be done by CPSE to ascertain whether lessor The process of closure of a CPSE and disposal of its would take it back at market price or would like it immovable assets will be completely delinked. On to be auctioned. Ascertaining whether movable approval of Closure Note, the Administrative Ministry/ assets are to be utilised by its holding company Department/CPSE shall proceed simultaneously but (in case of subsidiary), if any or by the separately for alienation of immovable properties from administrative Ministry/ Department. Market its books. value of brand name, goodwill, trademarks, etc. 3.2.1 The immovable assets will be alienated from the of the CPSE under closure may also be worked CPSE in the manner as prescribed below: out. In case, market value cannot be determined, the same shall be transferred to the concerned a) Return of leasehold land to the States: All administrative Ministry/Department of the CPSE. kinds of leasehold land of the CPSE will be returned back to the State Government without i. Estimation of receivables: Ascertaining of trade insisting on any compensation (if due as per receivables, securities, loans and advances, etc. lease agreement). 3.1.2 Estimation of budgetary support required for b) Transfer of freehold land to Special Purpose closure: Based on the exercise done as per para 3.1.1, Vehicle (SPV) will be as per the procedure laid an estimate will be made of requirement of funds for down for the operation of the SPV (to be set up financing the closure of the CPSE. The CPSE’s own in DPE). resources, including amount to be realised from sale of movable assets, which may be available for settlement 3.2.2 Interim arrangement through Land of liabilities during the course of closure shall be worked Management Agency (LMA): Pending setting up of SPV, out too. Thereafter, the requirement of budgetary support the closure cases wherein a Land Management Agency from the Central Government shall be worked out. It is (LMA) such as NBCC has earlier been engaged for disposal however, clarified that the Central Government reserves of land as per the DPE closure guidelines dated 14.06.2018, the right to decide which of the requirements of funds it LMA will continue to manage the land and can dispose off will permit out of budgetary support. the same to any appropriate agency at best discovered price. The Forward Auction Platform of GeM or MSTC can also 3.1.3 Updating of land records of immovable be availed by LMA or Administrative Ministry directly for assets: Updating of land records such as title deed, lease disposal of immovable assets. hold land, freehold land, conditions of lease, remaining period of lease, current land use, FAR and other rights 3.2.3 The Secretary of the Administrative Ministry/ relating to use of land, whether land compensation (partly/ Department will monitor the progress of alienation of fully) paid by the CPSEs/ Central Government at the time immovable assets from the CPSE. 322Department of Public Enterprises 3.3 Implementation of VRS/VSS: be brought to notice of the Administrative Ministry/ Department by the CPSE. Thereafter, the (a) The Administrative Ministry/ Department through Administrative Ministry/ Department shall redress Board of CPSE will settle wages/salaries of the matter within 15 days and shall take a employees and statutory dues and complete the decision on settlement of the disposal of movable VRS/VSS process and payment of compensation assets. to non-VRS optees as per law. 3.6 Budgetary support from D/o Expenditure: (b) The CPSE staff shall be assigned specific tasks Based on the detailed liabilities to be settled as per the during implementation of VRS/VSS so that all Closure Note, DPE will make a request for budgetary the groundwork is completed within the above- support to DoE in respect of the liabilities to be settled. mentioned period and there is no requirement of However, the right to decide as to which of the retaining the staff during subsequent process of requirements of funds is to be permitted out of budgetary closure. support would vest with the Central Government. 3.4 Settlement of liabilities 4. Filing of application before Registrar of (a) The payment of statutory dues/ liabilities towards Companies (RoC): Once the requisite formalities related revenues, taxes, cesses and rates due to Central to settlement of all liabilities and assets are completed, Government or State Government or to the local the Board of Directors of the CPSE shall take necessary authorities to be completed first. steps for filing the application for removal of name from the Register of Companies as given below: (b) Administrative Ministry/Department will negotiate with the Secured Creditors to settle their dues at a) Apply under Section 248 of the Companies Act, the minimum value as One Time Settlement 2013 to the RoC for removal of the name of the (OTS). CPSE from the Register of Companies with the new revised form STK-3A issued by Ministry of (c) The order of priority of settlement of other Corporate Affairs (MCA) vide notification dated liabilities will be in the priority of distribution as 29th June, 2020 along with other forms (STK-2&4) mentioned in Section 53 of Insolvency & prescribed under the Companies (Removal of Bankruptcy Code 2016. Names of Companies from the Register of 3.5 Disposal of movable assets: Companies) Rules, 2016 by MCA. This amendment enables the authorized (a) The CPSE shall carry out the processes of representative (Under Secretary or its equivalent) disposal of movable assets including plant & of the concerned administrative Ministry/ machinery in a transparent manner through an Department to furnish indemnity bond on behalf Auctioning Agency (such as MSTC) appointed / of the administrative Ministry/Government of ‘Forward Auction’ Platform available on GeM by India (Owner of CPSE) for any future liability the CPSE under the supervision of administrative , instead of by individual Directors of the CPSE. Ministry/ Department. b) The Administrative Ministries/Departments and (b) Intangible assets like brand name, goodwill, trademarks, intellectual property, etc. of the their CPSEs filing closure application before the CPSE under closure shall be transferred to the Registrar of Companies will also take a note of concerned administrative Ministry/Department of the MCA Circular No. 1/2020 dated 1st July, 2020 the CPSE for disposing of separately. issued to all the Registrars of Companies to enable processing of applications of CPSEs (c) The leasehold movable assets may be returned having pending litigations relating to service to the lessor at latter’s option. matters, VRS/VSS of employees, so that the same is not the ground for rejection of such (d) In case, any of the movable assets are required closure applications. by its holding company or by the administrative Ministry/ Department, the same may be 5. Policy support: For any policy support or transferred to them. clarification on any issue for completing the closure (e) The CPSE in consultation with the administrative process, as required by the administrative Ministry/ Ministry/ Department, if necessarily required, may Department, the same will be provided by the IMC. While dispose of factory building structure along with taking the “in-principle” approval of CCEA, the approval disposal of movable assets. will also be sought for empowering the Hon’ble Finance Minister to approve the cases of any deviation with respect (f) If the CPSE is not able to dispose of movable to the closure process of Non-Strategic Sector CPSEs assets within the stipulated time-frame, it should from the decision of CCEA. The concerned administrative 323Annual Report 2021-2022 Ministry/Department shall refer the proposal for 7. Closure of subsidiaries/units of CPSEs: The clarification/policy support to DPE for placing before the process of closure of subsidiaries/JVs/units of CPSEs IMC. The recommendations of IMC shall be thereafter shall be carried out by the Board of Directors of the Holding CPSE(s) in accordance with above guidelines. referred by DPE to Finance Minister for seeking approval. DPE will function as the secretariat for processing the 8. Process for on-going Cases: Cases in which policy matters to be referred to Finance Minister. the Administrative Ministry/ Department has obtained the CCEA/ Cabinet approval for closure, the concerned 6. Special cases: Closure u/s 248 of CA 2013 is administrative Ministry/Department will review and seek recommended as primary mode under the revised the budgetary support from D/o Expenditure through guidelines. In complex cases especially involving Financial Adviser (FA) within 15 days of the issue of these exorbitantly high liabilities, IBC 2016 route may be guidelines to complete the closure process as per revised followed while providing adequate justification in the note mechanism. However, the right to decide as to which of for CCEA approval by DPE. The process of filing the requirements of funds is to be permitted out of application under IBC 2016 shall be done within 3 months budgetary support would vest with the Central Government. of receipt of Minutes of CCEA approval by concerned CPSE Board & its Administrative Ministry. In addition, in 9. Time-lines: The entire process of closure of respect of the listed CPSEs, the SEBI Delisting CPSE shall be completed within the Timeframe Regulations, 2009 and regulatory requirement(s) will be mentioned in Annex-I. complied with under the supervision of IMC before filing 10. The Finance Minister will be the competent for removal of company’s name from the Register of authority for granting approval to make any changes in Companies. these guidelines. 324Department of Public Enterprises Annexure-I to Annexure-9 Timelines of activities for closure of CPSEs Sl. Milestones/ Activities Time-Lines No. 1 In principle approval of closure / disinvestment of CPSEs in a Non-Strategic Sector Preparatory by the Cabinet/ CCEA. date (T ) 0 Setting up of IMC for the Sector comprising Secretary, DPE as Chairman, representatives of concerned Administrative Ministry(ies), DIPAM, NITI Aayog and co-opted members, if any 2 Preparation of Draft Closure Note for each CPSE by IMC after ascertaining statutory T + 3 months 0 dues, liabilities such as taxes, cess, MAT, dues to secured and unsecured creditors, funds required for VRS / VSS, wages due to employees till the time they are released through VRS / VSS, receivables, value of movable and immovable assets, etc 3 Vetting of Draft Closure Note by IMC and forwarding the same for approval of FM on T + 5 months 0 case-to-case basis. 4 Return of leasehold land to the State government T + 7 months 0 5 Transfer of freehold land to Special Purpose Vehicle (SPV) 6 Intimation to the Ministry of Labour and Employment in respect of closure 7 Request for budgetary support from Department of Expenditure. 8 Release of budgetary grants by Department of Expenditure 9 Transfer of assets to Holding company/ administrative Ministry/ Department 10 VRS / VSS to employees and settlement of wages/salaries of employees and statutory dues (in case employees not opting for VSR / VSS, retrenchment of employees) 11 Settlement of statutory dues/ liabilities towards revenues, taxes etc. payable to State Government / Central Government / Municipal Bodies 12 Payment of secured creditors as one-time settlement 13 Disposal of movable assets 14 Application to Registrar of Companies for removal of name of CPSE T 7 months 0 + and 45 days. 325Annual Report 2021-2022 Annexure-II to Annexure-9 Definitions i) Preparatory Date (T ) shall be the date on which agency under Ministry of Housing and Urban 0 ‘in principle’ approval of closure of CPSE has Affairs (MoHUA) which has been appointed and been taken by the CCEA. have the experience of management, ii) CPSE: Certain statutory corporations and all development and disposal/monetisation of Government Companies in which more than 50% immovable assets. equity or controlling stake is held by the Central vi) Forward Auction Platform: It is a facility Government are classified as CPSEs. The available on GeM for auction of movable and Subsidiaries of these Companies in which any CPSE has more than 50% equity are also immovable items in a transparent method. categorised as CPSEs, if registered in India. vii) Auctioning Agency (AA) A CPSE such as Metal iii) Inter-Ministerial Committee (IMC): Constituted Scrap Trading Corporation (MSTC), which can by DPE and comprising Secretary, DPE as be nominated by the administrative Ministry/ Chairman and representatives of concerned Department/ Board of the CPSE under closure Administrative Ministry (ies), DIPAM and NITI to dispose of movable and immovable assets Aayog as its members, to drive the closure through e-auction in a transparent manner. process. The IMC can also co-opt any other member(s). Secretarial assistance to IMC will be viii) Book Value: For the purpose of these guidelines, provided by DPE. it is the carrying value of the assets in the balance sheet of the CPSE. iv) Special Purpose Vehicle (SPV): 100% government owned company under the ix) Immovable Asset: Immovable Asset is a piece administrative control of DPE to facilitate of land/property tied to the land, such as estate, monetization of non-core assets of the Ministries/ building, premises, etc. Departments and Public Sector Enterprises. x) Movable Assets: Any asset other than v) Land Management Agency (LMA): It can be a CPSE such as NBCC (India) Ltd.(NBCC)/ Immovable asset like Plant & Machinery, Engineering Projects (India) Ltd.(EPIL) or a public Furniture, vehicles etc. 326For Public Contact Purposes: Ministry of Finance Department of Economic Affairs North Block, New Delhi – 110001 Phone : 011-23095120, 23092453 Website: http://www.finmin.nic.in/the _ministry/dept_eco_affairs/index.asp Department of Expenditure North Block, New Delhi – 110001 Phone : 011-23095661, 23095613 Website: http://www.finmin.nic.in/the _ministry/dept_expenditure/index.asp Department of Revenue North Block, New Delhi – 110001 Phone : 011-23095384, 23095385 Website: http://www.finmin.nic.in/the_ministry/dept_revenue/index.html Department of Investment and Public Asset Management Block 11 & 14, CGO Complex, Lodhi Road, New Delhi – 110003 Phone : 011-24360163 Website: http://www.dipam.gov.in/dipam/home Department of Financial Services Jeevan Deep Building, Parliament Street, New Delhi – 110001 Phone : 011-23748721, 23748734 Website: http://www.finmin.nic.in/the-_ministry/dept_fin_services/fin_services.asp Department of Public Enterprises Block No.14, C.G.O. Complex, Lodi Road, New Delhi – 110003 Phone : 011-24362673 Website: http://www.finmin.nic.in/the-_ministry/dept_dpe.gov.in i